A Trade Expert has advised government to consider allowing a certain amount of maize and maize byproducts to be exported to help the Kwacha become strong against major convertible currencies.
Speaking in an interview with Money FM News, Trevor Simumba says the imposed restriction of maize and maize by products exportation means that the potential for the country to benefit from the earns is minimal and it also discourages most farmers.
“Already the government has imposed restrictions on the export of maize, which means that the potential for the country to benefit from the maize earnings is minimal and it will also discourage most farmers hence, the need for government to be a bit clever about the whole issue, as it will help the Kwacha to gain strength against major convertible currencies,” he said.
Mr Simumba noted that despite Zambia recording a trade surplus in the recent past, statistics still show that the exports have been dominated by copper which indicates that the economy is not yet diversified.
He explained that non-traditional exports have also been driven by primarily agriculture products such as maize and cotton lint, which shows that the country is not adding value to its exports.
“The Trade surplus is mainly driven by increase in earnings rather than the increase in volumes, so to just look at the numbers in terms of how much foreign exchange the country has earned does not really give the story because statistics still show that the exports were dominated by copper which indicates that the economy is not yet diversified,’’ he said.
“If you look at non-traditional exports they were also driven by primarily agriculture products such as maize and cotton lint, which shows that the country is not adding value to its exports.’’
Currently Zambia has in excess of 700, 000 metric tonnes of maize grain stocks and government is convinced that the country is food secure and mealie meal prices will remain fairly stable.
However, government has banned the exportation of maize in a bid to control mealie meal prices in the country.