Copper Surge Signals Growth For Zambia’s Economy

A recent surge in global copper prices could signal growth for Zambia’s national economy, according to an expert.

Social economist and marketer Kelvin Chisanga has said stable growth in copper prices could support the programme of economic reform brought in by the new UPND government. In recent months, the metal’s price has jumped 3.3% to $9,507 per ton on the London Metal Exchange. 

“The expectations of having over three (3) million metric tonnes projections for copper’s output capacity or production in the next 10 years is such a welcome idea, given the circumstances that we have reduced some of the risk factors that the mining regime had quite experienced in the last 10 to 15 years where there were some seemingly aggressive policy inconsistencies since 2008, which may have been blamed on market fundamentals as well as policymakers,” he said.

He added, “The red metal (copper) commodity has shown some relatively good performances, as it jumped to 3.3% to settle at $9,507.50 a metric ton on the LME, and this is seen to show a biggest gain recorded so far in just two solid months, hopefully this will be trend to continue seeing going forward, we anticipate that the red metal’s stable prices can support Zambia’s economic fundamentals during the new government’s budget transition period, as it takes down to start stabilising within the course of first quarter of 2022.”

The economist lamented that Zambia had not benefited from a stable mine taxation system lately, withe tax legislation changing roughly 15 times over the past decade or so. He praised the new government for its bold approach in withholding VAT, import and export duty, as well as the mineral royalty tax, in order to allow the mining sector to recover from the market turmoil of the past few years. 

He concluded that, “It will be encouraging for government to remain quite resolute and steadfast to the negotiations of mineral royalties, with a view of ensuring that they don’t take negotiations further down given the circumstances that revenue from copper sales does not hit into our national treasury except for tax receipts and other related financial instruments.”