Zambia Investor Briefing: February
CALL FOR SPEAKERS - INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY)
The Zambia Development Agency (ZDA) invites potential speakers and sponsors to apply for the inaugural Invest Zambia International Conference, which will take place from July 16 to 18 in Lusaka.
The event is set to be the largest business forum in the country. It will bring together business leaders from around the world and Zambian government officials to showcase the huge investment opportunities in the country.
Business leaders, development experts, or commentators interested in participating in a panel session, fireside chat, or solo presentation should email info@zambiaisback.com to learn more. Please include a short professional biography and topics you would be prepared to speak on.
Companies interested in sponsorship can also contact the same email. We offer a range of pre-set and bespoke sponsorship packages to suit a variety of budgets, helping to boost your company’s profile and reach key stakeholders.
Join us in shaping Zambia's economic future.
OVERVIEW
MINING: Vedanta Resources announced that it is trying to raise around $1 billion in debt financing to fund the development of its Konkola Copper Mines (KCM). Gold and copper mining company Barrick has signed a memorandum of understanding (MoU) to boost exploration and mining. Jubilee Metals announced that it had secured a high-grade copper resource to support the restart of its Roan operations in Zambia. First Quantum Minerals (FQM) reinforced its commitment to supporting the government’s vision of producing three million tonnes of copper annually. Giant Mineral Fields (GMF) has formed a strategic partnership with African Holdings Limited (AHL) to explore three Copperbelt license areas.
ENERGY: Government-owned ZESCO has signed a series of Power Purchase Agreements (PPAs) with 29 Independent Power Producers (IPPs) totalling over 332MW of new solar capacity. Solarcentury Africa Limited and the Industrial Development Corporation (IDC) have agreed to co-develop a 67 MWp solar power plant in Zambia.
TRADE: Zambia is now ready to start trading under the African Continental Free Trade Area (AfCFTA). The government suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness in the global market. President Hichilema has been praised for his response to the recent USAID cuts.
FDI: The Bank of Zambia raised its key interest rate by 50 basis points to 14.5%. DP World, a leading multinational logistics company, has proposed a $300 million investment to help position Zambia as a regional transport hub.
OFFICIAL VISITS: At the beginning of the month, President Hichilema travelled to Japan at the invitation of Japanese Prime Minister Shigeru Ishiba for a five-day working visit. President Hichilema has returned from Egypt, calling for increased trade and investment through joint public-private ventures between Egyptian and Zambian businesses.
A CLOSER LOOK
Mining Developments
Vedanta Resources announced that it is trying to raise around $1 billion in debt financing to fund the development of its Konkola Copper Mines (KCM). The Indian company, which owns 80% of KCM, said it planned to sell at least 30% of its holding in the copper mine last year. However, Chris Griffith, head of Vedanta’s base metals unit, told reporters at the Mining Indaba conference this month: "We are in a much higher likelihood that we can raise funds from a range of financing options… we own 80% of the business, and clearly we'd prefer to continue owning 80% of the business.” Vedanta Resources is eyeing the $1 billion in funding to boost copper output at KCM to about 300,000 metric tons per year over the next five years.
Meanwhile, gold and copper mining company Barrick has signed a memorandum of understanding (MoU) with Industrial Resources Limited (IRL), a subsidiary of the Zambian government’s Industrial Development Corporation. The MoU, which aims to boost exploration and mining, will help unlock the country’s maximum mineral potential amid Barrick’s own Lumwana Super Pit copper expansion. Mark Bristow, Barrick's CEO, emphasised the partnership's significance, noting that the collaboration aligns perfectly with Zambia's national economic development strategies.
In other mining news, the London-listed Jubilee Metals announced that it had secured a high-grade copper resource to support the restart of its Roan operations in Zambia after implementing a new power agreement last month. The Company has successfully commenced processing the new high-grade copper feed material at its Roan concentrator facility, which has a processing capacity of 45,000 tonnes per month.
First Quantum Minerals (FQM) reinforced its commitment to supporting the government’s vision of producing three million tonnes of copper annually at the Africa Mining Indaba this month. The company’s $1.25 billion investment in its S3 expansion project at the Kansanshi mine in Solwezi is expected to increase ore processing capacity to 55 million tonnes annually and extend the life of the mine by more than 20 years. FQM Director of Corporate Affairs John Gladston said, “First Quantum Minerals is a growth partner for Zambia’s present and future,” and called on the Government “to maintain regulatory regime stability so more large-scale mines like Kansanshi and Trident can come online and contribute to the 3 million tonne goal.”
Giant Mineral Fields (GMF) has formed a strategic partnership with African Holdings Limited (AHL) to explore three license areas in Zambia's Central African Copperbelt to deliver new sources of copper. The initiative aims to leverage Zambia’s untapped mineral resources amidst a global copper shortfall projected to reach 10 million tonnes annually by 2034. The licenses in key areas of the Lufilian Arc will undergo extensive geochemical and geophysical surveys and drilling to assess their potential. Trust Hatuma, CEO of Curprite Geo-services Limited, said, “This agreement with Giant Mineral Fields underscores the global interest in Zambia’s revitalised mining sector.
Energy
Government-owned ZESCO has signed a series of Power Purchase Agreements (PPAs) with 29 Independent Power Producers (IPPs) under the Micro-Generator Scheme, Presidential Solar Initiative, and Developer-Initiated IPPs, delivering over 332MW of new solar capacity. Construction is set to commence within two months and is expected to be fully operational by the end of 2025. The projects are also expected to generate hundreds of direct and indirect jobs in engineering, construction, and maintenance.
Solarcentury Africa Limited and the Industrial Development Corporation (IDC) have agreed to co-develop a 67 MW solar power plant in Zambia. Located near Chisamba in Central Province, the project will connect directly to the ZESCO backbone, enhancing the power supply and reducing the need to transfer power from the south. This initiative will primarily supply electricity to IDC's large industrial users, directly addressing Zambia's current power shortages. Jason De Carteret, CEO of Solarcentury Africa, commented, “Zambia’s urgent need for reliable power makes this project a crucial step towards energy security.”
Trade
Zambia is now ready to start trading under the African Continental Free Trade Area (AfCFTA) following the introduction of Statutory Instrument No. 94. and publishing its Provisional Schedule of Tariff Concessions (PSTC). This move allows Zambia to expand its market access beyond COMESA and SADC. The AfCFTA aims to create a single market of over 1.3 bn people with a combined GDP of approximately $3.4tn. Zambia’s Ministry of Commerce, Trade, and Industry encouraged the private sector to take advantage of this opportunity to enhance trade and to participate in line with the African Union's Agenda 2063, which aims to boost intra-Africa trade and contribute to building.
This comes as the government suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness in the global market and attract further investment. The CEO of the world-leading gemstone mining company Gemfields, Sean Gilbertson, praised the Zambian government's "decisive action" on the export tax. Gemfield-owned Kagem mine in Zambia accounts for about 25% of the supply of global rough emeralds and produced about 10 million carats of emeralds in 2024.
In other trade news, President Hichilema described the recent USAID cuts as long overdue and a wake-up call for African countries to grow their economies by enhancing bilateral trade and investment. President Trump’s January executive orders Reevaluating and Realigning US foreign aid triggered widespread alarm among aid-dependent nations like Zambia. Hichilema has been praised for his response, which reaffirmed the government’s commitment to securing alternative funding sources while strengthening economic management to safeguard vital social services.
Foreign Direct Investment (FDI)
Earlier this month, The Bank of Zambia raised its key interest rate by 50 basis points to 14.5%. Bank of Zambia Governor Dr Denny Kalyalya told reporters at The Monetary Policy Committee (MPC) quarterly meeting, “The underlying reason for doing this is to steer inflation back to the 6 to 8% target band, which is the medium-term objective and help anchor inflation expectations.” Higher emergency electricity tariffs as a result of the once-in-a-generation drought have heavily impacted inflation rates, but expected improvement in food supply and electricity generation means that the MPC’s projected balance of risks to inflation is tilted to the downside.
DP World, a leading multinational logistics company, has proposed a $300 million investment to help position Zambia as a regional transport hub. Following a meeting at State House between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna, an initial $50 million investment was announced as part of a Public-Private Partnership (PPP) with Zamcargo Limited. The partnership is expected to drive economic growth, making full use of Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure.
Official Visits:
At the beginning of the month, President Hichilema travelled to Japan at the invitation of Japanese Prime Minister Shigeru Ishiba for a five-day working visit. The trip focused on bilateral investment and included visits to Aichi, Kyoto, and Tokyo, where the President met with high-ranking officials from prominent Japanese organisations. Notably, Toyota Motors Corporation accepted the Zambian administration’s proposal to invest in solar power generation in Zambia.
Finally, President Hichilema returned from his latest state visit to Egypt. The Zambian administration called for increased trade and investment through joint public-private ventures between Egyptian and Zambian businesses. Egypt’s President Al-Sisi expressed Egypt’s readiness to invest in the strategic Lobito Corridor project. Hichilema emphasised the importance of private sector participation in financing capital projects to ease pressure on national treasuries. The trip concluded with the signing of several MoUs focused on trade, investment, and development cooperation.
LONG READS
Race to lead Africa’s top development finance institution hots up (CNBC Africa, 31.01.25)
More than mining: leveraging critical minerals for growth in Zambia (European Council on Foreign Relations, 10.02.25)
Zambia Is Making Progress On Cost Of Living (International Business News, 20.02.25)
Unlocking Zambia's carbon credit market (Dentons, 20.02.25)
UPCOMING EVENTS
4-6 March — Africa Energy Indaba — Cape Town, South Africa
11-12 March — UN Tourism Regional Forum on Gastronomy Tourism Africa — Arusha, Tanzania
11 March — GTR Africa 2025 — Cape Town, South Africa
19-20 March — Africa Investment Exchange (AIX) — Nairobi, Kenya
19-20 March — Zambia International Mining and Energy Conference — Kitwe, Zambia
25-26 March — Bonds, Loans & ESG Capital Markets Africa — Cape Town, South Africa