The Zambia Association of Manufacturers (ZAM) has cautioned that no shortcuts will salvage the value of the Kwacha other than improving Zambia’s productivity.
ZAM Chief Executive Officer Maybin Nsupila says his association does not think the pressure the Kwacha is currently under will be squarely unbundled by short-term monetary policy measures in the long term.
He says this is notwithstanding the negative consequences that come with tightening monetary policy such as stifling investments owing to borrowing becoming expensive.
Mr. Nsupila has explained to Qfm News by telephone that this means that in the long term, what is needed is to refocus efforts on diversifying Zambia’s production and exports.
He advised that this diversification should focus more on the country’s manufacturing sector because this is the sector which has higher retains on production and stable prices of products.
Mr. Nsupila adds that there is also need to ensure that institutions responsible for driving and championing diversification in the country are held to account.
He states that this is besides government itself moving away from importation by encouraging the purchase of local products.