Capital Equipment News October 2017

BUSINESS

Meshach Kwegyir- Aggrey, GM for Cummins Zambia.

Cummins Zambia’s operations are predominantly focused on supporting its engines working in the mining sector.

ENABLING ZAMBIAN GROWTH

employment, both directly and indirectly, and constitutes 62% of foreign direct investment. Apart from lower commodity prices, slower regional and global growth had a fair share of Zambia’s economic demise, while power outages that intensified from mid-2015 to the end of 2016, impacted all sectors of the economy. But, it is encouraging to see that economic conditions in Zambia have improved since the turn of 2017, and the World Bank projects an improved growth rate of 4% in 2017. This follows improving copper prices, high rainfall in the 2016/17 agricultural season that has improved agricultural output and accelerated the replenishment of hydro- electric reservoirs, considering that Zambia is 95% dependent on hydro. According to the African Development Bank, new mining activities initiated in 2016 led to an increase in total copper production by 8,4%. Maize output increased by 9,7% to 2,9 million tonnes. Economic performance is expected to improve in the medium term. Copper output is projected to increase by 16% in 2017 and by 8% in 2018. The projections also

On the back of improving economic conditions in Zambia, largely premised on rebounding copper prices, Cummins Southern Africa reports increased business activity in the country. As part of its plans to accelerate business growth, the engine maker has ploughed a sizeable investment in the relocation of its head office from Chingola to Kitwe, a move which places it right in the middle of the Copperbelt to better support its large mining customer base in the region, bearing in mind that mining constitutes up to 90% of Cummins Zambia’s business, writes Munesu Shoko .

T he Zambian economy came under severe strain in 2015 and 2016 as external headwinds and domestic pressures intensified. According to the World Bank, gross domestic product (GDP) grew at 2,8% in 2015 and 3,3% in 2016, much slower than the average 7,4% between 2004 and 2014. This was largely due to lower global copper prices, bearing in mind that mining accounts for 12% of Zambia’s GDP and 70% of total export value. The sector is also a significant source of government revenue and formal

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