Zambia Investor Briefing June
INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY) - BACKCHAT LIVE PANEL ANNOUNCED
Join us at the Invest Zambia International Conference on 17 July for a special live recording of BackChat!
Host Choolwe Chibomba and a panel of public and private sector experts, including:
Kakenenwa Muyangwa: CEO of ZCCM-IH,
Chipokota Mwanawasa: Chief Advisor to the President of Zambia,
Wezi Gondwe: Managing Director of Africa Greenco,
Jonny Velloza: CEO of Kobaloni Energu,
Kathutshelo Mapasa: Head of Africa at Appian Capital Advisory
Choolwe and the panel will be discussing 'How Can Zambian Mining Power the Green Energy Revolution?'
Get your tickets now at http://zda.org.zm/izic and join our live audience for a chance to participate in the Q&A.
OVERVIEW
⛏️ MINING: First Quantum Minerals (FQM) contributed over $2.6 billion to Zambia’s economy in 2024 through its operations at the Trident and Kansanshi mines. All mines in the Copperbelt are reporting increased production, according to Elisha Matambo, Minister of Copperbelt Province. Meanwhile, President Hichilema officiated the unveiling of JCHX Mining, a Chinese-based mining services firm, as the new strategic investor in Lubambe Copper Mines.
⚡️ ENERGY: Zambia’s Energy Regulation Board (ERB) announced further reductions in fuel pump prices. The Copperbelt Energy Corporation (CEC) has made history as the first company listed on the Lusaka Securities Exchange (LuSE) to achieve a market capitalisation of over $1 billion. The Sustainable Energy Fund for Africa (SEFA) has committed $8 million toward a $26.5 million financing package to support the 32 MWp Ilute Solar Project. Globeleq has entered Zambia’s energy market, acquiring a 51% stake in Lunsemfwa Hydro Power Company (LHPC) from Norfund.
🚚 TRADE: In a concerted effort to diversify Zambia’s economy, President Hichilema’s government is in discussions with carmakers to attract investment from manufacturers of electric vehicle components into the country.
📈 INVESTMENT LANDSCAPE: Finance and National Planning Minister Situmbeko Musokotwane announced that Zambia’s economy is expected to expand by at least 6% as the continent’s second-largest copper producer reaps the benefits of improved rainfall and higher metal production. A bumper maize harvest, late in May, has led to inflation easing to an 11-month low.
A CLOSER LOOK
Mining Developments
Canada-listed First Quantum Minerals contributed over $2.6 billion to Zambia’s economy in 2024 through its operations at the Trident and Kansanshi mines in North-Western Province, according to the company’s Global Tax Transparency and Economic Contributions Report, released last month. The report shows that FQM paid $650 million in taxes, spent $1.75 billion on local procurement, disbursed $236 million in wages to local employees, and invested $13 million in community development initiatives. The two mines produced 402,000 tonnes of copper last year, and the company currently employs over 11,000 people in Zambia, supporting over 2,000 local suppliers.
All mines in the Copperbelt are reporting increased production, according to Elisha Matambo, Minister of Copperbelt Province. Mopani Copper Mines, which owns the Nkana and Mufulira mines in Zambia's Copperbelt region, aims to produce 300,000 metric tonnes per year at its maximum production capacity. Minister Matambo relayed to the EU Ambassador to Zambia that this production would “contribute to the three million metric tonnes which we (as a country) are aiming to achieve by 2030.” Mining houses, including KCM, Mimbula and Lubambe, have also reported an increase in copper production.
Meanwhile, President Hichilema officiated the unveiling of JCHX Mining, a Chinese-based mining services firm, as the new strategic investor in Lubambe Copper Mines. JCHX’s investment is expected to revitalise operations at the site, particularly the Lubambe deep shaft and to inject both capital and technical expertise. The partnership aligns with the New Dawn administration’s focus on revitalising key infrastructure projects, which are expected to attract foreign investment and create high-quality jobs in the Copperbelt.
In other mining news, diversified metals producer, Jubilee Metals Group, has successfully completed extensive processing trials at its Roan concentrator in Zambia’s Copperbelt. CEO Leon Coetzer announced that the results of these trials “have affirmed Roan's unique capabilities to process transitional copper reefs, which are available in vast quantities both at surface and in near-surface mining operations.” Jubilee notes that the combined Roan and Munkoyo high-grade concentrations are expected to produce 288 tons per month of copper units in June, increasing to 400 tons per month by August and between 500 tons and 550 tons per month by October.
Energy
At the start of the month, Zambia’s Energy Regulation Board announced further reductions in fuel pump prices. Diesel decreased from K27.38 to K25.12 per litre, petrol dropped from K32.14 to K31.36 per litre, and kerosene decreased from K26.88 to K24.79 per litre. Following the announcement, energy expert Johnstone Chikwanda said that consumers of petroleum products in the country are likely to save at least one billion Kwacha from sustained reductions in pump prices over the last three months. The reductions in price, resulting from concerted government efforts to increase grid capacity, have been broadly praised as they ease pressure and improve household purchasing power.
In a landmark achievement for Zambia’s capital markets and energy sector, the Copperbelt Energy Corporation has made history as the first company listed on the Lusaka Securities Exchange to achieve a market capitalisation of over $1 billion. Verona Nkolola, CEC’s head of Corporate Communications, announced the milestone, which followed a 6.19% increase in the company’s share price, bringing 2025’s total growth to over 27%. LuSE Chief Executive Officer Nicholas Kabaso praised the development as a turning point for Zambia’s capital markets, expressing his confidence in capital markets would as an anchor for Zambia’s sustainable economic development.
The Sustainable Energy Fund for Africa, managed by the African Development Bank (AfDB), has committed $8 million toward a $26.5 million financing package to support the 32 MWp Ilute Solar Project, located near Sesheke. The plant, developed under a market-based Power Purchase Agreement with regional power trader GreenCo, will supply electricity via the Southern African Power Pool. The project avoids sovereign guarantees, easing the burden on Zambia’s public finances, and is seen as a replicable model for regional energy integration and private-sector investment.
At the same time, Globeleq has entered Zambia’s energy market, acquiring a 51% stake in Lunsemfwa Hydro Power Company from Norfund. LHPC, headquartered in Kabwe, Zambia’s Central Province, operates two hydroelectric plants totalling 56 MW and is currently developing a 20 MW solar project. The company supplies power to ZESCO and private clients, and holds a trading license with the Southern African Power Pool. The investment marks Globeleq’s first hydropower investment in Africa and forms part of the company's broader renewable energy expansion in Zambia, where it plans to build over 400 MW of renewable capacity, including solar, wind, and battery storage projects.
Trade
In a concerted effort to diversify Zambia’s economy, President Hichilema’s government is in discussions with carmakers to attract investment from manufacturers of electric vehicle components into the country. Finance Minister Musokotwane highlighted Zambia’s proactive approach during the Bloomberg Africa Business Media Innovators conference in Livingstone, explaining that the government has been engaging with international automakers, especially during recent visits to Germany. “We have been talking, even last week when I was in Germany, telling these companies to please consider the manufacture of some of your electric-vehicle components in Zambia,” said the finance minister as he urged EV manufacturers to utilise the country’s expansive copper resources to help develop electric vehicle engines. He added that these components could then be shipped to existing factories in South Africa, which currently exports EVs globally, creating a hub for EV components manufacturing in the region.
Investment Landscape
Earlier this month, Finance and National Planning Minister Situmbeko Musokotwane announced that Zambia’s economy is expected to expand by at least 6% as the continent’s second-largest copper producer reaps the benefits of improved rainfall and higher metal production. Growth will accelerate to the highest level since 2021, added Situmbeko Musokotwane during the interview in Livingstone. Zambia’s economy grew by about 4% in 2024, and inflation has started to slow. Zambia is Africa’s second-best performer against the dollar this year, after a sharp mid-month rally, and it’s expected to appreciate by a further 11% in 2025.
A bumper maize harvest, late in May, has led to inflation easing to an 11-month low. Consumer prices rose by 15.3% compared with 16.5% in April, Zambia’s Chief Statistician Chola Daka told reporters in Lusaka. Corn output is expected to more than double to a record 3.66 million tons in 2025, compared to the previous year, which will help ease pressure on food prices. Food inflation, which had begun decelerating for the first time in more than a year in March, slowed to 17.9% in May, compared with 18.7% in the previous month. Finance Minister Situmbeko Musokotwane hinted that inflation is expected to return to single digits this year.
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LONG READS
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UPCOMING EVENTS
2 July — The Africa Debate — London, UK
2-8 July — Zambia International Trade Fair — Ndola, Zambia
2-3 July—Mining on Top Africa (MOTA) — Paris, France
3 July — Digital Finance Africa — Cape Town, SA
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