Economy

Kwacha Falls after World Bank Cuts Zambia’s GDP Growth Forecast

The Kwacha Falls After World Bank Cuts Zambia’s GDP Growth Forecast

The kwacha on Friday traded on a very weak footing following the World Bank’s cutting of Zambia’s Gross Domestic Product (GDP) growth forecast from 3.5 per cent to 3.3 per cent.

The local unit depreciated amongst a basket of currencies, FNB Zambia has stated in its market report.

Apart from the World Bank’s downward revision of the growth projections, the kwacha, according to FNB, lost its strength due to strong dollar demand, which is likely to see the local unit on  depreciating trend.

“The market on Thursday closed at K12.400 on the right-hand side – at levels last seen in October 2018. ZAR/ZMW also crossed 0.880 at the end of the trading day. If the local unit continues to trade on the back foot against the dollar, it could have an impact on the MPR and inflation rate. We are of the view that without any significant dollar flows into the market, a bearish kwacha will continue…,” it stated on Friday morning.

For the Treasury bill auction,  it is said to have been poorly subscribed, despite over K1.5 billion in circulation.
With K950 million on offer, successful bids amounted to just K290 million. There was a slight uptick on yields across all the tenors, the most notable being on the 182 bill, which increased by one per cent, FNB has said.

 

72 Comments

  1. Kay2Pack M

    Iyeeeeeee ba zed whyyyy!!!!!!!!!!!!??????!
    We are watching oooooh!.

  2. One zed manex

    What’s happening please??? Good help us.im praying for my country every day and night,let’s all Zambians pray God will bless our mother zambia.in times of trouble like this let’s help & unity.This is affecting us both those who supports the government of the day & those who don’t, let’s dialogue & find the way forward for the betterment of the country.

    • PM

      @ Manex..God blessed you by giving you a brain higher than that of animals but you have chosen not to use it. Had you used it, you wouldnt have ushered in a useless pf thieves as your leaders. Please dont plead to God for he has done enough for you. He gave abundant natural resources which you have now decided to give to non believers like Chinese. You think God appreciates stupidity? Stop bothering God.

      • newbie

        Dear PM,
        Thank you for this hilarious and poignant comment. You are so right!

      • Al Chipipa

        Prayers don’t fix your finances. You have to make smart choices in investment and budgeting. It makes sad when I hear people say; let’s pray for our economy. African countries economies are so bad because we think it will be fixed by prayers. Let us pray to God for things that we have no control over.

        • James daka

          U are right

        • Mk

          Very correct, always bothering God,it time we started thinking of changing the government, period!!!!!!

        • Kmv

          True

        • Jama Chellios

          Couldn’t agree more with you Al Chipipa , that syndrome has become more like a plague to African mindsets. It’s a dangerous trait honestly.

      • Manganiello

        Let’s not bring the issue of prayer here ,the right thing to do is to work ,take advantage of the available resources. TD Jakes once said God never made a table but instead he provided trees and men with brains and focus made tables and other furnitures.Now with this country we have all the resources but lack of brains and focus with people at the top no wonder fuxking Chinese are seen as gods in our free land.Very sad

        • Ken

          Again it’s government politicians who are reaping the whirlwind of finance it is a sad reflect on a beautiful country do not blame god for the mess the politicians have got the country into the mess it is now so sad really so sad that a beautiful country has Zambia should be ruined by political thieves

    • Charles

      You can pray to get support but at the end of the day you and all others will have to do it. Work hard and create jobs.

      • Daliso Ngwira

        my brother thats a nice comment am motivated

    • Biggeman

      God helps those who help themselves as he is about to do in Algeria and Sudan.

    • Al Chipipa

      Prayers don’t fix your finances. You have to make smart choices in investment and budgeting. It makes sad when I hear people say; let’s pray for our economy. African countries economies are so bad because we think it will be fixed by prayers. Let us pray to God for things that we have no control over.

  3. yokosa

    kkkkkkkk lelo lelo lelo lelo yaba kkk good.

  4. Christopher Mutambo

    High cost of living…

    • Chiwile Musondwanchinko

      For sure pa zed we’re lazy to read no wonder the politician is taking advantage of the populous let’s wake up and do something about our nation we have the resources and my surprise is that I see many people studying where do they go or do when they graduate? Am made to wonder what is being studied its a nightmare pa zed let’s be serious. Ma Chinese make a living out of displacing us here and we become destitute in our own country people let’s work napapata too much talk we would have been the hub of African economies surely all the water we have is vast than any other country in Africa mamamamamama!!! What’s up guys surely Chris Boi ati shani this situation

  5. Dorcus

    Eeeh ….things are bad

  6. Abdul

    Great

  7. Abdul

    Great and good

  8. Truestory

    Now this explanation bwana, I don’t know how many people out of the total population of our country will understand this explanation. Maybe only 10% can understand. Y do I say this? Majority of our people don’t read, they don’t listen to news, majority of the youths bakolwa fye ubwalwa and nobu ule chapwa, when you watch ZNBC nayo buchushi bweka. Ni President Lungu ifi, Pf SG ifi, MP wakuti ifi, nsonso opposition members have diffected to PF so on and so forth. Ma politics yeka yeka. Ama news umutengo ni selako weka. The seven local languages Chanel’s news on ZNB/ PF TV yakusalula fye tapabe fye balanda and so people are find better to watch Zee world than ZNBC/ PF TV.

    • 😂😂😂😂🙈

      😂😂😂

    • Chiwile Musondwanchinko

      For sure pa zed we’re lazy to read no wonder the politician is taking advantage of the populous let’s wake up and do something about our nation we have the resources and my surprise is that I see many people studying where do they go or do when they graduate? Am made to wonder what is being studied its a nightmare pa zed let’s be serious. Ma Chinese make a living out of displacing us here and we become destitute in our own country people let’s work napapata too much talk we would have been the hub of African economies surely all the water we have is vast than any other country in Africa mamamamamama!!! What’s up guys surely

    • blaq

      tru

  9. Haward

    Woooo elyoikoselenomba pa zed

  10. Mulota

    Yaba

    • Biloko

      What do you expect in un economy where you have no problem spending K40million on a bye election but you are failing to pay salaries to the civil service,K20 meal allowance to students the list of failure is endless. Our politicians spend like money grows on trees. The money distribution in luanshya Roam was like you were in a casino. We need to have a national indaba otherwise let’s forget development and compete to dethrone Zimbabwe as a powerful revolutionary state.

  11. greenne

    if the ruler is chosen by god why lacking knowledge??

  12. Moses Shimonde

    You guys sometimes don’t blame the situation because you put yourself in mess
    U guys failed to vote for HH for your own better living…but you keep voting for trouble

  13. The Hour

    All this is saying you shouldn’t have removed MMD to put sata and his pf these people have no idea how to run a country. It was a wrong time to remove MMD. But mmembe cheated and brainwashed your smooth brains wih his fake news against the “the hour”. The economy was growing and robust during the reign of the MMD. In the meantime enjoy the fruits of your vote till then.

    • Corruption now will be worse

      I conquer with you 100% .MMD were running the country soundly and here comes a group of socialists who thought running a country is shouting party slogans! If you remember very well prices of essential commodities started going up just two months after the pf came into power . E.G. Bread from k3 to k5 ….. The least goes on.

    • John

      basakala balichilimo ukushitisha amakampani ,we were the only resources left ,who knows maybe they could have started trading us as well to hell with mmd .a bunch of business men .

  14. Dickson Zulu

    We choose weak leaders and put them in a strong office.

  15. Janchris

    Knowledge can’t .change our zambia only wisdom cn…..so let’s help our leaders by providing solutions that will enable us to stabilize the economy….if 50 % of Zambians ..oppositions o nt cn join hands …our house Zambia will b one of the best in southern region….NW us black we are gud at pointing fingers then helping….NW wether u don’t help with yo idea just knw dat. ..u are also in a some vehicle if it clash we o die …..we can regain our economy by (1) reducing inports..(2) buying locally made products (3)bcomin an entrepreneur generation (4)by knowing hw to save money (5)by being a innovative generation (6)by. Introducing high taxes for inports (7)by cmin together and fight this laziness of pipo taken beer as early as 06hr instead of wking…(8)also by empowering our wives those who are married…..DNT jst mk her cooking for you. (9)by hold hands n aving one abjective don’t fight yo frnds bt help them… will c by 2025 …. will c 80%change

  16. Janchris

    Zambia n chine they signed a mcdmdp agreement for 90yrs by MMD….. et’s

  17. Michael simpamba

    God helps us to resolve this problem that we have encounter

  18. Wsdm mwale

    No need to pray, its just a matter of working hard from the family level up to national level.

  19. jorge

    Zambia Zambia sure

  20. Mukalyeba mm

    When u say work hard what do you mean ? Let me tell u this, eg if i were a government all super market must sell peasant veggies, ShopRite and others must buy direct from peasant co-operatives around that town. They will have capacity at the end of the day. If was a president i could have invested the ndola airport money into oil in kapompo, mweru wantipa or into high value stones, like gold, berry (bela) diamonds, natural gas which have and then make the airport from profits, grow high value crops like silk worms with very big demand out there. At one Russian was import veggies from as far as Brasil even from war torn Syria imagine. This is just an example if was a president. Zambia a rich country but unfortunate.

  21. KING

    Kushe nindala zanyoko zija niza chikala HH tawakanyopolepo olo coin take note bafikala Zambia will never produce a tonga bull as prizido ifyashishita wooooo

  22. Humphrey

    These re the results of having ignorant leaders.

  23. Fosale

    Please God help us our country falling.

  24. Jms

    A useless person produces useless ideas whilest a useful person does useful things and its true knowledge plus wisdom produces wonderful things you will see when by the grace of God empowerment changes around to men then check how Zambians will progress because depending on someone who doesn’t respond to you is just a worst of time

  25. Shayne Jr'z

    The one who introduced kwacha ngwee made a very big why didn’t he leave British pound💷???I wonder if they are comparing dollar to our useless currency in other countries……

  26. Chillz

    Someone needs to do something here otherwise Zambia will always continue to suffer like this God help us we are in dip mess like seriously.

  27. J5

    Busy Commenting, let’s go start businesses..

    • Daliso Ngwira

      how do we start when carders are busy fighting for places were we do business

      • Ruff

        True simz lyk every trading place en businesses are owned by of thugs.

  28. Gershom Kapalaula

    Buy what you can’t grow or grow what you can’t buy, world bank tricks is playing on people’s minds. Answer is let everyone strive to grow something at least then you won’t see this paper money tricks. Production is the answer.

  29. kosapo

    What do u think mwanakatwe can do in that office..? Poor leadership..

  30. Kay chams

    We don’t have to blame the Chinese,it’s the same as what South Africans are doing by blaming foreigners and Zambians are in the forefront condemning South Africa now you feel how they feel when they say foreigners are taking their jobs,business and so on.Look both sides all is given to us Zambians but do we utilize our resources no then foreign investors come and employ us because we can’t manage to start our own business and employ people the same what is happening in South Africa.Africa just wake up and use your knowledge and power the same people complaining they go outside the country to source business what is that,so stop complaining no man is an island.

    • Dr Fonicks

      All these are a result of economic mismanagement. we have leaders who lack direction or simply who are there to just enrich themselves. They have lost direction. Look at the minister of finance. she is a miss. I wonder how and why mutati was relieved of his position. maybe he was hinderous to their pilfering the state coffers. This is not a global issue but purely PF mismanagement.

  31. Mumba

    Short of words with some coments

    • Jethro

      Bible ddnot lie wen it said were there is no vision people perish…some one somewhere told the nation that he doesn’t have a vision and people voted for him though without a vision. Then today u want God to help us…..now ways.

  32. Jay1

    For as long as we don’t know what an economy is or what economics is we will always come up with wrong conclusions. Some pipo think for an economy to grow we need to read…lol..instead we need to work. We av come to respect people with papers just without understanding whether the guy with papers actually understands the things he or she learned from school. Most people really want to politicize everything because they think if we change to HH or Kambwili etc. it’s gonna be heaven on earth but what we are forgetting is that we av changed leaders before. Not to mean changing leadership is not part of the solution , but that as we change leadership we must be true to ourselves and understand exactly what we are voting for. Otherwise for me to understand how people must leave is the more ultimate point than even just changing leadership so that we put our relatives all friends in power.

  33. Jessen facts

    The big problem is the leaders.
    They behave as if they have not gone under education . everyday every time is politics , how can u develop when every time your most important thing is politics . these niggers are building missions , sending their children abroad and too much stealing .
    One that keeps on borrowing never develop s which is a fact.
    I wonder , I wonder : u can’t borrow money and go and build something without thinking where am I going to get the money to repay my load.

  34. Be wise

    King terrible of you to insult others do you think pf will stay forever? Am not a supporter but your stance is bad. You can swear all you like it shows how shallow minded youre. Shallow is better , you empty.

  35. paul

    Wowoooo dnt giv holy things to dogs bcoz its useless to them,u can’t give greater things to ungrateful people still they’re available to ask for hell,you think that God is pleased with things we are doing in our country, e,g corruption 100%, trabulism100 % ,prostituting at high levels 100%, accussion 100% hatred 100%, bars100% u think God is happy? To God this abomination according to your address of your country Zambia a Christianity nation creating false information, this is not country,people who are dwelling in are…..,…………….. To our father in heaven repeat all leaders in officers before you be approach by angels of God like what happen to king herod,that’s my warning ok

  36. Michael jesapper

    Zeb Zeb God help Country

  37. Democrat

    On the poor subscribed bonds, who does the market research for the security market and packages. Rebrand the package to include small and medium investors into bonds.
    Sorry the Kwacha is falling like a stone, always the case when you invest wrongly where productivity 25 years away

  38. Abdul BASEER khan

    I uave 50000 thoseand kawacha can i Help me in pakistan foe exchange contact me please
    Abdulbaseernk@gmail.com

  39. mike ngosa 0978123436 c/o one world Zambia

    The rule of Mankind can not provide all that we require, the best we can do is pray for God’s kingdom to come soon.
    In God’s kingdom all that human need will be provided.

  40. mike ngosa

    The rule of Mankind can not provide all that we require, the best we can do is pray for God’s kingdom to come soon.
    In God’s kingdom all that human need will be provided.

  41. Risade

    The solution to our sinking economy in our so rich Zambia is changing the one who is in charge of the nation’s finances. We have very capable men and women who can run this department better than the incumbent. Remember when you start to change office bearers in sensitive departments,one reads to the other. Stop calling God for help. This is a very small issue. The destiny of this country blessed with abundant wealthy lies in our own hands.

  42. Jay

    Yaabaa! Paipa pano. The dollar is increasing but the salaries remains the same. What’s going on.

  43. INDETU

    I’m surprised Zambians are upset with 0.2 adjustment of our GDP by the WB. This is an adjustment of about 4.7% in real terms. Meaning the growth is okayed by +_ 95.3%.
    Those of us who have had a chance to sit with WB or IMF teams know this is the best result Zambia has ever had to my recollection.
    Our real issue is the Sales Tax regime whose incidence is like income tax in that it lies where it falls. If the Govt can remove Sales Tax from ensential commodities, then we can truelly say bye bye to the punitive VAT.
    VAT burdened the poor and largely benefitted the rich corporations. All in all, the actual growth in 2019 may hit 3.7%!

  44. one khris

    The only way is to remove thievies and thugs from the government how can you allow the thugs to run the enocomy and dont try to mock god with fake prayers while pf thugs are allowed to bit and to insult how can god answer ur prayers

  45. Danielle Jensen

    Well a strong dollar does have a tendancy of effecting most markets, especially emerging markets, there’s no surprise there. But if fuel prices could be curbed that would be idea.

  46. Bright

    Honestly if we think few educated citizens sit behind these computers and cry for change we won’t yield anything, take a stance from England with the global warming issue and how the peaceful protest took centre stage in London by closing and blocking major roads, we can all leave our offices and demand for change we can’t be toothless lions roaring in the dark enough is enough, for you who have children or wish to have children do you wish to see them live in such a society I’m guessing not.

  47. One zed

    I like ba zed

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