Zambia Investor Briefing May 2025
OVERVIEW
⛏️ MINING: Vedanta Resources is actively considering listing its Zambian copper unit to raise investment funds. Gemfields Group announced that it will resume open-pit mining at its 75% owned Kagem emerald mine in Zambia, ending a 4-month pause. Midnight Sun Mining Corporation told stakeholders that it is making steady progress on its Phase 1 exploration campaign for 2025 at the Solwezi project. Zambia’s Minister for Mines, Paul Kabuswe, announced that copper production increased by 30% compared to the previous year in the first quarter of 2025, reaching approximately 224,000 metric tons.
⚡️ ENERGY: Zambia’s Energy Regulation Board (ERB) has approved the $270-million Kalumbila-Kolwezi Interconnector Project. The Zambezi River Authority, a joint venture between Zambia and Zimbabwe which maintains the Kariba Dam complex, has increased its efforts to secure investment for the Bakota Gorge hydropower project. The Chisamba solar power plant, a major private project in Zambia with a $71.5 million investment, has reached 91% completion. The European Union has announced a funding package of €500 million to support the construction and maintenance of Zambian energy infrastructure.
🚚 TRADE: Namibia has gifted Zambia a piece of land near the Walvis Bay Port. This land will be used to build a dry port where goods can be stored and moved. Africa Finance Corporation (AFC) president Samaila Zubairu said the Lobito Corridor project would reach financial close towards the end of 2026.
📈 INVESTMENT LANDSCAPE: The IMF’s most recent mission to Zambia concluded earlier this month. Discussions focused on Zambia’s recovery, economic performance, and policies, particularly under the Extended Credit Facility (ECF) arrangement. Zambia signed a bilateral agreement with EXIM Bank of India to restructure $335 million of Zambia’s debt.
A CLOSER LOOK
Mining Developments:
Vedanta Resources is actively considering listing its Zambian copper unit to raise investment funds, CFO Ajay Goel told Bloomberg. The company, controlled by Indian billionaire Anil Agarwal, regained control of Konkola Copper Mines (KCM) last year after Zambia's government had triggered its provisional liquidation five years earlier due to disputes over expansion plans and tax payments. Vedanta has committed to investing $1 billion in the operation as part of securing its return. According to reports, the Zambian copper mining unit has hired Rand Merchant Bank to help raise the debt financing for the expansion of its operations in the country.
Gemfields Group announced that it will resume open-pit mining at its 75% owned Kagem emerald mine in Zambia, ending a 4-month pause triggered by weak market prices and cost-cutting measures. Kagem suspended all mining from January 1 to focus on processing ore from Kagem’s significant ore stockpile using the operation’s upgraded processing plant. Now, though, after Kagem’s recent auction results have increased management confidence in the current emerald market, and the decision has been made to recover premium emeralds for Kagem’s future higher-quality auctions.
Midnight Sun Mining Corporation told stakeholders that it is making steady progress on its Phase 1 exploration campaign for 2025 at the Solwezi project in Zambia, with work underway across all three of its priority targets. Drilling at the Kazhiba sulphide copper target is expected to begin by the end of the week. “We believe these targets have the potential to evolve into world-class copper discoveries,” said Midnight Sun CEO Al Fabbro. “This marks the first time our targets are being explored with such a rigorous and comprehensive methodology.”
Earlier in the month, Zambia’s Minister for Mines, Paul Kabuswe, announced that copper production increased by 30% compared to the previous year in the first quarter of 2025, reaching approximately 224,000 metric tons from around 173,000 metric tons in the first quarter of 2024. The boost is a positive step towards Zambia’s goal of 1 million tons a year by the end of 2025. Kabuswe noted in an accompanying statement that higher production by two companies in particular, Konkola Copper Mines and Mopani Copper Mines, contributed to the increased overall output.
Energy:
Zambia’s Energy Regulation Board (ERB) has approved the $270-million Kalumbila-Kolwezi Interconnector Project, a 200-kilometre high-voltage transmission line linking the country’s North-Western Province to the DRC. The ERB has described the project as a “major step toward strengthening regional power trade and advancing the government’s goal of attracting private sector investment in energy infrastructure”. The transmission line will connect to a substation at First Quantum Minerals' (FQM) Sentinel mine property in Kalumbila and was approved alongside two other solar and battery installations.
Meanwhile, the Zambezi River Authority, a joint venture between Zambia and Zimbabwe which maintains the Kariba Dam complex, has increased its efforts to secure investment for the Bakota Gorge hydropower project. The Authority has formed a team to seek investment in the proposed 2,400 megawatt facility near Victoria Falls, according to CEO Munyaradzi Munodawafa. Potential plans being considered in efforts to bolder Kariba’s capacity in the face of reduced rainfall due to climate change include drawing up to 16 trillion gallons of water annually from the Congo River.
The Chisamba solar power plant, a major private project in Zambia with a $71.5 million investment, has reached 91% completion. The Project, which will have an installed capacity of 100 megawatts (MW), highlights the increasing involvement of the private sector in Zambia’s energy production. Construction, which began in June 2024, is expected to last about two years. Upon completion, all electricity generated will be purchased by GreenCo Power Services to directly meet the specific needs of First Quantum Minerals, freeing up additional capacity for Zambian people. The solar plant is set to bring immediate local economic benefits, including over 200 direct jobs during its construction.
The European Union has announced a funding package of €500 million to support the construction and maintenance of Zambian energy infrastructure. This is part of the EU’s Global Gateway strategy, which aims to foster global connectivity, promote inclusive growth, and facilitate multilateral cooperation to address the challenges of climate change. A statement issued by the Ministry of Labour and Social Security explained that grants will “boost the country’s sustainable energy future through the rehabilitation of the Kariba Dam, with the recent investment being in the Zambia-Tanzania Interconnector, which will enhance regional power trade.”
Trade:
Namibia has gifted Zambia a piece of land near the Walvis Bay Port. This land will be used to build a dry port where goods can be stored and moved, making it easier and cheaper for Zambia to trade through the Atlantic Ocean. The gift was confirmed during President Hakainde Hichilema’s meeting with Namibian President Netumbo Nandi-Ndaitwah in Lusaka, during her visit to the country. In a statement posted to his Facebook page, President Hichilema commented, “Namibia fully aligns with this realization and Zambia’s vision of a land-linked economy, notably through the Walvis Bay–Ndola–Lubumbashi Development Corridor, which is key to enhancing regional trade and access to the Atlantic Ocean.”
In an interview earlier this month, Africa Finance Corporation (AFC) president Samaila Zubairu said the Lobito Corridor project would reach financial close towards the end of 2026, adding that the “initial cost estimates are promising” with “significant interest from multiple parties.” Various iterations of the feasibility study are complete, and the AFC said it is close to determining the overall project cost, and has commenced demining activities along some sections of the route. The US-backed Lobito Corridor is poised to become one of Africa’s most strategic transport and trade routes, unlocking billions in value across the continent.
Investment Landscape:
The IMF’s most recent mission to Zambia concluded earlier this month. Discussions focused on Zambia’s recovery, economic performance, and policies, particularly under the Extended Credit Facility (ECF) arrangement. An IMF press release explained that “Zambia’s economy has shown encouraging resilience despite economic shocks. Growth is expected to strengthen in 2025, supported by an anticipated rebound in agriculture and a pickup in mining activity.” The statement comes weeks after the IMF recognised Zambia as one of the leading nations in its 2025 Regional Economic Outlook for Sub-Saharan Africa for its remarkable progress in debt restructuring.
Zambia signed a bilateral agreement with EXIM Bank of India to restructure $335 million of Zambia’s debt. The deal covered $320 million owed by the central government and $15 million by ZESCO. Zambia’s Finance and National Planning Minister, Dr Situmbeko Musokotwane, said, “The signing of this bilateral agreement to structure the debt between the government of Zambia and the Export-Import Bank of India marks a significant milestone in Zambia’s ongoing debt restructuring efforts under the G20 common framework approach.” The restructuring is expected to lower interest rates and extend the repayment period, and ease the debt burden.
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LONG READS
Interview with Ms. Mukwandi Chibesakunda, Chief Executive Officer, Zanaco - (International Banker, 22.05.25)
U.A.E. Is Pouring Money Into Africa, Seeking Resources and Power – (The New York Times, 17.05.25)
Zambia Banks on China-Backed Rail Upgrade to Boost Mining Exports – (China Global South Project, 07.05.25)
UPCOMING EVENTS
11-12 June — Infrastructure Africa — Johannesburg, SA
11-12 June — Africa Impact Summit — Accra, Ghana
17-19 June — Africa Hospitality Investment Forum — Cape Town, SA
17-20 June — Africa Energy Forum — Cape Town, SA
19 June — Africa Digital Finance Summit — London, UK
20-21 June — UK Africa Trade Expo — London, UK
23-27 June — US-Africa Business Summit — Luanda, Angola
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