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.”