UK BII To Scale Up Investment In Zambia For Sustainable Development
Zambia Invest, April 22, 2022
On 5th April 2022, the UK’s Minister for Africa, Vicky Ford, and UK’s development finance institution CEO Nick O’Donohoe celebrated in Lusaka the launch of the institution’s new name, British International Investment (BII), formerly the CDC Group.
The event, which was attended by Ministers and business leaders, marked the first official launch of the BII brand in Africa, demonstrating the UK’s commitment to working with the Government of Zambia on productive, sustainable, and inclusive growth.
After 74-year of history across Africa and a track record of investing to support private-sector growth and accelerate impact, BII will scale its commitment to Africa and set new ambitions to usher in a new wave of investment in clean and green infrastructure and digital transformation.
BII investment already supports over 6,000 jobs across 20 companies within a range of sectors, and its recent allocation of a USD 20 million trade finance facility to five banks in Zambia, provides fresh capital that helps keep trade flowing through the economy.
Then Foreign Secretary Lizz Truss Talking at a BII Event in 2021
BII will continue to make investments that bolster financial institutions and businesses, create jobs, and boost trade in Zambia.
Moreover, the strategy to scale climate finance in Africa will help deliver on the Green Growth Compac, a framework signed by the UK and the Government of Zambia outlining their joint objective to build a stronger, more diversified, and inclusive Zambian economy.
Commenting on the launch, Nick O’Donohoe, CEO of BII, said: “I am pleased to be here with Minister Ford in Zambia, a country with whom BII has such a strong shared history. From our first investment in Zambia over 70 years ago, we have targeted a broad range of sectors where we saw opportunities to respond to the country’s growth needs and help mobilize greater investments to transform the economy. As we step into our new strategy under a new name, as a British institution at the heart of the UK Government’s international financing offering, we remain committed to scaling investment that will address the most pressing development needs across Africa. In Zambia, we will direct our capital toward supporting industries that will ensure Zambia’s green development pathway and help build economic prosperity for future generations.”
For her part, Minister for Africa Vicky Ford, MP said: “Launching the new British International Investment (BII) here in Zambia is a key moment for the UK financing of private sector growth and infrastructure across Africa. We are committed to support countries grow their own economies, bolster private sector investment and trade, and deliver the returns that will support wider socio-economic development.”
She also announced that GBP 4m of UK aid funding is being invested through InfraCoAfrica into projects in Zambia that will help boost electricity access for families and businesses.
Zambia to Export Additional Power to Namibia
CGTN, April 13, 2022
Zambia will start exporting an additional 80 MW of electricity to Namibia following an agreement signed by the utility companies of the two countries on Tuesday in Lusaka.
Zambia's Zesco Limited and Namibia's Nampower signed a power supply agreement for the export of an additional 80 MW in addition to 100 MW being exported after the first agreement was signed in 2020.
Victor Mapani, the Managing Director of Zesco Limited, said the signing of the agreement demonstrated the continued cooperation and trust between the two utilities.
According to him, being a member of the Southern African Power Pool has created opportunities for Zesco to play a major role in trade in the regional power blocks.
Kahenge Haulofu, the Managing Director of Nampower said the agreement demonstrated the relationship that exists between the two companies over the years.
He said such collaboration will make a meaningful contribution to the economies of the two countries.
Image via CFP
Ethereum Founder Is Backing Zambia’s Bid to be Africa’s Tech Hub
Bloomberg, 27 March, 2022
Zambia may be better known for mining copper than crypto, but a group of young entrepreneurs are looking to reinvent the country as an African technology hub -- with support from Ethereum co-creator Vitalik Buterin.
Startup founders from the southern African country and abroad are talking to the government about creating the regulatory and business environment that would attract more tech firms and capital. The group is in the process of organizing a conference in Lusaka, the capital, in May to draft detailed policy proposals that they believe will see Zambia succeed where previous African tech hubs have stuttered.
“Ultimately it comes down to being welcoming,” said Mwiya Musokotwane, an early champion of the project and the son of Finance Minister Situmbeko Musokotwane. “If the policy doesn’t really live up to people’s expectations, noone’s going to be there.”
Buterin, who helped create the world’s second largest cryptocurrency in 2013, expressed his support in a virtual meeting with Zambian President Hakainde Hichilema earlier this year. That followed a 2019 visit to the country as a guest of Mwiya, who wanted him to view a new charter city outside Lusaka that is also positioning itself to attract businesses.
“I was impressed by everyone I met’s willingness to go and do big things,” the crypto pioneer said in an interview.
The talks are a further sign of Africa’s recent and burgeoning role as a hotbed for startups, particularly in the fintech and e-commerce sectors. Businesses providing financial services to the continent’s millions of unbanked yet online people are attracting the attention of foreign investors particularly from the U.S., and African firms raised a record $5 billion in 2021.
Read More: U.S. Investors Revisit Africa, Helping Startups Cap Record Year
Companies including Nigerian payments firm Flutterwave Inc., whose latest $250 million fund-raising round valued it at more than $3 billion, are also interested in growing a presence in Zambia, Mwiya Musokotwane said.
Employment Drive
For Hichilema, attracting tech firms could be a means of delivering on one of his key election pledges -- boosting employment. More than one in four Zambians under the age of 24 have no income, according to data from the International Labour Organization, and the ratio has been worsening since 2013. The President’s commitment to resolving the issue played a major role in his August election victory after five previous failed attempts.
He has since created the Ministry of Technology and Science as part of a drive to support the sector and help ease dependence on copper, which accounts for 75% of export earnings. The government is eager to consult with entrepreneurs on attractive policies for the tech industry, including tax incentives, according to Jito Kayumba, Hichilema’s special assistant for economic and development affairs and a former director at Kukula Capital, which invests in young Zambian companies.
“We want to have a much more open-minded approach,” Kayumba said in an interview from Lusaka. “You can’t milk a cow that isn’t fully developed.”
Early Mover
Perseus Mlambo, originally from neighboring Zimbabwe, was one of the early movers. He started payments platform Zazu Africa Ltd. in Zambia five years ago, a firm that now accounts for half of Mastercard Inc. transactions in the country.
He went on to raise $3 million last year from investors led by U.S. fund Tiger Global LP for a new venture called Union54, a firm that allows companies to issue their own debit cards without going through a bank. Tiger, the investor firm of billionaire Chase Coleman, has also backed Flutterwave and been involved in talks on the Zambia hub.
“Copper is old and boring,” Mlambo said in an interview from Belluno, north of Venice, Italy. Governments “risk missing the proverbial boat by over-investing in extractives and under-investing in software. Tech uplifts multitudes of people and the barrier to entry is very, very low.”
But ultimately the success of the project will come down to legislation.
Zambia must improve the ease and cost of getting work permits, according to Malawi-born Wiza Jalakasi, vice-president of global developer relations at Chipper Cash, another Africa-focused fintech startup. And Mlambo said he’s been waiting for a residence permit to be approved since September.
Still, the nation that’s changed the ruling party three times in thirty years already has progressive financial services regulation, making it attractive, Jalakasi said.
“It’s not the biggest market in the region, but you can test things very easily,” he said. “That’s only going to get better with time as these policies are implemented.”
Image via Chet Strange/Bloomberg
First Quantum Looks to Long Term Renewable Wind and Solar Power for Zambia Mines in Project with TotalEren & Chariot Transitional Power
International Mining, March 23, 2022
First Quantum Minerals (FQM) is pioneering an ambitious solar and wind energy project that it hopes will provide stable power for its Zambia operations on a long-term sustainable basis. While the ambitious project is still in its early stages, the mining giant is confident the proposed development will be one of the most significant renewable energy projects in Africa. The 430 MW project is expected to consist of a 230 MWp solar photovoltaic (PV) plant and a 200 MW wind farm to supply power to FQM’s operations Kansanshi mine in Solwezi and Sentinel mine in Kalumbila. Construction is expected to start next year.
The circa $500 million project will be developed, financed, built and operated by Total Eren, a leading France-based renewable energy Independent Power Producer (IPP), and Chariot Transitional Power, the African focused transitional energy group. It will be funded leveraging non-recourse project finance debt.
FQM’s Kansanshi Mine General Manager Anthony Mukutuma said: “The project will offer significant benefits to Zambia, by unlocking some of its world-class renewable potential. It will help the country realise some of its untapped solar and wind resources by attracting large-scale foreign investment and adding significant renewable energy capacity. In line with Zambia’s Vision 2030, the project will further contribute to improving Zambia’s energy-mix, reducing expensive regional power imports and exposure to fuel prices.”
While the company’s operations are already powered by approximately 80% renewable energy through a longstanding and ongoing relationship with state electricity supplier ZESCO – and which is expected to remain an important partner for the future – First Quantum also delivers significant greenhouse gas emissions savings – around 100,000 t CO2e in 2020 – through the successful implementation of mining technology that leverages this renewable power.
The new project would complement and expand Zambia’s existing renewable energy capacity to provide First Quantum with competitive and sustainable power for its Zambian mining operations, while delivering on the company’s commitment to decarbonisation. However, increasing pressure on Zambia’s existing hydroelectric resources together with increased risk of supply disruption as a result of drought has highlighted the need to diversify Zambia’s power supply while maintaining the current low emissions.
Major projects such as this underline First Quantum’s responsible mining credentials and are a critical part of its plan to reduce its carbon footprint by 30% by 2025, added Mukutuma.
Total Eren’s EVP and Global Head of Business Development Fabienne Demol said: “Together with our partner Chariot, we are pleased to bring our global expertise in solar and wind generation to power FQM’s operations. The combined solar and wind capacity will offer strong complementarity and power generation around the clock, with solar produced during the day and wind mainly at night. The project also represents a natural fit with Zambia’s hydropower resource seasonality; the project’s energy mix reaches its production peak during the dry season when the country is most exposed to droughts. Increasing the share of renewables will improve the country’s carbon footprint and address current and future challenges related to climate change.”
Total Eren is affiliated to TotalEnergies, the major energy company. In Zambia, TotalEnergies has more than 71 years of operations. The company’s ambition is to provide affordable, reliable, and cleaner energy in order to meet the ever-growing Zambian demand.
Chariot Transitional Power Executive Director Laurent Coche said: “We are very excited to be partnering with FQM and Total Eren on this ground-breaking 430 MW project in Zambia. This project further demonstrates Chariot’s commitment to assisting mining companies in Africa transition to renewable energy sources for their operations, with Zambia having an abundance of wind and solar potential. We are delighted to get started on the project, ahead of construction commencing in 2023, and we look forward to providing further updates in due course.”
President of Zambia and President of Botswana to Attend Mining Indaba 2022
Global Mining Review, March 2, 2022
Investing in African Mining Indaba has announced that the President of the Republic of Zambia and the President of the Botswana, Dr Mokgweetsi Eric Keabetswe Masisi, have confirmed their attendance at Investing in African Mining Indaba, taking place in Cape Town from 9 – 12 May 2022.
Newly elected President Hichilema, who was inaugurated in August 2021, has been hailed as an inspiration after he reversed his fortunes – having been imprisoned for 127 days after the 2016 elections he went on to secure a landslide victory in the 2021 polls.
Now the seventh president of Zambia, President Hichilema has pledged to foster a better democracy through respect for the rule of law, restoring order and protecting human rights. He also hopes to restore confidence in the country as a mining investment destination.
Zambia’s mining investment climate deteriorated in recent years as the previous administration pursued resource nationalism, leading to damaged relationships with investors and lower levels of investment. According to the the Zambia Extractive Industries Transparency Initiative, mining accounted for 79.5% of Zambia's total exports and nearly 31.4% of government revenues in 2020.
President Hichilema is expected to share his vision of a new dawn for Zambia, in which macroeconomic stability is restored and sustainable, inclusive economic growth is promoted. Believing that the mining sector can be an important catalyst for national development, his government is looking to significantly increase the production of copper and other minerals so that Zambia can reclaim its place as a leading miner on the continent. To support these ambitions President Hichilema has already introduced a friendlier mining tax regime and made clear his intention to bring stability to the sector, as well as ensuring regulatory fairness and the elimination of obstacles that stand in the way of new investment.
The President believes that stronger relationships – between the government, miners and local communities – will improve equitable growth and help the country to deliver for its citizens.
Mining remains Botswana’s biggest revenue earner, accounting for approximately 85% of national foreign exchange earnings, one-third of government revenue, and one-fifth of GDP. In recent years the government has actively sought to diversify its economy from its reliance on mining, particularly diamonds.
While Botswana continues to be one of the world’s largest diamond producers by volume, President Masisi has been actively advocating for expansion and development of the country’s diamond, coal, copper, silver and gold resources. He is also encouraging greater investment in a knowledge-based economy and the adoption of innovation in mining.
Building on the Mining Indaba 2022’s theme – Evolution of African Mining – the President is expected to share his insights on Botswana’s progress and his ambition to develop a vibrant and diversified mineral sector that contributes to the sustainable development of the Botswana economy in an inclusive manner that allows for the participation of local indigenous business. The government of Botswana wants to ensure that investments in its economy offer mutually beneficial upside to both the investor and local partners.
Facilitating greater local participation in the economy led to the launch of the government’s Middle Income Strategy in December 2021. The objective the strategy is to facilitate the middle class to effectively participate in the economy through the creation of globally competitive sustainable businesses and by boosting employment opportunities.
After the virtual event in 2021, the May 2022 Mining Indaba is back in person and is looking at the future, at moving forward. The programme content for 2022 is geared towards exploring the key drivers of investment decisions within the African mining market and forging the future direction of the African mining industry. A significant platform for over 27 years, the Indaba will this year expand its industry-leading content to include a Green Metals Day, a Host Buyer Programme and an Infrastructure & Supply Chain content stream. The investment battlefield has also been reimagined as the Innovation & Research Battlefield to encourage collaboration between the mining industry and academia.
The overarching theme: ‘Evolution of African Mining: Investing in the Energy Transition, ESG and the Economies’ is set to inspire new approaches, spark conversations and encourage partnerships that will truly transform mining on the continent.
Image: Sebastian Pichler via Unslpash
United Fertilizers Company Showcase Fertilization Practices and Benefits in Chisamba
Zambia Invests, February 20, 2022
On 20th April 2021, United Fertilizers Company Limited (UFCL) successfully conducted a field day for local farmers in Chisamba in the Central Province of Zambia.
Farmers were able to observe differences in crop performance among various fertilization practices. Particularly, the effect of additional potassium application in form of potassium chloride was demonstrated on maize and tomatoes.
Shortly prior the field part, attendees listened to a presentation about a balanced crop fertilization approach. Mr. Simunji Simunji, Chief Agronomist, commented: “We were happy to host this event and to share a piece of science with farmers as well as students. Participants have got first a general idea, theoretical background, and thereafter were able to see and understand, what processes are taking place in the field”. His colleague, Mr. Maksim Poltoradnev, added up on that, saying, that “establishing demonstration plots is very important for farmers as they work on the ground and used to trust only what they can see and touch with their own hands”.
Image Markus Winkler Via Unsplash
“The Beginning of a New Era for Travel from Lusaka!”
Airport Suppliers, February 10, 2022
National Aviation Services (NAS) and NAC2000 Corporation launched their Pearl Lounge at Kenneth Kaunda International Airport (KKIA) in Lusaka, Zambia on Tuesday. The lounge located at the new terminal is part of Zambia Airports Corporation Limited’s (ZACL) efforts to upgrade international airports in the country. Last June, ZACL awarded a five-year tender to NAS and NAC2000 to build and operate an exclusive departure lounge catering to passengers travelling out from Lusaka. The 588 square meter Pearl Lounge includes comfortable seating, food and beverages, free Wi-Fi access as well as a children’s play area among other facilities.
A number of dignitaries including Mr. Frederick Mwalusaka, Zambian Permanent Secretary of the Ministry of Transport and Logistics, Mr. Gabriel Lesa, Director General of Zambia Civil Aviation Authority and Ms. Maggie Banda, Acting MD of ZACL attended the launch event. In his speech at the opening, Mr. Mwalusaka said, “I would like to applaud this joint venture between NAS and NAC2000. This is a good example of local and foreign partnerships that create more quality products and services and employment opportunities in Zambia. It is the hope that such ventures within our new airport are the beginning of a new era for travel from Lusaka.”
All international flights out of Lusaka will fly from the new terminal at KKIA, which opened in August 2021. This includes leading international airlines including Air France – KLM in partnership with Kenya Airways, Airlink, Air Tanzania, Emirates, Ethiopian Airlines, Proflight Zambia, Qatar, Rwanda Air and South African Airlines. Zambia Airways, the recently relaunched national carrier is operating from this airport and other airlines are also expected to open routes into Zambia.
Guy Michel Yazbek, Group Director, Lounges & Meet and Assist Services at NAS highlighted “We are excited to be working with the ZACL and the Ministry of Transport and Logistics in Zambia. The launch of our new Pearl Lounge is significant. Not only because it is located at the largest airport in Zambia but also because we won this tender in the middle of a global pandemic when the aviation industry was on a downturn. The KKIA airport serves as a hub for domestic and international flights and the new lounge is the perfect space for passengers to relax and unwind or catch up on last minute work before they fly. We would like to take this opportunity to thank ZACL for the confidence and trust invested in the NAS and NAC2000 partnership. We also would like to emphasize on NAS’ commitment to Zambia and our willingness to expand our participation in the Zambian aviation industry.”
National Aviation Services (NAS), a leading airport services provider in emerging markets partners with NAC2000 Corporation, a key ground services company in Zambia to operate this Pearl Lounge. The new Pearl Lounge is one of over 50 lounges operated by NAS across its network in Africa, Europe, the Middle East and South Asia. NAS’s extended portfolio of services includes comprehensive ground handling, cargo management, technology solutions and training among others, currently serving over 100 airline customers across more than 60 airports.
Jonathan Lewis, Managing Director of NAC2000 Corporation added, “We as NAC2000 are honored to share participation in this joint venture with NAS and to work with ZACL to deliver world class lounge service and hospitality through the Pearl Lounge at the new terminal facility at Kenneth Kaunda International Airport.”
NAC2000 Corporation, a Zambian company serves all the international airports supporting airlines as well as ad hoc operators for the last 20 years. It is the only ISAGO registered and certified ground services provider in Zambia and offers warehousing, and cold storage while continuing to evolve and become an industry leader in the service of support logistics relating to the movement of cargo and passengers.
Kazungula Bridge: Elevating Africa to World-Class Status
Zinhle, who has been travelling to Zambia by road for the last eight years, recalls her experience of crossing the Zambezi River from Botswana to the Zambian border on a pontoon as ‘agonising’. But, like many other travellers, the opening of the new state-of-the-art Kazungula Bridge in May 2021, has given Zinhle high hopes and a sense of pride for African countries.
Life before Kazungula Bridge
Eight years ago when I first travelled to Zambia by road, I used a pontoon to cross the Zambezi River, from Botswana to the Zambian border.
The pontoon was nothing more than a slab of steel used to ferry people and vehicles across the river. It felt like an adventure, but once was enough. I have travelled on that route several times since then and sharing the old rusty slab with trucks made the experience agonising.
In 2019, I witnessed the construction of the Kazungula Bridge; a partnership between Botswana and Zambia.
Two years later, with bated breath, I embarked on the trip again. I had heard that the bridge had started operating and that it had officially opened about six months earlier (May 2021). The yearning made the 16-hour drive from Johannesburg, South Africa to the Zambia-Botswana border seem longer than usual.
The state-of-the-art engineering of the bridge exceeded even my wildest expectations. It is a feast for the eyes.
Elevating Africa to World-Class Status
I beamed with pride at the testament of what African countries could achieve if they worked together. I imagined how similar feats across the continent could elevate Africa to world-class status.
The partnership between Botswana and Zambia also includes one immigration stop in a shared building.
With Zimbabwe rumoured to be coming on board, the bridge joining the three countries and the quick and efficient immigration protocols from a central location promise a melting pot of tourism extravaganza.
On the Botswana side, about 10 kilometres from the bridge, there is Kasane; a town rich with wildlife. Across the Zambezi River about 70 kilometres from the border, the tourist town of Livingstone in Zambia, boasts arguably Africa’s most prestigious attraction, the Mosi-oa-Tunya (the smoke that thunders), popularly known as the Victoria Falls. The Victoria Falls stretches across to Victoria Falls Town in neighbouring Zimbabwe; less than 20 kilometres from Livingstone.
I cannot even begin to fathom the endless possibilities brought about by the bridge: the transformation of the sleepy Kazungula town into a vibrant getaway, the economic boom, job creation opportunities, quick and efficient delivery of goods between countries and a window to the rest of Africa.
You could have breakfast on a boat cruise in Zambia, a tour of the Victoria Falls in Zimbabwe and an afternoon game drive in Botswana, all in one day.
Before the bridge, a pontoon ferried people and vehicles across the Zambezi River. Image by Maxime Mugabe
A recent picture of the Victoria Falls in Zambia, by Maxime Mugabe
Working Together
When countries work together, the possibilities are endless. The construction of the Kazungula Bridge is a testament to that. Botswana, Zambia and Zimbabwe are well-positioned to become Africa’s tourism hub.
I remain optimistic that Namibia, the missing puzzle of the quadripoint will come to the party.
Words by Zinhle Mugabe
“We Are #ReadyForTakeOff”, Zambia Airways
Today, (1 December 2021) Zambia Airways will return to the skies with its first flight to Simon Mwansa Kapwepwe Airport in Ndola and a second flight to Harry Mwanga Nkumbula International Airport in Livingstone.
The commencement of the airline’s operations comes as great news to the tourism industry, while Zambia Airlines welcomes the public to join as they take to the skies on their inaugural flight!
Tickets can be booked via zambia-airways.com