Hichilema optimistic BRICS bloc will benefit African continent
Zambian President Hakainde Hichilema says the BRICS bloc will help African countries address the challenges the continent has been battling with over the past years.
Hichilema was addressing world leaders attending the 15th BRICS Summit aimed at strengthening the trade bloc.
The Summit is taking place at the Sandton Convention Centre in Johannesburg.
Leaders have been discussing the role of Africa in relation to strengthening relations between BRICS and Africa.
The Zambian President reiterated calls by other leaders that new reforms are needed in order to address inequalities of the past.
Hichilema says, “We as Zambia see this as a real opportunity to address challenges we kept on talking about for a long time and on many platforms. We need to reform the global world order in particular to address the inequalities associated with critical ingredients to development such as capital.”
The Zambian leader has urged BRICS leaders to fast-track the advancement of technology in the African continent.
He says without access to technology, countries can’t engage in genuine and mutually beneficial partnerships.
Earlier during a media briefing, BRICS Chairperson President Cyril Ramaphosa said BRICS was committed and supported the digital transformation.
“We support the digital transformation in education and TVET space, as each BRICS country is domestically committed to ensuring education accessibility and equity and promoting the development of quality education. We agree to explore 23 opportunities on BRICS digital education cooperative mechanisms, hold dialogues on digital education policies, share digital educational resources, build smart education systems, and jointly promote the digital transformation of education in BRICS countries,” adds Ramaphosa.
Hichilema also used the opportunity to call for peace in the African continent.
The bloc has also called on leaders to resolve conflicts through dialogue.
“Dialogue among political parties of BRICS countries plays a constructive role in building consensus and enhancing cooperation. We note the successful hosting of BRICS Political Parties Dialogue in July 2023 and welcome other BRICS countries to host similar events in the future,” adds Ramaphosa.
The African continent continues to experience conflicts.
In July, Niger President Mohamed Bazoum was overthrown following a coup by mutinous soldiers.
Meanwhile, in Sudan, more than 1 million people have been forced to flee Sudan to neighbouring states.
According to the United Nations, people inside the country are running out of food and are dying due to a lack of healthcare after months of war.
This article originally appeared on SABC News
BackChat Ep.3: Cisanga Mwanza
Episode 3 of BackChat sees Choolwe Chibomba speak with Cisanga Mwanza of Chilengedwe discuss all things environmental sustainability and the positive change the sector has seen since President Hichilema came into office in 2021.
BackChat Ep.2: Mulenga Mutati
This week, Choolwe Chibomba speaks with Mulenga Mutati of Gralix Actuarial Consulting on his experience of working in Zambia and the positive impact that President Hakainde Hichilema has had on the investing climate.
BackChat Ep.1: Kapalasa Job Phiri
The first episode of our new business interviews series BackChat features Kapalasa Investments CEO Kapalasa Job Phiri. He spoke with Zambia Is Back spokesperson Choolwe Chibomba about his success and why now is the time to invest in Zambia.
Britain agrees deals on clean energy, critical minerals with Zambia
LONDON, Aug 3 (Reuters) - Britain on Thursday said it had agreed deals with Zambia on clean energy and critical minerals as foreign minister James Cleverly ends a four-day visit to Africa to deepen ties.
Cleverly has used the trip, which fell shortly after a coup in Niger, to seek to enhance Britain's sway in Africa, welcoming regional talks on the Niger crisis and announcing support for Nigeria's agriculture sector.
The foreign ministry said Cleverly would agree a UK-Zambia Green Growth Compact, aimed at generating 2.5 billion pounds ($3.17 billion) of British private sector investment in Zambia's mining, minerals and renewable energy sectors alongside 500 million pounds of government-backed investments.
"The UK-Zambia Green Growth Compact and our landmark agreement on critical minerals will support investment between UK and Zambian business, creating jobs in both countries," Cleverly said.
Zambia is a major copper producer, and also has deposits of critical minerals such as cobalt, manganese and nickel. Last year Britain emphasised the importance of diversifying its supply chains in a critical mineral strategy.
Cleverly will visit a copper mine in Zambia and sign a memorandum of understanding (MoU) on critical minerals, which Britain said would "lay the foundation for further UK support for the responsible mining of copper, cobalt and other metals essential to the global clean energy transition."
Britain has agreed to deepen collaboration on critical minerals with other countries such as the United States, Japan, Australia, Kazakhstan and Saudi Arabia.
This article originally appeared on Reuters
Zambia Investor Briefing: July 2023
OVERVIEW
Zambia hosted it’s 57th International Trade Fair (ZITF) from 28 June to 4 July under the theme ‘Stimulating Economic Development Through Partnership, Trade and Investment’. The fair was attended by King Mswati III of Eswatini as its guest of honour, who called for closer trade collaboration between the two countries.
President Haikande Hichilema visited Ghana, where he signed nine Memoranda of Understanding (MoU) with President Akuffo-Ado on behalf of their respective countries. These MoU cover various industries, including trade and investments, tourism, arts and culture, science and technology, and skill development.
Zambia has signed two Memoranda of Understanding (MoU) with the United Arab Emirates. The first was signed by Minister of Mines, Paul Kabuswe, and concerns mineral resource exploration between the two countries. The second, regarding increasing support for Small and Medium Enterprises (SMEs), is worth US$15 million. The signing ceremony was presided over by President Hichilema and the UAE’s Minister of State for Foreign Affairs Sheik Shakboot Al Nahyan.
President of the African Development Bank (AfDB) Group, Dr Akinwumi Adesina, met with President Hichilema as part of his two-day official visit to Zambia. They discussed further support for the country in the aftermath of its successful $6.3 billion debt restructuring for bilateral creditors. The Bank has committed to several measures to assist Zambia in its economic recovery. These include an initial budget support of up to $150 million. Adesina told Hichilema, “Zambia is back. Zambia is bankable; and you, Mr President, you are bankable. You can count on the African Development Bank’s support all the way”.
Early July saw the announcement that a group of investors led by commodity trader Trafigura Group plans to invest up to $555 million in a railway project designed to link the Angolan port of Lobito to the Democratic Republic of Congo. The consortium is known as Lobito Atlantic Railways. The US has pledged to help finance the project according to its International Development Finance Corporation CEO Scott Nathan. Using the Caminho-de-Ferro de Benguela railway, the route will provide faster trade to Europe and the Americas from the DRC and Zambia.
On 12 July, President Hichilema participated in a virtual meeting for the Committee of African Heads of State and Government on Climate Change (CAHOSCO) on the Africa Climate Summit (ACS), cohosted by President William Ruto of Kenya and Mousa Faki Mahamat, Chairperson of the African Union Commission. Hichilema stressed Zambia’s commitment to the green investment agenda, describing private sector investment as a way of “implementing the continent’s transition towards a low-carbon development pathway”.
African Development Bank (AfDB) Group Visit to Zambia
President of the African Development Bank (AfDB) Group, Dr Akinwumi Adesina, met with President Hakainde Hichilema as part of his two-day official visit to Zambia. They discussed further support for the country in the aftermath of its successful $6.3 billion debt restructuring for bilateral creditors.
Adesina congratulated the Zambian government for reaching this agreement. He told Hichilema, “You have created a sense of hope in the country and confidence in the economy, paving the way for investments to return and accelerate the drive for prosperity for the country”.
The Bank has committed to several measures to assist Zambia in its economic recovery. These include an initial budget support of up to $150 million, and investment projects in key areas of the economy, including energy, agriculture, and transport. Also offered in assistance to Zambia are the services of the Africa Legal Support Facility (ALSF), which is able to offer aid in renegotiating the terms and conditions of external debt with private creditors.
Adesina told Hichilema, “Zambia is back. Zambia is bankable; and you, Mr President, you are bankable. You can count on the African Development Bank’s support all the way”.
Hichilema’s State Visit to Ghana
President Hichilema visited Ghana on a state visit earlier this month. There, he signed nine Memoranda of Understanding (MoU) with President Akuffo-Ado on behalf of their respective countries.
These MoU cover various industries, including trade and investments, tourism, arts and culture, science and technology, and skill development. Significant among them was the MoU signed between the Zambia Chambers of Commerce and Industry (ZACCI) and the Ghana National Chamber of Commerce and Industry (GNCCI) to strengthen trade and investment cooperation.
Other MoU were concerned with matters such as the preventing the trafficking, supply, and consumption of illegal drugs, and one was dedicated to fostering collaboration in the exploration and exploitation of hydrocarbon resources.
Also on Hichilema’s itinerary was a State Banquet hosted by Ghana’s President and a visit to Valley View University of Ghana, where the Zambian President was awarded an honorary degree of Doctor of Human Letters.
Digging Deeper
Production started this month at First Quantum Minerals’ (FQM) Enterprise mine in North- Western Province – the largest nickel mine in Africa. It follows an investment of $100 million by FQM last year to bring the project online. The mine is expected to produce 32,000 tons of nickel over the next two years, making Zambia the largest producer of nickel for electric vehicles on the continent.
This comes amidst a busy month for mining in Zambia, with the government due to announce a new core investor for Mopani Copper Mines imminently. China’s Zijin Mining and Norinco Group, as well as South Africa’s Sibanye Stillwater are all in the running. Getting Mopani running at full capacity is a cornerstone of President Hichilema’s ambition to increase Zambia’s copper production to 3 million tonnes by the end of 2032.
Elsewhere, Barrick President and Chief Executive Mark Bristow has said the true potential of the company’s Lumwana copper mine is only now being revealed. Additional expansion opportunities, identified through an updated geological survey, are currently being assessed anddrilling at the Kababisa project highlights potential flexibility through higher grades. Lumwana is currently on track to achieve 2023 production guidance as the operation ramps up, the Malundwe pit is reopened, and the facility transitions to owner miner operations.
Barrick’s Lumwana copper mine in Zambia gearing up for the future
Barrick’s drive to transform the Lumwana copper mine in Zambia into a Tier One asset with a life extending beyond 2060 is picking up speed with a strong performance in the past quarter adding impetus to its continuing production ramp-up.
Briefing media at a site visit here on July 7, Barrick President and Chief Executive Mark Bristow said the mine’s full potential was only now being revealed. Additional expansion opportunities, identified through an updated geological model, are currently being assessed, while drilling at the Kababisa prospect highlights potential mining flexibility through higher grades. The Lumwana pre-feasibility study is progressing in line with its plans to transform its long-term copper profile through the delivery of the envisioned super pit.
“Since Barrick refocused its strategy in Africa in 2019, Lumwana has become a key element in the expansion of our strategic copper portfolio and a significant contributor to our bottom line. At the same time its importance to Zambia has grown. Since 2019 it has contributed more than $2.3 billion to the country’s economy in the form of royalties, taxes, salaries and purchases from local suppliers,” he said.
Barrick has a global policy of sourcing its suppliers locally and last year it spent $432 million, 83% of its total procurement, with Zambian suppliers and contractors. It has also launched a ‘Business Accelerator Program’ to build the capacity of Zambian contractors in the mining supply chain.
Similarly, Barrick is committed to local employment. Currently 99.3% of Lumwana’s employees and 98% of its contractors are Zambian nationals, both industry-leading statistics. Lumwana is a participant in the United Nations’ REDD+ project, which is designed to reduce greenhouse gas emissions from deforestation, and the mine has engaged with its communities on this initiative.
Looking at the mine itself, in the presentation accompanying the announcement, Barrick said that Lumwana is on track to achieve 2023 production guidance as the operation ramps up after the wet season, reopens the Malundwe pit, and smoothly transitions to owner miner operations. There is also a plan to to transition away from contract mining in 2023 – with an investment of US$115 million being allocated to implementation of an owner miner waste stripping fleet.
Barrick recently stated: “During the fourth quarter of 2022, we began a transition to an owner miner fleet at Lumwana following a study which concluded that this option could result in a 20% cost reduction within the first five years versus contracted services. Separately, an owner miner strategy positions the operation well for future potential expansions including the Super Pit, which has the potential to extend Lumwana’s life into the 2060s.”
From the processing side, there has been a continuous improvement of processing stability leading to higher throughput and the mine is working to exceed the new base set as it moves into the second half of 2023. Recovery has also stabilised following the higher blend of fresh ore from the pit as mining ramps up. Significant investment has been made over the last few years in the new fleet leading to continuous improvement in availabilities, with the latest batch coming into production in April 2023. A new stripping fleet started arriving in Q2, which will continue throughout the year and is expected to see the stripping increase with the fleet arrivals.
Mining originally began at the Malundwe pit in 2008 by Equinox Minerals (Barrick acquired Equinox in 2011), and the operation ran successfully for some years as a trolley assist mine, with trucks going up ramp to feed a primary gyratory, then the ore utilising a 4.5 km conveyor to the plant. The lower grade Chimiwungo or ‘Chimi’ pit (in fact now three separate South, Main and East pits) some 7 km away was then developed starting with South in 2012 and a new primary gyratory crusher and its own 3.5 km conveyor built to allow the Chimi pit to feed the existing plant. Malundwe and Chimi both operated for some years – Malundwe was higher grade but the initial pit closed due to being mined out leaving only the Chimi operation. Malundwe is now set to be reopened and expanded.
Planned Lubwe starter pits to the north could potentially provide a high-grade, low strip ratio plant feed further enabling the unlocking of the value within the envisaged Chimiwungo Super Pit and the potential 40-60 year mine life. Two other prospects – Kamaranda and Kababisa have potential as additional satellites. The Super Pit PFS began in Q4 2022.
The mine initially operated with a fleet of 31 Hitachi 254 t class EH4500 trucks and five 27 m3 EX5500 shovels – four of them face shovels and one backhoe. Trolley assist was discontinued after mining moved from Malundwe pit. Barrick told IM that the main ramp to Malundwe is equipped with the trolley lines which are still in place however the pantographs were removed from the EH4500 trucks as they are now operating under full diesel power.
The current EH4500 trucks are reaching end of life and a competitive fleet replacement tender was held in 2021 where the Komatsu 290 t class 930E-5 was selected as the main new fleet truck type, with the EH4500s gradually being phased out. There are 15 of there running currently – the final new fleet will be a combination of 930E-5 and Hitachi EH5000 trucks – 30 in total. Four of the EX5500 shovels have been retired and one remains. The mine now operates three Komatsu PC8000 and three PC7000 shovels.
With emissions targets set by Barrick just as other top tier miners, IM asked if there was any plan to look again at running a trolley line: “In line with our commitment to reduce green house gas emissions we are in close discussions with our technology partners and OEMs on how to substitute fossil fuel with renewables. The feasibility of trolley assist is under investigation and consideration to ramp design is part of the expansion PFS that is underway.”
Aside from adding new equipment, Barrick added that its people are its greatest assets and training and upskilling is of cardinal importance. “This process starts with modern simulators we acquired to ensure that we can pick those with the best potential and continuously hone their skills to ensure they get the best out of our new assets. We have also reviewed our maintenance practices in close collaboration with our OEMs and sister operations in NGM to learn from past experiences.”
This article originally appeared on International Mining.
Barrick Gold to Upscale Production at Lumwana Copper Mine
The Canadian-based mining company Barrick Gold has announced that it will be transforming Zambia’s Lumwana copper mine into a ‘Tier One’ asset. Tier One classification means that the mine has been recognised with a reserve potential of greater than 5 million tonnes of contained copper and C1 cash costs per pound in the lower half of the industry cost curve, enabling it to upscale production.
Barrick initially acquired the mine in July 2011 and have been focussing on gradual expansion since 2019, however, due to the recent discovery of new expansion possibilities, the Barrick president and chief executive Mark Bristow said Lumwana’s full potential was “only now being revealed”.
The Zambian mine is considered as one of the largest copper supplies in the world with an estimated 5.014 billion pounds of proven and probable copper reserves of ore grading 0.68% copper. The mining licence held by Barrick covers 1,355km², which is equivalent to 253,213 football fields or works out to nearly twice the size of Singapore.
Additionally, informed by an updated geological model and the latest indications of higher ore grades at Kababisa and Kamaranda, Barrick has increased their investment into Lumwana, both upscaling the production and extending the life of the mine from 2042 to 2060.
Image: Barrick Gold
This investment towards increased copper production will directly result in a greater contribution to the nation’s economy.
Investment into the Local Community
So far, Barrick has purchased approximately US$4.3 billion in goods and services from local Zambian registered businesses since the Lumwana mine went into production in 2011, with $432 million being spent on local procurement expenditure in last year alone (83% of the mine’s total procurement spend).
Moreover, Barrick has repeatedly directed portions of the mine’s profits into the local Zambian community, adding essential infrastructure to Lumwana’s education, transport, water supplies, hospitals and more. The company has also launched a “Business Accelerator Program” which aims to build the capacity of Zambian contractors in the mining supply chain and increase job security. The program assists their expansion plans, diversifies their markets, and fosters independence and sustainability beyond Lumwana's lifespan.
Finally, Barrick has significantly contributed to Lumwana’s community through employment, and the mine currently holds industry leading levels of local workers with 99.3% of employees and 98% of contractors being Zambian nationals. Overall, US$176 million has been paid in form of salaries to Zambian nationals since 2019.
Importantly, as Barrick upscales their production, more money will be spent on local businesses, more donations will be made to the local economy, and more Zambians will be employed- all at a faster rate.
Photo: BGStock72 / Shutterstock
Future Possibilities
As international companies and banks look to safer investments due to current economic instability, almost all look towards purchasing shares in gold, with many investing in Barrick, as the world’s second largest gold company.
Barrick’s growth is encouraging news for the Lumwana mine, meaning that production might even be extended past 2060, and affirming that the probability of the company selling the copper reserve is very low.
Amazingly, this increased investment comes after the gold giant prepared to sell the copper mine in 2019 due to tax changes under Edward Lungu’s government.
The previous president attempted to enforce a 5% copper import duty, plans to replace value-added tax with a non-refundable sales tax, and an added royalty on copper productivity. Following this, Barrick broadcast that it was looking into Chinese investors with plans to sell Lumwana by the end of 2019. The sale process was indefinitely halted after the current government introduced tax breaks in 2022, immediately following this Barrick scaled up production, specifically noting that the revised tax regime freed up cash flow to invest in Lumwana.
In transforming the Lumwana copper mine into a Tier One asset, Barrick aims to achieve the Government’s target of reaching 3 million tonnes (MT) of copper production in the next 10 years through increased investment into the mining process.
Investment into Zambia
Barrick’s recent investment into Zambia is part of a larger international trend with companies announcing new ventures into the Zambian economy almost daily, signalling an increased level of trust for the stability of the nation’s economy under President Hakainde Hichilema’s administration.
In an interview discussing the mine, Bristow stated that “We all agree that President HH has brought a certain stability to the country, he has definitely made the country more investable”, a comment which emphasises a global faith in Zambia’s economy and government.
First Quantum Minerals -Production Starts at Africa’s Biggest Nickel Mine
First Quantum Minerals, a global copper company with reserves of nickel, gold, and cobalt, has officially commenced production on their nickel mine situated in the North-western Province of Zambia.
The Canadian mineral firm is one of the world’s top 10 copper producers and has been partly situated in Zambia since 2005, owning various mines in the country, including Kansanshi which produces more copper than any other mine in Africa.
However, it is the Enterprise nickel mine that First Quantum is currently focussing on, the sediment-hosted nickel-sulphide deposit has been estimated to hold 40 million tonnes of ore and contain 431,000 tonnes of nickel.
Yesterday, on July 26, mining output started on the mine and a new concentrator, set to increase the efficiency of mineral processing, is expected to be commissioned early next month by the Minister of Mines and Minerals Development Paul Kabuswe.
The mine is expected to upscale annual production to nearly 30,000 tonnes of nickel over the next two years, according to First Quantum’s project manager Axel Köttgen.
This increase would make Zambia the largest producer of the metals needed to manufacture batteries for electrical vehicles, a prospect which aligns with the government’s intention to become a major trader in the emerging market of EV batteries.
Internationally, critical supplies of battery minerals are being pursued by countries such as China and the US. Nickel, as a central component of most EV batteries, holds a specific importance in this global rush to secure battery metals.
In addition to this recent investment, First Quantum approved a $1.25 billion expansion project for their Kansanshi copper mine in Zambia last year. A decision the company stated was provoked by a “renewed confidence” in Zambia's investment climate due to the work of the current government.
First Quantum’s increased funding for Zambian assets follows a larger trend of investment into the country, with companies regularly publicising developments into the Zambian economy, ultimately evidencing the restored level of trust in the stability of the nation’s economy under President Hakainde Hichilema’s administration.
Great Future Beckons for Lumwana as Barrick Unlocks Potential
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – Barrick’s drive to transform the Lumwana copper mine into a Tier One asset with a life extending beyond 2060 is picking up speed with a strong performance in the past quarter adding impetus to its continuing production ramp-up.
Briefing media at a site visit here today, Barrick president and chief executive Mark Bristow said the mine’s full potential was only now being revealed. Additional expansion opportunities, identified through an updated geological model, are currently being assessed, while drilling at the Kababisa prospect highlights potential mining flexibility through higher grades. The Lumwana pre-feasibility study is progressing in line with our plans to transform its long-term copper profile through the delivery of the envisioned super pit.
“Since Barrick refocused its strategy in Africa in 2019, Lumwana has become a key element in the expansion of our strategic copper portfolio and a significant contributor to our bottom line. At the same time its importance to Zambia has grown. Since 2019 it has contributed more than $2.3 billion to the country’s economy in the form of royalties, taxes, salaries and purchases from local suppliers,” he said.
Barrick has a global policy of sourcing its suppliers locally and last year it spent $432 million, 83% of its total procurement, with Zambian suppliers and contractors. It has also launched a “Business Accelerator Program” to build the capacity of Zambian contractors in the mining supply chain.
Similarly, Barrick is committed to local employment. Currently 99.3% of Lumwana’s employees and 98% of its contractors are Zambian nationals, both industry-leading statistics.
Lumwana is a participant in the United Nations’ REDD+ project, which is designed to reduce greenhouse gas emissions from deforestation, and the mine has engaged with its communities on this initiative.
Zambia Debt Restructuring: What You Need To Know
On 22 June, Zambia announced that it had reached an agreement on comprehensive debt treatment according to the G20 Common Framework, just over 30 months after first defaulting on its debt. But what are the terms of the new debt arrangement?
How Much Does Zambia Owe?
Major bilateral creditors, including France and China, have agreed to restructure loans totalling to $6.3 billion.
Among the deals’ clauses was an obligation for “comparability of treatment for Zambia’s commercial debts”, guaranteeing that the $6.8 billion owed to private sector creditors would also be restructured according to the G20 Common Framework.
In total, $13.1 billion will be restructured under the deal.
How Will These Be Paid Off?
Zambia’s debts have been reorganised to be paid over a 20-year period with a three-year grace period. Zambia will only have to pay the interest rate on its loans until 2026, and will have until 2043 to conclude debt repayment, an extension of the previous deadline by 12 years.
Zambia’s rate of interest will be capped at 1% until 2037, and will rise to a maximum of 2.5% for the remainder of the loan. Zambia has been paying an average of 3.9% on its Chinese bilateral loans. Interest rates may rise to a cap of 4% if Zambia is upgraded from a low to medium debt carrying capacity.
Also included in the restructuring is a loan to cover the ongoing construction of the Kafue Gorge Lower hydroelectric powerplant.
What Does This Mean For Zambia
The deal also means that Zambia has fulfilled the requirements for the IMF to disburse its second instalment of $188 million agreed in April, which will be injected directly into the Zambian economy.
When President Hichilema returned to Lusaka’s Kenneth Kaunda International Airport, he said that the deal created the conditions necessary for Zambia to “rebuild confidence in our economy, attract foreign investment, and unlock the potential of our natural resources”.
Analysts expect Zambia’s bondholders to also strike a debt restructuring deal with the government in the coming weeks. This would secure a plan to pay back some $3 billion owed to private lenders. Optimism is particularly high after the bilateral debt deal saw the Zambian government pledge to speed up its repayments as the economy improves.
Zambia state firm says Zijin, Sibanye interested in copper mine
LONDON, June 26 (Reuters) - Zambia's state-owned ZCCM Investment Holdings (ZCCM.LZ) confirmed on Monday that China's Zijin Mining (601899.SS) and Sibanye Stillwater (SSWJ.J) are among investors short-listed to buy Mopani Copper Mines.
The list includes those companies, China's Norinco Group and an investment vehicle owned by ex-Glencore officials, Reuters reported June 20, citing sources.
The search for a new investor for Mopani is likely to be concluded within the next two months, ZCCM-IH CEO Ndoba Vibetti told Reuters at a mining conference in London. The mine would require at least $1 billion in funding over the next five to six years, Vibetti said.
Attracting a new investor at Mopani is part of the government's plan to triple copper output in Africa's second-largest producer over the next decade.
The Mopani mine and smelter complex currently requires around $200 million to $300 million of short-term funding to make it sustainable, Vibetti said, adding that it has taken a long time to find a new investor because they needed a suitable company to takeover Mopani.
"Part of the reason that has taken so long is to get that packaging right," Vibetti said. "Somebody who can come, bring it out of water and then be able to invest for the long term."
Switzerland-based commodities giant Glencore (GLEN.L) sold a 73% stake in Mopani to ZCCM-IH in 2021 for $1.5 billion in a deal funded by debt, but it retained offtake rights to Mopani's copper production until the debt had been repaid in full.
This article originally appeared on Reuters
Debt Restructuring Deal Puts Zambia Back in the Champions League
After months of build-up and years of waiting, Zambia has arranged a historic deal to restructure more than $6 billion in debts owed to foreign creditors.
The deal, which will rearrange the structure of the money lent bilaterally to Zambia by nations including China, marks the first major debt relief assigned to a developing country within the Group of 20 (G20)’s Common Framework. Public sector creditors have agreed to reschedule $6.3 billion of debt, $.1.3 billion of which were accrued arrears.
The news was announced by a French official, and later confirmed by Zambia’s finance ministry, ahead of the Globate Climate Finance conference being held in Paris. The summit’s aims include combatting poverty, fighting climate change and reaching “climate solidarity” between developed and developing nations. The same official disclosed that the Memorandum of Understanding contains a clause “requiring comparability of treatment for Zambia’s commercial debts”, guaranteeing that private sector creditors will follow the G20 Common Framework and restructure the $6.8 billion they are owed, meaning that a total of $13.1 billion in debt is to be repackaged.
Presidents Macron and Hichilema greet each other outside the conference. (Hakainde Hichilema / Facebook)
Details are expected to emerge in the coming days once Zambia has formally accepted the debt relief, but an anonymous member of the Paris Club confirmed that China and India had agreed to terms with traditional creditor nations of the Club. It is further understood that the creditors have unilaterally agreed to extend the repayment deadlines for loans by 20 years, with an initial three-year grace period also among the terms.
The memorandum that will be signed will be historic for a number of reasons. The relief will address the debt Zambia incurred when it became the first African nation to default on COVID pandemic-era national debt; the arrangement is the first significant restructuring agreed within the G20 Common Framework; and the deal is likely to lead the way for other struggling nations, including Ghana, Sri Lanka and Ethiopia, whose talks with major creditors have all recently stalled in similar fashion to those of Zambia in the spring.
Janet Yellen, the U.S. Treasury Secretary, mentioned that debt relief was an urgent priority for Ghana and Sri Lanka upon arriving in Paris on Wednesday, when she hinted at Zambia’s debt deal being “very close”. Yellen has been a central figure in the revitalisation of multinational discussions on Zambian debt resolution, and drew attention to the urgent need for round-table talks during her visit to the nation as part of her January 2023 tour of Africa.
Secretary Yellen with President Hichilema during her tour of Africa in January 2023 (Saul Leob / Getty Images)
The deal has yet to be signed; its announcement, nonetheless, has had an immediate and profound impact. Zambia’s currency has rallied 12% this month, making the kwacha the fastest-growing of the 150 currencies monitored by Bloomberg. The 12% increase is the greatest growth the kwacha has enjoyed in more than 7 years. Zambia’s eurobonds, meanwhile, have returned 10.1%, a figure bested only by El Salvador and Argentina.
In October, Zambia’s treasury secretary, Felix Nkulukusa, said that the country was seeking to restructure 12.8 billion in external debt. Nkulukusa also explained that reducing foreign holdings of domestic debt would release funds for other creditors such as China. It is suspected that a significant portion of this initial $6.3 billion package will be committed to servicing debt holdings.
The Paris Club official also disclosed that the $4.1 billion owed to the national Export-Import Bank of China formed the majority of the $6.3 billion package, which is publicly known to have been funds owed to government bodies. They added that Beijing was wary to be seen holding up debt relief for Zambia at a summit attended by 40 world leaders designed to ease debt burdens for developing nations and free up finances for climate initiatives. President Macron’s meetings with Chinese authorities in Beijing in April are understood to have had a significant impact on yesterday’s final talks.
Presidents Macron and Xi in April. (Eliot Blondet / Sipa USA)
Eswar Prasad, professor of economics at Cornell University, said that China’s “endgame seems to be a resolution that limits its financial losses while spreading more broadly the blame for the distressing and untenable situation that many highly indebted economies find themselves in”. The International Monetary Fund has estimated that 70 of the lowest-income nations are burdened by a collective $326 billion in debt; more than half of those same nations are in, or reaching, debt distress.
Ghana and Ethiopia have been locked in talks with creditors for months, their debts dominated by loans from China. It is hoped a solution to their plight will be agreed by the conference’s conclusion.
The scale of Zambia’s debt had been a cause of concern for major Zambian creditors and potential investors, compounding its repercussions. Financing assurances were provided by Zambia’s biggest creditors in July 2022; reports in January 2023 expected restructuring to take place in March. In May, two months after debt relief was supposed to have been arranged, Zambia’s central bank was forced to raise inflation by 25 basis points to 9.5%. Growth in 2022 reached 4.7%, despite Zambia’s distressed status, but forecasts expected a drop to 3.6% in 2023. The IMF guaranteed a $188 million financing disbursement in April 2023, to be released once debt was restructured; Zambia has been waiting patiently for this immediate boost to their economy ever since.
Finance Minister Musokotwane during July 2022 negotiations. (Zinyange Auntony / Getty Images).
Kristalina Georgieva, managing director of the IMF and another vocal supporter of Zambia, issued a statement on Thursday, which read, “Today we will talk about Zambia, which I think is a great case of celebration because it makes debt restructuring agile and effective”. Visiting Lusaka in January 2023, Georgieva committed to assisting “Zambia on its journey towards a more resilient and inclusive future”. She said that she was “hugely impressed by Zambia’s enormous potential given its rich endowment of natural resources, and a dynamic and entrepreneurial youth population”. She praised Zambia’s “efforts to improve the use of public resources by reallocating resources from poorly targeted and inefficient spending and redirecting them to much-needed spending on education and health”, and asked creditors for “swift resolution of its debt situation to complement these reform efforts and preserve the positive growth momentum”.
In April, Georgieva accompanied a trip of IMF staff to Zambia, and told reporters that “The ball is truly in the court of the creditors”. Georgieva and the IMF’s unrelenting support for Zambia has been critical in adding much-needed optimism to the discussion of Zambia’s debt relief and highlighting the role that China and private creditors could play in Zambia’s return to economic good health.
IMF Managing Director Georgieva in Chongwe, Zambia. (Kim Haughton / IMF)
This morning, Hakainde Hichilema, President of Zambia, spoke before delegates at the New Global Financing Pact at Palais Brongniart, Paris. He thanked Presidents Macron and Xi, along with other major creditors. Hichilema concluded his speech with a familiar refrain: “Zambia is back in the Champions League”.
Four firms shortlisted in race to buy Zambia's Mopani Copper Mines - sources
June 19 (Reuters) - China's Zijin Mining (601899.SS) and Norinco Group, South Africa's Sibanye Stillwater (SSWJ.J) and an investment vehicle owned by ex-Glencore officials have been shortlisted in the race to buy Zambia's Mopani Copper Mines, two sources with knowledge of the matter told Reuters.
Zambia's mines minister Paul Kabuswe said in February there were 10 suitors for the mine and smelter complex that is owned by state firm ZCCM-IH.
Rothschild & Co, hired last year to find investors for Mopani, has whittled down the list to four, the sources said.
Switzerland-based commodities giant Glencore (GLEN.L) sold a 73% stake in Mopani to ZCCM-IH in 2021 for $1.5 billion in a deal funded by debt, but retained offtake rights of Mopani's copper production until the debt had been repaid in full.
One of the sources said the investors, who conducted due diligence and submitted non-binding offers in May, are now completing all the work required before making binding offers, with Sibanye, Zijin and Norinco the three strong contenders.
The source added that an investor is expected to be selected before the end of July, and that separate proposals have also been made to Glencore, which is still owed money.
Glencore also made further loan advances to Mopani in 2022.
Reuters was not able to establish the value of the deal.
A spokesperson for Glencore declined to comment. Zijin also declined to comment, while Norinco and ZCCM-IH did not immediately respond to emailed questions.
Sibanye CEO Neal Froneman, who is seeking to expand in copper as part of the company's push into green metals, confirmed the company had submitted a proposal to acquire Mopani.
"We are willing to invest, we are willing to be there for the long term," Froneman told Reuters in an interview.
Froneman said the copper mine, which could potentially produce about 225,000 tonnes of copper annually, required considerable investment, but that the available deposits made Mopani a good asset to own.
"It's a wonderful orebody, and a good mine starts with a good orebody and good people," Froneman said.
Zambia's President Hakainde Hichilema is seeking to attract new investors in Africa's second-largest copper producer, and wants to triple output of the metal that is key to products from power lines and industrial machinery to electric vehicles.
Zambia’s Creditors Close to Debt Restructuring Deal, IMF Says
Zambia’s creditors are close to agreeing to a long-awaited debt restructuring deal that will allow the International Monetary Fund to disburse $188 million to the distressed African nation.
“We’ve had initial agreements to provide financing assurances so the IMF can proceed with providing financing with Zambia,” Abebe Aemro Selassie, the fund’s director of the African Department, said during a panel at the Bloomberg New Economy Gateway Africa forum in Marrakesh, Morocco, on Tuesday.
Zambia’s official creditors committee met earlier this month to discuss proposals for a “specific debt treatment” after the country’s Finance Minister Situmbeko Musokotwane appealed to creditors for urgent debt relief.
The fund and Zambia are having “very very active discussions and we are very hopeful that something will come through in the next few weeks,” he said.
This article originally appeared on Bloomberg
Zambia Investor Briefing: May 2023
OVERVIEW
President Hakainde Hichilema travelled to the UK to attend the coronation of King Charles III and meet with delegates and investors. There, the president attended the Zambia Investor Forum and the Africa Debate in London, both hosted by Invest Africa. President Hichilema gave the keynote address at the Investor Forum, where he announced that Zambia is ready for business. There, Zambian Ministers met with key players in the agriculture, tourism, mining, infrastructure and energy sectors, negotiating investment opportunities. The president also gave a keynote speech at the Africa Debate alongside Andrew Mitchell, UK Minister of State for Development and Africa.
Over the course of the week he spent in England, Scotland, and France, Hichilema took part in 20 meetings with heads of state, delegates, and investors, where he discussed the country’s investment potential. These included meetings with Emmanuel Macron, President of France; Scotland’s First Minister, Humza Yousef; Han Duck-Soo, Prime Minister of South Korea; and James Cleverly, UK Foreign Secretary.
Whilst in attendance at the Africa Debate, Albert Halwampa, Director General of the ZDA, signed a Memorandum of Understanding (MoU) with Invest Africa’s Chairman (and former Africa Minister) Mark Simmonds. The purpose of the MoU is to promote foreign direct investment from the UK into Zambia. Other meetings at the sidelines of the Africa Debate and the Zambia Investment Forum yielded deals with a total of 162 companies.
President Hichilema met with officials from British International Investment (BII), including its CEO Nick O’Donohoe. The development finance institution has invested over $100 million in the Zambian economy, its main areas of interest being the country’s agricultural, energy, and financial sectors. According to Hichilema, the meeting was a means of demonstrating his government’s commitment to “providing an enabling environment for private sector to thrive”.
US President Joe Biden announced his country’s support for the development of the Lobito Rail Corridor, which would connect Zambia and the DRC to global markets through Angola. The US International Development Finance Corporation is currently performing due diligence for a potential financing package of $250 million. Biden stressed the effects of this investment on strengthening Zambia's trade, employment, supply chains, and food security. He made the announcement at the Partnership for Global Infrastructure and Investment (PGII) Meeting, held in Hiroshima, Japan.
Wasoko, a Kenyan retail-tech startup, has expanded into Zambia with a US$1 million investment for its first year of operations. The company leverages innovative technology to provide same-day delivery of essential goods and financing to informal retail stores across Africa. In March 2022 it banked a US$125 million Series B round. Zambia is its first expansion into Southern Africa, with its central hub based in Lusaka. Wasoko’s operations in the city will enable small retailers to access an affordable range of products for same-day delivery and working capital financing solely, accessed purely through a mobile app.
A Zambian delegation, led by Finance Minister Dr Situmbeko Musokotwane, attended the Annual Meetings of the African Development Bank (AfDB) in Sharm El Sheikh, Egypt. Among the bilateral talks held by the delegation were meetings with Dr Akinwumi Adesina, President of the AfDB, and Kevin Kariuki, AfDB’s VP for Energy, Climate, and Green Growth.
Zambia Investment Forum and The Africa Debate, London
President Hichilema travelled to the UK to attend the coronation of King Charles III and meet with delegates and investors. There, the president attended the Zambia Investor Forum and the Africa Debate in London, both hosted by Invest Africa.
Hichilema gave the keynote address at the Zambia Investment Forum, where he announced that Zambia is ready for business. He reiterated 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”.
At the forum, Zambian Ministers – including Finance Minister, Situmbeko Musokotwane; Commerce, Trade, and Industry Minister, Chipoka Mulenga; and Foreign Affairs Minister, Stanley Kakubo - met with key players in the agriculture, tourism, mining, infrastructure and energy sectors to negotiate investment opportunities.
The president also gave a keynote speech at the Africa Debate alongside Andrew Mitchell, UK Minister of State for Development and Africa.
Hichilema’s Meetings in England, Scotland, and France
Over the course of the week he spent in England, Scotland, and France, Hichilema took part in 20 meetings with heads of state, delegates and investors, where he discussed the country’s investment potential.
Hichilema met with France’s president, Emmanuel Macron. The primary focus of the bilateral was Zambia’s debt restructuring programme. During Hichilema’s meeting with Scotland’s First Minister, Humza Yousaf, the latter confirmed Scotland’s investment of £1 million to a vaccine research laboratory in Zambia.
During his trip, president also met with Han Duck-Soo, Prime Minister of South Korea and James Cleverly, UK Foreign Secretary, and spoke at the UK Parliament’s Critical Minerals Association.
Currency
1 USD = 19.51 ZMW 30-day average = 18.510 Volatility (last 30 days) = 0.54%
OTHER NEWS
IMF chief ‘won’t let Zambia down’ as creditors hold up payment’, 05.05.23, Bloomberg
Zambia’s debt crisis is not easy to solve, 15.05.23, Mail & Guardian
Zambia raises key rate to three-year high on inflation pressures, 17.05.34, Bloomberg
China says it will work for better solution of Zambia’s debt issues, 19.05.23, Reuters
Muscle Maker acquires Zambia farmland for $8.5 million, 22.05.23, Yahoo Finance
Studious invests stand to benefit from opportunities in Africa, 25.05.23, Financial Times
Zambia urges official creditors to advance debt restructuring at next meeting, 30.05.23, Reuters
UPCOMING EVENTS
05-06.06.23 Africa CEO Summit Annual Forum ,Abidjan, Côte d’Ivoire
CONTACT US
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Zambia’s Energy Sector Attractive to Private Investors – Finance Minister
Finance Minister, Dr Situmbeko Musokotwane, has described the country’s energy sector as being attractive for private investment as a result of the ready regional industrial market.
The announcement came at the 58th Annual Meetings of the African Development Bank (AfDB) in Sharm El Sheikh, Egypt.
The event also saw the Zambian delegation in an engagement with Kevin Kariuki, VP for Energy, Climate, and Green Growth at the AfDB.
The minister said, “We discussed energy sector investments and prospects for renewable energy projects. It is gratifying that we have convergent views on Zambia’s energy sector being an attractive proposition for private investment due to the ready regional industrial market.
“We look forward to the Bank playing a more substantive role in regional infrastructure projects, especially in infrastructure development”.
The AfDB has deep roots in Zambia: since 1971 it has committed more than US$1 billion in support of infrastructure, water and sanitation, energy, health, education, transport, and private sector development.
While at the event in Sharm El Sheikh, Dr Musokotwane and his delegation have also met with the Director-General in charge of African affairs at Germany’s Federal Ministry of Economic Cooperation and Development, Birgit Picke.
Picke stressed Germany’s commitment to “continue working with Zambia and helping the country to revive and sustain a robust economy”.
The annual meetings of the AfDB began on Wednesday and end today.
Photo: Lusaka Times
Muscle Maker Inc. Announces Agreement to Purchase Developed Farmland in Zambia for $8.5 Million USD
Muscle Maker, Inc. (NASDAQ:GRIL) ("MMI" or the "Company"), a global agricultural-commodity supply chain and emerging growth stage restaurant company, today announced that its wholly-owned subsidiary, Sadot LLC ("Sadot"), has executed an agreement to purchase approximately 4,942 acres (2000 hectares) of producing agricultural land along with buildings and related assets located within the Mkushi Farm Block of Zambia's Region II agricultural zone (the "Farm"), the country's most productive farmlands, for $8.5 million USD.
Purchase of the Farm is expected to accrue multiple benefits to Sadot as it expands its position as an international agri-foods company. The Farm encompasses developed land that can produce wheat, soy and corn, which are Sadot's main target commodities, along with other high-value tree crops such as Avocado and Mango. In the initial stages, these products will be sold to local African markets with the goal of later integrating into Sadot's international trade, launching a new business vertical in the food supply chain strategy.
"Upon closing of the purchase of the Mkushi Farm, it is expected to continue to diversify MMI's holdings within the world's food and feed supply chain," stated Michael Roper, CEO of MMI. "We view Africa in general and specifically Zambia, as a region that presents numerous opportunities and we expect the purchase to help accelerate Sadot's growth within the agri-commodity space. The addition of Sadot to the MMI portfolio has been the key driver behind our recent growth. We have taken several successful steps in our shift to diversify our U.S.-centric restaurant business towards a more globally focused food organization. The Farm acquisition when closed is expected to further accelerate our growth as a related diversified holding company and to provide MMI shareholders exposure to our enhanced and expanding portfolio."
Sadot entered into a Joint Venture Shareholders Agreement pursuant to which the parties agreed to form a new entity to serve as a joint venture with respect to the operation of the Farm. The joint venture is expected to be named Sadot Enterprises Limited ("Sadot Zambia") with Sadot holding 70% of the equity and other joint venture partners holding 30% of the equity while continuing to operate the Farm.
The purchase is expected to improve access to global credit facilities allowing for larger agri-commodity trades and expanded margin. Previously, Sadot had made a $5 million USD deposit on undeveloped farmland in Africa. That deposit has been applied to this purchase agreement as part of the all-cash transaction. The completion of the acquisition is contingent upon final Zambian governmental approval.
About Muscle Maker, Inc. (MMI)
In late 2022, MMI began its evolution from a consumer-focused, U.S. restaurant business into a global, food-focused organization with two distinct business units:
Sadot LLC
MMI’s largest operating unit is its newly-created subsidiary, Sadot LLC. Sadot is an international agri-foods company engaged in trading and shipping food (and feed) commodities such as soybean meal, wheat and corn. Sadot was formed in partnership with Aggia LLC FZ, a Dubai based, international consulting firm that provides services to companies operating in the global food supply chain.
MMI Restaurant Group
MMI's legacy business is our limited collection of 50+ restaurants, including Pokémoto Hawaiian Poké & Boba Tea and Muscle Maker Grill, and our subscription, fresh-prep meal service, Superfit Foods, with 30+ points of distribution plus in-home and national delivery. All three concepts compete in the growing healthier-for-you segment. National franchise development of the Pokémoto concept is the key growth driver with more than 45 franchise units already in the pipeline.
Forward-Looking Statements
This press release may include "forward-looking statements" pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as "should", "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Muscle Maker, Inc., does not undertake any duty to update any forward-looking statements except as may be required by law.
Investor Relations:
Frank Pogubila
SVP
Integrous Communications
W - 951.946.5288
E - IR@musclemakergrill.com
SOURCE: Muscle Maker, Inc.
The World Is Coming To Zambia
By Albert Halwampa, Director General of the Zambia Development Agency
May has been a milestone month for the Zambia Development Agency.
On May 1, President Hakainde Hichilema officiated at the ground-breaking ceremony for the construction of the United Capital fertiliser plant, a project worth $600 million that was facilitated by the Zambia Development Agency (ZDA). Fittingly, the ceremony took place on International Labour Day. The urea and ammonium plant is just the latest in a series of high-value infrastructure investment partnerships specifically designed to boost the Zambian economy whilst guaranteeing long-term sector sustainability, infrastructural enrichment and stable local employment.
The signing of a memorandum of understanding between the ZDA and Invest Africa on the sidelines of the Africa Debate in London.
On May 4, as Director General of the ZDA, I was delighted to announce a record high projected investment for Q1 of 2023, with investment ventures worth $8.57 billion secured. This represents a nearly 3,500% increase compared to the same period last year. All in all, 81 investment ventures were undertaken in Q1 of 2023, compared to 74 in Q1 of 2022. Not only, therefore, have the overall volume of investments grown but the average financial commitment of each investment has also reached new heights.
As a direct result of these investments, 13,435 new jobs will be sustained. Furthermore, the $8 billion worth of investments earmarked for the energy sector will help fulfil our commitment to Zambia’s energy security and empower Zambians to fulfil their potential in every segment of the economy.
In line with the New Dawn government’s pledge to make Zambia a regional and continental economic powerhouse, we were also pleased to announce that the ZDA has facilitated market access for 20 exporters to potential buyers, and has audited 101 exporters in the Copperbelt, Lusaka and Eastern Provinces.
Further afield, this month I had the pleasure of attending the Africa Debate at the Guildhall in London. With me, alongside a number of other Zambian businesspeople and ministers, was President Hichilema, who in his keynote speech reminded investors that Zambia is “looking for mutually beneficial partnerships”.
President Hichilema at the Zambia Investment Forum, hosted by Invest Africa.
This conference was not only a chance to showcase how far Zambia has come but also an opportunity to further advance our fortunes as a nation. Meetings at the side-lines of the Africa Debate and the Invest Africa Zambia Investment Forum have so far yielded deals with some 162 companies, including a memorandum of understanding with Invest Africa itself to promote foreign direct investment from the UK into Zambia.
I was proud to sign this MoU myself, together with IA chairman and former Africa Minister the Rt Hon. Mark Simmonds. The agreement is yet another indicator of the strong bonds between the ZDA and Invest Africa, as well as Zambia’s longstanding partnership with the UK, and I look forward to welcoming the businesses and financiers that come to Zambia as a result of this close cooperation.
Also agreed within the MoU were provisions to mobilise investments from Europe, the United States of America, the Middle East and Africa, and to continue to hold promotional activities in Zambia and the UK on a reciprocal basis. The sectors likely to benefit the most from our continued partnership with Invest Africa are Agriculture, Energy, Mining and Tourism – all of which are critical to Zambian employment and localised economic enrichment.
Delegates at the business forum in Lusaka, co-hosted by the ZDA and Etion.
On May 18, the ZDA hosted a business forum in partnership with Etion, a business delegation from Belgium in Lusaka. A business-to-business (B2B) meeting was held, along with a networking session, to encourage business linkages and joint ventures between Zambian and Belgian enterprises. So many European investors are excited to deepen ties with Zambian business and industry and I have no doubt that investment summits such as this will continue to enjoy enormous success.
It is a very exciting time to be at the helm of the ZDA, a fantastic moment to be investing in our country, and a proud moment to be Zambian. We look forward to the results of Q2, continue to plan more investment summits, and eagerly anticipate forging new business ties and solidifying those we have already established.
Kenyan retail-tech startup Wasoko expands to Zambia
Kenyan retail-tech startup Wasoko, which leverages innovative technology to transform the informal retail supply chain, has expanded into Zambia, the company’s first location in Southern Africa.
Launched in 2016 as Sokowatch, Wasoko provides free same-day delivery of essential goods and financing to informal retail stores across Africa. The platform enables retailers to order products at any time via SMS or mobile app and receive delivery through its proprietary logistics network to their store.
The startup has delivered over 2.5 million orders to over 50,000 informal retailers across Kenya, Tanzania, Rwanda, Uganda, Ivory Coast, and Senegal, and in March of last year banked a US$125 million Series B round for further expansion.
It has now announced its expansion into Zambia, its first location in Southern Africa. Wasoko will invest over US$1 million in its first year of operations to support local Zambian businesses and communities to get more essential goods for less through the power of e-commerce.
Launching its central hub in Lusaka, Wasoko’s operations will enable small retailers across the city to access an affordable range of products for same-day delivery and working capital financing solely through the convenience of a mobile app. The formation of Lusaka as a central hub is also part of Wasoko’s company-wide pivot to a hub and spoke logistics network to drive stronger operational efficiency and significantly boost its capacity for faster regional expansions.
“As we drive ahead with the next phase of our growth journey, it’s vital that the operating environments of our future markets are conducive to our ambitions and Zambia provides exactly this. With high smartphone usage and a pro-business government administration keen on expanding the country’s digital economy, Zambia is an ideal environment to launch our model and strongly aligns with our current core markets, both in terms of similar regulatory practices and a supplier base which is intertwined with East Africa,” said Daniel Yu, founder and global CEO at Wasoko.
“With this in mind, we’re confident that our new launch will not only play a huge role in accelerating our existing progress across the continent, but also significantly strengthen the purchasing power of everyday citizens in Zambia and enhance their livelihoods in the process.”
In addition to its latest expansion, Wasoko will also be doubling its service radius across all of its existing locations in Kenya, Tanzania, Rwanda and Uganda, where it has amassed a network of over 200,000 informal retailers and delivered more than 5 million orders to date.