Costs of Rebasing the Kwacha (A Response)

From Zambian Economist Mon Nov 12 2012, 13:58:00

By Francis Ilunga

The article Costs of Rebasing the Kwacha, that was published on 7 November 2012, raised important questions, which cannot go without comment. Below are a few observations concerning the said article:

1. The author has alleged that businesses will spend a lot of money on reconfiguration of their IT platforms, and that most of these costs will be passed onto consumers in one way or the other. The author has however neglected to mention the costs that most businesses incur in reconfiguring/ customizing standard packages (accounting/audit, etc), that they acquire from time to time. You will appreciate the fact that the packages used in Zambia are developed in jurisdictions where values, at a maximum, tend to be in millions. The present situation in Zambia, where some organizations, especially banks record values in billions or trillions of Kwacha, requires further customization of such packages in order to widen data fields, which tend to be very costly. With the rebasing of the Kwacha, businesses will no longer be spending money on the reconfiguration / customization of newly acquired packages. The same goes for ATM machines, which have to be customized to dispense millions of Kwacha, as opposed to hundreds and a few thousands in jurisdictions where they are manufactured. Therefore, apart from this one off cost that businesses will incur in recalibrating their IT platforms to conform with the rebased currency, it is easy to see that businesses will stand to benefit more from rebasing than they will lose.

[view whole blog post ]
 See More    |     Report Abuse


You might also be interested in the following news stories:

Zimbabwe:   Teenage Whizz-Kid Makes Academic History (news)
The Herald
30 September 2016

History was made since the founding of the University of Zimbabwe in 1953 when 18-year-old academically-gifted Maud Chifamba graduated with a Bachelor of Accountancy Honours yesterday.She was among 3 ... [read more]

Zimbabwe:   National Bank Says Money Supply Increases (news)
Financial Gazette
27 September 2016

Zimbabwe's money supply growth increased by 1,71 percentage points to 14,84 percent in July from 13,13 percent in June due to increased foreign exchange inflows during the tobacco selling ... [read more]

Zimbabwe:   Govt Urged to Crackdown On Parastatals (news)
Financial Gazette
29 September 2016

Millionaire investor, Frank Buyanga, says government should bring sanity to State-owned firms, which are rife with high level accountability and corruption. Buyanga, one of the country's richest young ... [read more]



blogAfrica is allAfrica.com's platform to help you keep an ear on the African blogosphere. We draw diverse voices from around the world who post regularly and insightfully about African issues. Bloggers, submit your blog's rss-feed!