Barrick Signs MoU with Zambia to Boost Mining and Exploration

Gold and copper mining company Barrick has signed a memorandum of understanding (MoU) with a resources organisation of the government of Zambia, which is aimed at boosting exploration and mining in the well-endowed Central African country.

The collaboration aligns with Zambia's vision of increasing its copper production to three-million tons a year in the coming decades, South African-born Barrick CEO Dr Mark Bristow revealed on Wednesday, when the New York- and Toronto-listed Barrick he leads delivered another outstanding set of financial results, notwithstanding the issues it is having to deal with in Mali, where gold sales were down significantly owing to the restrictions placed on exports by the Malian government.

The MoU has been signed with Industrial Resources Limited or IRL, a subsidiary of the Zambian government’s Industrial Development Corporation.

The purpose is to establish a strategic partnership capable of unlocking maximum mineral potential amid Barrick’s own Lumwana Super Pit copper expansion project in Zambia having advanced to full permitting status.

When Barrick acquired Lumwana copper mine in 2011, it was unprofitable, which resulted in a $5-billion writedown in the past five years. But a focus on cost discipline and exploration has added significantly to its reserves and has extended the life-of-mine by more than 20 years.

“Today, the mine is sustainably profitable and a pillar of our copper growth strategy,” Bristow remarked during the presentation of fourth-quarter results covered by Mining Weekly.

In the three months to December 31, Lumwana reported a stellar set of record quarterly production results that brought the mine back into guidance with considerable cost improvement.

“With the Super Pit expansion feasibility study completed, we're now moving forward with project development following board approval. The feasibility study clearly supports the value of this investment.

"Importantly, Barrick is able to fund the Super Pit expansion through its current and forecast cash flow facilities without needing to issue any new shares or take on additional debt.

“We've appointed our engineering partners and finalised the environmental and social impact studies for which we now have received the permit. We’re also on track with early works design and long lead item fabrication.

“This highlights the big advantage of emerging markets, where large expansions and new projects can be completed much more quickly than in the developed world, but at exactly the same standard,” Bristow noted.

This article originally appeared on Mining Weekly

Zambia and DP World Forge $300 Million Partnership to Develop Transport Infrastructure

Zambia is set to strengthen its position as a regional transport and logistics hub following a proposed $300 million investment by DP World, a leading global port operator. The initiative, which will commence with an initial $50 million injection, will be executed through a Public-Private Partnership (PPP) with Zamcargo Limited, a subsidiary of the Industrial Development Corporation (IDC).

The agreement was announced after a meeting between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna at State House. Mr. Al Banna affirmed DP World’s commitment not only to profit generation but also to enhancing local livelihoods through infrastructure development.

President Hichilema highlighted that Zambia, as a land-linked nation, has the potential to become a pivotal player in regional trade and investment. He emphasized that DP World’s expertise in global logistics would facilitate Zambia’s access to international markets, enhancing its ability to efficiently export and import goods.

The President also underscored the urgency of developing dry port facilities at Walvis Bay in Namibia and Dar-es-Salaam in Tanzania, noting that these sites are critical to improving Zambia’s trade efficiency.

“This initiative aligns with our broader vision of transforming Zambia into a major transport and business hub in Southern Africa,” President Hichilema stated.

The partnership is expected to drive economic growth by leveraging Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure.

DP World Proposes $300 Million Investment

Zambia is set to strengthen its position as a regional transport and logistics hub following a proposed $300 million investment by DP World, a leading global port operator. The initiative, which will commence with an initial $50 million injection, will be executed through a Public-Private Partnership (PPP) with Zamcargo Limited, a subsidiary of the Industrial Development Corporation (IDC).

The agreement was announced after a meeting between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna at State House. Mr. Al Banna affirmed DP World’s commitment not only to profit generation but also to enhancing local livelihoods through infrastructure development.

President Hichilema highlighted that Zambia, as a land-linked nation, has the potential to become a pivotal player in regional trade and investment. He emphasized that DP World’s expertise in global logistics would facilitate Zambia’s access to international markets, enhancing its ability to efficiently export and import goods.

The President also underscored the urgency of developing dry port facilities at Walvis Bay in Namibia and Dar-es-Salaam in Tanzania, noting that these sites are critical to improving Zambia’s trade efficiency.

“This initiative aligns with our broader vision of transforming Zambia into a major transport and business hub in Southern Africa,” President Hichilema stated.

The partnership is expected to drive economic growth by leveraging Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure.

This article originally appeared in the Lusaka Times

Zambia Investor Briefing: January

OVERVIEW

• MINING: President Hichilema has announced First Quantum Minerals' delivery of the High-Resolution Airborne Survey to explore Zambia's minerals. Mines Minister Paul Kabuswe has said he expects Zambia to reach 1 million tonnes of copper production by 2026, leveraging expansion and restoration of mines. Barrick Gold is expanding Lumwana Mine, expecting to double production to 240,000 tonnes annually. Saudi Arabia’s Manara Minerals plans to acquire a stake in Zambia’s copper and nickel assets. KoBold Metals has raised $537 million and has announced that it will focus much of these funds on developing Zambia's Mingomba copper project. Mercuria and Zambia have formed a joint metals trading venture to allow Zambia to engage in mineral trading directly.

• ENERGY: The $100 million, 100-megawatt Chisamba Solar PV Plant is 71% complete and expected to be operational by May. The World Bank has approved a $292 million Zambia-Tanzania Interconnector Project (ZTIP), which will enhance energy sustainability and affordability in Zambia and connect Eastern and Southern Africa. President Hichilema attended the Mission 300 Africa Energy Summit in Dar es Salaam.

• FDI: The Zambia Development Agency (ZDA) announced it had actualised $9.83 billion of the $58.78 billion in committed investments, generating 40,395 jobs from 497 projects in sectors such as energy, manufacturing, transport, and mining.

• REGIONAL PARTNERS: President Hichilema attended the SADC’s Organ Troika Summit and addressed Mozambique's political and security challenges, emphasising their impact on regional trade and the urgency for collective action to restore regional stability.

A CLOSER LOOK

Mining Developments                                                                                                                       

In a landmark announcement, President Hichilema revealed that First Quantum Minerals (FQM) had delivered their High-Resolution Airborne Survey Findings. The survey, provided by First Quantum Minerals (FQM) under the leadership of CEO Tristan Pascall, is a transformative step in unlocking the nation’s untapped mineral wealth. The delivery of the Copperbelt survey signals the beginning of a new phase in this nationwide effort. By providing reliable and high-quality geological data, the survey should attract further investment, increase transparency, and accelerate the development of Zambia’s mining sector.

Meanwhile, in a positive step towards the New Dawn government’s goal of producing 3 million tonnes of copper annually by 2031, Mines Minister Paul Kabuswe announced that copper production in the country is expected to reach 1 million tonnes annually before 2026. By restoring established mines like Mopani Copper Mines and Konkola Copper Mines to full capacity and expanding output at FQM’s Kansanshi Mine and the Barrick super pit, Zambia is well positioned to hit this milestone. 

This comes as Barrick Gold Corporation reaffirms its commitment to Zambia’s economic growth. The company is looking to expand its Lumwana Mine operations, building on the $3.7 billion it has contributed to Zambia since 2019. Lumwana’s $2 billion backed expansion is set to double its current copper production to an average of 240,000 tonnes per year over the life of the mine, transforming it into a Tier One copper mine and one of the world’s top 25 producers. The expansion will create 2,500 construction jobs through to 2028 and 1,500 long-term jobs. 

In other mining news, Minister for Mines and Minerals Development Paul Kabuswe has told Reuters that Saudi Arabia’s Manara Minerals is actively seeking critical minerals projects in Zambia. Saudi Arabia is among several Middle Eastern economies pursuing deals in critical minerals, including copper and lithium, as part of a region-wide strategy to diversify its economy and reduce its reliance on oil. Manara, a joint venture between Saudi Arabian Mining Company and the kingdom's $925 billion Public Investment Fund, is currently closing in on a deal to buy a minority stake in FQM’s Zambian copper and nickel assets.

KoBold Metals, a Berkeley-based startup backed by Bill Gates and Jeff Bezos, has raised $537 million in a series C funding round, boosting its valuation to $2.96 billion. KoBold’s co-founder and chief executive Kurt House said about 40% of the new capital would be spent developing existing projects into mines, with the Zambian Mingomba copper project taking “the lion’s share of that.” KoBold said that the $2 billion Mingomba site would produce at least 300,000 tonnes per year in the 2030s.

Swiss-based commodities trader Mercuria released a statement confirming it had set up a metals trading arm with Zambia. The unit will enable Zambia to engage directly in the trading of its minerals, maximising the value derived from the country’s natural wealth. "Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market," Kostas Bintas, Mercuria's global head of metals and minerals, said in the statement.

Energy Projects

The Chisamba Solar PV Plant, a 100-megawatt renewable energy project, is now 71% complete and on track to be commissioned by May this year. News of the Solar Plant’s swift progress was shared by Boyd Kanchela, Chief Executive Officer of Kariba North Bank Power Extension Corporation, at the Energy Forum for Africa (EFFA) Conference as the plant is poised to be a major step forward in Zambia’s renewable energy transition. The EFFA expressed satisfaction with the $100 million project’s progress, reaffirming the forum’s goal to add 500megawatts to Zambia’s energy capacity by the end of the year.

In other energy news, the World Bank has approved the $292 million Zambia-Tanzania Interconnector Project (ZTIP),enabling Zambia to access more sustainable and affordable energy. The ZTIP will also enable electricity access in rural areas, improving education and health services and complementing domestic efforts. The transmission line will complete the connection of the Eastern Africa Power Pool and SouthernAfrican Power Pool, creating the largest geographic energy market in the world—from Cape Town to Cairo. The project comprises $245 million of funding from the International Development Association, $17 million from the UnitedKingdom Foreign Commonwealth & Development Office (FCDO), and $30 millionfrom the European Union (EU).

Earlier this week, President Hichilema attended the Mission 300 Africa Energy Summit in Dar es Salaam. The summit aims to accelerate electricity access for 300 million people across the African continent by 2030. Throughout the two-day summit, Hichilema held bilateral meetings with several private sector global entities and the heads of state of Lesotho, Malawi, and the Ivory Coast. The president took toFacebook to reaffirm his commitment to increasing energy investment and growing the economy, pitching to local and foreign investors

Foreign Direct Investment

The Zambian Development Agency (ZDA) announced it had recorded $9.83 billion of the $58.78 billion in committed investments into actualised projects. These investments are derived from 497 projects spanning multiple sectors, with committed investments of$18.74 billion. The projects have generated 40,395 jobs, surpassing the initial target of 38,119 jobs. “The energy sector led with $2.63 billion, followed by manufacturing with $2.33 billion, transport with $558.96 million, and mining with $481.56 million,” said Albert Halwampa, ZDA Director General. He attributed 2024’s achievements to strong political leadership, successful debt restructuring that bolstered investor confidence, and intensified investment promotion activities. 

Regional Partners

Finally, President Hakainde Hichilema attended the Southern African Development Community (SADC) virtual Extraordinary Organ Troika Summit to discuss Mozambique's post-election political situation and insecurity. In his capacity as Outgoing Chairperson of the Organ, President Hichilema highlighted that the political and security situation in Mozambique is not only affecting the people of Mozambique but also hindering regional trade in critical sectors like energy and transport. He underscored the need for the SADC Community to firmly support interventions to restore peace and stability in Mozambique through collective action in promoting regional security and cooperation.

LONG READS

What to know about the Lobito Corridor - and how it may change how minerals move (Atlantic Council, 20.12.24)

US and China scramble to control Africa's mineral riches (The Times, 22.12.24)

Zambia’s comparability conundrum (Financial Times, 03.01.25)

Zambia’s Road to Growth and Better Jobs (World Bank, 16.01.25)

UPCOMING EVENTS

03-04 February — 121 Mining Investment — Cape Town, South Africa  

03-05 February — Invest Africa Mining Series — Cape Town, South Africa

03-06 February — Mining Indaba — Cape Town, South Africa

12 February — African Business Forum — London, UK

12-13 February — Africa Tech Summit — Nairobi, Kenya

17 February — Africa Business Forum — Addis Ababa, Ethiopia

19-20 February — 8th Africa Agri Expo — Nairobi, Kenya

19-21 February — Africa's Green Economy Summit — Cape Town, South Africa

26-27 February — Sankalp Afriac Summit 2025 — Nairobi, Kenya

BackChat Season 4 Episode 1: Kyeretwie Osei

Choolwe kicks off season 4 of BackChat this week by speaking with Kyeretwei Osei, head of programmes at the Economic, Social and Cultural Council (ECOSOCC). Choolwe and Kyeretwei discuss the African Union, ECOSOCC’s role in shaping policy to improve private sector investment, and transparency in the Zambian investment landscape.

Jubilee Metals Group announces progress on restarting its Roan operations

Jubilee, a diversified metals producer with operations in South Africa and Zambia, announces progress on restarting its Roan operations following stable power delivery, as well as the processing of new higher-grade copper feed material, in order to accelerate the production of copper. 

As announced on 20 January 2025, Jubilee has implemented a new power agreement after the national power outages had a material impact on the Company’s copper production for the months of December 2024 and January 2025.

In support of the Company’s accelerated copper production strategy Jubilee has prioritised the processing of new higher-grade copper feed material while reviewing the option to trade, where appropriate, a portion of the vast quantity of surplus lower grade stocks it currently holds and that do not form part of the Company’s short to medium term production plans. 

The Roan operations offer the unique ability to process simultaneously both high-grade mined material as well as previously processed tailings materials. This affords Jubilee the ability to significantly enhance its copper production at increased operating margins and recoup some of the lost production time.

In support of this strategy Jubilee has agreed to invest into securing rights to an initial 200 000 tonnes of copper material with an expected copper content of approximately 1.6% copper, which is available immediately for processing at Roan, which is equivalent to more than double the waste material currently being processed. Jubilee holds the option to increase the initial 200 000 allocation of copper material with the potential to secure a long-term feed supply of this high grade material.

Highlights:

• Jubilee implements strategy to accelerate copper production on the back of stable power and secured new high grade copper material at an expected feed grade of approximately 1.6% copper. The present copper content of processed material is c. 0.7%.

• Roan holds the capacity to process up to 45 000 tonnes per month if all capacity is dedicated to the new high grade copper material, following the successful ramp-up of operations during November 2024. Initially 30 000 tonnes  per month of Roan’s capacity will be allocate to this high grade material.

• Roan will commence processing of the new high grade material within the next week.

• The Company is evaluating the potential to operate Roan on this higher grade material at full production of 45 000 tonnes per month for an extended period exceeding 3 years.  

• Under the terms of the agreements the copper material is settled through a part payment by Jubilee’s Zambian operations and a payment of US$2.70 million (£2.17 million) to be settled through the issuance of 51 774 429 new Jubilee ordinary shares (Shares) at a price of 4.20 pence per share, subject to lock in provisions of up to 180 days.

• In addition, Jubilee is concluding final details of the due diligence on the Large Waste Project with expected conclusion of the transaction as per the terms of the agreement during March 2025. 

Statement from Leon Coetzer, Jubilee CEO:

“Our years of investment to transform the Roan concentrator to a position that allows it to uniquely process both run-of-mine and waste copper material simultaneously, is once again vindicated by the ability to opportunistically secure high grade adjacent resources. These high grade resources have already been tested within our facility confirming its quality and metallurgical performance.

While the downtime experienced due to the power outages at Roan had a material negative impact on our production over the past couple of months, the Jubilee team has demonstrated their ability to immediately react to the challenges faced. We have secured a stable power supply which has allowed us to bring Roan back into operation and have secured higher grade material which provides an immediate opportunity to recoup part of the lost production and enhance cash flows within a short period of time.

The investment support from Jubilee to its Zambian operations ensures that we capture this opportunity and increase our copper production as we accelerate our Zambia operations’ recovery from the operational interruptions.

Our Zambian copper strategy remains robust on the back of a vast resource base of copper material already at surface together with two operating Open-Pit mining operations and a fully operational processing and refining footprint. We are reviewing several opportunities to liquidate for value certain of the non-core lower grade assets.

Copper guidance will be reviewed following a four to six week operational run on the new material.”

Admission and total voting rights

The Shares are expected to be admitted to trading on AIM and listed on the Altx of the JSE Limited on or around 12 February 2025 (Admission) and will rank pari passu with the ordinary shares of the Company in issue.

The Company's total issued capital, after the issue of the Shares, will be 3 065 640 251 ordinary shares. As the Company does not hold any shares in treasury, this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.

PRESS RELEASE: Industrial Resources Limited and Barrick Gold Corporation Forge Strategic Partnership to Drive Mining Exploration and Development in Zambia

Cape Town, South Africa, 5th February 2025 – Industrial Resources Limited (IRL), a subsidiary of the Zambian Government’s Industrial Development Corporation (IDC), and Barrick a global leader in mining, have signed a Memorandum of Understanding (MoU) to establish a strategic partnership aimed at unlocking Zambia’s mineral potential and contributing to the country’s ambitious mining sector growth targets.

This partnership represents a significant step in leveraging Zambia’s rich mineral resources to drive sustainable economic development while ensuring that benefits are equitably shared with local communities.

Driving Zambia’s Mining Growth

This collaboration aligns with Zambia’s vision to expand its mining sector and increase copper production to three million metric tons per year in the coming decade. By combining IRL’s strong local presence with Barrick’s world-class mining capabilities, the partnership will accelerate exploration efforts, de-risk mining investments and enhance value creation for Zambia’s economy.

Speaking at a signing ceremony on the sidelines of the ongoing Investing in African Mining Indaba in Cape town, IDC CEO, Mr. Cornwell Muleya, commented: “This agreement represents a transformative step in Zambia’s mining industry. Through this partnership, we are positioning IRL as a key enabler in the country’s mineral value chain while ensuring that Zambians reap the benefits of their natural resources.”

Barrick President and CEO, Mr. Mark Bristow, added: “This partnership with IRL reinforces Barrick’s commitment to Zambia’s mining sector. By working closely with the government and local stakeholders, we aim to unlock new opportunities that will deliver long-term value for both the country and our shareholders. This will be a partnership with a 50/50 sharing of economic benefits, ensuring a balanced and sustainable outcome for all stakeholders”.

Sustainable Development & Community Impact

A core pillar of this partnership is its focus on sustainable mining practices and local community development. The joint venture will prioritize skills transfer, job creation and infrastructure development, reinforcing Zambia’s commitment to responsible mining.

PRESS RELEASE: New Strategic Partnership for Copper Exploration in Zambia

Giant Mineral Fields (GMF), a global mineral exploration company, is pleased to announce the formation of a strategic partnership (the Partnership) with African Holdings Limited (AHL). AHL is a joint venture between Curprite Geo-services Limited (Curprite), a Zambian-based geological services company and Menel Energy and Resources, a Zambian mining investment company. The Partnership intends to commence exploration programmes across three license areas in Zambia’s Central African Copperbelt, a region well known globally for the quality and scale of its copper deposits.

The Partnership believes this is a uniquely opportune moment to help accelerate the role of Zambia in delivering new sources of copper due to a variety of factors:

• Zambia’s undeveloped resource potential – with only 49% of the country’s mineral-rich land geologically mapped1

• Expanding global supply shortfall of critically needed copper, which is estimated2 to be 10 million tonnes per annum (Mtpa) by 2034. (Expected copper mine supply in 2025 is 25 Mtpa3.)

• Zambian Government’s goal of tripling copper production, together with effective policy incentives for the private sector to further increase copper exploration

• International support for Africa’s first transcontinental rail network, known as the Lobito Corridor, to connect almost the entire regional copper-cobalt belt with additional links across sub-Saharan Africa

• Significant continuing investment by several mining industry majors in greenfield and brownfield copper expansion projects in Zambia.

Under the terms of the agreement, GMF will undertake copper exploration activities on three licences in Zambia, numbered 33445-HQ-LEL, 33446-HQ-LEL, and 33449-HQ-LEL. These licences have been identified as having substantial potential for copper deposits based on their premium location in the Lufilian Arc structure and Domes region of the Central African Copperbelt.

Exploration activities by the Partnership will include advanced geochemical and geophysical surveys, as well as targeted drilling campaigns, to evaluate comprehensively the mineral potential of these licences. These methods are expected to provide critical data to guide future development plans.

Licences 33445-HQ-LEL and 33449-HQ-LEL are situated in a highly prospective region, between the Mwombezhi and Kabompo Domes, which host the Barrick-owned Lumwana and the First Quantum-owned Sentinel mining projects respectively, two of Zambia’s most significant copper mining operations. Licence 33446-HQ-LEL is located to the northwest of these mines in another geologically highly prospective area sitting on the same geological structure as Africa’s richest copper mine, Kamoa-Kakula, in the Democratic Republic of Congo.

Brian Kiernan, Interim CEO of Giant Mineral Fields, said: “The partnership with African Holdings Limited underscores our commitment to unlocking the potential of Zambia’s mineral wealth and accelerating the eventual development of new copper production. We are excited to work with Curprite Geo-services Limited, a company with deep expertise and local knowledge of Zambia’s geological landscape.”

Trust Hatuma, CEO of Curprite Geo-services Limited, said: “This agreement with Giant Mineral Fields underscores the global interest in Zambia’s revitalised mining sector. We are proud to contribute our expertise to this project, which promises to bring significant benefits to the local economy and the broader mining community.”

Barrick’s Lumwana Mine Fuels Zambia’s Economic Growth With Major Expansion on the Horizon

Barrick Gold Corporation has reaffirmed its commitment to Zambia’s economic growth, contributing over $3.7 billion since 2019. In 2024 alone, Lumwana’s operations contributed $887 million to the economy through royalties, taxes, salaries and procurement of goods and services, solidifying its position as one of the nation’s top five taxpayers. Copper production for 2024 was within guidance, supported by investments in operator training and an upgraded ultra-class fleet.

Lumwana remains a leader in advancing local content, with 72% of the $906 million spent on goods and services in 2024 going to Zambian suppliers and contractors. This brings the total spend on local goods and services to $2.5 billion since 2019. The company’s Business Accelerator Programme is further building capacity, targeting 150 SMEs to support the upcoming Superpit expansion.

The Lumwana expansion will double its current copper production to a life-of-mine average of 240kt a year with an additional 2,500 construction workers to be employed over the construction period through to 2028.1 In addition to this, the expansion is set to create a further 550 permanent roles. To meet these demands, Lumwana is extending its Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA) accredited training centre to equip local workers with critical skills. Currently, 99% of Lumwana’s employees are Zambian nationals, a testament to Barrick’s focus on sustainable workforce development.

“We are transforming the surrounding Kalumbila District into a mining-powered economic hub that will endure beyond Lumwana’s expanded life of mine,” said Barrick president and CEO Mark Bristow, speaking from Lumwana. Plans include new employee housing in the Manyama town, an industrial supplier park and an airport which is expected to be operational by the end of 2025. The master plan, developed in collaboration with local authorities, aligns with Zambia’s integrated development strategy.

Barrick is actively supporting Zambia’s ambition to increase copper output to 3Mt by 2031 through its Lumwana expansion and securing further exploration licenses in the Northern Province. Additionally, the company is supporting Zambia’s power challenges in collaboration with ZESCO. Since September 2024, Lumwana’s co-generation initiatives have reduced its reliance on the grid, helping to alleviate the supply-demand gap. A joint working group, led by Barrick, is now focused on upgrading the northwestern power corridor, benefiting mines, local communities and domestic consumers alike.

Barrick’s vision for Lumwana extends beyond mining ensuring the benefits of its investments endure well into the future.

First Quantum Minerals delivers findings of High-Resolution Airborne Survey

On Thursday this week First Quantum Minerals delivered their High-Resolution Airborne Survey findings to President Hakainde Hichilema and the Ministry of Mines.

President Hichilema says the survey, which studied mineral deposits on the Copperbelt Province, provides new information identifying areas in the province rich in minerals.

The President says even though the Copperbelt has been mining for over a century, its endowments have until now not been fully documented.

He says the new data will enable mining companies in the Province to plan effectively for expansion projects and new investments.

Speaking at State House when he received the survey’s report from FQM Chief Executive Officer Tristan Pascall, President Hichilema said a lack of detailed information on underground mineral deposits on the Copperbelt hindered the full utilisation of the Province’s resources. Mr Pascall also affirmed the company’s readiness to collaborate with the Government to fully exploit mineral resources.

Mines and Minerals Development Minister Paul Kabuswe explained that FQM fully funded the survey through a Memorandum of Understanding -MoU- with the Government.

Mr. KABUSWE added that Government is consulting stakeholders on whether the Province should be included in the ongoing National Geological Mineral Mapping Survey launched last year.

FQM Exploration Manager Jon Stacey said the survey data would be handed over to the Government and made available to other mining license holders on the Copperbelt.

Zambia and Saudi Arabia Sign MoU for Mineral Resource Cooperation

Zambia and Saudi Arabia have signed a Memorandum of Understanding (MoU) to foster cooperation in mineral resources.

The agreement, signed by Mines and Mineral Resources Minister Paul Kabuswe and Saudi Arabia’s Industry and Mineral Resources Minister Bandar Al-Khorayef, aims to promote knowledge sharing, expertise, and best practices between the two nations.

Mr. Kabuswe said the MoU unlocks new opportunities for investment and growth in the mining sector, leveraging Saudi Arabia’s expertise to develop Zambia’s rich mineral endowment sustainably.

Meanwhile, Mr. Al-Khorayef said the Saudi Arabian government is pleased to partner with Zambia to build a robust and sustainable future for the mining industry.

This is according to a statement to ZNBC by the Embassy of Zambia in Riyadh, Kingdom of Saudi Arabia.

This article originally appeared on ZNBC

Zambia Investor Briefing: December

OVERVIEW

• LOBITO CORRIDOR: US President Joe Biden announced a $560 million funding package for the Lobito Corridor project during his historic trip to Angola. The African Finance Corporation (AFC) is committing up to $500 million to the Lobito-Zambia greenfield rail project.

• FDI: President Hakainde Hichilema met with the UK’s Minister for International Development Annelise Dodds to discuss the UK-Zambia Green Growth Compact. He also met with a delegation from the Chinese People’s Political Consultative Conference (CPPCC), as well launching the UAE investor-led Zambezi Economic Free Zone (ZEFZ). The World Bank Group has projected that Zambia could secure $21 billion in cumulative investments between 2025 and 2030.

• ENERGY AND TECH: Copperbelt Energy Corporation (CEC) has raised a $97 million green bond – underwritten by Stanbic Bank Zambia – to support the expansion of one of the country’s largest renewable energy initiatives. Indian software company Zoho Corp is investing $30 million to advance digital transformation for Zambia’s businesses.

• OTHER DEVELOPMENTS: Zambia and France have signed a bilateral debt restructuring agreement; the African Development Bank (AfDB) has granted a $108 million loan to strengthen Zambia’s economic governance; and Zambia has officially joined the OECD Development Centre.

• READ: Dr Kiru Sichoongwe, an economist at the University of Johannesburg, has written a guest article for ZIB on the country’s diamond jubilee, outlining how Zambia can leverage its next 60 years of independence.

A CLOSER LOOK

Lobito Corridor

On his historic trip to Angola this month, US President Joe Biden toured the Lobito Corridor railway project alongside President Hakainde Hichilema, Angolan President João Lourenço and the Democratic Republic of Congo (DRC) President Felix Tshisekedi. The railway project will connect Angola’s port city of Lobito to Zambia and the DRC, enhancing regional integration and economic opportunities.

During the Partnership for Global Infrastructure and Investment (PGI) Lobito Trans-Africa Corridor summit, Biden announced a $560 million funding package, bringing US investment to over $4 billion, making it the largest US-supported infrastructure scheme in Africa. Biden praised the corridor, highlighting its ability to reduce cargo transport times from 45 days to just 45 hours. The railway will improve clean energy technology and transform southern Africa into a major global exporter. According to the US President, “The Lobito Corridor is more than a railway; it’s a gateway to shared prosperity for Angola, the DRC, Zambia, and beyond.”

The African Finance Corporation (AFC) is also committing up to $500 million to the Lobito-Zambia greenfield rail project, a key component of the Lobito Corridor initiative. AFC CEO Samaila Zubairu announced that the corporation plans to invest over $3 billion across Africa in 2025 as part of a broader strategy to position the continent as a global hub for critical minerals and to promote open trade. Zubair told Bloomberg “Our aspiration is to continue to support the build-out of the infrastructure that will enable Africa to industrialise, help us address our challenges of poverty, inequality and unemployment and we can only do that by creating jobs.”

Foreign Direct Investment (FDI)

President Hakainde Hichilema welcomed a delegation led by the Rt Hon. Annelise Dodds MP, the UK’s Minister for International Development, to State House earlier this month. Their conversation centred around measures to drive economic growth through the UK-Zambia Green Growth Compact, signed in August 2023. The Compact aims to drive £2.5 billion of UK private investment into green projects in Zambia and commits to greater UK support to the Zambian energy sector.

President Hichilema also hosted a delegation from the Chinese People’s Political Consultative Conference (CPPCC), led by the Vice-Chairman of the National Committee, Mr Shao Hong. The reciprocal visit, which followed Hichilema’s trip to China in September, saw Zambia reaffirm its commitment to the One China Principle. The governments discussed the need to accelerate agreed-upon projects such as the revitalisation of TAZARA railway, Mulungushi Textile, and those in the mining sector.

Meanwhile, President Hichilema officially launched the Zambezi Economic Free Zone (ZEFZ), which encompasses the Sekute and Mukini Free Economic Zones. The 17,000-hectare initiative is strategically located near the Kazungula Bridge, a critical link connecting Zambia to Botswana, Namibia, and Zimbabwe. Upon completion, the UAE investor-led project is expected to create thousands of jobs, attract significant investment and promote tourism.

In other investment news, the World Bank Group has projected that Zambia could secure $21 billion in cumulative investments between 2025 and 2030, potentially creating 800,000 jobs in the mining, agriculture, tourism and energy sectors. The projection was announced during the Public-Private Dialogue Forum (PPDF) by Lead Economist at the International Finance Corporation, Ernesto Cordova. Cordova outlined the potential of structural reforms to catalyse Zambia’s private sector and bolster investor confidence.

Energy and Technology

Copperbelt Energy Corporation (CEC), a major power supplier in Zambia, has raised a $97 million green bond to support the expansion of its Itimpi Solar Project, one of the country’s largest renewable energy initiatives. The funds will be used to add 136 megawatts to the existing solar capacity, bringing the total to 250 megawatts by next year. This project marks the second phase of Zambia’s first $200 million green bond, issued by CEC in 2023. The bond is underwritten by Stanbic Bank Zambia, a unit of Standard Bank Ltd, with bondholders including Zambia’s ZCCM Investments Holdings, the Emerging Africa and Asia Infrastructure Fund, the African Local Currency Bond Fund, and Dutch development bank FMO.

Meanwhile, Indian software company Zoho Corp, in collaboration with Loita Business, is investing $30 million to advance digital transformation for Zambia’s small and medium enterprises (SMEs) and larger businesses. The initiative will be launched at Zambia Digital Week 2025. The event, organised by Loita Business and the Zambian Ministry of Technology and Science, is supported by partners such as Smart Africa, Afreximbank, and Digital Council Africa. It aims to foster collaboration among government, business, and international organisations to accelerate Zambia’s digital economy.

Other Economic Developments

Zambia and France have signed a bilateral debt restructuring agreement. The agreement marks a significant step in Zambia’s efforts to revamp its $13 billion external debt and is the first Zambia has reached with official bilateral creditors. Under the agreement, Zambia will extend the maturity of its debt by an average of 12 years, with repayments stretching beyond 2040. Interest rates are set at 1% for the next 14 years, rising to a maximum of 2.5% after that.

The African Development Bank has granted a $108 million loan to strengthen Zambia’s economic governance, allowing the implementation of the Fiscal Sustainability and Economic Resilience Support Programme. The multi-sectoral programme aims to improve domestic revenue generation through several measures, including the rollout of smart invoices, improving transparency of public spending, and stimulating agro-industrial development.

Finally, Zambia has officially joined the Organisation for Economic Corporation and Development (OECD) Development Centre as its fifty-sixth member and 12th African country. The Centre supports developing and emerging economies in fostering sustainable growth, reducing inequalities, and improving livelihoods. With regard to Zambia’s membership, the OECD stressed the importance of advancing debt restructuring discussions and providing new forms of liquidity, debt relief, and new development finance.

UPCOMING EVENTS

Zambia Digital Week

Lusaka, Zambia        28-30 January

ZDA Records $9.89 Billion in Actualised Investments and Over 40,000 Jobs

The Zambia Development Agency (ZDA) has recorded $9.83 billion of the $58.78 billion in committed investments into actualised projects. These investments are derived from 497 projects spanning multiple sectors, with committed investments of $18.74 billion. The projects have generated 40,395 jobs, surpassing the initial target of 38,119 jobs.

ZDA Director General Albert Halwampa emphasized the Agency's enhanced efforts to support investment projects aimed at driving job creation and fostering economic growth.

In 2024, ZDA intensified its trade, investment, and business development initiatives. These efforts included targeted trade and investment missions and the provision of business development services to enhance competitiveness in key economic sectors.

The Agency recorded $6.91 billion in committed investments from 486 licensed projects during the year.

“The energy sector led with $2.63 billion in investments, followed by manufacturing with $2.33 billion, transport with $558.96 million, and mining with $481.56 million,” Mr. Halwampa noted.

He said the 486 projects committed to creating 233,098 jobs, marking a 45% increase compared to the 160,280 jobs pledged from 379 projects in 2023.

Mr. Halwampa further explained that ZDA offers business development services to support the competitiveness of growth-oriented businesses.

He said by leveraging both Local Direct Investment (LDI) and Foreign Direct Investment (FDI), the Agency aims to promote firm growth, job creation, and wealth generation.

Mr. Halwampa attributed the Agency's 2024 success to robust political leadership, successful debt restructuring that has improved investor confidence, and intensified investment promotion activities.

“Looking ahead, the ZDA is preparing to host the inaugural Invest in Zambia International Conference (IZIC) in the second quarter of 2025, aiming to attract over $1 billion in committed investments during the event,” he revealed.

The Director General reaffirmed the Agency’s commitment to transitioning committed investments into tangible projects and job creation.

Zambia Set to Receive $30M Investment for Digital Transformation

Indian software company Zoho Corp., in partnership with Loita Business, is set to invest $30 million in Zambia to encourage technology adoption and digital transformation for small and medium enterprises and large enterprises.

The investment program is set to be launched during the inaugural Zambia Digital Week 2025, running from January 28–30, 2025, at the Mulungushi International Conference Centre, Lusaka, Zambia.

Zambia Digital Week 2025, brought to you by Loita Business in collaboration with the Ministry of Technology and Science in Zambia, Smart Africa, African Export-Import Bank (Afreximbank), Digital Council Africa, and Invest Africa, brings together local, regional, and global leaders from government, business, and international organisations to collaborate in new ways to advance Zambia’s digital economy and shape, accelerate, and sustain Zambia’s ongoing digital revolution.

Zoho Corp. has been present in Zambia for the last five years and intends to bolster Zambia’s economic sustainability and its wide-sweeping digitalization goals.

“We believe Zambia offers attractive opportunities for growth and expansion,” said Andrew Bourne, Regional Manager, Zoho Africa.

Zoho’s fundamental vision is led by efforts to make innovative solutions accessible and affordable to businesses of all sizes. With this at the core, we allocate necessary resources to cater to these rapidly growing markets to empower more people and organizations.The cloud software vendor has been in business for 29 years and has around 15,000 employees. It has 100 million registered users using its software worldwide from over 50 countries.

The company, explained Bourne, has over 55 business applications catering to sales support, marketing, HR, payments, and finance, to name a few. “We have more than half a million registered organizations paying customers using Zoho,” he said.

Zoho has also increasingly started working with local government entities and public sector institutions in Africa and across the world.

“Over the next year, we aim to continue leading the way in the MEA to make Africa our No. 1 market in the region while allocating necessary resources to help achieve the government objective of having a fully digitalised, upper-middle income economy. Our mission is to help Zambia achieve its digital transformation goals by lowering the technical barriers to entry for the SMEs and enterprise business community,” added Bourne.

This article originally appeared on IT News Africa

BackChat Season 3 Episode 5: Stanbic Bank, GreenCo and FQM

This week we spoke to Helen Lubamba of Stanbic Bank Zambia and Wezi Gondwe of GreenCo following a monumental $55 million facilities agreement between the two organisations. With many sectors reaping the benefits of the agreement, Jed Goldstein of FQM Zambia also joined us to discuss these gains related specifically to the mining sector.

From Jubilee to Prosperity: Leveraging The Next 60 Years of Zambian Independence

By Dr. Kiru Sichoongwe

This year, Zambia is celebrating its diamond jubilee, marking 60 years of independence. It presents an opportune time to reflect on the country’s journey and anticipate how the next sixty years can be optimized for economic development. This milestone not only allows us to acknowledge past achievements but also to chart a path for long-term economic growth. The past six decades encompassed both challenges and successes, and this juncture serves as a crucial moment to build upon our accomplishments while tackling the obstacles that lie ahead.

The journey from jubilee to prosperity requires us to harness national resources, adopt innovative policies, and cultivate partnerships that can inspire growth for future generations. This blog outlines key strategies that Zambia can implement to reshape its economic landscape over the next sixty years.

Zambia gained independence from British colonial rule on October 24, 1964. Despite an abundance of natural resources like copper, cobalt, and fertile land, Zambia still has challenges to overcome, including high poverty rates, unemployment, and inadequate infrastructure. As the nation embarks on the next phase of its development, it is essential to critically evaluate these historical challenges and identify pathways for improvement.

Zambia, as a land-linked country in southern Africa, possesses diverse sectors ripe for growth and development over the coming sixty years. By adopting a multifaceted approach focused on sustainable growth, inclusive development, and optimizing both resources and human capital, Zambia can effectively advance its economic goals.

Below is my analysis of key sectors where Zambia holds comparative advantages, along with strategic recommendations for leveraging these sectors for future growth.

Agriculture

Agriculture is vital to Zambia's socio-economic development, employing 51% of the workforce. More than half of the population relies on agriculture for food, primarily through smallholder farming. Furthermore, agriculture supplies raw materials for manufacturing and food processing, creating additional job opportunities, particularly for women and youth.

The sector also contributes significantly to Zambia's export earnings, generating about 29% of non-traditional exports and 7% of total exports. Therefore, agriculture is a promising avenue for achieving diversified and inclusive socio-economic growth.

Strategies for leveraging:

• Agri-technology Adoption: Promote modern agricultural techniques and technologies, such as precision farming, to enhance yields.

• Diversification: Encourage farmers to diversify into high-value crops, such as fruits and vegetables, reducing dependency on maize.

• Value Addition: Invest in agro-processing industries to enhance value addition to agricultural products and minimize post-harvest losses. 

Zambia’s government has set ambitions to become the breadbasket of southern Africa. 

Progress to date

Significant steps have already been taken to capitalize on agricultural opportunities through the Comprehensive Agriculture Transformation Programme, which enhances support for farmers in areas such as mechanization, marketing, and processing.

President Hichilema’s New Dawn government is firmly committed to boosting agriculture and agro-processing, as evidenced by the establishment of an Agriculture Credit Window within the transformation programme. This initiative has garnered participation from five commercial banks, facilitating the release of $5.5 million from the African Development Bank towards the Sustainable Agricultural Financing Facility (SAFE), alongside K200 million from the Zambian government.

Together, these funds will amount to a total of $18.5 million, supported by an 80% risk mitigation strategy. Additionally, the National Agriculture Diversification Strategy has been implemented, and an Agriculture Mechanization Policy has been launched to further enhance productivity within the sector.

 Mining

Zambia is one of Africa's largest copper producers, with abundant supplies of cobalt, gemstones, and other minerals as well. The mining sector is crucial to Zambia's economy, significantly contributing to GDP, tax revenues, and export earnings. In 2023, mining accounted for 13.7% of Zambia's GDP, up from 12.9% in 2022, and was the second-largest contributor to GDP in both 2023 and in the first quarter of 2024.

Strategies for leveraging:

• Local Content Policies: Implement policies that promote local processing of minerals to bolster the domestic economy.

• Sustainability Initiatives: Invest in sustainable mining practices that protect both the environment and local communities.

• Public-Private Partnerships (PPPs): Foster collaborations between the government and private sector to enhance infrastructure and investment within the mining sector.

Progress to date

The government has made significant strides in enhancing the mining sector, underlining its commitment to fostering local participation and attracting foreign investment. A landmark achievement includes securing a USD 100 million partnership between Moxico Resources and Mimbula Mineral Resources for copper exploration, a key focus given the country's rich mineral deposits.

Furthermore, the registration of 256 local mining cooperatives, alongside the issuance of licenses to 126 gold mining cooperatives and 65 artisanal cooperatives for other mineral exploitation, reflects a strong push towards empowering local stakeholders.

In a significant boost to the sector, KoBold Metals has invested USD 150 million into the Ming’omba Mining project in Chililabombwe, highlighting the growing international confidence in Zambia's mining potential. Additionally, the government successfully negotiated an increase in its shareholding in the newly revitalized Mopani Mine from 20% to 49%, aligning with its policy to enhance local ownership in mining firms and ensure that the benefits of mineral wealth are more widely shared among Zambians.

The New Dawn government aims to produce 3 million tonnes of copper by the early 2030s.

Tourism

Zambia is a premier tourist destination in Africa, celebrated for its natural wonders, including its stunning waterfalls, lakes, and rivers, which represent nearly 35% of Southern Africa's water resources. About 32% of the country's land is designated as wildlife-protected areas, contributing significantly to economic development by generating jobs and foreign exchange.

Tourism is primarily centered around wildlife conservation areas, with 20 national parks and 34 game management areas. Victoria Falls, a UNESCO World Heritage site, is among Zambia's most iconic attractions.

Strategies for Leveraging:

• Infrastructure Development: Invest in infrastructure (roads, airports, accommodations) to improve accessibility for tourists.

• Marketing and Promotion: Create a robust branding strategy to position Zambia as a leading tourist destination.

• Community-Based Tourism: Promote responsible and sustainable tourism practices that benefit local communities.

• Ecotourism and Cultural Tourism: Develop initiatives that highlight Zambia’s natural and cultural heritage.

Victoria falls, known as ‘the smoke that thunders’ in the local Lozi language. 

Progress to date

The New Dawn government is implementing a multifaceted approach to boost both accessibility and promotion in the tourism sector. Key developments include the construction of 3,297 kilometers of access roads and 3,889 kilometers of loop roads in selected national parks, which facilitate easier travel to these natural wonders.

Additionally, the government has crafted a comprehensive tourism marketing and promotion strategy, and secured USD 100 million in World Bank funding aimed at developing the northern and western tourism circuits.

To further amplify its global reach, tourism secretaries have been deployed to key embassies around the world to spearhead marketing efforts. As a testament to these initiatives, visits to national parks, waterfalls, and heritage sites surged by 22 percent in 2022, with 605,650 tourists recorded, up from 496,456 in 2021, largely attributed to the removal of visa requirements for several countries.

By the third quarter of 2023, international tourist arrivals reached an impressive 987,080, highlighting the effectiveness of the government's strategic interventions in revitalizing Zambia's tourism landscape.

Renewable Energy

Zambia boasts significant hydropower potential, alongside solar, wind, and biomass resources.

Strategies for leveraging:

• Investment in Renewable Technologies: Attract foreign investment for renewable energy technology to strengthen capacity.

• Decentralized Energy Solutions: Promote off-grid renewable energy options in rural areas to expand electricity access.

• Regional Power Trade: Explore opportunities for regional energy trading with neighbouring countries to optimize resources.

• Sustainability Policies: Formulate policies that encourage sustainable energy generation and reduce reliance on fossil fuels.

Progress to date

Zambia’s government is committed to advancing the generation, transmission, and distribution of renewable energy, with notable developments showcasing this dedication. ZESCO, the state-owned power utility, recently signed a landmark USD 3.5 billion deal with China CiEG to bolster renewable energy production in the country.

In a parallel effort, ZESCO entered into a Memorandum of Understanding and a Joint Venture Development Agreement with Masdar of the UAE, paving the way for an impressive USD 2 billion investment in solar projects. With the commissioning of an additional turbine at the Kafue Gorge Lower Hydro Power Station, Zambia's national installed capacity has risen to approximately 3,800MW.

Significant efforts are also underway to expand solar energy access, evidenced by the establishment of 11 solar mini-grids, the installation of 100 solar PV systems at health centers, 200 solar home systems for households, and 79 solar home systems for chiefdoms. Furthermore, the Kabwe 100MW Solar Photovoltaic Project, set to become Zambia’s largest solar power plant, broke ground in February 2024, further underscoring the government's commitment to sustainable energy development and its proactive approach to implementing policies that promote the growth of the energy sector.  

Manufacturing Sector

The manufacturing sector is crucial for Zambia's economic growth and job creation. Recognized as a key driver for transformation and employment opportunities in the Eighth National Development Plan (8NDP), a focus on local value addition and development of complete value chains can lead to a more diversified economy and sustained growth.

Strategies for everaging:

• Skill Development: Facilitate training programs to enhance the workforce's skills to meet industry demands.

• Market Access: Negotiate trade agreements to improve access to regional and international markets for manufactured goods.

• Support SMEs: Establish support mechanisms for small and medium enterprises (SMEs) to encourage innovation and job creation in manufacturing.

Progress to date

The Zambian government's commitment to revitalizing the manufacturing sector is evidenced by several significant developments. Notably, the revival of Mulungushi Textiles stands out as a pivotal initiative, aiming to restore the textile industry to its former glory and create employment opportunities for local communities.

Additionally, the reopening of the local fertilizer manufacturing plant is a crucial step towards achieving self-sufficiency in agricultural inputs, while the anticipated establishment of a car battery manufacturing plant represents a forward-thinking approach to diversifying the industrial base.

Furthermore, the rejuvenation of Kafue Nitrogen Chemicals of Zambia (NCZ) not only enhances domestic production capacity but also aligns with the government's vision of sustaining economic growth through local industrialization. Collectively, these initiatives underline the government's strategic push to bolster the manufacturing sector and foster a more resilient economy.

ICT and Digital Economy

The digitalization of the economy is a pivotal driver for social and economic growth in Zambia. Harnessing the opportunities of digitalization can help the government achieve its development goals and foster sustainable economic advancement. Zambia's tech-savvy youth population positions the country favourably within the digital economy.

Strategies for Leveraging:

• Infrastructure Investment: Invest in internet infrastructure to improve connectivity throughout urban and rural regions.

• Digital Skills Training: Implement programs to enhance digital literacy and technical capabilities among youth.

• E-Governance: Utilize technology to improve governance, service delivery, and transparency in public administration.

Steps taken to date to leverage each opportunity

In a landmark initiative aimed at propelling Zambia's digital landscape forward, the government launched the E-MARK Innovation Hub in November 2024. This innovative hub promises to transform the tech and entrepreneurial ecosystem by offering startups, small and medium enterprises (SMEs), and creatives access to state-of-the-art resources, collaborative working spaces, and comprehensive skills development programs. Such advancements highlight the government’s commitment to nurturing a vibrant digital economy and empowering the next generation of Zambian innovators.

Conclusion

To leverage Zambia's comparative advantages, a long-term vision, strategic policies, and collaborative efforts between government, private sector, and civil society are essential. By focusing on these key strategies and establishing a comprehensive, long-term developmental policy that engages all sectors of society, Zambia can make significant progress toward sustainable economic development over the next sixty years.

About the Author:   

Dr. Kiru Sichoongwe is a Zambian economist currently serving as a Research Fellow in the Department of DSI/NRF South African Research Chair (SARChI) in Industrial Development at the University of Johannesburg, South Africa.

Disclaimer: The opinions expressed in this article are those of the author. They do not purport to reflect the opinions or views of the institute where the author is affiliated.

Zambia Investor Briefing: November

OVERVIEW

• MINING: President Hakainde Hichilema has announced that British mining giant Anglo American is strongly considering a return to Zambia. China Nonferrous Metal Mining Company has pledged an investment of $1.6 billion into its Luanshya Mining project and other assets on the Copperbelt. Japanese trading house Mitsui & Co is reportedly the highest bidder for a minority stake in First Quantum Minerals’ (FQM) Zambian copper assets. The President’s special assistant for finance and investment has announced that the government’s plans to take larger stakes in some mining projects will not impact existing operations.

• ENERGY: The government is considering plans for a $900 million 600MW coal power plant, proposed by Chinese-owned Wonderful Group. The African Development Bank Group’s Board of Directors has approved an $8 million concessional loan to support the construction of a Solar Photovoltaic power plant. Africa GreenCo Group has secured a $55.5 million financing agreement with Stanbic Bank Zambia and Standard Bank of South Africa to support electricity imports and mitigate Zambia's energy challenges. 

• FDI: Chinese firm Powerful Diligent Veracious (PDV) Metals Limited Steel has commissioned a state-of-the-art manufacturing plant in the Lusaka South Multi Facility Economic Zone. President Hichilema met with a delegation of German industry led by the country’s Minister of Agriculture Cem Oezdemir.

A CLOSER LOOK

Mining Developments                                                                                                                       

President Hakainde Hichilema has announced that British mining giant Anglo American is strongly considering a return to Zambia, 20 years after the company stopped operating in the country. Writing on Facebook, President Hichilema said he had hosted a delegation from Anglo American at State House, including the company’s CEO Duncan Wanblad. “We are glad to note the renewed interest by Anglo American Corporation to invest in our mining sector after close of 20 years of their exit,” the President wrote.  “The 3 million tons annual copper production target we have set for ourselves will require partnerships with reputable mining companies like Anglo American corporation.” 

President Hichilema also met with a delegation from China Nonferrous Metal Mining Company (CNMC) led by CEO Wen Gang. CNMC pledged an investment of $1.6 billion into its Luanshya Mining project and other assets on the Copperbelt.

Meanwhile, in welcome news to investors, President Hichilema’s special assistant for finance and investment Jito Kayumba has told Bloombergthat the government’s plans to take larger stakes in some mining projects will not impact existing operations. According to Kayumba, “No entity that currently operates in Zambia today, that currently has a licence, will be subjected to any appropriation from the state”. Instead, the scheme will apply only to permits reserved for the government with the intention on bringing on investment partners. This follows President Hichilema’s reassurance to investors at the inaugural Zambia Mining and Investment Insaka last month that the government will not embark on a controversial reform of the mining sector until it has reached consensus with the country’s mining companies.  

This comes as Anthony Mukutuma, country director at First Quantum Minerals (FQM), told The Africa Report, “There is renewed faith by investors in Zambia’s mining sector and the country shall start seeing the results soon… the brownfield developments alone can take output to 1.6 million tonnes in the next four to five years”. Mukutuma also said he was “very optimistic” about FQM’s 2025 outlook in Zambia. Regarding recent energy issues during Zambia’s drought, he pointed to the recent emergence of power traders making energy imports easier, as well as the strong start to the rainy season last month aiding hydropower production.

In other mining news, Japanese trading house Mitsui & Co is reportedly the highest bidder for a minority stake in First Quantum Minerals’ (FQM) Zambian copper assets, which includes Sentinel and Kansanshi mines. It is thought the company is considering a 20% stake for around $2 billion. This follows reports in October that Saudi Arabia’s Manara Minerals was close to finalising a deal with FQM, but it now seems to have been outbid. The company’s CEO Robert Wilt had previously told Reuters, “We are looking at Zambia, we are talking with a company there, with a mine there, so those are pretty advanced stage discussions.”

Energy Projects

The government is considering plans for a $900 million 600MW coal power plant, proposed by Wonderful Group. This would be an alternative energy source to help revive the country’s power supply after the impact of the recent unprecedented drought on Zambia’s hydropower. Gilbert Temba, Chair of Chinese-owned Wonderful Group, and his delegation met with President Hichilema this month to discuss the possible venture.

This follows the announcement in July that a 300MW coal-fired facility would be built in the south of the country. Its construction is being led by Maamba Collieries Ltd, which secured $300 million in financing for the project. Work is expected to be completed by July 2026. These projects align 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.

In other energy news, The African Development Bank Group’s Board of Directors has approved an $8 million concessional loan to support the construction of a 25MW Solar Photovoltaic power plant in Zambia. The plant development, led by Serengeti Energy Ltd and Western Solar Power Ltd, will serve as a pilot for GreenCo Power Services’ (the operating entity of Africa GreenCo Group) energy aggregator model under the ZESCO open-grid framework.

In other GreenCo news, the group has secured a $55.5 million financing agreement with Stanbic Bank Zambia and Standard Bank of South Africa to support electricity imports and mitigate Zambia's energy challenges. Through its subsidiary, GreenCo Finance Solutions Limited, the company will use the funds to prepay for over 130MW of electricity.

Foreign Direct Investment

Chinese firm Powerful Diligent Veracious (PDV) Metals Limited Steel has commissioned a state-of-the-art manufacturing plant in the Lusaka South Multi Facility Economic Zone. PDV acquired an Investment Licence from the Zambia Development Agency (ZDA) in 2023 and benefitted from both fiscal and non-fiscal incentives facilitated by the Agency. Later in the month the ZDA signed an Investment Promotion and Protection Agreement with China De Jin Xin Limited to construct a $170 million cement plant in Chilanga District – of which $70 million is already invested.

Earlier this month President Hichilema met with a delegation of German industry led by the country’s Minister of Agriculture Cem Oezdemir. The President expressed his eagerness to collaborate with German business in “capital mobilisation, the exploration of critical minerals using advanced technology, and value addition.”

Finally, the Zambia Development Agency (ZDA) participated in the COMESA Business Forum and Exhibition in Bujumbura, Burundi at the end of October. The Agency also participated in the Kenya-Zambia Trade Expo hosted by the Kenya National Chamber of Commerce and Industry (KNCCI) and the Zambia Chamber of Commerce and Industry (ZCCI).

LONG READS

As drought shrivels hydro, this African nation pivots to solar (Yale Environment 360, 21.11.24)

Zambian economy will recover in 2025 as headwinds fade (Fitch Solutions, 21.11.24)

US and Chinese rail projects boost Zambia’s copper industry (The Africa Report, 13.11.24)

The Lobito Corridor: Washington’s answer to Belt and Road in Africa (Geopolitical Monitor, 13.11.24)

Zambia’s $10bn copper revival: A long road to recovery (The Africa Report, 11.11.24)

UPCOMING EVENTS

4-6 December – Africa Investment Forum Market Days Rabat, Morocco

11 December - Strengthening U.S.-Zambia Minerals Cooperation: A Fireside Conversation Online

Anglo American Considers Return to Zambia

President Hakainde Hichilema has announced that British mining giant Anglo American is strongly considering a return to Zambia, twenty years after the company stopped operating in the country.

Writing on Facebook, President Hichilema said he had hosted a delegation from Anglo American at State House, including the company’s CEO Duncan Wanblad. 

“We are glad to note the renewed interest by Anglo American Corporation to invest in our mining sector after close of 20 years of their exit,” the President wrote.

 “The 3 million tons annual copper production target we have set for ourselves will require partnerships with reputable mining companies like Anglo American corporation.” 

President Hakainde Hichilema speaking with Anglo American CEO Duncan Wanblad. 

Since President Hichilema took office in 2021 there has been an influx of foreign investments into the mining sector. In 2022, Canadian mining company First Quantum Minerals announced plans for a $1.25 billion expansion to its Kansanshi copper mine in North Western Province, as well as $100 million to operationalise its Enterprise nickel project.

These investments were followed by an announcement that the Bill Gates-backed Kobold Metals could spend $2.3 billion to build a new mine at Mingomba, Copperbelt Province, which is thought to be the largest copper discovery in Zambia for more than a century. Then, in October, Barrick Gold declared its decision to invest a further $2 billion at its Lumwana mine facility.

Increasing Zambia’s copper output is a cornerstone of President Hichilema’s plan for economic development, with ambitious targets to expand production to 3 million tons per year in the next decade.

 It is currently unclear where Anglo American is likely to resume its operations however, they might partner with the Hichilema administration on one of the 40 government-reserved permits in which the state retains a 30% share in future critical mineral mines. This share, which was announced over the summer, will not affect current mining operations in the country and is intended to increase the benefit of Zambia’s mining sector to ordinary citizens.

Since President Hichilema took office, Zambia’s mining sector has become a highly sought after investment opportunity. His administration abolished the so-called ‘double tax trap’ on mining royalties and has normalised relationships with key players including Vedanta Resources, which soured under the previous administration. The country is now seen as a key player in the shift to green energy, with abundant supplies of copper, cobalt and other critical minerals needed for electric batteries and transmission cables. 

Congo Trade Mission Nets US$12.22 Million In Trade

Lusaka, 11th November, 2024 — The Zambia Development Agency (ZDA) has recorded business volumes amounting to US$12.22 Million from the recent Trade Mission to the Democratic Republic of Congo (DRC). The breakdown comprised spot sales amounting to US$23.36 thousand, confirmed orders of US$998.3 thousand and trade leads worth US$11.20 Million.

The orders include the supply of cooking oil, tea, cleaning chemicals, treated poles, cereals, honey, groundnuts, fertilizer, cigarettes, engineering equipment, Personal Protective Equipment (PPEs) and services such as mining consultancy to DRC from 40 Zambian companies that participated in the 2024 Trade Mission.

In addition, the Trade Mission recorded leads for Zambian Companies to partner with DRC companies as a strategy to promote and sustain entry into the DRC market.

Commenting on the results of the Trade Mission, ZDA Director General Albert Halwampa emphasised that the DRC and Hauti Katanga Province, in particular, are an important market for Zambia.

Mr. Halwampa commended businesses that participated in the trade mission and urged them to ensure that they fulfill the orders and pursue leads to convert them into actual transactions and partnerships.

“The DRC continues to be a lucrative and accessible market for Zambian products including supermarket products, mining supplies, assorted agricultural inputs and PPE supplies,” noted Mr. Halwampa.

The objectives of the Trade Mission were to enhance Zambia‘s presence in the DRC; increase the number of companies with an understanding of the size and dynamics of the DRC Market; support companies to showcase their products, maintain the current foothold in the DRC market and establish new and future business relations; It was also an opportunity to undertake B2B meetings between Zambian companies and their Congolese counterparts.

The trade mission was held in Lubumbashi at the Hypnos Mall from the 16th to the 18th of October 2024 in the DRC.

Zambia Investor Briefing: October

OVERVIEW

•  MINING: First Quantum Minerals (FQM) has confirmed it is engaging in discussions with potential partners regarding its Zambian operations. Meanwhile, President Hakainde Hichilema officially opened the first Zambian Mining and Investment Insaka in Lusaka at the beginning of the month. China Nonferrous Mining Corporation (CNMC) has pledged a $1.3 billion investment in Zambian mining, science, and education technology for the next five years.

• TRANSPORT AND TECHNOLOGY: Zambia has become an official member of the Central Corridor Transit Facilitation Agency (CCTTFA). Additionally, after signing a Memorandum of Understanding (MoU) between the Industrial Development Corporation (IDC) and Chinese JIJIA International Company Limited, Zambia will become the first African country to develop the cholera vaccine.

• FDI: The US’s Millennium Challenge Corporation (MCC) and Zambia have signed a $491 million Zambia Farm to Market Compact. Meanwhile, the Czech Republic has prioritised Zambia as an investment destination in its list of development cooperation countries. Also this month, Zambia's dollar bonds surged following praise from Morgan Stanley for the country's 2025 spending plan.

• WATCH: Zambia is Back has produced a documentary celebrating 60 years of Zambian independence. ‘Zambia: Stronger at 60’ celebrates Zambia’s rich history, vibrant business culture, and promising future. Directed by ZIB’s Choolwe Chibomba, it features a host of guests, including politicians, business leaders, musicians, and football stars.

• READ: The latest Forbes ‘African Undiscovered’ edition, ‘Zambia: Driving Change and Connection’, featuring interviews with Minister of Tourism Rodney Malindi Sikumba and Minister of Energy Peter Kapala among others. 

• COMING UP: KoBold Metals CEO Africa Mfikeyi Makayi will speak at the upcoming Critical Minerals Africa summit in Cape Town from 6-7 November. Makayi will discuss the current project portfolio in Zambia, including the Mingomba Copper Mine, mine development plans and future investment strategy.

A CLOSER LOOK

Mining Developments

First Quantum Minerals (FQM) has confirmed it is engaging in discussions with potential partners regarding its Zambian operations but did not name specific companies involved in the talks. "We're more open to partnerships, and that includes in Zambia, but only if it's in the interest of our Zambian business, the Zambian government and all the stakeholders involved," First Quantum CEO Tristan Pascall said on a conference call with analysts. The announcement follows recent reports that Saudi Arabia's Manara Minerals is close to securing a minority stake in FQM’s Zambian copper and nickel assets in a deal potentially worth $1.5-2 billion.

In other mining news, President Hichilema presided over the official launch ceremony of the Lumwana Mine Super Pit expansion project in Kalumbila District. Barrick Lumwana's extra $500 million investment significantly boosts the country's copper production capabilities. The expanded project is set to create over 3,000 jobs during construction, with an additional 1,500 permanent positions once operational. It includes substantial infrastructure development and the implementation of cutting-edge mining technologies.

The China Nonferrous Mining Corporation (CNMC) has pledged $1.3 billion in investment over the next five years to support its various mining, science, and education technology operations. CNMC group chairperson Xi Zhengping said that by the end of 2025, half of the $1.3 billion investment would have been completed and that the Chambeshi Copper Mines would also receive $450 million. At the end of Xi Zhengping’s three-day visit to Zambia, he told President Hichilema about the plans to reopen shaft 28 at the Luanshya Copper Mine with an investment of $600 million plus a $200 million investment in Sino Metals and a warehouse project.

Earlier this month, President Hakainde Hichilema officiated the inaugural 2024 Zambia Mining and Investment Insaka, which attracted over 2,500 delegates from around the world. The event coincided with the celebration of 100 years of mining in Zambia. During his speech at the Insaka, the President explained, “We need to grow this sector to a level where minor shocks can be absorbed.” He says this is why the government has set a target of three million tonnes of copper production by 2031.

Finally, Zambia unveiled plans to create a mining-funded sovereign wealth fund. The Industrial Development Corporation (IDC), which aims to strengthen Zambia’s industrial base and create jobs, released a statement saying they would establish the sovereign wealth fund next year. The Fund's main goal is to support public finances during financial distress. The IDC said, “the wealth fund will allow us to invest the surplus revenues from our natural resources and other sources, ensuring financial stability.”

Transport and Technology

Zambia has become a full member of the Central Corridor Transit Facilitation Agency (CCTTFA). The Minister of Transport and Logistics, Museba Frank Tayali, signed the agreement during the Interstate Council of Ministers Meeting in Kinshasa, DRC. The Central Corridor is an integrated transport and logistics network which connects member states to the Indian Ocean through the port of Dar es Salaam in Tanzania. Zambia will benefit from greater access to major seaports by joining the Central Corridor, particularly the Port of Dar es Salaam, a significant foreign trade gateway.

In other news, Zambia reached a technological milestone by signing a Memorandum of Understanding (MoU) between the Industrial Development Corporation (IDC) and Chinese owned JIJIA International Company. This MoU will make Zambia the first African country to manufacture the cholera vaccine with the work of the Zambia Pharmaceutical Manufacturing Initiative and partners like Shanghai United Cell Biotechnology Company. Cholera poses a significant threat to the Global South, affecting 1.3 billion people globally and causing 2.86 million cases and 95,000 deaths annually.

Foreign Direct Investment (FDI)

The United States and Zambia have signed a $491.75 million Zambia Farm-to-Market Compact to assist Zambian farmers in accessing regional and global markets. The funds, given under the US MCC, will complement the US government’s investments in the Lobito corridor. The grant, comprised of $458 million from the US government and a $33 million contribution by the Zambian government, was signed as part of ongoing celebrations of Zambia’s 60th anniversary of independence and 60 years of US-Zambian relations.

The Czech Republic says it will invest €3 million per year in various sectors of Zambia from 2024-2030 as Zambia has been prioritised in the European country’s development cooperation list.  Cezch Ambassador to Zambia, Pavel Prochazka said the Czech Republic is investing in education, health, nutrition, and many other sectors to promote development. The announcement was made at the Czech National Day in Lusaka, where Mr Prochazka said Zambia had been prioritized because it stood with the Czech people when the former Soviet Union occupied the country.

Zambia’s 2025 budget was announced by Finance Minister Situmbeko Musokotwane at the end of last month. The Budget impressed global markets with Morgan Stanley upgrading its outlook on the nation's bonds due to rising copper revenues and controlled spending. Yields on the nation’s $1.7 billion bonds due in 2033 dropped to 7.86% after the announcement, a record decline.

LONG READS

Zambia Agrees to $1.5 Billion Debt Revamp with Chinese Lenders (Bloomberg, 27.09.24)

Ambitious but Constrained: A “Climate Changed” Budget? (PWC, 30.09.24)

Can AI help Africa close the development gap? (Financial Times, 17.10.24)

Zambia Considering Debt-for-Nature Swap, Finance Minister Says (Bloomberg, 22.10.24)

Zambia: Driving Change and Connection (Forbes Africa)

UPCOMING EVENTS

4-8 November - African Energy Week Cape Town, South Africa

6-7 November - Critical Minerals Africa Summit Cape Town, South Africa

4-6 December - Africa Investment Forum Rabat, Morocco