Posted on 13 Aug 2024
The Zambian government has temporarily closed all three borders with the Democratic Republic of Congo (DRC), impacting a key copper export route.
Zambian trade minister Chipoka Mulenga announced the decision on Saturday after protests erupted in the neighbouring country following the Congolese government’s ban on Zambian imports of beer, soft drinks, and lime. The official said the move came as a measure to ensure the safety of truck drivers.
On Sunday, the Congolese trade ministry said talks had started between the governments of the two nations through video conference.
A meeting is also planned for Monday in Lubumbashi, the capital of the Haut-Katanga province in the DRC, Kallanish Power Materials notes from a statement from the Congolese government. While urging citizens to remain calm, the DRC's trade ministry also noted it had not received formal notice of a trade dispute from Zambia.
“The Ministry of Foreign Trade of the DRC wishes to state that there is no dispute brought to its attention to date in writing or through diplomatic channels,” the ministry said, according to ACP, the country’s national press agency. “It is willing, if necessary, to examine any request made by the Zambian party bound by the [trade] agreement, which also prohibits any retaliatory measure.”
The DRC is the world’s second-biggest copper producer, with almost all of its copper exported by road via Zambia. The border closure is likely to delay copper exports.
The move comes as analysts at Macquarie say the copper market has moved to surplus sooner than expected, with prices expected to average $9,000/tonne for the current quarter. The prices are anticipated to fall further to $8,000/t in 2026, before rising to $11,500/t by 2028.
Source:Kallanish Power Materials
