Zambia – a mine of opportunity

“A huge amount is happening, a lot of it based on the Copperbelt and expansion of the mining sector,” says Bonnett. “But there are also opportunities in nontraditional mining, the retail industry and tourism where Zambia is benefiting a lot from the problems in Zimbabwe’s tourism and agriculture sectors.” The Zambian economy, he says, is growing at 6.5 to 7% a year, with the mining sector expanding at the most rapid rate. This has resulted in Zambia assuming the number one export spot in Africa for South African companies in 2006. Exports rose by 45% to reach almost R8bn in 2006, reiterating the importance of mining-led growth in the country. Ironically one of problems in recent years has been debt relief. “It strengthened the Zambian kwacha to the point that Zambian products became uncompetitive on global markets and this impacted on the agro-industrial sector. “But on the up side it has allowed the government to expand its infrastructure development and social programmes which is good news.” In terms of trade balance there has been a narrowing of the trade deficit, with imports from Zambia doubling from 2004 to 2006. But this is not necessarily all positive, in Bonnett’s view. “We’re importing raw copper and cobalt which is then refined and processed here. For us to import raw materials and beneficiate them here is not good for the region long term.”