Zambian President Hakainde Hichilema is visiting China from September 10 to 16 at the invitation of Chinese counterpart Xi Jinping, marking a milestone in their relationship that dates back to Zambia's independence in 1964.
The talks focus on mutual benefit and aim to deepen the decades-long diplomatic ties between China and Zambia. This relationship is guided by good faith, sincerity, and fruitful cooperation across various areas, including trade.
Data from the Observatory of Economic Complexity highlights an upward trend in trade between the two nations over the last 26 years. China's exports to Zambia surged from $20.2 million in 1995 to $951 million in 2021, while Zambian exports to China increased from $1.73 million in 1995 to $2.26 billion in 2021.
In recent years, both countries have traded commodities such as coated flat-rolled iron, tractors, refined copper, raw copper, and raw tobacco. This trade has driven growth in both nations, even amidst challenges like the COVID-19 pandemic and the Russia-Ukraine conflict, which disrupted global supply chains.
Zambia's economy rebounded in 2021 with real GDP expanding by 4.6 percent from a 2.8 percent contraction in 2020. Trade with China played a major role in this growth, supported by robust copper prices and strong external demand from key trading partners, including China.
However, since 2022, Zambia has faced challenges in sectors such as agriculture, mining, and construction, slowing its post-pandemic recovery. Factors like increased import bills due to spillovers from the Russia-Ukraine conflict, falling copper prices, and reversed portfolio capital flows have led to the depreciation of the Kwacha and put pressure on official reserves.
President Hichilema's visit to China aims to enhance cooperation in areas like trade and investments, energy, infrastructure development, mining, and agriculture. This collaboration could help Zambia overcome current economic hurdles.
Zambia's recovery is projected to strengthen, with GDP expected to grow by 4.5 percent per year from 2023 to 2025. China is set to play an indispensable role in achieving this goal through robust copper demand, the establishment of fertilizer production plants, and supportive policy reforms across sectors such as agriculture, business, and energy. These efforts are anticipated to boost fiscal sustainability and expand private sector-led growth.
To support Zambia's objectives, Chinese enterprises in the country are exploring new models of cooperation with African counterparts, aiming to unlock growth potential by enhancing manufacturing and value addition capacities in key sectors, including agriculture.
Reference(s):
cgtn.com
