Zambia Airways Launches New Direct Flights from Lusaka to Johannesburg
Zambia Airways has announced the launch of new direct flights from Lusaka to Johannesburg, providing passengers with a convenient and reliable way to travel between the two cities. The service will commence operations on 1st June 2023 and will be operated with a modern and comfortable B737-700 aircraft, offering both Business class and Economy class.
The flight schedule has been designed to suit the needs of both business and leisure travelers, with a convenient early morning departure of 07:00hrs from Kenneth Kaunda International Airport in Lusaka. Zambia Airways is committed to providing its passengers with a safe and comfortable flying experience, with all flights operated in accordance with the highest safety standards. The airline’s experienced and friendly cabin crew will provide exceptional service to passengers on board.
“We are delighted to launch our new direct flights from Lusaka to Johannesburg,” said Abiy Asrat Jiru, CEO of Zambia Airways. “This is an exciting development for our airline and demonstrates our commitment to expanding our network and providing our passengers with more travel options within the region.”
With the launch of this new service, Zambia Airways will connect two of the region’s major cities and provide passengers with a convenient and affordable way to travel. The airline is committed to enhancing tourism, attracting investments, and creating job opportunities as the national carrier of Zambia.
Passengers can now book their flights on the Zambia Airways website or contact their local travel agent for more information.
Zambia is Ready for Business, Assures President Hichilema
Last week was a busy week for Zambia’s President Hakainde Hichilema and one that is already being considered a significant milestone in the country’s return to economic stability and prosperity. The President accepted an invitation to attend the coronation of King Charles III on Saturday 6th May and made the most of his trip by pursuing a week of business talks with delegates and investors across the UK and France.
President Hichilema announced on Friday evening that “After a week of over 20 successful meeting and engagements in England, Scotland and France, we have departed from London and are heading back home. We are positive that these engagements will yield positive growth and development for the Zambian people”.
President Hichilema, spotted at Heathrow airport on his way back to Lusaka.
On Tuesday, 9th May, President Hichilema met with the CEO of the UK government’s finance institution, British International Investment (BII), Nick O’Donohue. BII has to date invested more than $100 million in the Zambian economy, especially in the agricultural, energy and economic sectors. President Hichilema assured Mr O’Donohue that the BII’s “investments are safe”, and that Zambia was “looking for mutually beneficial partnerships based on common values and interests for the people of Zambia and the UK”.
On Wednesday, 10th May, President Hichilema held a meeting with Scotland’s First Minister, Humza Yousaf, to strengthen bilateral ties between the nations; HH was delighted to announce that Scotland had committed £1 million to the construction and maintenance of an academic economic research facility in Zambia.
That afternoon, Mr. Hichilema met with Emmanuel Macron, President of France, who sits on the board of the Paris Club of Creditors and the G20 intergovernmental forum. Also present at the meeting were Zambia’s Ministers of Foreign Affairs and International Cooperation, Stanley Kakubo, and of Finance and National Planning, Situmbeko Musokotwane, and some have speculated that some significant trade agreements were tabled at the meeting. All President Hichilema was willing to tell the press was that state debt relief and investment were discussed, and that the meeting was successful.
Presidents Macron and Hichilema before their meeting.
After a number of days of meeting with world leaders, CEOs of global financial institutions and economic experts, President Hichilema headed to the Zambia Investor Forum and Africa Debate in London on Wednesday and Thursday, both organised by Invest Africa, to speak with prospective investors. Mr Hichilema began his keynote speech on Wednesday by reiterating that his government was “committed to reforms – after all, we were elected on a ticket of change, to improve the lives and livelihoods of our people […] through the economy”.
President Hichilema delivering his keynote speech.
President Hichilema said that his government would pursue private sector partnerships to improve the economy and, therefore, the wellbeing of Zambia and its people. He said that the New Dawn government had shown “clear intent” in its meetings with the International Monetary Fund, a major U.S. financial agency and institution which has been pushing for creditors to agree to a framework for Zambia’s debt relief.
Finance Minister Situmbeko Musokotwane urged major investors and economic gurus present at the event to “push for this debt relief to take place”, as Zambia had met all requirements set out in the framework submitted by creditors. Zambian and Western financial figures alike have been frustrated by an apparent reluctance from Chinese creditors to agree to debt relief, though the state visit of President Hichilema and Ministers Musokotwane and Kukubo may prove to be what is needed to move talks forward.
Commerce, Trade and Industry Minister Mulenga announced that the government had set aside 800,000 hectares of land for agricultural development. Zambia enjoyed a record maize harvest last year and will be hoping to shatter that record after receiving assistance from a multi-partner group led by USAID (the United States Agency for International Development) that has put in place the necessary infrastructure to fight against transport issues that have historically contributed to 30% of Zambia’s post-harvest losses. Seven Smart Integrated District Aggregation Centres (SIDAC) have been built to process and store 100,000 metric tons of maize and other grains that would otherwise go to waste. National and international initiatives have also successfully raised awareness about crop diversity in the country, ensuring agricultural stability, sustainability and soil re-enrichment.
Minister Mulenga at the Zambia Investment Forum.
Foreign Affairs Minister Kakubo also reminded investors that Zambia’s vast quantities of minerals “are in the ground, and most of them are not yet explored”. The exploration that has been done shows that Zambia has 6% of the world’s copper reserves and huge deposits of cobalt: two metals that will continue to grow in value as the world transitions to green energy and electrically-powered vehicles.
Zambia is also known for its rich deposits of gold, iron, nickel, manganese and emeralds. The country is the world’s seventh-largest producer of copper, the sixth-largest producer of cobalt, and boasts the largest emerald ever mined. The New Dawn government has recognised the potential for its mineral reserves to transform the nation’s fortunes, making mining one of the primary sectors driving economic growth and benefitting people across the country. Kakubo stressed that he and other senior figures in the mining industry were looking for partnerships to aid exploration into mineral deposits and expansion of the country’s mines. In May 2022, First Quantum Minerals approved plans for a $1.25 billion expansion of the Kansanshi copper mine after “renewed confidence” in Zambia’s economic climate, and other major deals have followed since.
On Thursday, President Hichilema attended Invest Africa’s Africa Debate, an investment summit focused on the African continent whose themes included “the future of African trade, discussing and debating the continent’s trade profile”. Mr. Hichilema gave a keynote speech alongside Andrew Mitchell, the UK Minister of State in the Foreign, Commonwealth & Development Office (FCDO). With a touch of humour, Mr. Hichilema spoke of the importance of education, saying that without the education he had received, instead of being President of Zambia he would “be in the village with 8 or 10 wives”. He reminded the audience that waning diplomacy, the decline of democracy and insufficient protection of human rights were not good for business, highlighting the importance of “peace, security, stability”. He said it was the responsibility of those in power to create a landscape that invited investment and economic growth.
President Hichilema deep in conversation at the Africa Debate.
Karen Taylor, CEO of Invest Africa, who hosted the Investor Forum event, said that “since President Hichilema took office in August ’21, Zambia has undergone a significant shift, change and focus in its economic policies and its approach”. She said that Invest Africa would continue to market Zambia as an investment destination, and that the steps taken by the government had been a significant factor in many organisations’ decision to invest in Zambia. Ms. Taylor applauded the economic reforms the UPND government had made, insisting that this had created an “enabling environment” for foreign direct investment. Mr. Hichilema said after the event that he was “humbled by the huge interest” in Zambia’s economy, and the attendance of “hundreds of key business players from various economic sectors”.
During the Zambia Investor Forum, Zambian Ministers “held a series of meeting with key players in the agriculture, tourism, mining, infrastructure, and energy sectors”, negotiating “investment in our country that will create opportunities and jobs for our citizens,” said Mr. Hichilema. After the event, Mr. Hichilema met with UK Foreign Secretary, James Cleverly, who “expressed how impressed the UK is with Zambia’s development trajectory”, and “reaffirmed the UK government’s support for Africa to have a bigger voice at the G20”. President Hichilema said the meeting was productive, and promised that the government would “continue to encourage joint ventures to ensure that these investments benefit as many of our people as possible”.
President Hichilema with Minister Cleverly at their meeting.
Zambia Investor Briefing: April 2023
OVERVIEW
Mozambique’s President Nyusi played host to his Zambian counterpart Hakainde Hichilema for an official state visit. The aim of the trip was to further cement relations “through increased trade and investment flows” between the two countries, and included a visit to the Port of Beira. A Memorandum of Understanding (MoU) was signed between the neighbours aimed at bolstering collaboration in the area of press standards and freedoms. Issues of peace and security were also central to discussions.
Hichilema travelled to Victoria Falls, Zimbabwe, to take part in the ‘Transform Africa Summit’. The summit brought regional and global leaders together with international organisations from more than 100 countries under the theme ‘Connect, Innovate, Transform’, to collaborate on new ways of shaping, accelerating and sustaining Africa’s on-going digital revolution. Others in attendance included Rwanda’s Paul Kagame, Togo’s Faure Gnassingbé, Malawi’s Lazarus Chakwera and Secretary General of the AfCFTA Wamkele Mene.
A recently published report from Chatham House praised the New Dawn government’s “positive neutrality”, a delicate balancing act which, the report reads, has allowed it to secure investment “from a diverse mix of partners, including Brazil, India, Japan, Saudi Arabia, South Africa, Türkiye and the United Arab Emirates”. It also points to the fact that “Hichilema has resuscitated relations with Western partners, especially the US and UK, and maintained Zambia’s important relationships with China and the African continent”.
Mfikeyi Makayi was appointed CEO of KoBold Metals Zambia. The first female head of a major mining company in Zambia, she will oversee the development of the Mingomba mine in the Copperbelt. Formerly of First Quantum Minerals, Makayi underscored the sector’s importance to Zambia, saying it “is something that will drive our economy into the future”.
A groundbreaking ceremony took place for the construction of a new fertiliser and ammonia plant at the United Capital Fertiliser Zambia Company in Lusaka’s Chilanga district. The USD 600 million project will help bolster the country’s food security, and has come about, according to Hichilema, owing to the “enabling policy and business environment we wanted”.
President Hichilema hosted the Zambian-American business community at the Presidential Luncheon in Lusaka. The event was held under the banner of ‘Zambia’s Economic Revitalisation and Investment Opportunities’, and saw local banks and businesses looking for new investment opportunities in the country.
A statement released by President Hichilema confirmed that the Zambian government were working with “global tech companies” to secure digital literacy training for 10,000 teachers. “Education is the best investment we can make”, he reiterated.
Mozambique State Visit
President Hichilema undertook a three-day official state visit to neighbouring Mozambique, during which a number of important agreements were reached. One such commitment saw the Mozambican government announce plans to resume its supply of electricity to Zambia which, President Nyusi said, was now possible following upgrades to local infrastructure. Zambian Energy Minister Peter Kapala also spoke about plans for new gas and petroleum pipelines running from Mozambique to Zambia.
There were further calls from the Zambian delegation for more cross-border business, particularly in the mining, agriculture and tourism sectors, something President Hichilema was especially keen to see.
On the final day of the visit, the two heads-of-state undertook a visit to the Port of Beira, located in Mozambique’s commercial capital. Whilst there, they attended the Mozambique-Zambia Business Forum, which hosted an event titled “Accelerating Trade and Investment Between Mozambique and Zambia”. The forum was attended by 250 exhibitors representing various sectors from across the business community.
Transform Africa IT Summit
Six presidents were in attendance at the three-day summit, which took place in Victoria Falls, Zimbabwe, and saw the launch of the African Development and Smart Africa Alliance. The USD 1.5 million agreement is designed to enhance digital trade and e-commerce ecosystems across Africa.
The alliance will streamline e-payment policies across ten countries - Côte d’Ivoire, Benin, Ghana, Uganda, South Sudan, Zimbabwe, Republic of Congo, DR Congo, and Sao Tomé and Principe.
Hichilema gave an address at the summit, in which he implored nations to embrace new technologies “with the aim of increasing productivity and creating more jobs, particularly for our young people [on] the continent”.
“Harmonising our legislation and technological platforms in Africa is also crucial to facilitate market sharing and the movement of people and goods, while maintaining security”, he wrote in a statement. “Harmonised digital platforms will also make it easier for joint public-private ventures among our citizens to do business”.
Currency
1 USD = 17.86 ZMW 30 day average = 19.171 Volatility (last 30 days) = 1.3%
OTHER NEWS
Zambia reaps rewards of positive neutrality and economic diplomacy while others flounder, 02.04.23, Daily Maverick
China's loans to Africa worry World Bank President David Malpass, 02.04.23, BBC New
Zambia mining sector gets first female chief executive, 06.04.23, BBC News
Yellen to push for ‘speedy’ action on Zambia, Ghana debt relief, 11.04.23, Al Jazeera
Zambia sees scope for $12.8 billion debt-revamp deal next week, 12.04.23, Bloomberg
Zambia: UN experts concerned over delay in the country’s debt restructuring, 17.04.23, United Nations
Moxico provincial government to boost cooperation with Zambia, Angop, 24.04.23
Zambia has sent debt restructuring proposal to official creditors, Reuters, 24.04.23
UPCOMING EVENTS
10.05.23
London, UK
11.05.23
The Africa Debate: Catalysing the Continent’s Trade Potential
London,UK
14.05.23 - 16.05.23
Africa Trade and Investment Global Summit
Dubai, UAE
CONTACT US
If you would like to find out more or receive tailored briefings on specific sectors get in touch via info@zambiaisback.com. To stay up to date follow us on social media:
Facebook: @zambiaisback
Twitter: @ZambiaIsBack
Instagram: zambia_isback
Zambia’s GDP to Grow by 4.2% in 2023
Secretary to the Treasury, Felix Nkulukusa, announced yesterday that Zambia’s economy is projected to expand by 4.2% in 2023.
This will be a slight dip compared to last year’s growth of 4.7%, which is to be expected following the months of wrangling over the country’s debt restructuring. However, the Secretary was optimistic about the news, as GDP forecasts 4.8% and 4.7% growth in 2024 and 2025 respectively.
This is very welcome news. Zambia was the first major country to default on its $18 billion foreign debt during the Covid pandemic in 2020. The following years has seen issues with its creditors, who had for some time struggled to make headway with debt restructuring plans.
Zambia’s external debt is split roughly three ways: one third is owed to Chinese lenders, another to private creditors, and the rest to other governments and multilateral lenders, such the World Bank and International Monetary Fund (IMF).
Nkulukusa said central government external debt had increased by 1% to $14.09 billion as of end of this March from $13.96 billion at the end of 2022, making Zambian public debt a total of $25.4 billion.
He said in his announcement, “the increase in debt stock was largely on account of disbursements received from multilateral creditors for budget support and project loans”.
Photo: @CUTS_Lusaka / Twitter
President Hichilema to Speak at The Africa Debate, London
President Hakainde Hichilema is due to deliver a speech at The Africa Debate, London’s leading investment summit focused on Africa. The event – this year being its ninth iteration – will be held on 11 May at the Guildhall under the theme “Catalysing the Continent’s Trade Potential”.
Attendees at this year’s Africa Debate will span continents and industries. Among the guest list are representatives of investment firms, heads of global businesses, and policy and change makers from across the globe, including Africa, Europe, North America, and the Middle East.
The President is set to be the focus of the “Country Spotlight” event, where he will be interviewed about Zambia’s growing trade potential. Other events in the programme include interviews with Wamkele Mene, Secretary General of the African Continental Free Trade Area, and Samaila Zubairu, President and CEO of the Africa Finance Corporation, as well as speeches from British politicians Mark Simmonds and Andrew Mitchell.
Delegates at The Africa Debate, 2022. Photo: Fiona Hanson
There will also be various debates held throughout the day. A panel will discuss “Building a Comprehensive Digital Trade Strategy for Africa”, which will explore innovation in digital strategy and e-commerce across the continent. Other topics set to be explored through debates and panel discussions include: boosting the industrialisation of African countries; ESG regulatory initiatives in African trade; leveraging the continent’s critical minerals supply; and strengthening Africa’s finance sector.
The Africa Debate is organised and hosted by Invest Africa, the UK’s leading trade and investment platform for African markets. Invest Africa describes the continent’s trade outlook as “at a crossroads”. On the one hand, it is suffering from global supply chain disruptions following the Covid pandemic and the Russian invasion of Ukraine which “paint[s] a gloomy picture” of the future of Africa’s trade, as well as the threat of debt risks. But on the other hand, African trade and investment is aligning under the recently established African Continental Free Trade Area (AfCFTA), which aims to strengthen and protect it.
It is hoped that The Africa Debate in May will provide a forum for leaders in industry to discuss, and prepare for, the future of African trade. There is still time to register for a place at the summit.
Minister: Northern Province Embracing Digital Innovation
Northern Province will welcome investment in digital technology in order to unlock the social and economic potential of the region, Northern Province Minister Leonard Mbao has said. The announcement came during a business forum he was officiating in Kasama, organised by MTN Zambia, the country’s leading telecommunications provider. It is hoped such a move will innovate the region’s tourism sector and mining industry.
Mbao told the business forum, “This government is committed to delivering inclusive and equitable development to the citizens. Therefore, digitalisation is a catalyst in the provision of inclusive development and as a government we welcome MTN’s innovation in coming up with digitalised services and products for its clientele. The government is convinced that this kind of digital innovation and forum is the sure way of unlocking the development potential of the province.”
The government’s Constituency Development Fund (CDF), originally introduced in 1995 as a means of encouraging local development in communities across the country, is important in the development of these digital services. The CDF, along with the government’s decentralisation of local policy, can enable local governments to partner with service providers in developing connection and innovation in the region.
The Minister noted the growth of mobile network and digital financial services in Zambia. This was emphasised by MTN’s General Manager North, Elias Chembe, who revealed the company has built 82 4G towers in the region and has plans for the erection of many more, of which 11 will be in the Northern Province.
Chembe said, “In line with the government’s decentralised policy where each constituency is given its share of the national cake, market loans given to our marketers, social cash transfer given to the intended beneficiaries, MTN mobile money services provide the needed support that the government needs to execute its mandate in these areas.”
He stressed MTN’s aim for more regional investment and collaboration with local government, traditional leaders, and Zambian businesses.
Huawei Hosts Zambia’s First Telecom Congress
Zambia’s first ever Telecom Congress took place over the course of two days last week. The event was hosted by Chinese information and communications technology (ICT) company, Huawei, at the Lusaka International Convention Centre (LICC). Huawei, as a global provider of ICT infrastructure and smart devices, has been operating in Zambia for the last 18 years.
The inaugural congress was themed ‘Lighting up ICT for Zambia Digital Life’, and brought together government officials and heads of industry to discuss the present state of the nation’s ICT sector and ideas for its future. Its aim was to explore the various opportunities among government and private corporations to support Zambia in meeting its growing technological demands.
It was at this congress that the Technology and Science Minister, Felix Mutati has announced there has been a 300% growth in mobile money transactions in Zambia in the period from 2021 to 2022. Mutati’s disclosure that K300 billion was transacted via mobile networks last year is the latest in a series of welcome developments concerning progress made in the country’s financial technology sector.
Mutati, in his comments about the recent growth of mobile money transactions, pointed to the work done by new technologies – such as 5G – in increasing ICT usage in Zambia. But he stressed that the country cannot go digital without good connectivity. To this end, the government are planning to erect an additional 300 phone towers in an effort to increase accessible and affordable networks – even in rural areas.
The minister did note, however, that “the old model of erecting towers must be revisited”. He pointed towards technology providers being responsible for providing cheaper options, saying, “we also need appropriate financing to make connectivity faster”.
Huawei’s leading representative at the Congress, its Vice President for Carrier Business Chen Li, reiterated the company’s commitment to aiding Zambia achieve this technologically connected future. Its ability to provide 2G, 3G, 4G, and 5G services means there are cost effective solutions to provided connectivity in rural areas. Doing so, according to Li, would mean “enabling more people to connect to the world.”
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
If you would like to find out more or receive tailored briefings on specific sectors get in touch via info@zambiaisback.com. To stay up to date follow us on social media:
Facebook: @zambiaisback
Twitter: @ZambiaIsBack
Instagram: zambia_isback
$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
GDP
Inflation
Currency
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
If you would like to find out more or receive tailored briefings on specific sectors get in touch via info@zambiaisback.com. To stay up to date follow us on social media:
Facebook: @zambiaisback
Twitter: @ZambiaIsBack
Instagram: zambia_isback
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