Post-election kwacha shock normal, says Miles

Post-election kwacha shock normal, says Miles
By Chiwoyu Sinyangwe
Tue 27 Sep. 2011, 10:30 CAT

THE kwacha's collapse to one of its lowest ebbs in 12 months during last Friday's trading session following the election of President Michael Sata is normal, says financial market expert Miles Sampa.

And Sampa, a member of the ruling PF's economic team, said all foreign investments in the country are safe, and the current regime will not implement any radical change to the current economic trajectory in the country.

Following the Patriotic Front's ascendance to government after Tuesday's tripartite elections, the kwacha tumbled against the dollar to the level of K5,180 while local financial markets closed early on Thursday due to electoral tension in the country.

In an interview, Sampa said it was good for the economy that the beating the local currency suffered on the change of regime did not prolong.

"It's normal to get instant reaction each time there is an election, especially when government changes," said Sampa who is also PF Matero Member of Parliament. "In some cases, it goes on for a long time, but in our case it was only for a few hours but the government is only in place for a few hours. I am glad the kwacha regained its lost value just after the announcement of the elections and went back to where it was."

Sampa said the PF government would not implement decisions or policies that were anti-investors.

"Overall, all investors are safe. All the policies will generally continue while we implement the PF manifesto," he said. "Where the PF will need to make amendments, nothing will be done in surprise. The affected investor will be engaged and there will be agreement in whatever changes that will be made. The good policies will continue but where we have reservations, we will engage those investors, and I can guarantee that they investors will agree with the proposals because they will be both in the benefit of the Zambian people, the investors and the country in all."

He stressed that there would be no "radical changes" under PF.

"The changes that will happen will happen in consultation with the various investors and those changes will only be implemented when the investors themselves agree with those changes and I am confident that they will agree with those changes," said Sampa.