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An Economist, Edna Litana, has said Zambia import too much of food products and a range and edible products, thereby contributing to a weak Kwacha.
Litana also named the delay in debt restructuring and lack of a strong export base as factors causing the Kwacha’s free-fall against major convertible currencies.
Litana said in an interview on Tuesday that delay in concluding the much needed debt restructuring would continue causing Kwacha depreciation.
She stated that it was important for citizens to change the consumption patterns to buying more of local suppliers as opposed to imported products.
Litana said the country should move away from high dependence on imports and start creating an export oriented economy backed by value addition.
“We import too much, food products and a range of edible products being stocked in supermarkets are all imported. That is the reason we are having a weak Kwacha, we need to change our habits,” Litana said.
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She said there was a need to raise production levels and add value to agriculture products that can attract the foreign market thereby earning more foreign exchange that can stabilise the local currency.
Litana who teaches economics at the Copperbelt University said value addition should be more stressed if the country was to get more value from its economic resources such as agriculture and mineral products.
Litana said there was a need to change the structure of the economy from a mono-economy to a well-diversified economy where critical sectors of the economy such as tourism, agriculture and manufacturing start contributing effectively to the country’s economy.
“We need to diversify the economy by expanding the tourism, agriculture, energy and manufacturing sectors among others,” she said.
Litana also attributed the continued Kwacha depreciation to the delay in finalising debt restructuring talks with major creditors.
She however, said she was optimistic about the country’s economic rebound.
“Despite some challenges, there are positive indicators that things will improve, we have seen local and international airlines increasing their flights to Zambia and locally among others,” she said.
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