Zambia's net export profit falls due to higher producer costs

Zambia's net export profit has fallen because of increased competition of imports, similar products and higher producer costs, Zambia Daily Mail reported Tuesday.

A quarterly survey of business opinion and expectations conducted last quarter of 2005 by Bank of Zambia shows that the profit of the 39.2 percent of the respondents reduced last year.

The survey by the central bank indicates that 36.9 percent of those maintained their net profit while 23.3 percent reported an improvement.

The survey on the manufacturing, trading, services, tourism, agricultural and construction sectors says the net percent is negative at 15.9 percent although this reduced from 25 percent in 2004.

According to the survey, firms continue to use their retained earnings as a major source of finance for investment, working capital and borrowing for long term investment.

The business community expects to increase output during the first quarter of this year due to improved economic conditions and expectations for higher demand.

Of all the respondents, 35.3 percent indicate that there will be an increase of production of goods and services while 41.4 percent are expected to maintain their current output.

The survey indicates that 19.8 percent of those interviewed said they will produce less.

On domestic sales, the survey says that most of the companies expect marginal increase in domestic sale while exports will decline during the first quarter of 2006.

Source: Xinhua