BANK of Zambia (BoZ) Governor Dr Denny Kalyalya says the country has to increase its production capacity in order to reduce the inflation rate to a single digit.
The annual rate of inflation for the month of October showed a decrease to 21.1 percent from 22.1 percent recorded in September 2021.
In an interview, Dr Kalyaya said the Bank of Zambia, in collaboration with the Ministry of Finance, was working towards reducing the inflation rate to a single digit.
“I think there are two aspects to that, one is getting it to [a] single digit and then by 2023 to get it to the requirement, to six to eight percent. Already you are seeing some inflation has started to come down. So a lot has to do with perception which I am sure, it will move fast. We have to produce more goods because much of our inflation was much more driven by lack of goods in the economy,” Dr Kalyaya said.
“Yesterday I was also seeing some of the players because of the appreciation of the exchange rate and have decided to reduce prices. So that is possible, it is very possible, that is normally the key targets that we will be working towards and obviously with close collaboration with the Ministry of Finance and other stakeholders, so it is achievable and we will work towards achieving that.
And Dr Kalyaya said the closure of Kasenseli gold mine would not hamper the procurement of gold by the Bank of Zambia.
“I think it is a process, we will see. It is not [only] in Kasenseli which is the source of gold, I think there is an established mine where the gold was being bought, so that programme will continue and will ramp up. When that is cleared, I am sure it will be a good source of the additional gold. So all is not lost,” said Dr Kalyaya.