26 February 2013

Zambia: Mines GDP Contribution to Hit $1 Billion in 2015

ZAMBIA's mining contribution to the Gross Domestic Product (GDP) is projected to grow to US$1.35 billion by the year 2015, due to increased mining activities.

According to the Zambia Extractive Industry Transparency Initiative (EITI), reconciliation report, contribution to GDP was expected to grow from $590 million in 2010 to $1.35 billion in 2015.

Last week, the Government launched the EITI third report based on the 2010 financial year, which showed that mining revenue was up to KR3.787 billion as compared to KR2.572 billion in 2009.

The report said the mining sector was a crucial part of the Zambian economy, with direct contribution being approximately 11 per cent in 2010.

The report said in 2010, the mining and quarrying sector accounted for 9.9 per cent of Zambia's real gross domestic product (GDP) compared with a revised 9.3 per cent in 2009.

"The country's real GDP increased by 7.6 per cent in 2010, mining and quarry accounted for 18 per cent of the increase," the report said.

It was highlighted in the report that copper exports accounted for 78 per cent of Zambia's exports in 2010 which amounted to about US$5.8 billion.

The value of cobalt exports was estimated to be US$304 million which accounted for four per cent of Zambia's exports, while imports of oil stood at about US$618 million in the period under review.

On the global front, Zambia continues to be a significant producer and also a major resource of both copper and cobalt.

The report said in 2010, Zambia was ranked as the 7th largest producer of copper in the world.

Further, the Business Monitor International had projected that Zambia's copper production would reach 1.3 million tonnes in 2015, which would likely place it among the top five copper producers in the world.

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