Zambia’s investor confidence eroding – Economist

By VITA BANDA

ZAMBIA’S credit ratings have negatively affected the country’s investor confidence and which has in turn severely affected the exchange rate, leading to the free-fall of the Kwacha, Economist Emmanuel Zulu says.

Mr Zulu says the Debt to the Gross Domestic Product (GDP) ratio which was now at 100 percent was also affecting investor confidence, forcing the investors to invest in more stable and predictable economies in other countries.

He said that there was need for the government to continuously engage external creditors for the country to get the much-needed debt relief.

Mr Zulu said Zambia had recorded reduced investment inflows which had contributed to the continuous depreciation of the Kwacha, currently trading at more than K21 against other convertible currencies.

According to Mr Zulu, the reduced investor confidence was reflected in reduced investment in the country, which was impacting the value of the Kwacha against major world currencies.

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