Zambia Investor Briefing - November 2022
ZAMBIA INVESTOR BRIEFING
November 2022
OVERVIEW
According to the Zambia Development Agency (ZDA) Zambia recorded USD 1.1 billion worth of investment pledges in Q3 2022, comparing favourably to USD 631 million in Q3 2021. ZDA projects that the 95 investment ventures will create more than 8,000 new jobs. Manufacturing attracted the most investment (USD 396 million), with energy, mining construction, transport, services, tourism, real estate, health and agriculture also featuring.
The Bank of Zambia has maintained the monetary policy rate unchanged at 9%, forecasting growth at 3% for 2022, 4% in 2023 and 4.1% in 2024. Governor Denny Kalyalya indicated that he expected inflation to continue its recent downward trend and return to the target range of 6-8% in Q1 2024, with an average of 8.5% expected in 2023. The next Monetary Policy Committee meeting is schedule for February 13 and 14, 2023.
President Hakainde Hichilema travelled to COP27 in Egypt where he met with creditors to press for the finalisations on a memorandum of understanding (MoU) on debt reduction. During the conference he also signed an MoU with the European Union on Forest Partnership as part of the EU Green Deal.
MTN Zambia launched its 5G service on November 24. The service covers approximately 65% of the population in Lusaka, Kitwe and Ndola, in addition to parts of Chingola, Solwezi and Kalumbila. MTN aims to reach 100% 5G coverage for Lusaka, Kite and Ndola by mid 2023, as well as continuing its rural connectivity programme. Meanwhile, Minister of Technology and Science Felix Mutati said government wants to achieve 100% internet connectivity by 2024.
The US launched two new projects in the country. USAID TradeBoost is a USD 30 million investment project to increase trade and investment nationally, regionally and internationally, while the USAID Business Enabling Project is a USD 14 million initiative to bring inclusive private sector investment and trade to Zambia that includes a strong focus on increased opportunities for women.
Government launched a fund in partnership with Huawei - the Hakainde Hichilema Innovation Fund. Under the initiative 50 young Zambians will receive scholarships in the ICT sector.
Mining Developments
As of November 21 Zambia’s mining cadastre office is accepting new license applications, having reopened on October 19 following its closure in February as part of efforts to clean up the licensing process.
The 10th Zambia International Mining, Energy Conference and Exhibition (ZIMEC) attracted over 300 delegates in Kitwe. During the President’s address he reiterated the government’s “steadfast commitment to meeting the ambitious yet achievable goal of raising annual copper production levels from the current 830 metric tons to 3 million metric tons.”
This month President Hichilema opened a new manganese mine in Luapula province. The 40 million tonnes deposit will be mined over a 20 year period. The mine is Zambian owned by Musamu Resources. The mine currently employs 250 people, which is expected to increase to 1,000 in five years time.
Debt Management
The Export-Import Bank of China (EximBank) is expected to lead Beijing’s team to renegotiate loans owed by Zambia to Chinese state-owned creditors worth almost USD 6 billion. The World Bank and IMF officials continue to press creditors to accelerate negotiations and US Ambassador to Zambia Michael Gonzales called on creditors to reduce the capital that is owed. Bank of Zambia Governor Kalyalya has indicated that he expects debt restructuring to conclude over the first half of 2023 with a significant positive impact on the budget. Meanwhile, the government has hired a private firm to audit domestic debt.
Events
The International Growth Centre (IGC) hosted the inaugural Zambia Economic Growth Forum 2022 (EGF) in partnership with the Government of Zambia. President Hichilema delivered the keynote during which he reiterated the importance of prioritising economic growth.
Speaking at the 2022 Zambian Association of Manufacturers - Proudly Zambian Expo President Hichilema directed the Ministry of Commerce, Trade and Industry to deliver reductions to business licensing costs.
Zambia hosted the 2022 Innovation Africa Ministerial Summit under the theme “digital transformation in education and skills development for Africa.” The event was officially opened by President Hichilema who called for joint efforts towards advancing innovation, transformative education and skills development on the continent, through impactful partnerships between government and industry.
Accountability and Transparency
Government launched the Risk Management Guidelines for the management of resources in the public sector. Commenting on their launch Minister of Finance Situmbeko Musokotwane said they were aimed at improving transparency, accountability and good governance.
LATEST TRENDS
GDP
Inflation
Currency
1 USD = 17.09 ZMW 30 day average = 16.519 Volatility (last 30 days) = 0.39%
OTHER NEWS
Zambia central bank launches "go cashless" campaign, 03.11.22, CGTN
Zambia gets a new lease of life, 04.11.22, fDi Intelligence
EXCLUSIVE Zambia says EximBank to represent Chinese lenders in debt talks, 08.11.22, Reuters
US Envoy Says Zambia Debt Restructure Must Inolve Haircuts, 13.11.22, Bloomberg
Jubilee Metals produces first export quality cobalt in Zambia, 22.11.22, Proactive Investors
Entain makes first play in Africa launching bwin Zambia, 17.11.22, SBC News
Fintech Unicorn Chipper Cash set to buy Zambia fintech pioneer Zoona, 18.11.22, TechCabal
Why Now Is the Right Time to Invest in Zambia, 24.11.22, Lusaka Times
UPCOMING EVENTS
13.12.22 - 15.12.22
Washington, DC
15.12.22 - 16.12.22
International Conference in Information and Communication Technologies
Lusaka
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