• The country’s trade position is bad because imports are more than exports.
• This is affecting the current account.
• There is need to focus more on sectors such as agriculture and tourism which can harness the exchange rate
An Economist says government must quickly concentrate on productive sectors of the economy that can help improve Zambia’s trade position and earn the country foreign exchange (forex).
Speaking in an interview with Money FM News, Chomba Chomba observed that the country’s trade position is bad because imports are more than exports, thereby affecting the current account which is one of the component accounts making the balance of payment.
Mr. Chomba noted that when the balance of payment is affected, it compromises the government’s capacity to meet debt obligations.
“The trade position is bad because imports are more than exports making the next exports to be in deficit, thereby affecting the current account which is one of the component accounts making the balance of payment.”
“When the balance of payment is affected, it compromises the government’s capacity to meet debt obligations. It indicates that we have very few US dollars in circulation relative Zambian kwacha because of reduced production especially in the mining sector,” Mr. Chomba stated.
He stressed the need to focus more on sectors such as agriculture and tourism which can harness the exchange rate if properly managed and adequately advertised to the outside world.
“To harness the exchange rate, we ought to quickly concentrate on productive sectors of the economy that can help us earn forex, agriculture is one of such sectors. Not forgetting tourism sector, if properly managed and adequately advertised to the outside world, things can greatly change and it will grow nation income,” he noted.
