. Schutz

By REBECCA MUSHOTA –
US Ambassador to Zambia Eric Schultz has said the continued depreciation of the Kwacha against major currencies is inevitable because of the global economic changes.
Mr Schultz said in Lusaka during a Press briefing yesterday that the Kwacha had been under pressure because of the economic changes in the US, the world’s largest economy, and China, which is a huge copper export destination for Zambia.
“It is complicated. The Government is saying that the Kwacha has depreciated because of external factors. That is unquestionably true to an extent,” he said.
Mr Schultz said the US economy was still recovering, putting pressure on emerging markets such as Zambia.
He said the Chinese economy, which is a huge market for Zambian exports, was also struggling.
Mr Schultz said the depreciation of the Kwacha could be good for Zambia because when a country was facing economic challenges, it was at times appropriate to depreciate the currency and make the exports cheaper.
He said the depreciation of the Kwacha was inevitable, but should not be left to get out of control as that would cause further damage to the economy.
The US envoy said that diversification of the economy that President Edgar Lungu was championing was a long-term measure that would not bring immediate results but was beneficial.
He called on the Zambian Government to consider engaging financial institutions such as the International Monetary Fund (IMF) to dialogue and seek the best policy forward.
Meanwhile, Mr Schultz has said that US President Barack Obama is aware that many African countries are facing challenges in the energy sector.
It is for that reason that President Obama included training in the energy sector in the upcoming Mandela Washington Fellowship for Young African Leaders for 2016.
Mr Schultz said the 2016 fellowship would train youths in business and entrepreneurship, civic leadership, public management and energy generation.
“This year, President Obama has doubled the number of participants to 1,000 young Africans who will travel to the US for an intensive six-week academic and leadership programme,” he said.
Mr Schultz said the youth that would participate in the programme would attain skills that would make them more successful in various fields.
The applications for the fellowship are open to youths between 25 and 35 years of age and they could apply from yesterday to November 11 this year via online.
Successful applicants will travel to the US for a six-week programme from June to July next year.