New regs tighten exchange control

Zambia is tightening up what have been described as “laissez faire” foreign exchange regulations – a move that has caught some shippers off-guard. Finance minister Alexander Chikwanda has said that a tightening of the regulations is needed in order to curb tax avoidance by exporters. Washington-based Global Financial Integrity estimates that the country lost more than R60 billion in tax revenue over the past 10 years due to underinvoicing. The new regulations allow the Central Bank of Zambia to monitor and regulate exports more closely.