By Fridah Chalwe
Economist Kelvin Chisanga has attributed the recent 130 percent surge in cobalt prices to a supply-driven shock, largely caused by policy and regulatory constraints in major producing countries.
Mr. Chisanga says the price rally is expected to be short-lived, as global demand growth slows due to a shift toward battery technologies that use less cobalt.
He notes that Zambia stands to benefit in the short term through improved mine profitability, increased employment, higher investment in the copper sector, stronger export earnings and improved foreign-exchange inflows, which could help support kwacha stability.
However, the economist has urged caution, saying the price gains present a temporary opportunity for Zambia to strengthen its role in regional critical mineral supply chains.
He has advised government to use the moment to build fiscal buffers, sustain investor confidence and accelerate economic diversification, rather than relying on volatile commodity prices.
