Political instability scaring investors, says M’membe

INVESTORS are not interested to invest in Zambia because there is political instability and the country’s democracy is dwindling, Socialist Party president Fred M’membe has said.

Dr M’membe said no investor can invest in a country where the Government was creating a hostile political environment.

‘right now, investor confidence was low and that the country should not underestimate this situation because it will have a negative impact on the economy. It’s not only economic factors that affect the Kwacha but also perceived political instability.

"Take the PF wrangles as an example. These wrangles have also resulted in perceived political instability in the country and consequently foreign investors are cautious to make decisions to invest in Zambia,'' Dr M'membe said.

He advised the Government to stabilise the political space so that investment can flourish because what was transpiring was bad for the country.

Dr M’membe said rebuilding investor confidence would be critical as more investment would come in, attract more foreign exchange thereby strengthening the local currency.

He said the UPND should realise that if the situation does not change, the economic situation would worsen and it would be the people who would suffer.

“The reality however is that since January 1, 2024, the Kwacha has continued to depreciate on a weekly basis. It is anticipated that by end of this week the Kwacha will be trading at K27 to a dollar. This trend is not good at all, UPND can do better than this,'' he said.

And Dr M’membe said Zambians had no hope of achieving economic recovery and national development under the UPND because the ruling party was serving the interests of the imperialists who were coming in form of multinational companies.

"The Copperbelt is the most important province of Zambia because of the mines, but unfortunately, the living standards of the people in the area has continued to deteriorate. The Copperbelt used to provide employment for the youth, while on the other hand, it used to provide business opportunities for the local people, but this is no longer the case,” he said.