Zambia is at the forefront of African countries that are suffering from the downturn in globally traded metal prices over the past few years. Government finances are under immense stress as revenue flows have contracted and international financing options have become much more limited and more costly. Severe drought conditions, chronic electricity shortages and the fast approaching August presidential and legislative elections are adding to the...

The mining sectors in Zambia and DR Congo have taken a severe hit following the decision of the international mining company Glencore to suspend its mining operations at its Mopani Copper Mines venture in Zambia and Katanga Mining venture in DR Congo for 18 months starting September 2015. Miners in both countries face regulatory uncertainty, high production costs and prices which have fallen considerably over the past twelve months in response...

The Zambian economy has been expanding at a rapid pace in recent years, but is facing uncertain times in 2015. Global copper prices fell sharply in December and January, and in March were trading around 20% below the levels achieved a year earlier. Copper exports are by far the single largest contributor to export earnings in Zambia (typically accounting for around 70% of total merchandise exports) and the fall in copper prices is undermining...

Zambia is by far Africa’s largest copper producer and has benefited greatly from rising output and historically high global copper prices over the past five years. According to the Zambia Development Agency (ZDA), copper production increased from 570,000 tonnes in 2008 to over 800,000 tonnes in 2012. Most recently, copper production rose by a further 20% in 2013 as new mining projects financed by international mining companies came on line. The...

Zambia has introduced a number of controls on money flowing across its borders in an attempt to reduce tax losses. Currently, the Zambian government estimates that it loses around US$ 2 billion in taxes every year as a result of tax avoidance and transfer pricing by foreign firms. The government has taken tentative steps to reduce these losses by implementing stricter monitoring of financial flows and requiring greater justification by firms...