Zambia Investor Briefing: December 2023
OVERVIEW
• Canadian mining giant First Quantum Minerals (FQM) has signed a deal with Zambia’s Mimosa Resources to advance the development of the Fishtie copper project in Central Province. The deal – a revised version of the Kashime Development Agreement, first announced in 2012 - will see Mimosa aim to raise the $200 million required for the project’s development. Production is slated to begin in 2026 and is expected to extract 30,000 tons of metal per year by the end of the decade. FQM’s country manger Godwin Beene said regarding the deal: “We are determined that this resource should be developed now that the investment climate in Zambia has improved”.
• During his attendance at COP28 UAE, President Hakainde Hichilema used the international platform to engage with global leaders on climate change and global development. He presented a keynote address, engaged with numerous premiers and delegates, and participated in various panels. The Zambian president gave a Keynote Intervention at the ‘Leaders’ Event on Carbon Markets’ hosted by the EU alongside EU President Ursula von der Leyen, Prime Minister of Spain Pedro Sánchez, and Kristalina Georgieva of the IMF. In his address, Hichilema detailed Zambia’s national climate adaptation policy, promoting carbon market development. He also stressed the need to actively engage with rural communities regarding carbon projects.
• During his visit to Zambia, the Bank of China’s vice-president Lin Jingzhen announced plans to promote the use of renminbi (RMB) in the country. He said: “We will earnestly act upon our responsibility and leverage our role in Zambia to provide holistic services and products related to RMB and to promote the use of RMB in bilateral trade and economic activities”. Hichilema said the Bank of China “remains committed to supporting ongoing projects” in Zambia.
• Hichilema met with France’s Secretary of State in charge of Development, La Francophonie and International Partnerships Chrysoula Zacharopoulou during her trip to Zambia. According to the president, the pair discussed the country’s goal to connect to important of trade corridors in connecting to the Atlantic and Indian Oceans. The two also signed Declarations of Intent covering a number of areas.
• Zambia Is Back’s Choolwe Chibomba sat down in an interview with British High Commissioner to Zambia Nicholas Woolley. They covered topics such as the UK’s work in supporting investment into Zambia, Zambia’s renewable energy sector, and expectations for the UK-African Investment Summit 2024. Chibomba also met with the German Ambassador Anne Wagner-Mitchell. During the interview the pair discussed German investment in Zambia, as well as the ways in which the two countries can work together to mitigate climate challenges.
• At Zambia’s first Information and Communications Technology, Postal and Courier Services awards, Minister of Science and Technology Felix Mutati announced that 4G internet is being set as standard across the country. As part of this effort to enhance Zambia’s connectivity, 2G and 3G will be eliminated.
• US President Joe Biden hosted Angola’s President João Lourenço to discuss the US contributing $1 billion to the Lobito Corridor. The Corridor is a trans-African railway line connecting Zambia and the DRC to regional and global markets through the port of Lobito on Angola’s coast. Once completed, it will offer the shortest route to transport Zambia’s exports such as critical minerals to the coast and will also greatly benefit the region’s import economy.
A CLOSER LOOK
Hichilema Attends COP28 in the UAE
During his attendance at the COP28 climate summit, President Hakainde Hichilema used the international platform to engage with global leaders on climate change and global development. He presented a keynote address, engaged with numerous premiers and delegates, and participated in various panels.
The Zambian president gave a Keynote Intervention at the ‘Leaders’ Event on Carbon Markets’ hosted by the EU alongside President of the EU Ursula von der Leyen, Prime Minister of Spain Pedro Sánchez, and Kristalina Georgieva of the IMF. In his address, Hichilema detailed Zambia’s national climate adaptation policy, promoting carbon market development. He also stressed the need to actively engage with rural communities regarding carbon projects.
In efforts to continue to strengthen Zambia’s economic diplomacy with key global players, the Zambian president held numerous bilateral meetings during his time at COP, including with French President Emmanual Macron. He also held bilateral meetings with Ding Xuexiang, China’s Vice Premier. The talks were focused on strengthening the ‘all-weather friendship’ of the two countries. In a statement posted to his Facebook page, Hichilema said: “We remain committed to building on our bilateral relations for the benefit of our two countries and peoples”.
Hichilema’s other meetings of note, held on the margins of COP, include his engagement with Antonio Guterres, UN Secretary-General. He also met with Ahunna Eziakonwa, Assistant Secretary General of the United National Development Programme, with whom he explored the idea of Zambia hosting a regional technology hub and implementing a carbon strategy framework.
OTHER NEWS
AFC leads on critical Lobito rail link project (African Business, 30.11.23)
The New Guard: South Africa, Angola, Zambia (Africa Intelligence, 06.12.23)
‘Gem in the rough’: A look at Zambia’s ever-growing emerald industry (Forbes Africa 12.12.23)
Billionaire-backed KoBold Metals widens lithium hunt across four continents (Reuters, 14.12.23)
Jubilee Metals raises $16.6m to fund Zambia copper recovery (Mining Technology, 18.12.23)
Opinion: The three ‘geos’ shine against gloomy horizon (FDi Intelligence, 19.12.23)