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

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                

Zambia Investor Briefing: September 2024

OVERVIEW

• MINING: Canadian mining firm Ivanhoe Mines has signed a Memorandum of Understanding (MoU) with the Zambian Government for exploration projects. Meanwhile, Barrick Gold plans to complete the feasibility study for its Lumwana mine expansion by year-end, with construction set for 2025.

• RAIL: Africa Finance Corporation (AFC) has signed concession agreements with Angola and Zambia for the Zambia Lobito Rail Project. Also this month, President Hakainde Hichilema oversaw the signing of an MoU between China Railway Construction Limited, Zambia, and Tanzania to revitalise the Tanzania-Zambia Railway Authority (TAZARA) railway.

• FDI: President Hichilema attended the 2024 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC). His trip focused on addressing Zambia's energy challenges, attracting investment, and strengthening Sino-Zambian relations.

• WATCH: Sir Paul Collier, Professor of Economics and Public Policy at Oxford University’s Blavatnik School of Government, spoke to ZIB’s Choolwe Chibomba about investment opportunities in Zambia and what a potential second term for President Hichilema would mean for the Zambian economy. Chibomba also spoke to Renew Capital’s Lucas Robinson 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.

• COMING UP: ZDA Director General Albert Halwampa will be speaking at the Africa’s Financial Services Investment Conference (AFSIC) 2024 in London 7-9 October 2024. Halwampa will discuss investment opportunities available in Zambia including energy, agriculture, infrastructure development and manufacturing among others.

A CLOSER LOOK

Mining Developments

Canadian mining firm Ivanhoe Mines has signed a Memorandum of Understanding (MoU) with the Zambian Government, securing commitments for information sharing, identification of prospective land, access to geological data (including a new 750,000-km2 airborne geophysical survey), and support for new licence applications. The company has applied for a substantial exploration licence package in Zambia, with decisions expected by year-end. Ivanhoe co-chairperson Robert Friedland is confident in the potential for success for this new opportunity in Zambia: “We have high conviction that new discoveries are waiting to be uncovered”.

In other mining news, Barrick Gold plans to complete the feasibility study for its Lumwana mine expansion by year-end, with construction set for 2025. CEO Mark Bristow states this project will transform Lumwana into a top 25 copper producer and tier-one mine, better equipped for market volatility. The expansion aims to increase average copper production from 120,000 to 240,000 tonnes annually.

Elsewhere, Arc Minerals director and executive chairperson Nick von Schirnding praised President Hichilema on his administration’s achievements in implementing positive change in the mining sector since coming into office, which he described as “very impressive”. He said the UPND Government’s efforts to “turn this ship around” included “getting rid of the bad apples and sorting out historical corruption”. Von Schirnding also discussed Arc Minerals’ copper joint venture with Anglo American in Zambia, which he said remains firmly on track. The article was originally published in Miningmx’s The Mining Yearbook 2024.

Finally, Zambian mining companies have met with the government to discuss proposals that would potentially give the state a larger share of its mineral resources. In a joint press release, the Zambia Chamber of Mines said it was “committed to engaging with Government in finding solutions on policy and regulatory matters”. In a promising step for continued dialogue, the two parties have developed “a roadmap for the resolution of the matter within the shortest period of time” to ensure continued stability in the sector.

Rail Development Projects

Africa Finance Corporation (AFC) has signed concession agreements with Angola and Zambia for the Zambia Lobito Rail Project. The agreement was signed in a ceremony hosted by U.S. Secretary of State Antony J. Blinken during the UN General Assembly, and marks a significant step forward for the railway project. These agreements authorise AFC to finance, construct, own, and operate the railway, which involves the construction of about 800km of rail line connecting the Benguela line in Angola to the existing Zambian rail lines in Chingola. According to AFC president and CEO Samaila Zubairu, “The Zambia Lobito rail project represents a game-changing development for the region, unlocking tremendous potential for trade, industrialisation and socioeconomic growth”. 

This follows weeks after the US’s announcement at the end of August of its readiness for “phase three” of its Lobito Corridor project, a rail line connecting the mining regions of northwestern Zambia and southern DRC to the Angolan port of Lobito on the Atlantic coast, and thereby to the global export market. Acting Special Coordinator for the Partnership of Global Infrastructure and Investment Helaina Matza announced, “From day one […] we knew that we wanted to continue the work to the Indian Ocean”, revealing President Biden’s administration’s ambitions to extend the line into East Africa.

The Lobito is not the only significant rail development project in the region. Earlier this month President Hichilema oversaw the signing of an MoU between China Railway Construction Limited, Zambia, and Tanzania to revitalise the Tanzania-Zambia Railway Authority (TAZARA) railway. In February, China proposed to spend $1 billion to rehabilitate the rail line through a public-private partnership model.

Forum on China-Africa Cooperation (FOCAC)

President Hichilema attended the 2024 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC). His trip focused on addressing Zambia's energy challenges, attracting investment, and strengthening Sino-Zambian relations. Beijing saw Hichilema engage in bilateral meetings with Chinese firms. China Non-Ferrous Mining Corporation (CNMC) and China Railway Construction Corporation (CRCC) pledged to expand their Zambian investments.

A pivotal meeting with President Xi Jinping reaffirmed the countries' long-standing cooperation. Discussions centred on boosting economic activity and China's support in energy, infrastructure, and mining sectors. The visit also included discussions with Liu Jiachao, Chinese Minister of International Department, about China's 10-point partnership plan with Africa and continued support for Zambia's infrastructure and debt restructuring.

In some good news for Zambia's energy sector three agreements were signed between ZESCO and Power China, including plans for rooftop solar projects and solar photovoltaic plants at Kariba North and Kafue Gorge Lower. An additional MoU between ZESCO and China Datang Corporation aims to diversify Zambia's energy mix beyond hydroelectricity. In another potential boost for Zambian energy, Hichilema met with LONGi Green Energy Technology Company in Xi’an to discuss solutions for Zambia's energy deficit. The company expressed willingness in collaborating on Zambia's short- and long-term energy mix programme.

LONG READS

The mining disruptors that could rock the industry (Investors’ Chronicle, 28.08.24)

China’s Xi Jinping courts African leaders to ward off geopolitical rivals (Financial Times, 04.09.24)

Investors and entrepreneurs collaborate in Zambia for social impact (Forbes, 18.09.24)

Samual Munzele Maimbo: SADC’s candidate for African Development Bank presidency (The Africa Report, 25.09.24)

The Mining Yearbook 2024 (Miningmx)

UPCOMING EVENTS

7-9 October - AFSIC Investing in Africa Conference and Expo London, UK      

7-10 October - Green Energy Africa Summit Cape Town, South Africa      

7-11 October - Zambia Mining and Investment Insaka Lusaka, Zambia     

9-10 October - Zambia Impact Investment Summit Lusaka, Zambia                     

14-15 October - Brazil Africa Forum Sao Paulo, Brazil                   

22-24 October - Africa PPP: Infrastructure and Investment Summit Casablanca, Morocco       

29-30 October - FT Africa Summit London, UK                            

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

Africa FinTech Summit

Nairobi, Kenya                        4-6 September  

UK-Africa Business Forum

London, UK                             26 September

Zambia Impact Investment Summit

Lusaka, Zambia                      9-10 October

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                       

Zambia Investor Briefing: June 2024

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OVERVIEW

• The UAE’s International Resources Holding (IRH), a unit of the country’s most valuable company International Holding Company, is reportedly in talks to buy a stake in Konkola Copper Mines (KCM). According to Chris Griffith, CEO for Base Metals at Metals of KCM’s current owner Vedanta Resources, the company wants to retain majority shareholding in KCM but could sell up to a 30% stake.

• Officials from California-based startup KoBold Metals met with President Hichilema to discuss the development of the Mingomba project, formerly known as Konkola West. KoBold aims to produce more than 300,000 metric tonnes of copper annually at the mine, with shaft sinking set to begin in 2026. 

• Google has entered the Zambian market to revolutionise the Information and Communication Technology (ICT) sector following incentives given by the government. Through its subsidiary Google Cloud, the American technology giant has signed a Memorandum of Understanding (MoU) with the Ministry of Technology and Science which will see the construction of a Center of Excellence in digital transformation, innovation, offering skills development and knowledge sharing.

• President Hichilema embarked on a working visit to the UK where he met with King Charles III, government officials, investors and members of the diaspora. During the visit the President received an honorary degree from Heriot Watt University in recognition of his leadership in transforming education in the southern African country.

• In welcome news for Zambia’s debt restructuring efforts, international bondholders met early this month to approve the exchange of $3 billion of existing Eurobonds. During his UK trip, President Hichilema met with Alex Garrard of Amia Capital, one of the representatives of the Eurobond holders. There, the President reiterated his commitment to transforming the Zambian economy through investment.

A CLOSER LOOK

Mining Developments

The UAE’s International Resources Holding (IRH), a unit of the country’s most valuable company International Holding Company, is reportedly in talks to buy a stake in Konkola Copper Mines (KCM). Chris Griffith, CEO for Base Metals of KCM’s current owner Vedanta Resources, told Reuters IRH has expressed interest in acquiring the stake and is conducting due diligence on the copper assets. According to Griffith, Vedanta wants to retain majority shareholding in KCM but could sell up to a 30% stake. He said there were other investors seeking the potential to invest in KCM: “We’ve advanced down the road with a number of partners already that are in the process of doing their due diligence”.

Despite reports in March of IRH’s interest in the acquisition of an 80% stake in Lubambe Copper Mine, JCHX Mining, which had previously agreed to purchase the asset, is now reportedly close to concluding a deal on the purchase. According to sources, the Chinese company’s bid to buy the 80% stake from EMR Capital is nearing completion after Abu Dhabi’s IRH gave up its pursuit of the asset. EMR’s CEO Jason Chang told Reuters, “We are happy to state the transaction as announced is on track and we anticipate to be closing in coming weeks”.

Elsewhere, officials from California-based startup KoBold Metals met with President Hichilema to discuss the development of the Mingomba project, formerly known as Konkola West. The company announced its discovery of a vast copper deposit at the site in February, claiming it to be the country’s largest copper deposit in a century. KoBold aims to produce more than 300,000 tons of copper annually at Mingomba, with shaft sinking set to begin in 2026. Bloomberg reported the company could spend $2.3 billion on the project.

Rail and Transport Development Projects

Following collaboration between the Government of Zambia and TradeMark Africa (TMA), the upgrade of the Nakonde border into a one stop border post (OSBP) has officially been handed over to the contractor. The $10.6m UK government-funded project will improve the flow of goods and people along the Dar es Salaam Corridor. It will streamline operations, enhance customs efficiency, and reduce cargo clearance on both sides of the border. According to TMA’s Director of Southern Africa Jovin Mwemezi, “We are happy to be partnering with the governments of the UK and Zambia to implement such a critical trade facilitation project, which has the potential to catalyse regional trade and facilitate intra-regional commerce.”

Elsewhere, work on the Lobito Corridor, a key railway line connecting Zambia and the DRC to the Angolan port, is ramping up. The Lobito Atlantic Railway operator has ordered 275 modern flatbed railcars for transporting containers along the 1,300km long route. Other plans to revitalise the route include upgrading the tracks, locomotives, and freight cars. When complete, the project will greatly contribute to the development of the region’s transport infrastructure and trade connectivity.

Energy Investment

The Government of Zambia has announced an open access policy in the energy sector in a move to revitalise the country’s energy industry following the challenges it has faced during the drought. The policy – which will enable non-discriminatory access to transmission and distribution networks – aims to create a more competitive environment in the sector in a bid to increase investment from private investors and encourage innovation in sustainable energy solutions.

President Hichilema’s Trip to the UK

President Hichilema embarked on a state visit to the UK where he met with government officials, investors, representatives of Eurobond holders, and members of the diaspora. The Zambian president met with King Charles at Buckingham Palace, affirming the deep relations between the two countries. He later journeyed to Scotland to meet First Minister John Swinney, where Hichilema emphasised Zambia’s core foreign policy message of “economic diplomacy to benefit [Zambian] citizens through investment, trade, and partnership”. Bilateral ties between the two nations are strong: Zambia is one of the Scottish government’s four international development partner countries.

His UK trip saw the president receive an honorary Doctorate from Edinburgh’s Heriot-Watt University “in recognition of his leadership in transforming education” in Zambia, including making education free for every person in the country and recruiting nearly 40,000 new teachers. President Hichilema also visited the University of Oxford. There, he attended a Meeting of Eminent Persons at the Blavatnik School of Government, delivered a keynote address, and engaged with young members of the Zambian diaspora.

Foreign Direct Investment

The Young Presidents Organization (YPO) met in Livingstone this month for its annual conference. Among the attendees – which included over 250 global business leaders from 150 countries – was President Hichilema. In his address to the summit the President encouraged YPO members to invest in Zambia, particularly in health, mining, agriculture, tourism and energy, and pointed to the country’s stable investment climate.

In other news, President Hichilema met with the President of the Japan International Cooperation Agency (JICA) Dr Tanaka Akihito at State House. Over the years JICA has played a key role in supporting development projects in Zambia across multiple sectors, including agriculture, healthcare, education, rural development and capacity building. Hichilema said the country aimed to deepen its relationship with JICA and “leverage their technology in areas such as water harvesting, irrigation, and alternative energy”.

Finally, President Hichilema said farewell to outgoing British High Commissioner to Zambia Nicholas Woolley as he concluded his posting. In a statement posted to Facebook, the President described how during Woolley’s tenure the two countries have deepened relations “based on common values such as democracy, the rule of law, liberty, and the fight against corruption”.

LONG READS

Only way is up for G-20 Common Framework after Zambia debt restructuring (The Africa Report, 07.06.24)

How to speed up sovereign debt restructuring (Financial Times, 13.06.24)

Zambia needs copper rethink to achieve sustainable debt, economists say (The Africa Report, 18.06.24)

From Zambia to Nigeria: Cashing in on Africa’s agriculture opportunities (How we made it in Africa, 19.06.24)

Saudi Arabia’s and the UAE’s quest for African critical minerals (The Arab Gulf States Institute in Washington, 20.06.24)

UPCOMING EVENTS

26 June – 2 July - Zambia International Trade Fair, Ndola, Zambia           

3-4 July - Mining on Top Africa (MOTA), Paris, France              

17-19 July - Africa Impact Summit, Nairobi, Kenya           

22-24 July - 2nd UN Tourism Conference on Brand Africa, Livingstone, Zambia   

24-26 July - International Conference on Development and Investment in Infrastructure (DII), Livingstone, Zambia   

CONTACT US

If you would like to find out more, receive tailored briefings on specific sectors, or send news stories to be included in the next briefing get in touch via info@zambiaisback.com.

Zambia Investor Briefing: May 2024

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OVERVIEW

• Zambia is moving ever closer to emerging from its debt default. Finance Minister Situmbeko Musokotwane announced this week that nearly all of the holders of the $3 billion outstanding international bonds have accepted the restructuring proposal. According to the minister, “Finalising this agreement with bondholders will create the fiscal breathing space necessary for Zambia to remain on a trajectory of sustainable economic growth”.

• Abu Dhabi’s International Resources Holding (IRH) is reportedly in talks with the government about the purchase of a stake in Konkola Copper Mines (KCM) from Indian billionaire Anil Agarwal’s Vedanta. According to CEO Syed Basar Shueb, “We are talking to the government because it makes a lot of sense that one party manages Mopani and KCM”.

• Turkish company Yeo has entered into a partnership with the Zambian sustainable energy firm GEI Power to invest $65 million in the development of a 60 MWp photovoltaic solar power plant with a 20 MWh battery energy storage in the country.

• In an interview with Global Investor’s investment guide to Africa, President Hakainde Hichilema discussed subjects including Zambia’s mining sector, the government’s efforts in the debt restructuring, and green energy initiatives. Also featured in the edition are Zambia’s High Commissioner to the UK Macenje Mazoka, Albert Halwampa and Professor Biemba Maliti of the Zambian Development Agency (ZDA), Finance Minister Situmbeko Musokotwane, and other Zambian government officials and industry leaders.

• Minister for Green Economy and the Environment Collins Nzovu spoke to Zambia Is Back’s Choolwe Chibomba about the Government’s response to the ongoing drought, climate change resilience, and the country’s role in the global transition to green energy. The minister also gave an interview with The Guardian where he called for reform of climate financing to help African countries avoid the worse impacts of the climate crisis and stressed that Zambia is “ready for investment”.

• Science and Technology Minister Felix Mutati has announced a $54 million investment in Zambia’s information and communications technology sector following a waiver on ICT imports. This was revealed as he welcomed a group from the Common Market for Eastern and Southern Africa (COMESA).

• In a boost for the country’s tourism sector, Zambia clinched the title of Best African Leisure Destination at the 2024 Global Traveller Awards.

A CLOSER LOOK

Mining Developments

Syed Basar Shueb, CEO of the UAE’s International Holding Company (IHC), has spoken to the Financial Times about the Zambian ventures of its subsidiary International Resources Holding (IRH). The company broke into the market last year and made headlines with its acquisition of Mopani Copper Mines. Now, Shueb has told the FT that IHC is expected to make about $1 billion of mining acquisitions this coming year. Among them may be Zambia’s Konkola Copper Mines (KCM): IRH is reportedly in talks with the government about the purchase of a stake from Anil Agarwal’s Vedanta. According to Shueb, “We are talking to the government because it makes a lot of sense that one party manages Mopani and KCM”.

Elsewhere, Canada’s Midnight Sun Mining Corp. has announced it is now “sufficiently funded” to carry out explorations in Zambia after closing a $10 million placement. It has previously partnered with the Jeff Bezos-backed startup KoBold Metals to explore the Dumbwa target within the Solwezi copper project. This will allow Midnight Sun “to explore this vast property with the necessary capital and expertise”, according to the company’s marketing and communications director Adrien O’Brien. Drilling is expected to begin in the coming months.

In the US, the White House senior adviser for energy and investment Amos Hochstein has spoken of the importance of countries like Zambia, as well as its neighbouring DRC, in meeting the global demand for clean energy components and power infrastructure, which will be essential to the green energy transition. Hochstein argued the US must encourage mining projects in these countries to ensure “a diversified, sustainable and equitable energy transition”.

Debt Restructuring

Zambia is moving ever closer to emerging from its debt default. Finance Minister Situmbeko Musokotwane announced this week that nearly all of the holders of the $3 billion outstanding international bonds have accepted the restructuring proposal. According to the minister, “Finalising this agreement with bondholders will create the fiscal breathing space necessary for Zambia to remain on a trajectory of sustainable economic growth”.

The International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva had previously said that “The successful implementation of this agreement will provide significant external debt service relief and further contribute to Zambia’s efforts to restore debt sustainability”.

On 7 May a team from the IMF concluded a two-week visit to Lusaka where they were discussing Zambia’s economic policies for its third review of the country’s economic programme, in order to unlock another funding tranche of $180 million. The IMF praised Zambia’s “commendable progress in implementing crucial reforms under the fund-supported program, including significant fiscal efforts in 2023 despite lower mining revenues”.

Despite the punishing effects of the drought on the country’s economy, the Treasury remains optimistic. Its Secretary Felix Nkulukusa recently announced the country’s economic growth is expected to bounce back next year, with GDP expected to expand by about 6% in 2025 and a similar amount in 2026.

The British High Commissioner to Zambia Nicholas Woolley this month praised the progress made to date regarding the debt restructuring in an interview with ZNBC. He also described the country as a “beacon of democracy”, days before the president launched the new National Policy on Anti-Corruption. Hichilema outlined the government’s focus on key areas which will aid the fight against corruption, namely economic expansion, growth, business and entrepreneurship.

Energy Investment

Turkish company Yeo has entered into a partnership with the Zambian sustainable energy firm GEI Power to invest $65 million in the development of a 60 MWp photovoltaic solar power plant with a 20 MWh battery energy storage in the country. The project, which is slated for commercial operation in September 2025, will provide sustainable energy solutions to Zambia’s power deficit. Yeo’s Vice President of Business Development Yasin Duven said the project, which aims to supply at least 65,000 households, “demonstrates [Yeo’s] commitment to sustainable development in Zambia”.

Foreign Direct Investment

Lusaka hosted the China-Zambia High Quality Development Forum this month in an effort to promote cooperation between the two countries. According to Liu Guoyu, economic and commercial counsellor at the Chinese Embassy in Lusaka, 21 cooperation agreements were signed at the forum to a total value of about $1.03 billion. In a keynote speech Hichilema declared the country ready to welcome more Chinese investments that would boost Zambia’s development agenda in sectors such as agriculture, mining, manufacturing and energy.

A Swedish delegation, led by the Minister for International Development Cooperation and Foreign Trade Johan Forrsell, met with Hichilema at State House. The meeting focused on strengthening trade relations and, with Swedish support, improving Zambian resilience in agriculture, green energy, and water harvesting. Sweden has committed over $200 million to its strategy for development cooperation with Zambia over the period 2024-2028.

Elsewhere, State House has marked the 60th anniversary of bilateral relations between Zambia and Japan by hosting Japanese envoy Takeuchi Kazuyuki.

Regional Partners

The beginning of May saw President Hichilema on a state visit to Kenya at the invitation of President William Ruto. There, he addressed the African Union’s (AU) Africa Fertilizer and Soil Health Summit in Nairobi. In his speech he emphasised the need to mobilise capital and invest in the development of agricultural technology, including the need to make fertiliser widely available and affordable across the Continent. On the summit’s sidelines he met with the US Special Envoy for Global Food Security Dr Cary Fowler to discuss the country’s emergency drought situation.

During his trip the Zambian president also addressed issues of regional insecurity, having been invited to speak at the High Level Mediation for South Sudan. Hichilema once again reiterated that “instability anywhere is instability everywhere” and called for a cessation of hostilities in wider Sudan.

LONG READS

Explainer: Does Zambia’s bondholder deal mean it has resolved its default? (Reuters, 01.05.24)

Why African countries are turning their backs on loans from Beijing (The Africa Report, 03.05.24)

Africa’s top companies 2024: South Africa struggles but progress in wider region (African Business, 10.05.24)

Critical Minerals Africa Summit to profile Africa’s investment outlook (African Business, 13.05.24)

Reimagining Zambia’s restructuring in an alternative New York dimension (Financial Times, 16.05.24)

UPCOMING EVENTS

6 June - The Africa Debate, London, UK    

7 June - Africa Tech Summit, London, UK      

11-12 June - ICA Zambia 2024, Lusaka, Zambia

25-27 June - Africa Hospitality Investment Forum, Windhoek, Namibia

25-28 June - Africa Energy Forum, Barcelona, Spain

26 June - 2 July - Zambia International Trade Fair, Ndola, Zambia   

CONTACT US

If you would like to find out more, receive tailored briefings on specific sectors, or send news stories to be included in the next briefing get in touch via info@zambiaisback.com.

Zambia Investor Briefing: April 2024

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OVERVIEW

• The UAE’s International Resources Holding (IRH), a unit of the country’s most valuable company International Holding Company, has reportedly made an offer of over $1 billion for a 51% stake in Konkola Copper Mines (KCM). The proposed deal, allegedly worth over $1.1 billion, would see IRH take a majority stake in the Zambian assets of Vedanta Resources, owned by Indian billionaire Anil Agarwal.

• The EU-Zambia Business Forum, held in Kitwe this month, brought together policymakers, industry leaders, and other stakeholders in the copper industry to explore opportunities for sustainable growth and green investments in the Zambian copper industry under the theme ‘Growing the Copper Industry through Sustainable Value Chains’.

• Canadian energy producer SkyPower Global has signed a power purchase agreement (PPA) with state-owned utility company ZESCO to deliver 1,000 MW of solar energy. This will support the Green Giant Zambia Project. A statement by President Hichilema said the project aims to substantially increase Zambia’s capacity for renewables in order to address “both current and future energy needs”, both for domestic usage and the mining economy. 

• The Administrator of the US Agency for International Development (USAID) Samantha Power has promoted the Lobito Corridor investment while on a visit to Angola. The rail line will link Zambia and the DRC to the Angolan port of Lobito and bolster trade and economic development in the region by significantly reducing transport time for the country’s mining output, including copper and cobalt, to reach the coast.

A CLOSER LOOK

Mining Developments

The UAE’s International Resources Holding (IRH), a unit of the country’s most valuable company International Holding Company, has reportedly made an offer of over $1 billion for a 51% stake in Konkola Copper Mines (KCM). The proposed deal, allegedly worth over $1.1 billion, would see IRH take a majority stake in the Zambian assets of Vedanta Resources, owned by Indian billionaire Anil Agarwal. A source told Reuters that the company is seeing interest in KCM from various investors.

It has been a busy few weeks for IRH in Zambia. Reuters reported in March that the Abu Dhabi company was interested in acquiring an 80% stake in Lubambe Copper Mine, despite JCHX Mining having agreed in January to purchase the asset. Shortly after, Hichilema announced the IRH had acquired a 51% controlling stake in Mopani Copper Mines ahead of fellow contenders Sibanye Stillwater and China’s Zijin Mining Group.  

Elsewhere, with First Quantum Minerals (FQM) allegedly considering the sale of up to a 30% stake in its copper mines in Zambia, reports emerge of companies considering bidding for a stake. Chief among them is mining conglomerate Rio Tinto and Saudi Arabia’s Manara Minerals Investment. The assets, which include Sentinel and Kansanshi copper mines, are also being apparently being assessed by China’s Zijin Mining Group and Japanese companies Mitsui and Sumitomo. It is likely FQM will seek initial bids in the coming weeks.

Debt Restructuring

Following the welcome news at the end of March that Zambia had agreed a revised debt restructuring deal with bondholders, government is now in now in talks to restructure $3.3 billion of commercial debt. Commercial lenders yet to agree to a deal include Chinese state-owned China Development Bank and Industrial and Commercial Bank of China, regional African Export-Import Bank, and western Standard Chartered. Finance Minister Situmbeko Musokotwane has expressed optimism, telling Bloomberg: “We expect the deal to be done in months” having already made “a lot of progress”.

FDI

The EU-Zambia Business Forum, held in Kitwe this month, brought together policymakers, industry leaders, and other stakeholders in the copper industry to explore opportunities for sustainable growth and green investments in the Zambia copper industry under the theme ‘Growing the Copper Industry through Sustainable Value Chains’. Hichilema officiated and addressed the summit. The EU delegation was led by Henrik Hololei, special advisor at the European Commission Directorate for International Partnerships. Hololei has since announced the EU is ready to support Zambia in making its railway network fully operational. The revitalisation of the railways will play a major role in transforming the nation’s economic growth.

Elsewhere, in a significant boost for Zambia’s mining economy, Japan has committed $1.5 billion to support investments in Zambia’s mines by Japanese companies. This was announced during a bilateral meeting in Tokyo between the Minister of Economy, Trade and Industry Paul Kabuswe and Japanese officials at the sidelines of the Zambia-Japan Mining Investment Seminar.

In other news, State House hosted Speaker of the Senate of the Czech Republic Milos Vystrcil, who was leading a delegation from the Czech business community to explore opportunities in Zambia.

Regional Partners

President Hichilema visited Dar es Salaam to celebrate the 60th anniversary of Tanzania’s Union Day. There he held bilateral talks with the country’s president Samia Suluhu Hassan and met with Dr Akinwumi Adesina, President of the African Development Bank to discuss issues of regional integration.

Hichilema also attended the 12th African Land Forces summit in Livingstone, with the theme was ‘Regional Solutions to Transnational Problems’. The president addressed the gathering of leaders and military personnel as the Chair of the Organ on Politics, Defence and Security of SADC, where he stressed the importance of peace and security to economic growth on the continent.

OTHER NEWS

Zambia: Investment flows to return following $3bn restructure, says finance minister (The Africa Report)

How Gulf states are putting their money into mining (Financial Times, 01.04.24)

Zambia: The journey of building a retail chain for farmers (How We Made It In Africa, 03.04.24)

UPCOMING EVENTS

06-09.05.24 - US-Africa Business Summit, Dallas, Texas                         

07-11.05.24 - Africa Sustainable Trade Week Expo, London, UK                            

16-17.05.24 - Africa CEO Forum, Kigali, Rwanda  

27-31.05.24 - African Development Bank Group’s Annual Meetings, Nairobi, Kenya                       

28.05.24 - Zambia-Netherlands Business Forum, The Hague, Netherlands      

Zambia Investor Briefing: March 2024

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OVERVIEW

• In a major development that brings Zambia significantly closer to the completion of its debt restructuring, the government has agreed a revised restructuring deal with bondholders for nearly $4 billion. The Zambian government has said it had “received confirmation that the agreed terms are compatible” with the view of official creditors. This leaves only debts to private corporations still in need of restructuring.

• International Resource Holdings (IHR), a unit of Abu Dhabi’s International Holding Company (IHC), is reportedly interested in acquiring an 80% stake in Lubambe Copper Mine, despite China’s JCHX Mining having agreed in January to purchase the asset. This comes days after Hichilema announced the UAE firm had acquired a 51% controlling stake in Mopani Copper Mines, ahead of Sibanye Stillwater and China’s Zijin Mining Group.

• According to First Quantum Minerals (FQM)’s Chairman Robert Harding, multiple parties have expressed interest in acquiring a minority stake in the mining conglomerate’s Zambian operations.

• Fund manager XSML Capital will expand into Zambia this year, its managing partner Barthout van Slingelandt told The Africa Report. Currently based in Angola, the DRC and Uganda, XSML focuses on SMEs – particularly in consumer-facing industries such as retail, call centres and hospitals. The fund is expected to invest in 40 to 50 companies across the four countries with an average ticket size of $2.5 million.

• The Zambian government has signed a partner support agreement worth $8.2 million with TradeMark Africa (TMA) to upgrade the Nakonde One Stop Border Post, a key Zambia-Tanzania trade route. The investment is set to streamline operations along the corridor. Speaking at the singing of the agreement, TMA CEO David Beer said the deal marks the beginning of several transformative projects that have been lined up for Zambia.

A CLOSER LOOK

Debt Restructuring

Zambia has agreed a revised debt restructuring deal with bondholders of nearly $4 billion. This deal with private creditors was the final hurdle for the country's debt restructuring, as the president had announced in February that China and India – the last two countries that had been yet to sign as official creditors – had signed agreements to restructure their holdings of Zambian debt.

The Zambian government has said it had “received confirmation that the agreed terms are compatible” with the view of official creditors. The terms include “foregoing around $840 million in claims and offering approximately $2.5 billion in cash flow relief through reduced debt servicing payments during the IMF Programme period”. According to Hichilema: “Now that this is done, our economic recovery is back on track”.

This comes days after Hichilema told the Financial Times that the delay of Zambia’s creditors to end the stand-off over its $13 billion debt restructuring was “an indictment” of the credibility of the global system, as he urged the country’s creditors to “walk the extra mile and close this transaction”.

Mining Developments

International Resource Holdings (IHR), a unit of Abu Dhabi’s International Holding Company (IHC), is reportedly interested in acquiring an 80% stake in Lubambe Copper Mine, despite China’s JCHX Mining having agreed in January to purchase the asset. Lubambe, which is currently owned by the private equity manager EMR Capital, has the potential to be one of the country’s largest copper mines. The Zambian government through ZCCM Investment Holdings owns a 20% stake, and has yet to approve the facility’s sale.

This followed shortly after Hichilema’s announcement that the UAE firm had acquired a 51% controlling stake in Mopani Copper Mines, ahead of Sibanye Stillwater and China’s Zijin Mining Group. According to ZCCM-IH the deal will see $620 million provided in the form of new equity capital, while around $400 million will be provided as a shareholder loan. The Zambian government retains a 49% stake. The president described the deal as a “significant milestone, being the first substantial investment from the UAE in Zambia”.

In other mining developments, First Quantum Minerals (FQM)’s Chairman Robert Harding told Bloomberg multiple parties have expressed interest in acquiring a minority stake in the mining conglomerate’s Zambian operations. According to Harding, the company is looking for a partner that could “perhaps take interest in working with us on a future project”. FQM’s Zambian assets include the Sentinel and Kansanshi copper mines, as well as a nickel mine. Last year the country accounted for around half the company’s copper output and revenue, delivering more than $450 million in profit.  

Elsewhere, Jubilee Metals is looking to “significantly step-up” its copper output in Zambia, according to CEO Leon Coetzer. To reflect the company’s planned expansion it has unveiled two separate boards for its Zambian and South African operations.

Foreign Direct Investment

The UK has pledged £6 million to protect Zambia’s forests and cut emissions in the country. Part of the funding will “support the rollout of climate-smart agriculture practices among smallholder farmers”, which will help to strengthen food security. Training is set to be provided to over 100,000 farmers .

This month, Hichilema hosted the Ambassador of Finland Saana Halinen to State House, as well as a delegation of the Finance Committee of the Parliament of Finland. The parties called for increasing cooperation between the two nations, particularly in mining where Finland has a great deal of experience in geological surveying.

The Zambian president also welcomed to State House a delegation from Saudi Arabia, led by its Minister of Environment, Water, and Agriculture Abdurahman Abdulmohsen A. Alfadley. They discussed avenues for future cooperation and investment, particularly technology and mining.

OTHER NEWS

KoBold Metals discovery accelerates global race for critical minerals (The Africa Report, 06.03.24)

Three presidents on how to make global finance work better for Africa (The Economist, 06.03.24)

Bill Gates-backed startup confident it can unearth more buried treasure after a historic copper find (CNBC, 06.03.24)  

Blue economies could transform Zambia from landlocked to ‘land-linked’ nation (Daily Maverick, 13.03.24)

European Investment Bank sees green opportunities in Africa (Bloomberg, 13.03.24)

UPCOMING EVENTS

EU-Zambia Copper Business Forum: Growing the Copper Industry in Zambia through Green Value Chains - Kitwe, Zambia, 10-12.04.24

World Travel Market Africa - Cape Town, SA, 10-12.04.24          

Invest in Africa Summit 2024 - Wassenaar, Netherlands, 16-17.04.24

20th Annual AVCA Conference & VC Summit - Johannesburg, SA, 22-26.04.24

Sustainable Horizons: Investing in the Renewable Power of Africa (Invest Africa) - Johannesburg, SA, 23.04.24

AfBC Africa Investment Forum 2024 - London, UK, 25.04.24 

AIX: Energy in Transition 2024 - London, UK, 25-26.04.24

Select Zambia Investment Forum 2024 - Lusaka, Zambia, 26.04.24

Zambia Investor Briefing: February 2024

OVERVIEW

• President Hakainde Hichilema addressed the opening session of Cape Town’s Investing in African Mining Indaba earlier this month. His speech emphasised Zambia’s message of “Invest with Confidence” and highlighted recent investments in the country totalling over $4 billion in the past two years. Hichilema also outlined his government’s work with local and international partners in boosting Zambia’s energy and transport infrastructure as he called for investment partnerships to “power this new, green African future”. 

• KoBold Metals, a mining consortium backed by tech giants Bill Gates and Jeff Bezos, has announced its discovery of a vast copper deposit in Zambia. The California-based startup claims its Mingomba site, in the northern Copperbelt province, is the country’s largest copper deposit in a century.

• President Hakainde Hichilema, together with Senior Advisor to President Biden Amos Hochstein and President of the Africa Finance Corporation (AFC) Samaila Zubairu, convened an investment forum for the Lobito Corridor project in Zambia. The Partnership for Global Infrastructure and Investment (PGI) Lobito Corridor Private Sector Investor Forum in Lusaka brought together over 250 government and industry leaders from Zambia, Angola, the DRC, the EU and the US, as well as international investors.

• The Zambian Kwacha is Africa’s best-performing currency in 2024 when compared to the US dollar. The currency is on its longest winning streak in a year, largely because of President Hakainde Hichilema’s government’s decision to increase interest rates and mandate that the central bank retain money in the reserve.

• German company 7YRDS Group is set to invest $100 million in two solar projects in Kafue and Sesheke, with a total expected output of 100MW. Operations will commence in 2025 and are expected to create around 1,000 jobs. President Hichilema praised the investment and emphasised his government’s commitment to collaboration with international partners to strengthen Zambia’s energy sector.

• In a positive development in the ongoing efforts to restructure Zambia’s debt, Hichilema has announced that China and India – the last two countries that had been yet to sign as official creditors – have signed agreements to restructure their holdings of Zambian debt. Attention now turns to private creditors. Finance Minister Situmbuko Musokotwane had recently expressed optimism that the restructuring would be completed in the first half of this year.

A CLOSER LOOK

Investing in African Mining Indaba 2024

President Hakainde Hichilema addressed the opening session of Cape Town’s Investing in African Mining Indaba earlier this month. His speech emphasised Zambia’s message of “Invest with Confidence” and highlighted recent investments in the country totalling over $4 billion in the past two years. Hichilema also outlined his government’s work with local and international partners in boosting Zambia’s energy and transport infrastructure as he called for investment partnerships to “power this new, green African future”.  

First Quantum Minerals (FQM) pledged its support for the president’s vision for the future of Zambian mining in a talk given by the company’s Lead of Infrastructure Development, Jed Goldstein, in which he stressed FQM’s “commitment to Zambia”. The government’s efforts also garnered praise from Anglo American CEO Duncan Wanblad, who said Zambia “is doing a really good job of making mining investable in that country”.

Mining Developments

KoBold Metals, a mining consortium backed by tech giants Bill Gates and Jeff Bezos, has announced its discovery of a vast copper deposit in Zambia. The California-based startup claims its Mingomba site, in the northern Copperbelt province, is the country’s largest copper deposit in a century. KoBold’s founder and president Josh Goldman told the Financial Times: “We now know that Mingomba will be one of the very highest grade large copper mines when put into production”, comparing it to the Kamoa-Kakula mine in the DRC in scale and grade.

The startup deploys artificial intelligence in its exploration for minerals, including copper, cobalt, nickel and lithium. KoBold’s plans to build a $2 billion mine at Mingomba are set to be fast-tracked in the rush to meet demand for critical metals as part of the green energy transition. Goldman told Reuters the company is “receptive to conversations about all kinds of different partnerships” in this regard. If successful, the project will be instrumental in meeting Hichilema’s aim to treble Zambia’s copper output to 3 million tonnes by 2032.

KoBold is also set to expand its presence in Zambia after signing a deal with Midnight Sun Mining to explore its Dumbwa Target in Solwezi.

In other mining news, Anglo American is in the early stages of exploring for copper and cobalt in the North-Western Province, with its CEO Duncan Wanblad announcing that Zambia’s mining sector is “on track for renewed activity”.

Rail Development Projects

President Hakainde Hichilema, together with Senior Advisor to President Biden Amos Hochstein and President of the Africa Finance Corporation (AFC) Samaila Zubairu, convened an investment forum for the Lobito Corridor project in Zambia. The Partnership for Global Infrastructure and Investment (PGI) Lobito Corridor Private Sector Investor Forum in Lusaka brought together over 250 government and industry leaders from Zambia, Angola, the DRC, the EU and the US, as well as international investors, in order to “unlock the enormous potential of this region”. Various commitments were announced during the PGI Forum, including a $250 million investment to support the project from the US International Development Finance Corporation.

Speaking at the forum, President Hichilema described the Lobito Corridor as a “once in a lifetime” opportunity for Zambia’s development. It will significantly reduce transport time for the country’s mining output, including copper and cobalt, to reach the coast. The rail line has its first user lined up after Canada’s Ivanhoe Mines signed a deal with commodities trader Trafigura Group to transport copper on the line from the DRC to Lobito.

Also this month, China announced plans for a $1 billion project restoring a rail line connecting Zambia’s copperbelt region with the Tanzanian port of Dar es Salaam. This follows reports from November 2023 that the Chinese government had asked China Railway Construction Corp., a state-owned company, to negotiate a concession to revive and operate the Tazara railway. The line has fallen into disrepair in past decades but originally had a capacity of about five million tonnes per year. Hichilema has said Zambia is on track to conclude the deal by September.

OTHER NEWS

How five southern African countries worked to put KAZA on the map (Forbes, 07.02.24)

Canadian government hails Zambia as attractive mining investment destination (Lusaka Times, 13.02.24)

Zambia’s Proflight adds Cape Town to its list (eNCA, 22.02.24)

US bets on $2.3 billion African railway to help deliver EV revolution (Bloomberg, 21.02.24)

Modern mining: A sustainability balancing act (African Business, 26.02.24)

UPCOMING EVENTS

Bonds, Loans & ESG Capital Markets Africa 2024 - Cape Town, SA, 05-06.03.24

Global Trade Review Africa 2024 - Cape Town, SA, 07-08.03.24

Global Impact Summit: Sustainable Media and Publishing for Sustainable Economic Development - Livingstone, Zambia    07-09.03.24

Fintech Spotlight: Moving Africa’s Money (Invest Africa) London, UK - 21.03.24

Zambia Investor Briefing: January 2024

OVERVIEW

• At the end of December, Zambia’s Copperbelt Energy Corporation Plc (CEC) announced the successful registration of its $200 million Green Bond with the Securities and Exchange Commission, the first in Zambia. CEC Managing Director Owen Silavwe said the bond’s proceeds would “accelerate the actualisation of our ambitions to generate at least 200MW of renewable energy and specifically solar energy with possible storage implementation”.

• Barrick Gold’s chief executive Mark Bristow met with President Hakainde Hichilema to inform him the expansion of Barrick’s Lumwana copper mine is being accelerated, with first production now scheduled for 2028. Last year the company had pledged $2 billion in a bid to increase copper production to a projected 240,000 tonnes per year and extend the life of the mine to 2060.

• SG Global Renewables Centre (GRC), a Scotland-based hub for facilitating knowledge exchange between international development partner countries and the Scottish renewables sector, has formalised a partnership with the Zambia Renewable Energy Association (ZARENA), as well as in Malawi and Rwanda. GRC offers networking, shared learning, and resources to enable increased deployment of sustainable energy in its partner countries. Chairman of ZARENA Jospeh Mutale said the initiative would support the association’s objective of “delivering a transformative impact on the roll out of sustainable renewable energy solutions in Zambia”.

• Zambia’s Transport and Logistics Ministry has announced plans to build a new rail connection linking Mpulungu harbour on Lake Tanganyika to a line that runs to Tanzania. The proposed 192km line will run through northern Zambia to the lake’s southernmost harbour and will boost trade in the region. The Transport and Logistics Ministry has asked companies to express their interest in financing and building the concession.

• Minister of Science and Technology Felix Mutati has announced plans to establish Community Digital Transformation Centres (CDTCs) across the country in order to enhance Zambia’s digital capabilities and empower citizens through training and online service delivery. The plans have been developed on the back of Zambia’s  recent partnership with Starlink, SpaceX’s satellite internet service, which is providing lawmakers with Starlink kits in their constituencies and enables internet connectivity even in remote areas.

• Zambia’s “investment promotion ambassadors” visited Davos for the World Economic Forum annual meeting. The delegation included Finance and National Planning Minister Dr Situmbeko Musokotwane; Commerce, Trade and Industry Minister Chipoka Mulenga; and Albert Halwampa, Director General of the Zambia Development Agency (ZDA). Musokotwane said regarding the trip, “We are here to make diligent efforts to attract the best available global investment prospects in the green economy, mining, agriculture, tourism, value-addition, human development, and other growth boosting ventures, to our beloved country Zambia”.

• Zambia Is Back’s Choolwe Chibomba sat down to interview Monica Musonda, CEO of Java Foods. They covered topics such as her business journey, the role of women in Zambia’s economic development, and why now is the time to invest in Zambian businesses.

• President Hichilema is due to deliver a keynote address at Invest in African Mining Indaba 2024 in Cape Town next week. He is expected to discuss the future of mining in Zambia, outlining his plans to expand copper production and position the country as a major player in the global mining industry. He will also address efforts for Zambian mining to expand into a wider array of critical minerals, including cobalt, nickel, and manganese. The president’s speech will also explore the potential for collaboration between the government, industry stakeholders, and investors.

A CLOSER LOOK

Copperbelt Energy Corporation registers Zambia’s First $200 Million Green Bond

At the end of December, the Copperbelt Energy Corporation Plc (CEC) announced the successful registration of its $200 million Green Bond with the Securities and Exchange Commission, the first in the country. The company, which is based in Zambia, provides power infrastructure solutions. CEC Managing Director Owen Silavwe said the bond’s proceeds would “accelerate the actualisation of our ambitions to generate at least 200MW of renewable energy and specifically solar energy with possible storage implementation”.

The bond aligns with Zambia’s Green Growth strategy, devised by Hichilema’s government. The strategy aims to decarbonise the economy by developing resource-efficient and climate-resilient infrastructure. The Minister of Green Economy and Environment Collins Nzovu spoke at COP28 about the government’s establishment of two regulatory frameworks to aid in this endeavour: the Green Bonds Framework issued by the Securities and Exchange Commission and the Green Loans Framework issued by the Bank of Zambia.

Proceeds from the bond will finance the development of solar generation projects in Zambia within the CEC Group through CEC Renewables, an investment vehicle designed to realise renewable energy development. According to a statement issued by CEC, the bond is “a first for Zambia’s capital markets and is expected to attract more green finance in the country”. CEC’s announcement highlights the increasing importance of green bonds in financing clean energy infrastructure, and the role played by capital markets within this.  

Investors in the Green Bond include Emerging Africa Investment Fund, ABSA Bank, Atlas Mara Bank Zambia, and the African Local Currency Bond (ALCB) Fund.

OTHER NEWS

IMF releases $187 million Zambia payout, says restructuring proposal being revised (Reuters, 20.12.23)

Albert Muchanga: New transport corridors will be ‘catalyst for AfCFTA success’ (The Africa Report, 04.01.24)

Zambia aims to resolve debt revamp standoff within three months (Bloomberg, 04.01.24)

Zambia: $10m company proves small farms can be big business (How We Made It In Africa, 09.01.24)

WEF Davos 2024: How Africa can achieve commodity-led industrialisation (African Business, 17.01.24)

India to send industry delegation for copper mining opportunities in Zambia (Indian Express, 22.01.24)

How could artificial intelligence help pregnant women in Zambia? (Forbes, 28.01.24)

UPCOMING EVENTS

Cape Town, SA:

Investing in African Mining Indaba 05-08.02.24      

121 Mining Investment 05-06.02.14

Invest Africa Mining Series 05-07.02.24

Nairobi, Kenya:

Africa Tech Summit 14-15.02.24

Sankalp Africa Summit 2024 28-29.02.24

Other:             

SAVCA Private Equity Conference 28-29.02.24, Stellenbosch, South Africa

 Pension Funds & Alternative Investments Africa Conference 28-29.02.24, Mauritius

Zambia Investor Briefing: December 2023

OVERVIEW

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

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

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

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

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

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

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

A CLOSER LOOK

Hichilema Attends COP28 in the UAE

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

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

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

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

 OTHER NEWS

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

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

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

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

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

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

Zambia Investor Briefing: November 2023

OVERVIEW

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

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

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

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

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

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

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

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

Zambia Selects UAE’s IRH as New Partner for Mopani

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

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

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

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

Hichilema Visits Italy to Strengthen Bilateral Ties

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

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

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

OTHER NEWS

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

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

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

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

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

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

UPCOMING EVENTS

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

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

Zambia Investor Briefing: October 2023

OVERVIEW

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

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

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

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

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

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

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

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

Zambia Reaches Deal for Debt Relief

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

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

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

UAE’s IHC Expresses Interest in Mopani Copper Mines

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

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

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

OTHER NEWS

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

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

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

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

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

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

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

UPCOMING EVENTS

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

Africa Fintech Summit - 02-03.11.23, Lusaka, Zambia

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

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

Zambia Investor Briefing: September 2023

OVERVIEW

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

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

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

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

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

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

Vedanta to Resume Production at KCM

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

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

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

Chinese Firms to Invest $1.4 Billion in Zambia

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

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

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

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

OTHER NEWS

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

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

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

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

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

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

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

UPCOMING EVENTS

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

FT Africa Summit - 12.10.23, London, UK

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

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

Zambia Investor Briefing: August 2023

OVERVIEW

•    President Hichilema visited Israel at the start of this month, the third such trip by a Zambian head of state in the past decade. The President met with both Israeli Prime Minister Benjamin Netanyahu and President Herzog to discuss trade, peace and security between the two countries. Herzog labelled relations “outstanding”. Hichilema attended the Israel-Zambia Business Forum in Jerusalem, which focused on opportunities in Zambia’s agricultural sector.

•    UK Foreign Secretary James Cleverly was welcomed to State House, marking the first such visit in more than 30 years. The Foreign Secretary announced the expansion of the UK’s clean energy partnership with Zambia, which includes up to GBP 2.5 billion worth of British investment in Zambia’s mining, minerals, and renewable energy sectors, in addition to GBP 500 million in British government-backed investments.

•    The World Bank’s Country Director for Malawi, Tanzania, Zambia and Zimbabwe met with President Hichilema as part of a broader visit to the country. Nathan Belete held meetings with the ministers for tourism, trade, finance, and infrastructure, in addition to his time with the President.

•    Mines and Mineral Development Minister Paul Kabuswe signed a joint declaration with Japan’s Economy, Trade and Industry Minister Yasutoshi Nishimura in order to strengthen cooperation in the mining sector. The two countries have agreed to expand cooperation in the exploration of minerals via satellite, particularly copper, cobalt and nickel, which are essential for electric vehicles and other products.

•    The outgoing European Union Ambassador to Zambia, Dr Jacek Jankowski, has told President Hichilema at his final official press conference at State House that his efforts are “really highly appreciated by the European Union”, and described Zambia as an “amazing country”. Hichilema thanked the EU for the part it has played in strengthening Zambia’s democratic practices. Dr Jankowski leaves his post after serving the EU in Zambia for four years.

•    President Hichilema attended the BRICS Summit in Johannesburg last week in his capacity as Chairperson of the Common Market for Eastern and Southern Africa (COMESA). There, he participated in the Round Table Discussion themed “Promoting African Integration and Jointly Building a High-Level Africa-China Community with a Shared Future”. In a statement, Hichilema called on the Summit “to serve as a stepping stone to enhance coordination between BRICS and Africa, enabling an effective response to our global social, political, economic, and environmental challenges”.

•    Talks are ongoing concerning the new core investor for Mopani Copper Mines. Johannesburg-based precious metals producer Sibanye Stillwater has recently announced its plans to bring in a Chinese investor to form a partnership if it wins its bid. The unnamed Chinese company already has a presence in copper mining. Also on the shortlist for the mines is China’s Zijin Mining Group.

President Hakainde Hichilema’s Visit to Israel

President Hichilema visited Israel at the start of this month on a three-day trip, the third such trip by a Zambian head of state in the past decade. The President met with both Israeli Prime Minister Benjamin Netanyahu and President Herzog to discuss trade, peace and security between the two countries. Herzog labelled relations between the two countries “outstanding”.

During the trip, Zambia’s Foreign Minister Stanley Kakubo met with Israel’s Foreign Minister Eli Cohen to discuss Israel’s relations with Africa in general and Zambia in particular. The two signed a framework agreement to strengthen cooperation in medicine, communication, agriculture, and culture.

Hichilema attended the Israel-Zambia Business Forum at Israel’s Ministry of Foreign Affairs, Jerusalem. With a focus on opportunities in the agricultural sector, the delegates explored issues such as water harvesting and irrigation in Zambia.

During his trip, Hichilema also finalised negotiations regarding a $100 million investment in a renewable energy power station in Chibombo, Zambia by Israel’s Gigawatt Global and Gigawatt Wind. The companies now have an Investment License with the Zambia Development Agency (ZDA) and an Implementation Agreement with the Energy Ministry. Gigawatt Global president Yosef Abramowitz described it as “the most significant private Israeli investment in the Zambian economy”.

Britain Agrees Deals with Zambia on Clean Energy and Critical Minerals

Britain’s Foreign Minister James Cleverly conducted a four-day visit to Zambia at the beginning of this month in order to deepen ties between the two countries. It was the first such visit in more than 30 years.

The UK’s Foreign Secretary announced the expansion of its clean energy partnership with Zambia (including a UK-Zambia Green Growth Compact), which includes up to GBP 2.5 billion worth of British investment in Zambia’s mining, minerals, and renewable energy sectors, in addition to GBP 500 million in British government-backed investments.

During his visit to the country, Cleverly toured the Mimbula Copper Mine, where British company Moxico Resources will invest an additional USD $210 million of private sector funding to expand production at the site. He also signed a Memorandum of Understanding (MoU) on critical minerals, laying the foundation for further UK support for the responsible mining of copper, cobalt, and other minerals fundamental to the clean energy transition.

Cleverly said of the agreement, “The UK-Zambia Green Growth Compact and our landmark agreement on critical minerals will support investment between UK and Zambian business, creating jobs in both countries”.

OTHER NEWS

Indebted nations can learn from Zambia’s breakthrough debt deal 01.08.23, The Africa Report

The developing country with a positive trajectory 02.08.23, World Finance

EG Capital welcomes Prosper Africa Catalytic Investment Facility and USAID as new partners is EG-Economic Empowerment Fund 10.08.23, African Business

Zambia’s plan to dig its way out of debt with a copper revival 13.08.23, Financial Times

What a US-DRC-Zambia electric vehicle batteries deal reveals about the new US approach towards Africa 21.08.23, Carnegie Endowment for International Peace

Billionaire Agarwal pledges to pay Zambia creditors before retaking mine 23.08.23, Bloomberg

Sibanye brings in Chinese partner for Mopani Copper Mines bid 29.08.23, Reuters 

UPCOMING EVENTS

 07.09.23 - Zambia ESG and Sustainable Finance Summit 2023

Livingstone, Zambia

28.09.23 - AfBC: UK-Africa Trade and Investment Summit 2023

London, UK

Zambia Investor Briefing: July 2023

OVERVIEW

• Zambia hosted it’s 57th International Trade Fair (ZITF) from 28 June to 4 July under the theme ‘Stimulating Economic Development Through Partnership, Trade and Investment’. The fair was attended by King Mswati III of Eswatini as its guest of honour, who called for closer trade collaboration between the two countries.

• President Haikande Hichilema visited Ghana, where he signed nine Memoranda of Understanding (MoU) with President Akuffo-Ado on behalf of their respective countries. These MoU cover various industries, including trade and investments, tourism, arts and culture, science and technology, and skill development.

• Zambia has signed two Memoranda of Understanding (MoU) with the United Arab Emirates. The first was signed by Minister of Mines, Paul Kabuswe, and concerns mineral resource exploration between the two countries. The second, regarding increasing support for Small and Medium Enterprises (SMEs), is worth US$15 million. The signing ceremony was presided over by President Hichilema and the UAE’s Minister of State for Foreign Affairs Sheik Shakboot Al Nahyan.

• President of the African Development Bank (AfDB) Group, Dr Akinwumi Adesina, met with President Hichilema as part of his two-day official visit to Zambia. They discussed further support for the country in the aftermath of its successful $6.3 billion debt restructuring for bilateral creditors. The Bank has committed to several measures to assist Zambia in its economic recovery. These include an initial budget support of up to $150 million. Adesina told Hichilema, “Zambia is back. Zambia is bankable; and you, Mr President, you are bankable. You can count on the African Development Bank’s support all the way”.

• Early July saw the announcement that a group of investors led by commodity trader Trafigura Group plans to invest up to $555 million in a railway project designed to link the Angolan port of Lobito to the Democratic Republic of Congo. The consortium is known as Lobito Atlantic Railways. The US has pledged to help finance the project according to its International Development Finance Corporation CEO Scott Nathan. Using the Caminho-de-Ferro de Benguela railway, the route will provide faster trade to Europe and the Americas from the DRC and Zambia.

• On 12 July, President Hichilema participated in a virtual meeting for the Committee of African Heads of State and Government on Climate Change (CAHOSCO) on the Africa Climate Summit (ACS), cohosted by President William Ruto of Kenya and Mousa Faki Mahamat, Chairperson of the African Union Commission. Hichilema stressed Zambia’s commitment to the green investment agenda, describing private sector investment as a way of “implementing the continent’s transition towards a low-carbon development pathway”.

African Development Bank (AfDB) Group Visit to Zambia

President of the African Development Bank (AfDB) Group, Dr Akinwumi Adesina, met with President Hakainde Hichilema as part of his two-day official visit to Zambia. They discussed further support for the country in the aftermath of its successful $6.3 billion debt restructuring for bilateral creditors.

Adesina congratulated the Zambian government for reaching this agreement. He told Hichilema, “You have created a sense of hope in the country and confidence in the economy, paving the way for investments to return and accelerate the drive for prosperity for the country”.

The Bank has committed to several measures to assist Zambia in its economic recovery. These include an initial budget support of up to $150 million, and investment projects in key areas of the economy, including energy, agriculture, and transport. Also offered in assistance to Zambia are the services of the Africa Legal Support Facility (ALSF), which is able to offer aid in renegotiating the terms and conditions of external debt with private creditors.

Adesina told Hichilema, “Zambia is back. Zambia is bankable; and you, Mr President, you are bankable. You can count on the African Development Bank’s support all the way”.

Hichilema’s State Visit to Ghana

President Hichilema visited Ghana on a state visit earlier this month. There, he signed nine Memoranda of Understanding (MoU) with President Akuffo-Ado on behalf of their respective countries.

These MoU cover various industries, including trade and investments, tourism, arts and culture, science and technology, and skill development. Significant among them was the MoU signed between the Zambia Chambers of Commerce and Industry (ZACCI) and the Ghana National Chamber of Commerce and Industry (GNCCI) to strengthen trade and investment cooperation.

Other MoU were concerned with matters such as the preventing the trafficking, supply, and consumption of illegal drugs, and one was dedicated to fostering collaboration in the exploration and exploitation of hydrocarbon resources.

Also on Hichilema’s itinerary was a State Banquet hosted by Ghana’s President and a visit to Valley View University of Ghana, where the Zambian President was awarded an honorary degree of Doctor of Human Letters.

Digging Deeper

Production started this month at First Quantum Minerals’ (FQM) Enterprise mine in North- Western Province – the largest nickel mine in Africa. It follows an investment of $100 million by FQM last year to bring the project online. The mine is expected to produce 32,000 tons of nickel over the next two years, making Zambia the largest producer of nickel for electric vehicles on the continent.

This comes amidst a busy month for mining in Zambia, with the government due to announce a new core investor for Mopani Copper Mines imminently. China’s Zijin Mining and Norinco Group, as well as South Africa’s Sibanye Stillwater are all in the running. Getting Mopani running at full capacity is a cornerstone of President Hichilema’s ambition to increase Zambia’s copper production to 3 million tonnes by the end of 2032.

Elsewhere, Barrick President and Chief Executive Mark Bristow has said the true potential of the company’s Lumwana copper mine is only now being revealed. Additional expansion opportunities, identified through an updated geological survey, are currently being assessed anddrilling at the Kababisa project highlights potential flexibility through higher grades. Lumwana is currently on track to achieve 2023 production guidance as the operation ramps up, the Malundwe pit is reopened, and the facility transitions to owner miner operations.

Zambia Investor Briefing: May 2023

OVERVIEW

• President Hakainde Hichilema travelled to the UK to attend the coronation of King Charles III and meet with delegates and investors. There, the president attended the Zambia Investor Forum and the Africa Debate in London, both hosted by Invest Africa. President Hichilema gave the keynote address at the Investor Forum, where he announced that Zambia is ready for business. There, Zambian Ministers met with key players in the agriculture, tourism, mining, infrastructure and energy sectors, negotiating investment opportunities. The president also gave a keynote speech at the Africa Debate alongside Andrew Mitchell, UK Minister of State for Development and Africa.

• Over the course of the week he spent in England, Scotland, and France, Hichilema took part in 20 meetings with heads of state, delegates, and investors, where he discussed the country’s investment potential. These included meetings with Emmanuel Macron, President of France; Scotland’s First Minister, Humza Yousef; Han Duck-Soo, Prime Minister of South Korea; and James Cleverly, UK Foreign Secretary.

• Whilst in attendance at the Africa Debate, Albert Halwampa, Director General of the ZDA, signed a Memorandum of Understanding (MoU) with Invest Africa’s Chairman (and former Africa Minister) Mark Simmonds. The purpose of the MoU is to promote foreign direct investment from the UK into Zambia. Other meetings at the sidelines of the Africa Debate and the Zambia Investment Forum yielded deals with a total of 162 companies.

• President Hichilema met with officials from British International Investment (BII), including its CEO Nick O’Donohoe. The development finance institution has invested over $100 million in the Zambian economy, its main areas of interest being the country’s agricultural, energy, and financial sectors. According to Hichilema, the meeting was a means of demonstrating his government’s commitment to “providing an enabling environment for private sector to thrive”.

• US President Joe Biden announced his country’s support for the development of the Lobito Rail Corridor, which would connect Zambia and the DRC to global markets through Angola. The US International Development Finance Corporation is currently performing due diligence for a potential financing package of $250 million. Biden stressed the effects of this investment on strengthening Zambia's trade, employment, supply chains, and food security. He made the announcement at the Partnership for Global Infrastructure and Investment (PGII) Meeting, held in Hiroshima, Japan.

• Wasoko, a Kenyan retail-tech startup, has expanded into Zambia with a US$1 million investment for its first year of operations. The company leverages innovative technology to provide same-day delivery of essential goods and financing to informal retail stores across Africa. In March 2022 it banked a US$125 million Series B round. Zambia is its first expansion into Southern Africa, with its central hub based in Lusaka. Wasoko’s operations in the city will enable small retailers to access an affordable range of products for same-day delivery and working capital financing solely, accessed purely through a mobile app.

• A Zambian delegation, led by Finance Minister Dr Situmbeko Musokotwane, attended the Annual Meetings of the African Development Bank (AfDB) in Sharm El Sheikh, Egypt. Among the bilateral talks held by the delegation were meetings with Dr Akinwumi Adesina, President of the AfDB, and Kevin Kariuki, AfDB’s VP for Energy, Climate, and Green Growth.

Zambia Investment Forum and The Africa Debate, London

President Hichilema travelled to the UK to attend the coronation of King Charles III and meet with delegates and investors. There, the president attended the Zambia Investor Forum and the Africa Debate in London, both hosted by Invest Africa.

Hichilema gave the keynote address at the Zambia Investment Forum, where he announced that Zambia is ready for business. He reiterated that his government was “committed to reforms – after all, we were elected on a ticket of change, to improve the lives and livelihoods of our people [...] through the economy”.

At the forum, Zambian Ministers – including Finance Minister, Situmbeko Musokotwane; Commerce, Trade, and Industry Minister, Chipoka Mulenga; and Foreign Affairs Minister, Stanley Kakubo - met with key players in the agriculture, tourism, mining, infrastructure and energy sectors to negotiate investment opportunities.

The president also gave a keynote speech at the Africa Debate alongside Andrew Mitchell, UK Minister of State for Development and Africa.

Hichilema’s Meetings in England, Scotland, and France

Over the course of the week he spent in England, Scotland, and France, Hichilema took part in 20 meetings with heads of state, delegates and investors, where he discussed the country’s investment potential.

Hichilema met with France’s president, Emmanuel Macron. The primary focus of the bilateral was Zambia’s debt restructuring programme. During Hichilema’s meeting with Scotland’s First Minister, Humza Yousaf, the latter confirmed Scotland’s investment of £1 million to a vaccine research laboratory in Zambia.

During his trip, president also met with Han Duck-Soo, Prime Minister of South Korea and James Cleverly, UK Foreign Secretary, and spoke at the UK Parliament’s Critical Minerals Association.

Currency
1 USD = 19.51 ZMW 30-day average = 18.510 Volatility (last 30 days) = 0.54%

OTHER NEWS

IMF chief ‘won’t let Zambia down’ as creditors hold up payment’, 05.05.23, Bloomberg

Zambia’s debt crisis is not easy to solve, 15.05.23, Mail & Guardian

Zambia raises key rate to three-year high on inflation pressures, 17.05.34, Bloomberg

China says it will work for better solution of Zambia’s debt issues, 19.05.23, Reuters

Muscle Maker acquires Zambia farmland for $8.5 million, 22.05.23, Yahoo Finance

Studious invests stand to benefit from opportunities in Africa, 25.05.23, Financial Times

Zambia urges official creditors to advance debt restructuring at next meeting, 30.05.23, Reuters

UPCOMING EVENTS

05-06.06.23 Africa CEO Summit Annual Forum ,Abidjan, Côte d’Ivoire

CONTACT US

If you would like to find out more or receive tailored briefings on specific sectors get in touch via info@zambiaisback.com. To stay up to date follow us on social media:

Facebook: @zambiaisback Twitter: @ZambiaIsBack Instagram: zambia_isback

Zambia Investor Briefing: April 2023

OVERVIEW

• Mozambique’s President Nyusi played host to his Zambian counterpart Hakainde Hichilema for an official state visit. The aim of the trip was to further cement relations “through increased trade and investment flows” between the two countries, and included a visit to the Port of Beira. A Memorandum of Understanding (MoU) was signed between the neighbours aimed at bolstering collaboration in the area of press standards and freedoms. Issues of peace and security were also central to discussions.

• Hichilema travelled to Victoria Falls, Zimbabwe, to take part in the ‘Transform Africa Summit’. The summit brought regional and global leaders together with international organisations from more than 100 countries under the theme ‘Connect, Innovate, Transform’, to collaborate on new ways of shaping, accelerating and sustaining Africa’s on-going digital revolution. Others in attendance included Rwanda’s Paul Kagame, Togo’s Faure Gnassingbé, Malawi’s Lazarus Chakwera and Secretary General of the AfCFTA Wamkele Mene.

• A recently published report from Chatham House praised the New Dawn government’s “positive neutrality”, a delicate balancing act which, the report reads, has allowed it to secure investment “from a diverse mix of partners, including Brazil, India, Japan, Saudi Arabia, South Africa, Türkiye and the United Arab Emirates”. It also points to the fact that “Hichilema has resuscitated relations with Western partners, especially the US and UK, and maintained Zambia’s important relationships with China and the African continent”.

• Mfikeyi Makayi was appointed CEO of KoBold Metals Zambia. The first female head of a major mining company in Zambia, she will oversee the development of the Mingomba mine in the Copperbelt. Formerly of First Quantum Minerals, Makayi underscored the sector’s importance to Zambia, saying it “is something that will drive our economy into the future”.

• A groundbreaking ceremony took place for the construction of a new fertiliser and ammonia plant at the United Capital Fertiliser Zambia Company in Lusaka’s Chilanga district. The USD 600 million project will help bolster the country’s food security, and has come about, according to Hichilema, owing to the “enabling policy and business environment we wanted”.

• President Hichilema hosted the Zambian-American business community at the Presidential Luncheon in Lusaka. The event was held under the banner of ‘Zambia’s Economic Revitalisation and Investment Opportunities’, and saw local banks and businesses looking for new investment opportunities in the country.

• A statement released by President Hichilema confirmed that the Zambian government were working with “global tech companies” to secure digital literacy training for 10,000 teachers. “Education is the best investment we can make”, he reiterated.   

Mozambique State Visit

President Hichilema undertook a three-day official state visit to neighbouring Mozambique, during which a number of important agreements were reached. One such commitment saw the Mozambican government announce plans to resume its supply of electricity to Zambia which, President Nyusi said, was now possible following upgrades to local infrastructure. Zambian Energy Minister Peter Kapala also spoke about plans for new gas and petroleum pipelines running from Mozambique to Zambia.

There were further calls from the Zambian delegation for more cross-border business, particularly in the mining, agriculture and tourism sectors, something President Hichilema was especially keen to see.

On the final day of the visit, the two heads-of-state undertook a visit to the Port of Beira, located in Mozambique’s commercial capital. Whilst there, they attended the Mozambique-Zambia Business Forum, which hosted an event titled “Accelerating Trade and Investment Between Mozambique and Zambia”. The forum was attended by 250 exhibitors representing various sectors from across the business community.

Transform Africa IT Summit

Six presidents were in attendance at the three-day summit, which took place in Victoria Falls, Zimbabwe, and saw the launch of the African Development and Smart Africa Alliance. The USD 1.5 million agreement is designed to enhance digital trade and e-commerce ecosystems across Africa.

The alliance will streamline e-payment policies across ten countries - Côte d’Ivoire, Benin, Ghana, Uganda, South Sudan, Zimbabwe, Republic of Congo, DR Congo, and Sao Tomé and Principe.

Hichilema gave an address at the summit, in which he implored nations to embrace new technologies “with the aim of increasing productivity and creating more jobs, particularly for our young people [on] the continent”.

“Harmonising our legislation and technological platforms in Africa is also crucial to facilitate market sharing and the movement of people and goods, while maintaining security”, he wrote in a statement. “Harmonised digital platforms will also make it easier for joint public-private ventures among our citizens to do business”.

Currency

1 USD = 17.86 ZMW     30 day average = 19.171              Volatility (last 30 days) = 1.3%

OTHER NEWS

Zambia reaps rewards of positive neutrality and economic diplomacy while others flounder, 02.04.23, Daily Maverick

China's loans to Africa worry World Bank President David Malpass, 02.04.23, BBC New

Zambia mining sector gets first female chief executive, 06.04.23, BBC News

Yellen to push for ‘speedy’ action on Zambia, Ghana debt relief, 11.04.23, Al Jazeera

Zambia sees scope for $12.8 billion debt-revamp deal next week, 12.04.23, Bloomberg

Zambia: UN experts concerned over delay in the country’s debt restructuring, 17.04.23, United Nations

Moxico provincial government to boost cooperation with Zambia, Angop, 24.04.23

Zambia has sent debt restructuring proposal to official creditors, Reuters, 24.04.23

UPCOMING EVENTS

10.05.23

Zambia Investor Forum

London, UK

11.05.23

The Africa Debate: Catalysing the Continent’s Trade Potential

London,UK

14.05.23 - 16.05.23

Africa Trade and Investment Global Summit

Dubai, UAE

CONTACT US

If you would like to find out more or receive tailored briefings on specific sectors get in touch via info@zambiaisback.com. To stay up to date follow us on social media:

Facebook: @zambiaisback

Twitter: @ZambiaIsBack

Instagram: zambia_isback

Zambia Investor Briefing: March 2023

OVERVIEW

• Invest Africa, a leading business and investment platform, led a delegation to Zambia formed of 9 companies across a multitude of sectors, from energy and mining to infrastructure and logistics. The team held a roundtable discussion with President Hichilema in State House, Lusaka, to better explore ways to invest in the Zambian economy. The mission also held meetings with Bank of Zambia Governor Denny Kalyalya and Albert Halwampa, Director of the Zambia Development Agency (ZDA).

• A consortium of investors from the energy and mining sectors presented to President Hichilema on their intention to develop a new wind and solar project. UK-based Chariot Transitional Energy, in partnership with French giant Total, has agreed to fund and construct a USD 500 million renewable energy project to supply power to Canadian mining company First Quantum Minerals (FQM), which support FQM’s Zambian operations.

• President Hichilema travelled to Qatar this month to participate in the LDC5 Conference in Doha. Over a period of five days, the conference convened world leaders, representatives from the private sector, civil society, parliamentarians and the youth to advance new ideas, raise pledges of support and accelerate sustainable development in areas where international assistance is needed most.

• Lusaka played host to the inaugural EU-Zambia Pharmaceutical Forum, under the banner ‘Strengthening Healthcare through Local Pharmaceutical Manufacturing’. The goal of the forum was to encourage and promote the manufacture of pharmaceutical products in Zambia. President Hichilema, who addressed the forum, said local pharmaceutical companies must be willing to “collaborate and partner with well-established foreign pharmaceutical companies” to build greater capacity and experience.

• Direct flights between Turkey and Zambia have resumed following a two-year hiatus owing to the Covid-19 pandemic. The route will be operated by Turkish Airlines, connecting Istanbul with Lusaka. “This is a positive development for both Turkey and Zambia as the direct flights between Istanbul and Lusaka will facilitate business trips, travel and tourism”, Turkey’s ambassador to Zambia, Istem Cırcıroğlu told Anadolu Agency.

• South African financial services group, ABSA, opened the ABSA Bank House in Lusaka, Zambia. President Hichilema led proceedings at the official unveiling of the new building. The president spoke of the importance of the private sector in bringing about greater development.

Investor and Trade Mission

Invest Africa led a three-day mission to the Zambian capital, facilitating dialogue between foreign investors and government. Global law form DLA Piper, German technology giant Siemens, South African financial services group ABSA, and logistics firm DHL, were among those that joined the mission.

The trip, which connected international businesses looking for investment opportunities, formed part of the New Dawn government’s efforts to attract multinationals to invest.

Projects showcased included the Mulembo-Lelya Hydroelectric Project, which is looking to raise USD 285 million and will generate 118 MW of electricity once completed, and the Shangombo Sugar Project, which requires USD 522 million through an FDI majority stake. The project is located at a greenfield site in Western Province.

Mining and Energy Developments

A consortium of investors from the mining and energy sectors presented a renewable energy project to President Hichilema at State House in Lusaka. Mphepo Power, Total Eren, Chariot and First Quantum spoke of their intended projects to develop 770 MW of wind and solar that would greatly contribute to Zambia’s grid resilience.

The Kafue Gorge Lower Hydropower Station, located in Southern Province, was commissioned by President Hichilema, adding a total of 750 MW to Zambia’s national grid. The dam, which was built in collaboration with ZESCO and Chinese company Sinohydro Corporation Ltd, will help not only Zambia’s energy resilience, but also the country’s wider economy, according to the president.

President Hichilema was present to open the Mimbula Mine in Chingola. During the ceremony,  he told the press that funds had been secured to reopen the copper mine at Mopani, operated by Konkola Copper Mines (KCM). In a written statement, the president said his government would “continue providing an enabling environment for business to thrive because our people need jobs and business opportunities”.

5th UN Conference on Least Developed Countries

President Hichilema held a number of meetings on the sidelines of the LDC Conference in Doha, Qatar, including with Chrysoula Zacharopoulou, the French Minister of State for Development, Francophonie and International Partnership. Discussions centred on France’s role as co-chair of the G20 Creditor Committee for Zambia. Endorsed by the Paris Club, the committee is tasked with seeking resolutions to Zambia’s debt issue.

The president further met with Qatar’s Deputy Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed bin Abdulrahman Al-Thani. “[W]e encouraged Qatari investment in Zambia as we push for more jobs through a thriving private sector”, Hichilema remarked. Zambia is soon to open an embassy in the Qatari capital.

The UK’s Minister for Development and Africa, Andrew Mitchell, pledged to support Zambia’s debt restructuring under the Common Framework, while emphasising the UK’s continued commitment to invest in Zambia through British International Investment (BII), the UK government’s development finance institution.

Democracy Summit

Zambia co-hosted the second iteration of the Summit for Democracy, a two-day, virtual event, alongside international partners the US, South Korea, Costa Rica and the Netherlands. The theme of the event, organised by the US, was ‘Free, Fair and Transparent Elections, as the Foundation of Democratic Government’.

During his keynote address, President Hichilema underscored the need for strong leadership and institutions of governance around the world to cement democracy. “We should ask ourselves: what is it that we need? Strong leaders or strong institutions? Or both?" he said, adding that electoral conflicts were a deterrent to the democratic gains made by states post-colonial rule.

Currency:

1 USD = 21.23 ZMW     30 day average = 21.326              Volatility (last 30 days) = 0.48%

OTHER NEWS

Skilled miners critical to meeting production targets, 01.03.23, Times of Zambia

Zambia’s developing international relations, 07.03.23, Chatham House

Statement by Press Secretary Kirsten Allen on Vice President Harris’s Travel to Ghana, Tanzania, and Zambia, 13.03.21, The White House

Malawi turns to Zambia Defence Force for cyclone rescue mission, 16.03.23, Nasa Times

Zambia’s President: ‘You cannot eat democracy’, 28.03.23, The Washington Post

US Vice-President Harris’ visit to Zambia raises excitement, 29.03.23, Voice of America

Zambia Airways resumes flights to Zimbabwe after 27 years, 29.03.23, Simple Flying

UPCOMING EVENTS

04.04.23

Select Zambia Investment Forum 2023

Lusaka, Zambia

26.04.23 - 27.04.23

Zambia Institutional Investors Forum

Lusaka, Zambia

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