NTEs Earnings Grow

Source from:  The Post (Lusaka) December 5, 2005 Kingsley Kaswende 12/08/2005

NON-traditional exports (NTEs) earnings for January to September 2005 have grown by 25 per cent compared to the corresponding period last year. However, the real gains from the export earnings have been diluted by the appreciating kwacha. Export Board of Zambia (EBZ) executive director Glyne Michelo said NTE earnings were pegged at US $425.5 million, up from US $341.5 million during the same period last year. Michelo said the highest earnings were from engineering products, which accounted for US $113.9 million followed by primary agricultural products with US $112.2 million and processed and refined foods with US $60.8 million. The leading products included copper rods and cables, sugar, tobacco cotton lint and yarn, fresh flowers and fresh vegetables. He attributed the growth in copper rods and wire exports to the expansion of the ZAMEFA production capacity through acquisition of former Sable Combine equipment, which increased copper rod production capacity by 100 per cent, coupled with ready market in South Africa. Michelo said Sugar exports increased due to the extra quota allocated to Zambia by the EU under the preferential access arrangement for ACP states resulted in increased exports by Zambia Sugar during the first two months of 2005 and in May. With regard to cotton, Michelo said the onset of the 2004/5 ginning and marketing season for cotton and increased number of players in the industry caused export earnings to recover from the decline experienced in the first six months of the year, attaining a 13 per cent increase during the period under review, up from eight per cent in the first seven months. South Africa, as usual, continued to be the largest market for NTEs, followed by Congo DR, Malawi, Portugal, UK and the Netherlands. However, many exporters have expressed concern that their real earnings will be reversed by the appreciation of the Kwacha. Some experts have estimated that NTE exporters could lose up to K300 billion following the appreciation of the Kwacha by over 30 per cent this year. Enditem