AN Economic Analyst Yusuf Dodia says a rise in copper prices is good news for a commodity-driven country like Zambia as there will be more foreign currency.
Mr Dodia said more foreign exchange will translate into an appreciation of the Kwacha when it makes imports cheaper, thereby, translating into lower overall prices.
Mr Dodia told ZANIS in an interview that the increase in copper prices will also generate resources that will help to service the debt crisis the country is facing and replicate in capital infrastructure development.
“Copper prices have now reached high levels of around US$8000 a ton ,that means the mining industry in 2021 is likely to export million tons of copper representing US$ 8 billion of export earnings,” Mr Dodia explained.
Mr Dodia stressed that export earnings will be a mechanism for the Government to collect enough taxes from tax payers that will help to finance the 2021 budget.
And Lubinda Habazooka, president of the Economics Association of Zambia (EAZ) said the increase of copper prices on the London Metal exchange is sweat for Zambia.
“Mines are going to scale up productions that can translate into further jobs being created,” Mr Habazooka. Copper which is Zambia’s main source of export revenue rose to US$8, 169 a ton on the LME hitting its highest level last recorded in February 2013.