Political Analyst Alex Ng’oma says Zambia is more likely to face negative effects of the economic crisis in China since the two countries are closely related in trade.
Political Analyst Alex Ng'oma says Zambia is more likely to face negative effects of the economic crisis in China since the two countries are closely related in trade.
Dr. Ng'oma said there will be implications of the economic crisis even though the trade between Zambia and China is imbalanced.
He explained that China exports more to Zambia while the later imports more.
Dr. Ng’oma, who is also a lecturer at the University of Zambia, said the devaluation of the kwacha will result in Zambia importing less than it has in the past years; thereby affecting the economic and trade flow.
He added that the economic destabilisation China is facing would in turn bring cheap investment to Zambia.
He also said in case of any other strives that will emanate from China’s current situation, Zambia is due to receive more spill-overs.
Meanwhile, Secretary to the Treasury Fredson Yamba said the activities happening in China are worrying because Zambia is part of the global community trading with that country.
Mr. Yamba said Zambia is still alive to the effects of the 2008 economic crisis.
The People's Bank of China has cut its main interest rate by 0.25 percentage points to 4.6% after a stock market turmoil.