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The recent stabilisation of the Zambian Kwacha is a positive development, but its benefits have yet to meaningfully reach businesses and ordinary traders, the Southern Africa Cross-Border Traders Association has observed.
Association Secretary General, Jacob Makambwe, said although the local currency has shown signs of strength and stability, the gains have not translated into lower operational costs, particularly in fuel and transport, which continue to weigh heavily on traders.
In a telephone interview, Makambwe commended government for efforts aimed at restoring currency stability, noting that a stable exchange rate provides predictability and confidence for businesses.
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However, he said the expected relief in the cost of doing business remained limited.
“There is no doubt that the Kwacha has stabilised, and we appreciate the measures Government is putting in place. A stable currency allows traders to plan and assess performance, but we are yet to see its real impact on production and operating costs,” he said.
He said the association was still analysing how the improved exchange rate was affecting various sectors, including cross-border trade, before determining which groups were benefiting the most.
Despite the stabilisation, Makambwe noted that the cost of living remained high and purchasing power weak, with consumers and small-scale traders yet to feel tangible relief.
“For the stability to make a difference, we need to see reductions in fuel and transport costs, which are major drivers of prices. Until then, the impact on the cost of living will remain minimal,” he said.
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