Zambia's 2004 Economic Growth Rises as Copper Price Surges
By Anthony Mukwita and Mike Cohen
Jan. 14 (Bloomberg) -- Zambia's economic growth beat
forecasts last year as a global surge in copper prices boosted
exports, Zambian President Levy Mwanawasa said.
The economy of Africa's largest copper-mining nation grew
4.6 percent last year, compared with the government forecast of
3.5 percent, as strong Chinese demand boosted global copper
prices 37 percent.
``The economic growth the country achieved can be directly
attributed to the good performance in the agriculture sector and
good prices of metals on the international market, including
improved copper production,'' Mwanawasa said in a speech to
parliament today.
Copper and cobalt account for more than 80 percent of the
export income of Zambia, one of the world's poorest nations. The
southern African nation vies with neighboring Democratic
Republic of Congo and Russia as the top miners of cobalt in the
world.
Zambian output of copper, used in power cables and
electrical wiring, grew to 400,000 tons last year and Mwanawasa
said it will jump 88 percent more this year. Companies such as
Canada's First Quantum Minerals Ltd. are to expand mines and
open new ones in Zambia this year.
``Zambia expects to produce a record 750,000 metric tones
of copper by the end of the year, a feat only achieved in
1975,'' Mwanawasa said.
Growth Plan
Zambia's government intends to boost economic growth to 8
percent and slow inflation to less than 15 percent, from 17.2
percent last year, to reduce the poverty that affects 80 percent
of the country's 11 million people, he said.
Finance Minister Ngandu Magande presents his budget Jan.
28. Last year the government denied wage increases to more than
100,000 state workers and increased income taxes for high wage
earners by 40 percent.
Mwanawasa said his government will start talks with three
Western donors this year to seek funding for its budget. Donors
currently only fund specific projects in Zambia, meaning the
government has little say in deciding which poverty reduction
programs are a priority, he said.
Copper for delivery in three months fell $11 to $2,990 a
ton on the London Metal Exchange as of 11:35 a.m.
--With reporting by Vernon Wessels in Johannesburg. Editor: A.
Brown
Story illustration: To graph New York copper prices over the
Past year, see {HG1 <Cmdty> GPO D <GO>}. For a series of
Screens related to copper, click on {CNP 04676240102 <GO>}.
Press the space bar to pause on a screen, and hit the {<GO>}
key to resume the slide show.
To contact the reporter on this story:
Mike Cohen in Cape Town (27) (82) 454 962 or
Mcohen21@bloomberg.net |
