Zambia Investor Briefing: August 2024
OVERVIEW
The Zambian Development Agency (ZDA) recorded an impressive $8.9 billion in actualised investments between 2021-2024. In a statement the ZDA said “The USD$8.9 billion was recorded from 440 companies out of the 1048 companies registered between 2021 and 2024. Data from the 608 companies is still being awaited due to slow responses, once received the final actualised amount will be communicated accordingly”.
ZDA Director General Albert Halwampa will be speaking at the Africa’s Financial Services Investment Conference (AFSIC) 2024 in London 7-9 October. Halwampa will discuss investment opportunities available in Zambia including energy, agriculture, infrastructure development and manufacturing among others. Halwampa wrote in African Business that “Zambia is back in business” with $40 billion in investment committed in 2023 – up from $8.11 billion in 2022 and $3.3 billion in 2021.
President Hakainde Hichilema presided over the revival of Konkola Copper Mines (KCM) where he praised Vedanta Resources, KCM’s operator, for working with the government to get the mine back into operation.
Mopani Copper Mines successfully produced its first 200 tonnes of copper anodes since new equity partner, International Resources Holdings (IRH), took a 51% stake following its $1.1 billion capital injection in April.
Zambia reopened its border with neighbouring DRC, reviving the copper trade route and allowing goods to once more flow between the two nations. Shortly thereafter, the first shipment of US copper from mines in the DRC were loaded for transportation along the Lobito corridor, a key export route connecting mines in both Congo and Zambia to Lobito Port in Angola.
Sir Paul Collier, Professor of Economics and Public Policy at Oxford University’s Blavatnik School of Government, has praised President Hakainde Hichilema for reviving Zambia’s economic prospects. Writing in the Financial Times, Prof. Collier said the President had “built a team of competent ministers and advisers and crafted a programme of deep economic reform”.
A CLOSER LOOK
Mining Developments
President Hakainde Hichilema presided over the revival of Konkola Copper Mines (KCM) which he said will create more jobs for Zambians and increase tax revenues. The President praised Vedanta Resources, KCM’s new operator, for working with the government to get the mine back into operation. This follows Vedanta’s announcement in July that the company had arranged the financing of nearly $250 million needed to start paying off KCM’s creditors after it had secured approval from the High Court to take back control of the asset.
Speaking at Chililabombwe on the Copperbelt at the relaunch, Hichilema said “This mine will move two or three hundred thousand metric tonnes so it can contribute towards three million tonnes of copper – our vision”. The President also reiterated the governments “unwavering commitment […] to ensuring that the mining industry remains a cornerstone of Zambia’s economic development”.
In other mining news, Mopani Copper Mines successfully produced its first 200 tonnes of copper anodes since new equity partner, International Resources Holdings (IRH), took a 51% stake following its $1.1 billion capital injection in March. Mopani CEO Charles Sakanya said full operations at the mines are expected start in October of this year.
Elsewhere, Sinomine Resource Group, a Chinese-based mining services group, has invested $600 million in the Kitumba mine in Mumbwa District. The mine was opened last week by President Hichilema who indicated that this success continues to demonstrate a new era of Zambian mining success under the UPND government.
Finally, Zambia’s Ministry of Mines and Mineral Development signed a Memorandum of Understanding (MoU) with Ivanhoe Mines, which aims to further develop Zambia’s mining sector. At the signing ceremony Minister for Mines Paul Kabuswe spoke of Ivanhoe’s impressive track record when it comes to investment across the continent.
Energy and Technology
President Hichilema opened the inaugural Energy Forum for Africa conference at Mulungushi International Conference Centre in Lusaka, for which the theme was ‘Investment Opportunities in the Energy Sector in Zambia and Africa’. In his address, the President reiterated the “various regulatory and legal reforms we’ve undertaken to attract investment in the energy sector”. One month previously, Zambia officially opened up its electricity market to private industry.
Science and Technology Minister Felix Mutati announced Zambia has completed the construction of a ground receiving station which will pave the way for the launch of the country’s first satellite. The government has invested over $14 million in building the ground receiving station, with future plans to launch an earth-observation satellite to help address the challenges brought about by climate change in agriculture, land use and energy.
The ongoing drought is continuing to have a seriously adverse effect on the country’s energy sector, which is highly reliant on hydroelectric power. As part of efforts to diversify and stabilise Zambia’s energy supply for the future, President Hichilema this month announced the start of construction at Maamba Energy’s new 300MW geothermal plant in Southern Province. The facility is expected to come online in 2026.
LONG READS
Economic reforms are tempting finance back to Ethiopia and Zambia (Financial Times, 15.08.24)
Zambia is back in business (African Business, 19.08.24)
The US-backed railway sparking a battle for African copper (Financial Times, 21.08.24)
Scramble for critical minerals spurs and African rail revival (Bloomberg, 25.08.24)
UPCOMING EVENTS
Nairobi, Kenya 4-6 September
London, UK 26 September
Zambia Impact Investment Summit
Lusaka, Zambia 9-10 October