Zambia Investor Briefing: April 2023
OVERVIEW
Mozambique’s President Nyusi played host to his Zambian counterpart Hakainde Hichilema for an official state visit. The aim of the trip was to further cement relations “through increased trade and investment flows” between the two countries, and included a visit to the Port of Beira. A Memorandum of Understanding (MoU) was signed between the neighbours aimed at bolstering collaboration in the area of press standards and freedoms. Issues of peace and security were also central to discussions.
Hichilema travelled to Victoria Falls, Zimbabwe, to take part in the ‘Transform Africa Summit’. The summit brought regional and global leaders together with international organisations from more than 100 countries under the theme ‘Connect, Innovate, Transform’, to collaborate on new ways of shaping, accelerating and sustaining Africa’s on-going digital revolution. Others in attendance included Rwanda’s Paul Kagame, Togo’s Faure Gnassingbé, Malawi’s Lazarus Chakwera and Secretary General of the AfCFTA Wamkele Mene.
A recently published report from Chatham House praised the New Dawn government’s “positive neutrality”, a delicate balancing act which, the report reads, has allowed it to secure investment “from a diverse mix of partners, including Brazil, India, Japan, Saudi Arabia, South Africa, Türkiye and the United Arab Emirates”. It also points to the fact that “Hichilema has resuscitated relations with Western partners, especially the US and UK, and maintained Zambia’s important relationships with China and the African continent”.
Mfikeyi Makayi was appointed CEO of KoBold Metals Zambia. The first female head of a major mining company in Zambia, she will oversee the development of the Mingomba mine in the Copperbelt. Formerly of First Quantum Minerals, Makayi underscored the sector’s importance to Zambia, saying it “is something that will drive our economy into the future”.
A groundbreaking ceremony took place for the construction of a new fertiliser and ammonia plant at the United Capital Fertiliser Zambia Company in Lusaka’s Chilanga district. The USD 600 million project will help bolster the country’s food security, and has come about, according to Hichilema, owing to the “enabling policy and business environment we wanted”.
President Hichilema hosted the Zambian-American business community at the Presidential Luncheon in Lusaka. The event was held under the banner of ‘Zambia’s Economic Revitalisation and Investment Opportunities’, and saw local banks and businesses looking for new investment opportunities in the country.
A statement released by President Hichilema confirmed that the Zambian government were working with “global tech companies” to secure digital literacy training for 10,000 teachers. “Education is the best investment we can make”, he reiterated.
Mozambique State Visit
President Hichilema undertook a three-day official state visit to neighbouring Mozambique, during which a number of important agreements were reached. One such commitment saw the Mozambican government announce plans to resume its supply of electricity to Zambia which, President Nyusi said, was now possible following upgrades to local infrastructure. Zambian Energy Minister Peter Kapala also spoke about plans for new gas and petroleum pipelines running from Mozambique to Zambia.
There were further calls from the Zambian delegation for more cross-border business, particularly in the mining, agriculture and tourism sectors, something President Hichilema was especially keen to see.
On the final day of the visit, the two heads-of-state undertook a visit to the Port of Beira, located in Mozambique’s commercial capital. Whilst there, they attended the Mozambique-Zambia Business Forum, which hosted an event titled “Accelerating Trade and Investment Between Mozambique and Zambia”. The forum was attended by 250 exhibitors representing various sectors from across the business community.
Transform Africa IT Summit
Six presidents were in attendance at the three-day summit, which took place in Victoria Falls, Zimbabwe, and saw the launch of the African Development and Smart Africa Alliance. The USD 1.5 million agreement is designed to enhance digital trade and e-commerce ecosystems across Africa.
The alliance will streamline e-payment policies across ten countries - Côte d’Ivoire, Benin, Ghana, Uganda, South Sudan, Zimbabwe, Republic of Congo, DR Congo, and Sao Tomé and Principe.
Hichilema gave an address at the summit, in which he implored nations to embrace new technologies “with the aim of increasing productivity and creating more jobs, particularly for our young people [on] the continent”.
“Harmonising our legislation and technological platforms in Africa is also crucial to facilitate market sharing and the movement of people and goods, while maintaining security”, he wrote in a statement. “Harmonised digital platforms will also make it easier for joint public-private ventures among our citizens to do business”.
Currency
1 USD = 17.86 ZMW 30 day average = 19.171 Volatility (last 30 days) = 1.3%
OTHER NEWS
Zambia reaps rewards of positive neutrality and economic diplomacy while others flounder, 02.04.23, Daily Maverick
China's loans to Africa worry World Bank President David Malpass, 02.04.23, BBC New
Zambia mining sector gets first female chief executive, 06.04.23, BBC News
Yellen to push for ‘speedy’ action on Zambia, Ghana debt relief, 11.04.23, Al Jazeera
Zambia sees scope for $12.8 billion debt-revamp deal next week, 12.04.23, Bloomberg
Zambia: UN experts concerned over delay in the country’s debt restructuring, 17.04.23, United Nations
Moxico provincial government to boost cooperation with Zambia, Angop, 24.04.23
Zambia has sent debt restructuring proposal to official creditors, Reuters, 24.04.23
UPCOMING EVENTS
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London, UK
11.05.23
The Africa Debate: Catalysing the Continent’s Trade Potential
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14.05.23 - 16.05.23
Africa Trade and Investment Global Summit
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