• UK ban on flights to deny Zambia foreign earnings.
• Depreciation of the kwacha to continue as a result of ban.
• Zambia set to miss out on the benefits of the rise of copper prices on the international market.
An Economist says the move by the United Kingdom (UK) to ban flights to Zambia due to the new strain of COVID-19 will lead to further depreciation of the Kwacha.
In an interview with Money FM News, Mumba Zulu said there will be a reduction in Zambia’s foreign earnings as the ban will erode investor confidence.
‘‘The implication of this ban is that it we will have a reduction in terms of investment from the UK, and this will affect our total revenue,’’ he said.
Mr. Zulu also noted that the country risks not benefitting from the rise in Copper prices on the international market as the UK is one of Zambia’s largest export markets for the commodity.
‘‘The country was poised to take advantage of the rise in copper prices and this would have added value to the kwacha,’’ he said
‘‘However, with the ban that has now been imposed, Zambia stands to lose out on the much needed revenue from copper.’’
The United Kingdom (UK) government has banned flights from 11 Southern African countries, including Zambia after a new mutant strain of Covid-19 was found in South Africa.