By Daily Revelation Editor
Special assistant to the President for Finance and Investment Jito Kayumba says the war launched by the United States of America (USA) and Israel against Iran is threatening to undo the gains the country has made in stabilising the Kwacha and inflation in the country.
In a statement issued a few days ago, Kayumba addressed the implications of the war on the global oil markets.
Kayumba argued that the appreciation of the Kwacha had enabled Zambia to procure crucial imports that are priced in USD like oil at a lower price in Kwacha terms, and that these savings have been passed on to Zambian consumers who have experienced fuel price drops over the last few months.
But he said these positive trend may however, be inconvenienced by recent the conflict in the Middle East where the majority of the country’s fuel is sourced from.
”As the situation in the Middle East escalates, the global energy market is facing its most significant threat in decades. Reports as of today, March 1, 2026, indicate that Iranian naval forces have begun hailing commercial vessels, declaring the Strait of Hormuz closed,” stated Kayumba. “The Strait of Hormuz is the world’s most important energy artery. At its narrowest, the shipping lanes are only 3.2 Kilometres wide, yet they carry a staggering volume of the world’s energy, approximately 20 million barrels of crude and refined products pass through daily. It is the exclusive exit for nearly all of Qatar’s Liquefied Natural Gas. Major Asian economies specifically China, India, Japan, and South Korea, rely on this passage for upwards of 75–80% of their petroleum needs.”
It surely can’t be argued that the country has experienced benefits passed on to consumers, as rightly observed by Kayumba. Fuel prices which were once hovering at close to K35 per litre have been reducing and now trading around K26 per litre. Of course we must add that the K26 is almost over K10 the price the UPND administration found it at when taking over public office in 2021.
The Kwacha also which was at one point heading towards the K30 to US$1 mark has since appreciated to just below K20 to $1. These are very positive developments. But as Kayumba rightly pointed out, they are all likely to be wiped out because of the instability in the Middle East.
However, while the government cannot control matters that happen outside the country’s borders, they should nevertheless, proactively work towards solutions to mitigate the shocks brought about from the outside. This is what Kayumba as an aide to President Hakainde Hichilema must be advising the Head of State to embark upon. They should be able to plan on how they will limit those shocks from affecting the public.
Sometimes, solutions can actually be found even in challenges. For instance, we have a huge resource in copper in this country, and other important minerals. What is being done to ensure that Zambians get optimum benefits from the copper prices, which are enjoying historically higher prices on the global market at around $13,000 per tonne? Actually, the likelihood of copper fetching higher during times of war is even higher.
The government should address Zambians on what they are doing to offset the shocks being imposed on the country from the outside.
Related
By Daily Revelation Editor
Special assistant to the President for Finance and Investment Jito Kayumba says the war launched by the United States of America (USA) and Israel against Iran is threatening to undo the gains the country has made in stabilising the Kwacha and inflation in the country.
In a statement issued a few days ago, Kayumba addressed the implications of the war on the global oil markets.
Kayumba argued that the appreciation of the Kwacha had enabled Zambia to procure crucial imports that are priced in USD like oil at a lower price in Kwacha terms, and that these savings have been passed on to Zambian consumers who have experienced fuel price drops over the last few months.
But he said these positive trend may however, be inconvenienced by recent the conflict in the Middle East where the majority of the country’s fuel is sourced from.
”As the situation in the Middle East escalates, the global energy market is facing its most significant threat in decades. Reports as of today, March 1, 2026, indicate that Iranian naval forces have begun hailing commercial vessels, declaring the Strait of Hormuz closed,” stated Kayumba. “The Strait of Hormuz is the world’s most important energy artery. At its narrowest, the shipping lanes are only 3.2 Kilometres wide, yet they carry a staggering volume of the world’s energy, approximately 20 million barrels of crude and refined products pass through daily. It is the exclusive exit for nearly all of Qatar’s Liquefied Natural Gas. Major Asian economies specifically China, India, Japan, and South Korea, rely on this passage for upwards of 75–80% of their petroleum needs.”
It surely can’t be argued that the country has experienced benefits passed on to consumers, as rightly observed by Kayumba. Fuel prices which were once hovering at close to K35 per litre have been reducing and now trading around K26 per litre. Of course we must add that the K26 is almost over K10 the price the UPND administration found it at when taking over public office in 2021.
The Kwacha also which was at one point heading towards the K30 to US$1 mark has since appreciated to just below K20 to $1. These are very positive developments. But as Kayumba rightly pointed out, they are all likely to be wiped out because of the instability in the Middle East.
However, while the government cannot control matters that happen outside the country’s borders, they should nevertheless, proactively work towards solutions to mitigate the shocks brought about from the outside. This is what Kayumba as an aide to President Hakainde Hichilema must be advising the Head of State to embark upon. They should be able to plan on how they will limit those shocks from affecting the public.
Sometimes, solutions can actually be found even in challenges. For instance, we have a huge resource in copper in this country, and other important minerals. What is being done to ensure that Zambians get optimum benefits from the copper prices, which are enjoying historically higher prices on the global market at around $13,000 per tonne? Actually, the likelihood of copper fetching higher during times of war is even higher.
The government should address Zambians on what they are doing to offset the shocks being imposed on the country from the outside.
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