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Yusuf Dodia, Chairperson of the Private Sector Development Association (PSDA), has raised concerns about the effectiveness of the Export Proceeds Tracking Framework, questioning why the Kwacha continues to depreciate despite the processing of US$7.7 billion through local commercial banks.
This comes after the Bank of Zambia (BoZ) reported that US$11.2 billion in export proceeds had been recorded via its Electronic Balance of Payment (e-BoP) monitoring system as of December 2024.
Of this, US$7.7 billion was processed through commercial banks, with the BoZ planning to expand the framework in 2025.
In a telephone interview with Zambia Monitor, Dodia expressed concern over the persistent depreciation of the Kwacha, despite the large inflow of export earnings.
He argued that such a substantial amount of export proceeds should have had a significant positive impact on the local currency.
“This announcement is quite strange. If US$7.7 billion worth of export earnings came into the economy, the Kwacha should have gained strength dramatically. But we continue to see the exchange rate deteriorating,” Dodia said.
Dodia questioned whether the funds were truly circulating within Zambia’s economy or if they were being kept in non-trading accounts.
He also argued that if the money remained inaccessible to local businesses, the framework’s objectives would be undermined.
“If this money is sitting in foreign accounts or banks in Zambia but not circulating, then the whole goal of the framework is defeated,” he noted.
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