Melo Media, Wednesday, 15th November, 2023
The decline in copper prices on the international market is a cause for concern, according to economist Highvie Hamududu. This downward trend is expected to have a negative impact on Zambia’s export revenue.
The falling copper prices on the international market pose a risk to Zambia’s export revenue. In September, copper prices averaged US$8,277 per ton, a decrease of 0.9 percent from the previous month. Furthermore, copper traded at US$8,213 per metric ton in September, showing a 2.3 percent decline compared to the previous month. Currently, copper prices are at US$8,167 per metric ton, indicating a continuing downward trend. This decline in prices could have a significant impact on Zambia’s export earnings from copper.
The decline in copper prices on the international market poses a risk to Zambia’s export revenue. This, combined with the decrease in copper production over time, is expected to have an impact on the country’s currency and put additional pressure on the exchange rate. It is worth noting that 70 percent of Zambia’s foreign exchange is derived from copper exports.
As copper prices continue to fall on the international market, Zambia’s export revenue is at risk. In response to this economic challenge, there have been calls for the government to implement strict expenditure austerity measures. This is necessary to ensure that the country’s expenditure aligns with its revenue capacity, especially considering the uncertain outlook for the economy in the near future.