Zambia Investor Briefing August
▶️ WATCH: Choolwe Chibomba and a powerhouse panel discuss how Zambian Mining Can Power the Green Energy Revolution LIVE at the Invest Zambia International Conference (IZIC) this month
OVERVIEW
⛏️ MINING: Zambian President Hakainde Hichilema officiated the commissioning of First Quantum Minerals’ $1.25 billion S3 Expansion at Kansanshi. First Quantum Minerals secured a $1 billion gold streaming deal with a subsidiary of Royal Gold. Following the $1 billion gold-streaming deal easing balance sheet pressures, First Quantum Minerals has shelved plans to sell minority stakes in its Zambian copper mines. Jubilee Metals Group has provided an update on its Zambian copper portfolio. Turkish firm ALP24 has recently launched energy and mining projects across Africa, including in Zambia.
⚡️ ENERGY: Zambia has launched a new Solar Electrification and DRIVE Initiative project. ZESCO Limited has established a $300 million joint venture with Anzana Electric Group to deliver first-time grid connections for nearly two million Zambians along the Lobito Corridor by 2030. The World Bank Board of Executive Directors approved a $200 million International Development Association grant. Zambia has broken ground on a 100MW Solar PV project in the country’s Eastern Province.
💰 TRADE: Zambia and Qatar have signed a Memorandum of Understanding (MoU) covering 11 areas of cooperation across various sectors, valued at US $19 billion. The Zambian government approved the export of 501,620.5 Mt of surplus maize grain and mealie meal. Zambia is set to sign a concession agreement with TAZARA for the development of the Lobito Corridor, aiming to facilitate trade and promote regional integration. The implementation of a comprehensive zero-tariff policy covering all tariff lines has significantly boosted bilateral trade between China and Zambia.
📈 INVESTMENT LANDSCAPE: ZCCM Investment Holdings (ZCCM-IH) has handed over a K91 million dividend to the Ministry of Finance and National Planning. Bloomberg’s updated economic outlook in August 2025 has projected Zambia as Africa’s fastest-growing economy. Zambia’s public debt-to-GDP ratio is projected to decline to approximately 91.1% by December 2025, the first time in seven years. President Hakainde Hichilema’s state visit to Egypt in February has delivered significant results, with private investors pledging close to $500 million. The Zambia Investment & Innovation Roadshow 2025 is currently underway. Zambia’s inflation has slowed to a two-year low.
A CLOSER LOOK
Mining Developments
Zambian President Hakainde Hichilema officiated the commissioning of First Quantum Minerals’ $1.25 billion S3 Expansion at Kansanshi. The project extends the mine’s life to the 2040s and is set to double the ore processing capacity from 28 million to 53 million tonnes a year. FQM has set an annual target of 450,000 to 500,000 tonnes of copper annually. Key upgrades include a new processing plant, pit and fleet expansion, and a $115 million smelter upgrade. The project created 1,800 construction jobs and is anticipated to create an additional 800 permanent jobs, with 430 Zambian-owned companies involved. President Hichilema described the project as proof of the private sector's confidence in Zambia’s economic trajectory.
Earlier this month, First Quantum Minerals secured a $1billion gold streaming deal with a subsidiary of Royal Gold. The agreement provides upfront funding in exchange for a share of future gold production from the Kansanshi copper mine in Zambia. The deal boosts First Quantum’s financial flexibility and supports the $1.25 billion S3 Kansanshi expansion, representing a significant vote of confidence in Zambia’s mining sector and a step forward in the country’s goal of producing 3 million tonnes of copper annually by 2031.
Following the $1 billion gold-streaming deal easing balance sheet pressures, First Quantum Minerals has shelved plans to sell minority stakes in its Zambian copper mines. Last year, the company considered divesting minority interests in its Kansanshi and Sentinel operations, following the 2023 shutdown of its Panama Mine. CEO Tristan Pascall stated that the deal to sell part of Kansanshi’s gold output to Royal Gold has reduced the need to divest. “While we’re definitely open to partnerships and we continue to look at that, we are not looking for a transaction in Zambia.” The August 19 commissioning of the $1.25 billion Kansanshi expansion is set to restore positive cash flow from the Zambian operations.
In other mining news, Jubilee Metals Group has provided an update on its Zambian copper portfolio, highlighting progress in its integrated mine-to-mine production strategy. The Sable refinery, supported by the Munkoyo open pit and Project G, is being developed as the primary copper feed for cathode production, with drilling underway to explore combining multiple pits into a large-scale operation. The upgraded Road concentrator ramped up successfully, and Jubilee is also advancing its rights to the 240 Mt Large Waste Tailings dump, prioritising resources and monetising non-core stockpiles worth approximately $18 million.
Turkish firm ALP24 has recently launched energy and mining projects across Africa, including in Zambia, as they try to balance domestic supply security with efforts to expand international energy and mining partnerships. In Zambia, the ALP24 is investing in copper and cobalt projects, both of which are critical for electric vehicle technologies and the global energy transition. The projects are also designed to generate social benefits through technology transfer, environmental sustainability, and local job creation.
Energy
Zambia has launched a new Solar Electrification and DRIVE Initiative project, backed by an initial investment of $5 million, to bring clean and reliable energy to 250 facilities across all ten provinces. Once completed, the initiative will benefit more than 1.3 million people in Zambia, particularly in rural and underfed areas. In addition, this project is also providing 200 motorbikes to strengthen outreach and vaccine delivery, whilst also creating local jobs.
ZESCO Limited has established a $300 million joint venture with Anzana Electric Group to deliver first-time grid connections for nearly two million Zambians along the Lobito Corridor by 2030. The corridor is planned as a key infrastructure and transit route for exporting critical minerals and other goods from Central Africa to global markets. The partnership will expand electricity generation, including run-of-river hydropower, and focus on rural distribution. Under the agreement, Anzana will lead a pilot project in Zambia’s North-Western Province, aiming to accelerate initial connections by 2026. Anzana and other development partners will jointly invest $50 million to enable around 40,000 new households and business connections and add up to eight megawatts of new generation over the course of two years.
Earlier this month, the World Bank Board of Executive Directors approved a $200 million International Development Association grant for the 13th phase of the Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) Programme. The Programme is set to provide reliable and sustainable energy services to more than one million beneficiaries in Zambia within the next five years. The ASCENT Zambia project not only focuses on connecting Zambians living in remote and underserved communities, but it also aims to supply reliable and affordable power to businesses and industries in Zambia, which will, in turn, serve to support economic growth and job creation.
In other energy news, Zambia has broken ground on a 100MW Solar PV project in the country’s Eastern Province, marking another step forward towards fulfilling the country’s 1,000MW solar power target. The project is being developed in Chipata West, part of Chief Chinyaku’s chiefdom, and is expected to be completed within 12 months. “It is expected to provide locally generated clean energy within this part of the national grid, serving the rural communities in Eastern Province and create employment, skills transfer, boost commercial activities and trade in area and contribute to environmental sustainability through carbon emissions reduction,” the energy utility said.
Trade
Zambia and Qatar have signed a Memorandum of Understanding (MoU) covering 11 areas of cooperation across various sectors, valued at US $19 billion. The agreement spans energy and oil, banking and finance, housing and urban development, agriculture and food security, mining and minerals, logistics and infrastructure, as well as telecommunications, health, education, tourism, and industrial development. President Hichilema welcomed the agreement, noting that bilateral relations with Qatar had been formalised through this comprehensive agreement.
Meanwhile, the Zambian government approved the export of 501,620.5 Mt of surplus maize grain and mealie meal. In the 2024-2025 season, Zambia produced around 3.7 million Mt of maize grain, with 385,000 Mt carried over from the previous season, totalling 4.04 million Mt, exceeding the national requirements. Due to this surplus, the cabinet approved exports, which are expected to benefit local transporters, provide liquidity in the maize value chain, and encourage farmers to expand production.
Zambia is set to sign a concession agreement with TAZARA for the development of the Lobito Corridor to facilitate trade and promote regional integration. This agreement is to be completed under the Public Private Partnership (PPP). The concession agreement to develop the Lobito Corridor reflects wider African efforts to promote greater economic integration and closer regional ties to support continued development.
The implementation of a comprehensive zero-tariff policy covering all tariff lines has significantly boosted bilateral trade between China and Zambia. Chinese Ambassador to Zambia, Han Jing, stated that trade volumes between the two countries reached $3.56 billion in the first half of 2025, representing a 15.5% year-on-year increase. Speaking at the eighth Council Inaugural Ceremony of the Association of Chinese Corporations in Zambia on 25 August, Han said that the elevation of bilateral relations to a comprehensive strategic and cooperative partnership has strengthened mutual trust and yielded benefits from cooperation.
Investment Landscape
ZCCM Investment Holdings (ZCCM-IH) has handed over a K91 million dividend to the Ministry of Finance and National Planning, marking a 50 million kwacha increase from last year’s K41 million payout. Speaking at the handover ceremony in Lusaka, Finance Minister Situmbeko Musokotwane commended the company for delivering strong returns despite past challenges in the mining sector. He described mining as the “cornerstone and drive of the country’s economic growth.”
Bloomberg’s updated economic outlook in August 2025 has projected Zambia as Africa’s fastest-growing economy, with anticipated growth of over 6 percent – the highest since 2018 when the economy expanded at 4 percent. The forecast, presented as a follow-up at the Africa Business Media Innovators Summit 2025 in Livingstone, underscores Zambia’s remarkable financial turnaround following the landmark debt restructuring milestone of June 2024, which sparked renewed investor confidence and strong bond market performance.
Earlier this month, it was reported that Zambia’s public debt-to-GDP ratio is projected to decline to approximately 91.1% by December 2025. This marks the first time in over seven years the ratio has fallen below the 100 percent threshold. The latest IMF Country Report on Zambia forecasts a continued downward trajectory, with an expected drop to 69.9 percent by 2027. Dr Musokotwane stated, “A declining debt-to-GDP ratio is a critical indicator that the economy is growing faster than the debt burden, reducing the risk of debt distress.” Reduced public debt levels are expected to provide greater fiscal flexibility, enabling increased government investment in key sectors such as infrastructure, health, education, and social protection.
President Hakainde Hichilema’s state visit to Egypt in February has delivered significant results, with private investors pledging close to $500 million for energy and infrastructure projects, the government announced. Foreign Affairs Minister Mulambo Haimbe told parliament that the visit had been “fruitful, and Zambians can expect meaningful progress in agriculture, tourism, infrastructure, and energy.” The foundation of the investment package involves the construction of 200-megawatt solar plants in Kafue and Mongu, with operations expected to begin by 2026.
In other investment news, the Zambia Investment & Innovation Roadshow 2025 is currently underway. The strategic initiative is designed to enhance bilateral relations between Zambia and key US states, including California, Texas, and Georgia. The high-level tour aims to foster sustainable partnerships across various sectors, including technology, agriculture, energy, education, and finance. By facilitating direct investment opportunities and showcasing Zambian innovation, the Roadshow aims to promote knowledge exchange and capacity building.
Zambia’s inflation has slowed to a two-year low, easing to 12.6 percent in August from 13 percent in July, supported by a stronger kwacha that has gained 19 percent against the dollar on higher copper prices. Food inflation fell to 14.9 percent while non-food slowed to 9.3 percent, with prices rising 0.5 percent month-on-month. The easing trend has created the largest gap in six years between inflation and the central bank’s policy rate, raising expectations that the Bank of Zambia could cut rates in November.
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LONG READS
Exploring How Zambia Can Leverage Energy Transition Minerals (ETM) for Economic Transformation - (World Bank Group, 12.08.25)
Zambia’s economy gets to a level it has not experienced in two years – (Business Insider, 28.08.25)
UPCOMING EVENTS
9-23 September — UNGA 80 — New York, US
24 September — African Investment Forum — London, UK
25-26 September — International Construction Technology Fair — London, UK
CONTACT US
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