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Alba Iulia
Tuesday, December 1, 2020

Zambia’s trade surplus to reach $1.2 billion

Economy Zambia’s trade surplus to reach $1.2 billion

Commerce, Trade and Industry Minister Felix Mutati has said Zambia’s trade surplus is this year expected to reach over US$1.2billion

The country last year recorded a trade surplus of US$1,178.4 million from US$34.6 million 2005.

“Zambia’s trade surplus will this year hit over US$1.2 billion,” Mr Mutati said in an interview in Lusaka

Mr Mutati said the growth would be fuelled by the favourable macroeconomic environment which has seen the local economy strengthening, with lower inflation rates and real gross domestic growth projected at seven per cent.

He said the increase in copper production, which was expected to reach more than 600, 000 tonnes this year compared to 500,000 last year coupled with increasing production in the non-tradition export category, would drive the growth.

Last year’s, Zambia trade surplus was because of increased merchandise exports earnings.

This was on account of an increase in the international price of copper to record levels coupled with the buoyant growth in copper exports volumes.

And Mr Mutati said the weak infrastructural capacity in the country was hindering further growth in the country’s economy.

He said currently the available infrastructure had not marched with the continued pressure put on it by the country’s growing economy.

“Obviously, the area of infrastructure needs to be looked at.

Infrastructure, telecommunication, transport, electricity hasn’t improved to march the economic growth,” he added.

4 COMMENTS

  1. Despite a 7% economic growth and lower inflation rates,we are still not having real investor’s in the country.
    Zambia has the potential to develop,but it is about time our leader’s knew that political stability is very important in the improvement of the economy and people’s live’s.
    The infrastructure since Welensky left it,it is still in the same state.Why are our leaders so greedy and mean?
    We need leaders with a Vision who are in line with the happening’s in the world,economically,technologicaly, socially and politically. Not leaders who just want to see how others presidents dress and have tea and coffee and dream about a united africa.
    If Zambia was not in africa,with these statistics,we would have seen an overflow of real investors.

  2. Ye!! Lets celebrate!! It is a trade surplus, BUT whose pockets is it going into?? Do you also mind telling us how much the “True GPD” is? By “true GPD” I mean money directly spent on the ordinary zambians, on services such as Health; Education; provision of clean water; Road construction & maintenance. Thus not the GPD calculated by simply dividing the income by population!

    We still haven’t been told whether mineral & royalties as well as the corporate taxes have been revised. As for now such news ought really to be received with the pinch of salt it deserves. We have had too much political upstanding about how the economy is improving – on paper, as far as ordinary souls are concerned – the unanswered question is – DO WE HAVE COMPETENT ENOUGH INDIVIDUALS WHO CAN TURN THESE GAINS INTO SOME PALPABLE REALITY FOR THE MAN IN THE STREET???????!!!!!!!!!

  3. Some positive indications for our economy in the short term. And definitely a good political story for govt.
    Here are my concerns though:
    1) Again we see that the trade surplus is precipitated largely by favourable global commodity prices. In the past (1970s-80s) our major policy lesson has been that these are not sustainable factors to underpin economic growth let alone poverty reduction in the long term.

    2) We probably would derive more comfort from a simultaneous boost in non-commodity manufactured exports to drive our trade balances. Which points to the critical role of infrastructure, human capital and a competitive excahnge rate policy as mentioned above.

    The increase in profitability of domestic manufacturing has been the major drive in China and other emerging markets. A spike in commodity prices rarely gives a sustained trade surplus especially if we still have import growth out-pacing economic output.

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