Lusaka based economist Oliver Saasa has attributed the continued weakening of the Kwacha to lack of clarity in government policy for the country’s mining sector.
Professor Saasa says this lack of clarity lies in the impasse that is there between government and the mining houses over the newly introduced mineral royalty tax.
He thinks that this is what has led to the Mining sector not pumping in sufficient foreign exchange resource to expand their ongoing production which in turn is reducing the amount of foreign currency such as the Dollar in the country’s economy.
Professor Saasa has explained to Qfm News in an interview that lack of clarity in government policy has also led to prospect investors who want to invest in the country to be reluctant.
He says what government needs to do therefore is to quickly resolve the impasse it has with the mines as it is now long over due.
And Professor Saasa has also suggested that for fact that the Mining sector has proved to be injurious to the country’s economy due to the dropping of the copper prices on the international market, there is need to seriously look at the long term plans of growing the economy.
He says this still lives in diversifying the economy away from copper.