By HELEN ZULU –
THE Economics Association of Zambia (EAZ) has urged Government to put in place measures that will end dollarisation in the country and avoid putting pressure on the local currency.
EAZ board member, Philippe Masengo said the association was concerned with the current trend by landlords and property developers who charge rentals in United States (US) dollars.
Mr Masengo said this situation was causing serious difficulties among the business community and subsequently putting pressure on the Kwacha.
He was speaking during the social forum on high inflation rate and impact of the cost of living organised by the Jesuit Centre for Theological Reflection (JCTR) in Lusaka last Thursday.
Mr Masengo said it was saddening that people were still dollarising even after Government’s decision to ban the usage and quoting of dollar during transactions.
“The dollarisation of rentals is stifling the economy and defeating Governments’ efforts to stabilise the local currency.
“As EAZ, we feel Government should put an eye on this trend and come up with measures that will end dollarisation so that the Kwacha can appreciate because when we use the dollar, we are putting more demand on the foreign currency,” he said.
Mr Masengo further urged Zambians to buy local products to support the local manufacturing industry.
He said this would help to lower inflation rate and protect the local currency thereby creating jobs for Zambians.
“The buy Zambian campaign must be taken seriously because it is one of the short term measures to control the local currency.
“By buying local products, you boost the local manufacturing industry because manufacturers will have to produce more to meet the demand, this will result in job creation and the diversification agenda will become a reality,” he said.
JCTR Basic Needs Basket (BNB) coordinator, Innocent Ndashe appealed to Government to prioritise and implement expansion of electricity generation as well as investing in other sources of clean energy.
Mr Ndashe said this would contribute to increased economic activities, Gross Domestic Product and improved standards of living as more people would be able to earn incomes including those in the informal sector.
He noted that currently, the cost of living was high in many towns in the country as the prices of essential commodities had steadily risen due to a number of factors.
The factors include the weakening macroeconomic fundamentals in the real economy such as electricity power deficits.
Mr Ndashe said the JCTR BNB had shown similar trends over the last 12 months reaching the highest ever BNB of over K4, 000 for a family of five.