The trade volume has started to rebound with the Zambian economy posting an increase in cumulative trade volumes by about 83% in 2021 compared to 2020. This signals that the economy is slowly starting to rebound.
The cumulative total trade volumes recorded for the period January 2021 to April 2021 was K114.4 billion while the total trade volumes recorded in 2020 for the same period was K62.5 billion indicating an 83% increase
Despite the Covid 19 pandemic, Zambia has recorded another consecutive trade surplus of K10.2 billion in April 2021 compared to a trade surplus of K7.4 billion in March 2021, posting a 38% increase which had been attributed to an increase in exports.
Exports mainly comprising domestically produced goods, increased by about 17% to K22 billion in April 2021 from K19 billion in March 2021. The increase is mainly on account of a 23% increase in earnings from Copper which has seen better international prices.
Zambia Statistics Agency interim statistician General Mulenga Musepa stated during the monthly bulleting presentation on Thursday 25 March 2021 attended by the Zambian Business Times – ZBT that imports also increased by about 4% to K12 billion in April 2021 from K11 billion in March 2021.
He said refined copper export earnings in April 2021 increased by 25.4 percent to K17.2 billion from K14.1 billion in march 2021. “The cumulative total trade recorded for the period January 2021 to April 2021 was K114.4 billion while the total trade recorded in 2020 for the same period was K62.5 billion indicating an 83.2 percent increase.
“Refined copper export volumes in April 2021 increased by 17.2 percent to 86,118 metric tons in March 2021,” Musepa said.
He said the volume of refined copper exported for the period January to April 2021 was 314.2 thousand tons while that of 2020 for the same period was 280.5 thousand tons representing a 12.0 percent increase.
Musepa further said that even Traditional Exports (TE’s) earnings (non copper exports) increased by 24.0 percent to K17.7 billion in April 2021 from K14.2 billion in March 2021. However, the share in total exports, TEs accounted for 81.2% of export earnings in April 2021, buttressing the need for continuing with the diversification drive.
The major export destination in April 2021 was Switzerland (Booking Centre for Copper exports), which accounted for 44% of the total export earnings while Singapore (also mostly for copper export buying Centre) was the second main export destination accounting for 17.6 percent of the total export earnings with the major export product being copper anodes.
China was the third main destination of Zambia’s exports accounting for 17.6 percent and Congo DR was the fourth main export destination accounting for 8.4 percent of the total export earnings.
Luxembourg was the fifth main export destination accounting for 2.2 percent of the total export earnings. These five countries collectively accounted for 90.1 percent of Zambia’s total export earnings in March, 2021, another indicator for the need for export diversification to reduce the concentration risk on copper.
The rebound of trade volumes and consecutive trade surpluses is supposed to result in more forex earnings for Zambia but complications with remitting back export earnings remain a challenge. The exchange rate is also supposed to be favorably impacted but it is yet to be seen if the effect is lagged.
