• Majority of the traders are still being charged in foreign currencies and a few are charged in Kwacha.
• With the weak Kwacha, every time rentals are due, people are paying more in Kwacha terms.
• If people continue paying in dollars, most businesses will go bankrupt and they will close.

Global Traders Association of Zambia (GTAZ) says the continued depreciation of the Kwacha against major convertible currencies is affecting traders who still pay their rentals in US Dollars.
Speaking in an interview with Money FM News, Association President Joseph Chanda said some commercial property owners in Lusaka’s Central Business District have continued demanding to be paid rentals in US Dollars as opposed to Kwacha, a situation that is negatively affecting local businesses.
Mr. Chanda said due to the weak currency, traders are paying more in Kwacha terms because they need a lot of Kwacha in order for them to settle the dues in US dollars.
“Majority of the traders are still being charged in foreign currencies and a few are charged in Kwacha. That is the challenge our members are facing.”
“So what is happening now with the weak Kwacha, every time rentals are due, people are paying more in Kwacha terms because of course its quoted in dollars so you need a lot of Kwacha to pay in those few amounts of dollars,” Mr. Chanda said.
He disclosed that the Association recently held a meeting with officials from the Ministry of Commerce, Trade and Industry, who promised to engage the Bank of Zambia over the matter, because it is the only institution that has the mandate to come up with the legislation that can stop businesses from quoting in foreign currencies.
Mr. Chanda added that the Ministry said despite Kwacha being a legal tender in Zambia, there is no law that forbids anyone from quoting in any foreign currency.
“Recently we had a meeting with officials from the Ministry of Commerce, Trade and Industry, and that was one of the most critical issues that we raised. They are saying they have engaged Bank of Zambia to come up with the law because it is the only institution that has the mandate to come up with the legislation that can bar people or businesses from quoting in foreign currency,” he added.
And Mr. Chanda said the Association would be very grateful if the law could be enacted in the quickest possible time, because there are no signs that the Kwacha will appreciate anytime soon.
He noted that if traders continue paying in US dollars, the move will result in the closure of most businesses because most of them will go bankrupt, thereby affecting government’s revenue collection and sending many out of employment.
“We are very much happy and we told the Ministry that we would be very grateful if the law could be enacted as soon as possible, because there are no signs that the kwacha will appreciate anytime soon. So if people continue paying in dollars it means most of the businesses will go bankrupt and they will close and it will also affect government in terms of tax collection, and many people will lose employment.”
“Most of employees are in the informal sector there are very few employees that are in formal sector, so once our businesses start collapsing it means the unemployment rate will go up,” he stated.
Currently, the US Dollar is buying at Twenty One Kwacha Seventy Seven Ngwee and selling at Twenty Two Kwacha Eighteen Ngwee.