Zambia’s trade performance worries CTPD

The Centre for Trade Policy and Development (CTPD) has noted with concern Zambia’s trade performance in the first quarter of 2015.

CTPD Executive Director Isabel Mukelabai in a statement says the March trade deficit of K310 million implies an increase in the deficit by K202.7 million, an increase almost double the February 2015 deficit which stood at K107.3 million.

Ms Mukelabai says key to this picture are the challenges the country experienced in the Mining sector which affected downwards production volumes of copper than initially projected.

She further observes that imports continued to outstrip total exports during the first quarter of 2015 and this should serve as a wakeup call to the Zambian Government on the need to accelerate diversification of the economy away from trade in metal exports which comprise mainly copper accounting for 66 percent in export earnings while non-traditional exports account for about 34 percent.

She says the current high dependence on copper exports makes the country vulnerable in terms of its macro-economic stability particularly when copper prices on the international market go down and when the sector on the domestic front experiences serious governance and management challenges.

Ms Mukelabai notes that the current trade deficits recorded in February and March are in part attributable to the slow-down in production and operations of the mining industry in the last three months.

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