ESTABLISHING a simplified one-stop clearing system with all Zambia’s neighbours will improve the performance of the balance of payment, says Ministry of Finance (economic management and finance) permanent secretary Dr Ronald Simwinga.
Dr Simwinga said establishing a simplified one-stop clearing system with all of Zambia’s neighbours was one of the measures to be taken which would improve the performance of Zambia’s balance of payments which were negative in 2015.
“Some of the measures aimed at improving the performance of the balance of payments in 2016 other complementary measures include establishing a simplified one stop clearing system with all Zambia’s neighbours,” he said.
He said facilitating joint ventures and partnerships between locals, local industries with foreign investors would also help improve the balance of payments. Dr Simwinga said the performance of the external sector for the larger part of 2015 had been unfavourable compared to the past two years due to significant reductions in the export earnings.
He said at the end of September 2015, despite the overall balance of payments having a surplus US$716.0 million, the current account balance widened.
He explained that the current account provided the net position in terms of export and imports for Zambia.
“As at the end September 2015, the current account deficit recorded a deficit of US$401.0 million due to higher import related services payment and increase in income on equity payments,” he said.