Open Letter to Cabinet
From: 24th October movement
Subject: KWACHA, THE SOLUTION..
With reference to the aforementioned, we would love to present an alternative line of thought in this document on the kwacha saga. We feel this is the solution in the long term and short term.
Firstly, we would like to point out that economics is relative. And therefore principles that work best in one economy may not be work in another. Hence by the book economics may not reap the results we desire. But we are not here to lecture you on economics, you do have seasoned experts in that. Ours is well researched out of the box solutions.
We all know that most African currencies have been under fire because of the slowing down of the Chinese economy. Now our currency is one of the worst hit because of overdependance on copper. Our main customer being china. Moreover mines are stil trading in dollar locally , creating demand for the dollar and further weakening the kwacha.
SHORT TERM
FRA is stockpiling millions of kilograms of maize as relief food. Well that maize often ends up being digested by pests. There is serious demand for maize in the congo. Thereby a demand for zambian currency. Government should look at putting in place regulations that allow FRA to sale off maize especially surplus abroad. The metrological department has predicted favourable rainfall patterns and this would be a well calculated risk. Offloading so many metric tones of maize will create demand for kwacha and arrest its downward slide.
The Long term solution however lies in economic diversification. Agriculture still remains our biggest opportunity due to the ready markets in our region . Congo DR, Burundi, Angola etc are just few examples of markets Zambia has at its disposal . The problem is we are priotising NON-INCOME GENERATING PROJECTS. sure it is great to have a nice road and great infrastructure but we feel it would be of greater value to the majority if we focused our little resources in creating employment that brings in forex, strengthens our currency , and elevate the living standards of the common man. The manufauring industry is also very key to strengthening of our currency and bettering the livelyhoods of the ordinary citizens. We are not talking about manufacturing rockets but if at this stage we cant manufaure even hospital needles then we really have a problem.
Our Currency determines oil prices which in turn determine the prices of all other commodities. Kwacha is a serious indicator that we need to re organize our economy to get what we truly need. Economic and social freedom.
We also take this time to register complaints to the minister of home affairs over the brutal clamp down of our planned hunger strike protestst at parliament building over the unjustified MP salary hikes. we as a movement will continue to speak and provide solutions to zambian problems because this is a Zambia for the people and by the people. We shall not succumb to intimidation or corruption because what we seek is above money and we are ready to sacrifice for the betterment of our children and grandchildrens welfare.
Yours faithfuly
Eng Niza Phiri B.Eng elec-mec
24th October movement chief servant
Munali People’s choice candidate
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