Maravi

(LUSAKATIMES) Unstable copper prices will delay Zambia’s economic recovery-Chibamba Kanyama

Unstable copper prices will delay Zambia’s economic recovery-Chibamba Kanyama
Wednesday, April 15, 2009

A local economist has observed that the Zambian economy will not recover quickly from the prevailing global economic meltdown because of the unstable and lower price of copper on international market.

Mr. Chibamba Kanyama said unless Zambia focuses on its internally generated recovery efforts such as local manufacturers, which can exploit the current Kwacha depreciation to compete against foreign imports.

Mr. Kanyama, who is also Zambian Breweries Corporate Affairs Director, told ZANIS in Lusaka today Zambian Breweries is one such company that has targeted the regional market, whose demand is still reasonably high.

He said the other avenues that could help the Zambian economy to recover would be depending on the performance of the motor industry that considerably consumes copper products, which is one of the major earners of foreign money for Zambia.

He predicted that the Zambian economy will recover after government has worked on its own economy with targets that are identified through increased investments which could attract Zambian consumers.

Mr. Kanyama however said companies such as general motors are under-going intensive restructuring programmes owing to challenges of bankruptcy.

He further explained that economic recovery may not be done in one year because the price of copper on the global market is still dampened by speculators believed to be from china.

He said the recovery of the Zambian economy cannot be compared to developed nations because the appearance of marginal economic recovery in countries such as the United States was only a signal that the current global recession will be contained in the near future.

Mr. Kanyama however said the reverse of a turn around takes several years to positively affect poor economies.

He pointed out that the seemingly glimmer of hope of recovery in the US is too minimal to translate into global economic recovery, adding that this is only seen in some price rises for certain stocks.

ZANIS/VP/KSH/ENDS

Labels: CHIBAMBA KANYAMA, COPPER

posted by MrK @ 4:52 PM