Zambia Investor Briefing: December
OVERVIEW
LOBITO CORRIDOR: US President Joe Biden announced a $560 million funding package for the Lobito Corridor project during his historic trip to Angola. The African Finance Corporation (AFC) is committing up to $500 million to the Lobito-Zambia greenfield rail project.
FDI: President Hakainde Hichilema met with the UK’s Minister for International Development Annelise Dodds to discuss the UK-Zambia Green Growth Compact. He also met with a delegation from the Chinese People’s Political Consultative Conference (CPPCC), as well launching the UAE investor-led Zambezi Economic Free Zone (ZEFZ). The World Bank Group has projected that Zambia could secure $21 billion in cumulative investments between 2025 and 2030.
ENERGY AND TECH: Copperbelt Energy Corporation (CEC) has raised a $97 million green bond – underwritten by Stanbic Bank Zambia – to support the expansion of one of the country’s largest renewable energy initiatives. Indian software company Zoho Corp is investing $30 million to advance digital transformation for Zambia’s businesses.
OTHER DEVELOPMENTS: Zambia and France have signed a bilateral debt restructuring agreement; the African Development Bank (AfDB) has granted a $108 million loan to strengthen Zambia’s economic governance; and Zambia has officially joined the OECD Development Centre.
READ: Dr Kiru Sichoongwe, an economist at the University of Johannesburg, has written a guest article for ZIB on the country’s diamond jubilee, outlining how Zambia can leverage its next 60 years of independence.
A CLOSER LOOK
Lobito Corridor
On his historic trip to Angola this month, US President Joe Biden toured the Lobito Corridor railway project alongside President Hakainde Hichilema, Angolan President João Lourenço and the Democratic Republic of Congo (DRC) President Felix Tshisekedi. The railway project will connect Angola’s port city of Lobito to Zambia and the DRC, enhancing regional integration and economic opportunities.
During the Partnership for Global Infrastructure and Investment (PGI) Lobito Trans-Africa Corridor summit, Biden announced a $560 million funding package, bringing US investment to over $4 billion, making it the largest US-supported infrastructure scheme in Africa. Biden praised the corridor, highlighting its ability to reduce cargo transport times from 45 days to just 45 hours. The railway will improve clean energy technology and transform southern Africa into a major global exporter. According to the US President, “The Lobito Corridor is more than a railway; it’s a gateway to shared prosperity for Angola, the DRC, Zambia, and beyond.”
The African Finance Corporation (AFC) is also committing up to $500 million to the Lobito-Zambia greenfield rail project, a key component of the Lobito Corridor initiative. AFC CEO Samaila Zubairu announced that the corporation plans to invest over $3 billion across Africa in 2025 as part of a broader strategy to position the continent as a global hub for critical minerals and to promote open trade. Zubair told Bloomberg “Our aspiration is to continue to support the build-out of the infrastructure that will enable Africa to industrialise, help us address our challenges of poverty, inequality and unemployment and we can only do that by creating jobs.”
Foreign Direct Investment (FDI)
President Hakainde Hichilema welcomed a delegation led by the Rt Hon. Annelise Dodds MP, the UK’s Minister for International Development, to State House earlier this month. Their conversation centred around measures to drive economic growth through the UK-Zambia Green Growth Compact, signed in August 2023. The Compact aims to drive £2.5 billion of UK private investment into green projects in Zambia and commits to greater UK support to the Zambian energy sector.
President Hichilema also hosted a delegation from the Chinese People’s Political Consultative Conference (CPPCC), led by the Vice-Chairman of the National Committee, Mr Shao Hong. The reciprocal visit, which followed Hichilema’s trip to China in September, saw Zambia reaffirm its commitment to the One China Principle. The governments discussed the need to accelerate agreed-upon projects such as the revitalisation of TAZARA railway, Mulungushi Textile, and those in the mining sector.
Meanwhile, President Hichilema officially launched the Zambezi Economic Free Zone (ZEFZ), which encompasses the Sekute and Mukini Free Economic Zones. The 17,000-hectare initiative is strategically located near the Kazungula Bridge, a critical link connecting Zambia to Botswana, Namibia, and Zimbabwe. Upon completion, the UAE investor-led project is expected to create thousands of jobs, attract significant investment and promote tourism.
In other investment news, the World Bank Group has projected that Zambia could secure $21 billion in cumulative investments between 2025 and 2030, potentially creating 800,000 jobs in the mining, agriculture, tourism and energy sectors. The projection was announced during the Public-Private Dialogue Forum (PPDF) by Lead Economist at the International Finance Corporation, Ernesto Cordova. Cordova outlined the potential of structural reforms to catalyse Zambia’s private sector and bolster investor confidence.
Energy and Technology
Copperbelt Energy Corporation (CEC), a major power supplier in Zambia, has raised a $97 million green bond to support the expansion of its Itimpi Solar Project, one of the country’s largest renewable energy initiatives. The funds will be used to add 136 megawatts to the existing solar capacity, bringing the total to 250 megawatts by next year. This project marks the second phase of Zambia’s first $200 million green bond, issued by CEC in 2023. The bond is underwritten by Stanbic Bank Zambia, a unit of Standard Bank Ltd, with bondholders including Zambia’s ZCCM Investments Holdings, the Emerging Africa and Asia Infrastructure Fund, the African Local Currency Bond Fund, and Dutch development bank FMO.
Meanwhile, Indian software company Zoho Corp, in collaboration with Loita Business, is investing $30 million to advance digital transformation for Zambia’s small and medium enterprises (SMEs) and larger businesses. The initiative will be launched at Zambia Digital Week 2025. The event, organised by Loita Business and the Zambian Ministry of Technology and Science, is supported by partners such as Smart Africa, Afreximbank, and Digital Council Africa. It aims to foster collaboration among government, business, and international organisations to accelerate Zambia’s digital economy.
Other Economic Developments
Zambia and France have signed a bilateral debt restructuring agreement. The agreement marks a significant step in Zambia’s efforts to revamp its $13 billion external debt and is the first Zambia has reached with official bilateral creditors. Under the agreement, Zambia will extend the maturity of its debt by an average of 12 years, with repayments stretching beyond 2040. Interest rates are set at 1% for the next 14 years, rising to a maximum of 2.5% after that.
The African Development Bank has granted a $108 million loan to strengthen Zambia’s economic governance, allowing the implementation of the Fiscal Sustainability and Economic Resilience Support Programme. The multi-sectoral programme aims to improve domestic revenue generation through several measures, including the rollout of smart invoices, improving transparency of public spending, and stimulating agro-industrial development.
Finally, Zambia has officially joined the Organisation for Economic Corporation and Development (OECD) Development Centre as its fifty-sixth member and 12th African country. The Centre supports developing and emerging economies in fostering sustainable growth, reducing inequalities, and improving livelihoods. With regard to Zambia’s membership, the OECD stressed the importance of advancing debt restructuring discussions and providing new forms of liquidity, debt relief, and new development finance.
UPCOMING EVENTS
Lusaka, Zambia 28-30 January