Any meltdown in global economy will impact Zambia directly, warns BAZ

The Bankers Association of Zambia (BAZ) has warned that any meltdown in the global economy is likely to have a direct impact on the Zambian economy.

Association Chief Executive Officer Leonard Mwanza says while the country was able to navigate through the 2008 global financial crisis, Zambia is currently in a precarious position to withstand such a crisis.

Mr. Mwanza says this is because the Country is presently highly dependent on what is happening in the global economy.

In an interview with QTV News, Mr. Mwanza says for example, Zambia has been directly hit by the rising prices of crude oil on the international market.

He says the BAZ therefore foresees this increased price in crude, which has already resulted in the increase in fuel pump prices, to feed into the Country’s inflation and affect the Kwacha.

Mr Mwanza states that if the price of copper equally start going down as a result of a global financial crisis, there will definitely be a direct correlation in terms of Zambia’s ability to sustain its economy as there will be some headwinds linked to this.