(Ecofin Agency) - Zambia’s foreign exchange revenues could increase in 2017 as the price of copper rose at the end of 2016. The increase occurred after U.S incoming President, Donald Trump, announced the construction of various infrastructures in his country. Another factor behind the increase is the significant surge in Chinese demand which represents about half of world’s demand.

In this context, analysts’ forecasts are very optimistic. U.S investment bank Goldman Sachs said a ton of copper will go for $6,200. Molly Shut, Analyst at BMI Research, even advanced that copper’s global market will be in deficit by 2019.

Operation-wise, giants of the sector also share this optimism. Andrew Cole, Chief Analyst at Metal Bulletin Research said many investors were building treasury to acquire mining assets.

BHP Billiton, world’s second largest, listed, copper producer, stated in its annual report that it plans to increase its exploration expenditures by 29% in 2017, and invest hundreds of millions to find copper and oil deposits.

If the projections came true, Zambia could achieve balance in its public accounts. The nation indeed truly suffered the slump in the price of copper from which it gets almost 70% of its foreign exchange revenues. Turnovers of other sectors slumped due to a monetary crisis which weakened the Kwacha. On the capitals market, the Lusaka Securities Exchange’s major index was the worst of all African stock exchanges.

However, the Central Bank of Zambia, in its latest report on monetary policy, provided a positive mid-term outlook explaining its stance by an increase of mineral resources, import stability and lower inflation pressure. Nevertheless, it maintained its intervention rates at 15.5% and allows commercial banks to easily access its refinancing services.

Idriss Linge