The unprecedented depreciation of the Zambian Kwacha has sent shockwaves through the cross-border trading community, with small-scale traders struggling to keep their businesses afloat.
The Southern Africa Cross Border Traders Association has sounded the alarm, warning that the local currency’s sharp decline now at a record high of K29.09 per US dollar is pushing many traders toward collapse.
Association Secretary General, Jacob expressed deep concern over the instability, stating that traders are increasingly relying on stronger foreign currencies to sustain their operations. He cautioned that if the trend continues, many businesses may be forced to shut down.
“This level of volatility is unsustainable,” Makambwe told Phoenix News. “The government must act swiftly to stabilize the exchange rate and reduce Zambia’s dependence on imports.”
Makambwe emphasized the urgent need to boost local production and export earnings warning that failure to do so would exacerbate the country’s economic woes.
The Kwacha’s latest slump, recorded on Friday , March 6, 2025, marks its weakest level since Zambia gained independence in 1964.