Zambia expects mining to boost economic growth

Economic growth in Zambia is expected to accelerate to 6.4% next year from 5.8% this year, driven by its mining and agriculture sectors, the finance ministry said.

The Southern African country's economy is recovering from a severe regional drought, which curbed growth last year after years of protracted debt-restructuring negotiations.

The finance ministry's medium-term budget plan projected gross domestic product would rise 6.5% in 2027 and 5.1% in 2028.

The government said it would focus on increasing electricity supply from power sources like solar, given the severe impact the drought had on hydropower generation and productivity in major industries.

Copper production

Production of key export copper is projected to be just over 1 million metric tonnes next year, 1.2 million metric tons in 2027 and more than 1.3 million tons in 2028, the budget plan said.

President Hakainde Hichilema's government has been trying to lift copper output and is aiming for close to 1 million tonnes this year after strong first-quarter production.

First Quantum Minerals recently completed a $1.25 billion expansion project at its Kansanshi copper mine and Enterprise nickel operations.

Barrick Mining Corp is also carrying out a $2 billion plan to double output from its Lumwana copper mine and extend its life to 2057.