Minister Announces Plans to Finish Cryptocurrency Tests by June
Science and technology minister, Felix Mutati, has announced the government’s plans to finish the tests necessary to approve cryptocurrency usage in the country by the end of June.
According to the minister, such tests – which started on 19th February – include the central bank and securities regulator simulating using cryptocurrency in the real world.
In an interview with Reuters, Mutati said that the government’s main goal is “to strike a balance between innovation in terms of digital payments […] against citizens’ safety, particularly given that cryptocurrency is very volatile.”
These concerns have been echoed by other African nations and reflected in their approach to the use of cryptocurrency: Nigeria banned banks from handling the currency in February 2021.
However, the Central African Republic swung the other way, becoming the first African state to make bitcoin legal tender and even launching its own cryptocurrency token, the Sango Coin. It also announced a regulatory framework for the country’s use of the digital currency.
Before Zambia can follow suit, work needs to be done to prepare the country’s digital infrastructure, including creating digital identities.
Once the regulatory tests are completed, Mutati hopes that the use of cryptocurrency in the country “will be a driver for financial inclusion and a change maker for Zambia’s economy.”
This announcement is part of a series of developments that signal an exciting economic future for the nation. The science and technology minister noted this, reflecting on the “increased appetite to invest in Zambia.”
Kamala Harris Celebrates Innovative Panuka Farm
Kamala Harris, during her successful trip to Zambia last week, visited a farm that is successfully experimenting with innovative agricultural techniques.
Panuka Farm lies outside of Lusaka. Founded in 2017 by its Managing Director, Bruno Mweemba, it focuses on bulk production and supply of high-value crops. The farm’s most popular products are English cucumber, sweet peppers, and iceberg lettuce.
Harris’s visit to Zambia was one stop on her weeklong trip to Africa, which also included visits to Ghana and Tanzania. High on the agenda was concerns about food insecurity as a result of climate change – a topic especially pertinent to Zambia and its agricultural economy. In visiting Panuka Farm, Harris therefore had an opportunity to explore what the future of innovative food production across Africa could look like.
Bruno Mweeba and Kamala Harris at Panuka Farm (Panuka Farm Facebook)
Mweemba, as well as being the founder and Managing Director of Panuka Farm, is an environmental finance expert who has worked previously in biodiversity conservation and climate change finance. He described Panuka as his “laboratory” in which to test and showcase the practical side of conservation and climate-smart agricultural theory. Mweemba is well-placed to be at the forefront of this work, having also been working over the past three years as an advisor for the United Nation’s Development Programme’s Biodiversity Finance Initiative (UNDP-BIOFIN).
It is abundantly clear how Mweemba’s vision has played out in the operations of Panuka Farm. The farm is innovative in its green energy use, agricultural technology, and community links in three major ways.
Firstly, Panuka has been completely solar powered ever since its conception in 2017. As well as providing an active response to the climate crisis, being completely off-grid means the farm is not susceptible to the fluctuations of Zambia’s (mostly hydro-reliant) energy supply, which has been in some distress in recent months.
Furthermore, the farm is very careful about its water usage. Mweemba and his employees have been experimenting with new techniques and technologies, including drip irrigation, harnessing the power of gravity, and an ongoing project of rainwater harvesting. At Panuka, water use is at its most efficient.
As well as being a pioneer in green energy and innovative agricultural technology, the farm also has a strong social conscience. This is reflected in its deep ties to the local community: 95% of its workforce comes from surrounding villages. Panuka also runs a successful graduate traineeship. Over the course of six months, graduates from agricultural colleges and universities are trained in farm management at Panuka. It is hoped this scheme will train and inspire the next generation of forward-looking agricultural leaders.
Harris described Panuka’s techniques as “an example of what can be done around the world”. In a speech she made at the farm, the Vice President stressed the US’s commitment to such work. Significantly, she announced a $7 billion commitment to promote “climate resilience, adaptation, and mitigation” across Africa – part of which will be dedicated to promoting food security. She particularly highlighted the role climate-smart agriculture, like the kind practiced at Panuka, would play in this commitment.
Workers on Panuka Farm (Kent Nishimura / Los Angeles Times)
The Vice President’s remarks are extremely timely, and mirror some of the steps taken by the Millennium Challenge Corporation (MCC) which entered into a compact with Zambia in 2013-18. The MCC is an independent US foreign aid agency which forms partnerships and provides grants to developing countries in order to aid in economic growth and reduce poverty. Through its partnership with Zambia, a grant of $322 million was invested in water supply, drainage and sewage networks, resulting in greatly increased access to clean water and consequently improved sanitation and hygiene.
Three years after the completion of the compact, in December 2021 the MCC selected Zambia as eligible to develop a second compact. A primary area that has been identified by the MCC in hindering Zambia’s economic growth is the country’s current agricultural methods and policies. In October 2022, Mr Panuka met with the MCC team to discuss the second compact. He “provided some insights on how the MCC Compact could be better designed especially on access to finance for smallholding farms”.
According to the farm, Panuka is a Tonga word meaning “clear, innovative, and open to new ideas”. It is clear that it truly lives up to the meaning of its name in its commitment to innovative agricultural techniques, green energy solutions, and commercial prosperity.
Zambia Investor Briefing: March 2023
OVERVIEW
Invest Africa, a leading business and investment platform, led a delegation to Zambia formed of 9 companies across a multitude of sectors, from energy and mining to infrastructure and logistics. The team held a roundtable discussion with President Hichilema in State House, Lusaka, to better explore ways to invest in the Zambian economy. The mission also held meetings with Bank of Zambia Governor Denny Kalyalya and Albert Halwampa, Director of the Zambia Development Agency (ZDA).
A consortium of investors from the energy and mining sectors presented to President Hichilema on their intention to develop a new wind and solar project. UK-based Chariot Transitional Energy, in partnership with French giant Total, has agreed to fund and construct a USD 500 million renewable energy project to supply power to Canadian mining company First Quantum Minerals (FQM), which support FQM’s Zambian operations.
President Hichilema travelled to Qatar this month to participate in the LDC5 Conference in Doha. Over a period of five days, the conference convened world leaders, representatives from the private sector, civil society, parliamentarians and the youth to advance new ideas, raise pledges of support and accelerate sustainable development in areas where international assistance is needed most.
Lusaka played host to the inaugural EU-Zambia Pharmaceutical Forum, under the banner ‘Strengthening Healthcare through Local Pharmaceutical Manufacturing’. The goal of the forum was to encourage and promote the manufacture of pharmaceutical products in Zambia. President Hichilema, who addressed the forum, said local pharmaceutical companies must be willing to “collaborate and partner with well-established foreign pharmaceutical companies” to build greater capacity and experience.
Direct flights between Turkey and Zambia have resumed following a two-year hiatus owing to the Covid-19 pandemic. The route will be operated by Turkish Airlines, connecting Istanbul with Lusaka. “This is a positive development for both Turkey and Zambia as the direct flights between Istanbul and Lusaka will facilitate business trips, travel and tourism”, Turkey’s ambassador to Zambia, Istem Cırcıroğlu told Anadolu Agency.
South African financial services group, ABSA, opened the ABSA Bank House in Lusaka, Zambia. President Hichilema led proceedings at the official unveiling of the new building. The president spoke of the importance of the private sector in bringing about greater development.
Investor and Trade Mission
Invest Africa led a three-day mission to the Zambian capital, facilitating dialogue between foreign investors and government. Global law form DLA Piper, German technology giant Siemens, South African financial services group ABSA, and logistics firm DHL, were among those that joined the mission.
The trip, which connected international businesses looking for investment opportunities, formed part of the New Dawn government’s efforts to attract multinationals to invest.
Projects showcased included the Mulembo-Lelya Hydroelectric Project, which is looking to raise USD 285 million and will generate 118 MW of electricity once completed, and the Shangombo Sugar Project, which requires USD 522 million through an FDI majority stake. The project is located at a greenfield site in Western Province.
Mining and Energy Developments
A consortium of investors from the mining and energy sectors presented a renewable energy project to President Hichilema at State House in Lusaka. Mphepo Power, Total Eren, Chariot and First Quantum spoke of their intended projects to develop 770 MW of wind and solar that would greatly contribute to Zambia’s grid resilience.
The Kafue Gorge Lower Hydropower Station, located in Southern Province, was commissioned by President Hichilema, adding a total of 750 MW to Zambia’s national grid. The dam, which was built in collaboration with ZESCO and Chinese company Sinohydro Corporation Ltd, will help not only Zambia’s energy resilience, but also the country’s wider economy, according to the president.
President Hichilema was present to open the Mimbula Mine in Chingola. During the ceremony, he told the press that funds had been secured to reopen the copper mine at Mopani, operated by Konkola Copper Mines (KCM). In a written statement, the president said his government would “continue providing an enabling environment for business to thrive because our people need jobs and business opportunities”.
5th UN Conference on Least Developed Countries
President Hichilema held a number of meetings on the sidelines of the LDC Conference in Doha, Qatar, including with Chrysoula Zacharopoulou, the French Minister of State for Development, Francophonie and International Partnership. Discussions centred on France’s role as co-chair of the G20 Creditor Committee for Zambia. Endorsed by the Paris Club, the committee is tasked with seeking resolutions to Zambia’s debt issue.
The president further met with Qatar’s Deputy Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman Al-Thani. “[W]e encouraged Qatari investment in Zambia as we push for more jobs through a thriving private sector”, Hichilema remarked. Zambia is soon to open an embassy in the Qatari capital.
The UK’s Minister for Development and Africa, Andrew Mitchell, pledged to support Zambia’s debt restructuring under the Common Framework, while emphasising the UK’s continued commitment to invest in Zambia through British International Investment (BII), the UK government’s development finance institution.
Democracy Summit
Zambia co-hosted the second iteration of the Summit for Democracy, a two-day, virtual event, alongside international partners the US, South Korea, Costa Rica and the Netherlands. The theme of the event, organised by the US, was ‘Free, Fair and Transparent Elections, as the Foundation of Democratic Government’.
During his keynote address, President Hichilema underscored the need for strong leadership and institutions of governance around the world to cement democracy. “We should ask ourselves: what is it that we need? Strong leaders or strong institutions? Or both?" he said, adding that electoral conflicts were a deterrent to the democratic gains made by states post-colonial rule.
Currency:
1 USD = 21.23 ZMW 30 day average = 21.326 Volatility (last 30 days) = 0.48%
OTHER NEWS
Skilled miners critical to meeting production targets, 01.03.23, Times of Zambia
Zambia’s developing international relations, 07.03.23, Chatham House
Statement by Press Secretary Kirsten Allen on Vice President Harris’s Travel to Ghana, Tanzania, and Zambia, 13.03.21, The White House
Malawi turns to Zambia Defence Force for cyclone rescue mission, 16.03.23, Nasa Times
Zambia’s President: ‘You cannot eat democracy’, 28.03.23, The Washington Post
US Vice-President Harris’ visit to Zambia raises excitement, 29.03.23, Voice of America
Zambia Airways resumes flights to Zimbabwe after 27 years, 29.03.23, Simple Flying
UPCOMING EVENTS
04.04.23
Select Zambia Investment Forum 2023
Lusaka, Zambia
26.04.23 - 27.04.23
Zambia Institutional Investors Forum
Lusaka, Zambia
CONTACT US
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$2 Billion Solar Power Deal Struck with UAE Energy Company
The Abu Dhabi renewable energy company, Masdar, has struck a deal with the Zambian government to develop 2GW of solar energy – estimated to be worth $2 billion – in the country. The joint venture, made in January, has been made with ZESCO, Zambia’s state-owned and largest power company.
President Hakainde Hichilema announced the joint development agreement in a statement on his Facebook page, describing the agreement as “not a loan but a capital injection in which the Zambian people, through ZESCO, will be partners in shareholding”.
The development of these large-scale solar farms will be rolled out in phases of 500MW at a time, and is expected to start in the immediate future.
This is only one of many direct foreign investment deals struck with the Zambian government in recent months. Following just a month after news of the UAE-Zambia deal, it was announced that the UK energy sector would also invest $2 billion in a green energy join ventures agreement. Then, just days ago, ZESCO signed a deal with China’s Integrated Clean Energy Power Company (CiEG) for renewable energy production worth $3.5 billion.
These foreign direct investments are an extremely welcome boost to Zambia’s current energy capacity. An estimated 30% of the population has access to energy. Not only will these investments widen that figure, it will also improve the quality of energy supply experiences by those who are connected.
Zambian and UAE energy delegates at the signing of the Masdar-ZESCO agreement (@HHichilema)
Zambia’s previous reliance on hydropower (estimated to be roughly 80% of Zambia’s energy output) has left the grid struggling following periods of disrupted rainfall and extreme weather. Especially damaging were the critically low water levels in the Kariba Dam some months ago, a resource that is central to the country’s hydropower generation.
It is therefore hard to overstate the importance of President Hichilema welcoming investment from Masdar, CiEG, and others. It shows that the government is looking to diversify its energy supply within the realm of renewables. This diversification will increase its resilience to climate fluctuations which can affect the production of hydropower. By doing so, it is looking forward, not only to a greener future, but also to a more economically prosperous one.
Zambia needs significantly more energy in order to develop its economic potential. Drastically increasing the country’s power is necessary for improving and mechanising the agricultural industry, which is currently rooted in small-scale and traditional farming methods. More generally, closing the energy poverty gap will increase employment opportunities and bolster GDP.
President Hichilema said in a statement on Twitter in January that the Masdar-ZESCO agreement was “unprecedented” and showed “strong investor confidence” in Zambia. The energy deals struck in the months after are proof of this, and point to a bright future for the country’s energy and economy.
Zambia Airways Resumes Flights To Zimbabwe After 27 Years
Zambia Airways re-enters the regional network with three weekly flights to Harare after 27 years.
Zambia Airways (ZN) has resumed flights to Zimbabwe after 27 years. The airline was relaunched in December 2021 and has re-entered the regional network with a flight to Harare.
The inaugural flight took off on March 28 from Lusaka Kenneth Kaunda International Airport (LUN) and landed at Harare Robert Gabriel Mugabe International Airport (HRE), where a water cannon salute awaited. The flight was welcomed by government officials, news reporters, and various aviation, hospitality, and tourism stakeholders.
New regional route for the airline
Zambia Airways had been liquidated for more than 25 years but resumed operations on December 1, 2021, with the help of Ethiopian Airlines and the Zambian Industrial Development Corporation. Since then, it has been operating flights on domestic routes.
Last month, the Civil Aviation Authority of Zimbabwe (CAAZ) granted two Foreign Operator Permits (FOPs) to Eswatini Air and Zambia Airways. This gave ZN the green light to operate scheduled flights to Harare, which sees it re-enter the international network after nearly three decades.
The 55-minute flight to Harare was operated on a DHC-8-400, the only aircraft in the carrier's fleet. The airline will operate three weekly flights between Lusaka and Harare and plans to fly at least 1.9 million passengers annually by 2028.
Intra-Africa connectivity
Numerous stakeholders have been involved in the development of aviation in Africa. In line with the Single African Air Transport Market (SAATM) and the Open Skies Policy, Zambia Airways is spreading its wings and promoting intra-Africa connectivity.
As the industry has almost fully recovered from the pandemic, it is the perfect time for African airlines to step up and serve the continent. About 70% of African air travel is served by international airlines. The LUN-HRE has been dominated by Qatar Airways and Emirates, which operate five and seven weekly flights.
Launching the Zambia Airways flight can significantly boost trade, tourism, and business opportunities between the two neighboring countries. At an event following the airline's touchdown, Zimbabwe's Transport and Infrastructural Development Deputy Minister said to NewsDay: “Indeed, our two countries are Siamese twins who share a lot in common. Let us bear in mind that the opportunity offered by Zambia Airways creates copious room for scaling up our further co-operation in areas of aviation and deepening the people-to-people relations, as these are a catalyst for stronger relations between our two countries. To attain the desired middle-income status and fully modernize our countries, it is imperative that we develop reliable, adequate and appropriate aviation linkages.”
Zambia Airways expansion in the near future
The airline is delighted to have launched its first regional route since its restructuring. The route is expected to have a high demand; hence, the airline plans to launch a frequent flyer program in the near future. The program will be known as Zambezi Miles, allowing travelers to earn and spend rewards on Zambia Airways flights.
The Zambian government is eyeing a collaboration with other airlines operating the LUN-HRE route and fifth freedom flights to South Africa. Speaking at the welcoming event, acting Permanent Secretary for the Transport and Logistics Ministry of Zambia, Stephen Mbewe, said: “We are very grateful for our two airport cooperation, in the collaboration we have been doing for so many years, we've seen this during the time British Airways used to fly here, Kenya Airways, and now we see it with Qatar and Emirates. We hope the collaboration will go on with several other airlines, but we also have a plea honorable minister. We would like a fifth freedom to do the Lusaka-Harare-Johannesburg route.”
The two states are active members of the Southern African Development Community (SADC), founded in Lusaka, Zambia. SADC countries have substantial travel and trade partnerships, which the airline can leverage to enhance its regional connectivity.
This article was published by Simple Flying.
Invest Africa Concludes Successful Visit to Zambia
On Thursday, the Invest Africa group wrapped up its inaugural Investor & Trade Mission to Zambia: capping off three days of illuminating and exciting discussions between the government and business groups.
Highlights of the trip included a roundtable meeting with President Hakainde Hichilema at State House, as well as a discussion with Bank of Zambia Governor Denny Kalyalya, and a presentation on trade and investment opportunities by Zambia Development Agency (ZDA) Director Albert Halwampa.
Among the businesses represented at the mission were global law firm DLA Piper, German technology and industrials manufacturer Siemens, financial services firm Absa Group, and logistics giant DHL.
ZDA Director Albert Halwampa speaks with delegates from the Invest Africa Trade Mission.
The purpose of the visit was to promote and build connections for potential investment and trade opportunities for foreign companies in Zambia. It follows concerted efforts by the New Dawn government and national agencies to diversify Zambia’s economy and stimulate private sector growth.
Of particular note was a presentation by Technology and Science Minister Felix Mutati, which focused on how technology can help to drive forward Zambia’s economic transformation.
Hon. Mutati highlighted the importance of the digital economy in supporting Zambia’s strategic development objectives. As well as bolstering Zambian infrastructure, he pointed out that digital services such as e-trade and financial technology (FinTech) platforms could help businesses in Zambia to grow more quickly.
The minister highlighted emerging technologies such as Artificial Intelligence as being a real ‘game-changers’ in terms of value addition for businesses. However, he stressed that Zambian citizens were at the heart of the country’s digital transformation and that digital platforms will only succeed if Zambians can see the benefits in adopting them.
Zambia Is Back spokesperson Choolwe Chibomba (left) with Technology Minister Felix Mutati.
The presentation by ZDA Director Albert Halwampa, meanwhile, focused on active opportunities for trade and investment within Zambia. These included the Mulembo-Lelya Hydroelectric Project, which is looking to raise $285 million and will generate 118MW of electricity once completed. The project is currently accepting FDI proposals through either a majority or minority stake, as well as through a joint venture or public-private partnership.
Mr Halwampa also showcased an opportunity for investment at the Shangombo Sugar Project, which requires $522.3 million through a FDI majority stake. The project is located at a Greenfield site in Western Province.
Investors looking to hear more about these or any other opportunities can contact the Zambia Is Back campaign – part of the ZDA – at info@zambiaisback.com
Zambians say their country is a functioning democracy - Afrobarometer
Most Zambians surveyed by Afrobarometer see their country as a "full democracy".
The country has had six presidents following the fall in 1991 of founding president Kenneth Kaunda, who had ruled Zambia for 27 years.
Eight in 10 citizens (80%) consider Zambia “a full democracy” or “a democracy with minor problems”, according to the survey.
The survey also noted that 87% of Zambians in the survey prefer democracy to any other form of government.
Non-democratic alternatives such as one-party rule were also rejected by 87%, while 91% were against military rule and almost everyone surveyed (95%) were against a dictatorship.
Kaunda's reign was broken by Frederick Chiluba, effectively breaking the political dominance of the United National Independence Party (UNIP), which had operated a one-party state from 1973.
Chiluba, under the Movement for Multi-party Democracy (MMD) came in for two terms, followed by his successor Levy Mwanawasa.
Rupiah Banda took over from Mwanawasa, who died in office, but then lost to "The King Cobra" Michael Sata of the Patriotic Front (PF).
Sata also died in office and his deputy Guy Scott led the country for almost three months into the next elections, when Edgar Lungu stood and won as the PF's candidate.
But after one term, Lungu lost to the incumbent Hakainde Hichilema of the United Party for National Development.
A considerable number of Zambians interviewed by Afrobarometer said the country had greatly improved as a democracy.
"Half (50%) of Zambians believe that the country has become 'more democratic' over the past five years, while 21% think democracy has lost ground," the report said.
Hichilema beat Lungu by more than a million votes in what was his sixth attempt at the presidency.
Hichilema's victory was largely credited to the huge turnout by youthful voters.
Zambians believe their country will be a more improved democracy in the next general elections in 2026.
"Nearly six in 10 (57%) believe that in five years’ time, the country will be more democratic than it is today," the survey found.
A leader in democracy
Zambia has emerged as exemplary when it comes to the smooth transition of power in Southern Africa.
Next week the country will be one of the hosts of the Summit for Democracy.
Zambia will join the United States, Costa Rica, the Netherlands, and the Republic of Korea.
According to a statement issued by the US government, the summit will "highlight the many electoral stakeholders contributing to electoral integrity and explore how elections on the African continent have changed in recent years".
Some of the key engagements at the summit will be new approaches and partnerships that strengthen democracy, human rights, and governance.
President of Ukraine, Volodymyr Zelenskyy, will be given a virtual platform and is expected to discuss his vision for a just and lasting peace in Ukraine and rally Africa's support.
This article originally appeared in news24
PWC Delivers Positive Outlook for Zambian Economy
PwC Zambia has predicted a positive outlook for the future of the Zambian economy, highlighting encouraging trends in inward investment and an upcoming boon for the country’s agricultural sector.
Speaking during the firm’s Economic Review of 2022 on Wednesday, PwC’s senior country partner for Zambia Andrew Chibuye and Zanaco chief risk officer Mutisunge Zulu offered a balanced perspective on the challenges which the country has experienced over the last few years, whilst also showcasing the positive impact which the New Dawn government has had on the state of the country’s economy.
Under the previous Patriotic Front government, Zambia was the first COVID-era African nation to default on its debt-repayments, putting the country in a challenging position economically. Nonetheless, under the guidance of President Hichilema and the New Dawn government, economic prospects are improving, with finance Minister Situmbeko Musokotwane hoping for the debt restructuring process to be completed in the next few weeks. Speaking on this, PwC noted that a debt restructure deal is likely to bring about additional investment into the country as the economy continues to stabilise and grow.
Speaking on behalf of Zanaco, Mr Zulu also offered positive news for agriculture within the country. As the Russian war in Ukraine sadly continues, and agricultural exports from Ukraine become increasingly challenging to obtain on the global market, Zambia’s strong agricultural sector has an opportunity to benefit from the gap which the market currently experiences, Zulu highlighted.
The progress of inward invest within Zambia over the past few years painted a similarly pretty picture, with funding rising from just US$0.7 billion in 2018 to US$4.5 billion in 2022. With the exception of the pandemic year of 2020, Zambia is continuing to experience year-on-year growth in its internal investment.
Commenting on these figures, Mr Chibuye observed that “It’s a very positive story, activity is starting to happen and it is only a matter of time before the activity then starts to bear fruit in terms of jobs, more economic activity etc.”.
Around the world, investors are starting to look at Zambia with fresh eyes, with PwC’s positive assessment adding reassurance to those considering making investments within the country.
To watch to the full review, visit: https://fb.watch/jqH45MgU88/.
President Hichilema Announces Funding for Mimbula Copper Mines
President Hichilema announced on Wednesday that the future of the Mimbula Minerals’ Copper Mine at Chingola had been secured.
In April 2022, British firm Moxico Resources revealed plans for a $100 million expansion of the Mimbula Minerals Ltd. copper mines as part of the Zambian government’s push to expand export tax revenues and generate employment.
Little had been heard of Moxico’s renewed enthusiasm for the mine since the announcement almost a year ago. While visiting Mimbula’s site as part of his local engagement tour of the Copperbelt province, President Hichilema was glad to confirm that the 900 new jobs generated by Moxico’s investment were safe.
The President also disclosed that the government had incentivised partnerships between the mine and local suppliers, and that these co-operatives would be part of the drive to increase the mine’s extraction rate from 10,000 to 56,000 tonnes yearly.
While addressing Chingola residents, Mr. Hichilema also said that the government and Mines Minister Paul Kabuswe were working on deals to finalise investment in Mopani Mines and Konkola Copper Mines (KCM). Updating those present, Mr. Hichilema said that Mr. Kabuswe had secured the necessary funding for Mopani, and that there would soon be news on both Mopani and KCM. Meetings on Konkola, the President said, were to begin on Thursday 16 March.
The Mimbula Copper Project is on the outskirts of Chingola town, and mines a deposit rich in copper oxide and sulphide. Mimbula Minerals is the Zambian subsidiary of Moxico Resources, and was founded specifically to mine the Mimbula deposit.
Moxico currently owns an 85% stake in Mimbula Ltd., the other 15% being owned by local Zambian businesses. Their mining license was granted in 2017 and is valid for 25 years. Mimbula produced their first copper cathode from the mine’s ores in 2020, and has continued to refine at the Konkola tailings leach plant.
Mining at the Mimbula site ceased in the 1970s. in 2011, the Zambia branch of Vedanta Resources bought KCM and immediately began to make enquiries into the revival of the Mimbula mining complex.
Vedanta Mines sought to dissolve KCM in 2022; Mines Minister Paul Kabuswe directed Zambia’s state mining investment firm KCCM-IH to reach an out-of-court solution, which they achieved. Since then, the Zambian Mines Ministry has been seeking new investors for KCM’s four sites at Chingola, Chililabombwe, Nampundwe and Kitwe.
KCM is the largest mining operation in Zambia, and since the Vedanta settlement has been government-managed. Zambia has 6% of the world’s copper reserves, ranking 7th in the world and 2nd in Africa, and copper currently represents 80% of the nation’s export earnings. In December 2022, President Hichilema announced the $150 million backing of KoBold Metals as part of UPND’s 10-year plan to revamp Zambia’s copper facilities and boost copper production from 850,000 tonnes to 3 million tonnes annually by 2032.
Zambia’s plans to become a global copper powerhouse look more promising than ever – and the mines’ potential is moving from theoretical to actual.
US Vice President Kamala Harris Visiting Zambia This Month
A White House official press release has announced that Zambia will be one of the nations that U.S. Vice President Kamala Harris and Second Gentleman Douglas Emhoff visit as part of their trip to Africa.
The White House announced that the visit “will build on the recent U.S.-Africa Leaders Summit” at Washington in December 2022, and aims to “strengthen the United States’ partnerships throughout Africa and advance our shared efforts on security and economic prosperity.”
Among the visit’s key goals will be to “expand access to the digital economy, support climate adaptation and resilience, and strengthen business ties and investment, including through innovation, entrepreneurship, and the economic empowerment of women”.
The press statement also confirmed that Vice President Harris will meet with Zambia President Hakainde Hichilema. The pair plan to discuss “regional and global priorities, including our shared commitment to democracy, inclusive and sustainable economic growth, food security, and the effects of Russia’s unprovoked war in Ukraine”.
Also scheduled are a number of meetings with “young leaders, business representatives, entrepreneurs, and members of the African Diaspora”.
The visit will begin on March 25 and end on April 2. Vice President Harris will visit Ghana, Tanzania, and then Zambia.
HH Opens Mimbula Mine
By Brian Mwale
ZNBC News
President HAKAINDE HICHILEMA has commissioned Mimbula Copper Mine in Chingola with a call to residents to safeguard the mine.
President HICHILEMA says the nine which has created 900 jobs is key to revenue generation, job creation and stabilizing the kwacha.
The President also urged workers to resort to dialogue when faced with grievances instead of taking to the streets.
Speaking during the Launch this afternoon, President HICHILEMA praised management of Mimbula which is owned by British Company Moxico Investments to ensure they look after workers.
He also encouraged foreign investors to partner with locals and work with local suppliers.
The President further noted that Mimbula’s planned expansion plan to increase production from the current 10-thousand tonnes to 56-thousand tones is key for national development.
He said the company’s expansion plan of extending to 56-thousand metric tonnes production from the current 10-thousand is key for development of surrounding communities.
President HICHILEMA said his job is to improve the country through hard work and investments such as Mimbula which has created Nine hundred jobs.
And, Mines Minister PAUL KABUSWE said Zambians are now able to experience peace and see development under the UPND.
He said Zambia’s economy has for the past 10 years been faced with challenges including the mining sector which are now being resolved.
Mr. KABUSWE urged all mining investors to be serious with their investments because government is in a hurry to develop the country.
Meanwhile, British High Commissioner to Zambia NICHOLAS WOOLLEY expressed delight with the strides made by the mine so far.
Mr. WOOLLEY said Moxico will invest a further One hundred million dollars bringing the firm’s cumulative investment to 180-million dollars.
He said Zambia has attracted significant investments from Britain with over 1-billion pounds by that country’s companies in green investments.
The British Envoy noted that the progress made at Mimbula is owing to close ties between government and the British government.
And, Chingola Member of Parliament CHIPOKA MULENGA said the mine has come with a speed of light implementing various projects and created decent jobs beyond Chingola.
He however asked Mimbula Minerals to give priority to Chingola residents when employing before looking elsewhere.
Mr. MULENGA said prioritizing locals for skills will promote ownership.
MEANWHILE, Mine Workers Union of Zambia -MUZ- President, JOSEPH CHEWE said Mimbula has given workers in Chingola an opportunity to work.
Mr. CHEWE said the workers are geared to put in their best but called for engagement of all workers decent jobs and salaries that will push them to work hard and look after their families.
And Mimbula Chief Executive Officer, ALLAN DAVIES said the company has already engaged about 9-hundred employees within 14 months of operations.
He thanked government for its continued support to the mine saying the firm now plans expansion in its operations at a new site.
This article originally appeared on ZNBC
Zambia Investor Briefing: February 2023
ZAMBIA INVESTOR BRIEFING
February 2023
OVERVIEW
Minister of Health Sylvia Masebo has identified Zambia’s pharmaceutical sector as a priority industry for foreign direct investment. It will form a key part of the government’s post-pandemic approach to improving health security, she said, and the drive to promote private sector driven socio-economic development. Her comment comes as Lusaka readies itself for the Zambia-EU Pharmaceutical Manufacturing Forum, designed to foster greater collaboration between Zambia’s pharmaceutical industry and international pharmaceutical giants. Other participants will include those from the finance, textiles and insurance industries.
President Hilchilema travelled to Addis Ababa, Ethiopia, to take part in the 36th Ordinary Session of the Assembly of the African Union. While there, the president held bilaterals with a number of heads of state, including President Samia Suluhu Hassan of Tanzania, and the DRC’s Félix Tshisekedi. Presidents Hilchilema and Hassan agreed to fast-track the upgrade of the TAZAMA pipeline, which carries crude oil between Tanzania and Zambia, while his meeting with Tshisekedi centred on solving issues at the Kasumbalesa border crossing.
US Under Secretary for International Trade, Marisa Lago, met with President Hichilema in Lusaka. The pair discussed the Commercial Memorandum of Understanding (MoU) that “will leverage our shared interests into closer business linkages between our two nations and drive inclusive economic growth”, the president wrote. Lago’s visit came off the back of the Africa Leadership Summit, held in December in Washington, D.C., when Hilchilema met with both US Secretary of Commerce, Gina Raimundo and President Joe Biden.
Blue Carbon signed an MoU with the Government of Zambia which will kickstart carbon removal projects in Zambia’s forestry sector. The Dubai-based company supports such projects under Article 6 of the Paris Agreement. Both President Hichilema and Blue Carbon Chairman Sheikh Ahmed Dalmook Al Maktoum were present at the signing in Lusaka. Al Maktoum said “We are confident that our robust decarbonisation model will enable the Zambian government to preserve its forest resources and reduce greenhouse gas emissions efficiently”.
Invest Africa are to lead a delegation for an Investment and Trade Mission to Lusaka in March. The Mission aims to provide a platform for international and regional investors to engage with senior government officials, in addition to key investment and trade institutions, such as the Zambia Development Agency. The delegation will hold meetings with President Hichilema, the Central Bank Reserve Governor, and the Minister of Industry, Trade and Commerce, amongst others.
The Board of Directors of the Zambia Development Agency has appointed Albert Halwampa as the New Director General. The ZDA said “Mr Halwampa brings with him a wealth of knowledge and strategic experience in promoting trade, investment and policy development in regional and international markets. There is no doubt his experience will bring about the desired change and contribution to the increase in investments in Zambia”.
Foreign Direct Investment
February saw a number of significant developments with regards to foreign direct investment (FDI) in Zambia. High-level meetings took place between President Hichilema and UAE-based Blue Carbon, representatives from Citi Bank and Standard Bank, in addition to discussions with US Under Secretary for International Trade, Marisa Lago.
State House also played host to a delegation from the Africa Finance Corporation, meeting with its President and CEO Samaila Dalhat Zubairu to how Zambia can best utilise public-private partnerships to accelerate economic development.
All of this comes ahead of the Zambia-EU Pharmaceutical Manufacturing Forum, which will be held from 01 - 03 March 2023 in Lusaka. Health Minister Sylvia Masebo told the media that nine Zambian pharmaceutical firms have confirmed their plans to attend, alongside 28 international pharmaceutical companies, under the theme “Strengthening Healthcare Through Local Pharmaceutical Manufacturing.” “The need to promote FDI and other forms of private-public partnerships has already been identified as key to the ambition”, she added.
A delegation from Invest Africa, a business and investment platform that aims to provide its members with information and exposure to business opportunities to invest in the continent, will travel to Lusaka in March. Limited spaces are still available for international delegates to join the Mission. If you are interested, please contact farha.musa@investafrica.com.
Regional Partners
The 36th Ordinary Session of the Assembly of the African Union was held in Addis Ababa, which saw President Azali Assoumani of Comoros elected as New Chairperson for 2023, taking over from Senegal’s President Macky Sall.
President Hichilema met with several leaders on the sidelines of the summit, including Tanzania’s President Suluhu Hassan. The pair agreed to expedite the upgrade of the 50 year old TAZAMA oil pipeline that runs from the Tanzanian port city of Dar es Salaam to Ndola in Zambia. Energy Minister Peter Kapala said the agreement would help help the cost of petrol affordable for citizens and businesses alike.
Both Hichilema and his Congolese counterpart Félix Tshisekedi have vowed to solve the issues that persist at the Kasumbalesa border crossing between their two countries. A huge increase in the demand for copper and cobalt globally, key components in electric batteries, has seen long queues form on both sides of the border. Zambia’s Transport and Logistics Minister Frank Tayali has said that poor customs services are also partly to blame.
LATEST TRENDS
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1 USD = 19.95 ZMW 30 day average = 19.349 Volatility (last 30 days) = 0.5%
OTHER NEWS
Angola, Zambia and DRC take step towards creating trade corridor, 01.02.23, Business Live
Letter: China is the key to unlock Zambia debt restructuring, 06.02.23, Financial Times
Zambian finance minister criticises creditor delays in debt restructuring, 13.02.23, Financial Times
World’s largest man-made dam weighs using floating solar panels, 16.02.23, Bloomberg
Zambia secures funds for climate adaptation with Commonwealth support, 21.02.23, The Commonwealth
Zambia inflation accelerates as underlying price pressures build, 23.02.23, Bloomberg
Zambia’s Moping halts mine shaft operations after worker dies, 28.02.23, Reuters
UPCOMING EVENTS
01.03.23 - 03.03.23
Zambia-EU Pharmaceutical Manufacturing Forum
Lusaka, Zambia
20.03.23 - 23.03.23
Investor Mission to Zambia, Lusaka
CONTACT US
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Invest Africa Leads Trade Mission To Zambia; Meeting With President Hichilema
On the back of past successful investor and trade missions to Tanzania, Ethiopia and Angola, Invest Africa are leading a delegation for an Investment and Trade Mission to Lusaka, Zambia from 20 to 23 March 2023.
The main objective of the Mission is to provide a platform for international and regional investors to meet and engage with senior Zambian government officials, as well as key Zambian investment and trade institutions including the Zambia Development Agency (ZDA) and the Public-Private Dialogue Forum. Meetings will also be held with private sector organisations to promote and build connections for potential investment and trade opportunities.
Invest Africa has assembled a comprehensive agenda to make the trip as valuable as possible. The delegation has been granted an audience with Zambian President, His Excellency Hakainde Hichilema, as well as meetings with with the Central Bank Reserve Governor, the Minister of Industry, Trade and Commerce, the Zambian Development Agency, and other ministries.
The delegation will look to gain more detailed insights into opportunities within Zambia’s key sectors, including agriculture and agribusiness; infrastructure development; mining and minerals; energy and renewables; and travel and tourism. The delegation will also learn about Zambia’s services sector – including ICT, legal and financial services – as well as manufacturing firms, such as engineering, textiles, building materials, food processing, chemicals, and pharmaceuticals.
Zambia’s business environment is going from strength to strength, as investors continue to express renewed confidence in the government’s business-friendly policy reforms. In 2022, the country received a record $8.59 billion in foreign investments and is set to become an even more attractive investment destination in 2023.
Invest Africa CEO, Karen Taylor said, “This Mission to Zambia comes at the right time as we see the government’s efforts to diversify the economy by stimulating private sector growth which is vital to sustained economic growth.”
There are limited spaces still available for international delegates to join this Mission and interested organisations can contact Mission organiser, Farha Musa at Invest Africa.
About Invest Africa
Invest Africa is Africa’s leading international business and investment development platform. With over sixty years of history, our network is made up of more than 400 global organisations, private investors, fund managers, family offices, policy makers and entrepreneurs. Together they share a desire to build opportunity across the African continent. As the trusted entry point into Africa, we support and connect business and investment through a unique range of services and events; from world-leading business conferences and bespoke trade and investment missions to sector specialist event programmes and consultancy projects. Our team comprises leading specialists in international trade and investment promotion, public affairs, conferences and events and business strategy.
Mission Contacts:
Farha Musa – farha.musa@investafrica.com Charlotte Kemp – charlotte.kemp@investafrica.com
Media Contacts:
Choolwe Chibomba – choolwe@zambiaisback.com
UK Energy Sector Delegation Formalises $2 Billion Investment Package
After 15 months of agreements, talks and negotiations that began at COP26 in November 2021, Zambia’s President Hakainde Hichilema and a Nicholas Woolley-led UK energy commission have finalised a US $2 billion green energy joint ventures agreement.
Zambian and UK energy delegates outside State House following the agreement. (@HHichilema)
Back in 2021, Foreign Minister Stanley Kakubo and UK Minister for Africa signed a landmark partnership aimed at driving sustainable economic growth that conformed to the environmentally friendly principles of Glasgow’s COP26 climate summit.
Signed in London, the Green Growth Compact outlined expectations of billions of pounds of investments, doubled trade volume between the UK and Zambia, and £100 million ($135 million) of financial resources as part of Zambia’s then-blossoming Small and Medium Enterprises (SMEs) support initiative.
At that time, Vicky Ford’s comments on the deal included an expectation of final British investment induced by the Compact, announcing that “The Green Growth Compact is a landmark agreement that will benefit the UK and Zambia by boosting UK investment in Zambia by up to £1 billion, creating thousands of jobs and supporting green energy production”. The deal signed yesterday has doubled that figure, marking yet another milestone in negotiations to secure a better future for Zambia.
Hon. Stanley Kakubo and Vicky Ford celebrating the Green Growth Compact in London. (future Net Zero)
Nicholas Woolley’s role in Zambia’s green transition is not to be underestimated. The British High Commissioner to Zambia identified at the time of the Compact’s signing that its primary significance was the foundation it provided for “stronger trade and investment […] based on sustainability, mutual prosperity and creating opportunities for business and communities in both our countries”.
Fast forward 15 months, and Mr. Woolley continues to broker UK-Zambia energy agreements to the benefit of both nations, the latest of which is the $2 billion package. The template of the 2021 Compact continues to be used to great effect by UPND and Mr. Kakubo, with both the UK and Zambia’s other investment partner nations.
Mr. Woolley told ZNBC News in a January 11 interview that seven companies were conducting feasibility studies and applying for regulatory approvals. All seven had approved and outlined deals to bring solar and wind energy projects to Zambia to add 2,000 megawatts to the ZESCO grid, and had a 2-5 year completion timeline. The British power companies in question were Hive Green, Western Power, Buffalo Energy, Africa GreenCo, First Quantum Minerals Solar Energy, Vitalite Solar and SolarAid.
Since Hakainde Hichilema’s election in August 2021, First Quantum Minerals in particular has displayed enormous fiscal confidence in Zambia’s economic resurgence. The company operates two mines in Zambia, Sentinel and Kansanshi, the latter of which they invested $1.25 billion in May 2022. First Quantum Minerals has also played an important role in Zambia’s drive to increase nickel production, investing $100 million into its efforts to produce 30,000 annual tonnes of nickel concentrate.
The FQM refinery plant at Kansanshi. (First Quantum Minerals Ltd.)
First Quantum and its six compatriot firms have all passed their feasibility and regulatory assessments, it seems, since the announced figure matches that proposed in January. The finer details are expected to be announced in the coming weeks.
The deal’s announcement comes just over a month after ZESCO signed an agreement with UAE renewable energy firm Masdar for solar projects amounting to $2 billion. That project immediately triggered the installation of a 500 megawatt solar plant, with other planned projects forecasted to generate an additional 2,000 megawatts.
The combined deals will furnish Zambia with 4,000 megawatts of clean, renewable energy – all of which will be non-hydro. Hydroelectric power currently accounts for 85%, or 2400 megawatts, of Zambia’s 2,800 megawatt installed electricity generation capacity.
With decreasing water levels, unpredictable rain seasons and increasingly frequent floods, hydroelectric power is becoming a less reliable energy source, and record low water volumes in Zambia’s Kariba dam in 2022 were the primary cause of recent load-shedding blackouts.
The two deals will significantly totally eliminate Zambian dependency on hydroelectric power once complete, opening the door for renovation works on the 3 major hydroelectric dams that are 49, 50 and 64 years old. The Kariba Dam, Zambia’s largest, was chronically under-maintained over the course of former President Lungu’s administration, to the point where the world-famous New Yorker news magazine published a two-page spread that likened the risk of the dam’s collapse to “the dam industry’s Chernobyl”.
The Kariba Dam in 2016, around the time concern was raised about its condition. (Daily Maverick)
The completed solar farms will represent a 142% increase in Zambia’s generation capacity, guaranteeing constant power now and in the future as Zambia grows, and ensuring that rural and isolated communities will also have access to electricity. It is expected that these packages will also include the funding necessary to introduce the infrastructure needed for effective energy supply, which will have major secondary transport benefits for Zambian citizens living in areas near the solar farms.
Hakainde Hichilema has placed great stress on empowering SMEs to drive equitable Zambian growth, and has recognised the role smallholding farmers can play in Zambian agricultural production to boost the economy and fight African food insecurity.
During her visit to Zambia, U.S. Treasury Secretary Janet Yellen stressed the pivotal impact Zambian smallholding farmers can have on a food chain under constant stress thanks to Russia’s invasion of Ukraine, describing Africa as having “the potential not only to feed itself but also to help feed the world – if the right steps are taken”. With each new deal, investment agreement and public project announced, President Hichilema and his cabinet continue to take those very steps towards a future of Zambian prosperity.
Charter Cities Institute Launches Office in Zambia
Last week, the celebrated Charter Cities Institute (CCI) marked its anniversary in Zambia by opening a permanent Lusaka Office on Haile Selassie Avenue. Known for innovating urbanisation projects to improve average income, quality of living and productivity, as its motto suggests, “Harnessing Urbanisation for Human Prosperity”, CCI has decided that recent signs of Zambian financial recovery and industrial growth mean that the time is right to bring CCI thinking to Zambia.
CCI is a non-profit organisation that promotes the creation of charter cities. Charter cities are new cities granted special jurisdiction, which gives local authorities the ability to implement practices and commercial regulations to drive growth. CCI brings high-functioning businesspeople together to provide the necessary assistance to those planning charter cities to optimise their performance.
Charter cities are known for creating highly competitive business environments that attract investment, create jobs and improve the lives of millions, making them one of the best methods of rapid urbanisation for driving widespread economic growth. Examples of charter cities include: Shenzen, whose average yearly income grew from $137 USD in 1980 to $13,997 USD in 2017; Singapore, whose GDP per capita was $428 USD in 1960 and reached $64,582 USD in 2018; Hong Kong, with a GDP per capita of $5,700 USD in 1980 and $46,193 USD in 2018; Dubai, whose total UAE GDP was $75 billion USD in 1980 and reached $689 billion USD in 2017.
CCI’s Lusaka Team, pictured at the Lusaka office launch party. (Lusaka Times)
CCI Zambia launched in 2021, and has worked with President Hakainde Hichilema’s New Dawn government with extraordinary success. Their charter cities movement is underway in Zambia, with stakeholders and the Zambian government collaborating to foster an environment for charter cities to prosper. The Multi-Facility Economic Zone program has been key to creating such an environment. President Hichilema and his party have demonstrated their enthusiasm to improve the lives of Zambia’s people; CCI has brought think tanks, associations and global businesses to the table to realise this aim.
Honoured with an invitation to the high-profile event on 13 February was Zambia is Back’s spokesperson Choolwe Chimboba met with various international corporations. Among the many international guests and businesspeople present was Russian-Canadian computer genius, entrepreneur and Ethereum co-founder Vitalik Buterin. The two networked, discussing Zambia’s bright future.
Vitalik Buterin and Choolwe Chimboba at the party.
The event opened with welcome remarks from Special Assistant to the President Jito Kayumba, Kurtis Lockhart, the global Executive Director of CCI, and Mwanda Phiri-Mwewa, the Africa Lead for CCI. Zambia’s Permanent Secretary for Administration Maambo Hamaundu then discussed Zambia’s role in the CCI joint program.
Mr. Buterin was among the four CCI ambassadors who gave Keynote speeches – joining him were Mwiya Musokotwane, CEO and Founder of Thebe Investment Management limited, Daniel Yu, CEO and Founder of tech firm Wasoko, and Guest of Honour Chipoka Mulenga, Zambia’s Minister of Commerce, Trade and Industry. The four speakers represent how CCI can help shape Zambia’s future, through construction of infrastructure, tech-based business improvement, globalised business models through internet-powered finance and responsible government fiscal policy at an international, national and local scale.
The event demonstrated the great future CCI’s contribution to Zambian policy will have – the speeches given were infused with professional credibility, diligence and robust optimism for Zambian growth. The coming together of Zambian businesspeople and pioneers, global-level drivers of industry and CCI’s roster of changemakers based at the CCI Lusaka Urban Lab offered an insight into how UPND’s foray into international investment and development has already begun to rejuvenate Zambia into a nation looking ahead to a better future.
Zambia shines at African Mining Indaba
Zambia demonstrated its return to industrial strength at this year’s African Mining Indaba, reminding Africa of the resources it has to offer amid a surge of foreign investment deals.
The reputation of Zambian mining declined under the leadership of former President Edgar Lungu, thanks to uncertainty about taxation, resource nationalism and corruption widely believed to be endemic. Zambia did not receive a spotlight at the Indabas of those years.
Since his UPND Party’s election to power in August 2021, President Hakainde Hichilema has done his utmost in his 18 months in charge to kickstart ailing industry in Zambia. Mining has been re-evaluated by his cabinet, and is now a crown jewel in the reversal of Zambia’s previously waning fortunes.
As a successful businessman before entering the political scene, President Hichilema has recognised the immediate value of foreign investment in bringing expertise, economic growth and improved infrastructure to the people of Zambia. Previously-unseen levels of interest in Zambian mining opportunities at the 2022 and 2023 Indabas are indicators of Zambia’s upward trajectory.
Leaves of Zambian copper awaiting transport. (Mining for Zambia)
Speaking on Zambia’s global image, Neal Froneman, CEO of Sibanye-Stillwater, a precious metals multinational giant, commented, “Zambia is looking very good […] We like Zambia as a destination. There are some great copper assets in Zambia.” When asked about Mr. Hichilema’s role in Zambia’s new look, he added, “President Hichilema is a professional; he’s doing exactly the right things. His focus is strongly focused on commercial realities and is just a breath of fresh air”.
Froneman’s mention of copper is astute. In the transition to greener energy, copper is a critical metal. Zambia was the second largest African producer of copper in 2021, and President Hichilema has seized this opportunity to propel Zambian development with both hands. At last year’s Indaba, Zambia made headlines when the copper producer First Quantum metals announced the outright largest investment in Zambia in a decade, in the form of two projects totalling to $1.35 billion.
Other mining directors at the Indaba acknowledged the role copper has to play in Zambia’s growing prosperity, including Modern Corporate Solutions’ director, Peter Major: “The people there really want mining, the government is quite accessible, there’s no BEE, the legislation is clear, and they have a proper mining cadastre”.
Zambia’s mining cadastre has been a driving factor in the sector’s growth. The online portal offers information freely accessible to the public about which companies have mining permits in which regions, and is considered part of Zambia’s campaign for an informed public united against corruption.
One of the many maps available on the Zambian mining cadastre portal. (MMMD)
Zambia’s growing mining relations with the DRC are also an indicator of UPND’s ambitions. In 2021, the DRC was the world’s largest cobalt producer, mining more than 70% of the world’s cobalt, and it consistently tops the African copper mining table. Marna Cloete, president at Ivanhoe Mines, which has assets in the DRC, was impressed by the improvement in relations: “The president comes from a business background […] He’s actively pursuing investment. He’s a very dynamic person. We do engage with Zambia on infrastructure because we share a border and we have seen vast improvement in terms of relations with the Zambian government”.
Ivanhoe is currently in negotiations to establish a border crossing for mining products. In January 2023, the United States announced a Memorandum of Understanding between Zambia and the DRC on electric vehicle battery value chains. The U.S. Department of State described the memorandum as inviting “open and transparent investment to build value-added and sustainable industry in Africa and creating a just energy transition for workers and local communities”. The U.S.’s role in the partnership will be to offer technical knowledge, financing and private sector investment opportunities.
The Memorandum of Understanding was announced one month after the U.S.-Africa Leaders Summit. While in Washington DC, President Hichilema presented his ‘Green Energy Mining Deal’ lecture, in which he announced that Zambia would reset its relationship with China and the USA. By the end of the trip, Zambia had secured its first major direct American investment in over three decades.
President Hichilema’s official photograph is taken with President Biden and the First Lady after the Summit. (ZNBC)
Present at the Indaba was Paul Kabuswe, the Minister of Mines and Minerals Development. By the conclusion of the Indaba, Mr. Kabuswe was pleased to unveil a timeline for the Mopani Copper Mines. 10 suitors for the mine and smelter complex had come forward with investment plans, one of whom would be selected for partnership at Mopani by the end of March. The Mopani investment project is proof of Zambia’s intent to mine three million tonnes of copper annually by 2032.
Copper-rich Zambia is a breath of fresh air for foreign investors
By Ed Stoddard
A recurring theme at the Investing in African Mining Indaba is the rise and fall of countries as investment destinations. The annual conference is, in some ways, like a beauty contest for capital. At this year’s Indaba, Zambia emerged as one of the winners.
Zambian President Hakainde Hichilema, a former businessperson, has been attempting to woo foreign investors since he came to power in August 2021. And they have certainly been charmed.
“Zambia is looking very good. President Hichilema is a professional; he’s doing exactly the right things. His focus is strongly focused on commercial realities and [he] is just a breath of fresh air,” Sibanye-Stillwater CEO Neal Froneman told Business Maverick in an interview.
“We like Zambia as a destination. There are some great copper assets in Zambia,” Froneman said.
Froneman would not specifically say if Sibanye was planning on acquiring a copper asset in Zambia, but the company is clearly taking a hard look there.
Froneman, who has transformed Sibanye from a Gold Fields’ spin-off focused on conventional gold mines in South Africa into a diversified metals producer, is a deal-maker of note.
Copper fits perfectly with its strategy of moving into the “green” or “critical” metals seen as vital to the global clean energy transition.
“Some of the assets are deep and there is not a lot of companies with deep underground mining experience. You have projects in liquidation and companies that hold large debt positions. So we have a skill set required to unlock value from those assets,” Froneman said.
On the catwalk
Other investors and executives also applauded Zambia’s performance on the catwalk.
“The people there really want mining, the government is quite accessible, there’s no BEE, the legislation is clear, and they have a proper mining cadastre,” said Peter Major, director of mining at Modern Corporate Solutions. Major is in the process of raising funds for a zinc project in central Zambia.
Zambia’s mining cadastre, like Botswana’s, is impressive, transparently providing investors and the public with information about which companies have mining rights and permits, and where.
It’s what a cadastre is supposed to do, and South Africa’s lack of one remains a major deterrent to investment in its mining sector. But President Cyril Ramaphosa did tell the Indaba on Tuesday, 7 February, that South Africa was on track to procure one.
Marna Cloete, president at Ivanhoe Mines, also said Zambia’s star was rising. Ivanhoe does not have assets there, but it operates across the border in the DRC, which is also rich in copper.
“The president [of Zambia] comes from a business background… He’s actively pursuing investment. He’s a very dynamic person. We do engage with Zambia on infrastructure because we share a border and we have seen vast improvement in terms of engagement with the Zambian government,” she said.
These include negotiations for a border crossing to facilitate the movement of Ivanhoe’s products.
Valuable commodities
At past Indabas, Zambia’s light has shone less brightly. A few years ago, there were uncertainties about taxes and concerns about resource nationalism. Under Edgar Lungu, Hichilema’s predecessor, corruption was widely perceived to have flourished and the mining sector was a frequent target of political wrath.
And, of course, decades ago there was the whole debacle around nationalisation under Kenneth Kuanda.
Zambia is studded with copper and it also has cobalt, a crucial battery metal. It also has gold, nickel and manganese among other valuable commodities.
The interest in Zambia displayed by players in the mining sector this time round builds on Hichilema’s performance at the Indaba in May of last year, when copper producer First Quantum Minerals announced the largest investment in Zambia in a decade: $1.35-billion in two new projects.
Several attendees at this year’s Indaba spoke glowingly about how Zambia impressed in May of last year, an indication that the narrative that got rolling then remains in play. In South Africa, the “Ramaphoria” that was still in the air at the 2018 Indaba quickly faded.
Land-locked and tropical, it faces serious challenges to development. But the current perception is that Hichilema is determined to unlock the country’s resource value through foreign investment.
If an executive such as Froneman is looking, you are probably doing something right on that front.
This is an article taken from the Daily Maverick. All rights to this article and its images belong to the Daily Maverick.
Zambia's mining minister expects Mopani Copper Mines deal by end-March
CAPE TOWN, Feb 6 (Reuters) - Mopani Copper Mines will secure a new investor by the end of this quarter, Zambia's mines minister Paul Kabuswe said on Monday, calling the complex owned by state mining investment firm ZCCM-IH a "critical asset" for the country's copperbelt.
There are 10 suitors for the mine and smelter complex, including South Africa-listed mining firm Sibanye-Stillwater and "one or two" Chinese mining firms, Kabuswe said in an interview on the sidelines of the Mining Indaba in Cape Town.
Sibanye CEO Neal Froneman in October told Reuters the company was interested in Mopani.
"There is interest from all over, including the Arab world," Kabuswe said, declining to name any of the other interested parties.
Asked about the competition for African metals and minerals pitting the United States and Europe against China, Kabuswe said Zambia did not differentiate between investors provided they brought value into the country.
"We are dealing with the Arab world, we are dealing with the U.S., we are dealing with China, we are not biased towards anyone," Kabuswe said. "We are friendly to everybody."
Zambia is also aiming for an agreement with Konkola Copper Mines owner Vedanta Resources by the end of the first quarter, Kabuswe said. Zambia last year decided to seek an out-of-court settlement with Vedanta after a lengthy dispute over KCM.
Increasing Zambia's copper production is necessary to reduce the country's debt burden, Kabuswe said, as growth in the mining industry will trigger investment in infrastructure and other sectors.
Zambia has set a goal of increasing copper production to 3 million tonnes a year by 2032. The country is struggling to cut debt after becoming the continent's first COVID-era default in 2020.
Zambia Investor Briefing January 2023
ZAMBIA INVESTOR BRIEFING
January 2023
OVERVIEW
US Treasury Secretary Janet Yellen visited Zambia as part of a three-country visit to Africa. She reiterated the importance of restructuring the country’s debt, something she remained optimistic about following talks with the Chinese in Zurich the week before. Yellen further encouraged President Hichilema to continue the fight against corruption. “I would say the work isn’t done, but there clearly has been an important focus on it”, she said. Talks also touched on food and health security.
State House played host to the International Monetary Fund (IMF)’s Managing Director, Kristalina Georgieva, who met with President Hichilema, Finance Minister Situmbeko Musokotwane and central bank governor Denny Kalyalya, amongst others. The visit centred on debt restructuring, with both sides urging the country’s creditors to ensure an agreement is in place as soon as possible. Georgieva praised the New Dawn government’s efforts “to improve the use of public resources” and “tackle corruption” which, she said, would “create a better environment for investors and businesses”.
A Zambian government delegation, headed by the President, attended Abu Dhabi Sustainability Week, an antecedent to COP28, which will be hosted in the Emirati capital between November and December 2023. The summit yielded a number of agreements, including a Memorandum of Understanding (MoU) and Joint Development Agreement (JDA), signed with the UAE, aimed at facilitating renewable energy investment. Zambia’s state-backed energy company, ZESCO, will form a joint venture with MASDAR, a UAE-government owned renewable energy company, that will develop and deploy solar projects that are estimated to generate an additional 2000 megawatts of energy.
President Hilchilema attended the ‘Dakar 2 Feed Africa: Food Sovereignty and Resilience’ summit in Senegal. Held in collaboration with the African Development Bank and the International Fund for Agricultural Research, the summit convened heads of state from across the continent to mobilise and align government resources, development partners and private sector financing to “unleash Africa’s food production potential”.
Angolan President Joāo Lourenço welcomed President Hichilema for a three-day state visit to discuss trade, investment, energy and infrastructure. In addition to signing an MoU, the two countries agreed to resume direct flights between Lusaka and Luanda. The President also addressed Angola’s National Assembly on the importance of good governance and democracy.
Debt Management
Visits from both the IMF’s Managing Director and US Treasury Secretary this month highlighted the support the Zambian government enjoys from both the international and multilateral communities on to the question of debt restructuring.
Both the IMF’s Georgieva and the US’s Yellen urged creditors to quickly resolve negotiations that have until now, according to Zambian Finance Minister Musokotwane, moved too slowly with a still uncertain outcome. Yellen singled out China as being a “barrier” to ending the debt crisis.
Without restructuring Zambia cannot access a USD 1.3 billion bailout form the IMF, which would give a much-needed boost to the economy. It is hoped that the two high-profile visits will bring renewed attention to the issue of debt management.
Foreign Direct Investment
The Zambian Development Agency (ZDA) registered a more than 150% increase in the number of investment ventures in 2022 compared with 2021. Last year saw 351 registered ventures, yielding an investment of USD 8.59 billion, compared with 255 the previous year, an increase of close to 158%.
According to Albert Halwampa, the ZDA’s acting director general, this translates to just under 75,000 new jobs in critical sectors such as manufacturing, energy, mining, transport, construction and agriculture.
A ZDA report indicted that the country’s improved macroeconomic environment was underpinned by an increase in investor confidence, “triggered by sound economic policies by the government including stabilisation of the macroeconomic fundamentals, implementation of fiscal measures and reaching the IMF Staff Level Agreement on an extended credit facility arrangement with Zambia”.
Agricultural and Mining Developments
Following the December announcement from KoBold, a consortium backed by tech giants Jeff Bezos, Bill Gates and Richard Branson, stating that they will invest in Zambia’s mines, the country’s agriculture sector is too enjoying an economic boon.
Munkotachi, an SME based in the Chongwe district of Lusaka province, has received certification from GlobalG.A.P. - a European retailers standard for good agricultural practices - which will allow its avocados and avocado oils to be sold in the European Union.
Managing Director Christopher Lesa has also said that that the company hopes to expand its poultry farming operation, with the aim of developing more than 90 cooperatives, each with at least 20 members. “The government is trying to support SMEs in so many ways”, he said, “so that people out there can benefit and improve their lives”.
Munkotachi is hoping to plant two million avocado trees on 5,000 hectares across four regions of Zambia, and expects to employ more than 30,000 small-scale farmers.
Load Shedding
The government-backed energy provider, ZESCO, has extended electricity rationing to mining companies following a drop off in water levels at Lake Kariba. According to the Zambezi Water Authority, which manages the lake’s dam, water levels were down to 1.66% of usable storage for both the Kariba North Bank Power Station and the Kariba South Bank Power Station, found on the Zimbabwean side of the lake.
ZESCO had already been forced to reduce electricity flows to domestic customers as the low water levels threatened power generation.
The utility’s chairman, Vickson Ncube, has said that power rationing was expected to be reduced by the middle of next month as water levels recovered. Full generation is likely to resume in March.
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OTHER NEWS
Zambia: Abolition of the death penalty ‘a historic milestone’, 06.01.23, United Nations
Climate change action could set off a copper mining boom: How Zambia can make the most of it, 08.01.23, The Conversation
Zambia, UAE to develop $2 billion solar projects, 17.01.23, Reuters
Zambia joins Ghana in its quest to restructure its debt under the G20 Common Framework, 23.01.23, Business Insider Africa
Janet Yellen pushes China on debt relief for Zambia, 23.01.23, The Wall Street Journal
Yellen visits Zambian farm to showcase Africa’s ag potential, 26.01.23, Associated Press
Zesco seeks liquidation of Zambia Electrometer Ltd over unpaid debt, 30.01.23, Diggers
UPCOMING EVENTS
06.02.23 - 09.02.23
Cape Town, SA
20.03.23 - 23.03.23
Investor Mission to Zambia, Lusaka
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Copper-copious Zambia stepping up agricultural prowess, embarking on robust outreach
JOHANNESBURG (miningweekly.com) – Mining and agriculture are two key sectors of the Zambian economy that are attracting foreign direct investment, which rose 158% to $8.5-billion in 2022, creating 74 000 jobs.
The latest company to announce that it will be developing a new copper mine in Zambia is one linked to Microsoft's Bill Gates, Amazon's Jeff Bezos and Virgin's Richard Branson, while on the agricultural front, Zambia has embarked on a robust agriculture outreach throughout the country, Munkotachi Investments MD Christopher Lesa outlined in a Zoom interview.
Munkotachi, a small and medium-sized enterprise (SME) in the Chongwe district of Lusaka province, will this month begin reaping the rewards of agricultural exportation from Zambia, facilitated by a GLOBALG.A.P. certificate that opens the door for its hass avocados and avocado oils to be sold into the European Union and other overseas markets. Munkotachi is also intent on expanding its poultry farms, which produce 350 trays of eggs a day.
Being targeted is the development of more than 90 agricultural cooperatives, each with a minimum of 20 members.
“The government is trying to support SMEs in so many ways, as well as cooperatives, so that people out there can benefit and improve their livelihoods,” said Lesa, who is intent on establishing what he refers to as an avocado belt.
Interestingly, on the copper front, the Gates-Bezos-Branson-linked KoBold Metals uses artificial intelligence and machine learning to identify deposits.
KoBold is advancing the Mingomba copper project, a joint venture with Australian private equity firm EMR Capital and Zambia's State-backed mining company ZCCM-IH. The investment is seen as a win for Zambia President Hakainde Hichilema, who is targeting the trebling of Zambia’s yearly copper output.
An example of recent measures to make Zambia more competitive is the removal of duties on imported capital equipment for mining.
This week Hichilema won applause from visiting US Treasury Secretary Janet Yellen, who emphasised the importance of a business environment that is free of corruption, resplendent with human rights and not weighed down by debt. Yellen has asked for China’s cooperation in lowering Zambia’s external debt, with Zambia reportedly owing China close to $6-billion.
Hichilema’s government has expressed commitment to private sector-led economic growth, buttressed by ongoing public–private dialogue.
Munkotachi, meanwhile, expects to harvest three to four tons of hass avocado this year, and to double production on a yearly basis thereafter.
It adds value to community and cooperative agricultural production by seeing to packaging and making the exportation arrangements.
Within its $600 000 asset base, Munkotachi is planning to plant two-million hass avocado trees on 5 000 ha in four regions of Zambia and expects to employ more than 30 000 small scale farmers in conjunction with Schweizer Agriculture, represented during the interview by its ebullient executive director, Joas Chihangu.
Financial assistance for SMEs is negotiable from institutions such as the Zambia Export Development Fund and National Savings and Credit Bank.
Agriculture and agribusiness have been contributing around 20% of Zambia’s gross domestic product in recent years and about 12% of the country’s national earnings.
This article was written by Martin Creamer, and appeared on Mining Weekly. All images are the property of Mining Weekly.