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more reasons will hamper the market for your goods<br />
and services.<br />
The best solution thus far is to follow the European<br />
Union model of completely opening up the boarders<br />
and having good,servicesl and people move freely. This<br />
could also entail having a common currency.Like the<br />
COMESA dollar for example. Even though this has a<br />
wide range of problems from security to inequality in<br />
terms of national economic gain, it can benefit most<br />
companies in Zambia greatly hence helping you have an<br />
opportunity to become a billionaire.<br />
In summary open boarders open your goods and services<br />
to a larger population. In addition,a regional organisation<br />
such as COMESA can help nations remove<br />
all hindrances to trade such as customs and risk related<br />
to having different currencies.<br />
[08:08, 1/29/2019] Michael Nkhosi: Morning am in love<br />
with the efficiency<br />
[08:08, 1/29/2019] Editor KUMBU, <strong>AgroPLUS</strong>: SAV-<br />
INGS<br />
Save save save is a song sang in Zambia everywhere.But<br />
what they do not sing is the last verse in the song, which<br />
is inflation.<br />
Inflation is a situation where your cash looses purchasing<br />
power or value to buy goods and services over time.<br />
Let’s take an example.Lets say you get paid K100 per<br />
month at work ,your total revenue or money coming in<br />
every month is K100.<br />
So you decide to use the K100 coming from your salary<br />
to pay for your food cost specifically buying mealie<br />
meal(Ubunga).If for the month of <strong>January</strong> a bag of 25<br />
kg is K100, it means at that initial time,your K100 salary<br />
can buy K100 worth of goods which is mealie meal in<br />
our case.<br />
Then in February a bag of 25 kg goes to K120.Then it<br />
means you have to use K120 from your K100 <strong>January</strong><br />
month end salary.But your K100 salary cannot buy a<br />
bag of mealie meal.You will need an extra K20.<br />
Let’s say you Kongola(get a loan) a K20 with no interest<br />
to pay back at the month end of Febuary.Then it means<br />
your salary at the month end is going to be K100 minus<br />
K20 which gives you K80.If your salary remains<br />
constant at K100 then you have to borrow a K20 every<br />
month so that you can buy a bag of mealie meal.<br />
When you think about it,your K100 is not really a K100<br />
but an K80.It may look like a K100 physically but it is<br />
essentially an K80. This is because it can no longer buy<br />
goods worth K100 as before.You need extra money from<br />
elsewhere to help it purchase an item that was K100.<br />
It means your money has lost 20 percent(20%) of its value<br />
or power to buy the item you want.This is considering<br />
the fact that k20 is 20% of K100.<br />
THAT IS INFLATION.<br />
So your Mother,pastor,girlfriend,boyfriend or whoever<br />
means well for your money advises you to save so that<br />
you can buy a Chigayo (Maize Grinder) in Febuary.<br />
As of 24th October 2018,First National Bank offers 3%<br />
interest per month on savings amounts between K100<br />
to K249.<br />
So you approach a bank to open a Savings Account.If<br />
you decide to open a savings account with First National<br />
Bank that gives you 3% interest per month starting 1st<br />
<strong>January</strong>, it means at the end of the month you would get<br />
K103 on your K100 investment.<br />
If you think about it again,your K100 becomes K103.<br />
It grows by K3.But remember that your K100 is worth<br />
K80 due to inflation. Therefore your money is worth<br />
K83. By calculation it means the K3 gained from saving<br />
plus what your K100 is worth.<br />
21 24
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