Zambia Investor Briefing: March 2023
OVERVIEW
Invest Africa, a leading business and investment platform, led a delegation to Zambia formed of 9 companies across a multitude of sectors, from energy and mining to infrastructure and logistics. The team held a roundtable discussion with President Hichilema in State House, Lusaka, to better explore ways to invest in the Zambian economy. The mission also held meetings with Bank of Zambia Governor Denny Kalyalya and Albert Halwampa, Director of the Zambia Development Agency (ZDA).
A consortium of investors from the energy and mining sectors presented to President Hichilema on their intention to develop a new wind and solar project. UK-based Chariot Transitional Energy, in partnership with French giant Total, has agreed to fund and construct a USD 500 million renewable energy project to supply power to Canadian mining company First Quantum Minerals (FQM), which support FQM’s Zambian operations.
President Hichilema travelled to Qatar this month to participate in the LDC5 Conference in Doha. Over a period of five days, the conference convened world leaders, representatives from the private sector, civil society, parliamentarians and the youth to advance new ideas, raise pledges of support and accelerate sustainable development in areas where international assistance is needed most.
Lusaka played host to the inaugural EU-Zambia Pharmaceutical Forum, under the banner ‘Strengthening Healthcare through Local Pharmaceutical Manufacturing’. The goal of the forum was to encourage and promote the manufacture of pharmaceutical products in Zambia. President Hichilema, who addressed the forum, said local pharmaceutical companies must be willing to “collaborate and partner with well-established foreign pharmaceutical companies” to build greater capacity and experience.
Direct flights between Turkey and Zambia have resumed following a two-year hiatus owing to the Covid-19 pandemic. The route will be operated by Turkish Airlines, connecting Istanbul with Lusaka. “This is a positive development for both Turkey and Zambia as the direct flights between Istanbul and Lusaka will facilitate business trips, travel and tourism”, Turkey’s ambassador to Zambia, Istem Cırcıroğlu told Anadolu Agency.
South African financial services group, ABSA, opened the ABSA Bank House in Lusaka, Zambia. President Hichilema led proceedings at the official unveiling of the new building. The president spoke of the importance of the private sector in bringing about greater development.
Investor and Trade Mission
Invest Africa led a three-day mission to the Zambian capital, facilitating dialogue between foreign investors and government. Global law form DLA Piper, German technology giant Siemens, South African financial services group ABSA, and logistics firm DHL, were among those that joined the mission.
The trip, which connected international businesses looking for investment opportunities, formed part of the New Dawn government’s efforts to attract multinationals to invest.
Projects showcased included the Mulembo-Lelya Hydroelectric Project, which is looking to raise USD 285 million and will generate 118 MW of electricity once completed, and the Shangombo Sugar Project, which requires USD 522 million through an FDI majority stake. The project is located at a greenfield site in Western Province.
Mining and Energy Developments
A consortium of investors from the mining and energy sectors presented a renewable energy project to President Hichilema at State House in Lusaka. Mphepo Power, Total Eren, Chariot and First Quantum spoke of their intended projects to develop 770 MW of wind and solar that would greatly contribute to Zambia’s grid resilience.
The Kafue Gorge Lower Hydropower Station, located in Southern Province, was commissioned by President Hichilema, adding a total of 750 MW to Zambia’s national grid. The dam, which was built in collaboration with ZESCO and Chinese company Sinohydro Corporation Ltd, will help not only Zambia’s energy resilience, but also the country’s wider economy, according to the president.
President Hichilema was present to open the Mimbula Mine in Chingola. During the ceremony, he told the press that funds had been secured to reopen the copper mine at Mopani, operated by Konkola Copper Mines (KCM). In a written statement, the president said his government would “continue providing an enabling environment for business to thrive because our people need jobs and business opportunities”.
5th UN Conference on Least Developed Countries
President Hichilema held a number of meetings on the sidelines of the LDC Conference in Doha, Qatar, including with Chrysoula Zacharopoulou, the French Minister of State for Development, Francophonie and International Partnership. Discussions centred on France’s role as co-chair of the G20 Creditor Committee for Zambia. Endorsed by the Paris Club, the committee is tasked with seeking resolutions to Zambia’s debt issue.
The president further met with Qatar’s Deputy Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman Al-Thani. “[W]e encouraged Qatari investment in Zambia as we push for more jobs through a thriving private sector”, Hichilema remarked. Zambia is soon to open an embassy in the Qatari capital.
The UK’s Minister for Development and Africa, Andrew Mitchell, pledged to support Zambia’s debt restructuring under the Common Framework, while emphasising the UK’s continued commitment to invest in Zambia through British International Investment (BII), the UK government’s development finance institution.
Democracy Summit
Zambia co-hosted the second iteration of the Summit for Democracy, a two-day, virtual event, alongside international partners the US, South Korea, Costa Rica and the Netherlands. The theme of the event, organised by the US, was ‘Free, Fair and Transparent Elections, as the Foundation of Democratic Government’.
During his keynote address, President Hichilema underscored the need for strong leadership and institutions of governance around the world to cement democracy. “We should ask ourselves: what is it that we need? Strong leaders or strong institutions? Or both?" he said, adding that electoral conflicts were a deterrent to the democratic gains made by states post-colonial rule.
Currency:
1 USD = 21.23 ZMW 30 day average = 21.326 Volatility (last 30 days) = 0.48%
OTHER NEWS
Skilled miners critical to meeting production targets, 01.03.23, Times of Zambia
Zambia’s developing international relations, 07.03.23, Chatham House
Statement by Press Secretary Kirsten Allen on Vice President Harris’s Travel to Ghana, Tanzania, and Zambia, 13.03.21, The White House
Malawi turns to Zambia Defence Force for cyclone rescue mission, 16.03.23, Nasa Times
Zambia’s President: ‘You cannot eat democracy’, 28.03.23, The Washington Post
US Vice-President Harris’ visit to Zambia raises excitement, 29.03.23, Voice of America
Zambia Airways resumes flights to Zimbabwe after 27 years, 29.03.23, Simple Flying
UPCOMING EVENTS
04.04.23
Select Zambia Investment Forum 2023
Lusaka, Zambia
26.04.23 - 27.04.23
Zambia Institutional Investors Forum
Lusaka, Zambia
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