DRC and Zambia Gain from Copper Price Boom as Global Demand Surges
Copper Prices Above $13,000 a Ton Deliver Economic Windfall for Congo and Zambia
The Democratic Republic of Congo and Zambia are benefiting from a sharp rally in global copper prices, providing both countries with a significant economic boost at a time of rising global demand for the metal.
Copper, a cornerstone of export earnings and government revenue for both nations, has surged nearly 50% since January 2025, surpassing US$13,000 per metric ton for the first time.
The price rally has been partly fuelled by concerns over potential United States tariffs on refined copper, which is widely used in electrical wiring and cabling. These concerns have triggered a rush to ship copper into the US, tightening supply in other regions.
The United States now holds approximately half of global copper inventories, according to UBS, significantly reducing the market’s ability to absorb supply shocks.
Analysts warn that inventories, which historically acted as a stabilising buffer, are now effectively locked away, increasing volatility and competition for available supply.
The Democratic Republic of Congo has emerged as the world’s second-largest copper producer after Chile, having tripled its output over the past decade following substantial investment in new and expanded mining projects. Zambia is aiming to replicate this trajectory, with plans to more than triple copper production by the early 2030s.
Market analysts believe the copper rally may have further momentum, driven by accelerating demand from renewable energy systems, power grids, electric vehicles and data centres.
At the same time, supply growth remains constrained due to underinvestment in new mines and periodic disruptions at existing operations.
Financial markets have already responded positively to the improved outlook. The Congolese franc has strengthened by nearly 28% against the US dollar over the past year, while Zambia’s kwacha has appreciated by about 26%.
In addition, yields on Zambia’s US dollar-denominated bonds have fallen to historic lows, reflecting improved investor confidence.
Despite the favourable conditions, analysts caution that strong governance and prudent fiscal management will be essential to ensure that the copper windfall translates into lasting economic benefits.
Both governments face the challenge of channelling increased revenues into development priorities that support inclusive growth and economic resilience.
With global demand expected to remain robust and copper prices elevated, the copper industries of Congo and Zambia are poised to remain central drivers of economic growth and key indicators of resource-led prosperity across the African continent.
Source:africabusinessinsider.com
