Controlling The Economic Storm: President Hichilema’s 2022 Economic Policies Bearing Fruit

Since his election in August 2021, President Hakainde Hichilema moved quickly to fix the country’s debt problem with the International Monetary Fund, and now the benefits of this are slowly starting to take shape.

Reduced inflation, rising GDP and a strong Kwacha are just some of Zambia’s improving economic indicators that have been brought about through stable governance and strong economic policy. 

Following a series of fiscal and monetary policy measures to align the economy, Zambia has seen its prices fall from an out-of-control 24.4% in August 2021 to 9.8%.

Additionally, the Kwacha has gone from one of the worst-performing currencies to one of the best, increasing domestic purchasing power. 

With regard to the supply side of the economy, the recruitment of 40,000 teachers and health workers has improved the quality of life throughout the country. 

For example, Dingani Banda, a car dealer in Lusaka, has said that after 15 months of losses he is now seeing sales jump by 50% or over in the past year. 

He said that the strengthening of the Kwacha had been one of the biggest factors in kick-starting his business. 

He said, “The fluctuating Kwacha in the last few years was a nightmare, and so to be able to enjoy its stability and appreciation in recent months has been relieving.”

“We have had an increase in clients being able to afford purchasing vehicles now because of the appreciated value of the currency,” he added.