Saturday, Sep 24, 2022
International Finance
Economy Featured

Global Copper price surge to boost Zambian economy

Zamibia_IF_Image
The Democratic Republic of Congo is the largest producer of copper in Africa followed by Zambia

The Zambian economy is expected to be bolstered by the fresh global copper price surge as it was walloped by the pandemic and draught. It is reported that the price of Copper has surged unexpectedly, having already gained 2,42 percent for the year.

RMB experts told the media, “Such moves would greatly benefit environments like Zambia that need to beef up their reserve base as part of their economic recovery plan targets. Our current analysis suggests that an increased stake in the mine would enable the Zambian government to benefit from higher dividend pay-outs in future.”

The Democratic Republic of Congo is the largest producer of copper in Africa and Zambia ranks second in the list. The country produced more than 646 000 tonnes of metal in the first nine months of 2020 compared to 590,321 tonnes in the same period the year earlier.

Most of the African economies see Copper as an important tool towards economic boost and 80 percent of the exports are covered by Copper. Zambia Consolidated Copper Mines, earlier, acquired 73 percent stake of Glencore in Mopani Copper Mines.

The country faced challenges towards mine nationalisation, which slumped the treasury and witnessed production plummet.

The country has been the key agricultural producer for Southern Africa and Delta Drone International’s local unit Rocketfarm is planning to expand its presence in Zambia through a project for Syngenta, an agricultural company. Zambia’s 19 percent GDP is contributed from agriculture, employing three quarters of the population.

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