Zambia is Ready for Business, Assures President Hichilema
Last week was a busy week for Zambia’s President Hakainde Hichilema and one that is already being considered a significant milestone in the country’s return to economic stability and prosperity. The President accepted an invitation to attend the coronation of King Charles III on Saturday 6th May and made the most of his trip by pursuing a week of business talks with delegates and investors across the UK and France.
President Hichilema announced on Friday evening that “After a week of over 20 successful meeting and engagements in England, Scotland and France, we have departed from London and are heading back home. We are positive that these engagements will yield positive growth and development for the Zambian people”.
President Hichilema, spotted at Heathrow airport on his way back to Lusaka.
On Tuesday, 9th May, President Hichilema met with the CEO of the UK government’s finance institution, British International Investment (BII), Nick O’Donohue. BII has to date invested more than $100 million in the Zambian economy, especially in the agricultural, energy and economic sectors. President Hichilema assured Mr O’Donohue that the BII’s “investments are safe”, and that Zambia was “looking for mutually beneficial partnerships based on common values and interests for the people of Zambia and the UK”.
On Wednesday, 10th May, President Hichilema held a meeting with Scotland’s First Minister, Humza Yousaf, to strengthen bilateral ties between the nations; HH was delighted to announce that Scotland had committed £1 million to the construction and maintenance of an academic economic research facility in Zambia.
That afternoon, Mr. Hichilema met with Emmanuel Macron, President of France, who sits on the board of the Paris Club of Creditors and the G20 intergovernmental forum. Also present at the meeting were Zambia’s Ministers of Foreign Affairs and International Cooperation, Stanley Kakubo, and of Finance and National Planning, Situmbeko Musokotwane, and some have speculated that some significant trade agreements were tabled at the meeting. All President Hichilema was willing to tell the press was that state debt relief and investment were discussed, and that the meeting was successful.
Presidents Macron and Hichilema before their meeting.
After a number of days of meeting with world leaders, CEOs of global financial institutions and economic experts, President Hichilema headed to the Zambia Investor Forum and Africa Debate in London on Wednesday and Thursday, both organised by Invest Africa, to speak with prospective investors. Mr Hichilema began his keynote speech on Wednesday by reiterating that his government was “committed to reforms – after all, we were elected on a ticket of change, to improve the lives and livelihoods of our people […] through the economy”.
President Hichilema delivering his keynote speech.
President Hichilema said that his government would pursue private sector partnerships to improve the economy and, therefore, the wellbeing of Zambia and its people. He said that the New Dawn government had shown “clear intent” in its meetings with the International Monetary Fund, a major U.S. financial agency and institution which has been pushing for creditors to agree to a framework for Zambia’s debt relief.
Finance Minister Situmbeko Musokotwane urged major investors and economic gurus present at the event to “push for this debt relief to take place”, as Zambia had met all requirements set out in the framework submitted by creditors. Zambian and Western financial figures alike have been frustrated by an apparent reluctance from Chinese creditors to agree to debt relief, though the state visit of President Hichilema and Ministers Musokotwane and Kukubo may prove to be what is needed to move talks forward.
Commerce, Trade and Industry Minister Mulenga announced that the government had set aside 800,000 hectares of land for agricultural development. Zambia enjoyed a record maize harvest last year and will be hoping to shatter that record after receiving assistance from a multi-partner group led by USAID (the United States Agency for International Development) that has put in place the necessary infrastructure to fight against transport issues that have historically contributed to 30% of Zambia’s post-harvest losses. Seven Smart Integrated District Aggregation Centres (SIDAC) have been built to process and store 100,000 metric tons of maize and other grains that would otherwise go to waste. National and international initiatives have also successfully raised awareness about crop diversity in the country, ensuring agricultural stability, sustainability and soil re-enrichment.
Minister Mulenga at the Zambia Investment Forum.
Foreign Affairs Minister Kakubo also reminded investors that Zambia’s vast quantities of minerals “are in the ground, and most of them are not yet explored”. The exploration that has been done shows that Zambia has 6% of the world’s copper reserves and huge deposits of cobalt: two metals that will continue to grow in value as the world transitions to green energy and electrically-powered vehicles.
Zambia is also known for its rich deposits of gold, iron, nickel, manganese and emeralds. The country is the world’s seventh-largest producer of copper, the sixth-largest producer of cobalt, and boasts the largest emerald ever mined. The New Dawn government has recognised the potential for its mineral reserves to transform the nation’s fortunes, making mining one of the primary sectors driving economic growth and benefitting people across the country. Kakubo stressed that he and other senior figures in the mining industry were looking for partnerships to aid exploration into mineral deposits and expansion of the country’s mines. In May 2022, First Quantum Minerals approved plans for a $1.25 billion expansion of the Kansanshi copper mine after “renewed confidence” in Zambia’s economic climate, and other major deals have followed since.
On Thursday, President Hichilema attended Invest Africa’s Africa Debate, an investment summit focused on the African continent whose themes included “the future of African trade, discussing and debating the continent’s trade profile”. Mr. Hichilema gave a keynote speech alongside Andrew Mitchell, the UK Minister of State in the Foreign, Commonwealth & Development Office (FCDO). With a touch of humour, Mr. Hichilema spoke of the importance of education, saying that without the education he had received, instead of being President of Zambia he would “be in the village with 8 or 10 wives”. He reminded the audience that waning diplomacy, the decline of democracy and insufficient protection of human rights were not good for business, highlighting the importance of “peace, security, stability”. He said it was the responsibility of those in power to create a landscape that invited investment and economic growth.
President Hichilema deep in conversation at the Africa Debate.
Karen Taylor, CEO of Invest Africa, who hosted the Investor Forum event, said that “since President Hichilema took office in August ’21, Zambia has undergone a significant shift, change and focus in its economic policies and its approach”. She said that Invest Africa would continue to market Zambia as an investment destination, and that the steps taken by the government had been a significant factor in many organisations’ decision to invest in Zambia. Ms. Taylor applauded the economic reforms the UPND government had made, insisting that this had created an “enabling environment” for foreign direct investment. Mr. Hichilema said after the event that he was “humbled by the huge interest” in Zambia’s economy, and the attendance of “hundreds of key business players from various economic sectors”.
During the Zambia Investor Forum, Zambian Ministers “held a series of meeting with key players in the agriculture, tourism, mining, infrastructure, and energy sectors”, negotiating “investment in our country that will create opportunities and jobs for our citizens,” said Mr. Hichilema. After the event, Mr. Hichilema met with UK Foreign Secretary, James Cleverly, who “expressed how impressed the UK is with Zambia’s development trajectory”, and “reaffirmed the UK government’s support for Africa to have a bigger voice at the G20”. President Hichilema said the meeting was productive, and promised that the government would “continue to encourage joint ventures to ensure that these investments benefit as many of our people as possible”.
President Hichilema with Minister Cleverly at their meeting.