• It is very important to grow the local manufacturing base.
• The country needs to reduce dependence on imported items.
• There is need for a mindset change amongst Zambians for the country to deal with this long term weakness of the Kwacha.

The persistent depreciation of the Zambian Kwacha has continued to pose economic challenges in the country.
The local unit started going down with a significant margin around 14th January 2022 as it was trading between K16.97 and K17.29 ngwee against the US dollar
According to financial market players, factors driving the Kwacha’s instability are mainly associated with external forces and a production structure of the economy which is dependent on imported products.
Financial Experts say the local currency is likely to continue being under more pressure in the coming days from strong importer demand.
In order to control the depreciation rate, an Economist is calling for increased consumption of locally produced goods and services.
Speaking in an interview with Money FM News, Dr. Patrick Chileshe stressed the need to grow the local manufacturing base and reduce the country’s reliance on imported items.
Dr. Chileshe observed that most Zambians are fond of buying imported products as opposed to local ones, thereby increasing the demand for foreign exchange unnecessarily.
“It is very important to grow our local manufacturing base and reduce our dependence on imported items. When you go to buy goods and services, it is incumbent upon you as a Zambian to just look at what items you are buying in your basket. I have seen most people would go for South African made brands as opposed to local ones.”
“What essentially you are doing is that you are increasing the demand for foreign exchange unnecessarily, because we have certain products that are made in Zambia why would you go and buy something that is imported,” Dr. Chileshe said.
He called for a mindset change among Zambians in order for the country to deal with the long term weakness of the local unity.
According to Zanaco Banks’ daily indicative rates, the Kwacha is today Monday 14th February 2022 buying at 18.59 Ngwee and selling at 18.96 Ngwee against the US dollar.