The Development Finance Associates (DFA) has noted that the Monetary Policy is one of the main reasons why the country’s economy is not performing well.

The Development Finance Associates (DFA) has noted that the Monetary Policy is one of the main reasons why the country’s economy is not performing well.
DFA senior partner Trevor Hambayi explains that the monetary policy was designed to reduce the amount of cash on the open market which in turn reduces the amount of money flowing to the private sector.
Mr. Hambayi says this then means that the country’s economy is not growing as the private sector is the main driver for economic growth.
He adds that the amount of money that is put in the private sector is directly reflective of how much the economy is going to grow.
“What has been driving our economy is Foreign Direct Investments (FDI) and FDIs bring in around $1bn every year into the economy and mostly its through mining. But if the price of Copper starts to drain, it means that the investment the stops to come in and that stops the growth of our economy” says Mr. Hambayi.
In an interview with Money FM news, the DFA senior partner says “in terms of internal growth, we need to be able to have the private sector have resources to put in the sectors outside mining and the monetary policy needs to ease the crunch on the finances to allow the private sector to access credit”.