Economist Esther Banda has cautioned that despite the reported increase in copper export earnings, the overall economy has not seen significant improvement due to the mining sector’s underutilization.
According to the Zamstats report, copper export earnings rose from 15.7 percent in May to 19.2 percent in June 2024, representing a 22.6 percent increase.
Speaking in an exclusive interview with the Zambian Business Times (ZBT), Banda emphasized the urgent need for strict policies to ensure that the country benefits fully from its mineral resources.
She expressed concern that the increase in export earnings does not translate into tangible benefits for the economy, as the full potential of the mining sector remains untapped.
Banda called for a concerted effort to compel investors to remit the required revenue into the country, stressing the importance of seeing through policies that are intended for the country’s good.
She highlighted the abundant resources of the country and emphasized the need for policies that support the effective utilization of the mining sector.
She underlined the pivotal role of the mining sector in the country’s economy and urged against distraction or a shift in focus to other sectors.
Banda suggested that while agriculture and tourism are important, they should support the mining sector and not divert attention from fully utilizing the country’s mineral wealth.
She stressed the importance of ensuring that policies designed to benefit the country are implemented effectively, especially in a country that is one of the largest producers of copper but has experienced challenges in meeting Euro Bond payments.
“We need to make sure that the balance of payment is not just on paper, it’s unfortunate that we have never had a politician that has compelled the investors to remit the required revenue into the Country, but we have every right and mandate to see that the export earnings are generated and are useful to the economy,” she said.
“When certain policies are being pronounced they are for the good of the Country, we cannot be a Country that is one of the largest Producers of Copper but yet be the first to default a Euro Bond payment, whether it was as a result of Covid 19 or not but what am saying is that some of these policies should be seen through until the end of implementation,” she said.
Banda emphasized that the Mining Sector is pivotal to the Country’s Economy and there should not be any distractions or change of focus to other sectors like agriculture or tourism.
“These are just sectors that can support the mining sector because we have copper, we have many minerals, why then don’t we sit down and say how best can we utilize the mining sector, we can’t continue.
