Falling production within Zambia’s mining sector is leading to the weakening of the Kwacha, according to leading Copperbelt-based economist Manase Siwila.

On Thursday, the Kwacha breached the K23 level, trading between K23.00 and K22.57 against the Dollar.

For more than three years, major mining firms in the country, Konkola Copper Mines, Mopani Copper Mines and Chambishi Metals, haven’t been operating at full capacity.

Siwila went on to add that the weakening Kwacha highlights that the country’s economy was struggling, Lusaka Times reports.

As a result, he suggested that increasing exports and reducing foreign investors’ externalisation of funds could help to stabilise Zambia’s currency.

“Check the productivity levels. They are so low. The production in the mining sector that we all know helps have foreign exchange into our country seems not to be on the right track in terms of production,” Siwila commented.

He went on to say: “Remember we are an importing country, for that matter we seem to have too many imports as compared to exports this in itself has weakened the Kwacha. The weakening of the Kwacha is not good for the economy. This is why the cost of living is on the higher side because we have a lot of money that is being externalised,” he stated.

The economist added: “We need to increase production in order to arrest the weakening of the Kwacha. We need to attract more foreign currencies.”