Lobito Corridor Railway Line Linking Zambia, the DRC, and Angola Supported by the US and EU

Zambia is one of three countries at the heart of a planned trans-African railway line connecting southern Democratic Republic of Congo (DRC) and northwestern Zambia to regional and global markets through the port of Lobito on Angola’s Atlantic Coast.  

The original railway line, which will be used as the foundation for the Lobito Corridor, was first constructed early in the twentieth century but severely damaged during Angola’s civil war. The new projected line will run along the existing railway for 1,300km across the country, connecting the Lobito port to Luau in eastern Angola. It will then extend another 400km through to Kolwezi in the DRC and Zambia, in the heart of the copper belt region.

Presidents Tshisekedi, Lourenço and Hichilema at the ceremony for the concession transfer the corridor (DRC Presidency)

A Partnership of Countries and Companies

On 4 July, the presidents of the three countries – Zambia’s Hakainde Hichilema, DRC’s Félix Tshisekedi, and Angola’s João Louenço – gathered at the Lobito Corridor Ceremony to mark the official transfer of operational concession for the railway line and mineral terminal to the Lobito Atlantic Railway (LAR) consortium joint venture company.

LAR is comprised of Trafigura, a market leader in the global commodities industry, Mota-Engil, an international construction and infrastructure management company, and Vecturis SA, an independent rail contractor.

Jeremy Wier, speaking on behalf of the LAR concession companies, described the corridor as “a partnership between the private and public sectors”, as well as a partnership of three countries and three companies. “We believe the Lobito rail corridor has huge potential to boost the development of sectors along the line including heavy industry, agriculture and mining, creating new jobs and opportunities”, he added.

Trafigura of LAR has revealed its plans to invest $455 million in Angola and up to $100 million DRC. Its plans for Zambia are yet to be announced.

Support from the US and the EU

On 9 September, at the G20 Forum in India, a joint statement was released from the United States (US) and the European Union (EU), welcoming the project and promising the support of the two countries.

As a first step, the US and EU have pledged to launch feasibility studies for a greenfield rail-line expansion between Zambia and Angola. They also promise to upgrade critical infrastructure across sub-Saharan Africa in order to “unlock the enormous potential of this region”.

The region is rich in critical minerals, such as copper, cobalt, manganese, zinc, and lithium. The Corridor would offer the shortest route to transport these minerals from inland to the coast; various routes previously used – such as through South Africa, Tanzania, Namibia, or Mozambique – take longer. The estimated average travel time from southeastern DRC to the coast will be cut from 30 days to eight.

Map of the Lobito Corridor (US Government)

The US-EU statement says, “By significantly reducing the average transport time, the new railway will lower the logistics costs and carbon footprint of exporting metals, agricultural goods, and other products, as well as for future development of any mineral discoveries”.

The Corridor will also be hugely beneficial for the region’s import economy. Mining inputs, as well as agricultural products and consumer goods, can be channelled into the region at greater speed.

Critical to the Green Energy Transition

The Lobito Corridor development is inextricably tied to the global transition towards clean energy systems. A plentiful supply of critical minerals is essential to this shift: the International Energy Agency said clean energy technologies, such as solar photovoltaic (PV) plants, wind farms, and electric vehicles generally require more wind to build than their fossil-fuel equivalents. It is therefore central to the project that critical minerals such as copper, cobalt, and lithium are mined in high quantities in the countries linked by the Corridor.

The new railway line will aid a greener and brighter future in the region in other ways. Rail has a much lower carbon footprint compared to road transport. In a statement released to mark the transfer of the railway services concession, LAR said the development of the rail corridor “promises environmental and safety benefits” by removing trucks from the road and thus reducing border delays and road traffic accidents, as well as cutting air pollution and carbon emissions.

Additionally, the US and EU have said they would cooperate with the three African countries in growing agricultural value chains to enhance local food production for the region’s growing population, as well as pledging support for local Small and Medium Enterprises (SMEs) and economic diversification.

The international and regional communities’ support for the Lobito Corridor project demonstrates its potential as a catalyst for growth and investment in Zambia, as well as for the transition to clean energy globally.  

Vedanta to Resume Production at Konkola Copper Mines with $1 Billion of New Investment

Zambia’s government has agreed a deal that will return ownership of the Konkola Copper Mines (KCM) to Vedanta, four years after the group left the mine, as part of new initiatives to drive massive growth in the mining sector.

In 2019, then-President Edgar Lungu’s pursuit of nationalised mining involved seizing control of KCM from Vedanta, with the Popular Front (PF) government using its 20 per cent stake in the mine to place KCM in provisional liquidation.

Vedanta launched a legal battle, and KCM struggled under state control. Incentives under PF rule such as royalty increases, double taxation and import levies thoroughly undermined the profitability of the Zambian mining sector. As opposition presidential candidate, Hakainde Hichilema assured voters he would restore the major contribution Zambia’s mines had once made to the economy.

Edgar Lungu lost his bid for re-election in 2021 to opposition leader Hakainde Hichilema and his UPND ‘New Dawn’ party. It was reported in June 2022 that President Hichilema’s government was looking for a new investor in KCM and other major mines, as part of efforts to reanimate the copper sector.

Minister of Mines and Minerals Development Paul Kabuswe said in November 2022 that any solution for KCM would have to involve Vedanta. Last Friday, Kabuswe told reporters that he was “counting days, it’s no longer months”, referring to the return of Vedanta.

With KCM back under its ownership, Vedanta is pledging investments totalling $1 billion over five years to revive the site, a key clause in the government’s conditional agreement with Vedanta.

Copper at the Vedanta KCM warehouse. (Bloomberg)

Vedanta will also finance payments totalling $250 million to local creditors of the mine, in order to restore its majority state. The group will also increase KCM mineworker salaries by 20%, and issue a one-time payment of K2,500 to each mineworker.

Announcing the deal, Mines Minister Paul Kabuswe said, “Vedanta will return to run and resuscitate the operations of KCM as the majority shareholders”.

Anil Agarwal, Vedanta’s owner, said that the goal of the mining company would be to “become a fully integrated producer of copper and cater to India’s fast-growing demand while also making Zambia the leading producer of copper in the world”. Vedanta has pledged to double annual production to 100,000 tonnes, with the goal of reaching 200,000 tonnes as quickly as possible.

Zambia is currently the second-largest producer of copper in Africa, and the seventh largest in the world. Its ore deposits are among the highest quality and largest in the world. Many of its deposits have yet to be mined, owing to historical largely open pit mining not affecting deeper veins of copper ore.

Zambia’s copper offers opportunity for new mining innovation and investment as the green energy revolution continues to gain pace. Demand for copper, as a conductive metal present in almost all electrical components, is increasing at an unprecedented rate. It is estimated that the global copper industry needs to invest more than $100 billion in mines to match the world’s annual supply by 2030, a major opportunity for copper-rich nations such as Zambia.

Zambian copper ore. (Copperbelt Katanga Mining)

Looking to capitalise on copper demand, the government has committed to enormous increases in output, as a strategy to rapidly develop Zambia’s economy through increased export trade and local employment. President Hichilema has set Zambia the target of more than tripling its copper production over the space of a decade.

Zambia, which produced 800,000 tonnes of copper last year, aims to be producing more than 3 million tonnes by 2032. Kabuswe and the Mining Ministry have brokered a series of contracts designed both to achieve this goal while enriching local populations.

Canadian-based mining company Barrick Gold raised the classification of Zambia’s Lumwana copper mine to ‘Tier One’, signifying reserves of more than 5 million tonnes, in July 2023, after investing more than $4.3 billion into its Zambian sites.

British firm Moxico Resources committed $100 million to expanding the Mimbula Minerals copper leaching plant this March, creating 900 new jobs and maximising the efficiency of some of Zambia’s largest mines in the process. Mimbula is expecting to increase its extraction rate by more than five times its current output.

In December 2022, President Hichilema announced an agreement worth $150 million with KoBold Metals, a US-based artificial intelligence firm, to explore and develop the vast underground deposits of Mingomba mines, estimated to contain 246 million tonnes of copper and cobalt ore at a grade six times higher than that found in Chile, currently the world’s top copper producing nation.

Mingomba copper mine, where KoBold metals has begun to explore underground deposits. (Mining for Zambia)

Zambia is not just expanding its contribution to the green revolution; the country has also been brokering bilateral deals to accelerate its own transition to renewable energy. These deals intend to expand and diversify the renewable energy self-sufficiency of Zambia, which currently relies on hydropower for 80% of its energy.

In February, President Hichilema and a UK energy commission finalised a $2 billion green energy joint ventures agreement, designed to drive sustainable economic growth, known as the Green Growth Compact. Two months later, Abu Dhabi renewable energy firm Masdar signed a joint venture agreement with ZESCO, Zambia’s state owned power company, to develop solar energy capacity worth $2 billion in Zambia.

Barrick Gold to Upscale Production at Lumwana Copper Mine

 The Canadian-based mining company Barrick Gold has announced that it will be transforming Zambia’s Lumwana copper mine into a ‘Tier One’ asset. Tier One classification means that the mine has been recognised with a reserve potential of greater than 5 million tonnes of contained copper and C1 cash costs per pound in the lower half of the industry cost curve, enabling it to upscale production.

Barrick initially acquired the mine in July 2011 and have been focussing on gradual expansion since 2019, however, due to the recent discovery of new expansion possibilities, the Barrick president and chief executive Mark Bristow said Lumwana’s full potential was “only now being revealed”. 

The Zambian mine is considered as one of the largest copper supplies in the world with an estimated 5.014 billion pounds of proven and probable copper reserves of ore grading 0.68% copper. The mining licence held by Barrick covers 1,355km², which is equivalent to 253,213 football fields or works out to nearly twice the size of Singapore. 

Additionally, informed by an updated geological model and the latest indications of higher ore grades at Kababisa and Kamaranda, Barrick has increased their investment into Lumwana, both upscaling the production and extending the life of the mine from 2042 to 2060. 

Image: Barrick Gold

This investment towards increased copper production will directly result in a greater contribution to the nation’s economy.  

 Investment into the Local Community 

So far, Barrick has purchased approximately US$4.3 billion in goods and services from local Zambian registered businesses since the Lumwana mine went into production in 2011, with $432 million being spent on local procurement expenditure in last year alone (83% of the mine’s total procurement spend). 

Moreover, Barrick has repeatedly directed portions of the mine’s profits into the local Zambian community, adding essential infrastructure to Lumwana’s education, transport, water supplies, hospitals and more. The company has also launched a “Business Accelerator Program” which aims to build the capacity of Zambian contractors in the mining supply chain and increase job security. The program assists their expansion plans, diversifies their markets, and fosters independence and sustainability beyond Lumwana's lifespan.  

Finally, Barrick has significantly contributed to Lumwana’s community through employment, and the mine currently holds industry leading levels of local workers with 99.3% of employees and 98% of contractors being Zambian nationals. Overall, US$176 million has been paid in form of salaries to Zambian nationals since 2019. 

Importantly, as Barrick upscales their production, more money will be spent on local businesses, more donations will be made to the local economy, and more Zambians will be employed- all at a faster rate. 

Photo: BGStock72 / Shutterstock

Future Possibilities  

As international companies and banks look to safer investments due to current economic instability, almost all look towards purchasing shares in gold, with many investing in Barrick, as the world’s second largest gold company.  

Barrick’s growth is encouraging news for the Lumwana mine, meaning that production might even be extended past 2060, and affirming that the probability of the company selling the copper reserve is very low. 

Amazingly, this increased investment comes after the gold giant prepared to sell the copper mine in 2019 due to tax changes under Edward Lungu’s government.  

The previous president attempted to enforce a 5% copper import duty, plans to replace value-added tax with a non-refundable sales tax, and an added royalty on copper productivity. Following this, Barrick broadcast that it was looking into Chinese investors with plans to sell Lumwana by the end of 2019. The sale process was indefinitely halted after the current government introduced tax breaks in 2022, immediately following this Barrick scaled up production, specifically noting that the revised tax regime freed up cash flow to invest in Lumwana. 

In transforming the Lumwana copper mine into a Tier One asset, Barrick aims to achieve the Government’s target of reaching 3 million tonnes (MT) of copper production in the next 10 years through increased investment into the mining process. 

Investment into Zambia

Barrick’s recent investment into Zambia is part of a larger international trend with companies announcing new ventures into the Zambian economy almost daily, signalling an increased level of trust for the stability of the nation’s economy under President Hakainde Hichilema’s administration. 

In an interview discussing the mine, Bristow stated that “We all agree that President HH has brought a certain stability to the country, he has definitely made the country more investable”, a comment which emphasises a global faith in Zambia’s economy and government. 

Zambia is Ready for Business, Assures President Hichilema

Last week was a busy week for Zambia’s President Hakainde Hichilema and one that is already being considered a significant milestone in the country’s return to economic stability and prosperity. The President accepted an invitation to attend the coronation of King Charles III on Saturday 6th May and made the most of his trip by pursuing a week of business talks with delegates and investors across the UK and France.

 President Hichilema announced on Friday evening that “After a week of over 20 successful meeting and engagements in England, Scotland and France, we have departed from London and are heading back home. We are positive that these engagements will yield positive growth and development for the Zambian people”.

President Hichilema, spotted at Heathrow airport on his way back to Lusaka.

On Tuesday, 9th May, President Hichilema met with the CEO of the UK government’s finance institution, British International Investment (BII), Nick O’Donohue. BII has to date invested more than $100 million in the Zambian economy, especially in the agricultural, energy and economic sectors. President Hichilema assured Mr O’Donohue that the BII’s “investments are safe”, and that Zambia was “looking for mutually beneficial partnerships based on common values and interests for the people of Zambia and the UK”.

 On Wednesday, 10th May, President Hichilema held a meeting with Scotland’s First Minister, Humza Yousaf, to strengthen bilateral ties between the nations; HH was delighted to announce that Scotland had committed £1 million to the construction and maintenance of an academic economic research facility in Zambia.

 That afternoon, Mr. Hichilema met with Emmanuel Macron, President of France, who sits on the board of the Paris Club of Creditors and the G20 intergovernmental forum. Also present at the meeting were Zambia’s Ministers of Foreign Affairs and International Cooperation, Stanley Kakubo, and of Finance and National Planning, Situmbeko Musokotwane, and some have speculated that some significant trade agreements were tabled at the meeting. All President Hichilema was willing to tell the press was that state debt relief and investment were discussed, and that the meeting was successful.

Presidents Macron and Hichilema before their meeting.

 After a number of days of meeting with world leaders, CEOs of global financial institutions and economic experts, President Hichilema headed to the Zambia Investor Forum and Africa Debate in London on Wednesday and Thursday, both organised by Invest Africa, to speak with prospective investors. Mr Hichilema began his keynote speech on Wednesday by reiterating that his government was “committed to reforms – after all, we were elected on a ticket of change, to improve the lives and livelihoods of our people […] through the economy”.

President Hichilema delivering his keynote speech.

 President Hichilema said that his government would pursue private sector partnerships to improve the economy and, therefore, the wellbeing of Zambia and its people. He said that the New Dawn government had shown “clear intent” in its meetings with the International Monetary Fund, a major U.S. financial agency and institution which has been pushing for creditors to agree to a framework for Zambia’s debt relief.

Finance Minister Situmbeko Musokotwane urged major investors and economic gurus present at the event to “push for this debt relief to take place”, as Zambia had met all requirements set out in the framework submitted by creditors. Zambian and Western financial figures alike have been frustrated by an apparent reluctance from Chinese creditors to agree to debt relief, though the state visit of President Hichilema and Ministers Musokotwane and Kukubo may prove to be what is needed to move talks forward.

Commerce, Trade and Industry Minister Mulenga announced that the government had set aside 800,000 hectares of land for agricultural development. Zambia enjoyed a record maize harvest last year and will be hoping to shatter that record after receiving assistance from a multi-partner group led by USAID (the United States Agency for International Development) that has put in place the necessary infrastructure to fight against transport issues that have historically contributed to 30% of Zambia’s post-harvest losses. Seven Smart Integrated District Aggregation Centres (SIDAC) have been built to process and store 100,000 metric tons of maize and other grains that would otherwise go to waste. National and international initiatives have also successfully raised awareness about crop diversity in the country, ensuring agricultural stability, sustainability and soil re-enrichment.

Minister Mulenga at the Zambia Investment Forum.

Foreign Affairs Minister Kakubo also reminded investors that Zambia’s vast quantities of minerals “are in the ground, and most of them are not yet explored”. The exploration that has been done shows that Zambia has 6% of the world’s copper reserves and huge deposits of cobalt: two metals that will continue to grow in value as the world transitions to green energy and electrically-powered vehicles.

Zambia is also known for its rich deposits of gold, iron, nickel, manganese and emeralds. The country is the world’s seventh-largest producer of copper, the sixth-largest producer of cobalt, and boasts the largest emerald ever mined. The New Dawn government has recognised the potential for its mineral reserves to transform the nation’s fortunes, making mining one of the primary sectors driving economic growth and benefitting people across the country. Kakubo stressed that he and other senior figures in the mining industry were looking for partnerships to aid exploration into mineral deposits and expansion of the country’s mines. In May 2022, First Quantum Minerals approved plans for a $1.25 billion expansion of the Kansanshi copper mine after “renewed confidence” in Zambia’s economic climate, and other major deals have followed since. 

On Thursday, President Hichilema attended Invest Africa’s Africa Debate, an investment summit focused on the African continent whose themes included “the future of African trade, discussing and debating the continent’s trade profile”. Mr. Hichilema gave a keynote speech alongside Andrew Mitchell, the UK Minister of State in the Foreign, Commonwealth & Development Office (FCDO). With a touch of humour, Mr. Hichilema spoke of the importance of education, saying that without the education he had received, instead of being President of Zambia he would “be in the village with 8 or 10 wives”. He reminded the audience that waning diplomacy, the decline of democracy and insufficient protection of human rights were not good for business, highlighting the importance of “peace, security, stability”. He said it was the responsibility of those in power to create a landscape that invited investment and economic growth.

President Hichilema deep in conversation at the Africa Debate.

Karen Taylor, CEO of Invest Africa, who hosted the Investor Forum event, said that “since President Hichilema took office in August ’21, Zambia has undergone a significant shift, change and focus in its economic policies and its approach”. She said that Invest Africa would continue to market Zambia as an investment destination, and that the steps taken by the government had been a significant factor in many organisations’ decision to invest in Zambia. Ms. Taylor applauded the economic reforms the UPND government had made, insisting that this had created an “enabling environment” for foreign direct investment. Mr. Hichilema said after the event that he was “humbled by the huge interest” in Zambia’s economy, and the attendance of “hundreds of key business players from various economic sectors”.

 During the Zambia Investor Forum, Zambian Ministers “held a series of meeting with key players in the agriculture, tourism, mining, infrastructure, and energy sectors”, negotiating “investment in our country that will create opportunities and jobs for our citizens,” said Mr. Hichilema. After the event, Mr. Hichilema met with UK Foreign Secretary, James Cleverly, who “expressed how impressed the UK is with Zambia’s development trajectory”, and “reaffirmed the UK government’s support for Africa to have a bigger voice at the G20”. President Hichilema said the meeting was productive, and promised that the government would “continue to encourage joint ventures to ensure that these investments benefit as many of our people as possible”.

President Hichilema with Minister Cleverly at their meeting.

Kamala Harris Celebrates Innovative Panuka Farm

Kamala Harris, during her successful trip to Zambia last week, visited a farm that is successfully experimenting with innovative agricultural techniques.

Panuka Farm lies outside of Lusaka. Founded in 2017 by its Managing Director, Bruno Mweemba, it focuses on bulk production and supply of high-value crops. The farm’s most popular products are English cucumber, sweet peppers, and iceberg lettuce.

Harris’s visit to Zambia was one stop on her weeklong trip to Africa, which also included visits to Ghana and Tanzania. High on the agenda was concerns about food insecurity as a result of climate change – a topic especially pertinent to Zambia and its agricultural economy. In visiting Panuka Farm, Harris therefore had an opportunity to explore what the future of innovative food production across Africa could look like.

Bruno Mweeba and Kamala Harris at Panuka Farm (Panuka Farm Facebook)

Mweemba, as well as being the founder and Managing Director of Panuka Farm, is an environmental finance expert who has worked previously in biodiversity conservation and climate change finance. He described Panuka as his “laboratory” in which to test and showcase the practical side of conservation and climate-smart agricultural theory. Mweemba is well-placed to be at the forefront of this work, having also been working over the past three years as an advisor for the United Nation’s Development Programme’s Biodiversity Finance Initiative (UNDP-BIOFIN).

It is abundantly clear how Mweemba’s vision has played out in the operations of Panuka Farm. The farm is innovative in its green energy use, agricultural technology, and community links in three major ways.

Firstly, Panuka has been completely solar powered ever since its conception in 2017. As well as providing an active response to the climate crisis, being completely off-grid means the farm is not susceptible to the fluctuations of Zambia’s (mostly hydro-reliant) energy supply, which has been in some distress in recent months.

Furthermore, the farm is very careful about its water usage. Mweemba and his employees have been experimenting with new techniques and technologies, including drip irrigation, harnessing the power of gravity, and an ongoing project of rainwater harvesting. At Panuka, water use is at its most efficient.

As well as being a pioneer in green energy and innovative agricultural technology, the farm also has a strong social conscience. This is reflected in its deep ties to the local community: 95% of its workforce comes from surrounding villages. Panuka also runs a successful graduate traineeship. Over the course of six months, graduates from agricultural colleges and universities are trained in farm management at Panuka. It is hoped this scheme will train and inspire the next generation of forward-looking agricultural leaders. 

Harris described Panuka’s techniques as “an example of what can be done around the world”. In a speech she made at the farm, the Vice President stressed the US’s commitment to such work. Significantly, she announced a $7 billion commitment to promote “climate resilience, adaptation, and mitigation” across Africa – part of which will be dedicated to promoting food security. She particularly highlighted the role climate-smart agriculture, like the kind practiced at Panuka, would play in this commitment.

Workers on Panuka Farm (Kent Nishimura / Los Angeles Times)

The Vice President’s remarks are extremely timely, and mirror some of the steps taken by the Millennium Challenge Corporation (MCC) which entered into a compact with Zambia in 2013-18. The MCC is an independent US foreign aid agency which forms partnerships and provides grants to developing countries in order to aid in economic growth and reduce poverty. Through its partnership with Zambia, a grant of $322 million was invested in water supply, drainage and sewage networks, resulting in greatly increased access to clean water and consequently improved sanitation and hygiene.

Three years after the completion of the compact, in December 2021 the MCC selected Zambia as eligible to develop a second compact. A primary area that has been identified by the MCC in hindering Zambia’s economic growth is the country’s current agricultural methods and policies. In October 2022, Mr Panuka met with the MCC team to discuss the second compact. He “provided some insights on how the MCC Compact could be better designed especially on access to finance for smallholding farms”.

According to the farm, Panuka is a Tonga word meaning “clear, innovative, and open to new ideas”. It is clear that it truly lives up to the meaning of its name in its commitment to innovative agricultural techniques, green energy solutions, and commercial prosperity.  

$2 Billion Solar Power Deal Struck with UAE Energy Company

The Abu Dhabi renewable energy company, Masdar, has struck a deal with the Zambian government to develop 2GW of solar energy – estimated to be worth $2 billion – in the country. The joint venture, made in January, has been made with ZESCO, Zambia’s state-owned and largest power company.

President Hakainde Hichilema announced the joint development agreement in a statement on his Facebook page, describing the agreement as “not a loan but a capital injection in which the Zambian people, through ZESCO, will be partners in shareholding”.

The development of these large-scale solar farms will be rolled out in phases of 500MW at a time, and is expected to start in the immediate future.

This is only one of many direct foreign investment deals struck with the Zambian government in recent months. Following just a month after news of the UAE-Zambia deal, it was announced that the UK energy sector would also invest $2 billion in a green energy join ventures agreement. Then, just days ago, ZESCO signed a deal with China’s Integrated Clean Energy Power Company (CiEG) for renewable energy production worth $3.5 billion.

These foreign direct investments are an extremely welcome boost to Zambia’s current energy capacity. An estimated 30% of the population has access to energy. Not only will these investments widen that figure, it will also improve the quality of energy supply experiences by those who are connected.

Zambian and UAE energy delegates at the signing of the Masdar-ZESCO agreement (@HHichilema)

Zambia’s previous reliance on hydropower (estimated to be roughly 80% of Zambia’s energy output) has left the grid struggling following periods of disrupted rainfall and extreme weather. Especially damaging were the critically low water levels in the Kariba Dam some months ago, a resource that is central to the country’s hydropower generation.

It is therefore hard to overstate the importance of President Hichilema welcoming investment from Masdar, CiEG, and others. It shows that the government is looking to diversify its energy supply within the realm of renewables. This diversification will increase its resilience to climate fluctuations which can affect the production of hydropower. By doing so, it is looking forward, not only to a greener future, but also to a more economically prosperous one.

Zambia needs significantly more energy in order to develop its economic potential. Drastically increasing the country’s power is necessary for improving and mechanising the agricultural industry, which is currently rooted in small-scale and traditional farming methods. More generally, closing the energy poverty gap will increase employment opportunities and bolster GDP.

President Hichilema said in a statement on Twitter in January that the Masdar-ZESCO agreement was “unprecedented” and showed “strong investor confidence” in Zambia. The energy deals struck in the months after are proof of this, and point to a bright future for the country’s energy and economy.

President Hichilema Announces Funding for Mimbula Copper Mines

President Hichilema announced on Wednesday that the future of the Mimbula Minerals’ Copper Mine at Chingola had been secured.

In April 2022, British firm Moxico Resources revealed plans for a $100 million expansion of the Mimbula Minerals Ltd. copper mines as part of the Zambian government’s push to expand export tax revenues and generate employment.

Little had been heard of Moxico’s renewed enthusiasm for the mine since the announcement almost a year ago. While visiting Mimbula’s site as part of his local engagement tour of the Copperbelt province, President Hichilema was glad to confirm that the 900 new jobs generated by Moxico’s investment were safe.

The President also disclosed that the government had incentivised partnerships between the mine and local suppliers, and that these co-operatives would be part of the drive to increase the mine’s extraction rate from 10,000 to 56,000 tonnes yearly.

While addressing Chingola residents, Mr. Hichilema also said that the government and Mines Minister Paul Kabuswe were working on deals to finalise investment in Mopani Mines and Konkola Copper Mines (KCM). Updating those present, Mr. Hichilema said that Mr. Kabuswe had secured the necessary funding for Mopani, and that there would soon be news on both Mopani and KCM. Meetings on Konkola, the President said, were to begin on Thursday 16 March.

The Mimbula Copper Project is on the outskirts of Chingola town, and mines a deposit rich in copper oxide and sulphide. Mimbula Minerals is the Zambian subsidiary of Moxico Resources, and was founded specifically to mine the Mimbula deposit.

Moxico currently owns an 85% stake in Mimbula Ltd., the other 15% being owned by local Zambian businesses. Their mining license was granted in 2017 and is valid for 25 years. Mimbula produced their first copper cathode from the mine’s ores in 2020, and has continued to refine at the Konkola tailings leach plant.

Mining at the Mimbula site ceased in the 1970s. in 2011, the Zambia branch of Vedanta Resources bought KCM and immediately began to make enquiries into the revival of the Mimbula mining complex.

Vedanta Mines sought to dissolve KCM in 2022; Mines Minister Paul Kabuswe directed Zambia’s state mining investment firm KCCM-IH to reach an out-of-court solution, which they achieved. Since then, the Zambian Mines Ministry has been seeking new investors for KCM’s four sites at Chingola, Chililabombwe, Nampundwe and Kitwe.

KCM is the largest mining operation in Zambia, and since the Vedanta settlement has been government-managed. Zambia has 6% of the world’s copper reserves, ranking 7th in the world and 2nd in Africa, and copper currently represents 80% of the nation’s export earnings. In December 2022, President Hichilema announced the $150 million backing of KoBold Metals as part of UPND’s 10-year plan to revamp Zambia’s copper facilities and boost copper production from 850,000 tonnes to 3 million tonnes annually by 2032.  

Zambia’s plans to become a global copper powerhouse look more promising than ever – and the mines’ potential is moving from theoretical to actual.

UK Energy Sector Delegation Formalises $2 Billion Investment Package

After 15 months of agreements, talks and negotiations that began at COP26 in November 2021, Zambia’s President Hakainde Hichilema and a Nicholas Woolley-led UK energy commission have finalised a US $2 billion green energy joint ventures agreement. 

Zambian and UK energy delegates outside State House following the agreement. (@HHichilema)

Back in 2021, Foreign Minister Stanley Kakubo and UK Minister for Africa signed a landmark partnership aimed at driving sustainable economic growth that conformed to the environmentally friendly principles of Glasgow’s COP26 climate summit.

Signed in London, the Green Growth Compact outlined expectations of billions of pounds of investments, doubled trade volume between the UK and Zambia, and £100 million ($135 million) of financial resources as part of Zambia’s then-blossoming Small and Medium Enterprises (SMEs) support initiative.

At that time, Vicky Ford’s comments on the deal included an expectation of final British investment induced by the Compact, announcing that “The Green Growth Compact is a landmark agreement that will benefit the UK and Zambia by boosting UK investment in Zambia by up to £1 billion, creating thousands of jobs and supporting green energy production”. The deal signed yesterday has doubled that figure, marking yet another milestone in negotiations to secure a better future for Zambia.

Hon. Stanley Kakubo and Vicky Ford celebrating the Green Growth Compact in London. (future Net Zero)

Nicholas Woolley’s role in Zambia’s green transition is not to be underestimated. The British High Commissioner to Zambia identified at the time of the Compact’s signing that its primary significance was the foundation it provided for “stronger trade and investment […] based on sustainability, mutual prosperity and creating opportunities for business and communities in both our countries”.

Fast forward 15 months, and Mr. Woolley continues to broker UK-Zambia energy agreements to the benefit of both nations, the latest of which is the $2 billion package. The template of the 2021 Compact continues to be used to great effect by UPND and Mr. Kakubo, with both the UK and Zambia’s other investment partner nations.

Mr. Woolley told ZNBC News in a January 11 interview that seven companies were conducting feasibility studies and applying for regulatory approvals. All seven had approved and outlined deals to bring solar and wind energy projects to Zambia to add 2,000 megawatts to the ZESCO grid, and had a 2-5 year completion timeline. The British power companies in question were Hive Green, Western Power, Buffalo Energy, Africa GreenCo, First Quantum Minerals Solar Energy, Vitalite Solar and SolarAid.

Since Hakainde Hichilema’s election in August 2021, First Quantum Minerals in particular has displayed enormous fiscal confidence in Zambia’s economic resurgence. The company operates two mines in Zambia, Sentinel and Kansanshi, the latter of which they invested $1.25 billion in May 2022. First Quantum Minerals has also played an important role in Zambia’s drive to increase nickel production, investing $100 million into its efforts to produce 30,000 annual tonnes of nickel concentrate.

The FQM refinery plant at Kansanshi. (First Quantum Minerals Ltd.)

First Quantum and its six compatriot firms have all passed their feasibility and regulatory assessments, it seems, since the announced figure matches that proposed in January. The finer details are expected to be announced in the coming weeks.

The deal’s announcement comes just over a month after ZESCO signed an agreement with UAE renewable energy firm Masdar for solar projects amounting to $2 billion. That project immediately triggered the installation of a 500 megawatt solar plant, with other planned projects forecasted to generate an additional 2,000 megawatts.

The combined deals will furnish Zambia with 4,000 megawatts of clean, renewable energy – all of which will be non-hydro. Hydroelectric power currently accounts for 85%, or 2400 megawatts, of Zambia’s 2,800 megawatt installed electricity generation capacity.

With decreasing water levels, unpredictable rain seasons and increasingly frequent floods, hydroelectric power is becoming a less reliable energy source, and record low water volumes in Zambia’s Kariba dam in 2022 were the primary cause of recent load-shedding blackouts.

The two deals will significantly totally eliminate Zambian dependency on hydroelectric power once complete, opening the door for renovation works on the 3 major hydroelectric dams that are 49, 50 and 64 years old. The Kariba Dam, Zambia’s largest, was chronically under-maintained over the course of former President Lungu’s administration, to the point where the world-famous New Yorker news magazine published a two-page spread that likened the risk of the dam’s collapse to “the dam industry’s Chernobyl”.

The Kariba Dam in 2016, around the time concern was raised about its condition. (Daily Maverick)

The completed solar farms will represent a 142% increase in Zambia’s generation capacity, guaranteeing constant power now and in the future as Zambia grows, and ensuring that rural and isolated communities will also have access to electricity. It is expected that these packages will also include the funding necessary to introduce the infrastructure needed for effective energy supply, which will have major secondary transport benefits for Zambian citizens living in areas near the solar farms.

Hakainde Hichilema has placed great stress on empowering SMEs to drive equitable Zambian growth, and has recognised the role smallholding farmers can play in Zambian agricultural production to boost the economy and fight African food insecurity.

During her visit to Zambia, U.S. Treasury Secretary Janet Yellen stressed the pivotal impact Zambian smallholding farmers can have on a food chain under constant stress thanks to Russia’s invasion of Ukraine, describing Africa as having “the potential not only to feed itself but also to help feed the world – if the right steps are taken”. With each new deal, investment agreement and public project announced, President Hichilema and his cabinet continue to take those very steps towards a future of Zambian prosperity.

U.S. Treasury Secretary’s Visit Highlights Mylan Labs Success

U.S. Treasury Secretary Janet Yellen’s upcoming visit to African nations will include a tour of the Lusaka distribution centre of Mylan Labs: a company at the forefront of Africa’s fight against disease and a model for international investment in Zambia.

 Accompanying Secretary Yellen on the tour will be President Joe Biden, Vice-President Kamala Harris, Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo and Yellen’s deputy Wally Adeyemo. Such a senior entourage for the Biden administration’s first extended visit to Africa demonstrates the importance of the trip and its goals.

 The trip follows the U.S.-Africa Leaders Summit of December 2022. Biden informed African leaders from 49 countries and the African Union of America’s belief in a strong U.S.-African partnership for the future, saying at the three-day summit in Washington that “The United States is ‘all in’ on Africa’s future”. Finalised at the summit was a $15 billion two-way package of trade and investment deals, signifying a strong future for Zambia and the African continent more widely.

 One of the success stories of U.S. private investment in Africa, Mylan Labs exemplifies the potential of the new slew of deals being agreed between the U.S. and Africa in an attempt to offer African leaders investment choices more sustainable than those presented by China.

 Mylan Labs is a U.S.-based pharmaceuticals brand, whose African branch specialises in affordable anti-malarial and anti-retroviral medication to aid the fight against malaria and HIV. Located at the Lusaka South Multi Facility Economic Zone, the distribution centre was launched in September 2018 and employs 75 Zambian healthcare workers.

 The centre was established with the goal of making medicine more easily accessible to Zambians in need. Mylan is the world’s largest supplier of HIV and AIDS treatments, and then-Minister of Health Chilufya announced that 86% of those in Zambia living with HIV had been put onto a treatment plan after the site’s launch.

 The U.S. Department of the Treasury stated on their website that Secretary Yellen would “tour the facility and highlight U.S.-Africa joint efforts to promote a healthy population, improve global health security, and collaborate to prevent and prepare for future pandemics”.

 A renewed U.S. desire for improved economic and diplomatic ties with African nations comes at an opportune time for Zambia, whose finance minister is exploring financial alternatives to Chinese lending. In September 2022, Zambia announced it would totally cancel 12 projects – half of which would be financed by China EXIM Bank, and another two by ICBC and Jiangxi Corporation, totalling overall to roughly $1.4 billion.

 The $1.3 billion zero-interest loan secured in August 2022 from the UN’s financial agency, the International Monetary Fund, seeks to push general economic growth through recurrent spending as an alternative to the infrastructure-focused projects funded by Chinese investors.

 The IMF has projected a global average of 2.7% economic growth for 2023; for Africa, meanwhile, it has forecasted a mean growth rate of 3.7%. The arrival of new American investment opportunities, Zambian economists hope, will capitalise on and drive this anticipated economic boom in the next phase of Zambia’s recovery and growth in the post-COVID-19 era.

USAID Partnership Transforming Zambia Into Africa’s Breadbasket

According to research undertaken by the United States Agency for International Development (USAID), 80 percent of smallholder farms in Zambia produce maize. Many of these smallholder farms are in isolated, hard-to-reach areas, making it difficult to transport their harvests, which, on an individual scale, are small, but collectively offer huge opportunity for the Zambian economy and nutritional wellbeing across East and Southern Africa.

 In bumper years, such as the 2021/22 record maize harvest in Zambia, enormous volumes of excess maize have been produced overall by smallholder farms, leading to as many as 1.5 million metric tons of surplus corn being available for export. In spite of this, issues around storage and transport have led to maize contributing to 30% of Zambia’s total post-harvest losses.

The struggle to convert surplus maize into income for regional smallholder farms and the broader Zambian agricultural economy, however, is set to undergo extraordinary transformation in the immediate future.

In December 2022, USAID announced via the Prosper Africa Initiative that it would be joining a multi-pronged collaboration whose aim was to address the global food security crisis in the wake of the war in Ukraine and its impacts on food supply chains. Heading this joint effort would be: Africa-Global Schaffer, an agribusiness and energy firm; bechtel.org, the social impact branch of infrastructure firm Bechtel; and Empowering Farmers Foundation, the social impact arm of South Africa-based firm Export Trading Group. 

This new partnership was unveiled at the US-Africa Leaders Summit 2022 held in Washington, D.C., from December 13th to December 15th, with its primary focus being to “promote shared prosperity by increasing the supply and quality of maize on the African continent”. USAID pledged to match its private sector partners’ investments in African food security 1:1. The first phase of the program will build Smart Integrated District Aggregation Centres (SIDAC) in areas where improving harvests will have the greatest impact on local economies and, more broadly, the East African trade routes to connect sellers of high-quality maize with buyers.

For Zambia, this will mean seven centres opening by the May harvest season of 2023, scaling up to twenty-three centres in the near future. The effects of such investment and improvements to infrastructure will be colossal: initially, around 100,000 metric tons of maize and other grains that would otherwise go to waste will be stored and sold each growing season. 

Not only will this have transformative financial implications for farmers, but it will address grain price spikes in the region, mitigate food shortages, and prevent as many as 800 metric tons of carbon from going to waste -  the equivalent of more than 80,000 gallons of diesel.

The potential of homegrown maize has become the cause of greater interest since the onset of fertiliser and food shortages triggered by the war in Ukraine. Speaking of the expectations of their union with USAID and Prosper Africa, Stu Jones, Bechtel’s Corporate Relations Manager, said, “our efforts will save lives, improve the future of the continent, and ensure sustainable outcomes”. Speaking with the Zambia News and Information Services, Julie Mellin, USAID Acting Public Affairs Officer, said that the partnership would help promote shared prosperity by increasing the supply and quality of maize on the African continent.  

New supply chains enabled by the SIDAC programme will meet immediate demand, if the trends of 2022 repeat for the 2023 harvest. Faced with food shortages following the 2022 droughts, East African nations requested over 500,000 metric tons of maize, whilst regional neighbours, including Malawi, Angola, DRC, Mozambique and Namibia, requested an additional 800,000 metric tons, according to then-Agriculture Minister Reuben Mtolo in an interview with Farmers Review Africa. The 2022 maize harvest in Zambia, he added, created carryover stocks of surplus grain of 1.5 metric tons, thanks to the Food Reserve Agency’s efforts. The SIDAC programme will build on the Food Reserve Agency’s model to further reduce food waste.

European Union (EU) funding has already accelerated sustainable farming projects in Zambia, under the Sustainable Intensification of Smallholder Farming Systems in Zambia (SIFAZ) project. Established in 2018, SIFAZ was the result of a partnership between the UN’s Food and Agriculture Organisation (FAO), Zambia’s Ministry of Agriculture (MoA) and the International Maize and Wheat Improvement Centre (CIMMYT), and has begun to research agricultural methods for smallholder farms that were initially conceived by Feed the Future’s ‘Africa Research in Sustainable Development for the Next Generation’ (Africa RISING). By September 2022, a SIFAZ vision for sustainable maize yields had been approved by Zambia’s National Advisory Committee for the Approval of Candidate Technologies or Agronomic Practices.

The programme offered 3 agricultural formats that would grant farmers better yields while nurturing their soil – two involving incorporating grain legumes into maize fields to improve soil nitrogen content and pest management, and the third advising maize be grown on raised soil beds to improve soil oxygenation in flood-prone tracts of land. All three principles raised awareness among the Zambian farmer community of the importance of conservation agricultural approaches, namely minimal soil disturbance, soil enrichment through crop residue, and greater crop diversity.

Christian Thierfelder, a CIMMYT principal cropping systems agronomist based in southern Africa, explained the importance of these new agricultural principles to SIFAZ: “The official clearing of these transformative cropping technologies is a huge milestone for the project and for Zambia’s resource-poor farmers”. Working closely with the MoA and FAO, he added, CIMMYT was “planning research trials, demonstrations and promotion to reach 20,000 farmers as a first step”.

The significance of programmes like SIFAZ is difficult to overstate: approximately 300 million smallholder farmers grow maize in Sub-Saharan Africa, relying only on their soil and the seasonal rains. Per the Consultative Group on International Agricultural Research (CGIAR), maize covers up to 75% of cropland in East and Southern Africa and the Global Yield Gap Atlas (GYGA) estimates that the agricultural sector in Zambia supports livelihoods of 85% of the population. The recent announcement in November 2022, therefore, that the EU would grant SIFAZ an additional EU€20 million in funding demonstrates the globally understood importance of African maize sustainability programmes, and of the SIFAZ project in particular.

Comparative maize prices in 2022 illustrate the relevance of SIDAC’s goal of transporting surplus Zambian corn to neighbouring countries with unfulfilled demand. According to research undertaken by the American Journal of Agricultural and Biological Science, via The Conversation, market prices in Zambia were significantly below those of neighbouring nations. At the July peak, prices in Nairobi, Kenya, and Kampala, Uganda, rose above US$500/MT. Average prices in Zambia, meanwhile, were US$220/MT.

Per research conducted in the American Journal, the discrepancy of US$300/MT was double the maximum transport costs to Uganda or Kenya might have been, justifying the need for the infrastructure to export Zambian grain, connect outstanding demand with surplus supply and limit price spikes in the local region. Recent surge in demand for soybeans drove prices in East Africa above US$1000/MT; meanwhile, Zambian soybeans, enjoying a bumper harvest, were achieving a price of US$439/MT. SIDAC’s storage, and SIFAZ’s education, will create a platform to assist Zambian smallholding farmers to capitalise on market windfalls.

The future is bright, with strong funding, thorough research and new infrastructure creating a framework to combat regional food shortages, drive the Zambian agricultural economy, and, above all, empower smallholder farms to maximise their prospects.

A Room With a View: Radisson Blu Open Resort on the Zambezi

World-renowned hotel business, Radisson Hotel Group, has brought its brand of luxury tourism to Africa. Their newly announced resort in Zambia will serve as the flagship for the company’s long-term expansion on the continent.

The opening of their first African safari destination marks a key step towards the company’s goal of opening 150 hotels in Africa this decade. They wish to have opened or have under construction at least 150 African hotels by 2025.

Just one mile south of Livingstone, the Radisson Blue Mosi-oa-Tunya is well connected to transport links whilst only being two and a half miles from the glorious sights of Victoria Falls – of the Seven Natural Wonders of the World.

The glorious Victoria Falls is just a few miles away

The beautiful UNESCO World Heritage Site is one of Zambia’s greatest attractions. Remarkably, the falls are the world’s largest sheet of falling water and are almost double the height of the famous Niagara falls and half a kilometre wider. With the resort located on the Zambezi river, tourists can see the awe-inspiring falls and enjoy beautiful vistas whilst being surrounded by unique ecological diversity. 

Tourists can now visit the hotel and its wonderful surroundings with ease. Zambia is a safe, beautiful, and increasingly prosperous destination for foreign tourists. Visitors from the EU, UK, USA, and China no longer have to worry about troublesome visa fees either since President Hichilema’s government removed such barriers to entry in November of last year.

The environment is a fundamental part of Zambia’s beauty, diversity and history. Environmentally conscious travellers can rest assured they are making a responsible choice staying at Radisson’s new resort. The resort has signed the UNESCO Sustainable Tourism Pledge, as part of Radisson’s global “Responsible Business” program and it has earnt EDGE green building certification. The certification reflects an impressive 20% increase in energy efficiency, water reduction and use of sustainable materials when compared to similar local properties.

The incredible views available at Mosi-oa-Tinya

The Mosi-oa-Tinya resort has 200 top-class rooms, suites and villas including some with panoramic views across the Zambezi river. The resort also offers a range of facilities including a gym, a bar, and a swimming pool. If you get hungry they boast six restaurants some inspired by local African cuisine while others set to serve a more European taste. If you’re thirsty there are a number of bars including the Mopani Bar and Lounge. And if you need to catch up on some work Radisson also offers boardrooms and meeting rooms. You can also host an event for up to 250 people in their impressive ballroom. 

There are a number of activities throughout the national park including helicopter rides over the falls, rafting, canoeing and game drives. You may also catch a glimpse of the rare White Rhino or the more common elephants, giraffes, hippos and bird species that surround the hotel.

The Lower Zambezi National Park is a haven of African wildlife that has seen an impressive regeneration in recent decades following crucial reductions in the levels of illegal poaching.

The World Bank recently announced they would be investing $100 million to boost tourism in Zambia. For a country of such natural beauty, it remains an underutilised path to prosperity. Indeed, tourism minister Rodney Sikumba has described himself as “extending an olive branch” to potential investors as he seeks to continue his program of communications and infrastructural improvements in order to create as smooth and relaxing a tourist experience as possible. President Hichilema, too, has called for greater regional integration of east and southern African tourist routes in order to better showcase the beauty and cultural diversity of the region.

The entrance of Radisson Blu to Zambia represents a significant step. With over 75 years of hospitality experience, 1,100 hotels, and billions of dollars of revenue Radisson will bring world-class hospitality to the Zambezi.

Shaun Wheeler, General Manager of Radisson Blu Mosi-oa-Tunya Livingstone Resort, Zambia, expressed his excitement at the company’s expansion in Zambia. “I am thrilled to lead the team as we open this magnificent property which allows us to offer visitors memorable moments and exciting experiences such as discovering one of the Seven Wonders of the world (The Victoria Falls), which is a short distance from the hotel”. 

Having already established a hotel in Zambia, the company are doubling down on their faith in the country’s prospects and attractiveness to foreign tourists. Mr. Wheeler continued “Radisson Blu Mosi-oa-Tunya Livingstone Resort, Zambia represents a unique destination for our guests to discover and explore,” says Tim Cordon, Chief Commercial Officer, Middle East & Africa, Radisson Hotel Group. “The expansion of our presence in Zambia demonstrates our belief in the country’s potential. This hotel is our second property in Zambia, following the opening of Radisson Blu Hotel, Lusaka, with a third hotel, Park Inn by Radisson Lusaka, Longacres, due to open in 2023.” 

With visa fees out the way and world-class providers like Radisson placing their faith in the country, is it time you invested in the future of Zambia?

Thinking of investing in Zambia’s tourism industry? Sign up for our investor briefing or get in touch at info@zambiaisback.com

Thinking of visiting? Why not explore zambiatourism.com for more information.

Buya Bamba: Bringing Food Security to Zambia

Zambia has started exporting fresh potatoes and frozen French fries to South Africa and Namibia. 

The export is taking place through Shoprite, one of the continent's largest retail supermarkets.

 Local Shoprite and Hungry Lion outlets in Zambia have concurrently stopped importing potatoes from South Africa because Buya Bamba can meet the quality and demand requirements locally.

Until recently, Zambia would import millions of dollars’ worth of frozen potatoes from foreign markets including South Africa. Domestic production, it is hoped, will reduce the costs for Zambian purchasers whilst also leading to Forex savings for the Zambian economy.

In 2021 the firm completed the construction of a $7 million dollar factory for the production of commercial frozen chips. It is the only one of its kind in Zambia, and it is hoped it can make Zambia a net exporter.

Buya Bamba has been in operation since 1999, initially created by Anthony Barker and Juri van Zyl to connect potato farmers with the restaurants and retail outlets that needed their produce. They’re now a major and essential contributor to Zambian agriculture. Their seeds are chosen with care to ensure sustainability and high yields for the Zambian ecosystem and economy.

As well as the farming of potatoes, Buya Bamba also run an impressive logistics organisation to help get Zambian potatoes into supermarkets across southern Africa.

President Hichilema is keen to support the growth of small-holder farming in Zambia. Indeed, promised in the 2023 budget are 256 additional extension support officers and 69% budgetary increase for the Comprehensive Agricultural Support Plan. The plan now boasts a budget of K9.1 billion. 

Managing Director, Anthony Barker, believes the company’s greatest strength is providing small farmers with access to the market. “We let every single consumer, including takeaways, restaurants, corporate restaurants, supermarkets, and the end-user access potatoes from the small farmers,” he commented.

 Barker told Business Focus that he is optimistic about the Zambian market going forward. “[I] believe that there’s going to be more stability in times to come, and I think the future looks bright for Zambia at this point. We’ve invested in that future as a company,” he said.

“The people in Zambia are amazing,” Barker insists. “They’re really a very hard-working culture, and I’m very proud to work with them. I am Zambian myself and I am very proud to work with the Zambian people. We are providing options for people to buy and sell potatoes, providing for all walks of life. I love Zambia and will continue to invest here- this is my home.”

The company also hold significant amounts of potato seed in cold storage. Potato seedlings are easily perishable so cannot be held in ordinary warehouses or by the typical farmer for extended periods of time. These stores help ensure the year-on-year continuation of production even if the preceding harvest proved unfruitful. However, Barker wants to see cold storage grow in Zambia in order to make the country fully self-sufficient and a net exporter.

Food security is a key priority for both the Zambian government and international agencies. In an agreement signed at the US-Africa Leaders Summit earlier this month, USAID and the Zambian government agreed to cooperate through the Prosper Africa initiative to increase regional food security. While the initiative will focus specifically on reducing post-harvest losses on Maize, the improvements in research and equipment are designed to improve the efficiency and security of food production across the board.

PHYLA Earth: Regenerative Agriculture for Zambia’s Future

PHYLA Earth is a remarkable organisation focusing on investment in “nature’s capital”. By engaging communities and corporations, weaving novel technologies together to find remarkable solutions, and connecting partners to new markets, they seek to boost the triple bottom line: bringing economic, social, and environmental benefits to Zambia.

PHYLA use advanced agronomic technologies to help farmers improve their soil management and encourage “regeneration agriculture” across Africa’s Great Green Wall. The Great Green Wall is a remarkable initiative to build an unbroken line of trees stretching 8,000km across the middle of the African continent to help fight the effects of climate change. 

In Senegal, The Great Green Wall is using Acacia trees to help fight desertification. At its worst, this phenomenon can force families from their homes as the land becomes arid and leaves people’s home communities unliveable. In Zambia, PHYLA are hoping to use regenerative agriculture to engineer a new wealth creation dynamic; restoring arable land through resistant ecology in order to improve the land, create jobs, bolster communities, sequester carbon and produce food.

At COP27 PHYLA Earth’s CEO Rabih El Fadel and co-founder Harry Verns showcased their flagship project: the Pongamia regenerative agroforestry project at Konkola Copper Mines.

Konkola Copper Mines (KCM) is one of Africa’s largest integrated copper producers. The Zambian mine produces millions of tons of copper per year, which is fundamental to the electric battery value chain and so the future of sustainable transport. The metal is also central to the present and future prosperity of Zambia.

However, mining often comes at an environmental cost. In this case, mining increases the salinity and sodicity of the surrounding soil  and limits natural plant growth – an issue for 833 million hectares of soil worldwide.

PHYLA Earth are developing a remarkable orchard in Chingola, Zambia, in order to combat this problem. Their work facilitates the prospect of continued extraction of minerals needed for the transition to clean energy, whilst supporting local farming and increasing ecological resilience.

 The 4,000 elite Pongamia seedlings planted on untreated land next to the mines have experienced a mortality of less than 1%. The trees have instead grown, flowered, and produced pods in quantities expected from much more fertile soil. From an ecological perspective, the main benefits of Pongamia tree-based agroforestry is the potential to restore biodiversity, binding the soil with its roots and providing life giving nectar for vital pollinators.

 But the benefits go even further. Pongamia have significant climate resistant properties, weathering drought, salinity changes and high levels of metals in the soils better than other plants. Seedlings, meanwhile, can be used as biopesticides, insect repellents, and as a source of food-grade vegetable oil.

 According to the United Nations, investments in nature-based solutions to climate change must treble by 2030 if the world is to tackle the triple threat of climate, biodiversity and land degradation. PHYLA seek to foster a circular bioeconomy to meet this challenge. ]

 The development of Pongamia orchards provide jobs and income. This income is in turn expected to facilitate further Pongamia plantations - again increasing biodiversity and providing more seedlings for useful by-products. The conceptual circularity of this cycle allows PHYLA to believe such investments can create what they refer to as “perennial dividends” on the initial investment.

 The project is being extended to target 1.5 million saplings next year in India and Southern Africa.

 At COP27 PHYLA showcased the Chingola project and made the case for why they believe “agro forestry is the perfect tool to remediate degraded land and rural markets” and to explain how “our trees provide farmers with highly productive, carbon removing perennial, drought tolerant option to increase farm revenue and power local economies.”

 The company’s approach recognises that nature provides infinite value to the economy but requires unprecedented investment to secure future returns. PHYLA wishes to see the reconstruction of economic models to include nature as the planet’s most precious asset.

 Tackling deforestation is a priority of the Zambian government. Environmental sustainability is one of the four pillars supporting the UPND’s economic transformation plan outlined in the Medium-Term Budget Plan. To this end, the New Dawn government are setting up timber exchanges around the country in order to increase transparency and reduce illicit and damaging deforestation practices.

 Further, if you wish to invest in PHYLA Earth, it is worth knowing that green bonds (with a maturity of at least three years) have been granted tax exemptions aimed at encouraging investments in projects with environmental benefits.

 PHYLA’s remarkable work would not be possible without the cooperative research of the University of Zambia, the University of Reading (UK) and the University of Bradford (UK). Such international intellectual exchanges and research are vital to driving the world’s economy towards a cleaner future. PHYLA’s researchers include specialists with 50 years of dedicated practice.

 Thinking of investing in Zambia’s agriculture industry? Sign up for our investor briefing or get in touch at info@zambiaisback.com

KoBold Metals: The Mining Exploration Firm Using AI To Lead The Electrical Revolution

Last week it was announced that US-based mining exploration firm KoBold Metals would be investing $150 million to develop the Mingomba copper-cobalt mine in Zambia.

The new deal is a joint venture between private equity firm EMR Capital and Zambia’s state-backed ZCCM Investment Holdings (ZCCM-IH) and is set to close within the first quarter of 2023.

KoBold Metals is a start-up firm which uses artificial intelligence (AI) and machine learning to coordinate mining for metal deposits used in making electric car batteries. The company, which began its mining operations in Canada two years ago, aims to create a “Google Map”  equivalent of the Earth’s crust, highlighting areas which have high levels of cobalt and copper deposits. 

This ‘mapping’ is done by collecting and analysing streams of data of both new and old deposits. The company then uses algorithms to determine where new deposits may be found. As a result, KoBold is better equipped to locate minerals that may have been overlooked by more traditional methods of exploration.

Despite being such a young company, Kobold already has an impressive portfolio, having acquired multiple exploration sites in Quebec, Saskatchewan, Ontario, and Western Australia.

The start-up also has an impressive lineup of stakeholders and investors. These include Australian multinational mining company BHP and support from climate and technology innovators Breakthrough Energy Ventures. 

Founded by Bill Gates in 2015, Breakthrough is an umbrella company for a range of organisations that aim to accelerate the innovation of sustainable energy sources to mitigate the effects of climate change. The company is also backed by Amazon’s Jeff Bezos and Virgin’s Richard Branson. 

Kobold’s chief executive officer, Kurt House, who has been working with the company for over five years, has previously stated that he does not want to be considered a mining operator “ever,” and that the company root itself in leading the way for the “electric vehicle revolution.”

The new Zambia-based project is a major step forward for both the company and the country. Firstly, it will place President Hakainde Hichilema on good footing to achieve his ambitious copper production target of 3 million tonnes a year by 2032. 

Secondly, the Mingomba mine presents a major opportunity to KoBold. The company previously said that the mine is set to be "one of the world's top-tier mines.” They also found that it contains an estimated 247 million tonnes of ore with an average grade of 3.64% copper. That is six times purer than similar deposits found in Chile.

This high quality mine will not only generate more tax revenue for the government but also provide jobs for many Zambians. It will also support Zambian-run businesses within the mine’s value chain in everything from machinery to transportation. 

Furthermore, as global consumers make changes towards more climate-friendly options demand for electric vehicles will continue to grow. It is estimated that the global copper industry will need upwards of $100 billion to meet the infrastructure requirements to meet with this demand. With Zambia being the second largest copper producer in Africa, this deal solidifies the key role that the country will play in the green economy going forward. 

Photo: Khusen Rustamov from Pixabay.

AfriLabs: The Annual Gathering Bringing Innovation to Zambia

As the Government of Zambia strives to transform Zambia’s digital and technological space, AfriLabs seeks to connect remarkable businesses in Zambia to an extraordinary network of supportive innovators across the continent.

AfriLabs is a networking organisation that have been supporting innovation on the continent since 2011. AfriLabs’ 2022 Annual Gathering was held this year in Zambia’s capital, Lusaka from in October. This year they celebrated “Intra-African Connectivity, Collaboration and Innovation” during an event billed as the largest convention of African innovation leaders on the continent.

400 visitors from 52 foreign nations, in addition to 3000 virtual participants, came together to celebrate technological innovation in Zambia and Africa.

One AfriLabs member in particular is targeting digital transformation in Zambia. Ehub Zambia act as a technological centre who aim to improve digital competence for people from marginalised communities. Specifically, they aim to teach coding for those in peri-urban and rural communities up to a job entry level ability.

Ehub Zambia believe this technology competence is important not just for the youth’s future, but for the country as a whole. Improving digital skills facilitates the increased integration of Zambia into global financial markets, while increased access to the internet allows SMEs to operate take advantage of international export opportunities. By upskilling these peri-urban and rural communities Ehub Zambia hope to diversify the job opportunities available to those in often marginalised communities.

The new Ministry of Technology and Science is dedicated to transforming the digital economy. They work closely with private sector partners to improve access to and utilisation of digital technologies.

For example, at the end of November the ministry celebrated the establishment of the first 5G network in the country. Felix Mutati, the minister for technology and science, emphasised this as a crucial step in the country’s digital transformation agenda.  

Speaking at the network’s launch, the Minister also told the press that the Hichilema administration is also working on a new start-up bill to improve access to funding for new enterprises. This will be welcome news for Madica – another impressive attendee of this year’s Lusaka AfriLabs gathering.

Madica, short for “Made in Africa”, is a young pre-seed investment programme aiming to support under-funded African entrepreneurs through both direct financial investment and, in partnership with companies such as Ehub Zambia and the government of Zambia, is hoping to upskill and increase the network of poorly connected African entrepreneurs  

Over the next three years Madica seek to support 25 to 30 African entrepreneurs with up to $200,000 in funding and significant programmatic support. They aim to support bright ideas with little infrastructural support. This is why $6 million dollars of their funding is being held back for programmatic support. Through hands-on support from their team of mentors, plus connections to continent-wide networks through AfriLabs, their goal is to see African start-ups flourish. 

Emmanuel Adeboye, head of Madica, explains that although he believes “Africans have an unmatched entrepreneurial spirit”, they’re disadvantaged in the start-up space. African CEOs raise on average 28% less funding than their foreign educated counterparts, whilst funding in Africa is disproportionately swayed towards male CEOs. 

“We hope that Madica can help change the narrative around African start-ups – lower the perception of risk, attract more capital, inspire more founders, and garner more media attention”, commented one Madica executive.

Since 2021, Zambia has received an extraordinary amount of investment in order to stimulate its economy. For example, in Q3 of this year, Zambia received $1.1 billion in future investment pledges expected to create over 8,000 jobs. However, much of this funding has come from abroad.  

Madica wish to foster the “innate ability of Africa to build Africa” through supportive pan-African networks and investment programmes. Speaking ahead of the conference, Mutatu expressed his excitement at the opportunity “for Zambia to show more of its potential as a leader in entrepreneurship and innovation in the Southern African region.” He spoke in agreement with the directors of AfriLabs and Madica in saying that “if we are to make progress as an African continent, the doors must be open to each other.”

With the government of Zambia seeking to foster partnerships with the private sector in order to accelerate the nation’s digital transformation, and organisations such as AfriLabs actively enhancing connectivity and engendering rapid sector growth, now is a decisive and opportune time to invest in the nation’s potential.

How One NGOs Drive for Conservation is Boosting Zambian Tourism

The NGO Conservation Lower Zambezi (CLZ), in conjunction with the Department of National Parks and Wildlife (DNPW), has led a remarkable rejuvenation of Zambia’s Lower Zambezi National Park. With wildlife rebounding, new riverside boutique campsites have the potential to bring back more tourists and economic growth to the Zambezi.

The Lower Zambezi National Park is one of the country’s most important wildlife sanctuaries, home to extraordinary elephant populations, lions, and much more. The park now appears as a haven of extraordinary African diversity. Yet it was not always so.

 From the 1970s through to 2016, the park experienced an epidemic of poaching. According to one local guide, this was a time “when we were being hammered by poachers, animals were rapidly disappearing.”

While the park witnessed a number of tragic losses, it was elephants that were particularly targeted. “When I started flying down here 20 years ago, I’d take off and see 20 poachers’ bushmeat drying racks in a morning, lion prides were moving from one carcass to another,” comments Ian Stevenson of CLZ. “We were being hit hard. In 2015 alone, which was the peak of the crisis, we lost 107 elephants,” he continues.

DNPW and CLZ have led the charge to protect the park and have overseen an impressive transformation. Founded in 1994, they have contributed significantly to stabilising elephant populations and the growth of sustainable tourism. In conjunction with the DNPW, their patrols act as a visible deterrent to potential poachers. In 2021 alone, they supported 14,378 man-days worth of anti-poaching patrols and apprehended 214 suspects.

The government of Zambia has removed visa requirements, and their consequent fees, for travellers coming from the EU, China, and the US. The increase in ease of access to Zambia as a holiday destination is designed to boost the number of foreign visitors, making it all the more important that tourism and sustainability come hand in hand.

NGOs have undertaken fantastic work in Zambia to this end. Ian Stevenson, CLZ’s CEO, was nominated for the Tusk Conservation Award in 2020. Tusk, one of Africa’s largest conservation charities, recognises those doing extraordinary conservation work on the continent. The charity’s patron, Prince William, personally thanked CLZ and Ian Stevenson for this work.

Working in partnership with like-minded stakeholders is a crucial part of CLZ’s success. CLZ is partially dependent on tourism for its activities. Safari companies are reliant on the beauty and biodiversity of the park to sustain their business. They, thus, support CLZ’s conservation work by contributing up to $1,000 a month and often consult with their experts on how to mitigate the impact of their visitors. 

Beks Ndlovu, founder and CEO of African Bush Camps, describes the views of the Zambezi as "like being in an oil painting" and is eager to share its natural beauty with the world. From your room at Lolebezi, one of African Bush Camps' newest sites, you can watch buffaloes run down the riverbanks, leopards lick their wounds in the trees, and hyenas gorge on scraps.

Time + Tide, a luxury safari company, has established a tented camp on the confluence of the Chongwe and Zambezi river. With 8 tents located right on the riverfront and a number of experiences on offer, Time + Tide brings tourists close to the action. Their extraordinary offering includes walking safaris, boat trips on the river, and sleepouts under the stars. Dining under the Albida trees, the work of CLZ means guests can see elephants at an extraordinarily close range as they seek to graze on their favoured snack of Albida pods.

Tourism Minister Rodney Sikumba has recently called for more investment in the sector as he perceives untapped potential to spur economic growth. The hospitality, retail, and catering sectors all benefit from increased traffic at tourist sites. The Minister said he was "extending an olive branch to would-be investors" to explore the natural beauty of the country.

Furthermore, the World Bank recently announced they would be investing $100 million to boost tourism in the country. Specifically, the project is set to renovate airstrips and bridges in Liuwa Plain National Park. This will help the delegated infrastructure accommodate a rise in tourists. The project is part of a broader plan to develop and better integrate the western tourism circuit in the country. 

Mr. Sikumba wishes to see further investment in communication networks between popular tourist destinations to extend the stay of visitors to Zambia. His sentiment is echoed by the president who, on a recent trip to Tanzania, emphasized how African nations should be doing more to package their tourist offerings not as individuals, but as a packaging opportunity to stay longer, explore the region as a whole, experience the culture and diversity of the landscape while bringing more revenue to help both sustainability initiatives and the wider economy.

With the conservation work of CLZ and many others continuing, it is hoped that the Lower Zambezi National Park can continue to flourish while attracting tourists from around the world.

Ethereum Founder Energised by Zambian FinTech Take-Off

Vitalik Buterin, co-founder of Ethereum, is backing a bright future for cryptocurrencies and FinTech in Zambia. Having engaged with President Hichilema via virtual meetings, the founder of the world’s second largest cryptocurrency has expressed his support for Zambia’s digital transformation.

Speaking after a visit to the country in 2019 Buterin appeared excited by the future prospects for the country. “I was impressed by everyone’s willingness to go and do big things,” he said.

Start-up founders from Zambia and around the world have been consulting with the government since February. The aim is to improve the national regulatory and business environment, in conjunction with the private sector, to attract more tech firms and capital.

Mwiya Musokotwane, Founder and CEO of Thebe Investment Management and the son of Zambia’s Finance Minister, is one of those driving the project and insists policy must “live up to people’s expectations” or risk driving away investment.

It is not just Buterin who is excited by the Zambian market. Nigerian payments firm Flutterwave Inc., valued at more than $3 billion dollars, have indicated its interest in Zambia as a potential regional tech hub. Zimbabwean tech investor Perseus Mlambo got in at the ground floor of the Zambian market, launching the payments platform Zazu Africa Limited in 2015. Zazu seeks to improve transparency and accessibility across online financial services through its platform.

At present 75% of Zambia’s export earnings come from copper sales. Although the mining industry is a crucial driver for Zambia’s present economic growth, attempts are being made to dramatically diversify the country’s economy. 

One of President Hichilema’s first acts in office was to set up the newly minted Ministry of Technology and Science. The creation of this ministry is intended to signal the future importance of the sector and coordinate a favourable policy environment. The ministry’s founding came just before the launch of the National Skills Youth Empowerment Programme. Digital competence is viewed as a vital part of upskilling the country’s youth to best prepare them to engage in the global economy and in Zambia’s economic future.

 This year also saw the launch of the government’s National Digital Transformation Strategy. Big Four accounting firm PwC praised the strategy and concurrent investment as a “key enabler” for economic transformation and job creation.

 On Wednesday, speaking at the Innovation Africa Summit, hosted in Lusaka, President Hichilema emphasised the importance of technology to education. In a subsequent tweet the president emphasised: “As we invest in education, we must leverage on technology to make our jobs easier and help us achieve more with our resources. Resources can be stretched with the use of technology.”

The Zambian government is heeding Mlambo’s warning not to “miss the proverbial boat” by under-investing in the FinTech boom. Mlambo is encouraging the Zambian government to use the power of technology to aid its development plans. He has emphasised that “tech uplifts multitudes of people and the barrier to entry is very, very low.”

 Indeed, the growth of digital financial services has been revelatory in many sub-Saharan African countries. Person to Person (P2P) digital payments systems facilitate the integration of those without formal bank accounts but with internet access. Despite turbulence in the cryptocurrency markets this year, small retail transfers of $1000 or less have actually increased on the continent. This is indicative of the high grassroots level uptake of the technology in Africa.

Rather than cryptocurrencies being bought as speculative investments - as is most common in Europe and North America - or funds being dominated by large firms, Africa’s crypto boom is being driven by a high proportion of grassroots adoption. The technology facilitates quicker and cheaper transfers than traditional systems. Further, while not a prime driver in Zambia owing to the kwacha’s strong international performance, crypto assets can provide an independent means of access to foreign exchanges and can serve as a hedge against currency volatility. In Zimbabwe, for example, where inflation is at 90%, cryptocurrencies have proved particularly useful for buying everyday goods.

 This year Zambia held its first-ever Internal ICT Expo and Fintech Festival. With the African cryptocurrency market having grown 1200% between 2020 and 2021, and Zambia’s digital finance market set to reach 7.25 million users by 2027, this is an important time to unmask the power of technology.

 Zambia’s Central Bank announced this year that the possibility of a Central Bank Digital Currency is being explored. With this and more in the future, it is no surprise that Ethereum sees a bright future for digital finance in Zambia.

Image: Vitalik Buterin via Chet Strange/Bloomberg

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Zambian Breweries: Bottling Success For Zambia

Since its founding in 1963 Zambian Breweries has been at the heart of the country’s beverage industry. The company is famous for its clear beers such as Mosi Lager, Castle, Carling Black Label, Eagle, Flying Fish and Castle Lite.

The brewery’s recent take-over by Belgian drinks giant AB InBev has allowed production to continue to grow. Combined with the New Dawn government’s pro-business stance, this allows Zambian Breweries to invest in supporting local businesses through backward-linking supply chains.

Zambian Breweries was originally formed in 1963 via a partnership between South African Breweries and Labatt Breweries of Canada. Following this, the company was nationalised in 1968, during which time it operated out of two production facilities in Lusaka and Ndola.

Later, during the privatisation programme initiated by the government in the 1990s, the brewery was once again privatised with its assets and liabilities split into two newly incorporated companies: Lusaka Breweries Limited and Northern Breweries. Lusaka Breweries then went on to become Zambian Breweries.

Photo: Zambian Breweries

Fast forward to 2016 and the company was bought by AB Inbev, becoming part of the company’s global initiative to “bring people together for a better world through our products, brands, and investment in our communities.”

AB Inbev is the world’s largest beer brewer by both volume and revenue. It operates more than 600 beer brands in 150 countries and employs more than 170,000 people throughout its operations. The company made $54.3 billion last year, having seen profits grow even during the pandemic. The company owns household names such as Stella Artois, Corona and Budweiser.

Earlier this year Zambian Breweries announced an $80 million capital investment to expand its Lusaka factory and create 5,000 jobs. The investment is set to target the supply side of the business: improving technical services, brewing and enhancement of their cellars.

Additionally, the investment will unlock further innovation opportunities in the industry. At the moment, 90% of the investment will be in high-tech equipment to make operations more sustainable. Specifically, the investment will include enlargements of the company’s agriculture out-grower schemes and offer procurement opportunities to local suppliers.

Further, it will also see the Mungwi Road factory double its production capacity over the next year, creating jobs and improving productivity to meet the company’s growing demand.  Other upgrades include replacing the factory’s clean-in-place (CIP) equipment; installation of a more efficient boiler; and establishing a new milling plant.

Photo: Zambian Breweries

Michelle Kilplin, Zambia Country Director for AB InBev, praised the investment as a triple win for the community, government and company. She said, “This investment has been enabled by the pro-business and pro-investment climate being promoted by the government. We are encouraged by what we have seen so far and we as a business intend to be a big part of the economic recovery and growth of the Zambian market.”

Additionally, Albert Malunga, Lusaka plant manager, said the government had helped the company make the investment decision through its emphasis on sustainable business. He specified that the creation of the Ministry of Green Economy will help businesses to meet their green goals.

“Our response as a business is to prepare ourselves for the future by investing in new technologies which will be environmentally friendly and will help us care for the environment by reducing carbon emissions,” he said.

Zambian Breweries’ expansion is expected to have multiple positive knock-on effects for supply chains; benefiting retailers, transporters and suppliers. Moreover, government support packages - such as the 50% suspension of excise duty on clear beer and the decrease in excise duty on locally produced clear beer from 10% to 5% - has meant that more companies can now get involved in this growing industry.

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Yango: The Taxi Company Hailing Growth in Zambia

Yango, the ride-hailing service initially launched in Israel, has grown exponentially since its founding in December 2018. Operating in 600 cities across 17 countries, Yango launched in Zambia in early 2022.

Zambia is the fifth country in Africa, and the first in southern Africa, that Yango has launched in, with the company already present in Côte D’Ivoire, Ghana, Cameroon and Senegal. Upon its launch, General Manager for Yango in Africa Adeniyi Adebayo noted Zambia’s status as a “growing, actively developing economy”. With a 4% annual growth rate, and over half the country’s population under the age of 18, there is the potential for Yango’s market, and profits, to grow enormously in Zambia in the years to come.

In addition to offering a taxi service, Yango offers parcel delivery, rapid grocery delivery, and car-sharing options. What sets them aside from global competitors such as Uber is their collaborative approach, which includes partnering with local taxi companies.

By using AI-based navigation and request services, journey times are reduced for passengers; drivers waste less time between rides; and overall costs fall. Such technology can help the growth of small and medium -sized business throughout the city. Less time is wasted on a worker’s commute; taxi companies can schedule more business per day; and local food and parcel services see their products delivered more efficiently. The number of internet users in Zambia grew by 5.4% across 2021, and the government is attempting to accelerate this further through the National Digital Transformation Strategy. As online demand increases in Zambia, such efficiency driving technology may give Yango a crucial advantage over regional competitors.

Speaking to Business Insider, Adebayo explained how their service aims to co-operate with their partner firms holistically: “to replace their old-fashioned ways of doing business, which sometimes is at best Excel spreadsheets, we offer digital accounting and fleet management technology to improve the transparency and efficiency of operations.” This is also why the company offers more than 50 driver support specialists per city.

 Government officials have welcomed the competition and innovation that Yango have brought to the market, with Minister of Transport Frank Tayali stating, “we see that its presence on the market benefits the creation of new job opportunities with local transport operators which partner with Yango.” Echoing the sentiments of Adebayo, the Minister spoke of the opportunities Yango provides to small and medium-sized businesses to grow and modernise.

The Minster concluded by assuring businesses that “the new regulation will not limit these opportunities.” Indeed, through the newly founded Public-Private Development Forum, the government is actively seeking to foster public-private cooperation in order to overcome critical sector specific constraints. Further, the administration is actively seeking to encourage foreign investment by hosting business summits and cutting taxes in an effort to stimulate the Zambian economy and reach middle-income status by 2030. 

Yango has experienced enormous growth in Africa since its introduction to Côte D’Ivoire in 2018. The company has increased the number of riders in Africa seven times annually. The African market now represents 60% of the company’s Gross Merchandise Value (GMV). GMV is a measure of the total value of sales. Such a large share is indicative of the sheer demand for affordable, digitised ride-hailing technologies on the continent.

The company have introduced a number of additional features since they first launched in order to make the service more convenient and attractive to its customers. For example, ride-sharing has been introduced to allow for reduced prices with minimal additional time added to journeys. Passengers are also able to utilise safety features to let select contacts know they’re getting home safe or track their progress along a journey. In Cameroon, Yango have introduced driver safety figures including using AI algorithms to warn drivers about particularly dangerous areas of road, manoeuvres, and possible incidents on their journey.

Yango’s approach includes a focus on Corporate Social Responsibility. For example, during the height of the COVID pandemic, Yango provided free rides for doctors to visit patients and for people traveling to vaccination centers. The company has also recently spoken about its plans to support education with a focus on IT in the region.

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Barrick Gold Digs Deeper With Government Support

Mining giant Barrick Gold Corporation has recently announced record yields from its Lumwana copper mine thanks to a combination of the New Dawn government’s favourable business policies and strategic reinvestments made by the company to improve infrastructure at the mine, which is located 100 km west of Solwezi in the heart of Zambia’s Copperbelt.

Barrick Gold’s Lumwana Copper Mine. Source: Bloomberg.

Barrick Gold is now one of Zambia’s largest copper producers, employing more than 4,400 people, 99.3% of whom are Zambian nationals.

The company, which has invested more than $8.2 billion into the Zambian economy in the form royalties, taxes and local employment since 2011, has said it is looking to continue growing its Zambian operations.

Earlier this year CEO Mark Bristow described the mine as a “real success”; demonstrated last month when the company announced that copper production had climbed to roughly 334,000 tonnes since the start of the year - more than double the amount it produced in 2010.

The Lumwana mine was initially purchased in 2011, although Barrick considered selling it following a merger with Randgold Resources in 2019. Discussions fell through, however, and the mine was kept in the hands of the company.

Following the election of President Hakainde Hichilema and the New Dawn government, new business-friendly policies meant that the mine was able to ramp up production and now contributes 20% of Barrick Gold’s annual earnings.

Such policies include those which were announced in the 2023 Budget. Specifically, Mr Bristow expressed his contentment with the new mineral royalty tax regime, which is set to come into effect in January 2023.

The new mineral royalty tax regime, which is based on the price of copper, has been restructured to tax only the incremental value in price at different thresholds, as opposed to the aggregate value. The government will also allow miners to deduct royalties from income taxes which will resolve the issue of miners being taxed twice. This had previously been an issue as miners were taxed both on their incomes and through the royalty regime. Additionally, these changes will also smooth out the impact of price fluctuations in the market.

This economic stability in tax will ensure confidence in the market as well as encourage more cash flow back into the economy through reinvestments, something Barrick Gold have said will prove vital as they scale up production.

Workers at the Lumwana Copper Mine. Source: Barrick Gold.

Mr Bristow explained that the changes in mineral royalty tax will unlock more cash flow for the company that could be used as reinvestments into the mine.

Additionally, the New Dawn administration has reduced the property tax transfer on exploration rights. The tax has been reduced to 7.5% - 2.5% lower than the previous rate.

Earlier this month, during a media briefing at the mine, Mr Bristow described how Lumwana is more profitable than ever and is generating even higher yields, making it one of Zambia’s largest copper producers.

He also outlined plans to expand the mine by creating a ‘super pit’, stating that, “Promising drill results at the Lubwe satellite target are increasing our confidence that we will be able to develop a super pit and still keep producing at today’s rates and more.”

Further, he said, “Should the super pit prove viable, it will substantially extend the mine’s life with a two-year pre-feasibility study scheduled to commence in 2023.”

The new pit’s potential profitability has led to reports that Barrick could extend its operations at Lumwana from 2042 to 2060.

Aside from the high yields, Mr Bristow outlined that favorable business policies have also encouraged the firm to invest in Zambia. The CEO has repeatedly said that stable governance and pro-investment policies have been some of the key aspects that persuaded Barrick Gold to continue its operations in Zambia and to reinvest their earnings.

Mr Bristow stated that the New Dawn government is like, “a breath of fresh air.”

Zambia is set to become a hub for global mining investment. It is the 7th largest copper producer in the world, producing roughly 88,000 metric tonnes of the metal a year. It is also home to some of the highest grade copper mines in the world, making it a particularly attractive area for exploration and investment. On top of this, the country is home to substantial nickel, cobalt, and manganese deposits. Outside of metals the country also produces 20% of the world’s emeralds.

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