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Economist, Rita Mkandawire, has expressed concerns that Zambia’s economic instability, particularly in the exchange rate and persistent load shedding, is deterring investment in key sectors such as manufacturing.
Mkandawire, speaking to journalists after the launch of sexual harassment policy for Daily Nations Newspapers in Lusaka on Friday, highlighted that the rising costs associated with these challenges were making it increasingly expensive for investors to commit resources to the Zambian economy.
She noted that many investors were currently shouldering significant financial burdens due to these economic conditions, which were compounded by frequent power outages.
Mkandawire warned that if these issues were not addressed, there could be a substantial decline in investor interest in Zambia’s key economic sectors, which are crucial for the country’s growth and development.
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She called on the government to implement practical and effective measures to stabilize the exchange rate, which she described as fluid and unpredictable.
Mkandawire stated that restoring stability and predictability was essential to maintaining investor confidence and ensuring that Zambia remained an attractive destination for foreign direct investment.
“Investors are concerned about the high costs and unpredictability they face due to the current economic conditions. If the government does not take steps to stabilize the exchange rate and address the challenges associated with load shedding, we risk losing the confidence of those willing to invest in our economy,” Mkandawire stated.
She further stressed the importance of creating a stable economic environment to foster sustained investment and growth, warning that continued inaction could eroded investor confidence and negatively impact Zambia’s economic trajectory.
Mkandawire’s comments come amid ongoing concerns about Zambia’s economic performance, with calls from various stakeholders for the government to prioritize stability in order to attract and retain investment in critical sectors.
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