Trade economist and consultant Trevor Simumba has observed that Zambia’s economy is in chaos because government has no clue of running it.
Mr. Simumba says government has not come to terms that Money is a life blood of any economy.
He holds the view that the selling of dollars, bonds and treasury bills and thereby removing the Kwacha from circulation, is what has made the country’s economy anemic.
Mr. Simumba states that the demand conditions are also unfavorable for the survival of any business in Zambia.
He is also of the view that the increase in interest rates cannot stem inflation and help stabilize the Kwacha as the Bank of Zambia (BoZ) is envisaging.
Mr. Simumba says that the government deficit financing is what is pushing up the interest rates- cost push inflation- and creating demand for the dollars.
He explains that this is because most of infrastructure contractors are foreign business organizations.
Mr. Simumba has advised government to put a moratorium on all new projects and revise priorities as he foresees 2016 being an even greater disaster for the Country.