By Chris Mfula
LUSAKA, April 18 (Reuters) – Zambia faces strikes that could
slow is vital copper sector while investors are worried that
privatisation deals struck by the former president could be
reversed due to suspected corruption.
The government in Africa’s top copper producer, in place
since September, has angered its political foes with probes into
corruption and may find it difficult to push laws through
parliament in the face of an increasingly united opposition.
Investors were rattled by its move to double the royalties
it charges mining companies on base metals, while frequent power
shortages look set to worsen the problems facing the industry.
Erratic rains have delayed the planting of this year’s maize
crop, the country’s staple, raising the possibility of a poor
harvest and rising food prices.
Commercial maize production is expected to fall by about 80
percent in the 2011/2012 season compared with the previous
season as farmers turn to more lucrative crops.
Ratings agency Fitch in March downgraded Zambia’s outlook to
negative from stable, saying it was on the wrong path.
MMD SUSPENSION
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