However, depending solely on copper as the country's main export product is risky as the mining products are prone to volume and price changes. This implies that depending on copper for export may on one hand lead to an increase in the GDP and on the other hand may lead to an unstable macro economy. It has been observed that the exchange rates have had a negative impact on the growth of the economy.
This negative impact can be attributed to the variations in the foreign exchange market. Hence, there is a strong relationship between exchange rates and Zambia export.
As Zambia largely banks on foreign trade and is a developing nation, it has to compete with other developing nations for a sustained growth in the economy. It is also important to recognize the long term objectives for enhancing a healthy relationship between export and economic growth.
Products of Zambia export and trading partners:Zambia exports commodities in two categories, traditional and non traditional. Traditional export commodities comprise lead, zinc, copper, cobalt. The non traditional category includes gemstones, vegetables, fresh fruits. Zambia exports goods to Democratic republic of Congo, South Africa, Tanzania, United Kingdom, Zimbabwe, Switzerland.
Government taxes and export taxes:Government taxes and export taxes are not imposed for Zambia export products. However, export of few products like gemstones and minerals attract taxes.
Export regulation:Export of grain is governed by regulation imposed by Ministry of Agriculture Food and Fisheries. This is mainly a seasonal regulation and is imposed only when conditions of drought prevail in the country. The ministry takes this measure to counteract shortage of grain in the local market.
Zambia export product consisting of gemstones are inspected and evaluated by Ministry of Mines and Minerals Development. Once the evaluation and inspection of the gemstones are done, a valid permit is issued by the ministry.