BackChat Season 2 Ep. 5: Mwiya Musokotwane, CEO of Thebe Investment Management

ZIB’s guest this week has been mentioned in the Forbes 30 under 30 as well as being part of the Choiseul 200 Leading Economic Leaders list! Tune in as Choolwe catches up with Mwiya Musokotwane of Thebe Investment Management as they discuss all things infrastructure development and the current investment landscape in the country, including the role that President Hakainde Hichilema has played.

2023 In Review: Zambia's Economic Revitalisation

2023 has been a bumper year for Zambian investment, with an additional US$ 40 billion ploughed into 379 investment projects throughout the year. This represents a 300% increase on the previous year’s figure of US$8.6 billion.

Albert Halwampa, Director General of the Zambia Development Agency, attributes this transformational confidence in Zambia’s economy to the discerning policies implemented by President Hakainde Hichilema.

Speaking to ZNBC 1, Halwampa said there was a “new sheriff in town”, which explains Zambia's attractiveness to global investors. The nation has now become a hub for international business ventures, he explained, and the influx of capital has soared to new heights, signalling a surge in global interest and confidence in Zambia's economic potential.

In Halwampa's words, "We've never witnessed this level of economic activity in Zambia."

Of the monumental US$40 billion investment, a considerable US$2 billion has already been deployed, with Halwampa assuring stakeholders that projects are advancing through various stages of implementation.

He outlined that these strategic investments will soon yield substantial benefits, not only for the investors but crucially also for the citizens of Zambia.

Over the past year Halwampa, along with his dedicated ZDA team, travelled globally, identifying and evaluating diverse business opportunities for Zambia.

 From cutting-edge artificial intelligence enterprises in America to the nuanced realm of almond cultivation in Italy, Halwampa has helped position Zambia as an ideal business environment across a wide array of sectors.

This dedicated effort underscores ZDA’s commitment to fostering a resilient business ecosystem that extends beyond the attraction of investment, seeking to diversify and fortify the nation's economic foundations.

As these investments are actualised in 2024 and beyond, it is clear that Zambia is well positioned to solidify its standing as a rising star of southern Africa’s rapid economic development.

What to stay up to date with Zambian investment news? Sign up to our newsletter by clicking here.  

BackChat Season 2 Episode 4: Java Foods CEO Monica Musonda

Zambia Is Back spokesperson Choolwe Chibomba speaks to Monica Musonda, CEO of Java Foods, about her business journey, the role of women in Zambia's economic development, and why now is the time to invest in Zambian businesses.

First Quantum agrees with Zambian firm to fast-track copper project

LUSAKA, Dec 4 (Reuters) - Canada's First Quantum Minerals (FM.TO) and a Zambian mining company have signed an agreement to fast-track the development of a copper project in Africa's second-biggest producer of the metal, the companies said on Monday.

Zambia has ambitions to triple its copper output and has reviewed its tax policy to increase mining exploration and output.

First Quantum is already a major miner in the southern African country.

ts agreement with Zambia's Mimosa Resources envisages mining at the Fishtie copper project starting from 2026, ramping up to maximum production of 30,000 metric tons of copper a year by the end of the decade, First Quantum and Mimosa Resources said in a joint statement.

First Quantum reiterated it thought the investment climate in Zambia had improved.

Mimosa Resources is expected to lead the raising of a total investment of $200 million for the project.

Zambia Investor Briefing: December 2023

OVERVIEW

•    Canadian mining giant First Quantum Minerals (FQM) has signed a deal with Zambia’s Mimosa Resources to advance the development of the Fishtie copper project in Central Province. The deal – a revised version of the Kashime Development Agreement, first announced in 2012 - will see Mimosa aim to raise the $200 million required for the project’s development. Production is slated to begin in 2026 and is expected to extract 30,000 tons of metal per year by the end of the decade. FQM’s country manger Godwin Beene said regarding the deal: “We are determined that this resource should be developed now that the investment climate in Zambia has improved”.

•    During his attendance at COP28 UAE, President Hakainde Hichilema used the international platform to engage with global leaders on climate change and global development. He presented a keynote address, engaged with numerous premiers and delegates, and participated in various panels.  The Zambian president gave a Keynote Intervention at the ‘Leaders’ Event on Carbon Markets’ hosted by the EU alongside EU President Ursula von der Leyen, Prime Minister of Spain Pedro Sánchez, and Kristalina Georgieva of the IMF. In his address, Hichilema detailed Zambia’s national climate adaptation policy, promoting carbon market development. He also stressed the need to actively engage with rural communities regarding carbon projects.

•    During his visit to Zambia, the Bank of China’s vice-president Lin Jingzhen announced plans to promote the use of renminbi (RMB) in the country. He said: “We will earnestly act upon our responsibility and leverage our role in Zambia to provide holistic services and products related to RMB and to promote the use of RMB in bilateral trade and economic activities”. Hichilema said the Bank of China “remains committed to supporting ongoing projects” in Zambia.

•    Hichilema met with France’s Secretary of State in charge of Development, La Francophonie and International Partnerships Chrysoula Zacharopoulou during her trip to Zambia. According to the president, the pair discussed the country’s goal to connect to important of trade corridors in connecting to the Atlantic and Indian Oceans. The two also signed Declarations of Intent covering a number of areas.

•    Zambia Is Back’s Choolwe Chibomba sat down in an interview with British High Commissioner to Zambia Nicholas Woolley. They covered topics such as the UK’s work in supporting investment into Zambia, Zambia’s renewable energy sector, and expectations for the UK-African Investment Summit 2024. Chibomba also met with the German Ambassador Anne Wagner-Mitchell. During the interview the pair discussed German investment in Zambia, as well as the ways in which the two countries can work together to mitigate climate challenges.

•    At Zambia’s first Information and Communications Technology, Postal and Courier Services awards, Minister of Science and Technology Felix Mutati announced that 4G internet is being set as standard across the country. As part of this effort to enhance Zambia’s connectivity, 2G and 3G will be eliminated.

•    US President Joe Biden hosted Angola’s President João Lourenço to discuss the US contributing $1 billion to the Lobito Corridor. The Corridor is a trans-African railway line connecting Zambia and the DRC to regional and global markets through the port of Lobito on Angola’s coast. Once completed, it will offer the shortest route to transport Zambia’s exports such as critical minerals to the coast and will also greatly benefit the region’s import economy.

A CLOSER LOOK

Hichilema Attends COP28 in the UAE

During his attendance at the COP28 climate summit, President Hakainde Hichilema used the international platform to engage with global leaders on climate change and global development. He presented a keynote address, engaged with numerous premiers and delegates, and participated in various panels. 

The Zambian president gave a Keynote Intervention at the ‘Leaders’ Event on Carbon Markets’ hosted by the EU alongside President of the EU Ursula von der Leyen, Prime Minister of Spain Pedro Sánchez, and Kristalina Georgieva of the IMF. In his address, Hichilema detailed Zambia’s national climate adaptation policy, promoting carbon market development. He also stressed the need to actively engage with rural communities regarding carbon projects.

In efforts to continue to strengthen Zambia’s economic diplomacy with key global players, the Zambian president held numerous bilateral meetings during his time at COP, including with French President Emmanual Macron. He also held bilateral meetings with Ding Xuexiang, China’s Vice Premier. The talks were focused on strengthening the ‘all-weather friendship’ of the two countries. In a statement posted to his Facebook page, Hichilema said: “We remain committed to building on our bilateral relations for the benefit of our two countries and peoples”.

Hichilema’s other meetings of note, held on the margins of COP, include his engagement with Antonio Guterres, UN Secretary-General. He also met with Ahunna Eziakonwa, Assistant Secretary General of the United National Development Programme, with whom he explored the idea of Zambia hosting a regional technology hub and implementing a carbon strategy framework.

 OTHER NEWS

AFC leads on critical Lobito rail link project (African Business, 30.11.23)

The New Guard: South Africa, Angola, Zambia (Africa Intelligence, 06.12.23)

‘Gem in the rough’: A look at Zambia’s ever-growing emerald industry (Forbes Africa 12.12.23)

Billionaire-backed KoBold Metals widens lithium hunt across four continents (Reuters, 14.12.23)

Jubilee Metals raises $16.6m to fund Zambia copper recovery (Mining Technology, 18.12.23)

Opinion: The three ‘geos’ shine against gloomy horizon (FDi Intelligence, 19.12.23)

BackChat Season 2 Ep. 3: German Ambassador Anne Wagner-Mitchell

How can Germany and Zambia work together to mitigate climate challenges? How will the relationship between the two countries develop? What sectors within Zambia are the most promising for German investment?

Tune in to hear German Ambassador Anne Wagner-Mitchell's thoughts, alongside some exciting examples of German investment in the country.

Zambia Investor Briefing: November 2023

OVERVIEW

•    Zambia has selected the UAE’s International Resource Holdings (IRH) as the new strategic equity partner in Mopani Copper Mines, according to the mine’s owner ZCCM. IRH is linked to Abu Dhabi’s most valuable listed company, International Holdings Company (IHC). Mines Minister Paul Kabuswe has said details of IRH’s investment and level of equity participation in Mopani will be revealed when negotiations are complete. It is expected to invest funds into the mine to help with short-term working capital and to finance the completion of the mine development. IRH will also work to “reset” Mopani’s existing relationship with Swiss mining conglomerate Glencore. This is good news for Zambia, which has been searching for a new investor in Mopani since the state took control of the assets from Glencore in 2021.

•    Zambia has experienced a significant setback in its debt restructuring process after its official creditors, led by China, rejected a deal of almost $4 billion, despite approval in principle by the IMF. According to the finance ministry, the Zambian government “currently does not have the support” of official creditors and is “unable to move forward at this time” on a deal with bondholders. This is disappointing news, especially following October’s reports that Zambia had reached a huge milestone in its debt restructuring process. Despite this, however, the IMF has grounds for optimism that key lenders will still agree to a restructuring deal. Finance Minister Situmbeko Musokotwane has said Zambia hopes to complete the restructuring “as soon as possible” and is engaging closely with all creditors.

•    President Hakainde Hichilema travelled to Italy on a two-day state visit to strengthen bilateral relations between the two countries. While there, he met the country’s president, Sergio Mattarella, with whom he discussed future opportunities to enhance Zambian development by means of alliances with Italian businesses, particularly in the industries of agriculture, mining, energy and tourism. Among the highlights of the Zambian president’s visit was his delivery of the keynote address at the Zambian-Italian Business Forum in Rome.

•    Hichilema embarked on a trip to Germany where he undertook extensive economic diplomacy engagements. This included the G20 Compact with Africa, where he addressed a delegation of industry leaders in Germany. On the margins, he held bilateral talks with German Chancellor Olaf Scholz regarding the investment of German businesses in the Zambian agricultural sector.

•    During his trip to Germany, Hichilema held bilateral meetings with the president of the World Bank Ajay Banga, and the IMF Managing Director Kristalina Georgieva. Both talks were focused on the need for a swift resolution to the remaining elements of Zambia’s debt restructuring programme.

•    The Africa Fintech Summit was hosted this month in Lusaka. It brought together industry leaders, policymakers, investors, and entrepreneurs to explore the opportunities and challenges of the future of fintech on the continent. Technology and Science Minister Felix Mutati announced at the Summit Zambia’s plans to open a new smartphone factory by June 2024, which he hopes will “foster inclusivity when it comes to connectivity” and boost the reach of fintech startups in the country. 

•    According the Tanzania-Zambia railway authority, the Chinese government has asked China Railway Construction Corp., a state-owned firm, to negotiate a concession to operate a railway line connecting Zambia with the port of Dar es Salaam in Tanzania. The authority plans to revive the Tazara railway, which has fallen into disrepair in past decades but originally had a capacity of about five million tons per year. It has been a big year for Zambian rail networks: the US and EU have pledged to support the development of the Lobito Corridor, which will connect the Copperbelt region in Zambia and the DRC to Angola’s port of Lobito.  

•    Hichilema commissioned the Kasama Airport in the Northern Province. It is hoped the airport will serve as a “key hub for economic expansion in the northern circuit”.

Zambia Selects UAE’s IRH as New Partner for Mopani

Zambia has selected the UAE’s International Resource Holdings (IRH) as the new strategic equity partner in Mopani Copper Mines, according to the mine’s owner ZCCM. IRH is linked to Abu Dhabi’s most valuable listed company, International Holdings Company (IHC). This development signals the end to the speculation as to who would be Mopani’s investor, with South Africa’s Sibanye Stillwater and China’s Zijin previously in the running.

Mines Minister Paul Kabuswe has said details of IRH’s investment and level of equity participation in Mopani will be revealed when negotiations are complete. It is expected to invest funds into the mine to help with short-term working capital and to finance the completion of the mine development. IRH is also expected to “reset” Mopani’s existing relationship with Glencore.

The partnership is expected to increase copper production at the mine to more than 200,000 metric tons per annum, according to ZCCM. It has previously said Mopani would require $300 million in investment to expand output over the next three years, with an extra $150 million to sustain its operations.

This is good news for Zambia, which has been searching for a new investor in Mopani since the previous government took control of the assets from Glencore in 2021 and agreed to pay the company $1.5 billion in a deal funded by debt. According to ZCCM: “The proposed investment in Mopani is the largest single investment to date by IRH and represents a key step in the development of its strategy to become a major player in the African minerals sector”.

Hichilema Visits Italy to Strengthen Bilateral Ties

President Hakainde Hichilema travelled to Italy on a two-day state visit to strengthen bilateral relations between the two countries. While there, he met the country’s president, Sergio Mattarella, with whom he discussed future opportunities to enhance Zambian development by means of alliances with Italian businesses, particularly in the industries of agriculture, mining, energy and tourism.

Among the highlights of the Zambian president’s visit was his delivery of the keynote address at the Zambian-Italian Business Forum in Rome. Sponsored by the Zambian Chamber of Commerce and supported by the Zambian Development Agency (ZDA), the forum was attended by both Zambian and Italian companies.

While in Italy, Hichilema also met with both Qu Dongyu, Director-General of the Food and Agriculture Organization (FAO) and Alvaro Lario, President of the International Fund for Agricultural Development (IFAD) to discuss food and nutrition security in Zambia.

OTHER NEWS

The US and EU plan $1 billion-plus Africa rail link for key minerals 01.11.23, Bloomberg

Remittance fintech app Minit Money launches money sending to Zambia 3.11.23, Fintech Finance News

Zambia’s president calls for more bilateral cooperation with Türkiye 08.11.23, AA

Anglo starts exploratory drilling on copper licences in Zambia 13.11.23, Mining Weekly

What’s in store for China-Africa relations in 2024? 27.11.23, African Business

Koryx Copper starts a geophysical survey in Zambia 29.11.23, Yahoo Finance

UPCOMING EVENTS

SuperReturn Africa 2023 - 04-06.12.23, Cape Town, South Africa

COP28 Networking Reception – Invest Africa - 05.12.23, Dubai, UAE

BackChat Season 2 Ep. 2: British High Commissioner Nicholas Woolley

What is the UK doing to support investment into the country? Is the UK involved in the renewable sector here? What will Zambia get out of the UK-African Investment Summit next year?

Find out through taking a listen to Choolwe Chibomba's conversation with Nicholas Woolley, British High Commissioner to Zambia.

Zambia Investor Briefing: October 2023

OVERVIEW

•    On 26 October, in a huge milestone in the country’s debt restructuring process, Zambia announced it had reached an agreement in principle regarding the restructuring of $3 billion of its international bonds with key creditors. Finance Minister Situmbeko Musokotwane said in a statement the agreement “paves the way for similar restructuring agreements with our private creditors”. Earlier this month, the country had also agreed to a Memorandum of Understanding (MoU) with its official creditors – which includes China and members of the Paris Club – to restructure $6.3 billion of debt.

•    Abu Dhabi’s International Holding Company (IHC) has signalled its interest in Mopani Copper Mines. Zambia’s state-owned investment vehicle Zambia Consolidated Copper Mines (ZCCM) took control of Mopani Copper Mines back in 2021, after global commodities powerhouse Glencore sold its stake for $1.5bn.

•    The African Development Bank (AfDB) and Africa Finance Corporation (AFC) have recently joined the US and EU in support of the development of the Lobito Corridor, a trans-African railway line connecting Zambia and the DRC to regional and global markets through the port of Lobito on Angola’s west coast. A seven-side Memorandum of Understanding was signed regarding this on the margins of the Global Gateway Forum in Brussels.

•    Barrick Gold has pledged an investment of nearly $2 billion in a bid to increase copper production at its Lumwana mine to a projected 240,000 tonnes. The company, which has previously announced plans to explore more copper deposits along the African Copperbelt, has announced it hopes to extend the life of the Lumwana mine to 2060. Barrick’s President and Chief Executive Mark Bristow said: “In Zambia as elsewhere in our global network, we seek to share the economic benefits generated by our mines with the countries’ governments and people”.

•    Zambia has officially become the sixth country to receive SpaceX’s Starlink internet service, providing high-speed broadband and uncapped service to even remote regions of the country via satellite. President Hichilema had originally opened talks with Starlink in 2022. It is currently available in the country in specific areas, but the company plans to expand its coverage in the coming months.

•    President Hichilema attended the Zambia-China Jiangxi Investment and Trade Cooperation Promotion Conference in Chibombo District. There, he also commissioned the Chibombo Jiangxi Economic Cooperation Zone. The conference follows a month on from the president’s state visit to the People’s Republic of China, where he signed several MoUs to further cement the trade and investment partnership between the two countries.

•    President Hichilema, along with Mozambican President Felipe Nyusi and Malawi’s Lazarus Chakwera, have signed three agreements for the management of the Nacala Corridor in Mozambique. The agreements, aimed at strengthening the corridor’s operations strengthening the region’s development, were signed at the inauguration ceremony of the rehabilitated, expanded, and modernised infrastructures of Nacala Port. The rail corridor runs from the port of Nacala to the landlocked Malawi and Zambia, and will provide Zambian businesses with a shorter and more efficient trade route.

•    President Hichilema hosted a delegation from K.E. International Consortium, an organisation that consults on large-scale renewable and sustainable projects and business development and is interested in creating Public-Private Partnership (PPP) projects with Zambia. The organisation’s areas of interest include infrastructure development, electric vehicle battery production, and renewable energy work to agriculture and agro-processing.

Zambia Reaches Deal for Debt Relief

On 26 October, Zambia announced it has reached an agreement in principle regarding the restructuring of $3 billion of its international bonds with key creditors – a huge milestone in the country’s debt restructure process. The deal is a set to provide $2.5 billion of cash-flow relief during the country’s $1.3 billion IMF programme which expires in 2025.

Finance Minister Situmbeko Musokotwane said in statement the agreement “paves the way for similar restructuring agreements with our private creditors”. The Zambia External Bondholder Steering Committee also welcomed the agreement, saying it would “restore full international capital markets access to Zambia and encourage long-term investment in the country”.

This announcement followed news earlier in the month that the country had agreed to a Memorandum of Understanding (MoU) with its bilateral creditors – including China and members of the Paris Club – to restructure $6.3 billion of debt. The agreements mean Zambia will pay about $910 million in the next decade, compared to almost $6 billion that was due to official creditors before the debt restructuring process.

UAE’s IHC Expresses Interest in Mopani Copper Mines

Abu Dhabi’s International Holding Company (IHC) has signalled its interest in Mopani Copper Mines. Zambia’s state-owned investment vehicle Zambia Consolidated Copper Mines (ZCCM) took control of Mopani Copper Mines back in 2021, after global commodities powerhouse Glencore sold its stake for $1.5 billion.

IHC has now emerged as the newest outfit looking to invest in Mopani. Its main competitor for the bid is South Africa’s Sibanye-Stillwater, since two Chinese corporations, Zijin Mining and Norinco, pulled out of the process.

Mopani is one of Zambia’s largest assets. President Hichilema has placed specific emphasis on copper production, setting an ambitious target of producing over three million tonnes of copper nationally by 2032. His recognition of copper’s significance has played a major part in the renewed interest of external investors in Zambia.

OTHER NEWS

Coal miner Exxaro hunts for copper assets in Congo, Zambia and Botswana 04.10.23, Reuters

Sibanye CEO says Zambia’s Mopani Copper Mines investment not ‘onerous’ 04.10.23, Reuters

Zambia plans to sell a green bond, regulate carbon credits 06.10.23, Bloomberg

South Africa: Minister Pandor undertakes working visit to Zambia 20.10.23, African Business

EU courts Africa in early push to counter Chinese spending 25.10.23, Bloomberg

As critical minerals gain importance, Standard bank eyes investment in DRC and Zambia 26.10.23, Arican Business

Anglo, Arc agree $90m Zambia exploration joint venture 27.10.23, Mining Weekly

UPCOMING EVENTS

Zambia International Mining + Energy Conference 01-2.11.23, Kitwe, Zambia

Africa Fintech Summit - 02-03.11.23, Lusaka, Zambia

Intra-African Trade Fair - 09-15.11.23, Cairo, Egypt

Africa Tech Festival - 13-16.11.23, Cape Town, SA

Zambia Investor Briefing: September 2023

OVERVIEW

• Vedanta will take back ownership of Konkola Copper Mines (KCM), four years after the group was removed from its operations in Zambia by Edgar Lungu’s government. It was announced earlier this month that Vedanta, owned by Anil Agarwal, will invest $1 billion over the next five years to revive KCM. It will also fund $250 million of payments to local creditors of the mine to restore its majority stake.

• Albert Halwampa, Director General of the ZDA, has announced pledges by Chinese firms to invest in Zambia to the total of $1.4 billion. This came during President Hakainde Hichilema’s six-day visit to the People’s Republic of China, undertaken to enhance the economic diplomacy between the two countries. There, he addressed the country’s potential investors at the Zambia-China Investment and Tourism Promotion Conference in Jinggangshan, Jiangxi Province. Hichilema’s itinerary also included visits to local authorities, various heads of industry, and investors.

• At the G20 Forum in India, the US and the EU pledged their support of the Lobito Corridor Project, a trans-African railway line connecting Zambia and the DRC to regional and global markets through the port of Lobito on Angola’s west coast. As a first step, they will launch feasibility studies for a greenfield rail-line expansion between Zambia and Angola. The US and EU have also promised to upgrade critical infrastructure across sub-Saharan Africa in order to “unlock the enormous potential of this region”. Once completed, the Corridor would offer the shortest route to transport exports such as critical minerals from inland to the coast, and will also greatly benefit the region’s import economy.

• Silicon Valley start-up KoBold Metals has said it aims to start producing copper and cobalt in Zambia within 10 years. The company is investing $150 million in its development of a copper deposit at Mingomba in Copperbelt Province. Mfikeyi Makayi, KoBold’s Zambian CEO, said, “It’s a very attractive project and we have said within a decade we would want Mingomba to be a producing mine”. KoBold uses AI to facilitate its search for critical minerals including copper, cobalt, nickel, and lithium.

• Zambia has signed a Memorandum of Understanding (MoU) with two Chinese companies – the Development Company of China and the Guangxi Fenglin Wood Industry Group – to launch a 4 million hectare carbon offset venture in the country. Across 5% of all land in Zambia, trees will be planted and forests preserved. This venture will produce 23.25 million carbon credits a year, and the scheme is set to employ of 65,000 people.

• In a lecture at the University of Zambia, the International Monetary Fund (IMF)’s Resident Representation Preya Sharma said Zambia’s economic growth had rebounded with inflation at a declined growth rate of 5% compared to 2019’s 1.5%, a great improvement of the country’s medium-term growth prospects.

Vedanta to Resume Production at KCM

Vedanta will take back ownership of Konkola Copper Mines (KCM), four years after the group was removed from its operations in Zambia by Edgar Lungu’s government. It was announced earlier this month that Vedanta, owned by Anil Agarwal, will invest $1 billion over the next five years to revive KCM. It will also fund $250 million of payments to local creditors of the mine to restore its majority stake, as well as a one-time payment of K2,500 to each mineworker.

Vedanta left the mine in 2019 when Lungu, in pursuit of nationalised mining across Zambia, seized control of it. The PF then used its 20% stake to place KCM in provisional liquidation. Since 2021, however, Hichilema’s government has been making efforts to reanimate the copper sector. This deal struck with Vedanta to restore KCM’s mining operations is one of the many new government initiatives to drive growth in the mining sector.

Anil Agarwal, Vedanta’s owner, said that the goal of the mining company would be to “become a fully integrated producer of copper and cater to India’s fast-growing demand while also making Zambia the leading producer of copper in the world”. Vedanta has pledged to double annual production to 100,000 tonnes, with the goal of reaching 200,000 tonnes as quickly as possible.

Chinese Firms to Invest $1.4 Billion in Zambia

Albert Halwampa, Director General of the ZDA, has announced pledges by Chinese firms to invest in Zambia to the total of $1.4 billion. This came during President Hakainde Hichilema’s six-day visit to the People’s Republic of China, undertaken to enhance economic diplomacy between the two countries. There, he addressed the country’s potential investors at the Zambia-China Investment and Tourism Promotion Conference in Jinggangshan, Jiangxi Province.

Hichilema’s itinerary also included visits to local authorities, various heads of industry, and investors. Upon his return, Hichilema announced the economic relationship between the two countries had been upgraded to a Comprehensive Strategic and Cooperative Partnership, with special focus on the areas of mining, agriculture, clean energy, and infrastructure.

The investments by Chinese firms in Zambia include: $800 million by Pingxiang Huaxu Technology for a wind and solar power project; $450 million for a photovoltaic solar project in Lusaka; and $290 million in lithium battery manufacturing by Jiangxi Special Motor Company.

Diplomatic highlights of Hichilema’s visit included meetings with President Xi Jinping and Zhao Leji, Chairperson of the Standing Committee of the National People’s Congress. The Zambian president also met with China’s Prime Minister Li Qiang, and expressed his “deep appreciation” for Li’s leadership during Zambia’s complex debt restructuring negotiations.

OTHER NEWS

Zambia’s copper FDI deal positive for growth and external liquidity 12.09.23, Fitch Ratings

Hope for Zambia’s path to sustainable development 15.09.23, United Nations

China, Zambia to encourage greater use of local currency in trade, Chinese state media report 15.09.23, Reuters

Liquid Intelligent Technologies Zambia launches Azure Stack, heling businesses access cloud solutions that meet local compliance requirements 21.09.23, African Business

China and Zambia: A new chapter beyond debt? 22.09.23, The Diplomat

United States supports construction of Mukungule Community Resource Board Office 22.09.23, African Business

Europe lines up African minerals pact to ease reliance on China 27.09.23, Bloomberg

UPCOMING EVENTS

AFSiC: Investing in Africa - 09-10.10.23, London ,UK

FT Africa Summit - 12.10.23, London, UK

UK-DRC Energy Transition Investment Forum - 16.10.23, London, UK

US-Africa Trade and Investment Global Summit 2023 - 18-21.10.23, Atlanta, Georgia

BackChat Season 2 Ep.1: Swedish Ambassador Johan Hallenborg

Tune in as Choolwe Chibomba speaks with Johan Hallenborg, Swedish Ambassador to Zambia, as they speak about sustainable mining in the country as well as the positive impact the debt restructuring deal has had on investment into the country.

Mopani Copper Mines in Zambia Attract Major Interest from UAE’s IHC

Zambia’s state-owned investment vehicle ZCCM took control of Mopani Copper Mines back in 2021, after global commodities powerhouse Glencore sold its stake for $1.5bn. Since then, ZCCM have been searching for new investors and received a lot of interest.

Mopani Copper Mines is a prized national asset in Zambia, managing one of Africa’s largest copper deposits. Despite unprecedented difficulties in the past year and mismanagement by the previous government under Edgar Lungu, the mine remais an appealing asset for global investors.

This is especially the case in view of current President Hakainde Hichilema’s major efforts to revamp the Zambian economy towards prosperity, for which mining plays a major role.

Mopani Copper Mines Facility.

President Hichilema has placed specific emphasis on copper production, setting an ambitious target of producing over three million tonnes of copper nationally by 2032. His recognition of copper’s significance has played a major part in the renewed interest of external investors in Zambia, putting the country emphatically back on the map.

Copper is a crucial component in everything from power lines, to electric cars and renewable energy infrastructure. It is an essential component for lithium-ion batteries, demand for which is soaring thanks to the electric vehicle boom. Mopani is therefore a pivotal asset for technological development both globally and within Zambia.

Abu Dhabi’s International Holding Company has now emerged as the newest outfit looking to invest in Mopani, according to reports by the Financial Times. The IHC is the UAE’s largest listed company. Its bid rivals the efforts of Sibanye-Stillwater, the multi-national mining company based in South Africa.

IHC’s head office in Abu Dhabi.

Since two Chinese corporations, Zijin Mining and Norinco (a defence company), which both initially contended for the mine, recently dropped out, Sibanye-Stillwater had been the main contender. Zijin withdrew because of delays on the Zambian side of the process, while Norinco had sanctions imposed on it by the US government.

The fresh interest from IHC signals the growing influence of Middle Eastern wealth in the global mining industry as well as the increasingly diversified investment in the Zambian economy.

Zambia, bilateral creditors agree debt rework memorandum of understanding

MARRAKECH, Morocco, Oct 14 (Reuters) - Zambia has agreed a memorandum of understanding (MoU) with its bilateral creditors on restructuring about $6.3 billion of debt, almost three years after the southern African country defaulted, the finance ministry said on Saturday.

Zambia was the first African country to default on its debt in the pandemic era and its restructuring process saw it agree broad terms to rework the debt with official creditors including China and members of the Paris Club of creditor nations in June.

"Each official creditor will now begin their internal process to sign the MoU. Following the signing of the MoU, the terms will be implemented through bilateral agreements with each member of the OCC (Official Creditor Committee)," a ministry statement said.

The agreements will include an average extension of debt maturities of more than 12 years, with interest rates set at 1% during the next 14 years and up to 2.5% after that. There is a mechanism to increase payments if Zambia's economy performs better than expected.

Zambia will pay about $750 million in the next decade compared to almost $6 billion that was due to official creditors before the debt restructuring.

"The next step is to secure a comparable agreement with our private creditors," Zambia's finance minister, Situmbeko Musokotwane, said.

Zambia is committed to remaining in arrears to its commercial external creditors, the ministry said, until it secures a debt deal with comparable terms to the official creditor agreement.

This article originally appeared on Reuters

Zambia Becomes Sixth African Country to Receive Starlink’s High-Speed Internet Service

Zambia has officially become the sixth country to receive SpaceX’s Starlink internet service, providing high-speed broadband and uncapped service to even remote regions of the country via satellite. It is considered the world’s most advanced broadband satellite internet, marking an exciting step forward in Zambia’s journey to deliver internet access to more of its population. 

Starlink satellite in orbit

Developed at Elon Musk’s pioneering SpaceX, Starlink has become the world's first and largest satellite constellation, using low Earth orbit to deliver broadband internet that is capable of supporting optimal digital performance in business, streaming, online gaming, video calls and more. Through advanced satellites and user hardware combined with deep experience with spacecraft as well as on-orbit operations, Starlink promises to deliver high-speed, low-latency internet to users all over the world.

The news also comes as a major step forward for Zambia in delivering on its target of 80% of citizens having access to the internet by 2026.

More efficient broadband will allow for a greater use of digital technologies in the Zambian economy; reduce government transaction costs and the costs of business through digital optimisation; improve the adoption of digital solutions through empowering and enabling business services and entrepreneurship; and enhance digital systems and the transfer of data, improving sector-specific outcomes in secondary towns and rural areas.  

Starlink also caters for the ability to offer internet connectivity to those in more remote areas. By using satellites to transmit data, Starlink does not have to rely on ground based infrastructure but can provide signal directly to schools, homes, and businesses in rural areas.

President Hakainde Hichilema opened talks directly with Starlink in 2022, as part of his government’s work to ensure all Zambians can have access to high quality and affordable internet. As a result, more Zambians will be connected across the world and able to participate in the ever-growing digital economy. 

President Hichilema meeting with Starlink representatives

The launch of Starlink in Zambia further demonstrates how an engagement with external partners and the private sector can open up access to better services for its people. The government can be satisfied by achieving a landmark step forwards in the target set by its Presidential Delivery Unit (PDU) – to deliver digital inclusion that can ensure 80% of Zambians have access to the internet by 2026.

This digital inclusion will also massively support the government’s goal to facilitate greater uptake of its flagship Constituency Development Fund (CDF). This fund provides capital to community projects, local infrastructure, and business at a constituency level and can be accessed via the internet. Under President Hichilema, the CDF has expanded to K27 million ($1.26 million) per constituency.

Furthermore, internet connectivity is paramount for tackling inequality. By allowing more citizens to have affordable and efficient internet connections, jobs and education will become more accessible, helping to reduce poverty.

President Hichilema’s pursuit of Starlink is vindicated by recent research, which shows that universal and affordable internet coverage can not only raise economic growth per capita by at least 2% annually, but also reduce the number of people experiencing poverty by 1%. Coupled with infrastructural investments in human capital, such as education or training, this could even rise to 5% and 2.5% respectively.

Starlink in Zambia

Starlink has already had a positive impact in other African countries. In May 2022 Musk announced Starlink’s entry into Africa, beginning with Nigeria and Mozambique. The service was already active in Nigeria by January 2023, with then President Buhari even boasting of the 100% broadband connection that Starlink provided.

Mozambique has since witnessed revelations in its telecommunications, as more people have been provided with access to the same level of services as those in more developed countries. The country’s quality of education has also increased drastically, with far easier access to online resources and educational softwares. Other long-term benefits of economic growth are sure to follow.

Zambia’s Creditor Group Sees $6.3 Billion Debt Deal in Days

• Progress on talks has been slow since June deal-in-principle

• Group plans MOU on $6.3 billion of debt by end of IMF meeting

Zambia’s official creditor committee plans to sign a memorandum of understanding to restructure $6.3 billion of debt by the close of the International Monetary Fund’s annual meeting next week, two people familiar with the matter said. The nation’s dollar bonds rallied.

The government has made slow progress in talks since June, when it reached a deal-in-principle with the committee co-led by China and France. The agreement would see the interest rates cut to as low as 1% and the loans only repaid in 2043, with a 40% reduction in net-present value of the debt.

Zambia, which became Africa’s first pandemic-era sovereign defaulter in 2020, has struggled to come to an deal with creditors. Earlier this year, the IMF withheld a near-$190 million disbursement because of delays in the group agreeing to debt relief. China is by far Zambia’s biggest bilateral creditor.

While they are targeting to sign the pact next week, technical aspects are still being discussed and it may not be possible to conclude in time, one of the people said, who asked not to be identified as the information isn’t public. The nation will finalize and execute the memorandum of understanding by the end of the year, Finance Minister Situmbeko Musokotwane said Sept. 29.

Debt Distress

Emerging market debt distress and China’s role as a major lender, will be a key topic at next week’s IMF meetings in Marrakesh, Morocco. Some of Sri Lanka’s official creditors are also pushing to reach their own deal ahead of the gathering to restructure its liabilities without the participation of China. The IMF is helping to push a broader “roundtable” to hammer out the way forward on handling debt treatments between the Paris Club, China, private creditors and others.

Zambia’s July 2027 dollar bonds jumped to their highest in two weeks and were quoted at 55 cents on the dollar after reports of the imminent deal.

The Paris Club, an informal group of mostly developed countries of which China is not a member, last week expressed confidence that an agreement will be signed by the IMF’s meetings, one of the people said. The club didn’t immediately respond to an email seeking comment.

Zambia also still needs to reach a restructuring deal with commercial lenders, including the holders of $3 billion in eurobonds, that provides comparable treatment to what the official creditors agreed to.

This article originally appeared on Bloomberg.

Barrick Gold to invest nearly $2 bln in Zambia mine to raise copper output

Barrick Gold (ABX.TO) said on Wednesday it would invest nearly $2 billion as part of a project to increase copper production at its Lumwana mine in Zambia.

The expansion is part of the company's plans to extend the life of the mine to 2060. Zambia is Africa's second-largest copper producer after its northern neighbour, the Democratic Republic of Congo.

The project aims to complete the full feasibility study by the end of 2024, bringing the expanded production forward to 2028, the company said.

Barrick had in July said it was keen to explore more copper deposits in Zambia and Congo, seeking to expand its presence on the African copperbelt.

This article originally appeared on Reuters.

Billionaire-backed KoBold Metals plans new Zambian copper mine within a decade

NAIROBI, Sept 25 (Reuters) - California-based KoBold Metals, whose backers include billionaires Bill Gates and Jeff Bezos, said it aims to start producing copper and cobalt at a project in Zambia within 10 years.

KoBold is spending about $150 million to accelerate its search for more deposits at the Mingomba project, located along the fabled African copper belt.

The additional studies will be completed in 2024, said Mfikeyi Makayi, the Zambian CEO of the Silicon Valley start-up.

"It's a very attractive project and we have said within a decade we would want Mingomba to be a producing mine," Makayi told Reuters.

KoBold uses artificial intelligence to search for copper, cobalt, nickel and lithium that the world needs for the clean energy transition and to accelerate growth in electric vehicles.

KoBold is backed by Breakthrough Energy Ventures, a climate and technology fund whose other backers include Virgin Group's Richard Branson and Bridgewater Associates' Ray Dalio.

The company's investors understand the lengthy period it takes to build the mine and that securing supplies of these metals is critical, Makayi said.

"They may not be your traditional, conventional backers, but the global need is so critical, it's basically a crisis," Makayi said. "That's why the buy-in is there, for people to be willing to be with us for the long haul, that just shows the commitment to what we are doing."

KoBold also searches for critical metals with BHP Group (BHP.AX) and Rio Tinto (RIO.L) at projects in Australia. Commodity investor EMR Capital and Zambia's ZCCM-IH (ZCCM.LZ) also own stakes in Mingomba.

The United States is looking for alternative sources of supply for critical metals and the funding from American investors has enabled KoBold to ramp up exploration, Makayi said.

KoBold wants to find more deposits as big as Mingomba in Zambia and would also explore opportunities in Botswana, Namibia and the Democratic Republic of Congo, Makayi said.

She wouldn't say if KoBold would partner with BHP and Rio Tinto to develop Mingomba. KoBold's own internal capacity could advance the mine, Makayi said, when asked if the firm would consider a joint venture.

The deposit has a defined resource of about 247 million tons of ore with an average grade of 3.64% copper, or an estimated 9 million tons of copper, according to KoBold.

"Maybe they will come in, it doesn't have to be in Zambia, it could be Namibia or Botswana. They're our partners but those discussions are yet to be had," Makayi said.

Reporting by Felix Njini; Editing by Lincoln Feast and Anil D'Silva.

This article originally appeared in Reuters.

BackChat Ep. 5: Albert Halwampa

This episode we speak with Albert Halwampa of the Zambia Development Agency to understand more about investing in Zambia and what his projections for the country are for the next 12 months.

Lobito Corridor Railway Line Linking Zambia, the DRC, and Angola Supported by the US and EU

Zambia is one of three countries at the heart of a planned trans-African railway line connecting southern Democratic Republic of Congo (DRC) and northwestern Zambia to regional and global markets through the port of Lobito on Angola’s Atlantic Coast.  

The original railway line, which will be used as the foundation for the Lobito Corridor, was first constructed early in the twentieth century but severely damaged during Angola’s civil war. The new projected line will run along the existing railway for 1,300km across the country, connecting the Lobito port to Luau in eastern Angola. It will then extend another 400km through to Kolwezi in the DRC and Zambia, in the heart of the copper belt region.

Presidents Tshisekedi, Lourenço and Hichilema at the ceremony for the concession transfer the corridor (DRC Presidency)

A Partnership of Countries and Companies

On 4 July, the presidents of the three countries – Zambia’s Hakainde Hichilema, DRC’s Félix Tshisekedi, and Angola’s João Louenço – gathered at the Lobito Corridor Ceremony to mark the official transfer of operational concession for the railway line and mineral terminal to the Lobito Atlantic Railway (LAR) consortium joint venture company.

LAR is comprised of Trafigura, a market leader in the global commodities industry, Mota-Engil, an international construction and infrastructure management company, and Vecturis SA, an independent rail contractor.

Jeremy Wier, speaking on behalf of the LAR concession companies, described the corridor as “a partnership between the private and public sectors”, as well as a partnership of three countries and three companies. “We believe the Lobito rail corridor has huge potential to boost the development of sectors along the line including heavy industry, agriculture and mining, creating new jobs and opportunities”, he added.

Trafigura of LAR has revealed its plans to invest $455 million in Angola and up to $100 million DRC. Its plans for Zambia are yet to be announced.

Support from the US and the EU

On 9 September, at the G20 Forum in India, a joint statement was released from the United States (US) and the European Union (EU), welcoming the project and promising the support of the two countries.

As a first step, the US and EU have pledged to launch feasibility studies for a greenfield rail-line expansion between Zambia and Angola. They also promise to upgrade critical infrastructure across sub-Saharan Africa in order to “unlock the enormous potential of this region”.

The region is rich in critical minerals, such as copper, cobalt, manganese, zinc, and lithium. The Corridor would offer the shortest route to transport these minerals from inland to the coast; various routes previously used – such as through South Africa, Tanzania, Namibia, or Mozambique – take longer. The estimated average travel time from southeastern DRC to the coast will be cut from 30 days to eight.

Map of the Lobito Corridor (US Government)

The US-EU statement says, “By significantly reducing the average transport time, the new railway will lower the logistics costs and carbon footprint of exporting metals, agricultural goods, and other products, as well as for future development of any mineral discoveries”.

The Corridor will also be hugely beneficial for the region’s import economy. Mining inputs, as well as agricultural products and consumer goods, can be channelled into the region at greater speed.

Critical to the Green Energy Transition

The Lobito Corridor development is inextricably tied to the global transition towards clean energy systems. A plentiful supply of critical minerals is essential to this shift: the International Energy Agency said clean energy technologies, such as solar photovoltaic (PV) plants, wind farms, and electric vehicles generally require more wind to build than their fossil-fuel equivalents. It is therefore central to the project that critical minerals such as copper, cobalt, and lithium are mined in high quantities in the countries linked by the Corridor.

The new railway line will aid a greener and brighter future in the region in other ways. Rail has a much lower carbon footprint compared to road transport. In a statement released to mark the transfer of the railway services concession, LAR said the development of the rail corridor “promises environmental and safety benefits” by removing trucks from the road and thus reducing border delays and road traffic accidents, as well as cutting air pollution and carbon emissions.

Additionally, the US and EU have said they would cooperate with the three African countries in growing agricultural value chains to enhance local food production for the region’s growing population, as well as pledging support for local Small and Medium Enterprises (SMEs) and economic diversification.

The international and regional communities’ support for the Lobito Corridor project demonstrates its potential as a catalyst for growth and investment in Zambia, as well as for the transition to clean energy globally.  

BackChat Ep.4: Wika Kawina

Tune in as Choolwe Chibomba catches up with Wika Kawina of Wilocate Logistics on her hopes for Zambian business in the next 12 months as well as her experience in the logistics industry.