Moody’s Revises Zambia’s Economic Outlook from Stable to Positive, Citing Debt Reduction and Economic Growth
(Zambia Monitor) Moody’s Investors Service has upgraded Zambia’s economic outlook from stable to positive, while affirming the country’s long-term local and foreign currency issuer ratings at Caa2.
In its latest assessment, Moody’s cited expectations of a sustained decline in Zambia’s government debt burden, supported by stronger economic growth and continued fiscal consolidation.
The credit rating agency also pointed to a relatively stable exchange rate against the US dollar and reduced external vulnerabilities as factors influencing the improved outlook.
“Improved economic conditions, easing drought, growing external reserves, higher exports, and lower food and energy imports further reduce risks,” Moody’s noted.
While recent declines in copper prices pose challenges, the agency said they were not expected to trigger significant external stress. It added that ongoing fiscal reforms and official-sector support continue to enhance liquidity and improve debt dynamics.
Despite the positive outlook, Zambia’s Caa2 rating remains unchanged due to its still-high debt levels, ongoing liquidity challenges, and vulnerability to environmental and external shocks.
Finance Minister Urges European Investment
Finance and National Planning Minister Situmbeko Musokotwane, has urged European countries to invest in Zambia’s mining and energy sectors.
Speaking in Addis Ababa, Ethiopia, following his participation at the 10th Annual Delphi Economic Conference in Greece, Dr Musokotwane said Zambia is broadening its investment outreach to include countries such as Greece.
He said this is because Greece remains largely untapped in terms of investing in Zambia.
He noted that the Delphi Forum provided an opportunity to promote investment and strengthen partnerships.
Dr Musokotwane says this is with the aim of accelerating investment realization, creating job opportunities, and enhancing wealth creation to improve the livelihoods of Zambians.
The Finance Minister said Government is encouraging investors not only to extract raw materials but to engage in value addition especially in the area of critical minerals.
Meanwhile, Presidential Policy Advisor Chipokota Mwanawasa said President Hakainde Hichilema had introduced mechanisms aimed at enhancing private sector participation in the country’s economic development.
She highlighted reforms in the mining and energy sectors as crucial for driving economic progress.
Ms Mwanawasa also revealed that the President had established a Presidential Delivery Unit, tasked with fast-tracking development priorities, improving public service delivery, and ensuring sustainable benefits for all Zambians.
LONGi Revisits Zambian President to Co-Create New Clean Energy Partnership Ecosystem
James Jin, President of LONGi, Middle East and Africa region, led a delegation to visit Lusaka, the capital of Zambia, and met with Zambian President Hakainde Hichilema. This high-level engagement follows President Hichilema’s inspection tour to LONGi’s headquarters in Xi’an, China, in September 2024, marking a new phase of comprehensive and pragmatic progress in the China-Zambia energy partnership.
Elevating High-Level Engagement to Build Long-Term Mutual Trust
During his visit to China in September 2024, President Hichilema specifically toured LONGi’s headquarters to discuss photovoltaic (PV) technology innovation and global energy equity, expressing deep appreciation for LONGi’s technical prowess and global vision. Since then, sustained high-level dialogue has driven tangible collaboration. Jame’s return visit to the presidential residence underscored LONGi’s “long-term commitment” to Africa and facilitated in-depth discussions on Zambia’s renewable energy roadmap, PV project implementation, advanced technology benchmarks, and local talent development.
BC Technology Drives High-Standard Energy Transition Model
Addressing Zambia’s challenges of limited installed PV capacity and a monolithic energy mix, LONGi proposed a “high-efficiency, low-maintenance, and highly adaptable” customized solution centered on its latest BC technology aiming to establish a high starting point and high standard of national energy transformation path.
BC modules demonstrate stable power generation in high-temperature, high-radiation, and dusty environments, delivering a 7.35% increase in energy yield compared to conventional technologies within the same land footprint. They also enable “PV+” integration with complex scenarios such as mining and agriculture. By leveraging BC technology, LONGi will support Zambia in building a cutting-edge energy infrastructure to achieve dual goals of energy security and green development.
Co-Creating an Ecosystem for African Clean Energy Leadership
Beyond technology and project collaboration, LONGi is committed to fostering a localized energy ecosystem in Zambia. Leveraging the country’s abundant solar resources, LONGi has partnered with the Zambian government, universities, and enterprises to establish a trinity framework of “technology introduction, scenario application, and talent incubation.” This end-to-end solution spans planning, design, and operations, providing sustained support for Zambia’s energy-industrial integration.
President Hichilema remarked, “LONGi is not only a technology leader but also a sustainable development partner. Zambia regards LONGi as a critical collaborator in our national energy strategy and looks forward to jointly building a clean energy benchmark in Africa, ensuring sunlight illuminates a brighter future for all.”
BackChat Season 4 Episode 5: Hon. Sipho Hlazo
This week, Choolwe Chibomba was joined by Hon. Sipho Hlazo, Member of Parliament for Chilanga Constituency. Choolwe and Sipho discussed his constituency, Sipho’s optimism for the year ahead, and the importance of corporate social responsibility in complementing the successful Constituency Development Fund.
Ivanhoe Mines Commences Giant Copper Exploration Program in Zambia
Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President & Chief Executive Officer Marna Cloete are pleased to announce that the company has been granted by the Government of the Republic of Zambia a vast, 7,757-square-kilometre package of new exploration licences in the highly-prospective North-Western Province of Zambia. Ivanhoe’s thesis behind the strategically selected licence package is to explore for an extension of the Central African Copperbelt.
As announced on September 10, 2024, a memorandum of understanding (MOU) was signed between Ivanhoe Mines and the Republic of Zambia’s Ministry of Mines and Minerals Development (Ministry of Mines). Since then, the Ministry of Mines has assisted Ivanhoe’s geological team in identifying the prospective licence package and provided access to existing geological data. The shared geological data also includes results from the country-wide airborne geophysical survey currently underway.
The new licence package, as shown in Figure 1, is strategically located between Ivanhoe’s Western Forelands Exploration Project (230 km to the northeast) and the company’s Angolan exploration licence package (130 km southwest). The Zambia licences cover an area over three times larger than the Western Forelands Exploration Project.
Ivanhoe’s geological team will commence exploration activities for new copper mineralization associated with Basement Domes, Katangan-age sediment-hosted copper systems, and iron-oxide-copper-gold (IOCG) systems. The western edge of the Central African Copperbelt in the Democratic Republic of the Congo (DRC) hosts the Western Foreland Shelf, where the Kamoa-Kakula Copper Complex and the Mineral Resources of Makoko and Kiala in the Western Forelands are located. Ivanhoe’s geological team believes that the Western Foreland Shelf facies of the Nguba Group sediments continue to arc southwest into Zambia and Angola, as illustrated in Figure 1. Based on this concept, Ivanhoe Mines also holds over 22,000 square kilometres of exploration licences in Angola, as announced on November 27, 2023.
Concurrently, Ivanhoe continues to advance its massive exploration program in the Western Forelands. The 2025 exploration program will be Ivanhoe’s largest-ever, with $50 million dedicated to exploration activities – consisting of 102,000 metres of diamond drilling and 18,000 metres of reverse circulation (RC) drilling. Ivanhoe is targeting an updated Mineral Resource Estimate for the Makoko area, including a Maiden Resource Estimate for Kitoko and Makoko West, next month.
Figure 1. Simplified map showing the extent of the Central African Copperbelt (yellow band) and the Zambian ‘Basement Domes’ region (in pink), overlaid with exploration licences held by Ivanhoe Mines in the DRC, Zambia, and Angola.
The President of the Republic of Zambia His Excellency Hakainde Hichilema commented:
“Today, we welcome Ivanhoe Mines’ new chapter into Zambia’s mining industry -one that promises jobs, growth, and prosperity for our people. This new investment in copper exploration is not only about achieving our government’s vision of over 3 million tonnes of copper production by 2031, it’s also about unlocking opportunities, empowering communities, and ensuring that our resources benefit every Zambian. Together, we will build an economy that works for all, with transparency, fairness, and a shared vision for the future.”
Ivanhoe Founder and Executive Co-Chairman Robert Friedland also commented:
“Our entrance into Zambia marks an exciting new chapter in Ivanhoe Mines’ commitment to expanding our exploration footprint and testing the extent of the Central African Copperbelt…which is already the world’s largest and highest-grade sedimentary Copperbelt. Our new licences in both Zambia and Angola have notable geological similarities to our world-leading discoveries in the Democratic Republic of the Congo. We will leverage our deep geological expertise and proven track record in the Western Forelands, where Ivanhoe’s geologists have discovered, including Kamoa-Kakula, over 50 million tonnes of high-grade contained copper to date. Our seasoned team of geologists is excited to begin work on these highly prospective licences… we believe there are plenty of new tier-one copper discoveries yet to be found under shallow Kalahari sands.
“We are particularly encouraged by the proactive support and collaborative approach demonstrated by the Zambian government, underscoring the country’s commitment to fostering a stable and investor-friendly mining environment. This includes a key role of partnership that Zambia is playing in terms of improving the regional hydroelectric power supply and distribution – where the Kamoa-Kakula Copper Complex is already a major importer of power via the Zambia interconnector.
“As global demand for copper continues to grow, Ivanhoe Mines looks forward to contributing to Zambia’s economic development, supporting local communities, and furthering our goal of finding the world’s next major copper deposits.”
Ivanhoe identified an underexplored area within the Zambian Copperbelt with compelling geology and strong discovery potential
Much like the Kamoa-Kakula Copper Complex and the Western Forelands Exploration Project in the DRC, the Zambian licences represent an underexplored potential extension of the Central African Copperbelt. Working closely with the Ministry of Mines and leveraging its in-depth knowledge of the Central African Copperbelt, Ivanhoe’s geologists selected the Zambian licences based on a detailed review of available exploration data.
BHP Billiton flew airborne geophysics over sections of Ivanhoe’s licence package in the late 2000s, as part of a larger exploration program across western and central Zambia targeting IOCG-style mineralization. BHP exited its African operations in 2015. No work has been carried out on the licences since 2015.
In August 2024, the Zambia Ministry of Mines commenced a country-wide airborne geophysical survey that started in the west of the country, including over Ivanhoe’s new licence package. The geophysical survey consists of a high-resolution airborne magnetics survey at 300-metre-line spacings. The shared results will expedite Ivanhoe’s exploration efforts, saving at least six months in acquisition time and costs.
Remarkably, like Kamoa-Kakula and the Western Forelands, the Zambian and Angolan licences have had very little prior exploration activity, as they are covered by Kalahari sand cover, hiding any buried mineralization.
The central portion of the newly approved Zambian licence package is highly prospective for copper mineralization hosted in Paleo-Proterozoic basement inliers buried below a blanket of Kalahari sands, containing sheared amphibolite-facies schists, granitic gneiss, and migmatite similar to Barrick’s Lumwana mine to the northeast, on the Mwombezhi Dome.
Ivanhoe engages technical contractors ahead of 2025 field program, exploration activities expected to commence in Q2 of 2025.
Ivanhoe will appoint environmental consultants in the second quarter of 2025 to complete key environmental baseline studies and produce an Environmental Management Plan (EMP) for approval by the Zambia Environmental Management Agency (ZEMA). Initial engagements with local communities will also be undertaken prior to the mobilization of field teams for ground surveys and drilling in the second half of the year. A detailed review of historical and newly acquired airborne geophysical data will be carried out concurrently with the completion of the EMP.
Ivanhoe will conduct an extensive program of aircore and auger drilling to collect soil geochemical data and additional airborne and ground-based geophysical surveys. This work will enable Ivanhoe’s geological team to map the giant licence area in detail to better understand the extent of the Basement Domes, Katangan sediments, and felsic magmatic intrusives that underlie the licence area. Once this work has been completed target generation for future diamond drilling will commence.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the phased development of the tier-one Platreef palladium-nickel-platinum-rhodium-copper-gold project in South Africa.
Ivanhoe Mines also is exploring its highly prospective, 60-100% owned exploration licenses in the Western Forelands, covering an area over five times larger than the adjacent Kamoa-Kakula Copper Complex. Ivanhoe is exploring for new sedimentary copper discoveries, as well as expanding and further defining its high-grade Makoko, Kiala, and Kitoko copper discoveries as the company’s next major development projects.
Zambia Investor Briefing: March
CALL FOR SPEAKERS - INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY)
The Zambia Development Agency (ZDA) invites potential speakers and sponsors to apply for the inaugural Invest Zambia International Conference, which will take place from July 16 to 18 in Lusaka.
The event is set to be the largest business forum in the country. It will bring together business leaders from around the world and Zambian government officials to showcase the huge investment opportunities in the country.
Business leaders, development experts, or commentators interested in participating in a panel session, fireside chat, or solo presentation should email info@zambiaisback.com to learn more. Please include a short professional biography and topics you would be prepared to speak on.
Companies interested in sponsorship can also contact the same email. We offer a range of pre-set and bespoke sponsorship packages to suit a variety of budgets, helping to boost your company’s profile and reach key stakeholders.
Join us in shaping Zambia's economic future.
OVERVIEW
MINING: Prospect Resources has been granted two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in northwest Zambia. Critical minerals royalty company Ecora Resources told investors it had signed a $50 million streaming deal on Moxico Resources’ flagship Mimbula copper mine. India’s Mines Secretary said the country is exploring mining critical minerals in Zambia to secure raw materials key to energy transition technologies. Patriot Lithium’s exploration team discovered multiple high-grade copper occurrences across its license area in Zambia’s Copper Belt.
ENERGY: Zambia’s Copperbelt Energy Corp. (CEC) announced that it will invest $500 million over the next two years to increase its solar power output and double the capacity of a power transmission line to the Democratic Republic of Congo. ZESCO has signed an Inter-Utility Memorandum of Understanding (IUMoU) with Electricidade De Mozambique (EDM) to increase transmission capacity within the Southern Africa Power Pool. Botswana and Zambia committed to establishing a high-voltage cross-border transmission line.
TECHNOLOGY & AGRICULTURE: Flutterwave, Africa’s leading payments technology company, has obtained a Payment System License in Zambia. German pharmaceutical, biotechnology and crop science company Bayer AG opened a new $35 million maize seed facility in Kabwe.
RAIL: The China Civil Engineering Construction Corporation (CCECC) announced plans to invest $1.4 billion to upgrade the Tanzania-Zambia railway (TAZARA).
ECONOMIC RELATIONS: Zambia reaffirmed its commitment to deepening diplomatic and economic relations with France, and Foreign Affairs Minister Sylvia Masebo declared the country open for foreign investment. Infrastructure, Housing, and Urban Development Minister Charles Milupi stressed the importance of Zambia's Private-Public Partnership (PPP) model for infrastructure development. The Canadian Government said Zambia is one of Africa's most attractive investment destinations.
A CLOSER LOOK
Mining Developments
Prospect Resources has been granted two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in northwest Zambia. According to Australia-listed mineral explorer and developer, the licenses, which are renewable for successive 25-year periods, represent a significant de-risking of the project and provide "a strong legal and permitting framework" from which to advance project development and financing. With a substantial maiden mineral resource estimate of 107 million tonnes grading 0.5% copper for 515,000 tonnes, Mumbezhi is poised to support Zambia’s goal of producing three million tonnes per annum by 2030.
Critical minerals royalty company Ecora Resources told investors it had signed a $50 million streaming deal on Moxico Resources’ flagship Mimbula copper mine in Zambia. Moxico Resources will use the deal's proceeds to help implement phase II of the Mine’s expansion, increasing annual output from 14,000 tonnes in 2024 to 56,000 tonnes by mid-2026. The stream will cover Moxico-owned Mimbula’s existing reserve-based life of mine (LOM) of 11 years, with the possibility of further extension. Ecora CEO Marc Bishop Lafleche said: “Mimbula has everything we look for in an investment; it is a high-quality ore body, with low operating costs and with an exceptional management team.”
In other mining news, India’s Mines Secretary said the country is exploring the mining of critical minerals in Zambia as the world’s fastest-growing economy aims to secure raw materials key to energy transition technologies. The Zambian government recently agreed to give India 9,000 square kilometres for cobalt and copper exploration. In January this year, New Dheli approved 163 billion rupees ($1.88 billion) to develop the critical minerals sector.
Last week, Patriot Lithium’s exploration team discovered multiple high-grade copper occurrences across its license area in Zambia’s Copper Belt. The new targets, identified through ongoing field mapping, include promising copper deposits with ultra-high grade readings. The company’s discoveries represent a potential game-changer in providing growth beyond its lithium assets and enhancing its potential to become a significant player in Zambia’s copper sector. The ultra-high copper grades of up to 33% are extremely rare in the industry, where grades of 1-2% are considered economically viable.
Energy
Zambia’s Copperbelt Energy Corp. (CEC) announced that it will invest $500 million over the next two years to increase its solar power output and double the capacity of a power transmission line to the Democratic Republic of Congo. CEC’s Chief Financial Officer, Mutale Mukuka, the company’s strategy to attract external investment to finance the projects. "We'll invest quite heavily in transmission projects to make sure that power from [new projects] can reach consumers," said Mukuka. CEC plans to bolster the power transmission line between Zambia and Congo to 550 megawatts (MW) from 250 MW, enhancing regional energy security and supporting growing industrial demand in both countries.
The Zambia Electricity Supply Corporation Limited (Zesco) has signed an Inter-Utility Memorandum of Understanding (IUMoU) with Electricidade De Mozambique (EDM) to increase transmission capacity within the Southern Africa Power Pool. The MoU is set to enhance regional energy security by allowing cross-border electricity trading to support growth in both countries. This latest interconnector agreement comes just weeks after Botswana and Zambia committed to establishing a high-voltage cross-border transmission line, in yet another boost to energy security and electricity trade within the Southern African Development Community.
Technology & Agriculture
Flutterwave, Africa’s leading payments technology company, has obtained a Payment System License in Zambia. The license will allow Flutterwave to offer affordable and secure mobile money services in a move which promises to strengthen Zambia’s financial inclusion and facilitate local and international trade with cutting-edge payment solutions. Zambian businesses will now be able to process single and bulk payouts to their partners and employees, gaining access to new growth opportunities in the country’s fast-evolving digital economy. “Zambia is a market with enormous potential for growth and innovation,” said Olugbenga ‘GB’ Agboola, Flutterwave’s Founder & CEO. Flutterwave’s service offers a reliable gateway to process local payments for international companies eyeing investment in Zambia. The company plans to work closely with the Bank of Zambia to foster financial innovation and drive economic growth through digital payments.
German pharmaceutical, biotechnology and crop science company Bayer AG opened a new $35 million maize seed facility in Kabwe earlier this month. The facility will triple the company’s existing production capacity this year. The new site will create 80 permanent jobs and over 100 seasonal positions, generating around 15,000 seasonal on-farm jobs through field operations and contract growers. Bill Anderson, Bayer’s CEO, emphasised that alleviating severe food insecurity is a key company objective: “With our new seed facility in Zambia, we want to make a meaningful contribution to that crucial goal.”
Rail
The China Civil Engineering Construction Corporation (CCECC) announced plans to invest $1.4 billion to upgrade the Tanzania-Zambia railway (TAZARA), improving a key route for regional copper exports. $1 billion of CCECC's investment will go towards rehabilitating the TAZARA's rail tracks, while the balance will be used to purchase 32 new locomotives and 762 new wagons to boost capacity. TAZARA officials have said the investment will strengthen trade between the two countries, improve logistics for the mining sector, and reduce transportation costs for businesses and passengers. This latest development marks the most significant upgrade to the railway since its construction in the 1970s.
Economic Relations
Zambia reaffirmed its commitment to deepening diplomatic and economic relations with France, with Acting Foreign Affairs Minister Sylvia Masebo declaring the country open for foreign investment. Signing a Declaration of Intent to enhance bilateral cooperation earlier this month, Masebo assured that French businesses can thrive in Zambia’s economy. The foreign affairs minister told reporters that a delegation of French companies will visit Zambia in April to explore investment opportunities in energy, agriculture, and infrastructure.
This comes as Infrastructure, Housing, and Urban Development Minister Charles Milupi stressed the importance of Zambia's Private-Public Partnership (PPP) model for infrastructure development at the 2025 Transforming Transport Conference in Washington DC. The model aims to enhance the country's trade potential on the global stage while it pursues an ambitious infrastructure development agenda to support the socio-economic transformation of the country and create much-needed jobs for Zambians, particularly the youth.
Finally, the Canadian Government said Zambia is one of Africa's most attractive investment destinations. Parliamentary Secretary to Canada’s Minister of Foreign Affairs, Rob Oliphant, cited political stability, good governance, and strong economic potential as attributes that make Zambia a favoured investment prospect. The Parliamentary Secretary proposed a Canadian trade mission to Zambia to explore further investment opportunities after hearing about the recently launched high-resolution geophysical survey to identify mineral-rich areas for exploration.
LONG READS
Zambia's mining law overhaul - (Dentons, 18.03.25)
The railway that China hopes will take on the US in Africa - (FinancialTimes 12.03.25)
Emerging technology policies and democracy in Africa: South Africa, Kenya, Nigeria, Ghana, and Zambia in focus – (Atlantic Council, 10.03.25)
China Faces PR Challenge in Zambia – (Foreign Policy, 18.03.25)
UPCOMING EVENTS
8-9 April — Pension Funds & Alternative Investments Africa Conference 2025 –- Mauritius
9-10 April — Africa Tourism Investment Conference –- Cape Town, South Africa
9-11 April — WTM Africa — Cape Town, South Africa
24 April — Africa Fintech Summit — WashingtonDC, US
24 April — Africa Energy Summit — London, UK
28-30 April — Proptechand Digital Transformation — Accra, Ghana
29-30 April — Invest in Africa Summit — The Hague, Netherlands
28 April – 2 May — AVCA Conference & VC Summit — Nigeria
Zambia's CEC to invest $500 million in power projects to increase transmission
Zambia's Copperbelt Energy Corp. will invest $500 million over the next two years to increase its solar power output and double the capacity of a power transmission line to Democratic Republic of Congo, a senior company official said on Monday.
Copperbelt Energy Corporation (CEC) owns the sole power transmission line between Congo and the Southern African Power Pool (SAPP).
Chief Financial Officer Mutale Mukuka said CEC wanted to attract investors to finance the projects as the country emerges from a four-year sovereign debt default.
"We're looking to invest around $500 million over the next two years and most of this financing will come from third party financiers," Mukuka told Reuters.
"We'll invest quite heavily in transmission projects to make sure that power from (new projects) can reach consumers," he said.
Developers are showing interest again in Zambia's energy projects after the country emerged from a sovereign default and following an El Niño-induced drought which wiped out 70% of power generation.
CEC also plans to bolster the power transmission line between Zambia and Congo to 550 megawatts (MW) from 250 MW currently.
Bayer opens $35m maize seed facility in Zambia
German pharmaceutical, biotechnology and crop science company Bayer AG has opened a new maize seed facility in Kabwe, Zambia.
Bayer has invested around $35m in the new facility, which will triple its existing capacity for maize seed production in the country in 2025. The company expects the seed output to further increase in the coming years.
The new site will create approximately 80 permanent jobs and over 100 seasonal positions. Furthermore, it will generate around 15,000 seasonal on-farm jobs through field operations and contract growers.
Amid the difficulties associated with investing in Africa, the world looks to the finance elite to provide critical analysis on matters regarding funding and investments. Are you ready to shape how EDB Mauritius interacts with investors and adapts to their…
Bill Anderson, CEO, emphasised that alleviating severe food insecurity is a key company objective.
“With our new seed facility in Zambia, we want to make a meaningful contribution to that crucial goal”, he added.
Bayer’s new facility aims to combat food insecurity in Sub-Saharan Africa by improving access to quality seeds and addressing agronomic and technological gaps.
Debra Mallowah, head of Bayer’s crop science division in Africa said: “Enhanced productivity increases food security while also making a difference for the livelihoods of smallholder farmers.”
Additionally, Bayer’s investment in African seed production capitalises on a rapidly growing market. It plans to double its crop science division by 2030. To achieve this goal, it will invest an additional $38m to expand the seed production network across the region by 2028.
Amid the difficulties associated with investing in Africa, the world looks to the finance elite to provide critical analysis on matters regarding funding and investments. Are you ready to shape how EDB Mauritius interacts with investors and adapts to their…
Bayer AG operates in 80 countries and has over 93,000 employees globally. In the past year, it announced investments in Mexico, Spain, and China.
China's CCECC to invest $1.4 billion in Tanzania-Zambia railway
The China Civil Engineering Construction Corporation (CCECC) will invest $1.4 billion to upgrade the Tanzania-Zambia railway, the line's operator said on Thursday, improving a key route for copper exports from central Africa.
The railway, widely known by its initials, TAZARA, also offers a way to bypass logistics bottlenecks in South Africa that have slowed copper and cobalt exports.
"The decision to grant a concession follows an in-depth evaluation of TAZARA's challenges over the years, which necessitated urgent intervention," TAZARA Authority CEO Bruno Ching'andu said in a statement.
China signed a deal to revive the 50-year-old TAZARA last year, as the United States was throwing its financial weight behind a rival transport corridor for minerals called Lobito, after an Angolan port.
Some $1 billion of CCECC's investment will go towards the rehabilitation of the TAZARA's rail tracks, while the balance will be used to purchase 32 new locomotives and 762 new wagons to boost capacity, Ching'andu said.
TAZARA released the statement on the sidelines of the Zambia International Mining and Energy Conference, where Ching'andu made a presentation to investors and executives.
The 30-year concession will be structured into three years of construction work and 27 years of operation and maintenance, Ching'andu said, adding that negotiations between both sides have not yet been completed.
Former President Joe Biden visited Lobito at the end of his term to highlight the $550 million U.S. loan for the corridor, which links mineral-rich Democratic Republic of the Congo and Zambia to Angola's Atlantic coast, but current President Donald Trump has not publicly indicated his plans for the project.
The Africa Finance Corporation, which also backs Lobito alongside commodities trader Trafigura and others, said the project will go forward regardless of U.S. involvement.
The CCECC investment in TAZARA is a significant boost to China's lending to Africa, which hit a 20-year low in 2022 after peaking at $28.4 billion in 2016.
The country, which bankrolled more than $5 billion to construct a modern rail line in Kenya and secured some railway construction contracts in Nigeria, has adopted a more cautious approach to big-ticket lending to projects in Africa after some countries struggled to repay debt and Zambia and Ghana defaulted.
BackChat Season 4 Episode 4: Curtis Madden
This week, Choolwe Chibomba was joined by Curtis Madden, Co-founder and CEO of Aiponics. Choolwe and Curtis discuss the evolution of the start-up landscape in Zambia and the country’s digital transformation under the current administration.
Prospect Resources secures licences for Mumbezhi copper production in Zambia
Australian exploration and development company Prospect Resources has been granted two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in north-west Zambia.
This grant of the LMLs provides 25-year tenure security, renewable for successive 25-year periods. The licences are a cornerstone for further development, financing and long-term operational planning.
The LMLs de-risk the project, contrasting with the Australian system where a mining licence is typically the final step before development.
With a substantial maiden mineral resource estimate of 107 million tonnes (mt) grading 0.5% copper for 515,000 tonnes, Mumbezhi is poised to support Zambia’s goal of producing three million tonnes per annum (mtpa) by 2031.
Prospect Resources managing director and CEO Sam Hosack said: “The rapid grant of the LMLs over Mumbezhi is a testament to both the underlying opportunity presented by this asset as well as the professional and stakeholder-aware approach adopted by our team in Zambia.
“Like our recent tabling of a maiden mineral resource estimate and development of a substantial exploration target for the project, the grant of these licences represents another major milestone in our journey at Mumbezhi, delivering the inherent credibility attached to this more advanced and secure form of tenure.”
Prospect is also positioned to benefit from Zambia’s mining tax incentives and negotiate additional investment incentives under the Zambia Development Agency framework.
Prospect’s exploration efforts continue to identify significant potential across the Nyungu Corridor and at Kabikupa.
With further drilling planned for the second quarter of 2025, the company aims to increase its copper resource base and progress towards a large-scale mining operation.
Hosack added: “We are also excited about recommencing drilling at Mumbezhi shortly, with a particular focus on the regional opportunities across this large prospective ground holding. Priority targets for the upcoming programmes include the Nyungu ‘Corridor’, which remains broadly untested to date.
“Located within a world-class geological address, as established by the scale and projected life of the surrounding major copper operations, delivers us a compelling magnitude of opportunity at Mumbezhi.”
BackChat Season 4 Episode 3: Chilando Chitangala, Mayor of Lusaka
This week, Choolwe Chibomba was joined by Chilando Chitangala, Mayor of Lusaka. Choolwe and Mayor Chitangala discuss her passion for public service and the changes caused by investment in Lusaka during her tenure.
Zambia Investor Briefing: February
CALL FOR SPEAKERS - INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY)
The Zambia Development Agency (ZDA) invites potential speakers and sponsors to apply for the inaugural Invest Zambia International Conference, which will take place from July 16 to 18 in Lusaka.
The event is set to be the largest business forum in the country. It will bring together business leaders from around the world and Zambian government officials to showcase the huge investment opportunities in the country.
Business leaders, development experts, or commentators interested in participating in a panel session, fireside chat, or solo presentation should email info@zambiaisback.com to learn more. Please include a short professional biography and topics you would be prepared to speak on.
Companies interested in sponsorship can also contact the same email. We offer a range of pre-set and bespoke sponsorship packages to suit a variety of budgets, helping to boost your company’s profile and reach key stakeholders.
Join us in shaping Zambia's economic future.
OVERVIEW
MINING: Vedanta Resources announced that it is trying to raise around $1 billion in debt financing to fund the development of its Konkola Copper Mines (KCM). Gold and copper mining company Barrick has signed a memorandum of understanding (MoU) to boost exploration and mining. Jubilee Metals announced that it had secured a high-grade copper resource to support the restart of its Roan operations in Zambia. First Quantum Minerals (FQM) reinforced its commitment to supporting the government’s vision of producing three million tonnes of copper annually. Giant Mineral Fields (GMF) has formed a strategic partnership with African Holdings Limited (AHL) to explore three Copperbelt license areas.
ENERGY: Government-owned ZESCO has signed a series of Power Purchase Agreements (PPAs) with 29 Independent Power Producers (IPPs) totalling over 332MW of new solar capacity. Solarcentury Africa Limited and the Industrial Development Corporation (IDC) have agreed to co-develop a 67 MWp solar power plant in Zambia.
TRADE: Zambia is now ready to start trading under the African Continental Free Trade Area (AfCFTA). The government suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness in the global market. President Hichilema has been praised for his response to the recent USAID cuts.
FDI: The Bank of Zambia raised its key interest rate by 50 basis points to 14.5%. DP World, a leading multinational logistics company, has proposed a $300 million investment to help position Zambia as a regional transport hub.
OFFICIAL VISITS: At the beginning of the month, President Hichilema travelled to Japan at the invitation of Japanese Prime Minister Shigeru Ishiba for a five-day working visit. President Hichilema has returned from Egypt, calling for increased trade and investment through joint public-private ventures between Egyptian and Zambian businesses.
A CLOSER LOOK
Mining Developments
Vedanta Resources announced that it is trying to raise around $1 billion in debt financing to fund the development of its Konkola Copper Mines (KCM). The Indian company, which owns 80% of KCM, said it planned to sell at least 30% of its holding in the copper mine last year. However, Chris Griffith, head of Vedanta’s base metals unit, told reporters at the Mining Indaba conference this month: "We are in a much higher likelihood that we can raise funds from a range of financing options… we own 80% of the business, and clearly we'd prefer to continue owning 80% of the business.” Vedanta Resources is eyeing the $1 billion in funding to boost copper output at KCM to about 300,000 metric tons per year over the next five years.
Meanwhile, gold and copper mining company Barrick has signed a memorandum of understanding (MoU) with Industrial Resources Limited (IRL), a subsidiary of the Zambian government’s Industrial Development Corporation. The MoU, which aims to boost exploration and mining, will help unlock the country’s maximum mineral potential amid Barrick’s own Lumwana Super Pit copper expansion. Mark Bristow, Barrick's CEO, emphasised the partnership's significance, noting that the collaboration aligns perfectly with Zambia's national economic development strategies.
In other mining news, the London-listed Jubilee Metals announced that it had secured a high-grade copper resource to support the restart of its Roan operations in Zambia after implementing a new power agreement last month. The Company has successfully commenced processing the new high-grade copper feed material at its Roan concentrator facility, which has a processing capacity of 45,000 tonnes per month.
First Quantum Minerals (FQM) reinforced its commitment to supporting the government’s vision of producing three million tonnes of copper annually at the Africa Mining Indaba this month. The company’s $1.25 billion investment in its S3 expansion project at the Kansanshi mine in Solwezi is expected to increase ore processing capacity to 55 million tonnes annually and extend the life of the mine by more than 20 years. FQM Director of Corporate Affairs John Gladston said, “First Quantum Minerals is a growth partner for Zambia’s present and future,” and called on the Government “to maintain regulatory regime stability so more large-scale mines like Kansanshi and Trident can come online and contribute to the 3 million tonne goal.”
Giant Mineral Fields (GMF) has formed a strategic partnership with African Holdings Limited (AHL) to explore three license areas in Zambia's Central African Copperbelt to deliver new sources of copper. The initiative aims to leverage Zambia’s untapped mineral resources amidst a global copper shortfall projected to reach 10 million tonnes annually by 2034. The licenses in key areas of the Lufilian Arc will undergo extensive geochemical and geophysical surveys and drilling to assess their potential. Trust Hatuma, CEO of Curprite Geo-services Limited, said, “This agreement with Giant Mineral Fields underscores the global interest in Zambia’s revitalised mining sector.
Energy
Government-owned ZESCO has signed a series of Power Purchase Agreements (PPAs) with 29 Independent Power Producers (IPPs) under the Micro-Generator Scheme, Presidential Solar Initiative, and Developer-Initiated IPPs, delivering over 332MW of new solar capacity. Construction is set to commence within two months and is expected to be fully operational by the end of 2025. The projects are also expected to generate hundreds of direct and indirect jobs in engineering, construction, and maintenance.
Solarcentury Africa Limited and the Industrial Development Corporation (IDC) have agreed to co-develop a 67 MW solar power plant in Zambia. Located near Chisamba in Central Province, the project will connect directly to the ZESCO backbone, enhancing the power supply and reducing the need to transfer power from the south. This initiative will primarily supply electricity to IDC's large industrial users, directly addressing Zambia's current power shortages. Jason De Carteret, CEO of Solarcentury Africa, commented, “Zambia’s urgent need for reliable power makes this project a crucial step towards energy security.”
Trade
Zambia is now ready to start trading under the African Continental Free Trade Area (AfCFTA) following the introduction of Statutory Instrument No. 94. and publishing its Provisional Schedule of Tariff Concessions (PSTC). This move allows Zambia to expand its market access beyond COMESA and SADC. The AfCFTA aims to create a single market of over 1.3 bn people with a combined GDP of approximately $3.4tn. Zambia’s Ministry of Commerce, Trade, and Industry encouraged the private sector to take advantage of this opportunity to enhance trade and to participate in line with the African Union's Agenda 2063, which aims to boost intra-Africa trade and contribute to building.
This comes as the government suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness in the global market and attract further investment. The CEO of the world-leading gemstone mining company Gemfields, Sean Gilbertson, praised the Zambian government's "decisive action" on the export tax. Gemfield-owned Kagem mine in Zambia accounts for about 25% of the supply of global rough emeralds and produced about 10 million carats of emeralds in 2024.
In other trade news, President Hichilema described the recent USAID cuts as long overdue and a wake-up call for African countries to grow their economies by enhancing bilateral trade and investment. President Trump’s January executive orders Reevaluating and Realigning US foreign aid triggered widespread alarm among aid-dependent nations like Zambia. Hichilema has been praised for his response, which reaffirmed the government’s commitment to securing alternative funding sources while strengthening economic management to safeguard vital social services.
Foreign Direct Investment (FDI)
Earlier this month, The Bank of Zambia raised its key interest rate by 50 basis points to 14.5%. Bank of Zambia Governor Dr Denny Kalyalya told reporters at The Monetary Policy Committee (MPC) quarterly meeting, “The underlying reason for doing this is to steer inflation back to the 6 to 8% target band, which is the medium-term objective and help anchor inflation expectations.” Higher emergency electricity tariffs as a result of the once-in-a-generation drought have heavily impacted inflation rates, but expected improvement in food supply and electricity generation means that the MPC’s projected balance of risks to inflation is tilted to the downside.
DP World, a leading multinational logistics company, has proposed a $300 million investment to help position Zambia as a regional transport hub. Following a meeting at State House between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna, an initial $50 million investment was announced as part of a Public-Private Partnership (PPP) with Zamcargo Limited. The partnership is expected to drive economic growth, making full use of Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure.
Official Visits:
At the beginning of the month, President Hichilema travelled to Japan at the invitation of Japanese Prime Minister Shigeru Ishiba for a five-day working visit. The trip focused on bilateral investment and included visits to Aichi, Kyoto, and Tokyo, where the President met with high-ranking officials from prominent Japanese organisations. Notably, Toyota Motors Corporation accepted the Zambian administration’s proposal to invest in solar power generation in Zambia.
Finally, President Hichilema returned from his latest state visit to Egypt. The Zambian administration called for increased trade and investment through joint public-private ventures between Egyptian and Zambian businesses. Egypt’s President Al-Sisi expressed Egypt’s readiness to invest in the strategic Lobito Corridor project. Hichilema emphasised the importance of private sector participation in financing capital projects to ease pressure on national treasuries. The trip concluded with the signing of several MoUs focused on trade, investment, and development cooperation.
LONG READS
Race to lead Africa’s top development finance institution hots up (CNBC Africa, 31.01.25)
More than mining: leveraging critical minerals for growth in Zambia (European Council on Foreign Relations, 10.02.25)
Zambia Is Making Progress On Cost Of Living (International Business News, 20.02.25)
Unlocking Zambia's carbon credit market (Dentons, 20.02.25)
UPCOMING EVENTS
4-6 March — Africa Energy Indaba — Cape Town, South Africa
11-12 March — UN Tourism Regional Forum on Gastronomy Tourism Africa — Arusha, Tanzania
11 March — GTR Africa 2025 — Cape Town, South Africa
19-20 March — Africa Investment Exchange (AIX) — Nairobi, Kenya
19-20 March — Zambia International Mining and Energy Conference — Kitwe, Zambia
25-26 March — Bonds, Loans & ESG Capital Markets Africa — Cape Town, South Africa
BackChat Season 4 Episode 2: Michael Kroupnik
This week we talked to Michael Kroupnik, looking at his fascinating array of investments in the country as well as hearing his thoughts on the investment climate since President Hakainde Hichilema came into office and the importance of working with youth.
Call for Speakers, Sponsors at Invest Zambia International Conference
The Zambia Development Agency (ZDA) is looking for speakers to present at the inaugural Invest Zambia International Conference from 16 to 18 July.
Additionally, ZDA is looking to partner both businesses in both Zambia and abroad to sponsor the conference, which is being hosted in Lusaka.
ZDA Director General Albert Halwampa has said the event will be the largest business forum in the country and is set to be repeated annually. It will bring together business leaders from around the world, as well as Zambian government officials, to showcase the huge investment opportunities on offer in Zambia.
“We want to make sure we work with our partners and private sector to make this happen. The inaugural international investment forum will be held annually going forward, serving as a knowledge hub for the world to engage with and discover Zambia,” said Halwampa.
“The two day programme is designed to inspire partnerships and transactions, governed by a structure comprising the ZDA secretariat, local event manager, and other local professional services,” he added.
Business leaders looking to take part in a panel session, fireside chat, or solo presentation are asked to email info@zambiaisback.com to find out more. Please include a short professional biography and topic areas you would be interested in speaking on.
Likewise, companies looking to sponsor this exciting event should also email info@zambiaisback.com for more information. We have a range of pre-set and bespoke sponsorship packages to suit a variety of budgets that will help boost your company’s profile and reach key stakeholders.
Barrick Signs MoU with Zambia to Boost Mining and Exploration
Gold and copper mining company Barrick has signed a memorandum of understanding (MoU) with a resources organisation of the government of Zambia, which is aimed at boosting exploration and mining in the well-endowed Central African country.
The collaboration aligns with Zambia's vision of increasing its copper production to three-million tons a year in the coming decades, South African-born Barrick CEO Dr Mark Bristow revealed on Wednesday, when the New York- and Toronto-listed Barrick he leads delivered another outstanding set of financial results, notwithstanding the issues it is having to deal with in Mali, where gold sales were down significantly owing to the restrictions placed on exports by the Malian government.
The MoU has been signed with Industrial Resources Limited or IRL, a subsidiary of the Zambian government’s Industrial Development Corporation.
The purpose is to establish a strategic partnership capable of unlocking maximum mineral potential amid Barrick’s own Lumwana Super Pit copper expansion project in Zambia having advanced to full permitting status.
When Barrick acquired Lumwana copper mine in 2011, it was unprofitable, which resulted in a $5-billion writedown in the past five years. But a focus on cost discipline and exploration has added significantly to its reserves and has extended the life-of-mine by more than 20 years.
“Today, the mine is sustainably profitable and a pillar of our copper growth strategy,” Bristow remarked during the presentation of fourth-quarter results covered by Mining Weekly.
In the three months to December 31, Lumwana reported a stellar set of record quarterly production results that brought the mine back into guidance with considerable cost improvement.
“With the Super Pit expansion feasibility study completed, we're now moving forward with project development following board approval. The feasibility study clearly supports the value of this investment.
"Importantly, Barrick is able to fund the Super Pit expansion through its current and forecast cash flow facilities without needing to issue any new shares or take on additional debt.
“We've appointed our engineering partners and finalised the environmental and social impact studies for which we now have received the permit. We’re also on track with early works design and long lead item fabrication.
“This highlights the big advantage of emerging markets, where large expansions and new projects can be completed much more quickly than in the developed world, but at exactly the same standard,” Bristow noted.
This article originally appeared on Mining Weekly
Zambia and DP World Forge $300 Million Partnership to Develop Transport Infrastructure
Zambia is set to strengthen its position as a regional transport and logistics hub following a proposed $300 million investment by DP World, a leading global port operator. The initiative, which will commence with an initial $50 million injection, will be executed through a Public-Private Partnership (PPP) with Zamcargo Limited, a subsidiary of the Industrial Development Corporation (IDC).
The agreement was announced after a meeting between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna at State House. Mr. Al Banna affirmed DP World’s commitment not only to profit generation but also to enhancing local livelihoods through infrastructure development.
President Hichilema highlighted that Zambia, as a land-linked nation, has the potential to become a pivotal player in regional trade and investment. He emphasized that DP World’s expertise in global logistics would facilitate Zambia’s access to international markets, enhancing its ability to efficiently export and import goods.
The President also underscored the urgency of developing dry port facilities at Walvis Bay in Namibia and Dar-es-Salaam in Tanzania, noting that these sites are critical to improving Zambia’s trade efficiency.
“This initiative aligns with our broader vision of transforming Zambia into a major transport and business hub in Southern Africa,” President Hichilema stated.
The partnership is expected to drive economic growth by leveraging Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure.
DP World Proposes $300 Million Investment
Zambia is set to strengthen its position as a regional transport and logistics hub following a proposed $300 million investment by DP World, a leading global port operator. The initiative, which will commence with an initial $50 million injection, will be executed through a Public-Private Partnership (PPP) with Zamcargo Limited, a subsidiary of the Industrial Development Corporation (IDC).
The agreement was announced after a meeting between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna at State House. Mr. Al Banna affirmed DP World’s commitment not only to profit generation but also to enhancing local livelihoods through infrastructure development.
President Hichilema highlighted that Zambia, as a land-linked nation, has the potential to become a pivotal player in regional trade and investment. He emphasized that DP World’s expertise in global logistics would facilitate Zambia’s access to international markets, enhancing its ability to efficiently export and import goods.
The President also underscored the urgency of developing dry port facilities at Walvis Bay in Namibia and Dar-es-Salaam in Tanzania, noting that these sites are critical to improving Zambia’s trade efficiency.
“This initiative aligns with our broader vision of transforming Zambia into a major transport and business hub in Southern Africa,” President Hichilema stated.
The partnership is expected to drive economic growth by leveraging Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure.
This article originally appeared in the Lusaka Times
Zambia Investor Briefing: January
OVERVIEW
MINING: President Hichilema has announced First Quantum Minerals' delivery of the High-Resolution Airborne Survey to explore Zambia's minerals. Mines Minister Paul Kabuswe has said he expects Zambia to reach 1 million tonnes of copper production by 2026, leveraging expansion and restoration of mines. Barrick Gold is expanding Lumwana Mine, expecting to double production to 240,000 tonnes annually. Saudi Arabia’s Manara Minerals plans to acquire a stake in Zambia’s copper and nickel assets. KoBold Metals has raised $537 million and has announced that it will focus much of these funds on developing Zambia's Mingomba copper project. Mercuria and Zambia have formed a joint metals trading venture to allow Zambia to engage in mineral trading directly.
ENERGY: The $100 million, 100-megawatt Chisamba Solar PV Plant is 71% complete and expected to be operational by May. The World Bank has approved a $292 million Zambia-Tanzania Interconnector Project (ZTIP), which will enhance energy sustainability and affordability in Zambia and connect Eastern and Southern Africa. President Hichilema attended the Mission 300 Africa Energy Summit in Dar es Salaam.
FDI: The Zambia Development Agency (ZDA) announced it had actualised $9.83 billion of the $58.78 billion in committed investments, generating 40,395 jobs from 497 projects in sectors such as energy, manufacturing, transport, and mining.
REGIONAL PARTNERS: President Hichilema attended the SADC’s Organ Troika Summit and addressed Mozambique's political and security challenges, emphasising their impact on regional trade and the urgency for collective action to restore regional stability.
A CLOSER LOOK
Mining Developments
In a landmark announcement, President Hichilema revealed that First Quantum Minerals (FQM) had delivered their High-Resolution Airborne Survey Findings. The survey, provided by First Quantum Minerals (FQM) under the leadership of CEO Tristan Pascall, is a transformative step in unlocking the nation’s untapped mineral wealth. The delivery of the Copperbelt survey signals the beginning of a new phase in this nationwide effort. By providing reliable and high-quality geological data, the survey should attract further investment, increase transparency, and accelerate the development of Zambia’s mining sector.
Meanwhile, in a positive step towards the New Dawn government’s goal of producing 3 million tonnes of copper annually by 2031, Mines Minister Paul Kabuswe announced that copper production in the country is expected to reach 1 million tonnes annually before 2026. By restoring established mines like Mopani Copper Mines and Konkola Copper Mines to full capacity and expanding output at FQM’s Kansanshi Mine and the Barrick super pit, Zambia is well positioned to hit this milestone.
This comes as Barrick Gold Corporation reaffirms its commitment to Zambia’s economic growth. The company is looking to expand its Lumwana Mine operations, building on the $3.7 billion it has contributed to Zambia since 2019. Lumwana’s $2 billion backed expansion is set to double its current copper production to an average of 240,000 tonnes per year over the life of the mine, transforming it into a Tier One copper mine and one of the world’s top 25 producers. The expansion will create 2,500 construction jobs through to 2028 and 1,500 long-term jobs.
In other mining news, Minister for Mines and Minerals Development Paul Kabuswe has told Reuters that Saudi Arabia’s Manara Minerals is actively seeking critical minerals projects in Zambia. Saudi Arabia is among several Middle Eastern economies pursuing deals in critical minerals, including copper and lithium, as part of a region-wide strategy to diversify its economy and reduce its reliance on oil. Manara, a joint venture between Saudi Arabian Mining Company and the kingdom's $925 billion Public Investment Fund, is currently closing in on a deal to buy a minority stake in FQM’s Zambian copper and nickel assets.
KoBold Metals, a Berkeley-based startup backed by Bill Gates and Jeff Bezos, has raised $537 million in a series C funding round, boosting its valuation to $2.96 billion. KoBold’s co-founder and chief executive Kurt House said about 40% of the new capital would be spent developing existing projects into mines, with the Zambian Mingomba copper project taking “the lion’s share of that.” KoBold said that the $2 billion Mingomba site would produce at least 300,000 tonnes per year in the 2030s.
Swiss-based commodities trader Mercuria released a statement confirming it had set up a metals trading arm with Zambia. The unit will enable Zambia to engage directly in the trading of its minerals, maximising the value derived from the country’s natural wealth. "Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market," Kostas Bintas, Mercuria's global head of metals and minerals, said in the statement.
Energy Projects
The Chisamba Solar PV Plant, a 100-megawatt renewable energy project, is now 71% complete and on track to be commissioned by May this year. News of the Solar Plant’s swift progress was shared by Boyd Kanchela, Chief Executive Officer of Kariba North Bank Power Extension Corporation, at the Energy Forum for Africa (EFFA) Conference as the plant is poised to be a major step forward in Zambia’s renewable energy transition. The EFFA expressed satisfaction with the $100 million project’s progress, reaffirming the forum’s goal to add 500megawatts to Zambia’s energy capacity by the end of the year.
In other energy news, the World Bank has approved the $292 million Zambia-Tanzania Interconnector Project (ZTIP),enabling Zambia to access more sustainable and affordable energy. The ZTIP will also enable electricity access in rural areas, improving education and health services and complementing domestic efforts. The transmission line will complete the connection of the Eastern Africa Power Pool and SouthernAfrican Power Pool, creating the largest geographic energy market in the world—from Cape Town to Cairo. The project comprises $245 million of funding from the International Development Association, $17 million from the UnitedKingdom Foreign Commonwealth & Development Office (FCDO), and $30 millionfrom the European Union (EU).
Earlier this week, President Hichilema attended the Mission 300 Africa Energy Summit in Dar es Salaam. The summit aims to accelerate electricity access for 300 million people across the African continent by 2030. Throughout the two-day summit, Hichilema held bilateral meetings with several private sector global entities and the heads of state of Lesotho, Malawi, and the Ivory Coast. The president took toFacebook to reaffirm his commitment to increasing energy investment and growing the economy, pitching to local and foreign investors
Foreign Direct Investment
The Zambian Development Agency (ZDA) announced it had recorded $9.83 billion of the $58.78 billion in committed investments into actualised projects. These investments are derived from 497 projects spanning multiple sectors, with committed investments of$18.74 billion. The projects have generated 40,395 jobs, surpassing the initial target of 38,119 jobs. “The energy sector led with $2.63 billion, followed by manufacturing with $2.33 billion, transport with $558.96 million, and mining with $481.56 million,” said Albert Halwampa, ZDA Director General. He attributed 2024’s achievements to strong political leadership, successful debt restructuring that bolstered investor confidence, and intensified investment promotion activities.
Regional Partners
Finally, President Hakainde Hichilema attended the Southern African Development Community (SADC) virtual Extraordinary Organ Troika Summit to discuss Mozambique's post-election political situation and insecurity. In his capacity as Outgoing Chairperson of the Organ, President Hichilema highlighted that the political and security situation in Mozambique is not only affecting the people of Mozambique but also hindering regional trade in critical sectors like energy and transport. He underscored the need for the SADC Community to firmly support interventions to restore peace and stability in Mozambique through collective action in promoting regional security and cooperation.
LONG READS
What to know about the Lobito Corridor - and how it may change how minerals move (Atlantic Council, 20.12.24)
US and China scramble to control Africa's mineral riches (The Times, 22.12.24)
Zambia’s comparability conundrum (Financial Times, 03.01.25)
Zambia’s Road to Growth and Better Jobs (World Bank, 16.01.25)
UPCOMING EVENTS
03-04 February — 121 Mining Investment — Cape Town, South Africa
03-05 February — Invest Africa Mining Series — Cape Town, South Africa
03-06 February — Mining Indaba — Cape Town, South Africa
12 February — African Business Forum — London, UK
12-13 February — Africa Tech Summit — Nairobi, Kenya
17 February — Africa Business Forum — Addis Ababa, Ethiopia
19-20 February — 8th Africa Agri Expo — Nairobi, Kenya
19-21 February — Africa's Green Economy Summit — Cape Town, South Africa
26-27 February — Sankalp Afriac Summit 2025 — Nairobi, Kenya
BackChat Season 4 Episode 1: Kyeretwie Osei
Choolwe kicks off season 4 of BackChat this week by speaking with Kyeretwei Osei, head of programmes at the Economic, Social and Cultural Council (ECOSOCC). Choolwe and Kyeretwei discuss the African Union, ECOSOCC’s role in shaping policy to improve private sector investment, and transparency in the Zambian investment landscape.