FINANCE and National Planning Minister Dr Situmbeko Musokotwane says by the end of this year, the Kwacha should be stabilised and prices of some commodities will reduce.

Speaking during Diamond TV’s “Diamond Live” programme, Friday evening, Dr Musokotwane said the expansion of old mines like Lumwana and First Quantum would bring foreign exchange on the table which would eventually lead to the stabilisation of some commodity prices.

“First Quantum, Lumwana, these old mines are also expanding. So, by the end of this year, next year, certainly the Kwacha should be a much more stable currency than we have seen in the last two years, why? Because these two mining companies would bring foreign exchange on the table and help to stabilise prices. That is on the stabilisation of the prices. The issue is okay, are you telling me that the prices will be going down? The other thing that you need to take note [of] is that a number of things are happening, especially in the manufacturing sector, new companies are opening up. Of course you are aware about the fertiliser which we used to import now is locally produced, steel plant coming at the Multi-Facility Economic Zone, battery factory that is going to take place in Chibombo within a few months. All these are things we are pushing to ensure that the formal employment goes up,” he said.

“This is why almost every part this year, we hear ‘lower the cost of doing business’. That’s why you hear us talk about reducing taxes so that these jobs come through. Yes, do we see prices going down or not? My answer is that some prices yes, will come down more especially for those where we import. Once these mining companies bring more foreign exchange, exchange rate stabilises, there is a possibility that some of the items that we import, the prices will go down. But your question is what about now? Again, to answer the question of now, we acknowledge the fact that part of the problem now is obviously drought which has pushed up the prices of mealie meal. Now, there are specific interventions that government has put in place now. Some of those interventions, in fact, most of them, are not about pushing the price down, there are some about pushing the prices down but the majority of them are about putting money into people’s pockets”.

He said government had re-established the Food For Work programme to help cushion the drought effects.

“Firstly, I think we have all agreed as a government that for the elderly, those above 60 years have been registered already, the lactating mothers, for the people who are incapacitated physically the men and so forth, this group of people will continue to receive social cash transfer and this social cash transfer, we are actually expanding the original group to include those who were not already registered under social cash transfers. The amount received will also be enhanced during this period of the drought. So, putting more money into people’s pockets so that they can afford to buy food for their children. Now, there are also people who are able-bodied especially here in the rural areas but the harvest did not happen because of the drought, they also feel hungry so what do we do with them?” he asked.

“The plan that is there is Food For Work which has happened before, except this time, the food for work will not be in material form but you do work and you are paid, since you have been paid, you are going to buy something for yourself. This food for work also addresses the issue of development. So, where government is putting money into people’s pockets, for the elderly, free money but for able-bodied people, you are given money to be able to do some work that is useful for the community that is there…clearing roads is very important. In these streams here, there are places where we need to do bridges. Surely, if communities are asked by government to build a bridge over a stream then we pay them, that is part of the short term measures of ensuring that people are able to have access to food”.

He said part of the answer of meeting people’s living requirements was to increase incomes.

“So, you see, here that it’s not about pushing prices down because farmers will also say that ‘if you want to lower the prices of mealie meal, are you saying that me a farmer, you must also force me to lower the prices of maize, I will not accept that’. Part of the answer of meeting people’s living requirements is to actually increase incomes. Increase incomes, more money comes into your pocket, you are able to buy your food. This is very important not just for rural areas but for urban areas. You live in Lusaka, you have seen the hips or mountains of rubbish on the road side, give people, the residents of that area, ‘clear that rubbish’, it’s good for them because it reduces the chance of cholera,” said Dr Musokotwane.

Meanwhile, UPND National Youth Chairperson Gilbert Liswaniso asked Dr Musokotwane to inform Cabinet that youths needed them to explain the developments taking place in the country in order to bridge the communication gap between government and the electorates.