Monday, 2 January 2012

lack of clear economic policy has made the kwacha to fall in the last 3months drastically

Former commerce, trade and industry minister Felix Mutati has observed that the fall in the kwacha for the last three months since the take over of the PF government is due to the uncertainty in economic policy direction as the new government is just settling.
Mr. Mutati has explained that the lack of a clear economic policy direction by the PF has created uncertainty in the investors’ minds stating that this happens every time a nation has elections and change of government.
Mr. Mutati who is also lunte mmd Member of Parliament has stressed that the situation will probably change after 3months upwards after the new government is settled and begins to implement its programmes to the full.
The former commerce, trade and industry ministry has further pointed out that another problem which has possibly made the kwacha to fall is the lack of government’s clear explanation on what the minimum wage is and this situation has left employers to gamble on whether they will reduce their workforce or increase.
“ unless the patriotic front government which promised Zambians in their campaigns clears the air on the minimum wage will the situation change but as it is, there is no explanation which been given” he said
And centre for trade, policy and development executive director savior mwambwa has attributed the fall in the kwacha to the uncertainty in the European markets which are facing economic hardship.
Mr. Mwambwa has advised that the country needs to increase its production capacity which has been low if the situation is to be controlled and the nation can avoid the situation from escalating.
Meanwhile Mr. Mwambwa has further advised that apart from increasing the production capacity which is so weak at the moment, the country will also need to utilize the regional blocks in terms of trade

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