Melu sees growth opportunity in copper, advises caution on market fluctuations

Absa Bank Zambia Managing Director, Mizinga Melu, says Zambia’s economy is showing signs of resilience and promise, buoyed by an expected mining boom.

Speaking during an economic review in Kitwe on Wednesday, Melu said despite global economic turbulence, Zambia had ended the previous year with a strong GDP growth of 4 percent — a significant rebound compared to the International Monetary Fund (IMF)’s earlier downgrade to 1.2 percent.

“With us now in April, there is a need to start evaluating how businesses can end the year on a strong footing, taking into account regional and global market shifts,” she said.

Melu identified several global risks businesses must monitor, including the ongoing war in Gaza and volatility in international markets.

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She emphasized that businesses should consider using hedging instruments to protect against currency and commodity price fluctuations.

Melu noted that inflation and the monetary policy rate were on the rise, while yields were beginning to decline steadily.

She predicted the Kwacha would trade between K27 and K29 against the US dollar in the short to medium term.

“There’s need for us, as a bank, to support our clients in navigating these developments. Hedging can help reduce exposure to adverse market conditions,” Melu added.

She also pointed to Zambia’s strong copper production figures, with 820,000 tonnes produced in 2024 and a target of 1.1 million tonnes set for 2025. She said this reinforced optimism about the country’s economic outlook.

Despite the ongoing power crisis, Melu said the emergence of independent power producers presented new business opportunities.

She further noted the importance of monitoring how the conclusion of the IMF-supported programme would impact the markets.

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