Zambia Investor Briefing: August 2023
OVERVIEW
• President Hichilema visited Israel at the start of this month, the third such trip by a Zambian head of state in the past decade. The President met with both Israeli Prime Minister Benjamin Netanyahu and President Herzog to discuss trade, peace and security between the two countries. Herzog labelled relations “outstanding”. Hichilema attended the Israel-Zambia Business Forum in Jerusalem, which focused on opportunities in Zambia’s agricultural sector.
• UK Foreign Secretary James Cleverly was welcomed to State House, marking the first such visit in more than 30 years. The Foreign Secretary announced the expansion of the UK’s clean energy partnership with Zambia, which includes up to GBP 2.5 billion worth of British investment in Zambia’s mining, minerals, and renewable energy sectors, in addition to GBP 500 million in British government-backed investments.
• The World Bank’s Country Director for Malawi, Tanzania, Zambia and Zimbabwe met with President Hichilema as part of a broader visit to the country. Nathan Belete held meetings with the ministers for tourism, trade, finance, and infrastructure, in addition to his time with the President.
• Mines and Mineral Development Minister Paul Kabuswe signed a joint declaration with Japan’s Economy, Trade and Industry Minister Yasutoshi Nishimura in order to strengthen cooperation in the mining sector. The two countries have agreed to expand cooperation in the exploration of minerals via satellite, particularly copper, cobalt and nickel, which are essential for electric vehicles and other products.
• The outgoing European Union Ambassador to Zambia, Dr Jacek Jankowski, has told President Hichilema at his final official press conference at State House that his efforts are “really highly appreciated by the European Union”, and described Zambia as an “amazing country”. Hichilema thanked the EU for the part it has played in strengthening Zambia’s democratic practices. Dr Jankowski leaves his post after serving the EU in Zambia for four years.
• President Hichilema attended the BRICS Summit in Johannesburg last week in his capacity as Chairperson of the Common Market for Eastern and Southern Africa (COMESA). There, he participated in the Round Table Discussion themed “Promoting African Integration and Jointly Building a High-Level Africa-China Community with a Shared Future”. In a statement, Hichilema called on the Summit “to serve as a stepping stone to enhance coordination between BRICS and Africa, enabling an effective response to our global social, political, economic, and environmental challenges”.
• Talks are ongoing concerning the new core investor for Mopani Copper Mines. Johannesburg-based precious metals producer Sibanye Stillwater has recently announced its plans to bring in a Chinese investor to form a partnership if it wins its bid. The unnamed Chinese company already has a presence in copper mining. Also on the shortlist for the mines is China’s Zijin Mining Group.
President Hakainde Hichilema’s Visit to Israel
President Hichilema visited Israel at the start of this month on a three-day trip, the third such trip by a Zambian head of state in the past decade. The President met with both Israeli Prime Minister Benjamin Netanyahu and President Herzog to discuss trade, peace and security between the two countries. Herzog labelled relations between the two countries “outstanding”.
During the trip, Zambia’s Foreign Minister Stanley Kakubo met with Israel’s Foreign Minister Eli Cohen to discuss Israel’s relations with Africa in general and Zambia in particular. The two signed a framework agreement to strengthen cooperation in medicine, communication, agriculture, and culture.
Hichilema attended the Israel-Zambia Business Forum at Israel’s Ministry of Foreign Affairs, Jerusalem. With a focus on opportunities in the agricultural sector, the delegates explored issues such as water harvesting and irrigation in Zambia.
During his trip, Hichilema also finalised negotiations regarding a $100 million investment in a renewable energy power station in Chibombo, Zambia by Israel’s Gigawatt Global and Gigawatt Wind. The companies now have an Investment License with the Zambia Development Agency (ZDA) and an Implementation Agreement with the Energy Ministry. Gigawatt Global president Yosef Abramowitz described it as “the most significant private Israeli investment in the Zambian economy”.
Britain Agrees Deals with Zambia on Clean Energy and Critical Minerals
Britain’s Foreign Minister James Cleverly conducted a four-day visit to Zambia at the beginning of this month in order to deepen ties between the two countries. It was the first such visit in more than 30 years.
The UK’s Foreign Secretary announced the expansion of its clean energy partnership with Zambia (including a UK-Zambia Green Growth Compact), which includes up to GBP 2.5 billion worth of British investment in Zambia’s mining, minerals, and renewable energy sectors, in addition to GBP 500 million in British government-backed investments.
During his visit to the country, Cleverly toured the Mimbula Copper Mine, where British company Moxico Resources will invest an additional USD $210 million of private sector funding to expand production at the site. He also signed a Memorandum of Understanding (MoU) on critical minerals, laying the foundation for further UK support for the responsible mining of copper, cobalt, and other minerals fundamental to the clean energy transition.
Cleverly said of the agreement, “The UK-Zambia Green Growth Compact and our landmark agreement on critical minerals will support investment between UK and Zambian business, creating jobs in both countries”.
OTHER NEWS
Indebted nations can learn from Zambia’s breakthrough debt deal 01.08.23, The Africa Report
The developing country with a positive trajectory 02.08.23, World Finance
EG Capital welcomes Prosper Africa Catalytic Investment Facility and USAID as new partners is EG-Economic Empowerment Fund 10.08.23, African Business
Zambia’s plan to dig its way out of debt with a copper revival 13.08.23, Financial Times
What a US-DRC-Zambia electric vehicle batteries deal reveals about the new US approach towards Africa 21.08.23, Carnegie Endowment for International Peace
Billionaire Agarwal pledges to pay Zambia creditors before retaking mine 23.08.23, Bloomberg
Sibanye brings in Chinese partner for Mopani Copper Mines bid 29.08.23, Reuters
UPCOMING EVENTS
07.09.23 - Zambia ESG and Sustainable Finance Summit 2023
Livingstone, Zambia
28.09.23 - AfBC: UK-Africa Trade and Investment Summit 2023
London, UK