Zambia Investor Briefing: January 2024

Investor Briefing

31 Jan

OVERVIEW

At the end of December, Zambia’s Copperbelt Energy Corporation Plc (CEC) announced the successful registration of its $200 million Green Bond with the Securities and Exchange Commission, the first in Zambia. CEC Managing Director Owen Silavwe said the bond’s proceeds would “accelerate the actualisation of our ambitions to generate at least 200MW of renewable energy and specifically solar energy with possible storage implementation”.

Barrick Gold’s chief executive Mark Bristow met with President Hakainde Hichilema to inform him the expansion of Barrick’s Lumwana copper mine is being accelerated, with first production now scheduled for 2028. Last year the company had pledged $2 billion in a bid to increase copper production to a projected 240,000 tonnes per year and extend the life of the mine to 2060.
SG Global Renewables Centre (GRC), a Scotland-based hub for facilitating knowledge exchange between international development partner countries and the Scottish renewables sector, has formalised a partnership with the Zambia Renewable Energy Association (ZARENA), as well as in Malawi and Rwanda. GRC offers networking, shared learning, and resources to enable increased deployment of sustainable energy in its partner countries. Chairman of ZARENA Jospeh Mutale said the initiative would support the association’s objective of “delivering a transformative impact on the roll out of sustainable renewable energy solutions in Zambia”.
Zambia’s Transport and Logistics Ministry has announced plans to build a new rail connection linking Mpulungu harbour on Lake Tanganyika to a line that runs to Tanzania. The proposed 192km line will run through northern Zambia to the lake’s southernmost harbour and will boost trade in the region. The Transport and Logistics Ministry has asked companies to express their interest in financing and building the concession.
Minister of Science and Technology Felix Mutati has announced plans to establish Community Digital Transformation Centres (CDTCs) across the country in order to enhance Zambia’s digital capabilities and empower citizens through training and online service delivery. The plans have been developed on the back of Zambia’s recent partnership with Starlink, SpaceX’s satellite internet service, which is providing lawmakers with Starlink kits in their constituencies and enables internet connectivity even in remote areas.
Zambia’s “investment promotion ambassadors” visited Davos for the World Economic Forum annual meeting. The delegation included Finance and National Planning Minister Dr Situmbeko Musokotwane; Commerce, Trade and Industry Minister Chipoka Mulenga; and Albert Halwampa, Director General of the Zambia Development Agency (ZDA). Musokotwane said regarding the trip, “We are here to make diligent efforts to attract the best available global investment prospects in the green economy, mining, agriculture, tourism, value-addition, human development, and other growth boosting ventures, to our beloved country Zambia”.
Zambia Is Back’s Choolwe Chibomba sat down to interview Monica Musonda, CEO of Java Foods. They covered topics such as her business journey, the role of women in Zambia’s economic development, and why now is the time to invest in Zambian businesses.
President Hichilema is due to deliver a keynote address at Invest in African Mining Indaba 2024 in Cape Town next week. He is expected to discuss the future of mining in Zambia, outlining his plans to expand copper production and position the country as a major player in the global mining industry. He will also address efforts for Zambian mining to expand into a wider array of critical minerals, including cobalt, nickel, and manganese. The president’s speech will also explore the potential for collaboration between the government, industry stakeholders, and investors.

A CLOSER LOOK

Copperbelt Energy Corporation registers Zambia’s First $200 Million Green Bond

At the end of December, the Copperbelt Energy Corporation Plc (CEC) announced the successful registration of its $200 million Green Bond with the Securities and Exchange Commission, the first in the country. The company, which is based in Zambia, provides power infrastructure solutions. CEC Managing Director Owen Silavwe said the bond’s proceeds would “accelerate the actualisation of our ambitions to generate at least 200MW of renewable energy and specifically solar energy with possible storage implementation”.

The bond aligns with Zambia’s Green Growth strategy, devised by Hichilema’s government. The strategy aims to decarbonise the economy by developing resource-efficient and climate-resilient infrastructure. The Minister of Green Economy and Environment Collins Nzovu spoke at COP28 about the government’s establishment of two regulatory frameworks to aid in this endeavour: the Green Bonds Framework issued by the Securities and Exchange Commission and the Green Loans Framework issued by the Bank of Zambia.

Proceeds from the bond will finance the development of solar generation projects in Zambia within the CEC Group through CEC Renewables, an investment vehicle designed to realise renewable energy development. According to a statement issued by CEC, the bond is “a first for Zambia’s capital markets and is expected to attract more green finance in the country”. CEC’s announcement highlights the increasing importance of green bonds in financing clean energy infrastructure, and the role played by capital markets within this.

Investors in the Green Bond include Emerging Africa Investment Fund, ABSA Bank, Atlas Mara Bank Zambia, and the African Local Currency Bond (ALCB) Fund.

OTHER NEWS

IMF releases $187 million Zambia payout, says restructuring proposal being revised (Reuters, 20.12.23)

Albert Muchanga: New transport corridors will be ‘catalyst for AfCFTA success’ (The Africa Report, 04.01.24)

Zambia aims to resolve debt revamp standoff within three months (Bloomberg, 04.01.24)

Zambia: $10m company proves small farms can be big business (How We Made It In Africa, 09.01.24)

WEF Davos 2024: How Africa can achieve commodity-led industrialisation (African Business, 17.01.24)

India to send industry delegation for copper mining opportunities in Zambia (Indian Express, 22.01.24)

How could artificial intelligence help pregnant women in Zambia? (Forbes, 28.01.24)

UPCOMING EVENTS

Cape Town, SA:

Investing in African Mining Indaba 05-08.02.24

121 Mining Investment 05-06.02.14