By CHARITY MOONGA –

GOVERNMENT has enhanced the expansion of regional trade to cover up for the trade deficit Zambia has experienced in the last six months due to the drop in Copper prices on the world market.
Commerce, Trade and Industry acting director of foreign trade Lillian Bwalya said Zambia was now expanding trade at regional level to ensure a trade surplus.
Ms Bwalya said Europe had been Zambia’s major source of trade in imports and exports and that prices of Copper on the market have reduced hence affecting trade in the country.
She said currently Zambia was looking to enhanced trade with regional countries.
The Democratic Republic of Congo (DRC) had continued to be the major regional market for Zambia and Government was now looking to trade with other regional countries.
Ms Bwalya was speaking at the British Chamber of Commerce trade discussion in Lusaka last Friday.
“In the Southern Africa Development Community (SADC), the DRC accounts for the largest importer of largely minerals from Zambia accounting for 24 per cent of the total imports. It is followed by South Africa at 23 per cent, then Mauritius and Zimbabwe,” she said.
She said copper had continued to dominate Zambia’s exports and DRC imports of the product and other minerals had made that country become the major export destination for Zambia.
Apart from the DRC, Zambia had also enhanced trade exports with South Africa, Mauritius and Zimbabwe.
She attributed the trade deficit Zambia was facing to what was happening on the external market.
“As you may know, Europe has been our major source in terms of imports and exports so the prices of Copper on the market had reduced hence affecting our economy,” she said.
She explained that as long as Copper prices on the world market continued to fluctuate, the situation of trade in Zambia would continue changing.
“When inflation was higher, Zambia recorded a trade surplus but now inflation is at 7.1 per cent, we are recording a deficit. Issues that influence trade balance are affected by the external situation so the situation will continue changing according to the external market forces,” she said.