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The International Energy Agency (IEA) has projected a 30 percent global copper supply deficit by 2035, a trend expected to push prices higher and benefit copper-producing nations like Zambia.
According to a daily market update from Access Bank Group, the global transition from fossil fuels is driving demand for copper, a critical component in electrification.
In response, Zambia has set ambitious targets to quadruple its annual copper production to three million tonnes by 2031.
“Efforts include the first comprehensive geological survey since 1972, attracting investment in mining infrastructure, and expanding domestic refining—currently processing just 20 percent of Zambia’s copper,” the update stated.
It indicated that: “With these initiatives, Zambia is positioning itself to reclaim its status as a major global copper producer.”
However, the report also highlighted challenges facing the Zambian economy, particularly the depreciating Kwacha.
The local currency, trading near K28.5000 per US dollar, has weakened by approximately 23 percent year-over-year due to constrained market liquidity.
Severe droughts have further compounded economic pressures by disrupting hydropower generation, which supplies 85 percent of Zambia’s electricity.
The mining sector—responsible for over 70 percent of the country’s foreign exchange earnings—has been particularly affected, leading to reduced dollar inflows and sustained pressure on the currency.
Trade balance data underscores these difficulties, with a January deficit of K0.3 billion—a sharp contrast to surpluses of around K10 billion in 2021.
Despite these short-term headwinds, the report maintained that Zambia’s long-term outlook remained promising, driven by its strategic focus on copper production and mining sector reforms.
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