• Zambian Copper should be sold for Zambian Kwacha.
• Those that want to buy should come and exchange their Forex in Zambian banks.
• Ensure that there is full participation of Zambian businesses in the mining sector.
An Economist says the only Zambia can benefit from high Copper prices on the international market is by ensuring that the country becomes the primary banking sector for the mining sector.
Lubinda Habazooka told Money FM News in an interview that this can be done by seeing to it that the country’s Copper is sold for Zambian Kwacha, so that all those that want to buy the commodity should come and exchange their Foreign Exchange (FOREX) in local banks and buy Kwacha to go and buy the Copper.
Dr. Habazooka stated that doing so will provide Forex liquidity for the Zambian economy, and reduce inflation rate as well as fuel prices and other commodities that the country imports.
“What needs to be happening is that Zambian Copper should be sold for Zambian Kwacha, all those that want to buy should come and exchange their Forex in Zambian banks here and buy kwacha to go and buy the Copper.”
“That way we are going to provide Forex liquidity for the Zambian economy and the performance of the Zambia Kwacha is going to show in reduced inflation, reduced fuel prices and other commodities that we import in this country,” Dr. Habazooka said.
He also stressed the need to ensure that there is full participation of Zambian businesses in the mining sector so that national wealth and income remains in the country.
“The other thing is to bring in tight measures to ensure that there are no leakages, transfer pricing by the sector and also to ensure that there is full participation of Zambian businesses in the mining sector so that national wealth and income remains in the republic,” he added.
Copper prices on the international market are currently trading at near record levels of around $10,265 a tonne.
