By MAIMBOLWA MULIKELELA –

ZAMBIA’s economic fundamentals have remained strong despite the recent depreciation of the local currency due to its healthy Gross Domestic Product (GDP) and Government’s commitment to development path.
Stanbic Bank head of corporate and investment banking Helen Lubamba said Zambia’s economic prospects remained bright despite the impact the strengthening of the United State (US) dollar and economy on the local currency.
Ms Lubamba said in Lusaka that the key issues providing a positive economic outlook included the cyclical nature of the mining industry where long term supply and demand fundamentals for copper remained positive.
“In the sector, we have seen the Zambia Revenue Authority (ZRA) address the Value Added Tax (VAT) Rule number 18 where we are positive a favourable outlook will be achieved for the benefit of the economy,” she said.
She said within the mining sector, portfolio flows were evident and that investors and the Zambian Government would play an important role in attracting further Foreign Direct Investment (FDI) into the country.
The Zambian economy in the global context had been affected by the fall in copper prices triggered by falling prices on the international market.
“In recent weeks, the Kwacha’s depreciation has exceeded the South African Rand’s depreciation and this will likely add to inflationary pressure due to high import levels from South Africa,” she said.
Ms Lubamba said the Bank would this year focus on providing financial products and services aimed at supporting the Zambian economy.
She noted that the Bank was supporting various nation-building sectors including infrastructure, energy and agriculture.