Additional $500 million to be invested into Lumwana Mine
President Hakainde Hichilema officiated the groundbreaking ceremony for the Lumwana Mine Super Pit in Kalumbila District, marking a pivotal milestone in Zambia’s mining sector. The event, held on a one-day working visit to the North-Western Province, signals a new era for the country, with significant investments poised to strengthen Zambia’s standing in the global copper industry.
The expansion of the Lumwana Mine, spearheaded by Barrick Lumwana, will see an estimated $500 million USD invested in infrastructure development, operational expansion, and advanced mining technologies. This substantial investment is expected to create over 3,000 direct jobs during the construction phase, with an additional 1,500 long-term jobs upon completion.
“This is a momentous occasion that reflects our ongoing progress in building a robust, globally competitive mining industry,” President Hichilema stated. “Copper is rapidly becoming a critical mineral on the world stage, and this project ensures that Zambia remains a key player.”
President Hichilema extended his gratitude to Barrick Lumwana for their dedication to the project and their commitment to collaboration, ensuring the success and impact of the Super Pit expansion.
During his visit, the President also engaged with traditional leaders and addressed a public rally at Manyama in Kalumbila District, where he interacted with local residents.
President Hichilema departed from Solwezi Airport at 17:40 hours, seen off by North-Western Province Minister Robert Lihefu, along with senior government and UPND officials. His visit underscores the government’s commitment to fostering development and economic growth in the region through strategic partnerships in the mining sector.
This article originally appeared on Lusaka Times
Zambia Bonds Rally as Morgan Stanley Praises Budget Restraint
Zambia’s dollar bonds climbed after its 2025 spending plan won praise from Morgan Stanley even as it drew concern from locals battling with the impact of the nation’s worst drought in a century.
The advance on its $1.7 billion in notes due 2033 sent yields tumbling by the most on record, reaching 7.86%. They’ve dropped more than 30 basis points since Finance Minister Situmbeko Musokotwane announced the budget on Sept. 27, reversing a weakening trend that started after the government completed a debt restructuring in June.
The bonds have performed so well that Secretary to the Treasury Felix Nkulukusa on Monday said the window may be closing to exchange them in a potential debt-for-nature swap.
Neville Mandimika, emerging-markets strategist at Morgan Stanley, upgraded his view on Zambia’s bonds to “like” after the spending plan showed a strong fiscal performance, with revenues exceeding expectations and expenditures controlled in the first half of 2024.
The outlook showed room for further consolidation next year, which will be helped by rising output and prices for copper, Zambia’s biggest export, Mandimika said.
Still, Musokotwane’s plan to trim 2025’s fiscal deficit to 3.1% from 6.4% estimated for this year means tighter spending controls.
Read the original piece on Bloomberg here.
BackChat Season 3 Episode 4: Lucas Robinson
Our latest episode of BackChat features Lucas Robinson of Renew Capital.
With a focus on technology, Lucas speaks openly about his excitement regarding the vast opportunities available to invest within Zambia and the positive impact which government reforms are having on the investment climate.
‘You ain’t seen nothing yet’ - Oxford Professor Praises Future of Zambia’s Economy
Oxford University Professor of Economics and Public Policy Paul Collier has praised President Hakainde Hichilema’s record in government, arguing that he inherited a difficult position and has now positioned the country for future economic growth.
Speaking to Zambia Is Back’s ‘BackChat’ program, Professor Collier said, “The change that President Hichilema will achieve in a second term will set a role model for the rest of southern Africa. Reforms will extend beyond minerals - to agriculture and new businesses.”
The British Academic explained that Zambia’s economic history demonstrates the urgent need for President Hichilema’s reforming agenda. Citing Chile as an example of a fellow copper exporter, “neck and neck” with Zambia 50 years ago, Collier highlights the different trajectories of the two nations - Chile’s GDP Per Capita is now over 15 times Zambia’s.
Professor Collier attributes the two countries’ divergent economic fortunes to poor management under a corrupt political class in Lusaka, where political power alternated between the two largest ethnic-based parties. Meanwhile, he says, mining and agriculture were underdeveloped.
Professor Collier said he was particularly impressed by President Hichilema’s commitment to political devolution, saying it “woke me up” to Hichilema when he was still an opposition candidate. The President’s National Decentralization Policy and Zambia Devolution Support Program (ZDSP), launched in May of last year, has now kicked off what Collier calls ‘long overdue’ decentralisation.
The move to devolution signalled the government’s commitment to bringing government services closer to the people and promoting accountability and transparency among local authorities and regions. Ultimately, the aim was to reduce corruption and boost international investment.
President Hichilema greets the local community in Zambezi District, NW Province
Asked if he thought the country was in a stronger position now than under the previous government, Collier responded that whilst Zambia is still in a difficult position, it is “through no fault of President Hichilema.”
The ongoing droughts are a major setback for Zambia, just as the government nears the end of a slow and painful debt-restructuring process after it became Africa’s first pandemic-era sovereign defaulter in 2020. This “double whammy”, as Collier terms it, has made life very difficult for Zambians. Staple corn harvests fell by 54% to a 16-year low, while hydropower generation - which accounts for about 85% of Zambia’s electricity supply- has plunged, leading to rolling blackouts lasting at least 12 hours daily.
Collier contends that the situation would be a lot worse if President Hichilema were not in power. Regarding Hichilema’s ability to secure international support, Collier said, “It’s the very top of international agencies, the very top of America and the very top of Britain, which shows the level of authority and respect that President Hichilema commands in international circles”. President Hichilema has also taken significant action to tackle the energy crisis, accelerating private investment in new energy, expanding the use of solar panels, and increasing the grid supply through new energy providers.
President Hichilema has expanded the use of solar panel within Zambia to help tackle the current energy crisis.
There are significant signs that Zambia is tempting investment back in. In 2023, the Zambia Development Agency (ZDA) reported pledged investments totalling US$39.97 billion, a significant increase from US$8.11 billion in 2022 and US$3.3 billion in 2021. The number of committed jobs also rose sharply from 24,585 in 2021 to 160,280 in 2023.
Last week, Moody’s Ratings upgraded Zambia’s long-term foreign-currency issuer rating to Caa2 from Ca, which is a step in the right direction. Hichilema’s government’s strong performance under its IMF program “anchors the agency’s expectations of continuing gradual institutional improvement,”said Moody’s.
Looking ahead, Professor Collier believes there are two keys to growth and economic development and that President Hichilema’s business acumen and economic reforms are essential to both.
The first key is finding venture capital to catalyse new businesses and sectors; in Collier's words, “It’s not pick a sector, it's pick a process”. The process of experimentation, with risk finance investing in small firms led by young Zambian entrepreneurs, is essential to diversifying the economy and expanding Zambia’s middle class.
The formulation of a new startup bill and community-allocated Constituency Development Funds (CDF) show that Zambia is setting the stage for redefining its economy, focusing on innovation and entrepreneurship, and making capital access easier.
The second key to development according to Collier, is a “gradual struggle to win the battle for productivity across the economy.” In particular, the development expert believes that mining on the Copperbelt, agriculture and Small and Medium-sized Enterprises (SMEs) can all flourish and become more productive in Zambia. “This is the way to make sustainable improvements,” he argues.
Professor Collier says agriculture is e key to developing Zambia's economy
All in all, Professor Collier firmly believes that President Hichilema is in a position to win the next election and that by the end of the extra seven years, “people in Zambia will be materially more prosperous because they will be more productive.”
You can watch the full interview with Professor Collier on the latest episode of BackChat.
BackChat Season 3 Episode 3: Professor Paul Collier
This week Choolwe Chibomba speaks with Professor Paul Collier of the Blavatnik School of Government at the University of Oxford. He specialises in the political, economic and developmental predicaments of low-income countries.
In this episode, Professor Collier speaks on topics including the work that President Hichilema is putting in to resolve current issues within the country, investment opportunities outside of mining, and what a potential second term for President Hichilema would mean for the Zambian economy.
All systems go for Arc’s Zambia copper JV with Anglo
Base metals exploration development company Arc Minerals says its copper JV with Anglo American in Zambia remains firmly on track.
Anglo in May rebuffed an all-share takeover bid from BHP which was focused on its copper assets – and Anglo’s new strategy, unveiled in the heat of that battle, is also drilling down on the red metal.
“It is all about copper, and that is frankly for Anglo and all other majors the No. 1 priority, at least the ones exposed to base metals,” Nick von Schirnding, director and executive chairman of Arc Minerals, said in an interview.
“I think it’s the most exciting prospective copper tenement in the world, certainly in Africa.”
Von Schirnding said the $90m project in the Dome region of the Zambian Copperbelt was fully funded and that drilling was set to resume in June. About $75m of that is “going into the ground” to support exploration.
“We started drilling late last year but the rains caught up with us. We drilled one deep stratigraphic hole down to 950m and that showed all kinds of interesting things including not only copper but also nickel mineralisation,” Von Schirnding said.
“That will help to better inform us about the upcoming drilling campaign. That will be very significant and probably last until late November/early December, depending on when the rains kick in.”
Arc’s tenements span 870km2 and are near First Quantum Minerals’ Sentinel and Kansanshi copper mines and Barrick’s Lumwana mine.
Industrial-scale copper mining started in Zambia almost a century ago, but there is still a lot of unexplored ground there. Exploration activities and capital investment were stymied after the Zambian government nationalised the industry – including Anglo’s assets at the time – in 1969.
The subsequent re-privatisation set the industry on a roller-coaster ride through successive Zambian governments, some of which were far less investor-friendly than others.
But Hakainde Hichilema, who won the 2021 presidential election, has worked hard to woo investors and create an environment more conducive to mining, which remains the lifeblood of the land-locked Southern African country’s economy.
“If you look at what the new administration in Zambia has done to turn this ship around, it’s been very impressive. I have met several senior people in the president’s office who have been tasked with implementing the changes that he wants to implement and that includes getting rid of the bad apples and sorting out historic corruption,” Von Schirnding said.
He pointedly noted that this was “easier said than done, as we see with President Cyril Ramaphosa in South Africa who had dealt with similar issues”.
Von Schirnding also said the Dome region in Zambia had reasonably good infrastructure, given its proximity to existing mines.
“There is no shortage of water and there is power up there that we can access. The road network is mixed but we have graded roads over the period that we have been up there, and the government has said that they are going to put more infrastructure in that north west part of Zambia, and that all can be done,” he said.
“And if you look at what First Quantum has done with their investments around their mines, tarred roads and things like that, that is what mining investment can do to uplift what is a historically poor region of Zambia.”
One open question is funding for the project when it moves beyond the exploration and development stage.
Concerns have been raised about the state of Anglo’s balance sheet and its ability to bring its copper assets – which are mostly in Latin America – to fruition. That is one of the reasons why at least some of Anglo’s shareholders were willing to entertain talks with BHP.
But Anglo plans to sell off its steel-making coal assets in Australia and diamond giant De Beers, and is slowing capital outlay on its fertiliser project in the UK. And it is directing its capital flow to copper. Some of that will conceivably trickle to a country where it was mining copper decades ago.
Von Schirnding won’t be drawn on Anglo’s recent restructuring plans, unveiled in May, in which the group intends to sell its 85% stake in De Beers, unbundle a 79.2% stake in Anglo American Platinum and sell its metallurgical coal assets in Australia.
But he was once high up in Anglo’s pecking order as head of investor relations and corporate affairs. That was in 1999 when the group listed its shares in London, a controversial development at the time because it signalled Anglo’s intention to unmoor itself from its South African base. He ended a 20-year association with Anglo in 2010 before embarking on a varied journey through the Asian, African and South American mining industries. He took his seat at Arc in 2017.
Von Schirnding remains bullish about the company’s prospects. “The excitement starts now,” he said in an October conference call to investors. The deal with Anglo was nothing short of the best exploration earn-in ever drafted, he added. Since then, investors seemed to have cooled on its prospects. At the time of writing, shares in the company had halved.
This article originally appeared on MiningMX
Zambia Investor Briefing: August 2024
OVERVIEW
The Zambian Development Agency (ZDA) recorded an impressive $8.9 billion in actualised investments between 2021-2024. In a statement the ZDA said “The USD$8.9 billion was recorded from 440 companies out of the 1048 companies registered between 2021 and 2024. Data from the 608 companies is still being awaited due to slow responses, once received the final actualised amount will be communicated accordingly”.
ZDA Director General Albert Halwampa will be speaking at the Africa’s Financial Services Investment Conference (AFSIC) 2024 in London 7-9 October. Halwampa will discuss investment opportunities available in Zambia including energy, agriculture, infrastructure development and manufacturing among others. Halwampa wrote in African Business that “Zambia is back in business” with $40 billion in investment committed in 2023 – up from $8.11 billion in 2022 and $3.3 billion in 2021.
President Hakainde Hichilema presided over the revival of Konkola Copper Mines (KCM) where he praised Vedanta Resources, KCM’s operator, for working with the government to get the mine back into operation.
Mopani Copper Mines successfully produced its first 200 tonnes of copper anodes since new equity partner, International Resources Holdings (IRH), took a 51% stake following its $1.1 billion capital injection in April.
Zambia reopened its border with neighbouring DRC, reviving the copper trade route and allowing goods to once more flow between the two nations. Shortly thereafter, the first shipment of US copper from mines in the DRC were loaded for transportation along the Lobito corridor, a key export route connecting mines in both Congo and Zambia to Lobito Port in Angola.
Sir Paul Collier, Professor of Economics and Public Policy at Oxford University’s Blavatnik School of Government, has praised President Hakainde Hichilema for reviving Zambia’s economic prospects. Writing in the Financial Times, Prof. Collier said the President had “built a team of competent ministers and advisers and crafted a programme of deep economic reform”.
A CLOSER LOOK
Mining Developments
President Hakainde Hichilema presided over the revival of Konkola Copper Mines (KCM) which he said will create more jobs for Zambians and increase tax revenues. The President praised Vedanta Resources, KCM’s new operator, for working with the government to get the mine back into operation. This follows Vedanta’s announcement in July that the company had arranged the financing of nearly $250 million needed to start paying off KCM’s creditors after it had secured approval from the High Court to take back control of the asset.
Speaking at Chililabombwe on the Copperbelt at the relaunch, Hichilema said “This mine will move two or three hundred thousand metric tonnes so it can contribute towards three million tonnes of copper – our vision”. The President also reiterated the governments “unwavering commitment […] to ensuring that the mining industry remains a cornerstone of Zambia’s economic development”.
In other mining news, Mopani Copper Mines successfully produced its first 200 tonnes of copper anodes since new equity partner, International Resources Holdings (IRH), took a 51% stake following its $1.1 billion capital injection in March. Mopani CEO Charles Sakanya said full operations at the mines are expected start in October of this year.
Elsewhere, Sinomine Resource Group, a Chinese-based mining services group, has invested $600 million in the Kitumba mine in Mumbwa District. The mine was opened last week by President Hichilema who indicated that this success continues to demonstrate a new era of Zambian mining success under the UPND government.
Finally, Zambia’s Ministry of Mines and Mineral Development signed a Memorandum of Understanding (MoU) with Ivanhoe Mines, which aims to further develop Zambia’s mining sector. At the signing ceremony Minister for Mines Paul Kabuswe spoke of Ivanhoe’s impressive track record when it comes to investment across the continent.
Energy and Technology
President Hichilema opened the inaugural Energy Forum for Africa conference at Mulungushi International Conference Centre in Lusaka, for which the theme was ‘Investment Opportunities in the Energy Sector in Zambia and Africa’. In his address, the President reiterated the “various regulatory and legal reforms we’ve undertaken to attract investment in the energy sector”. One month previously, Zambia officially opened up its electricity market to private industry.
Science and Technology Minister Felix Mutati announced Zambia has completed the construction of a ground receiving station which will pave the way for the launch of the country’s first satellite. The government has invested over $14 million in building the ground receiving station, with future plans to launch an earth-observation satellite to help address the challenges brought about by climate change in agriculture, land use and energy.
The ongoing drought is continuing to have a seriously adverse effect on the country’s energy sector, which is highly reliant on hydroelectric power. As part of efforts to diversify and stabilise Zambia’s energy supply for the future, President Hichilema this month announced the start of construction at Maamba Energy’s new 300MW geothermal plant in Southern Province. The facility is expected to come online in 2026.
LONG READS
Economic reforms are tempting finance back to Ethiopia and Zambia (Financial Times, 15.08.24)
Zambia is back in business (African Business, 19.08.24)
The US-backed railway sparking a battle for African copper (Financial Times, 21.08.24)
Scramble for critical minerals spurs and African rail revival (Bloomberg, 25.08.24)
UPCOMING EVENTS
Nairobi, Kenya 4-6 September
London, UK 26 September
Zambia Impact Investment Summit
Lusaka, Zambia 9-10 October
BackChat Season 3 Episode 2: Mafipe Chunga
Tune in to Mafipe Chunga, Managing Director of MCA Zambia and Co-Founder of OneSquareK, a modern, youth focussed housing development. This week Choolwe discusses the country's investment climate, Mafipe's current work and investments as well as President Hichilema's role in attracting investment into Zambia. #ZambiaisBack #Zambia #InvestinZambia #Investing
China to invest $1 billion in railway linking Zambia, Tanzania
China, Tanzania and Zambia signed an initial agreement to rehabilitate a decades-old railway aimed at improving the rail-sea transportation in resource-rich East Africa, Chinese state media said on Wednesday.
President Xi Jinping witnessed the signing of the memorandum of understanding on refurbishing the 1,860 kms (1,156 mile) Tanzania-Zambia Railway Authority (TAZARA) railway with the Tanzanian and Zambian presidents, who were in Beijing attending the Forum on China-Africa Cooperation, according to the state-run Xinhua news agency.
The single-track TAZARA railway was built between 1970 and 1975 through an interest-free loan from China, offering a cargo transport route from Zambia's copper and cobalt mines to the sea on Tanzania's coast that bypasses South Africa and the former state of Rhodesia.
Commercial operations of the line, derided by some Western governments at the time as the "bamboo railway", began in 1976. The multi-year project had involved the construction of two dozen tunnels and hundreds of bridges by tens of thousands of Chinese and African workers.
"China is willing to take this summit as an opportunity to make new progress in the revitalisation of the Tanzania-Zambia railway, cooperate to improve the rail-sea intermodal transport network in East Africa, and build Tanzania into a demonstration zone for deepening high-quality China-Africa Belt and Road cooperation," said Xi, according to state media.
Earlier this year, the World Bank approved $270 million in financing to help improve connectivity between neighbours Tanzania and Zambia and boost regional trade.
In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model.
This article originally appeared on Reuters
$600 million invested into Kitumba mine
Sinomine Resource Group, a Chinese-based mining services group, has invested 600 million United States dollars in the Kitumba mine in Mumbwa district.
The mine was opened last week by President Hakainde Hichilema who indicated that this success continues to demonstrate a new era of Zambian mining success under the UPND government.
“These resources that were here were not attracting investment [under the previous government]. It is because of [previous] leadership.” President Hichilema commented during the opening ceremony. The President added that local residents must take advantage of the project, to reap the benefits of the mine, such as the creation of both direct and indirect jobs related to the mine. It is expected that the mine will contribute to the economic and infrastructure development of the local community.
Kitumba mine is expected to handle 4.5 million tonnes of copper ore annually, and is expected to release 15,000 tonnes of copper per year.
“Now is the time to invest in Zambia’s mining sector, and invest smart”, one officiant commented at the opening ceremony.
The sucess of the investment demonstrates what can be achieved when vision, collaboration, and commitment come together.
ZDA Records US$ 8.9 bn in Actualised Investments (2021-2024)
Statement from the Zambia Development Agency (ZDA) on Friday 23rd August reads as follows:
“As ZDA, we recognise the important role of the media in informing the country of critical messages on Investments, Trade and Business Development.
It is against this backdrop, that the Agency hereby shares highlights for the actualised investments for the past three years as detailed below:
A. Zambia Development Agency Mandate
The Agency under the ZDA Act No 17 of 2022 and Investment, Trade and Business Development Act No 18 of 2022 has the mandate to promote:
1. Both Local and Foreign Direct Investment
2. Trade
3. Business Development for Small Medium Enterprises
B. Performance Overview
The Agency continued to execute its mandate to promote trade and investment through targeted trade and investment missions and by facilitating business development services, all of which were aimed to promote growth and competitiveness of businesses in key sectors of the economy.
1. US$ 8,9 Billion Actualised Investments - 2021 to 2024
The Agency has recorded unprecedented investment promotion activities in the past three years which resulted in US$ 8.9 billion actualised investments out of committed investment of USD 54 billion for the period 2021 – 2024.
The US$ 8.9 billion was recorded from 440 companies out of the 1048 companies registered between 2021 and 2024. Data from the 608 companies is still being awaited due to slow responses, once received the final actualised amount will be communicated accordingly.
The actualised US$ 8.9 billion was against a committed investment value of US$ 7.9 billion, from the 440 companies that responded representing 113% actualisation rate.
Top Ten Investments Actualised
S/N Project name Country of origin Sector Committed Investment (USD) Actualised Investment (USD)
1. FQM Trident Limited British Virgin Islands Mining 1,810,110,000.00 2,248,000,000.00
2. Tuff Boards Limited Zambia Manufacturing 1,381,000.00 906,000,000.00
3. Tim Motors Zambia Limited China Service 4,789,774.00 700,000,000.00
4. United Capital Fertilizer Zambia Company Limited Zambia Manufacturing 1,100,000,000.00 500,000,000.00
5. Shape It Adhesives Zambia Limited Zimbabwe Manufacturing 1,237,500.00 403,000,000.00
6. Sparta Limited Zambia Agriculture 1,755,000.00 350,000,000.00
7. Chenguang Biotech Zambia Agri-Dev Limited China Transport 1,100,000.00 350,000,000.00
8. Konkola Copper Mines PLC India Mining 1,000,000,000.00 312,910,000.00
9. Unified Chemicals Zambia Limited Zambia Manufacturing 220,000,000.00 228,000,000.00
10. Mopani Copper Mines PLC Switzerland Mining 281,000,000 220,000,000.00
11. Others 3,434,415,985.00 2,678,395,601.29
Total 7,855,789,259.00 8,896,305,601.29
Actualisation by Sector
Actualisation rate per sector was as follows:
o Mining recorded the highest with US$ 3.34 billion representing 34.91%,
o Manufacturing was the second highest with US$3.10 billion, representing 34.85%,
o Transport US$1.2 billion, representing 13.2%
o Services US$777 million, representing 8.7%
o Agriculture US$448 million, representing, 5.04%
o Tourism US$80.7 million, representing 0.91%,
o Energy US$77.9 million, representing 0.88%
o Construction US$ 65.2 million, representing 0.73%
Actualised Investment by Province
• Lusaka province recorded the highest value of actualisation of USD 5.3 billion against a committed investment of USD 2.7 billion, representing an actualisation rate of 63.3 percent of the total actualised investment.
• North Western province was the second highest with an actualisation of USD 2.3 billion against a committed investment of USD 1.84 billion, representing an actualisation rate of 27.3 percent.
Jobs actualised
Aside from investments, 36,045 jobs were actualised against committed employment of 29,009 from the 440 companies that responded. This represents an actualisation rate of 124.3 percent from the 440 enterprises monitored. The details are as follows:
• Manufacturing recorded the highest jobs at 12,460 representing 34.5%
• Mining was second with 9,692 representing 26.8%,
• Transport, 6,133,
• Agriculture, 3,049; and
• Services 2,554
Actualised Jobs by Province
• Lusaka province recorded the highest number of jobs with 18,433 jobs created accounting for 51 percent of the total actualised jobs.
• This was followed by Copperbelt province with 10,853 jobs created, representing 30 percent of the total actualised jobs.
Top 10 performing companies monitored by Number of Jobs Created
In terms of the top ten (10) enterprises monitored by jobs created, findings were as follows:
1. Mopani Copper mines PLC ranked highest with 6,010 jobs created
2. First Quantum Minerals (FQM) was second with 3,112 jobs created
3. United Capital Fertilizer Zambia Company Limited, 1,468 jobs created
4. Yalelo Limited - Renewal Quattro Company Limited-Renewal, 1098 jobs created
5. Quattro Company Limited-Renewal, 950 jobs created
6. Mimbula Minerals Limited, 800 jobs created
7. Varun Food and Beverages (Zambia) Limited- Renewal,780 jobs created
8. Yoyo Foods Limited, 700 jobs created
9. A.P.G Milling Limited – Renewal, 640 jobs created
10. Varun Beverages (Zambia) Limited- Renewal, 555 jobs created
Local Business Development Program and Corporate Social Responsibility
• USD 401.8 million was actualized in form of Local Business Development Program and Corporate Social Responsibility.
• In terms of Local Business Development, the enterprises involved in mining and manufacturing, local communities were supported through the subcontracting of various contracts to the enterprises;
• Major CSR activities included building and upgrading of schools. Others were donations, health facilities, grading of gravel roads, support to chiefdoms during traditional ceremonies, provision of transport services during pandemics such as Cholera and Covid-19, prize sponsorship and internship opportunities to deserving students in schools and colleges.
Members of the Press, these are some of the highlights of the actualised investments for the period 2021 – 2024.
The Agency will continue prioritizing monitoring the performance of enterprise registered with regards to actualisation as it provides evidence of accounting for economic benefits accruing to Government for the fiscal and non-fiscal facilitation investments.
C. KEY DRIVERS OF INCREASED INVESTMENT IN ZAMBIA
1. Good Leadership
His Excellency Mr. Hakainde Hichilema President of the Republic of Zambia is providing the good and focused leadership in growing the economy of Zambia as the Country‘s Chief Marketing Officer. He has promoted the country’s untapped investment opportunities far and wide. Investors have responded and they are trooping into Zambia like never before.
2. Robust and consistency policies
President Hakainde Hichilema is providing good leadership across sectors including mining, energy and agriculture sectors, hence providing confidence to the private sector as the drivers of economic growth. The president has established the Public Private Dialogue Forum (PPDF) providing seamless engagement between public and private sector to engage and resolve all red tape and bottlenecks standing in the way of development.
Further the Presidential Delivery Unit has been established to ensure all presidential priorities are delivered on time. This is a game changer in the scheme of doing things and has resonated well with private sector.
3. Stable Macro Economic and Fiscal Policy Fundamentals are now the norm under President Hakainde Hichilema
• Stable inflation,
• Stable Exchange rate
• Restructured debt
• Prudent spending, transparency and accountability
4. Consistent funding to the Zambia Development Agency
The New Dawn government has placed a premium on trade and investment as the means for creating jobs and wealth for the citizens of Zambia. To this effect the government has consistently funded ZDA to ensure execution of trade and investment promotion activities within the country and the rest of the world.
D. ZDA IS APPEALING TO LOCAL INVESTORS TO STEP UP AND TAKE UP OPPORTUNITIES TO INVEST IN OWN COUNTRY
The ZDA Act No 17 has provided for low investment threshold of US$ 50,000.00 to make it easier for local investors to access incentives that include the following:
1. Zero % customs duty on imported equipment and machinery
2. 10 years tax holidays on dividends and profits if set up in the multi facility economic zone and exporting or farming in the farm blocks
3. Extension of incentives to expansion projects- encouraging renewals
4. Opportunities in farm blocks and energy sectors
5. Constituency Development Fund opportunities
I thank you for your attention, God bless you and our great nation Zambia.
Zambia is back in business
Three years ago this month, thousands of Zambians flocked into Lusaka’s National Heroes Stadium to celebrate the inauguration of President Hakainde Hichilema, whose landslide election victory had been built on the promise of growing the economy, creating jobs, and lifting citizens out of poverty.
At the time Zambia’s economy was making headlines for all the wrong reasons. In late 2020 it became Africa’s first coronavirus-era sovereign default. By the time of the 2021 elections, inflation stood at well over 20% and Zambia owed more than $17 billion to foreign lenders, with a large portion of that debt hidden from the public accounts.
The country’s future looked bleak. The mining sector, which accounts for over 70% of total export earnings, 30% of government revenues and 8% of formal employment, was in disarray and the outgoing government’s heavy-handed approach to the industry had seriously spooked investors. While Zambia had long been considered a bastion of stability and progress in the region, its reputation had suffered a serious blow.
Fast forward three years and Zambians once again have good reason to be optimistic about the future. In 2023 the Zambia Development Agency (ZDA) recorded US$39.97 billion in pledged investments – up from US$8.11 billion in 2022 and US$3.3 billion in 2021. The number of jobs committed has also risen dramatically, from 24,585 in 2021 to 160,280 in 2023. As President Hichilema told the European Parliament in 2022, “Zambia is back in business”.
More investors are putting more money in, not just in the mining sector but also agriculture, manufacturing, energy, tourism and infrastructure. Of the US$39.97 billion pledged by investors last year, manufacturing accounted for US$19.72 billion, followed by energy at US$8.9 billion. Investment came from all over the world, from the US to China and from the UK to the UAE.
This turnaround has been achieved through a combination of measures: a mixture of practical reforms and ambitious initiatives designed to drive economic activity and diversify the country’s economic base, while at the same time playing to its strengths and seeking to leverage global trends such as the green energy transition.
President Hichilema has set an ambitious target of increasing copper production to 3 million tonnes annually over the next seven years. This gauntlet that has been picked up by major mining houses such as Mopani Mines and Konkola Copper Mines, who are ramping up production in response to growing demand for copper in industries like electric vehicles.
The President is also seeking to positon Zambia as the breadbasket of southern Africa, transforming more than one million hectares of the country into agricultural land through an innovative farm block program that would help feed the 500 million population of Zambia and her neighbours.
The foundation for everything, however, is good leadership. President Hichilema, who made his name in business before turning his hand to politics, refers to himself as the country’s Chief Marketing Officer. Investors have responded positively to the transparent and consistent policy environment he has fostered, as well as efforts to more actively engage and consult business through initiatives such as the Public Private Dialogue Forum (PPDF) and the Presidential Delivery Unit( PDU).
President Hichilema has been steadfast in prioritising the stabilisation and improvement of the economy so that government can increase spending on public services and raise citizens’ living standards. Over the past three years a huge amount of energy has been channelled into tackling Zambia’s debt – and with good reason. Not only did the 2020 debt default seriously damage Zambia’s reputation among investors but critically between 2018 and 2021 debt repayments increased from 20% to 38% of the national budget, while the allocation to areas such as health and education fell.
In August 2022 the government secured an agreement with the International Monetary Fund (IMF) for a US$ 1.3 billion extended credit facility which has recently been increased to around US$1.7 billion. Government has since restructured US$13.6 billion in debts, cut US$ 900 million from the total and spread payments over a longer time period to ensure the country has a sustainable route forward that gives it the space to invest in public services.
Meanwhile, a robust programme of business reforms and support systems has been rolled out, from boosting market access for local exporters to aboliting double taxation in the mining sector, and launching online applications for both local and international investments through the ZDA.
Hichilema’s government has also positioned the country for long-term, sustainable growth, clamping down on endemic corruption and introducing free education for all primary and secondary school children to become the business leaders and entrepreneurs of tomorrow.
Those who follow Zambia’s progress closely will know that despite all this progress, 2024 has brought unprecedented challenges for the country in the form of an historic drought. This is one of the biggest natural disasters to hit Zambia in modern times, not only threatening food security for more than a million households but also creating challenges in the energy sector, given the prominence of hydropower in our supply.
As the saying goes you should ‘never let a crisis go to waste’ and government has quickly responded by rolling out a raft of measures that are designed to not only alleviate pressure on struggling citizens but also to make the country more resilient against future disasters. These strategies range from promoting early maize cultivation and drought resistant crops, to removing import duty and VAT on solar equipment, as well as fast-tracking large-scale solar plants like the 100MW Chisamba Solar Project in Central Province.
Once again, we are confident that good leadership will see us through this crisis and that the end result will be more sustainable and resilient agriculture and energy sectors that are ready to meet the challenges of tomorrow. There is still much to do in the remaining two years before Zambia’s next general elections and so this momentum must be maintained at all costs. After all, we have a fast-growing population, so strong economic growth and job creation are essential. Today, however, it is worth recognising just how far Zambia has come since we re-opened for business.
This article originally appeared on African Business
Bahrain reaffirms commitment to trade and investment in Zambia
The Kingdom of Bahrain has reaffirmed the country's commitment to fostering cooperation with ZAMBIA in trade, investment, energy and mining.
King of Bahrain HAMAD KHALIFA said this when Zambia's Ambassador to the Kingdom of Saudi Arabia DUNCAN MULIMA presented his letters of credence.
King KHALIFA says the presentation of credentials marks a significant step in Zambia-Bahrain relations, paving the way for a new era of collaboration and cooperation between the two nations.
And Mr. MULIMA has expressed sincere gratitude for Bahrain's steadfast support in various international forums and reaffirmed Zambia's continued commitment to bilateral and multilateral cooperation with Bahrain.
Later, after the presentation of credentials Mr. MULIMA held bilateral meetings with Minister of Municipalities and Agriculture WAEL MUBARAK to explore cooperation in agriculture, municipal development and water resource management sectors.
He also held other meetings with the Chairperson of the Bahrain Chamber of Commerce and Industry KHALID MOAYED and Chief Banking Officer Bahrain Development Bank ALI ARADI.
Mr. MULIMA says the meetings are significant as Bahrain is a key partner for Zambia in the region, offering opportunities for increased cooperation, mutual understanding and benefit.
This article originally appeared on ZNBC
President Hichilema celebrates the inaugural opening ceremony of the Energy Forum for Africa
President Hakainde Hichilema has opened the inaugural Energy Forum for Africa conference at Mulungushi International Conference Centre in Lusaka earlier today. The theme for the first event of its kind is “Investment Opportunities in the Energy Sector in Zambia and Africa”.
Commenting on his Facebook page, the President said that he “took the opportunity to inform participants about the various regulatory and legal reforms we've undertaken to attract investment in the energy sector.” The event has also been utilised as a platform to leverage the opportunity for individuals to bring forwards innovative ideas and solutions to address the current energy crisis within the country, turning the challenge into an opportunity for investment by our citizens.
In addition, President Hichilema noted that he will call on financial institutions within the country to create attractive packages that will enable the Zambian citizens to access funding for investment in the energy sector.
Unlocking of Konkola and Mopani Copper Mines a success for UPND Government - Mine Unions
Mine Unions have described the unlocking of Konkola and Mopani Copper Mines as a success for the UPND in the last three years.
Speaking in Kitwe, National Union of Miners and Allied Workers -NUMAW-President SAUL SIMUJIKA said the resolving of challenges in the mining sector will attract investment.
Mr SIMUJIKA said with the way the mining sector is improving and attracting more investment under the President HAKAINDE HICHILEMA, there is hope for much better working conditions for mine workers and more employment opportunities for Zambians in the sector, with Mopani mine alone bringing in 2,000 jobs alone.
This article originally appeared on ZNBC
Nebula George Heinz Aircraft Manufacturing Plans to Setup Manufacturing Plant in Zambia
Zambia Development Agency (ZDA) Director General Mr. Albert Halwampa met with Nebula George Heinz Aircraft Manufacturing a company that wants to set up an aircraft manufacturing plant in Zambia.
The meeting was also attended by other stakeholders from the Ministry of Transport and Logistics, Ministry of Tourism, Civil Aviation, Zambia Environmental Management Agency and Road Development Agency among others.
Nebula George Heinz Aircraft Manufacturing is an established company in China and the United States of America, specialised in the manufacturing of low altitude flying light public aircraft with carrying capacity of up to 16 passengers and is also specialized in the construction of mini airports. The mini aircraft can land and take off on a runway of less than 200 meters.
The company further intends to construct mini airports in Zambia to promote local tourism, cross-country travel and decongestion of the road network. The first phase will target 50 locations followed by the second phase with 100.
Zambia Investor Briefing: July 2024
OVERVIEW
Vedanta Resources is looking for a partner to boost output at its Zambian copper assets. This follows Vedanta’s announcement earlier in the month that it had arranged the financing of nearly $250 million needed to start paying off Konkola Copper Mines’ creditors after it had secured approval from the High Court to take back control of the asset.
State mining unit ZCCM Investment Holdings has revealed China’s JCHX Mining is planning on investing $300 million into Lubambe Copper Mine, having purchased an 80% stake in the asset from EMR Capital.
China’s Huawei Technologies and the Zambian Government have signed an MoU for the construction of 100 ‘smart villages’, as announced at the launch of the country’s first smart village, Muchila, in Namwala District.
‘Tourism Doing Business – Investing in Zambia’, a recently-published report by UN Tourism, highlights key sectors for investment relating to the country’s tourism industry.
Global Investor CEO Frank Holmes has praised President Hichilema’s attitude towards attracting investment while in government. Writing for Forbes, Holmes highlights how the President’s “pro-business approach, coupled with his commitment to economic reforms and anti-corruption measures, has steadily made Zambia an attractive destination for investors. His administration’s efforts to stabilize the economy, enhance governance and foster a conducive business environment are particularly noteworthy.”
A CLOSER LOOK
Mining Developments
Indian billionaire Anil Agarwal’s Vedanta Resources is looking for a partner to boost output at its Zambian copper assets. The company issued a call for expressions of interest to carry out exploration, development and production as part of its $1 billion investment plan at Konkola Copper Mines (KCM). This follows Vedanta’s announcement earlier in the month that it had arranged the financing of nearly $250 million needed to start paying off KCM’s creditors after it had secured approval from the High Court to take back control of the asset.
Talks to sell a stake in the mine – which holds one of the richest copper deposits in the world – to the UAE’s International Resources Holding (IRH) collapsed after the parties failed to agree on KCM’s value. Reuters reported in April that IRH had put in an offer for a 51% stake for over $1 billion.
Elsewhere, state mining unit ZCCM Investment Holdings has revealed China’s JCHX Mining is planning on investing $300 million into Lubambe Copper Mines, having purchased an 80% stake in the asset from EMR Capital. JCHX plans to “inject new vitality” into the mine, including sinking a new shaft.
These developments come at a time when the country’s copper production is expected to grow more than 40% to 1 million tons between 2025 and 2027, as announced by the Finance Ministry in its medium-term budget plan.
In other mining news, First Quantum Minerals (FQM) has commenced operations at its Enterprise Mine. It is on trajectory to become the country’s largest nickel mine. FQM expects Enterprise will rank in the top ten globally for nickel production when it reaches full strength, boosting Zambia’s bid to become a key supplier of battery metals. According to FQM’s CEO Tristan Pascall, “We had another solid quarter in Zambia and with the work achieved to date, both Kansanshi and Sentinel [FQM’s Zambian copper assets] are well set up for the remainder of the year”.
Energy and Technology
Zambia is to build its second-ever coal-fired power plant after approval was granted by the Energy Regulation Board earlier this month. The 300mw facility will be based in the south of the country. Its construction is to be led by Maamba Collieries Ltd, which has secured $300 million in financing for the project. Work is expected to commence in August of this year and be completed by July 2026. The project aligns with national goals to diversify the energy mix and lessen reliance on weather-dependent hydropower, and will be a welcome boost to the growth of the country’s energy sector.
Elsewhere, China’s Huwai Technologies and the Zambian Government have signed an MoU for the construction of 100 smart villages, as announced at the launch of the country’s first Smart Village, Muchila, in Namwala District. Muchila now has a Rural-Star communications tower providing coverage for the village, while Namwala District has a mini solar grid powering a school and clinic.
President Hichilema, who attended Muchila’s launch ceremony as the guest of honour, said in a statement posted to his Facebook page, “This initiative reflects our government’s strategic approach to forming collaborative partnerships, aiming to achieve a digitally inclusive society”. He added, “Through this project and many others, we aim to foster a culture of digital innovation and entrepreneurship, driving economic growth and jobs created at the grassroots level”.
Tourism
‘Tourism Doing Business – Investing in Zambia’, a recently-published report by UN Tourism, highlights key sectors for investment relating to the country’s tourism industry. Executive Director of UN Tourism Natalia Bayona describes the publication as a “catalyst for Zambia’s future growth” which “provides a roadmap for sustainable tourism development, fostering not only prosperity but also job creation, community empowerment, and SME expansion”.
The publication focuses especially on economic growth and sustainable development. It lists the country’s abundant natural resources, cultural diversity, strategic location, business-friendly environment and attractive investment incentives as among the key reasons to invest in Zambia. In his foreword to the report, President Hichilema writes, “Zambia is one of the most peaceful countries on the continent with warm and friendly people ready to welcome people of any race, religious belief, and background to invest in the sector”.
Meanwhile, the Zambia Development Agency (ZDA) Director General Albert Halwampa addressed delegates at the UN Tourism Regional Commission for Africa and the UN Tourism Regional Conference on Brand Africa in Livingstone. He highlighted the numerous investment opportunities available and the status of Zambia as a competitive tourism investment destination. Halwampa also stressed how the ZDA “facilitates both fiscal and non-fiscal incentives to investors including those investing in the tourism sector”.
Foreign Direct Investment (FDI)
The ZDA has signed a Memorandum of Understanding (MoU) with the Association of Chinese Corporations in Zambia (ACCZ) to enhance investment and trade relations between the two countries. This agreement, signed during the inaugural ACCZ Economic and Investment Summit in Lusaka on 12 July, aims to establish long-term investment projects that will contribute to the economic development of both nations.
ZDA Director-General, Albert Halwampa, highlighted the significance of this partnership: “The symposium indicates investor confidence in Zambia, driven by good leadership and stable economic policies.” The MoU encompasses various areas of mutual interest, including trade and investment, infrastructural development, agriculture, mining, and technological advancement.
Long Reads
Top mining companies commit billions to Zambia’s copper industry (Forbes, 02.07.24)
Helen Lubamba, Stanbic Bank Zambia: Critical moment (CNBC Africa, 09.07.24)
AI needs copper. It just helped to find millions of tons of it (The New York Times, 11.07.24)
Africa’s surprising new age of rail (The Economist, 18.07.24)
UPCOMING EVENTS
4-6 September - Africa FinTech Summit, Nairobi, Kenya
Top Mining Companies Commit Billions To Zambia’s Copper Industry
Last week I had the privilege of participating in a YPO (Young Presidents’ Organization) event held in Victoria Falls, Zimbabwe. One of the main topics of discussion was investment opportunities in neighboring Zambia, a country that, despite its challenges, is a rising star on the African continent, due largely to its copper exports. I was honored to meet Zambian President Hakainde Hichilema, whose pro-business and reform-oriented stance has attracted attention from international investors since his inauguration in August 2021.
Zambia, a landlocked country in south-central Africa and the continent’s 17th largest, has shown remarkable resilience. It has a common law judicial system, the same as the U.K. and the U.S.
Economic growth exceeded 4.7% in 2022, despite the pandemic, the Ukraine war and other challenges.
The Role Of Copper In Zambia’s Economic Resilience
Central to Zambia’s economic stability is its mining sector, which accounted for 17.5% of the country’s GDP and over 70% of foreign exchange earnings in 2021. Copper, the country’s main export, plays a pivotal role in this regard.
As many readers are aware, copper has emerged as an indispensable resource as the world accelerates its transition to renewable energy sources. The red metal’s conductivity and versatility make it crucial for various applications, from electric vehicles (EVs) to solar panels and wind turbines. Zambia’s ambition to produce 3 million tonnes of copper annually by 2032, up from around 800,000 tonnes today, highlights the metal’s importance going forward.
In the early 1990s, we were seed investors in Randgold Resources, as we believed in founder Mark Bristow’s vision. Randgold was purchased in 2019 by Barrick Gold, which has a plan to double its copper production by 2029, according to May’s investor presentation.
Major Investments Fuel Zambia’s Mining Boom
Top-tier mining firms recognize this potential and have announced significant investments in the country. Barrick committed nearly $2 billion in October 2023 to boost copper production at its Lumwana mine. A year earlier, First Quantum Minerals unveiled a $1.35 billion investment over 20 years in its Kansanshi mine and an ambitious solar and wind energy project to power its operations.
Another significant aspect of Zambia’s investment appeal is its potential for surplus hydropower, which accounts for over 80% of the country’s energy mix. Zambia shares several large dams with Zimbabwe, and the possibility of harnessing this surplus energy for data centers presents a compelling investment opportunity. Given the increasing demand for data storage and processing capabilities, particularly in Africa, this could be a game-changer.
Hakainde Hichilema: From Business Leader To Reformist President
As I said, I had the honor of meeting President Hichilema, who’s introduced a renewed sense of optimism in Zambia. He holds a Bachelor of Arts in Economics and Business from the University of Zambia and an MBA in Finance and Business Strategy from the University of Birmingham in the UK. Before his political career, he served as CEO of Grant Thornton Zambia.
Hichilema’s pro-business approach, coupled with his commitment to economic reforms and anti-corruption measures, has steadily made Zambia an attractive destination for investors. His administration’s efforts to stabilize the economy, enhance governance and foster a conducive business environment are particularly noteworthy.
President Hichilema’s pro-America stance is another factor that I think could reassure investors. His administration has been actively courting foreign investment, emphasizing the importance of partnerships with American businesses.
Finally, Hichilema has taken steps to push back against Chinese influence, by renegotiating mining contracts, increasing transparency, diversifying investment and restructuring debt.
Independence Day Travel Expected To Reach All-Time High In 2024
As someone who’s done a lot of traveling this summer, the record-breaking volumes have been impossible to ignore. On Sunday, June 23, the Transportation Security Administration (TSA) broke its record for most people screened on a single day, with nearly 3 million individuals passing through airport security.
The trend is expected to continue. According to the American Automobile Association (AAA), a projected 70.9 million travelers will head 50 miles or more from home over the Independence Day holiday period, marking a significant increase from previous years. Air travel, in particular, is setting new records, with 5.74 million people expected to fly to their July 4 destinations.
Having experienced the busyness of airports firsthand, I’m happy to see such vibrant economic activity. The bustling airports and high travel volumes are clear indicators of a strong economy. This surge in travel not only benefits the transportation and tourism sectors but also contributes to the broader economic recovery.
This article originally appeared on FORBES
World Bank Commits $100 Million to Boost Zambia’s Digital Infrastructure
The World Bank has committed $100 million to boost Zambia’s digital infrastructure and expand internet access across the country. Announcing the Digital Zambia Acceleration Project (DZAP), World Bank Managing Director and Chief Administration Officer Wengcai Zhang emphasized the project’s goal of increasing internet access and digitally enabled services.
During a courtesy visit to Zambia’s Technology and Science Minister Hon. Felix Chipota Mutati, Mr. Zhang outlined that the DZAP will be financed through a combination of national and regional International Development Association (IDA) funds, supplemented by $20 million in unguaranteed commercial financing. The initiative will focus on expanding broadband, last-mile infrastructure, and digital public infrastructure to enhance efficiency in both public and private sectors.
Mr. Zhang highlighted the importance of digitalization in high-impact sectors and the nurturing of employment-ready digital skills. He also announced that the World Bank Board is expected to approve the project by March 2025. In the meantime, a Project Preparation Advance of $6 million is being processed to support initial activities.
The project will establish a Project Implementation Unit within the Smart Zambia Institute, aimed at driving cross-government digital initiatives. Mr. Zhang also expressed support for Zambia hosting the World Skills Africa Competition in Livingstone in April 2025, underscoring its global significance.
Minister Felix Mutati thanked the World Bank for its financial support, noting the critical role of the $6 million Project Preparation Advance in bridging gaps in the Technical Education, Vocational and Entrepreneurship Training (TEVET) sector.
The meeting was attended by World Bank Zambia Country Manager Achim Fock and Milner Makuni, Director of Communication in the Ministry of Technology and Science, highlighting the collaborative effort to propel Zambia’s digital future.
This article originally appeared on TechAfricaNews
ZDA and ACCZ Forge Partnership to Boost Investment and Trade
The Zambia Development Agency has signed a Memorandum of Understanding with the Association of Chinese Corporations in Zambia to enhance investment and trade relations between the two countries. This agreement, signed during the inaugural ACCZ Economic and Investment Summit in Lusaka on 12 July, aims to establish long-term investment projects that will contribute to the economic development of both nations.
ZDA Director-General, Albert Halwampa, highlighted the significance of this partnership. “The symposium indicates investor confidence in Zambia, driven by good leadership and stable economic policies,” Halwampa stated. The MoU encompasses various areas of mutual interest, including trade and investment, infrastructural development, agriculture, mining, and technological advancement.
The agreement also aims to create special economic zones in Zambia, tailored to the interest of both parties. ACCZ will assist in identifying Chinese investors keen on establishing businesses in Zambia, while ZDA will collaborate with ACCZ to enhance operations and provide investment incentives. “We are ready to facilitate and ease all investor-related challenges,” Zambia’s Acting Minister of Commerce, Trade and Industry, Rodney Sikumba, said.
The two organisations plan to host business forums in both countries to promote Chinese investment and trade. “This symposium establishes a foundation for strategic business and economic interaction,” Sikumba added.
Cui Hailiang, a representative of ACCZ remarked that “Chinese enterprises are willing to support Zambia’s industrialisation and social development,” showing the support companies already have for Zambia and its industrial future.
The partnership will explore and promote Zambian products for export to China, aiming to extend the market reach in the Asian country. This collaboration signifies a strengthened bilateral relationship and mutual commitment to economic growth and development.