‘Momentous’ Day for Zambia as US-Africa Summit Draws to a Close
As the US-Africa Leader’s Summit draws to a close, President Hichilema has praised “a momentous day for the people of Zambia” as the U.S. company KoBold Metals announced a $150 million dollar (K2,654,442,000) investment to explore and develop Zambia’s Mingomba Copper Mine.
This exciting partnership is set to create jobs for Zambian citizens whilst reinvigorating an underutilised national asset. The deal constitutes part of a highly successful trip that included numerous partnerships, public talks, and a meeting with the President of the United States, Joe Biden.
The trip represents an important step in strengthening Zambia’s economic outlook and amplifying its international reputation as promised during the 2021 election campaign. President Hichilema has utilised the newly agreed IMF Extended Credit Facility to drive foreign investment, foster macroeconomic growth, and more than half the rate of inflation since coming to power.
Zambia’s newest investor, KoBold Metals, is seeking to generate a return on their investment by developing the underutilised copper deposit at Lubambe Copper Mine. Under the terms of the agreement, KoBold will pay EMR Capital, the 80% shareholder of the Lubambe Mine, $115 million to develop the existing mine whilst acquiring a majority stake in the Mingomba copper deposit. Backed by Bill Gates’s Breakthrough Energy Ventures, KoBold seek to use artificial intelligence to responsibly mine for the rare earth metals that are central to the construction of electric vehicles and smartphone technology.
Hichilema speaks at the U.S. Africa Business Forum following the announcement of KoBold Metal’s historic investment. Image via Twitter (@usembassyzambia)
Mingomba represents KoBold’s largest investment yet, estimated to contain over 9 million metric tons of copper. However, as yet it has not been determined where the mineral resources end on this site. It is hoped new technology will help answer this question. As global concerns grow over the scarcity of rare earth metals, the firm seeks to use AI to guide where to procure land, what data to collect, and where to drill in order to find the precious commodities hidden further under the earth’s surface.
“Converted to copper contained in electric vehicles, it’s like 100 million electric vehicles [contained within the mine],” according to KoBold’s President, Josh Goldman.
Speaking in Washington on Wednesday, President Hichilema emphasised that to meet the country’s growth ambitions “new ideas, and new technology” must be utilised. President Hichilema has repeatedly stated his ambition to more than triple Zambia’s annual copper production to 3 million metric tons. Utilising AI to get the most out of dormant or under-utilised sites such as this can unlock one of the highest-grade copper resources in the world. Initial discoveries were first made at the two sites in the 1920s but as mapping technology improves, its true potential is increasingly unveiled.
Michael Gonzales, U.S. ambassador to Zambia, told the press that the deal “sends a powerful signal that the U.S. and its allies can and will compete successfully for the minerals and resources that will power the global clean energy transition.”
The deposits are located in the rich Central African Copperbelt, the same area in which the Kansanshi copper mine is located. Earlier in the year, First Quantum Minerals Ltd. approved a $1.25 billion project to extend mining operations at Kansashi. Zambia and the Democratic Republic of the Congo recently signed a Memorandum of Understanding in which the U.S. will support the two countries in further developing an electric vehicle value chain. Such extensions will prove vital in the realisation of the goals set out in the memorandum.
Zambia and the DRC sign an MoU on electric vehicle value chains at this week’s summit. Image via Twitter (@HonKakubo1)
Speaking recently at the 5th Annual Corporates and Diplomats Gala in Lusaka, the U.S. ambassador praised the “excellent strategies and policies” being implemented by the government. “If the government is going to continue implementing these strategies, the country will go far in terms of development.”
The Government of Zambia has made particular efforts to induce foreign direct investment through its recently launched Zambia is Back campaign. The campaign seeks to help companies and financiers work alongside the government and to connect them with local private sector partners to foster growth. Tax concessions have also been introduced for 2023 in the manufacturing, tourism, and green energy sectors with a view to maintaining 4% year-on-year growth and achieving middle-income status by 2030.
Owing to its young, growing populations and the rich deposits of rare earth minerals that are set to prove so vital to the future of electric cars and smartphone technology. In this context, President Biden is courting African leaders for their friendship and support. Sites contained within the Central African Copperbelt have world-leading deposits of cobalt and lithium which are vital in the Sino-American competition to lead innovations in next-generation computing and decarbonisation.
The Biden administration is now openly supporting proposals to include the African Union (AU) in the G20. This is a clear move to recognise the importance of the continent and suit its leaders. Such a move would make the AU the second regional body recognised by the forum for economic cooperation after the European Union. The group already accounts for 85% of global GDP, and 65% of the world’s population. The inclusion of African nations would further bolster the global standing of the group whilst increasing the ability of African nations to determine the global political and economic agenda.
President Hichilema meets Joe Biden, President of the United States of America, and First Lady Jill Biden. Image via Twitter (@HHichilema)
President Biden has also raised the prospect of expanding the UN Security Council to include permanent representation for Africa. The move may be unpopular in some circles as ultimately expansion is dilution within the Council, but Biden is seeking an era of more equitable partnerships between African nations and foreign powers. Just last week, Judd Devermont, senior director for African Affairs at the National Security Council commented that “it’s past time Africa has permanent seats at the table in international organisations and initiatives… we need more African voices in international conversations that concern the global economy, democracy and governance, climate change, health and security.”
In a further deal sealed at the summit, Zambia will be partnering with USAID through the Prosper Africa Initiative to address the global food security crisis. Highlighting the impact of the war in Ukraine in exacerbating global shortages, USAID has pledged to match private sector investment 1:1 to magnify the impact food security initiatives can have on the continent. The partnership between Africa Global Schaffer, Bechtel, and the Export Trading Group will begin in Zambia by building green, Smart Integrated District Aggregation Centers to improve the production and efficiency of maize – a crop that commonly experiences high post-harvest losses. The partners will utilise equipment to protect post-harvest crops whilst the centers will be designed to connect sellers with buyers at key points along vital East African trade routes. One-third of these centers will be run by female smallholder farmers. Eliminating post-harvest maize loss has the potential to provide over 1.5 million Zambians with their necessary daily calorie requirements and improve nutritional outcomes.
Hichilema meets Senator Menendez the chairman of the Senate Foreign Relations Committee. Image via Twitter (@SFRCdems)
President Hichilema has been striving to increase Zambia’s global voice during his visit to Washington. Beyond the US-Africa leaders’ summit, he has attended the Civil Society Forum, and was hosted by the Senate Foreign Relations Committee. The committee, via Twitter noted how they “deeply appreciated the opportunity to speak about our shared commitment to strengthen Zambia’s democratic institutions and to pursue future economic prosperity and broader regional security.”
The summit has been received warmly on both sides of the Atlantic. An impressive $15 billion dollars of two-way trade and investment deals were concluded over the course of the summit. In his closing remarks Biden emphasised he has “known for a long time that Africa’s success and prosperity is essential to ensuring a better future for all of us, not just for Africa.”
What to expect as US-Africa summit kicks off in Washington
Al Jazeera, December 13, 2022
US President Joe Biden seeks to boost trade opportunities and build trust with African leaders during three days of talks.
The United States aims to boost cooperation with African nations as President Joe Biden hosts dozens of regional leaders at the second US-Africa Leaders Summit this week in Washington, DC.
Beginning on Tuesday, the three-day summit will focus on key challenges, including the climate crisis, good governance, food security and global health, as well as bolstering US-Africa trade and investment opportunities.
“The summit … is rooted in the recognition that Africa is a key geopolitical player. The continent will shape the future not just of the African people, but also the world,” US National Security Adviser Jake Sullivan told reporters on Monday afternoon.
Forty-nine African heads of state and leaders, as well as the African Union, were invited to the summit, Sullivan said during a news conference.
The talks – a follow-up to the first such gathering hosted by former US President Barack Obama eight years ago – mark the biggest international gathering in Washington, DC, since before the start of the COVID-19 pandemic.
Biden has sought to rebuild Washington’s relationship with other countries, as well as to re-engage with global organisations like the United Nations, after four years of his predecessor Donald Trump’s “America First” approach to foreign policy.
The US role in Africa receded during that time, and Biden administration officials have stressed the need to strengthen ties with like-minded countries in the region.
“Working closely with Congress, the US will commit $55bn to Africa over the course of the next three years,” Sullivan said on Monday.
China, Russia competition
The summit comes as China, which the US views as its main global competitor, has consistently outpaced Washington in its investments in Africa. Russia is also trying to rally support on the continent in response to pressure from the US and its allies over the war in Ukraine.
However, in the lead-up to this week’s meetings, top Biden administration officials played down their growing concerns about China and Russia. Instead, they have stressed the importance of including African nations in global discussions.
“We need more African voices in international conversations that concern the global economy, democracy and governance, climate change, health, and security,” White House Adviser Judd Devermont said on December 9.
In August, the Biden administration released a new strategy document for sub-Saharan Africa, stressing the region’s importance and promising to extend defence cooperation with like-minded nations.
In November, US Secretary of State Antony Blinken also said Washington would have to do things differently to help Africa with its infrastructure needs. It was time to stop treating the continent as a subject of geopolitics, but rather as a major player on its own, Blinken remarked.
The region needs billions of dollars a year for roads, railways, dams and power, and in the last decade, it has received huge sums from China, which generally does not tie money to political or rights-related conditions.
Washington has characterised Chinese lending as predatory and leading to potential debt traps. It has instead focused on facilitating private investment, but officials acknowledge that the US needs to do more to speed up assistance.
As part of this week’s summit, Biden will deliver a keynote address to the US-Africa Business Forum on Wednesday, before hosting a dinner for the world leaders assembled in the United States capital.
The US president is expected to back a permanent spot for the African Union in the Group of 20, a forum for major economies, during the summit. Sullivan said Biden also would express a commitment to UN Security Council reform, “including support for a permanent member” from Africa.
“It’s past time for Africa to have permanent seats at the table in international organisations and initiatives,” Sullivan told reporters.
On Thursday, Biden and the other heads of state and leaders will hold talks on promoting food security, after months of supply concerns and disruptions linked to the war in Ukraine. He will also discuss the 2023 elections in Africa and democracy with a small group of leaders, Sullivan said.
“One of the unique aspects of this summit is the collateral damage that the Russian war has inflicted on Africa in terms of food supply and the diversion of development assistance to Ukraine,” John Stremlau, a visiting professor of international relations at the University of the Witwatersrand in Johannesburg, told The Associated Press news agency.
“The opportunity costs of the invasion have been very high in Africa,” Stremlau said.
‘Great opportunities, some risks’
Meanwhile, local officials in Washington, DC, are warning residents to brace for roadblocks and intensified security as the dozens of invited leaders move around the city for the talks.
The US has invited all African Union members in good standing, meaning Burkina Faso, Guinea, Mali and Sudan will not be represented. Attendees must also have full relations with Washington, which excludes Eritrea.
One of the most closely watched leaders expected in Washington will be Ethiopian Prime Minister Abiy Ahmed, a one-time US ally whom the Biden administration has accused of backing widespread abuses in the Tigray conflict. A breakthrough deal last month led to a cessation of hostilities.
The presidents of Rwanda and the Democratic Republic of the Congo (DRC) will also be in attendance, as Blinken exerts international pressure on Rwanda over its alleged support for rebels seizing control of territory in the neighbouring DRC.
Other presidents due at the summit include Egypt’s Abdel Fattah el-Sisi and Tunisia’s Kais Saied, who have both faced criticism for a lack of democratic rights in their countries, as well as Equatorial Guinea’s Teodoro Obiang Nguema Mbasogo, who arrives days after the US called his latest election a sham.
The foreign minister of Zimbabwe, under US sanctions, is also expected to attend.
Analysts say that African leaders will be looking for Biden to make some major commitments during the talks, including announcing his first presidential visit to sub-Saharan Africa, as well as efforts to bolster the continent’s economy through private sector investment and trade.
Mvemba Phezo Dizolele, director of the Africa programme at the Center for Strategic and International Studies, said the US was entering the summit with a “trust deficit” due to the long wait since the last edition in 2014.
“The summit presents great opportunities, but it also poses some risks,” he said.
“This is an opportunity to show Africa that the US really wants to listen to them,” he added. “But now that we have high expectations, the question will be: What will be different now?”
Hichilema Flies to Washington to Attend US-Africa Leader’s Summit
President Hichilema has flown to Washington D.C., in order to attend the US-Africa Leader’s Summit set to begin tomorrow. The three-day event will see leaders across the continent meet with President Biden and his advisors in order to discuss bilateral relations.
On his departure yesterday the President tweeted his excitement to be participating in the summit.
A statement from the Ministry of Foreign Affairs and International Cooperation explained that “President Hichilema and other Heads of State and Government are expected to deliberate on opportunities for public-private partnerships; bolstering the US-Africa economic relationship; access to capital; food insecurity, and promoting sustainable economic growth and development.”
Zambia already has a strong relationship with the United States. The U.S. Ambassador to Zambia recently praised the “excellent strategies and policies” being implemented by President Hichilema. Further, the U.S. Government run development agency, USAID, recently launched two business and trade development projects, with a combined budget of $54 million USD in order to further improve the business environment and promote opportunities for women and youth.
The Hichilema administration, however, still wishes to use the summit as an opportunity to further develop US-Zambia relations. To that end the president will be appearing at the US-Africa Business Forum, the Civil Society Forum, the Conservation, Climate Adaptation and Just Energy Transition Forum, and the Council on Foreign Relations.
The president has repeatedly emphasised that the first year of his administration was for stabilising the economic chaos left behind by former President Lungu, and that the second year of his administration is set on unlocking the potential of the Zambian economy.
There is much anticipation surrounding the meeting, with commentators speculating that this year’s summit may redefine the USA’s relationship with the African continent. Over 50 heads of state are expected to be present at the summit and it is hoped relations will improve after former president Trump spurned African leaders by failing to host a second summit following Obama’s 2014 effort.
Since June 2019, the US government has helped close more than 800 two-way trade and investment deals across 45 African countries, worth an estimated $50 billion in exports and investments. With many African nations seeking investment as a result of post-pandemic global economic stagnation, and the Biden administration’s increasing use of the language of “collaboration” above the historic power imbalances that have defined rhetoric and reality, there is hope the U.S. will start seeing Africa as an ally and partner.
In July, President Biden said the agenda of this year’s summit will be to “build on our shared values to better foster new economic engagement; reinforce the US-Africa commitment to democracy and human rights; mitigate the impact of covid-19 and of future pandemics; work collaboratively to strengthen regional and global health; promote food security; advance peace and security; respond to the climate crisis; and amplify diaspora ties.” This is a long list but officials are optimistic this year’s summit could bring positive change.
AfriLabs: The Annual Gathering Bringing Innovation to Zambia
As the Government of Zambia strives to transform Zambia’s digital and technological space, AfriLabs seeks to connect remarkable businesses in Zambia to an extraordinary network of supportive innovators across the continent.
AfriLabs is a networking organisation that have been supporting innovation on the continent since 2011. AfriLabs’ 2022 Annual Gathering was held this year in Zambia’s capital, Lusaka from in October. This year they celebrated “Intra-African Connectivity, Collaboration and Innovation” during an event billed as the largest convention of African innovation leaders on the continent.
400 visitors from 52 foreign nations, in addition to 3000 virtual participants, came together to celebrate technological innovation in Zambia and Africa.
One AfriLabs member in particular is targeting digital transformation in Zambia. Ehub Zambia act as a technological centre who aim to improve digital competence for people from marginalised communities. Specifically, they aim to teach coding for those in peri-urban and rural communities up to a job entry level ability.
Ehub Zambia believe this technology competence is important not just for the youth’s future, but for the country as a whole. Improving digital skills facilitates the increased integration of Zambia into global financial markets, while increased access to the internet allows SMEs to operate take advantage of international export opportunities. By upskilling these peri-urban and rural communities Ehub Zambia hope to diversify the job opportunities available to those in often marginalised communities.
The new Ministry of Technology and Science is dedicated to transforming the digital economy. They work closely with private sector partners to improve access to and utilisation of digital technologies.
For example, at the end of November the ministry celebrated the establishment of the first 5G network in the country. Felix Mutati, the minister for technology and science, emphasised this as a crucial step in the country’s digital transformation agenda.
Speaking at the network’s launch, the Minister also told the press that the Hichilema administration is also working on a new start-up bill to improve access to funding for new enterprises. This will be welcome news for Madica – another impressive attendee of this year’s Lusaka AfriLabs gathering.
Madica, short for “Made in Africa”, is a young pre-seed investment programme aiming to support under-funded African entrepreneurs through both direct financial investment and, in partnership with companies such as Ehub Zambia and the government of Zambia, is hoping to upskill and increase the network of poorly connected African entrepreneurs
Over the next three years Madica seek to support 25 to 30 African entrepreneurs with up to $200,000 in funding and significant programmatic support. They aim to support bright ideas with little infrastructural support. This is why $6 million dollars of their funding is being held back for programmatic support. Through hands-on support from their team of mentors, plus connections to continent-wide networks through AfriLabs, their goal is to see African start-ups flourish.
Emmanuel Adeboye, head of Madica, explains that although he believes “Africans have an unmatched entrepreneurial spirit”, they’re disadvantaged in the start-up space. African CEOs raise on average 28% less funding than their foreign educated counterparts, whilst funding in Africa is disproportionately swayed towards male CEOs.
“We hope that Madica can help change the narrative around African start-ups – lower the perception of risk, attract more capital, inspire more founders, and garner more media attention”, commented one Madica executive.
Since 2021, Zambia has received an extraordinary amount of investment in order to stimulate its economy. For example, in Q3 of this year, Zambia received $1.1 billion in future investment pledges expected to create over 8,000 jobs. However, much of this funding has come from abroad.
Madica wish to foster the “innate ability of Africa to build Africa” through supportive pan-African networks and investment programmes. Speaking ahead of the conference, Mutatu expressed his excitement at the opportunity “for Zambia to show more of its potential as a leader in entrepreneurship and innovation in the Southern African region.” He spoke in agreement with the directors of AfriLabs and Madica in saying that “if we are to make progress as an African continent, the doors must be open to each other.”
With the government of Zambia seeking to foster partnerships with the private sector in order to accelerate the nation’s digital transformation, and organisations such as AfriLabs actively enhancing connectivity and engendering rapid sector growth, now is a decisive and opportune time to invest in the nation’s potential.
First Quantum to pay ZCCM-IH in revenue royalty following Zambia tax change
FIRST Quantum Minerals has agreed to convert dividends from its Zambian copper mine Kansanshi to a revenue royalty, the Canadian firm said today.
The agreement follows fiscal changes implemented by Zambian president Hakainde Hichilema shortly after his election in 2021 in which royalties were made tax deductible.
In terms of the agreement, Zambia’s government-controlled ZCCM-IH will receive 3.1% in a revenue royalty from the mine which is forecast to produce between 140,000 and 150,000 tons for the financial year ended December 31.
First Quantum said ZCCM-IH would continue to be represented on the Kansanshi Mining board to “ensure full visibility and transparency in respect to KMP’s future operations”.
“We are pleased to enter into this new arrangement for the benefits flowing from the Kansanshi mine,” said Tristan Pascall, CEO of First Quantum in a statement today.
The royalty-for-dividends agreement comes ahead of the proposed $1.25bn expansion of Solwezi section, known as the S3 project, at Kansanshi. This was announced in May when a total of $1.35bn in projects for Zambia were unveiled including the final $100m installment on its $250m Enterprise nickel project in Kalumbila.
“We look forward to continuing the collaborative relationship with ZCCM-IH as we advance KMP,” said Pascall.
The agreement with the ZCCM-IH is further evidence of a thawing of relations between First Quantum and the Zambian government following Hichilema’s election. Two months after his election he reformed the country’s tax regulations in its national budget.
The S3 project will extend the life of Kansanshi until the 2040s, and increase copper and gold production by around 25%. The project will also add approximately 800 permanent jobs, and a further 1,800 during the construction phase.
“Crucially, it also safeguards the futures of the 8,500 people already employed at Kansanshi,” First Quantum said earlier this year.
The Enterprise mine will produce some 10,000 tons of nickel concentrate a year. According to First Quantum it will make Zambia a “pre-eminent nickel producer” supplying manufacturers of batteries for electric vehicles. The mine is expected to be operational within 12 months’ time and employ about 700 full time staff.
This article originally appeared in Miningmx
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
CONTACT US
If you would like to find out more or receive tailored briefings on specific sectors then get in touch via info@zambiaisback.com. To stay up to date follow us on social media:
Facebook: @zambiaisback
Twitter: @ZambiaIsBack
Instagram: zambia_isback
Celebrating 25 Years of Chinese Banking in Zambia
Last Friday (November 25), the Bank of China celebrated 25 years of banking in Zambia. At a special event held in the country’s capital, Lusaka, the bank’s Managing Director, Wang Qi, the Chinese Ambassador to Zambia, Du Xiaohui, the Bank of Zambia’s Deputy Governor, Francis Chipomo, and the Minister of Finance and National Planning, Situmbeko Musokotwane came together to celebrate the continuing partnership between the two countries.
Mr Qi expressed his pride at the Bank’s long service to the people of Zambia and went on to pledge the Bank’s ardent support to the country’s economic development.
“The fact that a Chinese financial institution has taken root, grown and thrived in Zambia shows that the Chinese government and Chinese financial institutions have been bullish on Zambia’s good business environment and broad development opportunities,” commented the Chinese Ambassador, Du Xiaohui.
The Bank of China estimate they have provided $3 billion in economic development stimulus and contributed $44 million in tax revenue to Zambia.
Partnerships between the two countries continue to grow. More than 60 Zambian companies have established connections with Chinese partners since the arrival of the Bank of Zambia. To foster these ties, more than 40 Zambian companies participated in this year’s China International Import Exposition.
The exposition, which is held yearly in Shanghai, is estimated 150,000 domestic and foreign professional purchasers attend the event. As of 2018, bilateral trade between the two countries topped $5 billion, 80% of which is Zambian exports to China. Much of this trade is focused on the country’s copper production. Despite already being the second largest copper producer in Africa, President Hichilema has committed to growing the industry further, doubling production between 2026 and 2032 to 3 million metric tonnes.
The two countries are also cooperating in the technology sector. Last week, it was announced telecommunications firm MTN, in partnership with Chinese company Huawei, would be launching a 5G network in Zambia. The network is hoped to service 65% of the populations of Lusaka, Kitwe and Ndola in addition to parts of Chingola, Solwezi and Kalumbila. The government is hoping to reach 100% internet connectivity by 2024.
Mr Qi praised the Bank of China as a bridge that facilitates exchanges between the two countries. Zambia was, in fact, the first African nation the Bank of China established itself in and since then the nation has become China’s second largest trade partner on the continent.
Musokotwane, Minister of Finance and National Planning, spoke at the celebration and praised the Bank for its role in support economic development on the continent. He added that the New Dawn administration hopes to do everything in its power to strengthen its relationship with China.
The government is attempting a rapid economic transformation to become a middle income country by 2030, just a decade after former president Lungu’s mismanagement sent the country into default. Noting China’s economic explosion in the late 20th century, Musokotwane commented that he could learn many lessons from China’s rapid development.
Speaking on Wednesday, Musokotwane confirmed the two countries were in “active engagement” over the restructuring of Zambia’s debts to Chinese creditors. Renegotiations are ongoing, but with the Bank of China’s presence and the impressive foreign investment pledges recently reported by the Zambia Development Agency, it is hoped the China-Zambia relationship will grow and Zambia will take a more prominent place on the global economic stage in the years to come.
Thinking of investing in Zambia’s banking sector? Sign up for our investor briefing or get in touch at info@zambiaisback.com
Joint Statement Between Costa Rica, the Netherlands, the Republic of Korea, the Republic of Zambia, and the United States on the Announcement of the Second Summit for Democracy
The White House Press Office, November 30, 2022
Today, we the governments of Costa Rica, the Netherlands, the Republic of Korea, the Republic of Zambia, and the United States are pleased to announce that our leaders will co-host the second Summit for Democracy on March 29-30, 2023.
Building on the first Summit for Democracy held in December 2021, this gathering will demonstrate how democracies deliver for their citizens and are best equipped to address the world’s most pressing challenges.
We are living through an era defined by challenges to accountable and transparent governance. From wars of aggression to changes in climate, societal mistrust and technological transformation, it could not be clearer that all around the world, democracy needs champions at all levels. Together with other invitees to the second Summit, we look forward to taking up this call, and demonstrating how transparent, accountable governance remains the best way to deliver lasting prosperity, peace, and justice.
The second Summit for Democracy will assemble world leaders in a virtual, plenary format, followed by hybrid gatherings in each of our countries with representatives from government, civil society, and the private sector. Together, we will showcase progress made by Summit partners on commitments during the Year of Action, and will reaffirm the vitality of the democratic model and collective action to meet the unprecedented challenges of our time.
We look forward to another successful Summit, and accelerating concrete action toward democratic renewal.
USAID Launch Business and Trade Development Projects in Zambia
The Zambian Minister of Finance and the U.S. Ambassador to Zambia have announced the launch of two economic development projects known as the USAID Business Enabling Project and the USAID Trade Boost.
The $24 million dollar (K233 million) Business Enabling Project is being funded by the U.S. government. According to a statement by USAID, “the project will support the development of an enabling environment that incentivises investments in trade, agriculture, energy, eco-tourism, and sustainable natural resource management.” USAID wish to make small improvements to business owners’ perceptions of the regulatory and investment environment in the country. The programme also hopes to strengthen policy-making alongside the Zambian government through linkages with select civil society organisations in order to promote economically viable and gender-balanced rural enterprises.
This project will work alongside existing government projects to strengthen smallholder farmers. In September, the government confirmed the reform of their agricultural support into the new Comprehensive Agricultural Support Programme. From 2023 the Zambian government is aiming to increase the number of extension support officers, extend the reach of irrigation channels, and facilitate greater access to finance. The Business Enabling Project will support these efforts.
The USAID Trade Boost is set to invest $30 million dollars (K500 million) through the Prosper Africa ‘Africa Trade and Investment Programme’. The aim of the programme is to boost trade and investment through climate-friendly economic approaches. Prosper Africa is a U.S. Government initiative to bring U.S. companies into African markets – the Boost will prioritise co-investment with the private sector to produce inclusive growth. Through the Public-Private Dialogue Forum, the Zambian government hope to encourage structured, participatory, and inclusive public-private sector cooperation in order to stimulate the Zambian economy with the goal of reaching middle-income status by 2030.
U.S. Ambassador Michael Gonzales told attendees at the launch event that by making it easier to do business in Zambia “these projects will help Zambian businesses to produce more, create jobs, and provide a broader variety of healthy food options in markets.”
Zambia is actively seeking cooperative partnerships with international organisations and civil society groups. Indeed, this week a delegation from Zambia met with representatives in Berlin to discuss the future of development cooperation between Zambia and Germany. The German delegation spoke positively about President Hichilema’s attempts to improve accountability and transparency in the country, two vital aspects of a strong investor climate.
It is hoped the U.S.-led projects will boost agricultural production and exports within Zambia in order to both alleviate the food crises in neighbouring countries, brought about by Russia’s invasion of Ukraine, and stimulate Zambia’s economy as President Hichilema and his administration continue to strive to meet the goals of the Eighth National Development Plan. USAID is hoping for the projects, in conjunction with existing programmes, to create an economic environment in Zambia capable of addressing problems and generating growth across agriculture, clean energy, and eco-tourism whilst creating equitable opportunities for women and youth through increased access to capital.
How One NGOs Drive for Conservation is Boosting Zambian Tourism
The NGO Conservation Lower Zambezi (CLZ), in conjunction with the Department of National Parks and Wildlife (DNPW), has led a remarkable rejuvenation of Zambia’s Lower Zambezi National Park. With wildlife rebounding, new riverside boutique campsites have the potential to bring back more tourists and economic growth to the Zambezi.
The Lower Zambezi National Park is one of the country’s most important wildlife sanctuaries, home to extraordinary elephant populations, lions, and much more. The park now appears as a haven of extraordinary African diversity. Yet it was not always so.
From the 1970s through to 2016, the park experienced an epidemic of poaching. According to one local guide, this was a time “when we were being hammered by poachers, animals were rapidly disappearing.”
While the park witnessed a number of tragic losses, it was elephants that were particularly targeted. “When I started flying down here 20 years ago, I’d take off and see 20 poachers’ bushmeat drying racks in a morning, lion prides were moving from one carcass to another,” comments Ian Stevenson of CLZ. “We were being hit hard. In 2015 alone, which was the peak of the crisis, we lost 107 elephants,” he continues.
DNPW and CLZ have led the charge to protect the park and have overseen an impressive transformation. Founded in 1994, they have contributed significantly to stabilising elephant populations and the growth of sustainable tourism. In conjunction with the DNPW, their patrols act as a visible deterrent to potential poachers. In 2021 alone, they supported 14,378 man-days worth of anti-poaching patrols and apprehended 214 suspects.
The government of Zambia has removed visa requirements, and their consequent fees, for travellers coming from the EU, China, and the US. The increase in ease of access to Zambia as a holiday destination is designed to boost the number of foreign visitors, making it all the more important that tourism and sustainability come hand in hand.
NGOs have undertaken fantastic work in Zambia to this end. Ian Stevenson, CLZ’s CEO, was nominated for the Tusk Conservation Award in 2020. Tusk, one of Africa’s largest conservation charities, recognises those doing extraordinary conservation work on the continent. The charity’s patron, Prince William, personally thanked CLZ and Ian Stevenson for this work.
Working in partnership with like-minded stakeholders is a crucial part of CLZ’s success. CLZ is partially dependent on tourism for its activities. Safari companies are reliant on the beauty and biodiversity of the park to sustain their business. They, thus, support CLZ’s conservation work by contributing up to $1,000 a month and often consult with their experts on how to mitigate the impact of their visitors.
Beks Ndlovu, founder and CEO of African Bush Camps, describes the views of the Zambezi as "like being in an oil painting" and is eager to share its natural beauty with the world. From your room at Lolebezi, one of African Bush Camps' newest sites, you can watch buffaloes run down the riverbanks, leopards lick their wounds in the trees, and hyenas gorge on scraps.
Time + Tide, a luxury safari company, has established a tented camp on the confluence of the Chongwe and Zambezi river. With 8 tents located right on the riverfront and a number of experiences on offer, Time + Tide brings tourists close to the action. Their extraordinary offering includes walking safaris, boat trips on the river, and sleepouts under the stars. Dining under the Albida trees, the work of CLZ means guests can see elephants at an extraordinarily close range as they seek to graze on their favoured snack of Albida pods.
Tourism Minister Rodney Sikumba has recently called for more investment in the sector as he perceives untapped potential to spur economic growth. The hospitality, retail, and catering sectors all benefit from increased traffic at tourist sites. The Minister said he was "extending an olive branch to would-be investors" to explore the natural beauty of the country.
Furthermore, the World Bank recently announced they would be investing $100 million to boost tourism in the country. Specifically, the project is set to renovate airstrips and bridges in Liuwa Plain National Park. This will help the delegated infrastructure accommodate a rise in tourists. The project is part of a broader plan to develop and better integrate the western tourism circuit in the country.
Mr. Sikumba wishes to see further investment in communication networks between popular tourist destinations to extend the stay of visitors to Zambia. His sentiment is echoed by the president who, on a recent trip to Tanzania, emphasized how African nations should be doing more to package their tourist offerings not as individuals, but as a packaging opportunity to stay longer, explore the region as a whole, experience the culture and diversity of the landscape while bringing more revenue to help both sustainability initiatives and the wider economy.
With the conservation work of CLZ and many others continuing, it is hoped that the Lower Zambezi National Park can continue to flourish while attracting tourists from around the world.
5G will enhance economic development-Hichilema
Lusaka Times, 25 November 2022
President Hakainde Hichilema says technology has the capacity to transform all the social and economic sectors of life ranging from education to agriculture. Mr Hichilema says Zambia stands to benefit immensely from the commercial launch of the 5G network, which has the capacity to turn around the country’s economic landscape.
Speaking during the launch of 5G network by MTN Zambia Limited in Lusaka yesterday, Mr Hichilema said the positive and sound life of the economy can only be enhanced through advancements in technology.
The President added that the technological advancements which have been introduced in the country are in line with the government’s ambitious programme to grow the economy.
He explained that the launch of 5G will create jobs and business opportunities in the country especially in the area of small and medium enterprise development. The President further said improved technology is a catalyst to transform the mining sector.
He has since urged the mining sector in Zambia to use 5G to enhance collaboration with experts in South Africa and others to ramp up production. He added that the education sector will also benefit from the commercial launch of 5G in the country.
In the area of agriculture and tourism, President Hichilema said communication will filter quickly to farmers and the tourism sites which are found in far flung areas.
The President said livestock farmers are yet to benefit from the connectivity as information will reach them faster wherever they are across the country.
He said the introduction of 5G is in line with the Eighth National Development Plan (8NDP) which aims at job creation and improving people’s lives.
And Minister of Technology and Sciences, Felix Mutati, noted that 5G will improve mobile money services which will transform the lives of the people, especially entrepreneurs.
He said the progressive policies which the new administration has brought in the telecommunication industry will change the economic development of the country.
Mr Mutati added that the digital transformation will address the business challenges the country has been faced with for some time.
“Indeed, Zambia is entering and breaking new grounds in terms of connectivity following this 5G launch we are witnessing today,” he said.
Meanwhile, MTN Chief Executive Officer Bart Hofker stated that 5G will optimise the speed of connectivity which will in turn develop economic and social activities in the country.
Mr Hofker said MTN is the champion in the digital world and will continue to connect countries in Africa.
He added that Zambia is the third country to be connected to 5G after South Africa and Nigeria.
He said huge sums of money have been invested in expanding connectivity across Africa in order to better people’s livelihoods.
“Let us embrace 5G as it is here to transform the social economic journey the government has embarked upon to better the lives of the people,” he said.
Zambia Economic Growth Forum 2022
International Growth Centre, November 28, 2022
The International Growth Centre (IGC) hosts the Zambia Economic Growth Forum 2022 (EGF) in partnership with the Government of Zambia by convening senior political and departmental leadership, researchers, and development partners to discuss the barriers to economic growth, identify opportunities for reform, and encourage research-policy collaboration.
His Excellency President Hakainde Hichilema delivers the keynote. IGC also invites ministers, senior departmental leadership, diplomats, and members of civil society to join the conversation. Partners from outside of Zambia, including Ethiopia and Kenya, also join to share cross-country experiences in key areas.
The EGF also aligns with the re-establishment of IGC’s resident country program in Zambia.
Please download the programme here for more information.
Invest Africa Set For Zambia Mission
By Hannock Kasama
London based leading business and investment platform, Invest Africa, is set to undertake its fourth investor mission to Zambia in March next year.
The company which also operates in Johannesburg, New York, Dubai and Geneva provide its members with unique information and exposure to business opportunities.
Invest Africa Company Chief Executive Officer Karen Taylor says Zambia is ripe for investments especially with the favorable conditions provided by President Hakainde Hichilema.
Ms. Taylor called on the private sector to give Zambia their maximum support as President Hichilema has provided them with the reforms they have been waiting for.
She made the announcement during a panel discussion in London on the topic ‘Industrialisation in Africa: Seizing Opportunities in Global Value Chains.’
This is according to a statement released to ZNBC News in Luska by First Secretary at Zambia’s Embassy in London, Speedwel Mupuchi.
This article originally appeared in ZNBC
Ethereum Founder Energised by Zambian FinTech Take-Off
Vitalik Buterin, co-founder of Ethereum, is backing a bright future for cryptocurrencies and FinTech in Zambia. Having engaged with President Hichilema via virtual meetings, the founder of the world’s second largest cryptocurrency has expressed his support for Zambia’s digital transformation.
Speaking after a visit to the country in 2019 Buterin appeared excited by the future prospects for the country. “I was impressed by everyone’s willingness to go and do big things,” he said.
Start-up founders from Zambia and around the world have been consulting with the government since February. The aim is to improve the national regulatory and business environment, in conjunction with the private sector, to attract more tech firms and capital.
Mwiya Musokotwane, Founder and CEO of Thebe Investment Management and the son of Zambia’s Finance Minister, is one of those driving the project and insists policy must “live up to people’s expectations” or risk driving away investment.
It is not just Buterin who is excited by the Zambian market. Nigerian payments firm Flutterwave Inc., valued at more than $3 billion dollars, have indicated its interest in Zambia as a potential regional tech hub. Zimbabwean tech investor Perseus Mlambo got in at the ground floor of the Zambian market, launching the payments platform Zazu Africa Limited in 2015. Zazu seeks to improve transparency and accessibility across online financial services through its platform.
At present 75% of Zambia’s export earnings come from copper sales. Although the mining industry is a crucial driver for Zambia’s present economic growth, attempts are being made to dramatically diversify the country’s economy.
One of President Hichilema’s first acts in office was to set up the newly minted Ministry of Technology and Science. The creation of this ministry is intended to signal the future importance of the sector and coordinate a favourable policy environment. The ministry’s founding came just before the launch of the National Skills Youth Empowerment Programme. Digital competence is viewed as a vital part of upskilling the country’s youth to best prepare them to engage in the global economy and in Zambia’s economic future.
This year also saw the launch of the government’s National Digital Transformation Strategy. Big Four accounting firm PwC praised the strategy and concurrent investment as a “key enabler” for economic transformation and job creation.
On Wednesday, speaking at the Innovation Africa Summit, hosted in Lusaka, President Hichilema emphasised the importance of technology to education. In a subsequent tweet the president emphasised: “As we invest in education, we must leverage on technology to make our jobs easier and help us achieve more with our resources. Resources can be stretched with the use of technology.”
The Zambian government is heeding Mlambo’s warning not to “miss the proverbial boat” by under-investing in the FinTech boom. Mlambo is encouraging the Zambian government to use the power of technology to aid its development plans. He has emphasised that “tech uplifts multitudes of people and the barrier to entry is very, very low.”
Indeed, the growth of digital financial services has been revelatory in many sub-Saharan African countries. Person to Person (P2P) digital payments systems facilitate the integration of those without formal bank accounts but with internet access. Despite turbulence in the cryptocurrency markets this year, small retail transfers of $1000 or less have actually increased on the continent. This is indicative of the high grassroots level uptake of the technology in Africa.
Rather than cryptocurrencies being bought as speculative investments - as is most common in Europe and North America - or funds being dominated by large firms, Africa’s crypto boom is being driven by a high proportion of grassroots adoption. The technology facilitates quicker and cheaper transfers than traditional systems. Further, while not a prime driver in Zambia owing to the kwacha’s strong international performance, crypto assets can provide an independent means of access to foreign exchanges and can serve as a hedge against currency volatility. In Zimbabwe, for example, where inflation is at 90%, cryptocurrencies have proved particularly useful for buying everyday goods.
This year Zambia held its first-ever Internal ICT Expo and Fintech Festival. With the African cryptocurrency market having grown 1200% between 2020 and 2021, and Zambia’s digital finance market set to reach 7.25 million users by 2027, this is an important time to unmask the power of technology.
Zambia’s Central Bank announced this year that the possibility of a Central Bank Digital Currency is being explored. With this and more in the future, it is no surprise that Ethereum sees a bright future for digital finance in Zambia.
Image: Vitalik Buterin via Chet Strange/Bloomberg
Thinking of investing in Zambia’s technology industry? Sign up for our investor briefing or get in touch at info@zambiaisback.com
Zambian Breweries: Bottling Success For Zambia
Since its founding in 1963 Zambian Breweries has been at the heart of the country’s beverage industry. The company is famous for its clear beers such as Mosi Lager, Castle, Carling Black Label, Eagle, Flying Fish and Castle Lite.
The brewery’s recent take-over by Belgian drinks giant AB InBev has allowed production to continue to grow. Combined with the New Dawn government’s pro-business stance, this allows Zambian Breweries to invest in supporting local businesses through backward-linking supply chains.
Zambian Breweries was originally formed in 1963 via a partnership between South African Breweries and Labatt Breweries of Canada. Following this, the company was nationalised in 1968, during which time it operated out of two production facilities in Lusaka and Ndola.
Later, during the privatisation programme initiated by the government in the 1990s, the brewery was once again privatised with its assets and liabilities split into two newly incorporated companies: Lusaka Breweries Limited and Northern Breweries. Lusaka Breweries then went on to become Zambian Breweries.
Photo: Zambian Breweries
Fast forward to 2016 and the company was bought by AB Inbev, becoming part of the company’s global initiative to “bring people together for a better world through our products, brands, and investment in our communities.”
AB Inbev is the world’s largest beer brewer by both volume and revenue. It operates more than 600 beer brands in 150 countries and employs more than 170,000 people throughout its operations. The company made $54.3 billion last year, having seen profits grow even during the pandemic. The company owns household names such as Stella Artois, Corona and Budweiser.
Earlier this year Zambian Breweries announced an $80 million capital investment to expand its Lusaka factory and create 5,000 jobs. The investment is set to target the supply side of the business: improving technical services, brewing and enhancement of their cellars.
Additionally, the investment will unlock further innovation opportunities in the industry. At the moment, 90% of the investment will be in high-tech equipment to make operations more sustainable. Specifically, the investment will include enlargements of the company’s agriculture out-grower schemes and offer procurement opportunities to local suppliers.
Further, it will also see the Mungwi Road factory double its production capacity over the next year, creating jobs and improving productivity to meet the company’s growing demand. Other upgrades include replacing the factory’s clean-in-place (CIP) equipment; installation of a more efficient boiler; and establishing a new milling plant.
Photo: Zambian Breweries
Michelle Kilplin, Zambia Country Director for AB InBev, praised the investment as a triple win for the community, government and company. She said, “This investment has been enabled by the pro-business and pro-investment climate being promoted by the government. We are encouraged by what we have seen so far and we as a business intend to be a big part of the economic recovery and growth of the Zambian market.”
Additionally, Albert Malunga, Lusaka plant manager, said the government had helped the company make the investment decision through its emphasis on sustainable business. He specified that the creation of the Ministry of Green Economy will help businesses to meet their green goals.
“Our response as a business is to prepare ourselves for the future by investing in new technologies which will be environmentally friendly and will help us care for the environment by reducing carbon emissions,” he said.
Zambian Breweries’ expansion is expected to have multiple positive knock-on effects for supply chains; benefiting retailers, transporters and suppliers. Moreover, government support packages - such as the 50% suspension of excise duty on clear beer and the decrease in excise duty on locally produced clear beer from 10% to 5% - has meant that more companies can now get involved in this growing industry.
Thinking of investing in Zambia’s agriculture industry? Sign up for our investor briefing or get in touch at info@zambiaisback.com
Yango: The Taxi Company Hailing Growth in Zambia
Yango, the ride-hailing service initially launched in Israel, has grown exponentially since its founding in December 2018. Operating in 600 cities across 17 countries, Yango launched in Zambia in early 2022.
Zambia is the fifth country in Africa, and the first in southern Africa, that Yango has launched in, with the company already present in Côte D’Ivoire, Ghana, Cameroon and Senegal. Upon its launch, General Manager for Yango in Africa Adeniyi Adebayo noted Zambia’s status as a “growing, actively developing economy”. With a 4% annual growth rate, and over half the country’s population under the age of 18, there is the potential for Yango’s market, and profits, to grow enormously in Zambia in the years to come.
In addition to offering a taxi service, Yango offers parcel delivery, rapid grocery delivery, and car-sharing options. What sets them aside from global competitors such as Uber is their collaborative approach, which includes partnering with local taxi companies.
By using AI-based navigation and request services, journey times are reduced for passengers; drivers waste less time between rides; and overall costs fall. Such technology can help the growth of small and medium -sized business throughout the city. Less time is wasted on a worker’s commute; taxi companies can schedule more business per day; and local food and parcel services see their products delivered more efficiently. The number of internet users in Zambia grew by 5.4% across 2021, and the government is attempting to accelerate this further through the National Digital Transformation Strategy. As online demand increases in Zambia, such efficiency driving technology may give Yango a crucial advantage over regional competitors.
Speaking to Business Insider, Adebayo explained how their service aims to co-operate with their partner firms holistically: “to replace their old-fashioned ways of doing business, which sometimes is at best Excel spreadsheets, we offer digital accounting and fleet management technology to improve the transparency and efficiency of operations.” This is also why the company offers more than 50 driver support specialists per city.
Government officials have welcomed the competition and innovation that Yango have brought to the market, with Minister of Transport Frank Tayali stating, “we see that its presence on the market benefits the creation of new job opportunities with local transport operators which partner with Yango.” Echoing the sentiments of Adebayo, the Minister spoke of the opportunities Yango provides to small and medium-sized businesses to grow and modernise.
The Minster concluded by assuring businesses that “the new regulation will not limit these opportunities.” Indeed, through the newly founded Public-Private Development Forum, the government is actively seeking to foster public-private cooperation in order to overcome critical sector specific constraints. Further, the administration is actively seeking to encourage foreign investment by hosting business summits and cutting taxes in an effort to stimulate the Zambian economy and reach middle-income status by 2030.
Yango has experienced enormous growth in Africa since its introduction to Côte D’Ivoire in 2018. The company has increased the number of riders in Africa seven times annually. The African market now represents 60% of the company’s Gross Merchandise Value (GMV). GMV is a measure of the total value of sales. Such a large share is indicative of the sheer demand for affordable, digitised ride-hailing technologies on the continent.
The company have introduced a number of additional features since they first launched in order to make the service more convenient and attractive to its customers. For example, ride-sharing has been introduced to allow for reduced prices with minimal additional time added to journeys. Passengers are also able to utilise safety features to let select contacts know they’re getting home safe or track their progress along a journey. In Cameroon, Yango have introduced driver safety figures including using AI algorithms to warn drivers about particularly dangerous areas of road, manoeuvres, and possible incidents on their journey.
Yango’s approach includes a focus on Corporate Social Responsibility. For example, during the height of the COVID pandemic, Yango provided free rides for doctors to visit patients and for people traveling to vaccination centers. The company has also recently spoken about its plans to support education with a focus on IT in the region.
Thinking of investing in Zambia’s technology industry? Sign up for our investor briefing or get in touch at info@zambiaisback.com
HH Holds Meeting With a Team From the Commonwealth
Lusaka Times, November 9, 2022
President HAKAINDE HICHILEMA has held a series of meetings during the ongoing COP27 in Sharm El Sheikh, Egypt. This morning, President HICHILEMA met with a team from the commonwealth to discuss matters of mutual interest.
Some of the key issues discussed include investment in renewable energy in order to create a viable energy mix for Zambia.
And Commonwealth Assistant Secretary General for Governance and Peace, Professor LUIS FRANCESCHI said Zambia is ripe for investments due to its peace and political stability.
President HICHILEMA later met officials from the International Finance Corporation- IFC, a wing of the World Bank group, where potential areas of investment were discussed among them Agriculture, manufacturing and mining.
The President emphasized Zambia’s strategic location saying the Country is well positioned to enhance trade and provide various goods and services for the region.
And IFC Managing Director MARKHTAR DIOP said following the fruitful conversation with President HICHILEMA, the group would undertake a feasibility assessment tour to Zambia soon with a view to explore more investment opportunities.
MEANWHILE, the International Chamber of Commerce -ICC- has awarded President HICHILEMA for playing a key role in Zambia meeting its Nationally Determined Contributions -NDCs.
President HICHILEMA received the Presidential Transport Champion Award of the year at an event presided over by Africa investor Chairman Awards Adjudication panel Chief Executive Officer HUBERT DANSO.
The President who received the award this afternoon at the ongoing cop27 conference in Sharm El sheikh, said the award came at the right time when the world was shifting to electric vehicle usage for transportation in order to protect the environment.
President HICHILEMA stressed that Zambia working with the Democratic Republic of Congo was ready to take part in the manufacturing of the electric vehicle batteries and that the headquarters of this Joint venture would be in NDOLA.
The President also took time this afternoon to visit the Zambian Pavilion at the ongoing Cop27 conference in Sharm El sheikh Egypt.
President HICHILEMA encouraged the Zambian delegates to not only participate in meetings but extract value, in order for Zambia to benefit from the ongoing negotiations.
The President also called on financial institutions attending the conference to create a favorable environment for potential investors in the green, clean and sustainable projects sectors to increase the number of players.
Global Entrepreneurship Week: Zambians Urged To Unleash Business Potential
Global Entrepreneurship Week (GEW) is due to take place next month between 5th and 11th of December.
Global Entrepreneurship Week (GEW) is due to take place next month between 5th and 11th of December.
The theme of this year’s GEW is ‘Transforming Zambia’s Natural, Mineral, and Cultural Resources Into Economic Growth and Wealth Creation For All Citizens.”
Earlier this week, Elias Mubanga, Minister of Small and Medium Enterprise Development, spoke at the event’s press briefing in Lusaka, where he urged entrepreneurs to unleash their business potential.
He stated that the new platform will support new business leaders to grow their businesses.
Further, the minister outlined that the week will aim to inspire people and communities to collaborate and share their knowledge and networks.
The week aims to offer plentiful opportunities and platforms for businesses and government exchanges, which include the encouragement of open conversations on entrepreneurship.
He said, “This event will provide opportunities for businesses and institutions involved in private sector development to freely interact with SMEs and their customers, and also showcase their goods, and services.”
Additionally, Edwin Zulu, the Managing Director of the Global Entrepreneurship Network, said that the week will draw focus to innovators and entrepreneurs allowing them to unleash their potential.
He specified that the event will be particularly useful to young entrepreneurs, helping them gain key skills.
He said, “We will have entrepreneurs from across the globe impart knowledge on entrepreneurship development in the minds of our Zambian young entrepreneurs on how they can actualise the economic potential that our mineral, agriculture sectors have.”
Barrick Gold Digs Deeper With Government Support
Mining giant Barrick Gold Corporation has recently announced record yields from its Lumwana copper mine thanks to a combination of the New Dawn government’s favourable business policies and strategic reinvestments made by the company to improve infrastructure at the mine, which is located 100 km west of Solwezi in the heart of Zambia’s Copperbelt.
Barrick Gold’s Lumwana Copper Mine. Source: Bloomberg.
Barrick Gold is now one of Zambia’s largest copper producers, employing more than 4,400 people, 99.3% of whom are Zambian nationals.
The company, which has invested more than $8.2 billion into the Zambian economy in the form royalties, taxes and local employment since 2011, has said it is looking to continue growing its Zambian operations.
Earlier this year CEO Mark Bristow described the mine as a “real success”; demonstrated last month when the company announced that copper production had climbed to roughly 334,000 tonnes since the start of the year - more than double the amount it produced in 2010.
The Lumwana mine was initially purchased in 2011, although Barrick considered selling it following a merger with Randgold Resources in 2019. Discussions fell through, however, and the mine was kept in the hands of the company.
Following the election of President Hakainde Hichilema and the New Dawn government, new business-friendly policies meant that the mine was able to ramp up production and now contributes 20% of Barrick Gold’s annual earnings.
Such policies include those which were announced in the 2023 Budget. Specifically, Mr Bristow expressed his contentment with the new mineral royalty tax regime, which is set to come into effect in January 2023.
The new mineral royalty tax regime, which is based on the price of copper, has been restructured to tax only the incremental value in price at different thresholds, as opposed to the aggregate value. The government will also allow miners to deduct royalties from income taxes which will resolve the issue of miners being taxed twice. This had previously been an issue as miners were taxed both on their incomes and through the royalty regime. Additionally, these changes will also smooth out the impact of price fluctuations in the market.
This economic stability in tax will ensure confidence in the market as well as encourage more cash flow back into the economy through reinvestments, something Barrick Gold have said will prove vital as they scale up production.
Workers at the Lumwana Copper Mine. Source: Barrick Gold.
Mr Bristow explained that the changes in mineral royalty tax will unlock more cash flow for the company that could be used as reinvestments into the mine.
Additionally, the New Dawn administration has reduced the property tax transfer on exploration rights. The tax has been reduced to 7.5% - 2.5% lower than the previous rate.
Earlier this month, during a media briefing at the mine, Mr Bristow described how Lumwana is more profitable than ever and is generating even higher yields, making it one of Zambia’s largest copper producers.
He also outlined plans to expand the mine by creating a ‘super pit’, stating that, “Promising drill results at the Lubwe satellite target are increasing our confidence that we will be able to develop a super pit and still keep producing at today’s rates and more.”
Further, he said, “Should the super pit prove viable, it will substantially extend the mine’s life with a two-year pre-feasibility study scheduled to commence in 2023.”
The new pit’s potential profitability has led to reports that Barrick could extend its operations at Lumwana from 2042 to 2060.
Aside from the high yields, Mr Bristow outlined that favorable business policies have also encouraged the firm to invest in Zambia. The CEO has repeatedly said that stable governance and pro-investment policies have been some of the key aspects that persuaded Barrick Gold to continue its operations in Zambia and to reinvest their earnings.
Mr Bristow stated that the New Dawn government is like, “a breath of fresh air.”
Zambia is set to become a hub for global mining investment. It is the 7th largest copper producer in the world, producing roughly 88,000 metric tonnes of the metal a year. It is also home to some of the highest grade copper mines in the world, making it a particularly attractive area for exploration and investment. On top of this, the country is home to substantial nickel, cobalt, and manganese deposits. Outside of metals the country also produces 20% of the world’s emeralds.
Thinking of investing in Zambia’s mining industry? Sign up for our investor briefing or get in touch at info@zambiaisback.com
Hakainde Hichilema Innovation Fund Launched
A partnership has been launched by the government of Zambia and Huawei has been launched with the goal of improving innovation in the country.
The fund, to be known as the Hakainde Hichilema Innovation Fund, will see 50 young Zambians receive scholarships from the Chinese telecommunications company to innovate in the ICT sector. It will be available to undergraduates on ICT or STEM courses.
The National Technology Business Centre will become a new innovation hub on government property in the nation’s capital. Each of the selected 50 must have a “viable idea ready for incubation” and at that point will receive $1,000 dollars to help them actualise their vision, explained Phil Li, Huawei Technologies Vice President for Southern Region. “We hope this will go a long way to help them work through their ideas and actual them for national ICT solutions,” he said.
Felix Mutati, Minister of Technology and Science, emphasised the agenda is part of the government’s aim to see a digital transformation in the country, as a subset of the broader goal of modernising the Zambian economy and reaching middle income status by 2030.
Minister for Education, Elijah Muchima, emphasised the country had a long way to go when it came to digital skills but that through technology development can be brought to all corners of Zambia.
“My ministry believes that through technology and digital systems we can take the learning resources to all parts of this country, including in areas where these resources are needed most, so that every learner in Zambia has the digital skills to unlock their potential,” he said.