Zambia is now seeking an exemption from these tariffs, which come into effect on August 1, and cover steel and aluminium, potentially disrupting global supply chains and important regional infrastructure projects.

Kakenenwa Muyangwa, head of the Zambian Consolidated Copper Mines, expressed concern that the tariffs could undermine the Lobito corridor project, a railway development costing between $1 billion and $2.3 billion aimed at boosting export links for copper and cobalt between Zambia and Angola.

Tutani pointed out that although the US is the world’s second-largest consumer of copper, it only has about 3% of the global refining capacity. “The US does not produce enough copper domestically to meet its needs, so imposing high tariffs will lead to shortages and price increases internally while damaging countries like Zambia that export copper,” he said.

Chile and Peru, the largest copper producers worldwide, as well as Zambia, Africa’s second largest, are expected to face reduced demand from the US, which could negatively affect their export revenues. While Zambia is exploring alternative markets, Tutani noted that no other economy can match the size and purchasing power of the US.

Nevertheless, he highlighted an opportunity for Zambia, South Africa, and Zimbabwe to strengthen regional value chains by investing in the manufacture of electrical and railway equipment. Developing such industries could lessen dependence on volatile global markets and promote local economic growth.

The future viability of the Lobito corridor is at risk if US demand for Zambian copper drops significantly, potentially making the project economically unfeasible.

Despite Zambia’s efforts to obtain a tariff exemption, Tutani remains doubtful of success given the unpredictable nature of US trade policies and concerns about how African countries are treated.

--ChannelAfrica--