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Kwacha Gains On President Lungu’s Back
Bloomberg-Zambian President Edgar Lungu unveiled a raft of spending cuts ranging from reduced fuel subsidies to delayed road building as he attempts to tackle economic challenges in the southern African country.
The government will have spent $300 million on subsidizing fuel for consumers by the end of the year, which is “clearly not sustainable,” Lungu, 59, told reporters Thursday in Lusaka, the capital.
A further $40 million will have been paid to import power and ease a severe shortage between September and the end of the year, underscoring the need for the energy regulator to increase prices, he said.
Lungu ordered officials not to start any new road projects, to defer construction contracts where possible and to focus instead on completing those already under way. He’s also delaying the establishment of a national airline, which was set to take place next year.
Plunging copper prices and a severe power shortage are straining Zambia’s economy, which will grow by the slowest pace since 1998, according to the World Bank. A ballooning budget deficit is also contributing to the crunch, the International Monetary Fund said last week. Zambia has been compelled to cut spending as revenues shrink and costs escalate due to a more than 40 percent depreciation in its currency this year, Lungu said.
“In taking these measures, I note that it will not be easy for many of our citizens,” Lungu said. “However, these are necessary actions required to bring us back to a path of economic stability,” he said on the lawns of State House.
Zambia has spent billions of dollars developing roads since Michael Sata’s Patriotic Front won power in 2011, consuming more than 10 percent of the budgets for 2015 and 2016. Lungu took office in January after Sata died three months earlier.
The government expects the budget deficit to swell to 6.9 percent of GDP this year from a targeted 4.6 percent, while Barclays forecasts it will reach 8.4 percent. The 2016 target is 3.8 percent. Inflation accelerated to 19.5 percent in November, the highest level in more than a decade, the Central Statistical Office said earlier Thursday.
The kwacha advanced 6.2 percent against the dollar, its biggest gain in two months, to 10.8761 by 5:22 p.m. in Lusaka. Bloomberg.
Posted by Staffreporter
on November 27, 2015. Filed under LATEST NEWS.
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wat
November 27, 2015 at 4:04 pm
cosmetic appreciation will not help
Hamukuta
November 27, 2015 at 4:13 pm
It will eventually appreciate to sustainable levels you agents of doom.Your evil prayers wont be answered and you will be ashamed.
virgin angel
November 27, 2015 at 4:23 pm
The press conference pronounced positives which were applauded by diplomats accredited to Zambia and mature politicians like Mtesa and Nevers Mumba. Alas, novice politicians and like Akainde only conjured up negatives, and so his wagons of dweeb supporters!
Judge Joe Bidden
November 27, 2015 at 5:01 pm
“accredited to Zambia”?
Ganja Man
November 27, 2015 at 8:02 pm
Ostrich cadre…
Isaac
November 27, 2015 at 4:30 pm
They will have nothing to campaign for, for the kwacha is rebounding so strongly to the amazement of many. That’s how God works when His pple face certain afflictions He answers affirmatively.
Ganja Man
November 27, 2015 at 8:03 pm
Hehehe ostrich cadre….
Magaba
November 27, 2015 at 4:31 pm
You these are prophets of doom Who want to ride on People’s Suffering to gain Political mileage
zhyono
November 27, 2015 at 4:34 pm
US dollar buying 9.97
US dollar selling 9.99
ECL 2016 tiye tiye
Judge Joe Bidden
November 27, 2015 at 5:02 pm
You seem to be very excited to be on Tumfweko.
Boaz
November 27, 2015 at 5:31 pm
You get excited with negatives. Go commit suicide if you care!!!!!
Ganja Man
November 27, 2015 at 8:04 pm
Hehehe
Bravo
November 28, 2015 at 2:56 pm
I hope prices of things will go down soon. I am going to sent 100 dollars to my sister for a bottle of wine.
Manix
November 27, 2015 at 4:34 pm
They claim to be economists but every thing president Lungu says that make economic sense they oppose, what kind of desperation is this? Be object and pipo will see sense in you and may be, just may be, u can get a few votes. Agents of doom.
zhyono
November 27, 2015 at 4:39 pm
PRAYER AND FASTING AT WORK WHAT MORE JEHOVAH IS IN CONTROL
virgin angel
November 27, 2015 at 4:40 pm
From wishing ill fate on people, the up N down are now wishing for an ill economy- only then, so they think, can they ascend to power. But we see whats happening and we will achieve greatness, Abash prophets of doom!
sikazwethegreat
November 27, 2015 at 4:45 pm
Lets us put in our very best to see that this continues. i visited access bank today and found the trading below K11. we can do it only if we come together speak in the name of Zambia.
HH Techilema
November 27, 2015 at 4:47 pm
So bafikala baletifye ati yabaa. They pride so much to see suffering in others. Kwacha gained they said it’s a cosmic gain. It gained again they were ndwiii. Again more gain they are searching for stupid evil negative comments against the gain. It’s good to have kindies as opposition.
Huck Finn
November 27, 2015 at 4:51 pm
Its disappointing that government technocrats are not really doing their jobs in disseminating information and merely sneering at some of these doom prophets .Agriculture at the moment has received millions of dollars with various developmental concepts being implemented. Farmers are being empowered with small livestock grants,etc across the country and agric extension workers are on the ground giving valuable advice to farmers- lets hope for the best for our economy than shooting our selves in the foot and crying foul for the consequences our very selves create!
Boaz
November 27, 2015 at 5:01 pm
Fools like Judge Joe Biden and NEZ would have been the first to comment on this thread if it was about the Kwacha losing value.
Judge Joe Bidden
November 27, 2015 at 5:11 pm
Come and tell me what value of Kwacha will be on Monday. You seem not to understand simple economics together with your president ati he will create 10,000 jobs that simple kwati nimu shop yakwe.
New Educated Zambia©❤√
November 27, 2015 at 5:35 pm
I have just arrived in Lusaka bane.
Judge Joe Bidden
November 27, 2015 at 5:39 pm
Endita mune @NEZ ka tusheni.
Boaz
November 27, 2015 at 5:42 pm
Senseless bootlicker!!!
New Educated Zambia©❤√
November 27, 2015 at 7:29 pm
I thank you JJB. I had a very long trip and now am very excited to meet up with family and colleagues. Have a blessed weekend
JASON NYIRENDA
November 27, 2015 at 5:13 pm
I like the objectivity of the comments on this topic.
Boaz
November 27, 2015 at 5:29 pm
Hakainde is only your party president. Edgar is Republican President hence your President as well you fool. Hoping for the worst so as to sell your Hakainde you bigot is not being wise. You seem to want to be seen as an expert in all things, you are not. Learn to leave with that.
Boaz
November 27, 2015 at 5:30 pm
Sorry Jason. This meant of that fool Joe Biden
Judge Joe Bidden
November 27, 2015 at 5:37 pm
How ironic things can be, just when you praise some comments only to get insulted. Kikiki we are used, PF has lots of this kind.
Boaz
November 27, 2015 at 5:41 pm
Can’t you see the apology? Are you that dull?
Boaz
November 27, 2015 at 5:46 pm
Chamikalipa bamambala
Kaps
November 27, 2015 at 5:44 pm
for how long ar we going to pump dolars on th market to stabilise th kwacha? is our economy growing by so doing?
Boaz
November 27, 2015 at 5:47 pm
But chamibaba ba Kwindi!!!!
jawapi
November 27, 2015 at 6:21 pm
u will keep on insulting each other but the truth remains,hh can not win elections in Zambia unless somewhere else.Mind you follow Zambian politics very well and u shall find the answer my brother.Ask miles sampa,Gbm,wynter kabimba,guyscott and others you will see that Lungu is very smart
Nikambeko
November 27, 2015 at 6:33 pm
Ba opposition, it is wrong to thrive on someone’s misfortunes. What will happen when such misfortunes are no more? If the dollar rate gets even lower than what it has been today, what else will you sing about? What will you base your winning claims on in 2016 elections? I challenge you to start thinking properly. Our God is able to change situations in a short time and sometimes over a long period. And we have faith Zambia will completely rise out of this current situation and all her enemies will be completely ‘mauless’.
spannerman
November 27, 2015 at 6:54 pm
The over 4000 miners have been paid meaning the mine owners have exchanged dollars to pay the retrenced miners. This is temporaly has the mine will not continue offloading the much needed dollars forever. believe in two months time dollar will be k15.
Mwaala Hambweete
November 27, 2015 at 7:20 pm
You seem to agree of external interference talk. So then it is true, it’s not about Lungu and PF, but copper trading poorly, affecting our mines. Is that not NED is opposing?
Surely, ECL is a blessed man and he will surely win in 2016.
observer
November 27, 2015 at 7:10 pm
Its trading between 8 and 9 around this time.
M by 2
November 27, 2015 at 8:07 pm
Peace for Zambia thru ECL the chosen leader and hell for HH and bad dreams for all his followers,bamataba.Gud nite bakwindi(HH Disciples).
KOPALA FACTS
November 27, 2015 at 8:28 pm
@My2 & Boas !are you fools ?you have eyes but you can’t see !Ifabupuba!!!!!! I was changing dollars in Zanaco its within the range of between 10_11 kwacha.
final vedict
November 27, 2015 at 8:48 pm
Kwacha mu 2020 izankala zingati?hh asked last week,the answer was 100 plus koma lelo nizingati?8 kwacha,its a fact
what are upnd now going to base their campaigns on?shame..selatubombeko
Fantasy
November 27, 2015 at 8:57 pm
the challenges ar ther and infact the press conference was clear with the president not blaming any one, we land in danger by a swift appreciation as copper prices didnt pick yesternite, but those sayn dollars wer offloaded in order to clear salaries and retreaches in the mines cud ve their speculation rite and PF as our managers shud b in front to understand this and to prepare that unpatriotic businesses again take advantage and buy off such dollars with view of reselling at higher rate, BOZ we cant ve a currency that swings like a pendulum, is this the end times of the world,?
christabel
November 27, 2015 at 9:00 pm
God is able, may dollar continue loosing its power we have suffered. Good night tumfweko friends.
Coolex
November 27, 2015 at 9:19 pm
Selatubombeko indeed,2016 ni pf with ecl,
kolopa2016
November 27, 2015 at 9:49 pm
Is it in order for a person aspiring to become president celebrating when his country is undergoing difficulties? Ans is yes if your party is called by any of these names:
1, Bantustan (Post newspaper)
2., Up N down
3, Unprepared People Never Deliver
4″ United Province 4 National.
Destruction (southern)
5 Ubufi Pantu Ndalanda Daily
etc
Isaac
November 28, 2015 at 9:01 am
Kkkkk A lot of sense anyway.
lungu jr
November 27, 2015 at 10:03 pm
I am retretched miner. So these mine houses have offloaded a lot of dollars to pay off we outgoing rockbreakers that is trick. Their action will it going to affect my money in trust that was kept for me in dollars. $3ooo x 12 = 36000 or $3000 x 8 =24000 if given at lower rate mines will actually going to save a lot of money.After paying off miners if kwacha stabilises at lower rates then and only then I will say Lungu’s speech yielded some positive results.
Disillusioned Miner
November 28, 2015 at 2:35 am
We have become a nation embracing mediocrity indeed.Is there anything to celebrate about here really??? It is clear that the kwacha gains are artificial and will not be sustained by next week as there is no real economic activity to guarantee dollar inflows other than what the mining houses have offloaded to pay redundancy packages.The gains are so cosmetic that the empty vuvuzelas singing praises on this forum will shut up by next week when business as usual is restored.Infact when the price of fuel goes up shortly and further exacerbates inflation which stands at 19.5%,that is when the pinch will be felt.Enjoy the fools paradise whilst it lasts.
HH Techilema
November 28, 2015 at 2:47 pm
Are you a Zambian?
it is well
November 28, 2015 at 7:02 am
God is in control, we shall make it! God bless zambia, n peace!!.
it is well
November 28, 2015 at 7:21 am
zambians let us nt demonise each other, let us share ideas, seek solutions to our problems. 1 zambia! 1 nation, 1 God, the creator of the heavens n the earth n everything in it. God of Abraham, Isaac n Israel is the our God. Be blessed n peace!!
Fantasy
November 28, 2015 at 8:48 am
@kolopa 2016, this is not time for politics, we ve bloggers praising God and that is wonderful, paradoxically the title gives credit to ECL instead, say the danger of politics, God if u like used him to deliver a sad message, on screen he appeared too sad that soon fuel and electricity wil go up, again we ar praisin his back . what kind of a country is this?
Fantasy
November 28, 2015 at 8:53 am
Meant to say see the danger of politics
pinyolo
November 28, 2015 at 10:16 am
Our learned economists,kindly help me on this.Iam lost.What magic has happened for the kwacha to gain.Have the cooperprices increase on the world market?
JMS
November 28, 2015 at 4:25 pm
We hope for the better, because of rubishing every idea and comments, people better ideas steps backward and many are suffering
Bravo
November 28, 2015 at 9:31 pm
Too much goods chasing few money that’s what’s up.
Sir~vimbi.
November 28, 2015 at 10:51 pm
Ati dolla dolla ifyabupuba no value landa tumfwe?