Mundubile Questions Zambia’s Foreign Exchange Reserves

Brian Mundubile Says Household Needs Should Take Priority Over Reserves

NRPUP presidential candidate Brian Mundubile has questioned the importance being placed on Zambia’s foreign exchange reserves, arguing that government resources should primarily be used to address the immediate economic needs of ordinary citizens.

Speaking at a campaign rally in Nyimba, Mundubile said paying farmers and council workers, addressing unpaid obligations and improving household welfare should take greater priority than focusing heavily on economic indicators such as foreign exchange reserves and inflation.

Mundubile’s Position on the Reserves

Mundubile argued that the value of economic reserves should ultimately be reflected in the lives of ordinary Zambians.

He said citizens continue to face economic difficulties despite the country’s reported increase in foreign exchange reserves. His position is that government should focus on ensuring that people receive payments owed to them and have improved economic conditions.

The presidential candidate also pledged to introduce a debt-swap programme for civil servants if elected, presenting the proposal as part of his broader approach to addressing financial pressures affecting households.

Economist Explains Why Reserves Matter

Economist Dr. Lubinda Haabazoka, however, has offered a different perspective on the role of foreign exchange reserves in the economy.

He explained that reserves are an important financial buffer for a country because they can be used to support essential imports, help stabilise the local currency and meet external financial obligations.

According to Haabazoka, strong reserves can also contribute to investor confidence and provide protection against economic shocks that could put pressure on the country’s foreign exchange market.

Zambia’s Reserves Reportedly at US$6.5 Billion

The economist said Zambia’s foreign exchange reserves currently stand at approximately US$6.5 billion, which he indicated is enough to cover around six months of imports.

That level is above the commonly used three-month import-cover benchmark, making reserves an important part of discussions about Zambia’s economic position.

Foreign exchange reserves can help a country continue paying for goods and services from abroad even when foreign currency inflows become weaker. They can therefore play an important role in maintaining economic stability.

Debt Restructuring Remains Part of the Debate

The discussion over Zambia’s reserves also comes against the background of the country’s recent debt challenges.

Zambia defaulted on its external debt in 2020 before undertaking a lengthy restructuring process with creditors. The country has since restructured approximately US$13.3 billion in external debt and exited default.

The progress on debt restructuring has been presented by the government as an important part of Zambia’s economic recovery, while opposition figures continue to argue that economic improvements must translate into more visible benefits for ordinary citizens.

Different Priorities Ahead of the Election

Mundubile’s comments highlight one of the broader economic debates likely to feature during the election period: whether government should prioritise maintaining macroeconomic stability or focus more aggressively on immediate household needs.

Economic reserves, inflation, debt and currency stability can appear distant from the daily concerns of citizens dealing with food prices, employment, salaries and household expenses. At the same time, economists argue that maintaining strong financial buffers is necessary to prevent deeper economic problems that could ultimately affect households.

The disagreement therefore reflects different approaches to how Zambia’s economic recovery should be managed.

The Bigger Economic Debate

For Mundubile, the priority is ensuring that available resources produce tangible benefits for citizens, including farmers, council workers and civil servants.

For economists such as Haabazoka, maintaining adequate foreign exchange reserves is itself an important part of protecting the economy and supporting the Kwacha, imports and financial stability.

As political parties continue presenting their economic plans to voters, issues surrounding reserves, debt, employment, inflation and household welfare are expected to remain central to the national debate.

Mundubile’s position has consequently added another dimension to the discussion over how Zambia should manage its economic resources and balance long-term stability with the immediate needs of its citizens.

Brian Mundubile, Lubinda Haabazoka,