‘Let’s sell copper in Zambian Kwacha’
By Business Reporter
ZAMBIAN copper should be paid for in Kwacha to ensure that the bulk of the money earned from the mineral’s exports is retained in the economy, business consultant, David Punabantu, has said.
Mr Punabantu said buyers of Zambian copper could transfer the foreign exchange equivalent of the purchases to be converted into Kwacha here using local banks, to facilitate for the paying of any purchases.
Speaking in an interview, Mr Punabantu said ensuring that the profits made by mining companies were retained into the economy was the only way the country would gain from its copper resources despite the mines being owned by foreigner investors.
He said the Government could oblige mining companies to have the copper sold in local currency by demanding that buyers convert their dollars into the Zambian Kwacha using Zambian banks.
Basically, buyers on the international market would have brokers in Zambia who would raise the Kwacha equivalent to pay the mining companies.
Any monies that the mining companies would need to externalise would then be obtained as foreign exchange through the normal banking procedures applicable to every one.
He said this would facilitate the circulation of the money in the economy which would also reflect in the national Gross Domestic Product (GDP), unlike the current situation where the profits were sent out of the country and Zambia was only benefiting through payment of tax which he said was comparatively very low.
The consultant observed that the current situation gave a lot of authority in the control of the exchange rate to the investors in the mining sector.
He said this had led to the failure of the exchange rate to accurately reflect the economic activities.
Mr Punabantu said although it would be difficult to implement the initiative, its implementation would assist the Zambian economy substantially.
