Zambians complain, "The dollar is killing us," as their government works to restructure its debt

Although it seems like business is booming at the Comesa market in Zambia's capital Lusaka, sellers claim that the poor local currency is hurting their industry and making things worse for a populace already struggling with increased living expenses."The dollar is killing us," said Ben Mwandila, who used to sell 15 imported blankets a month at a profit of 50 kwacha ($2.75) per sale but is now only doing two or three. "Bondholders who had invested in our local markets and whose bonds or investments are maturing are getting the money out and are not reinvesting," said Natalie Mwila of the Centre for Trade Policy and Development, an organization based in Zambia. "It's putting pressure on our local currency, which obviously has also raised the cost of living," he added The kwacha had risen from more than 22 per dollar in July 2021, just before president Hakainde Hichilema entered office, to as low as 15.4 kwacha per dollar in September 2022, supported by trust in the new leadership. Ordinary Zambians, on the other hand, are struggling. According to the Jesuit Centre for Theological Reflection, which records food prices, a minimum monthly food basket cost nearly 9,000 kwacha in December, more than double the national average monthly wages of 4,393 kwacha.