SA has sent a delegation to Zambia to take notes on how they are managing their economy and to be inspired by how the Kwacha is Manifesting.
Zambia’s Kwacha is among the best performing currencies in Africa beating the SA rand by two thirds.
From what I have picked up, Good governance is key. Some results include:
- Investor confidence. They have created a conducive environment for Investors. Investors feel safe with their money and investments. This is translating in a lot of forex resulting in a stable Kwacha.
- The Government has focused on empowering local producers. Local products and cutting down on imports. They are now exporting to Neighboring countries like Malawi. Most producers are indigenous Zambians who keep Money in Zambia not UK or Dubai .
- Government Marketing policies. Small holder farmers ( Peasant farmers)along the border areas are empowered and mandated to sell outside their country hence exporting and bringing in forex. They are allowed to sell in Foreighn currencies. Again stabilizing the Kwacha.
- Opportunities are democratized and you don’t need political connection and or affiliation to excel. Again, this has resulted in more forex coming in.
- Petrol in Zambia has just gone down .
Most of these have been achieved in 9 months with Covid and UKRAIN WAR going on…Globally.