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.

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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.

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.”

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.

PRESS RELEASE: New Strategic Partnership for Copper Exploration in Zambia

Giant Mineral Fields (GMF), a global mineral exploration company, is pleased to announce the formation of a strategic partnership (the Partnership) with African Holdings Limited (AHL). AHL is a joint venture between Curprite Geo-services Limited (Curprite), a Zambian-based geological services company and Menel Energy and Resources, a Zambian mining investment company. The Partnership intends to commence exploration programmes across three license areas in Zambia’s Central African Copperbelt, a region well known globally for the quality and scale of its copper deposits.

The Partnership believes this is a uniquely opportune moment to help accelerate the role of Zambia in delivering new sources of copper due to a variety of factors:

• Zambia’s undeveloped resource potential – with only 49% of the country’s mineral-rich land geologically mapped1

• Expanding global supply shortfall of critically needed copper, which is estimated2 to be 10 million tonnes per annum (Mtpa) by 2034. (Expected copper mine supply in 2025 is 25 Mtpa3.)

• Zambian Government’s goal of tripling copper production, together with effective policy incentives for the private sector to further increase copper exploration

• International support for Africa’s first transcontinental rail network, known as the Lobito Corridor, to connect almost the entire regional copper-cobalt belt with additional links across sub-Saharan Africa

• Significant continuing investment by several mining industry majors in greenfield and brownfield copper expansion projects in Zambia.

Under the terms of the agreement, GMF will undertake copper exploration activities on three licences in Zambia, numbered 33445-HQ-LEL, 33446-HQ-LEL, and 33449-HQ-LEL. These licences have been identified as having substantial potential for copper deposits based on their premium location in the Lufilian Arc structure and Domes region of the Central African Copperbelt.

Exploration activities by the Partnership will include advanced geochemical and geophysical surveys, as well as targeted drilling campaigns, to evaluate comprehensively the mineral potential of these licences. These methods are expected to provide critical data to guide future development plans.

Licences 33445-HQ-LEL and 33449-HQ-LEL are situated in a highly prospective region, between the Mwombezhi and Kabompo Domes, which host the Barrick-owned Lumwana and the First Quantum-owned Sentinel mining projects respectively, two of Zambia’s most significant copper mining operations. Licence 33446-HQ-LEL is located to the northwest of these mines in another geologically highly prospective area sitting on the same geological structure as Africa’s richest copper mine, Kamoa-Kakula, in the Democratic Republic of Congo.

Brian Kiernan, Interim CEO of Giant Mineral Fields, said: “The partnership with African Holdings Limited underscores our commitment to unlocking the potential of Zambia’s mineral wealth and accelerating the eventual development of new copper production. We are excited to work with Curprite Geo-services Limited, a company with deep expertise and local knowledge of Zambia’s geological landscape.”

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. We are proud to contribute our expertise to this project, which promises to bring significant benefits to the local economy and the broader mining community.”

Barrick’s Lumwana Mine Fuels Zambia’s Economic Growth With Major Expansion on the Horizon

Barrick Gold Corporation has reaffirmed its commitment to Zambia’s economic growth, contributing over $3.7 billion since 2019. In 2024 alone, Lumwana’s operations contributed $887 million to the economy through royalties, taxes, salaries and procurement of goods and services, solidifying its position as one of the nation’s top five taxpayers. Copper production for 2024 was within guidance, supported by investments in operator training and an upgraded ultra-class fleet.

Lumwana remains a leader in advancing local content, with 72% of the $906 million spent on goods and services in 2024 going to Zambian suppliers and contractors. This brings the total spend on local goods and services to $2.5 billion since 2019. The company’s Business Accelerator Programme is further building capacity, targeting 150 SMEs to support the upcoming Superpit expansion.

The Lumwana expansion will double its current copper production to a life-of-mine average of 240kt a year with an additional 2,500 construction workers to be employed over the construction period through to 2028.1 In addition to this, the expansion is set to create a further 550 permanent roles. To meet these demands, Lumwana is extending its Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA) accredited training centre to equip local workers with critical skills. Currently, 99% of Lumwana’s employees are Zambian nationals, a testament to Barrick’s focus on sustainable workforce development.

“We are transforming the surrounding Kalumbila District into a mining-powered economic hub that will endure beyond Lumwana’s expanded life of mine,” said Barrick president and CEO Mark Bristow, speaking from Lumwana. Plans include new employee housing in the Manyama town, an industrial supplier park and an airport which is expected to be operational by the end of 2025. The master plan, developed in collaboration with local authorities, aligns with Zambia’s integrated development strategy.

Barrick is actively supporting Zambia’s ambition to increase copper output to 3Mt by 2031 through its Lumwana expansion and securing further exploration licenses in the Northern Province. Additionally, the company is supporting Zambia’s power challenges in collaboration with ZESCO. Since September 2024, Lumwana’s co-generation initiatives have reduced its reliance on the grid, helping to alleviate the supply-demand gap. A joint working group, led by Barrick, is now focused on upgrading the northwestern power corridor, benefiting mines, local communities and domestic consumers alike.

Barrick’s vision for Lumwana extends beyond mining ensuring the benefits of its investments endure well into the future.

First Quantum Minerals delivers findings of High-Resolution Airborne Survey

On Thursday this week First Quantum Minerals delivered their High-Resolution Airborne Survey findings to President Hakainde Hichilema and the Ministry of Mines.

President Hichilema says the survey, which studied mineral deposits on the Copperbelt Province, provides new information identifying areas in the province rich in minerals.

The President says even though the Copperbelt has been mining for over a century, its endowments have until now not been fully documented.

He says the new data will enable mining companies in the Province to plan effectively for expansion projects and new investments.

Speaking at State House when he received the survey’s report from FQM Chief Executive Officer Tristan Pascall, President Hichilema said a lack of detailed information on underground mineral deposits on the Copperbelt hindered the full utilisation of the Province’s resources. Mr Pascall also affirmed the company’s readiness to collaborate with the Government to fully exploit mineral resources.

Mines and Minerals Development Minister Paul Kabuswe explained that FQM fully funded the survey through a Memorandum of Understanding -MoU- with the Government.

Mr. KABUSWE added that Government is consulting stakeholders on whether the Province should be included in the ongoing National Geological Mineral Mapping Survey launched last year.

FQM Exploration Manager Jon Stacey said the survey data would be handed over to the Government and made available to other mining license holders on the Copperbelt.

ZDA Records $9.89 Billion in Actualised Investments and Over 40,000 Jobs

The Zambia Development Agency (ZDA) has 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.

ZDA Director General Albert Halwampa emphasized the Agency's enhanced efforts to support investment projects aimed at driving job creation and fostering economic growth.

In 2024, ZDA intensified its trade, investment, and business development initiatives. These efforts included targeted trade and investment missions and the provision of business development services to enhance competitiveness in key economic sectors.

The Agency recorded $6.91 billion in committed investments from 486 licensed projects during the year.

“The energy sector led with $2.63 billion in investments, followed by manufacturing with $2.33 billion, transport with $558.96 million, and mining with $481.56 million,” Mr. Halwampa noted.

He said the 486 projects committed to creating 233,098 jobs, marking a 45% increase compared to the 160,280 jobs pledged from 379 projects in 2023.

Mr. Halwampa further explained that ZDA offers business development services to support the competitiveness of growth-oriented businesses.

He said by leveraging both Local Direct Investment (LDI) and Foreign Direct Investment (FDI), the Agency aims to promote firm growth, job creation, and wealth generation.

Mr. Halwampa attributed the Agency's 2024 success to robust political leadership, successful debt restructuring that has improved investor confidence, and intensified investment promotion activities.

“Looking ahead, the ZDA is preparing to host the inaugural Invest in Zambia International Conference (IZIC) in the second quarter of 2025, aiming to attract over $1 billion in committed investments during the event,” he revealed.

The Director General reaffirmed the Agency’s commitment to transitioning committed investments into tangible projects and job creation.

From Jubilee to Prosperity: Leveraging The Next 60 Years of Zambian Independence

By Dr. Kiru Sichoongwe

This year, Zambia is celebrating its diamond jubilee, marking 60 years of independence. It presents an opportune time to reflect on the country’s journey and anticipate how the next sixty years can be optimized for economic development. This milestone not only allows us to acknowledge past achievements but also to chart a path for long-term economic growth. The past six decades encompassed both challenges and successes, and this juncture serves as a crucial moment to build upon our accomplishments while tackling the obstacles that lie ahead.

The journey from jubilee to prosperity requires us to harness national resources, adopt innovative policies, and cultivate partnerships that can inspire growth for future generations. This blog outlines key strategies that Zambia can implement to reshape its economic landscape over the next sixty years.

Zambia gained independence from British colonial rule on October 24, 1964. Despite an abundance of natural resources like copper, cobalt, and fertile land, Zambia still has challenges to overcome, including high poverty rates, unemployment, and inadequate infrastructure. As the nation embarks on the next phase of its development, it is essential to critically evaluate these historical challenges and identify pathways for improvement.

Zambia, as a land-linked country in southern Africa, possesses diverse sectors ripe for growth and development over the coming sixty years. By adopting a multifaceted approach focused on sustainable growth, inclusive development, and optimizing both resources and human capital, Zambia can effectively advance its economic goals.

Below is my analysis of key sectors where Zambia holds comparative advantages, along with strategic recommendations for leveraging these sectors for future growth.

Agriculture

Agriculture is vital to Zambia's socio-economic development, employing 51% of the workforce. More than half of the population relies on agriculture for food, primarily through smallholder farming. Furthermore, agriculture supplies raw materials for manufacturing and food processing, creating additional job opportunities, particularly for women and youth.

The sector also contributes significantly to Zambia's export earnings, generating about 29% of non-traditional exports and 7% of total exports. Therefore, agriculture is a promising avenue for achieving diversified and inclusive socio-economic growth.

Strategies for leveraging:

• Agri-technology Adoption: Promote modern agricultural techniques and technologies, such as precision farming, to enhance yields.

• Diversification: Encourage farmers to diversify into high-value crops, such as fruits and vegetables, reducing dependency on maize.

• Value Addition: Invest in agro-processing industries to enhance value addition to agricultural products and minimize post-harvest losses. 

Zambia’s government has set ambitions to become the breadbasket of southern Africa. 

Progress to date

Significant steps have already been taken to capitalize on agricultural opportunities through the Comprehensive Agriculture Transformation Programme, which enhances support for farmers in areas such as mechanization, marketing, and processing.

President Hichilema’s New Dawn government is firmly committed to boosting agriculture and agro-processing, as evidenced by the establishment of an Agriculture Credit Window within the transformation programme. This initiative has garnered participation from five commercial banks, facilitating the release of $5.5 million from the African Development Bank towards the Sustainable Agricultural Financing Facility (SAFE), alongside K200 million from the Zambian government.

Together, these funds will amount to a total of $18.5 million, supported by an 80% risk mitigation strategy. Additionally, the National Agriculture Diversification Strategy has been implemented, and an Agriculture Mechanization Policy has been launched to further enhance productivity within the sector.

 Mining

Zambia is one of Africa's largest copper producers, with abundant supplies of cobalt, gemstones, and other minerals as well. The mining sector is crucial to Zambia's economy, significantly contributing to GDP, tax revenues, and export earnings. In 2023, mining accounted for 13.7% of Zambia's GDP, up from 12.9% in 2022, and was the second-largest contributor to GDP in both 2023 and in the first quarter of 2024.

Strategies for leveraging:

• Local Content Policies: Implement policies that promote local processing of minerals to bolster the domestic economy.

• Sustainability Initiatives: Invest in sustainable mining practices that protect both the environment and local communities.

• Public-Private Partnerships (PPPs): Foster collaborations between the government and private sector to enhance infrastructure and investment within the mining sector.

Progress to date

The government has made significant strides in enhancing the mining sector, underlining its commitment to fostering local participation and attracting foreign investment. A landmark achievement includes securing a USD 100 million partnership between Moxico Resources and Mimbula Mineral Resources for copper exploration, a key focus given the country's rich mineral deposits.

Furthermore, the registration of 256 local mining cooperatives, alongside the issuance of licenses to 126 gold mining cooperatives and 65 artisanal cooperatives for other mineral exploitation, reflects a strong push towards empowering local stakeholders.

In a significant boost to the sector, KoBold Metals has invested USD 150 million into the Ming’omba Mining project in Chililabombwe, highlighting the growing international confidence in Zambia's mining potential. Additionally, the government successfully negotiated an increase in its shareholding in the newly revitalized Mopani Mine from 20% to 49%, aligning with its policy to enhance local ownership in mining firms and ensure that the benefits of mineral wealth are more widely shared among Zambians.

The New Dawn government aims to produce 3 million tonnes of copper by the early 2030s.

Tourism

Zambia is a premier tourist destination in Africa, celebrated for its natural wonders, including its stunning waterfalls, lakes, and rivers, which represent nearly 35% of Southern Africa's water resources. About 32% of the country's land is designated as wildlife-protected areas, contributing significantly to economic development by generating jobs and foreign exchange.

Tourism is primarily centered around wildlife conservation areas, with 20 national parks and 34 game management areas. Victoria Falls, a UNESCO World Heritage site, is among Zambia's most iconic attractions.

Strategies for Leveraging:

• Infrastructure Development: Invest in infrastructure (roads, airports, accommodations) to improve accessibility for tourists.

• Marketing and Promotion: Create a robust branding strategy to position Zambia as a leading tourist destination.

• Community-Based Tourism: Promote responsible and sustainable tourism practices that benefit local communities.

• Ecotourism and Cultural Tourism: Develop initiatives that highlight Zambia’s natural and cultural heritage.

Victoria falls, known as ‘the smoke that thunders’ in the local Lozi language. 

Progress to date

The New Dawn government is implementing a multifaceted approach to boost both accessibility and promotion in the tourism sector. Key developments include the construction of 3,297 kilometers of access roads and 3,889 kilometers of loop roads in selected national parks, which facilitate easier travel to these natural wonders.

Additionally, the government has crafted a comprehensive tourism marketing and promotion strategy, and secured USD 100 million in World Bank funding aimed at developing the northern and western tourism circuits.

To further amplify its global reach, tourism secretaries have been deployed to key embassies around the world to spearhead marketing efforts. As a testament to these initiatives, visits to national parks, waterfalls, and heritage sites surged by 22 percent in 2022, with 605,650 tourists recorded, up from 496,456 in 2021, largely attributed to the removal of visa requirements for several countries.

By the third quarter of 2023, international tourist arrivals reached an impressive 987,080, highlighting the effectiveness of the government's strategic interventions in revitalizing Zambia's tourism landscape.

Renewable Energy

Zambia boasts significant hydropower potential, alongside solar, wind, and biomass resources.

Strategies for leveraging:

• Investment in Renewable Technologies: Attract foreign investment for renewable energy technology to strengthen capacity.

• Decentralized Energy Solutions: Promote off-grid renewable energy options in rural areas to expand electricity access.

• Regional Power Trade: Explore opportunities for regional energy trading with neighbouring countries to optimize resources.

• Sustainability Policies: Formulate policies that encourage sustainable energy generation and reduce reliance on fossil fuels.

Progress to date

Zambia’s government is committed to advancing the generation, transmission, and distribution of renewable energy, with notable developments showcasing this dedication. ZESCO, the state-owned power utility, recently signed a landmark USD 3.5 billion deal with China CiEG to bolster renewable energy production in the country.

In a parallel effort, ZESCO entered into a Memorandum of Understanding and a Joint Venture Development Agreement with Masdar of the UAE, paving the way for an impressive USD 2 billion investment in solar projects. With the commissioning of an additional turbine at the Kafue Gorge Lower Hydro Power Station, Zambia's national installed capacity has risen to approximately 3,800MW.

Significant efforts are also underway to expand solar energy access, evidenced by the establishment of 11 solar mini-grids, the installation of 100 solar PV systems at health centers, 200 solar home systems for households, and 79 solar home systems for chiefdoms. Furthermore, the Kabwe 100MW Solar Photovoltaic Project, set to become Zambia’s largest solar power plant, broke ground in February 2024, further underscoring the government's commitment to sustainable energy development and its proactive approach to implementing policies that promote the growth of the energy sector.  

Manufacturing Sector

The manufacturing sector is crucial for Zambia's economic growth and job creation. Recognized as a key driver for transformation and employment opportunities in the Eighth National Development Plan (8NDP), a focus on local value addition and development of complete value chains can lead to a more diversified economy and sustained growth.

Strategies for everaging:

• Skill Development: Facilitate training programs to enhance the workforce's skills to meet industry demands.

• Market Access: Negotiate trade agreements to improve access to regional and international markets for manufactured goods.

• Support SMEs: Establish support mechanisms for small and medium enterprises (SMEs) to encourage innovation and job creation in manufacturing.

Progress to date

The Zambian government's commitment to revitalizing the manufacturing sector is evidenced by several significant developments. Notably, the revival of Mulungushi Textiles stands out as a pivotal initiative, aiming to restore the textile industry to its former glory and create employment opportunities for local communities.

Additionally, the reopening of the local fertilizer manufacturing plant is a crucial step towards achieving self-sufficiency in agricultural inputs, while the anticipated establishment of a car battery manufacturing plant represents a forward-thinking approach to diversifying the industrial base.

Furthermore, the rejuvenation of Kafue Nitrogen Chemicals of Zambia (NCZ) not only enhances domestic production capacity but also aligns with the government's vision of sustaining economic growth through local industrialization. Collectively, these initiatives underline the government's strategic push to bolster the manufacturing sector and foster a more resilient economy.

ICT and Digital Economy

The digitalization of the economy is a pivotal driver for social and economic growth in Zambia. Harnessing the opportunities of digitalization can help the government achieve its development goals and foster sustainable economic advancement. Zambia's tech-savvy youth population positions the country favourably within the digital economy.

Strategies for Leveraging:

• Infrastructure Investment: Invest in internet infrastructure to improve connectivity throughout urban and rural regions.

• Digital Skills Training: Implement programs to enhance digital literacy and technical capabilities among youth.

• E-Governance: Utilize technology to improve governance, service delivery, and transparency in public administration.

Steps taken to date to leverage each opportunity

In a landmark initiative aimed at propelling Zambia's digital landscape forward, the government launched the E-MARK Innovation Hub in November 2024. This innovative hub promises to transform the tech and entrepreneurial ecosystem by offering startups, small and medium enterprises (SMEs), and creatives access to state-of-the-art resources, collaborative working spaces, and comprehensive skills development programs. Such advancements highlight the government’s commitment to nurturing a vibrant digital economy and empowering the next generation of Zambian innovators.

Conclusion

To leverage Zambia's comparative advantages, a long-term vision, strategic policies, and collaborative efforts between government, private sector, and civil society are essential. By focusing on these key strategies and establishing a comprehensive, long-term developmental policy that engages all sectors of society, Zambia can make significant progress toward sustainable economic development over the next sixty years.

About the Author:   

Dr. Kiru Sichoongwe is a Zambian economist currently serving as a Research Fellow in the Department of DSI/NRF South African Research Chair (SARChI) in Industrial Development at the University of Johannesburg, South Africa.

Disclaimer: The opinions expressed in this article are those of the author. They do not purport to reflect the opinions or views of the institute where the author is affiliated.

Anglo American Considers Return to Zambia

President Hakainde Hichilema has announced that British mining giant Anglo American is strongly considering a return to Zambia, twenty years after the company stopped operating in the country.

Writing on Facebook, President Hichilema said he had hosted a delegation from Anglo American at State House, including the company’s CEO Duncan Wanblad. 

“We are glad to note the renewed interest by Anglo American Corporation to invest in our mining sector after close of 20 years of their exit,” the President wrote.

 “The 3 million tons annual copper production target we have set for ourselves will require partnerships with reputable mining companies like Anglo American corporation.” 

President Hakainde Hichilema speaking with Anglo American CEO Duncan Wanblad. 

Since President Hichilema took office in 2021 there has been an influx of foreign investments into the mining sector. In 2022, Canadian mining company First Quantum Minerals announced plans for a $1.25 billion expansion to its Kansanshi copper mine in North Western Province, as well as $100 million to operationalise its Enterprise nickel project.

These investments were followed by an announcement that the Bill Gates-backed Kobold Metals could spend $2.3 billion to build a new mine at Mingomba, Copperbelt Province, which is thought to be the largest copper discovery in Zambia for more than a century. Then, in October, Barrick Gold declared its decision to invest a further $2 billion at its Lumwana mine facility.

Increasing Zambia’s copper output is a cornerstone of President Hichilema’s plan for economic development, with ambitious targets to expand production to 3 million tons per year in the next decade.

 It is currently unclear where Anglo American is likely to resume its operations however, they might partner with the Hichilema administration on one of the 40 government-reserved permits in which the state retains a 30% share in future critical mineral mines. This share, which was announced over the summer, will not affect current mining operations in the country and is intended to increase the benefit of Zambia’s mining sector to ordinary citizens.

Since President Hichilema took office, Zambia’s mining sector has become a highly sought after investment opportunity. His administration abolished the so-called ‘double tax trap’ on mining royalties and has normalised relationships with key players including Vedanta Resources, which soured under the previous administration. The country is now seen as a key player in the shift to green energy, with abundant supplies of copper, cobalt and other critical minerals needed for electric batteries and transmission cables. 

HH on mining sector reform “I am not allowing this process to happen until we have consensus”

President Hakainde Hichilema has reassured investors that his government will not embark on a controversial reform of Zambia’s mining sector until it has reached a consensus with the country’s mining companies.

In August, the government had announced plans to establish a state-owned firm to control at least 30% of future mines’ production of critical minerals, including copper. The draft legislation would also grant the government advanced mining rights to an area before an exploration licence was granted.  

Speaking at the inaugural Zambia Mining and Investment Insaka in Lusaka on Wednesday, President Hichilema said he realised that the policy had spooked investors and he therefore called a meeting of Zambia’s Chamber of Mines, which represents major mining houses, to reassure them that the legislation would not go ahead without their cooperation.

“Invite everybody, even those mine houses that are not represented in the chamber. I said bring them to the table,” Hichilema told delegates at Lusaka’s Mulungushi Conference Centre.

“And I said to the Mines Minister [Paul Kabuswe], to the PS [Permanent Secretary], I am not moving here. I am not allowing this process to happen until we achieve consensus.”

President Hakainde Hichilema: "the government doesn't work in isolation; it must work with investors, its own investors in its own mines".

The comments come following a meeting between the Ministry of Mines and representatives from the Chamber of Mines last month. In a joint statement the chamber and government said they had “developed a roadmap for the resolution of the matter within the shortest period of time.”

President Hichilema’s comments at Zambia’s first ever Mining Insaka reiterate his support for public-private sector cooperation. In his speech he added, “the government doesn’t work in isolation; it must work with investors, its own investors in its own mines. These are our mines you run, Zambian mines. We want them to succeed commercially. Not many countries would do what we did. I think that’s where the value lies.”

The Insaka, which means ‘a place to gather’ in Zambia’s Bemba language, was held to coincide with the 100th anniversary of the first formal mining activity in Zambia.

Writing on Facebook, President Hichilema explained that the event was “a crucial dialogue aimed at shaping the future of the mining sector. It provides a platform or sharing experiences and fostering conversations as equal partners on how to maximize the industry's potential for the benefit of all stakeholders, especially the Zambian people.”

The inaugural Zambia Mining and Investment Insaka coincided with the 100th anniversary of the first formal mining activity in Zambia. 

Additional $500 million to be invested into Lumwana Mine

President Hakainde Hichilema officiated the groundbreaking ceremony for the Lumwana Mine Super Pit in Kalumbila District, marking a pivotal milestone in Zambia’s mining sector. The event, held on a one-day working visit to the North-Western Province, signals a new era for the country, with significant investments poised to strengthen Zambia’s standing in the global copper industry.

The expansion of the Lumwana Mine, spearheaded by Barrick Lumwana, will see an estimated $500 million USD invested in infrastructure development, operational expansion, and advanced mining technologies. This substantial investment is expected to create over 3,000 direct jobs during the construction phase, with an additional 1,500 long-term jobs upon completion.

“This is a momentous occasion that reflects our ongoing progress in building a robust, globally competitive mining industry,” President Hichilema stated. “Copper is rapidly becoming a critical mineral on the world stage, and this project ensures that Zambia remains a key player.”

President Hichilema extended his gratitude to Barrick Lumwana for their dedication to the project and their commitment to collaboration, ensuring the success and impact of the Super Pit expansion.

During his visit, the President also engaged with traditional leaders and addressed a public rally at Manyama in Kalumbila District, where he interacted with local residents.

President Hichilema departed from Solwezi Airport at 17:40 hours, seen off by North-Western Province Minister Robert Lihefu, along with senior government and UPND officials. His visit underscores the government’s commitment to fostering development and economic growth in the region through strategic partnerships in the mining sector.

This article originally appeared on Lusaka Times

Zambia Bonds Rally as Morgan Stanley Praises Budget Restraint

Zambia’s dollar bonds climbed after its 2025 spending plan won praise from Morgan Stanley even as it drew concern from locals battling with the impact of the nation’s worst drought in a century.

The advance on its $1.7 billion in notes due 2033 sent yields tumbling by the most on record, reaching 7.86%. They’ve dropped more than 30 basis points since Finance Minister Situmbeko Musokotwane announced the budget on Sept. 27, reversing a weakening trend that started after the government completed a debt restructuring in June.

The bonds have performed so well that Secretary to the Treasury Felix Nkulukusa on Monday said the window may be closing to exchange them in a potential debt-for-nature swap.

Neville Mandimika, emerging-markets strategist at Morgan Stanley, upgraded his view on Zambia’s bonds to “like” after the spending plan showed a strong fiscal performance, with revenues exceeding expectations and expenditures controlled in the first half of 2024.

The outlook showed room for further consolidation next year, which will be helped by rising output and prices for copper, Zambia’s biggest export, Mandimika said.

Still, Musokotwane’s plan to trim 2025’s fiscal deficit to 3.1% from 6.4% estimated for this year means tighter spending controls.

Read the original piece on Bloomberg here.

‘You ain’t seen nothing yet’ - Oxford Professor Praises Future of Zambia’s Economy

Oxford University Professor of Economics and Public Policy Paul Collier has praised President Hakainde Hichilema’s record in government, arguing that he inherited a difficult position and has now positioned the country for future economic growth. 

Speaking to Zambia Is Back’s ‘BackChat’ program, Professor Collier said, “The change that President Hichilema will achieve in a second term will set a role model for the rest of southern Africa. Reforms will extend beyond minerals - to agriculture and new businesses.”

The British Academic explained that Zambia’s economic history demonstrates the urgent need for President Hichilema’s reforming agenda. Citing Chile as an example of a fellow copper exporter, “neck and neck” with Zambia 50 years ago, Collier highlights the different trajectories of the two nations - Chile’s GDP Per Capita is now over 15 times Zambia’s. 

Professor Collier attributes the two countries’ divergent economic fortunes to poor management under a corrupt political class in Lusaka, where political power alternated between the two largest ethnic-based parties. Meanwhile, he says, mining and agriculture were underdeveloped. 

Professor Collier said he was particularly impressed by President Hichilema’s commitment to political devolution, saying it “woke me up” to Hichilema when he was still an opposition candidate. The President’s National Decentralization Policy and Zambia Devolution Support Program (ZDSP), launched in May of last year, has now kicked off what Collier calls ‘long overdue’ decentralisation. 

The move to devolution signalled the government’s commitment to bringing government services closer to the people and promoting accountability and transparency among local authorities and regions. Ultimately, the aim was to reduce corruption and boost international investment.

President Hichilema greets the local community in Zambezi District, NW Province

Asked if he thought the country was in a stronger position now than under the previous government, Collier responded that whilst Zambia is still in a difficult position, it is “through no fault of President Hichilema.” 

The ongoing droughts are a major setback for Zambia, just as the government nears the end of a slow and painful debt-restructuring process after it became Africa’s first pandemic-era sovereign defaulter in 2020. This “double whammy”, as Collier terms it, has made life very difficult for Zambians. Staple corn harvests fell by 54% to a 16-year low, while hydropower generation -  which accounts for about 85% of Zambia’s electricity supply- has plunged, leading to rolling blackouts lasting at least 12 hours daily. 

Collier contends that the situation would be a lot worse if President Hichilema were not in power. Regarding Hichilema’s ability to secure international support, Collier said, “It’s the very top of international agencies, the very top of America and the very top of Britain, which shows the level of authority and respect that President Hichilema commands in international circles”. President Hichilema has also taken significant action to tackle the energy crisis, accelerating private investment in new energy, expanding the use of solar panels, and increasing the grid supply through new energy providers. 

President Hichilema has expanded the use of solar panel within Zambia to help tackle the current energy crisis. 

There are significant signs that Zambia is tempting investment back in. In 2023, the Zambia Development Agency (ZDA) reported pledged investments totalling US$39.97 billion, a significant increase from US$8.11 billion in 2022 and US$3.3 billion in 2021. The number of committed jobs also rose sharply from 24,585 in 2021 to 160,280 in 2023. 

Last week, Moody’s Ratings upgraded Zambia’s long-term foreign-currency issuer rating to Caa2 from Ca, which is a step in the right direction. Hichilema’s government’s strong performance under its IMF program “anchors the agency’s expectations of continuing gradual institutional improvement,”said Moody’s. 

Looking ahead, Professor Collier believes there are two keys to growth and economic development and that President Hichilema’s business acumen and economic reforms are essential to both.

The first key is finding venture capital to catalyse new businesses and sectors; in Collier's words, “It’s not pick a sector, it's pick a process”. The process of experimentation, with risk finance investing in small firms led by young Zambian entrepreneurs, is essential to diversifying the economy and expanding Zambia’s middle class. 

The formulation of a new startup bill and community-allocated Constituency Development Funds (CDF) show that Zambia is setting the stage for redefining its economy, focusing on innovation and entrepreneurship, and making capital access easier.

The second key to development according to Collier, is a “gradual struggle to win the battle for productivity across the economy.” In particular, the development expert believes that mining on the Copperbelt, agriculture and Small and Medium-sized Enterprises (SMEs) can all flourish and become more productive in Zambia. “This is the way to make sustainable improvements,” he argues. 

Professor Collier says agriculture is e key to developing Zambia's economy

All in all, Professor Collier firmly believes that President Hichilema is in a position to win the next election and that by the end of the extra seven years, “people in Zambia will be materially more prosperous because they will be more productive.”

You can watch the full interview with Professor Collier on the latest episode of BackChat. 

ZDA Records US$ 8.9 bn in Actualised Investments (2021-2024)

Statement from the Zambia Development Agency (ZDA) on Friday 23rd August reads as follows:

“As ZDA, we recognise the important role of the media in informing the country of critical messages on Investments, Trade and Business Development.

It is against this backdrop, that the Agency hereby shares highlights for the actualised investments for the past three years as detailed below:  

A. Zambia Development Agency Mandate

The Agency under the ZDA Act No 17 of 2022 and Investment, Trade and Business Development Act No 18 of 2022 has the mandate to promote:

1. Both Local and Foreign Direct Investment

2. Trade

3. Business Development for Small Medium Enterprises

B. Performance Overview

The Agency continued to execute its mandate to promote trade and investment through targeted trade and investment missions and by facilitating business development services, all of which were aimed to promote growth and competitiveness of businesses in key sectors of the economy. 

1. US$ 8,9 Billion Actualised Investments - 2021 to 2024

The Agency has recorded unprecedented investment promotion activities in the past three years which resulted in US$ 8.9 billion actualised investments out of committed investment of USD 54 billion for the period 2021 – 2024.  

The US$ 8.9 billion was recorded from 440 companies out of the 1048 companies registered between 2021 and 2024. Data from the 608 companies is still being awaited due to slow responses, once received the final actualised amount will be communicated accordingly. 

The actualised US$ 8.9 billion was against a committed investment value of US$ 7.9 billion, from the 440 companies that responded representing 113% actualisation rate.

Top Ten Investments Actualised

S/N Project name Country of origin Sector Committed Investment (USD) Actualised Investment (USD)

1. FQM Trident Limited British Virgin Islands Mining 1,810,110,000.00 2,248,000,000.00

2. Tuff Boards Limited Zambia Manufacturing 1,381,000.00 906,000,000.00

3. Tim Motors Zambia Limited China Service 4,789,774.00 700,000,000.00

4. United Capital Fertilizer Zambia Company Limited Zambia Manufacturing 1,100,000,000.00 500,000,000.00

5. Shape It Adhesives Zambia Limited  Zimbabwe Manufacturing 1,237,500.00 403,000,000.00

6. Sparta Limited Zambia Agriculture 1,755,000.00 350,000,000.00

7. Chenguang Biotech Zambia Agri-Dev Limited China Transport 1,100,000.00 350,000,000.00

8. Konkola Copper Mines PLC India Mining  1,000,000,000.00  312,910,000.00 

9. Unified Chemicals Zambia Limited Zambia Manufacturing 220,000,000.00 228,000,000.00

10. Mopani Copper Mines PLC Switzerland Mining  281,000,000  220,000,000.00

11. Others 3,434,415,985.00 2,678,395,601.29

Total  7,855,789,259.00 8,896,305,601.29

Actualisation by Sector

Actualisation rate per sector was as follows:

o Mining recorded the highest with US$ 3.34 billion representing 34.91%, 

o Manufacturing was the second highest with US$3.10 billion, representing  34.85%,

o Transport US$1.2 billion, representing 13.2% 

o Services US$777 million, representing 8.7%

o Agriculture US$448 million, representing, 5.04%

o Tourism US$80.7 million, representing  0.91%,

o Energy US$77.9 million, representing 0.88% 

o Construction US$ 65.2 million, representing 0.73%

Actualised Investment by Province 

• Lusaka province recorded the highest value of actualisation of USD 5.3 billion against a committed investment of USD 2.7 billion, representing an actualisation rate of 63.3 percent of the total actualised investment. 

• North Western province was the second highest with an actualisation of USD 2.3 billion against a committed investment of USD 1.84 billion, representing an actualisation rate of 27.3 percent.

Jobs actualised

Aside from investments, 36,045 jobs were actualised against committed employment of 29,009 from the 440 companies that responded. This represents an actualisation rate of 124.3 percent from the 440 enterprises monitored.  The details are as follows:

• Manufacturing recorded the highest jobs at 12,460 representing 34.5% 

• Mining was second with 9,692 representing 26.8%, 

• Transport, 6,133,

•  Agriculture, 3,049; and 

• Services 2,554 

Actualised Jobs by Province 

• Lusaka province recorded the highest number of jobs with 18,433 jobs created accounting for 51 percent of the total actualised jobs. 

• This was followed by Copperbelt province with 10,853 jobs created, representing 30 percent of the total actualised jobs.

Top 10 performing companies monitored by Number of Jobs Created

In terms of the top ten (10) enterprises monitored by jobs created, findings were as follows: 

1. Mopani Copper mines PLC ranked highest with 6,010 jobs created

2.  First Quantum Minerals (FQM) was second with 3,112 jobs created

3. United Capital Fertilizer Zambia Company Limited, 1,468 jobs created

4. Yalelo Limited - Renewal Quattro Company Limited-Renewal, 1098 jobs created

5. Quattro Company Limited-Renewal, 950 jobs created

6. Mimbula Minerals Limited, 800 jobs created

7. Varun Food and Beverages (Zambia) Limited- Renewal,780 jobs created

8. Yoyo Foods Limited, 700 jobs created

9. A.P.G Milling Limited – Renewal, 640 jobs created

10. Varun Beverages (Zambia) Limited- Renewal, 555 jobs created

Local Business Development Program and Corporate Social Responsibility

• USD 401.8 million was actualized in form of Local Business Development Program and Corporate Social Responsibility. 

• In terms of Local Business Development, the enterprises involved in mining and manufacturing, local communities were supported through the subcontracting of various contracts to the enterprises;

• Major CSR activities included building and upgrading of schools. Others were donations, health facilities, grading of gravel roads, support to chiefdoms during traditional ceremonies, provision of transport services during pandemics such as Cholera and Covid-19, prize sponsorship and internship opportunities to deserving students in schools and colleges.

Members of the Press, these are some of the highlights of the actualised investments for the period 2021 – 2024. 

The Agency will continue prioritizing monitoring the performance of enterprise registered with regards to actualisation as it provides evidence of accounting for economic benefits accruing to Government for the fiscal and non-fiscal facilitation investments.

C. KEY DRIVERS OF INCREASED INVESTMENT IN ZAMBIA

1. Good Leadership 

His Excellency Mr.  Hakainde Hichilema President of the Republic of Zambia is providing the good and focused leadership in growing the economy of Zambia as the Country‘s Chief Marketing Officer. He has promoted the country’s untapped investment opportunities far and wide. Investors have responded and they are trooping into Zambia like never before.

2. Robust and consistency policies

President Hakainde Hichilema is providing good leadership across sectors including mining, energy and agriculture sectors, hence providing confidence to the private sector as the drivers of economic growth. The president has established the Public Private Dialogue Forum (PPDF) providing seamless engagement between public and private sector to engage and resolve all red tape and bottlenecks standing in the way of development.  

Further the Presidential Delivery Unit has been established to ensure all presidential priorities are delivered on time. This is a game changer in the scheme of doing things and has resonated well with private sector.

3. Stable Macro Economic and Fiscal Policy Fundamentals are now the norm under President Hakainde Hichilema 

• Stable inflation, 

• Stable Exchange rate 

• Restructured debt

• Prudent spending, transparency and accountability 

4. Consistent funding to the Zambia Development Agency

The New Dawn government has placed a premium on trade and investment as the means for creating jobs and wealth for the citizens of Zambia. To this effect the government has consistently funded ZDA to ensure execution of trade and investment promotion activities within the country and the rest of the world. 

D. ZDA IS APPEALING TO LOCAL INVESTORS TO STEP UP AND TAKE UP OPPORTUNITIES TO INVEST IN OWN COUNTRY

The ZDA Act No 17 has provided for low investment threshold of US$ 50,000.00 to make it easier for local investors to access incentives that include the following:

1. Zero % customs duty on imported equipment and machinery

2. 10 years tax holidays on dividends and profits if set up in the multi facility economic zone and exporting or farming in the farm blocks

3. Extension of incentives to expansion projects- encouraging renewals

4. Opportunities in farm blocks and energy sectors

5. Constituency Development Fund opportunities

I thank you for your attention, God bless you and our great nation Zambia.

Zambia is back in business

Three years ago this month, thousands of Zambians flocked into Lusaka’s National Heroes Stadium to celebrate the inauguration of President Hakainde Hichilema, whose landslide election victory had been built on the promise of growing the economy, creating jobs, and  lifting citizens out of poverty.

At the time Zambia’s economy was making headlines for all the wrong reasons. In late 2020 it became Africa’s first coronavirus-era sovereign default. By the time of the 2021 elections, inflation stood at well over 20% and Zambia owed more than $17 billion to foreign lenders, with a large portion of that debt hidden from the public accounts.

The country’s future looked bleak. The mining sector, which accounts for over 70% of total export earnings, 30% of government revenues and 8% of formal employment, was in disarray and the outgoing government’s heavy-handed approach to the industry had seriously spooked investors. While Zambia had long been considered a bastion of stability and progress in the region, its reputation had suffered a serious blow.

Fast forward three years and Zambians once again have good reason to be optimistic about the future. In 2023 the Zambia Development Agency (ZDA) recorded US$39.97 billion in pledged investments – up from US$8.11 billion in 2022 and US$3.3 billion in 2021. The number of jobs committed has also risen dramatically, from 24,585 in 2021 to 160,280 in 2023. As President Hichilema told the European Parliament in 2022, “Zambia is back in business”.

More investors are putting more money in, not just in the mining sector but also agriculture, manufacturing, energy, tourism and infrastructure. Of the US$39.97 billion pledged by investors last year, manufacturing accounted for US$19.72 billion, followed by energy at US$8.9 billion. Investment came from all over the world, from the US to China and from the UK to the UAE.

This turnaround has been achieved through a combination of measures: a mixture of practical reforms and ambitious initiatives designed to drive economic activity and diversify the country’s economic base, while at the same time playing to its strengths and seeking to leverage global trends such as the green energy transition.

President Hichilema has set an ambitious target of increasing copper production to 3 million tonnes annually over the next seven years. This gauntlet that has been picked up by major mining houses such as Mopani Mines and Konkola Copper Mines, who are ramping up production in response to growing demand for copper in industries like electric vehicles.

The President is also seeking to positon Zambia as the breadbasket of southern Africa, transforming more than one million hectares of the country into agricultural land through an innovative farm block program that would help feed the 500 million population of Zambia and her neighbours.   

The foundation for everything, however, is good leadership. President Hichilema, who made his name in business before turning his hand to politics, refers to himself as the country’s Chief Marketing Officer. Investors have responded positively to the transparent and consistent policy environment he has fostered, as well as efforts to more actively engage and consult business through initiatives such as the Public Private Dialogue Forum (PPDF) and the Presidential Delivery Unit( PDU).  

President Hichilema has been steadfast in prioritising the stabilisation and improvement of the economy so that government can increase spending on public services and raise citizens’ living standards. Over the past three years a huge amount of energy has been channelled into tackling Zambia’s debt – and with good reason. Not only did the 2020 debt default seriously damage Zambia’s reputation among investors but critically between 2018 and 2021 debt repayments increased from 20% to 38% of the national budget, while the allocation to areas such as health and education fell.

In August 2022 the government secured an agreement with the International Monetary Fund (IMF) for a US$ 1.3 billion extended credit facility which has recently been increased to around US$1.7 billion. Government has since restructured US$13.6 billion in debts, cut US$ 900 million from the total and spread payments over a longer time period to ensure the country has a sustainable route forward that gives it the space to invest in public services.

Meanwhile, a robust programme of business reforms and support systems has been rolled out, from boosting market access for local exporters to aboliting double taxation in the mining sector, and launching online applications for both local and international investments through the ZDA.

Hichilema’s government has also positioned the country for long-term, sustainable growth, clamping down on endemic corruption and introducing free education for all primary and secondary school children to become the business leaders and entrepreneurs of tomorrow.

Those who follow Zambia’s progress closely will know that despite all this progress, 2024 has brought unprecedented challenges for the country in the form of an historic drought. This is one of the biggest natural disasters to hit Zambia in modern times, not only threatening food security for more than a million households but also creating challenges in the energy sector, given the prominence of hydropower in our supply.

As the saying goes you should ‘never let a crisis go to waste’ and government has quickly responded by rolling out a raft of measures that are designed to not only alleviate pressure on struggling citizens but also to make the country more resilient against future disasters. These strategies range from promoting early maize cultivation and drought resistant crops, to removing import duty and VAT on solar equipment, as well as fast-tracking large-scale solar plants like the 100MW Chisamba Solar Project in Central Province.

Once again, we are confident that good leadership will see us through this crisis and that the end result will be more sustainable and resilient agriculture and energy sectors that are ready to meet the challenges of tomorrow. There is still much to do in the remaining two years before Zambia’s next general elections and so this momentum must be maintained at all costs. After all, we have a fast-growing population, so strong economic growth and job creation are essential. Today, however, it is worth recognising just how far Zambia has come since we re-opened for business.

This article originally appeared on African Business

World Bank Commits $100 Million to Boost Zambia’s Digital Infrastructure

The World Bank has committed $100 million to boost Zambia’s digital infrastructure and expand internet access across the country. Announcing the Digital Zambia Acceleration Project (DZAP), World Bank Managing Director and Chief Administration Officer Wengcai Zhang emphasized the project’s goal of increasing internet access and digitally enabled services.

During a courtesy visit to Zambia’s Technology and Science Minister Hon. Felix Chipota Mutati, Mr. Zhang outlined that the DZAP will be financed through a combination of national and regional International Development Association (IDA) funds, supplemented by $20 million in unguaranteed commercial financing. The initiative will focus on expanding broadband, last-mile infrastructure, and digital public infrastructure to enhance efficiency in both public and private sectors.

Mr. Zhang highlighted the importance of digitalization in high-impact sectors and the nurturing of employment-ready digital skills. He also announced that the World Bank Board is expected to approve the project by March 2025. In the meantime, a Project Preparation Advance of $6 million is being processed to support initial activities.

The project will establish a Project Implementation Unit within the Smart Zambia Institute, aimed at driving cross-government digital initiatives. Mr. Zhang also expressed support for Zambia hosting the World Skills Africa Competition in Livingstone in April 2025, underscoring its global significance.

Minister Felix Mutati thanked the World Bank for its financial support, noting the critical role of the $6 million Project Preparation Advance in bridging gaps in the Technical Education, Vocational and Entrepreneurship Training (TEVET) sector.

The meeting was attended by World Bank Zambia Country Manager Achim Fock and Milner Makuni, Director of Communication in the Ministry of Technology and Science, highlighting the collaborative effort to propel Zambia’s digital future.

This article originally appeared on TechAfricaNews

Interview with Hakainde Hichilema President of the Republic of Zambia

Investing in Zambia: Opportunities, Growth, and Sustainable Development Await

Your policies, since assuming office, have undeniably transformed Zambia’s economic trajectory. To what extent has this transformation been aided by global investment, and why?

Our primary goal was to restructure the economy and reignite growth, given its stagnant state prior to our tenure. Central to this endeavour was the imperative of attracting investment. Investment, in all its forms — domestic, regional, and international — stands as a cornerstone of economic development and progress.

We embarked on a multifaceted approach to attract investments, recognising the need to address existing impediments. It was crucial to cultivate an environment conducive to investment, anchored in the rule of law and bolstered by attractive and consistent policies.

For instance, we revamped the mining policy to align with global standards, ensuring competitiveness and stability. This strategic shift yielded remarkable results, with increased in- vestments and commitments pouring into the sector.

Consider the case of First Quantum Mines, which, following policy changes, invested substantially in nickel and copper mining projects, amounting to approximately $1.3 billion. Similarly, Lumina Mines pledged an additional $2 billion investment, reflecting renewed confidence in Zambia’s investment climate.

President Hichilema: “Investment, in all its forms… stands as a cornerstone of economic development and progress.”

Beyond the mining sector, investments have surged in agriculture, tourism, and energy. Small policy adjustments, such as visa fee revisions, have catalysed tourism growth, evidenced by soaring occupancy rates across the country.

In agriculture, we have successfully attracted both domestic and global investors, driving growth and innovation. Likewise, in the mining sector, both brownfield and exploration investments have flourished, promising new opportunities and economic expansion.

In the energy sector, increased investment pledges signal not only support for our domestic needs, but also our ambitions to become a regional energy exporter.

Speaking about the establishment of the Ministry of Green Economy and Environment: were you personally responsible for its creation, and what prompted its formation? Furthermore, what are your expectations regarding its role in attracting foreign investment to bolster Zambia’s economy and enhance the well-being of its citizens?

Indeed, the Ministry of Green Economy represents a novel addition to our government infrastructure, intro- duced during our tenure. Recognising the urgency of addressing climate change and implementing mitigation measures, we took the initiative to consolidate various entities operating in this domain under one umbrella ministry.

This deliberate decision stemmed from the need to streamline efforts and allocate adequate resources and expertise towards combating climate change. Previously, our approach to climate mitigation measures lacked coherence and coordination. Establishing a dedicated ministry with a designated minister and team was essential to focus and intensify our efforts in this critical area.

Moreover, we recognise the intrinsic value of promoting environmentally sustainable practices, especially within industries such as mining and energy. By prioritising green initiatives, including hydro, solar, and wind energy projects, we aim to not only reduce our carbon footprint, but also enhance economic growth.

Furthermore, transitioning from raw mineral extraction to value addition aligns with our vision for sustainable economic development, job creation, and the stimulation of ancillary industries.

“ZAMBIA’S ENGAGEMENT WITH CHINA AND OUR RECENT DEBT RESTRUCTURING AGREEMENT EXEMPLIFY OUR COMMITMENT TO ECONOMIC GROWTH, DEVELOPMENT, AND REGIONAL COOPERATION “

Additionally, the Ministry of Green Economy will play a pivotal role in managing carbon credits in a structured and professional manner, ensuring that revenues generated are reinvested in environmental conservation efforts.

Thank you for shedding light on the recent agreement between Zambia and Chinese businesses, amounting to approximately 3 billion dollars in investment during a recent visit to China. Could you elaborate on the advantages of strengthening ties with China?

Certainly. It's imperative for us, as Zambia, to emphasise that we are open to conducting business with all nations, provided we can find common ground and mutually beneficial arrangements. Engaging with one country does not preclude us from engaging with others — it’s a fundamental principle of our foreign policy. Our foreign policy rests on two pillars: peace, security, and stability, which we advocate for domestically, regionally, and globally, and economic diplomacy, centred on fostering trade and investment. These two pillars complement each other, as stability enables us to focus our resources and efforts on development and investment, thereby addressing the needs of our citizens, including education, healthcare, and support for vulnerable populations.

ZIB’s Choolwe Chimbomba speaks to Minister for Green Economy and the Environment Collins Nzovu for BackChat [watch the full episode here].

Our relationship with China has deep historical roots, predating our independence in 1964. Post-independence, collaborative efforts between Zambian and Chinese leaders, such as the construction of the Tazara Railway, have laid the groundwork for ongoing cooperation. The recent agreement reflects our commitment to revitalising critical infrastructure, including the Tazara Railway corridor, which provides us with vital access to the Indian Ocean — a gateway for trade.

Our engagement with China is guided by four key objectives. First, we seek to mobilise capital to meet our investment needs. However, we emphasise the importance of fair lending terms, as Africa often faces discriminatory lending practices. Second, we aim to leverage Chinese technological advancements to drive innovation and growth across various sectors of our economy. Third, we explore opportunities for joint ventures, particularly in the mining sector, to add value locally and expedite economic development. Finally, we prioritise value addition to our natural resources, promoting sustainable growth and job creation.

Regarding the recent debt restructuring agreement with state creditors, valued at 6 billion dollars, it represents a significant milestone in our economic recovery efforts. By reducing our debt service obligations, we create fiscal space to allocate resources to critical areas such as education, healthcare, and infrastructure. This agreement not only improves our capacity to invest, but also enhances our attractiveness to foreign investors by demonstrating our commitment to fiscal responsibility and sound economic management.

Moreover, our successful debt restructuring sets a precedent for other African countries facing similar challenges. By sharing our experiences and lessons learned, we hope to support fellow nations in navigating their debt burdens and fostering sustainable economic growth. Our collective efforts within the G20 framework underscore the global nature of our challenges and the importance of collaborative solutions.

In conclusion, Zambia’s engagement with China and our recent debt restructuring agreement exemplify our commitment to economic growth, development, and regional cooperation.

This agreement marks a significant milestone in our efforts to address the challenges posed by our debt burden. Initially, when we assumed office, debt stood as a major impediment to our economic progress, stifling growth and development prospects.

“BY PRIORITISING GREEN INITIATIVES, INCLUDING HYDRO, SOLAR, AND WIND ENERGY PROJECTS, WE AIM TO NOT ONLY REDUCE OUR CARBON FOOTPRINT, BUT ALSO ENHANCE ECONOMIC GROWTH”

Through the Zambia Debt Restructuring Project, we have dedicated considerable efforts, resources, and time to renegotiating our debt obligations. This restructuring initiative has yielded substantial results, providing us with much needed fiscal space and flexibility. Over the next decade, instead of facing the daunting task of servicing a 5 billion dollar debt, we will only be required to allocate 750 million dollars —a remarkable reduction that significantly eases our financial obligations.

This newfound financial freedom allows us to redirect resources towards vital sectors such as education, healthcare, infrastructure, and clean water supply. Previously, our ability to invest in these critical areas was severely constrained by our debt burden. However, with the successful debt restructuring, we can now prioritise these sectors and pursue initiatives that promote sustainable development and improve the well- being of our citizens.

Furthermore, the debt restructuring agreement sends a positive signal to foreign investors, enhancing our appeal as a viable investment desti- nation. By demonstrating our com- mitment to fiscal responsibility and sound economic management, we instill confidence in investors, fostering an environment conducive to investment and economic growth.

Our experience with debt restructuring serves as a valuable lesson for other African countries grappling with similar challenges. As a pioneer within the G20 framework, we hope to inspire and guide fellow nations in their debt management endeavours.

This article originally appeared in Global Investor

Zambia to exit sovereign default as bondholders back restructuring

Zambia is closer to ending almost four years in default on its sovereign debt after nearly all holders of the southern African nation’s US dollar bonds voted to approve a long-delayed restructuring plan.

Holders of more than 90 per cent of the nearly $4bn in bonds had already backed the plan by last week ahead of a May 30 deadline, Zambia’s finance ministry said on Tuesday.

The support means Africa’s second-biggest copper producer is on track to implement a restructuring of the debt next month, after its 2020 bond default highlighted growing problems with the international architecture for resolving debt crises in poor countries.

President Hakainde Hichilema’s government finalised a deal on the bonds only in March after overcoming objections by China, Zambia’s largest creditor, that an initial agreement appeared to favour bondholders over other lenders.

“After nearly four years since we initially defaulted on our eurobonds, the close of the restructuring chapter is in sight,” Situmbeko Musokotwane, the finance minister, said.

But while Zambia has also secured relief on over $6bn in debts owed to official lenders dominated by China, the country still has to negotiate terms with more than $3bn of other private debts. These are mostly owed to Chinese commercial lenders.

Zambia has been under pressure to finalise a restructuring in order to continue a $1.3bn IMF bailout, a need that has become more even urgent as a severe drought this year has hit the country’s public finances further.

“Finalising this agreement with bondholders will create the fiscal breathing space necessary for Zambia to remain on a trajectory of sustainable economic growth,” Musokotwane added.

Kristalina Georgieva, managing director of the IMF, issued a call this month for Zambia’s bondholders to support “rapid completion of the debt operation with high participation”.

The bond restructuring will involve cutting the face value of the old bonds by more than a fifth while pushing out maturity dates and payment relief. 

Bondholders will receive new debt including a bond that will increase payouts in the years ahead if Zambia can outperform economic targets or the IMF judges that it can carry more debt.

Investors are betting that other lengthy sovereign defaults carried over from recent years are closer to being resolved this year, including Ghana and Sri Lanka. 

But the delays have meant many have grown sceptical of a G20-backed process to overhaul debt workouts that was open to poorer countries such as Zambia and Ghana. The Common Framework was meant to improve co-operation between Chinese creditors and western official lenders, but so far has struggled to do so.

“The issue with the Common Framework was that getting everybody into the room meant getting China into the room,” which backfired when China did not participate as planned, one emerging-market debt investor said. “It was well-intentioned, but it was poorly designed.”

This article originally appeared in Financial Times.