Prospects for sustained growth of the Zambian economy over the long run are closely tied to the diversification of exports, says International monetary Fund's Zambia Country Report released this month.
The favorable performance of the Zambian economy in recent years has largely been driven by a rebound in copper sector output following the privatization of the main mining company in 2000, as well as the recent rise in world market prices for copper to historic highs, notes the report.
Nontraditional exports have also grown strongly but their contribution to export earnings is dwarfed by that of metals.
With mining output likely to slow over the next few years, following a period of rapid growth associated with the refurbishment of old mines and sustained investment in new ones, and the possibility that copper prices will retreat from current levels, Zambia's growth over the long run will need to be supported by the strengthening and diversification of nontraditional exports.
Among the nontraditional export sectors that have been identified as ripe for expansion are floriculture, horticulture, agro-processing, textiles and garments, gemstones, and tourism, contends the report.
Visit IMF Zambia Country Report March 2006.
International Monetary Fund
marketing@alchempro.com
