According to official government data for the […]

According to official government data for the month of June mining and quarrying had the largest share of the Gross Domestic Product in the first quarter of 2026 accounting for 14.8% of the total GDP. Financial expert Jones Sambaombe noted that mining and quarrying dominating GDP share by 14.8% reflects a clear picture that mining still remains the engine of Zambia’s economy.

Speaking in an interview with Zambian Business Times Sambaombe noted that the mining sector continues to generate foreign exchange, support government’s revenue through taxes and royalties and attracts foreign investments, and underpins the strength of the Kwacha. “The stronger performance of the mining sector is one of the reasons why Zambia has seen improvement in the country’s Gross international reserves and a relatively stable currency compared to previous years,” said Sambaombe.

However, Sambaombe noted that being dependent on the mining sector is both Zambia’s strength and greatest vulnerability as when copper prices on the international market weaken the country’s economy suffers.

“If copper prices on the international market are high, Zambia benefits but when copper demand weakness, the country’s economy can feel the effects through exports, government revenue, exchange rates and employment and that’s why the big strong is on whether mining is creating enough economic activity outside the mining gates He added that real national wealth is created when mining stimulates manufacturing and other economic sectors.

“The question is no longer on whether mining is important but rather on whether mining is creating enough economic activity outside the mining space, because real national wealth is created when mining stimulates manufacturing, engineering services, transport, agriculture, technology, local procurement and value addition for instance instead of exporting mainly raw copper, Zambia shoul continue expanding into processing, refinery and manufacturing finished products such as copper cables and many other components,” said Sambaombe.

Article by Justine Phiri