Zambia Investor Briefing - May 2026

In this month's briefing: Zambia is headed for a record 4.94 million tonne maize harvest this year. Inflation fell to an eight-year low of 6.6% and the Bank of Zambia cut its policy rate to 13.25%. ZCCM-IH is partnering with China's Wonderful Group to revive the dormant Ndola Lime plant, launching a separate gold joint venture under Kyalo Goldfields, and is intending to lift its Mingomba copper holding to 25%. Konkola reopened its Chingola mine after 18 years, First Quantum reported a $3.46 billion contribution to the economy, and emerald production surged 241%. President Hichilema commissioned infrastructure projects in Western province and championed investment at the Africa Forward Summit in Nairobi, while Israel restructured $460 million of Zambian debt and the UK, EU and Germany all backed the country as an investment destination.

🔢  MAY IN NUMBERS

→  4.9m tonnes - Projected 2025/26 maize harvest, a record

→  $1.36bn -  Zambia's 2053 bond tender offer

→  6.6% - May inflation, down from 6.8% in April and from 23.2% in May 2021

→  13.25% - Bank of Zambia policy rate after third consecutive cut

→  $3.46bn - First Quantum Minerals 2025 contribution to Zambia's economy

→  $2.3bn - KoBold Metals Mingomba copper mine construction figure

→  $1.69bn - ZDA Q1 2026 actualised investments

→  $500m - ZDA-ZPEC Ndola oil refinery agreement

→  $460m - Israel debt restructuring deal

→  $175m - Texxon Energy Sinazongwe coal plant

→  $125.8m - CEC Itimpi II solar plant commissioned

→  $30m - ZCCM-IH and Wonderful Group joint venture to revive Ndola Lime 

→  $97m - German development cooperation pledge

→  $13.7m - Government digital infrastructure upgrade

→  241.41% - Emerald production surge year-on-year

President Hakainde Hichilema met Kenyan President William Ruto on the sidelines of the inaugural Africa Forward Summit in Nairobi.

⛏️ MINING EXPANSION

Konkola Reopens Chingola Mine After 18 Years

Konkola Copper Mines resumed mining at its Chingola “B” Mine, 18 years after operations ceased. The mine is projected to produce more than 200,000 tonnes of ore per month, Chief Executive Deshnee Naidoo said. KCM is 79.4% owned by Vedanta Resources and 20.6% by ZCCM-IH.

First Quantum Records $3.46bn Economic Contribution

First Quantum Minerals reported a $4.1 billion direct contribution across its operating jurisdictions in 2025, with the bulk landing in Zambia. Local operations supported more than 23,500 employees and contractors, with procurement of around $2.1 billion. The December commissioning of the $1.25 billion Kansanshi S3 Expansion will nearly double the mine's processing capacity. 

ZCCM-IH Targets Higher Mining Stakes

ZCCM Investments Holdings signalled its intent to raise minority stakes in mining assets on commercial terms and not through forced sales, Chief Executive Kakenenwa Muyangwa said. The firm lifted its Lubambe stake to 30% last year and is planning on raising its Mingomba holding to 25% from 20%. It also aims to extend the royalty-to-revenue model pioneered at Kansanshi, which has delivered $110 million since 2022.

ZCCM-IH Forms Gold Joint Venture

ZCCM-IH announced a gold joint venture with Mining Mineral Resources, taking a 51% stake in newly incorporated Kyalo Goldfields. The venture will operate in the Kikonge area of North-Western Province. It aims to formalise artisanal mining and build local processing capacity to retain value within Zambia. 

Emerald Surge and Copper Strength Lift Sector

Mines Minister Paul Kabuswe pointed to robust first-quarter performance across copper and gemstones. Large-scale mines lifted copper output by 1.8%, with Lumwana up 19.2% and Konkola up 22.02%, while emerald production soared 241.41% year-on-year. The gains boosted foreign exchange earnings and helped lift the kwacha to its strongest level in nearly two years.

SRK Opens Kitwe Office

SRK Consulting set out a favourable outlook for the sector at ZIMEC 2026, citing strong government support, a transparent mining cadastre and central location on planned export corridors. The firm, which has opened a practice in Kitwe, noted the diversification push into cobalt, lithium, nickel and rare earths. It also flagged the greater geotechnical and environmental risks that come with deeper extraction. 

🚜 AGRICULTURE

Zambia Heads for Record Maize Harvest

Zambia is expected to record its highest maize harvest ever, at about 4.94 million tonnes in the 2025/26 season, continuing the rebound since the 2023/24 drought and lifting output by roughly a quarter on the previous record. Targeted interventions by Government and cooperating partners have driven the turnaround, alongside favourable weather. Around 94% of production comes from small-scale farmers and family farms.

ZCCM-IH Revives Century-Old Ndola Lime Plant

ZCCM-IH has entered a $30 million joint venture with Wonderful Group to restore industrial-scale lime and cement production in Ndola, taking a 45% interest with Wonderful Group holding the balance. The site has produced lime since 1931, supplying critical inputs to Zambia's copper, construction and agricultural sectors, until its owner fell into insolvency in 2018. The revival will run in three phases, starting with a 600-tonnes-per-day lime plant. Chief Executive Kakenenwa Muyangwa called it a new chapter for the 95-year-old Copperbelt institution and a clear example of active portfolio management in practice.

⚡️ ENERGY & INFRASTRUCTURE

CEC Commissions Zambia’s Largest Solar Plant

The CEC Group commissioned the 136 MW Itimpi II solar plant in Kitwe, lifting its total solar capacity to 230 MW. Built in 14 months for $125.8 million and funded by CEC's Green Bond, it is now the country's largest operational solar facility. The project created 2,568 jobs, over 95% held by Zambians, and CEC aims to exceed 500 MW of solar by 2027. 

ZDA and ZPEC Sign $500m Ndola Refinery Agreement

The Zambia Development Agency and ZPEC signed an Investment Promotion and Protection Agreement for a $500 million oil refinery in Ndola, expected to create more than 3,500 jobs. ZPEC will produce Jet A1, petrol, diesel, kerosene and LPG for domestic and regional markets. Director General Albert Halwampa expressed confidence the project would be fully operational by next year. 

Texxon Energy To Build $175m coal plant

Texxon Energy Limited is expected to construct a 180-megawatt coal-fired power plant in Sinazongwe District, Southern Province. Valued at $175 million and due for completion within three years, the project is expected to create 1,200 jobs.

Government Approves K255 Digital Upgrade

Technology and Science Minister Felix Mutati announced K255 million to upgrade digital infrastructure and improve quality of service, particularly in rural areas. The country's fibre-optic network has expanded from 15,000 kilometres in 2021 to more than 45,000 kilometres, with connectivity coverage reaching 94%. AI and robotics were identified as strategic priority areas for mining and education.

Smart Zambia and Huawei Sign AI Data Centre Deal

Smart Zambia and Huawei signed a Memorandum of Understanding supporting co-investment in a National Artificial Intelligence Data Centre. The deal will train 5,000 Zambian ICT professionals by 2028 and speed up AI-powered public services across all 25 ministries. Vice President Mutale Nalumango said Zambia was determined to take a leading role in the global digital revolution. 

Western Province Infrastructure Drive Gathers Pace

President Hakainde Hichilema commissioned the Mongu-Limulunga Road, a 28.9-kilometre urban stretch he described as a symbol of tangible development. Infrastructure Minister Charles Milupi said Government saved millions after renegotiating an inflated $31 million contract, channelling the savings into road extensions, bridges and a Kambule-Mongu dual carriageway. The President also commissioned the new Silanda and Luanginga bridges in Kalabo District, improving access to Liuwa National Park, with works on the Kalabo-Sikongo Border Road to follow.

🌍 TRADE & INVESTMENT POLICY

Inflation Cools to Eight-Year Low

Zambia's annual inflation slowed to a more than eight-year low in May, with consumer prices rising 6.6% from 6.8% in April, supported by a stronger kwacha and a bumper maize harvest. The kwacha has appreciated around 20% against the dollar this year, making it Bloomberg's best-performing currency, while foreign exchange reserves rose 13% in the first quarter to $6.2 billion, equivalent to 5.2 months of import cover. Food inflation eased to 6.9% from 7.3%, with fuel tax suspensions and zero-rated VAT also blunting the impact of higher global energy prices.

Bank of Zambia Cuts Rate to 13.25%

The Bank of Zambia cut its policy rate by 25 basis points to 13.25%, a third consecutive reduction. The central bank pointed to the favourable maize harvest, relative stability in the kwacha, and inflation holding within its 6-8% target band. Governor Denny Kalyalya said upside risks linked to the war against Iran warranted a cautious adjustment, with inflation now projected to average 6.8% in 2026 and 6.1% in 2027.

Kwacha Firms on Mining Inflows

Zambia's kwacha is expected to strengthen further against the dollar, supported by steady inflows from the mining sector, traders told Reuters. The currency was quoted at 18.69 per dollar, up from 19.01 a week earlier. Analysts pointed to elevated copper prices near record highs, the benefits of December's dedollarisation directive, and the restructuring of the national debt as the main drivers of the kwacha's strength.

ZDA Records $1.69bn in Q1 Actualised Investments

The Zambia Development Agency reported $1.69 billion in actualised investments in Q1 2026, alongside 9,576 jobs. Manufacturing and energy together accounted for over 70% of the total, with Lusaka Province contributing 65.3%. Cumulatively, the Agency has recorded $16.4 billion in actualised investments and 109,488 jobs since 2021. 

Zambia Targets China Soybean Export Market

Zambia is planning to tap the soybean export market after China expressed interest in buying up to three million metric tonnes from the country. Ministry of Defence Permanent Secretary Maambo Haamaundu said the defence wings would contribute to increased soybean production, in line with Government's broader agricultural diversification drive.

💶 DEBT RESTRUCTURING

Zambia Bonds Rally on $1.36bn Buyback Tender

Zambia launched a cash tender offer to buy back its $1.36 billion bond due 2053, funded by a $600 million African Development Bank loan and own resources. The bond rallied 5.5 cents to 79.21 cents on the dollar, with the yield falling 28.5 basis points to 14.1%, the best-performing emerging-market sovereign dollar bond on the day. Holders tendering by 5 June will receive $780 per $1,000 of principal.

Zambia and Israel Sign $460m Debt Restructuring

Zambia signed an agreement with Israel to restructure $460 million of debt. Finance Minister Situmbeko Musokotwane called it proof of the Government's commitment to fiscal discipline and debt sustainability. Israeli Ambassador Ofra Farhi said the deal cleared the path for a surge in bilateral trade and private sector investment.

🤝 INTERNATIONAL PARTNERSHIPS

President Hichilema Champions Investment At Africa Forward Summit

President Hakainde Hichilema urged investors to seize Zambia's policy reforms at the inaugural Africa Forward Summit in Nairobi. He highlighted energy sector reforms and called for a power interconnector linking Southern Africa to North Africa, stressing that the continent must ultimately be developed by Africans leveraging their own resources.

Germany Pledges K1.8bn for Development

Germany committed K1.8 billion towards Zambia's development agenda over the next two years, following bilateral talks on development cooperation. The pledge covers good governance, water and energy access, and food security through climate-resilient agriculture. It builds on a partnership of more than 60 years between the two countries.

UK and EU Back Zambia as Investment Destination

The UK described Zambia as an emerging destination for long-term investment at the Impact Capital Africa Investment Fest. High Commissioner Rebecca Terzeon said Zambia's inclusion in BII's new five-year strategy signalled confidence in its potential, while EU Ambassador Karolina Stasiak praised the country's stability and reforms. Officials urged Zambian SMEs to sharpen financial reporting to attract capital.

MAY MILESTONE ⛰️

May confirmed one of the most significant productivity shifts in the Zambian economy. The 2025/26 season is forecast to deliver a record 4.94 million tonnes of maize, up 28% on last year, improving food security. Area planted is broadly flat, meaning the gain reflects yield improvement rather than expanded acreage. Around 94% of production comes from small-scale farmers and family farms, signalling that the recovery is broad-based. The contrast with two years ago is stark, when the 2023/24 crop was devastated by the worst drought in living memory.

👀  WHAT WE’RE WATCHING IN JUNE

→ ZCCM Investment Holdings PLC is hosting its Capital Markets and Investor Day on Friday, 19 June 2026 in Paris, France.

→ Progress on the ZCCM-IH gold joint venture under Kyalo Goldfields and the Wonderful Group Ndola Lime Revival, as both move from announcement towards operational detail.

📖  WHAT WE’VE BEEN READING IN MAY

ZCCM-IH and Wonderful Group Revitalise Ndola Lime Production Facility - Discovery Alert | 28 May 2026

Favourable Outlook For The Mining Sector in Zambia - African Mining Market | 14 May 2026

Zambia Is the World’s Walking Safari Capital - BBC Travel | 4 May 2026

QUOTE OF THE MONTH

“The next chapter is about more jobs, industrial growth, more business, lower the cost of living and expand for every Zambian, opportunity”

— President Hakainde Hichilema at the filing of his nomination for re-election, May 22, 2026

Zambia Investor Briefing - April 2026

In this month's briefing: Zambia's inflation fell to 6.8% as investment momentum accelerated across mining and energy. KoBold Metals broke ground on the $2.3 billion Mingomba mine targeting 300,000 tonnes annual production, while BHP signalled large-scale copper exploration intent. President Hichilema launched Globeleq's $350 million 250MW solar plant, commissioned the 50MW Mansa facility, and reopened the $140 million Mulungushi Textiles plant after 20 years. British International Investment named Zambia a priority frontier market in its £15 billion strategy, while the Luanshya mine restarted after two decades.

🔢  APRIL IN NUMBERS

→ 6.8% - April inflation (maintaining target band)

→ $2.3bn - KoBold Metals Mingomba copper mine investment

→ $5.1bn - Chinese investment in Zambian mining sector

→ $2.18bn - Zimbabwe-Zambia rail line linking Kafue to Beira

→ $1.5bn - China-backed energy deal for 900MW capacity

→ $1.24bn - Tazara railway rehabilitation by Chinese mining firms

→ $20.3bn (£15bn) - British International Investment five-year strategy

→ $600k - ZDA export development fund for youth businesses

→ $350m - Globeleq-ZESCO 250MW solar plant construction

→ $140m - Mulungushi Textiles Kabwe plant reopening

→ $48m - Mansa 50MW solar plant commissioned

President Hichilema officiates the groundbreaking ceremony for KoBold Metals’ $2.3 billion Mingomba copper mine.

⛏️ MINING EXPANSION

Kobold Mingomba Mine Groundbreaking

KoBold Metals, the exploration company backed by billionaires including Bill Gates and Sam Altman, officially broke ground on what will be Zambia's biggest copper mine. The Mingomba mine will cost over $2.3 billion to build, making it one of the biggest ever investment projects in Zambia. It will eventually produce more than 300,000 tonnes of copper a year, ranking it among the continent's top sources. Silicon Valley-based KoBold has used its proprietary artificial intelligence technology to turbocharge exploration at Mingomba, discovering a previously unknown highly concentrated copper resource deep underground after acquiring the project in December 2022.

BHP Signals Exploration Intent

BHP has signalled intent to pursue large-scale copper exploration in Zambia, deploying advanced geological methods to detect deeply buried deposits traditional techniques miss. Head of global generative exploration Campbell McCuaig said many remaining large deposits are hidden beneath geological cover and require large-scale data analysis. BHP welcomed Zambia's efforts to expand geoscience data access, including government-backed airborne surveys and digitisation of geological records.

Chinese Investment Creates Jobs

Chinese firms have invested over $5.1 billion in Zambia's mining sector, creating around 19,000 jobs, according to Chinese Embassy Economic and Commercial Counsellor Jin Jun. China remains Zambia's largest export market for refined copper, accounting for over 15 percent of production. Jun confirmed dewatering works at Luanshya's 28 Shaft have been completed, with production expected to begin in September 2026.

Luanshya Mine Set To Resume Production

The Luanshya copper mine is set to resume production in August 2026 after a two-decade shutdown, marking a significant Copperbelt revival. The restart follows completion of dewatering operations at the site, idle since the early 2000s. The reopening is expected to add to Zambia's copper output as the country works toward its target of one million tonnes in 2026 and three million tonnes by 2031.

Battery-Electric Mining Truck Commissioned

First Quantum Minerals and Hitachi Construction Machinery commissioned the world's first ultralarge battery-electric mining truck at Kansanshi copper and gold mine. The all-electric Hitachi EH4000 truck integrates advanced battery technology with trolley-assist systems, representing a significant step towards decarbonising heavy mining haulage. 

SRK Opens Kitwe Office

SRK Consulting, a global advisory firm in the mining sector, launched its tenth African office in Kitwe, positioning the firm to support Zambia's growing mining sector. Partner Des Mossop said opportunities for growth are significant, with a revised mining cadastre in place and over half the country's surface remaining unexplored. The base is close to Zambia's centre of copper mining and near operations in the Democratic Republic of Congo, where SRK has a Lubumbashi office. SRK provides technical advisory services across the full mining lifecycle.

⚡️ ENERGY & INFRASTRUCTURE

Chongwe Solar Plant Launched

President Hakainde Hichilema launched construction of a 250-megawatt solar power plant and 150 MW/600 MWh battery energy storage system in Chongwe District. The $350 million project, to be constructed by Globeleq in partnership with ZESCO, will be situated at Kyindu Ranch along Leopards Hill Road. The President said the project contributes to Zambia's 10,000 megawatt target and emphasised diversifying beyond hydro, which accounts for over 80 percent of electricity.

Mansa Solar Facility Commissioned

Zambia commissioned a 50-MW solar plant in Mansa District, Luapula Province, marking the first major power generation investment in the region in over 60 years. Built at $48 million by China Machinery Company, the project created over 350 jobs during construction from February to December 2025. President Hichilema described the facility as a milestone for Luapula Province, noting it will support economic activities including manganese mining. 

China Energy Deal Signed

Zambia secured a $1.5 billion China-backed energy deal to add 900MW of power capacity through three separate 300MW projects spanning solar, wind, and coal-fired thermal generation. Signed with the Zambia Development Agency, the agreement forms part of Zambia's ambition to reach 10,000 MW by 2031. China Machinery Engineering Corporation plans to implement projects simultaneously rather than in phases, with technical teams arriving June 2026 for feasibility studies. The hybrid structure combines renewable expansion with firm baseload generation.

Zimbabwe-Zambia Railway

Zimbabwe and Zambia signed a Memorandum of Understanding for construction of a $2.18 billion railway line linking Lion's Den in Zimbabwe to Kafue in Zambia. The 311-kilometre line will pass through key areas including Chirundu, with 217 kilometres in Zimbabwe and 94 kilometres in Zambia. Zimbabwe's Permanent Secretary Engineer Joy Makumbe said the railway would reduce transit distances by 800 kilometres from Zambia to Beira versus the North-South corridor, 1,000 kilometres shorter than to South African ports, and 500 kilometres shorter than to Dar es Salaam.

Chinese Investment Creates Jobs

Chinese mining, shipping and logistics companies are joining a $1.24 billion project to revamp the 1,860-kilometre Tazara railway linking Zambia's copper region to Dar es Salaam. Copper producers CMOC Group and Zijin Mining Group are teaming up with state-owned China Civil Engineering Construction Corp, which will retain an 80 percent stake. The backing comes as Washington tries to loosen Beijing's grip on critical minerals supply chains in Africa. Once completed, the rehabilitated infrastructure will ease road congestion in Zambia and Congo.

🌍 TRADE & INVESTMENT POLICY

Inflation Falls to 6.8%

Zambia's annual inflation slowed to a more than eight-year low in April as government measures to cushion consumers blunted the impact of surging energy costs driven by the war in Iran. Consumer prices rose 6.8% this month compared with 7.1% in March, Statistician-General Sheila Mudenda told reporters in Lusaka on Thursday. Prices rose 0.7% in the month. The sustained inflation performance maintains Zambia within the Bank of Zambia's 6-8% target band.

BII Names Zambia Priority

British International Investment named Zambia among its priority frontier markets for investment as part of a new five-year strategy committing £15 billion to developing economies. The UK's development finance institution set out its ambition to scale up support for high-impact, climate-aligned investment across Africa, South Asia and the Caribbean.

ZDA Export Fund Approved

The Zambia Development Agency approved a $600,000 loan facility under the Zambia Export Development Fund to support businesses exporting Zambian products. Of the amount, $400,000 has been set aside for youth-led export businesses, while $200,000 goes to SMEs supplying goods and services to the mining sector. ZDA Head of Communications Kwali Mfuni said the funding aims to grow non-traditional exports and create employment. 

Mulungushi Textiles Plant Reopened

President Hichilema reopened the $140 million Mulungushi Textiles plant in Kabwe, a Zambia-China joint venture manufacturing uniforms for military, nurses, and public servants. The plant, dormant for 20 years, will create 500 jobs and provide a new market for local cotton farmers. The President directed Health and Defence ministries to buy uniforms locally, saying government wants to see the plant fully achieve its potential.

🤝 INTERNATIONAL PARTNERSHIPS

Vietnam Agricultural Reforms Discussed

President Hakainde Hichilema and his Cabinet met former Vietnamese Minister of Agriculture Dr. Cao Duc Phat in a session focused on drawing practical lessons from one of the world's most remarkable agricultural transformations. Dr. Phat presented on Vietnam's landmark Đổi Mới reforms, a 1986 liberalisation programme that shifted the country from subsistence farming to a globally competitive export industry. President Hichilema said Vietnam's experience offered actionable lessons for Zambia, and reaffirmed his government's national production targets: 10 million metric tonnes of maize, 1 million metric tonnes of wheat, and 1 million metric tonnes of soybeans annually by 2031. The President called for relations with Vietnam to be elevated into a formal Economic Partnership covering trade, investment, technology transfer, and skills development.

Ghana Zambia Digital Collaboration Deepened

Ghana and Zambia took steps toward deepening collaboration in digital transformation and innovation following a high-level meeting between Ghana's Minister for Communication, Digital Technology and Innovations Samuel Nartey George and Zambian Minister for Technology and Science Felix Mutati. The visit featured policy dialogues, regulatory meetings, and business-to-business sessions designed to unlock cross-border opportunities. Key Ghanaian institutions mobilised included the Bank of Ghana, National Communications Authority, National Information Technology Agency, Cyber Security Authority, and Ghana Investment Promotion Centre.

Sweden Zambia Political Consultations Institutionalised

Zambia and Sweden signed a Memorandum of Understanding on Political Consultations in Stockholm on March 30, institutionalising bilateral dialogue on issues from trade and development cooperation to peace, security, and climate action. Foreign Affairs Minister Mulambo Haimbe said the MoU marked a new chapter in the longstanding partnership between the two countries, which have maintained diplomatic relations since 1965. 

📊 SECTOR DEVELOPMENTS

Carbon Feed-in Programme Launched

Zambia launched its Carbon Feed-in Premium programme in April, designed to unlock up to 300 MW of private renewable investment, alongside plans for a 60,000 barrels-per-day crude oil refinery in Ndola to reduce dependence on imported refined fuels. Energy Minister Makozo Chikote will showcase the integrated strategy at African Energy Week 2026 in Cape Town from 12-16 October. Zambia has committed to adding over 2,610 MW of new capacity by end-2026.

APRIL MILESTONE ⛰️

When KoBold Metals acquired the Mingomba exploration license in December 2022, the site had been passed over by traditional mining companies for decades, what changed wasn't the geology, but the technology used to read it. Silicon Valley's machine learning models identified high-grade copper deposits deep underground that conventional exploration had missed, leading to the $2.3 billion project that broke ground in April. Production at 300,000 tonnes annually would position Mingomba as one of Africa's top ten copper operations and contribute roughly a third of Zambia's current total output once operational in the early 2030s. The joint venture structure sees KoBold holding 52%, Australian private equity firm EMR Capital 28%, and ZCCM Investments Holdings 20%, giving the Zambian state direct ownership in what will be the country's largest copper mine without upfront capital requirements.

👀  WHAT WE’RE WATCHING IN MAY

→ KoBold Metals Mingomba mine shaft sinking progress following April 29 groundbreaking ceremony

→ China Machinery Engineering Corporation technical teams arrival in June for $1.5bn energy deal feasibility studies

→ Luanshya copper mine production restart timeline ahead of August 2026 target

→ Zimbabwe-Zambia $2.18bn railway project financing structure and construction tender announcements

→ BHP Zambia exploration drilling commencement following April commitment to large-scale copper exploration

📖  WHAT WE’VE BEEN READING IN APRIL

KoBold’s Mingomba: Zambia’s Most Ambitious Copper Mine in 2026 - Discovery Alert | 30 April 2026

Big funds bet billions on mining supercycle - Reuters | 30 April 2026

Global scramble for battery metals intensifies as U.S. Chinese firms target Zambia’s $10 billion critical minerals market - Business Insider Africa | 30 April 2026

QUOTE OF THE MONTH

"It is everyone's responsibility to ensure that Zambia develops, so let us create a conducive environment for investors"

— President Hakainde Hichilema at the launch of the 250MW Leopards Hill Solar Plant, April 21, 2026

Zambia Investor Briefing - March 2026

In this month's briefing: Zambia's GDP growth forecast strengthened to 6.1% for 2026 as copper prices posted their first weekly gain amid Middle East conflict. KoBold Metals kicked off a $2.5 billion copper project targeting early-2030s production, while Canada's mining giants pushed output toward the 1 million tonne milestone. The Zambian government approved multi-billion dollar petroleum pipelines from both Tanzania and Namibia, establishing dual-ocean energy security. Inflation fell to 6.5% in March, while Q4 2025 revenue exceeded targets by 15.9% driven by mining sector profitability.

🔢  MARCH IN NUMBERS

→ 6.5% - March inflation (maintaining target band)

→ 6.1% - 2026 GDP growth forecast

→ 21.1% - Q4 2025 export growth ($3.52B→$4.27B)

→ 22.3% - Q4 2025 copper export earnings growth ($2.12B→$2.59B)

→ $2.5B - KoBold Metals copper project investment

→ $250M - Solar-wind hybrid energy project secured

→ $45M - World Bank budget support approved

→ 10-year - Tax holiday offered by ZDA for foreign investment

President Hichilema officiates ICTAZ Tech Conference, Training Expo and 17th Annual General Meeting in Livingstone.

📈 MIDDLE EAST CONFLICT & COPPER MARKETS

Iran Conflict Drives Market Volatility

Copper posted its first weekly gain in March amid rebounding Chinese demand, even as the Iran-US conflict continued to roil markets. The conflict, now entering its second month, has dented economic growth outlook, weighing on base metals. Aluminium has emerged as an exception given the Strait of Hormuz closure throttling approximately 9% of global supply. Japanese aluminium buyers paid their highest premium in 11 years. Copper added 0.4% to $12,195/tonne on London Metal Exchange (LME), giving it a 2.2% weekly gain. Shanghai Futures Exchange warehouses posted their second-biggest inventory decline on record as Chinese buyers took advantage of lower prices.

📝 POLICY AND GOVERNANCE DEVELOPMENTS

Inflation Maintains Target Band

March inflation fell to 6.5%, maintaining position within the Bank of Zambia's 6-8% target band for the second consecutive month after reaching 7.5% in February. The sustained convergence validates the central bank's monetary policy framework and creates space for further interest rate reductions to support growth. The inflation performance has been supported by the Kwacha's 17% appreciation against the dollar since the start of 2026, favourable weather conditions supporting food production, and continued macroeconomic stability. The achievement marks dramatic turnaround from the 22% inflation peak experienced in 2023.

Revenue and Export Growth Strengthens

Zambia recorded stronger revenue collections, rising exports, and improved economic growth during 2025, according to the Debt Statistical Bulletin. Revenue and grants reached K53.23 billion ($2.8B) in Q4 2025, exceeding the K45.93 billion ($2.4B) target by 15.9%. Performance was driven by higher income tax from mining and non-mining sectors, supported by increased mining profitability. Government recorded primary fiscal surplus of K8.36 billion ($437M). Exports increased 21.1% from $3.52 billion to $4.27 billion in Q4 2025 versus Q4 2024. Copper export earnings rose 22.3% from $2.12 billion to $2.59 billion, driven by higher volumes and stronger prices.

UK Bilateral Debt Restructuring

Zambia signed a bilateral debt restructuring agreement with the United Kingdom, marking another milestone in the country's comprehensive debt resolution strategy. The agreement follows the successful restructuring of 94% of $13.3 billion external debt under the G20 Common Framework and contributes to restoring long-term fiscal sustainability. The UK agreement joins previous bilateral restructuring deals with China, France, and other creditor nations, demonstrating continued international support for Zambia's economic reform programme.

World Bank Budget Support

The World Bank approved $45 million in budget support for Zambia, adding to the institution's portfolio which surpassed $3 billion in February. The additional support reflects continued confidence in Zambia's reform trajectory and economic governance performance, complementing ongoing IMF programme discussions. The budget support is designed to help government maintain essential services while implementing structural reforms, particularly in social protection, healthcare, and education.

GDP Growth Forecast Revised Upward

Zambia's GDP growth forecast was revised to 6.1% for 2026, reflecting strengthening economic momentum across multiple sectors. The projection is supported by expanding copper production approaching the 1 million tonne milestone, rising manufacturing investment commitments exceeding $4 billion, and improved macroeconomic stability following inflation's sustained return to the 6-8% target band. Key growth drivers include mining and quarrying sector benefiting from higher copper prices and volumes, agriculture sector recovery from drought, and expanding wholesale and retail trade. The forecast represents significant improvement from the -2.8% contraction experienced in 2020.

⛏️ MINING AND INDUSTRIAL DEVELOPMENTS

KoBold Metals $2.5B Copper Project

Jeff Bezos and Bill Gates-backed KoBold Metals kicked off a $2.5 billion copper project in Zambia targeting early-2030s production, representing one of the largest greenfield copper commitments in recent years. The AI-powered mineral exploration company uses machine learning and data analytics to identify high-potential copper deposits. The project is expected to create thousands of jobs during construction and operations while contributing to Zambia's goal of tripling copper output to 3 million tonnes by 2031.

Canadian Mining Giants Lead Expansion

Canadian mining companies are leading Zambia's copper expansion as output approaches the record 1 million tonne milestone, with major investments from First Quantum Minerals, Barrick Gold, and other Canadian operators driving production gains. Following the 890,346 tonne 2025 output, Canadian firms are expanding through FQM’s $1.25 billion Kansanshi S3 expansion, Barrick’s Lumwana super-pit development, and sustained production increases at existing facilities. The expansion aligns with Washington's efforts to diversify critical mineral supply chains away from Chinese dominance, with Canadian companies viewed as reliable partners in North American supply chain security.

Makor Resources $30M Investment

Makor Resources entered Zambia with a $30 million copper investment plan focused on exploration and development activities, adding to the growing pipeline of international mining commitments. Makor's investment will focus on brownfield exploration near existing copper operations and greenfield exploration in underexplored regions of the Copperbelt. The company joins a growing cohort of junior and mid-tier mining companies entering Zambia to capitalise on its favourable geology and an improved regulatory environment.

Zambia Third Most Attractive Mining Destination

Zambia emerged as the third most attractive mining investment destination in Africa according to industry rankings, positioning behind only South Africa and Ghana. The ranking reflects institutional reforms including the establishment of the Mines Appeals Tribunal and Cadastre Department, the implementation of digital licensing systems, and improved geological data management reducing friction for investors. The positioning validates President Hichilema's Mining Indaba 2026 pitch positioning Zambia as partner of choice for responsible mining investment, highlighting approximately $12 billion in mining sector investments secured over the past four years.

ZCCM-IH PlanetGold Partnership

ZCCM Investments Holdings signed an MoU with PlanetGold to support mercury-free gold mining, addressing critical environmental concerns in artisanal and small-scale gold mining sector. The partnership demonstrates government commitment to responsible mining practices while formalising and supporting artisanal miners which have historically operated informally. PlanetGold, a United Nations Development Programme initiative, provides technical assistance and financing to help small-scale miners transition away from mercury use. The MoU includes training, equipment provision, and access to formal gold markets for miners adopting mercury-free techniques.

Seeking Global Investors for Copper Target

Zambia is courting global investors, including from the United States, as it aims to more than triple copper output to 3 million tonnes by 2031, Mines Minister Paul Kabuswe confirmed. Investment talks extend to various countries as part of broader strategy to achieve the production target from 890,346 tonnes produced in 2025. Kabuswe emphasised fair deals: "It has to be a win-win situation for Zambia and for the investors."

⚡️ ENERGY & INFRASTRUCTURE

Multi-Billion Dollar Pipelines Approved

Cabinet approved development of two major cross-border pipelines signaling a strategic shift toward multi-corridor supply model to end reliance on a single import route. The Tanzania-Zambia Multi-Products Pipeline (TZMPP) will run parallel to the historic 1,710km TAZAMA pipeline, transporting petrol, jet fuel, and kerosene with a $2 billion investment and 7 million metric tonne annual capacity (exceeding the 2030 consumption forecast of 3.7 million tonnes). The Namibia-Zambia Refined Petroleum and Natural Gas Pipeline (NZPGP) will connect Walvis Bay to Lusaka, carrying refined petroleum and 350 million cubic feet of natural gas daily for gas-to-power applications supporting copper mining.

$250M Solar-Wind Hybrid Project

Zambia attracted $250 million for a 100MW solar-wind hybrid energy project, diversifying the renewable energy portfolio beyond hydropower dependence. The hybrid approach combines solar photovoltaic generation during daylight with wind power generation, reducing dependence on weather patterns and providing more consistent baseload power. The project addresses capacity constraints that contributed to severe load-shedding during the 2024-2025 drought when hydropower generation was curtailed. The 100MW capacity will support mining sector power requirements and national grid stability, contributing to government's goal of ending load-shedding and ensuring reliable electricity for industrial expansion.

Anzana 50MW Hydropower for FQM

Anzana will develop a 50MW hydropower project dedicated to First Quantum Minerals operations in Zambia, supporting the mining company's expansion plans and reducing dependence on the national grid. The dedicated power supply strengthens operational resilience for First Quantum's Kansanshi and Sentinel mines while contributing to Zambia's renewable energy generation capacity. The project follows an embedded generation model, where large industrial consumers develop their own power infrastructure to ensure supply reliability and cost competitiveness. Anzana will finance, construct, and operate the facility under long-term power purchase agreement with First Quantum.

EU Railways Rehabilitation Support

The European Union pledged further support for Zambia Railways rehabilitation following the initial €50 million grant, according to the Managing Director's March statement. The commitment strengthens regional connectivity and directly supports the Lobito Corridor strategy linking Zambia's Copperbelt to Atlantic port access through Angola, providing an alternative to traditional routes through South Africa and Tanzania. The railway rehabilitation is critical for reducing transport costs for copper exports and improving regional trade facilitation.

Air Transport Earnings Surge

Air transport earned Zambia K9.9 billion in 2025, reflecting the growing aviation sector's contribution to GDP and demonstrating economic diversification beyond traditional mining revenues. The aviation earnings include revenues from national carrier Zambia Airways, private carriers, airport services, and related aviation infrastructure. The sector's growth aligns with broader tourism expansion objectives and improved regional trade facilitation.

🌍 TRADE & INVESTMENT POLICY

ZDA 10-Year Tax Holiday

The Zambia Development Agency announced a 10-year tax holiday package to attract foreign investment, significantly strengthening incentives for international investors considering projects in priority sectors. The policy complements expansion of special economic zones and aligns with broader industrialisation and economic diversification strategy. The tax holiday applies to qualifying investments in manufacturing, agriculture processing, tourism infrastructure, and renewable energy.

First Capital Bank SME Recognition

First Capital Bank Zambia was named Fastest Growing SME Bank Zambia 2026 by Global Banking & Finance Review, recognising the institution's significant role in supporting small and medium enterprises across the country. First Capital Bank has developed specialised SME banking products including working capital facilities, equipment financing, and digital banking solutions tailored to small business needs.

FNB-BII MSME Partnership

FNB and British International Investment (BII) signed an MoU to support micro, small and medium enterprises, expanding access to finance for businesses driving economic diversification. The partnership leverages international development finance to address SME financing constraints that have historically limited growth of small businesses. BII's involvement brings patient capital and technical expertise to help FNB expand its MSME lending portfolio.

Klapton Reinsurance Regional Expansion

Klapton Reinsurance is targeting regional expansion as direct listing anchors capital market entry, strengthening Zambia's financial services sector. The reinsurance company's regional expansion strategy positions Zambia as a financial services hub for Southern Africa, complementing the country's ambitions beyond commodity exports. The direct listing on the Lusaka Securities Exchange demonstrates growing sophistication of domestic capital markets following macroeconomic stabilisation.

MARCH MILESTONE ⛰️

March's $2.5 billion KoBold Metals copper project, backed by Bezos, Gates, and AI-powered exploration, represents the largest greenfield copper commitment in recent years and validates Zambia's positioning as the destination for next-generation mining investment. The AI exploration approach, Canadian expansion toward 1 million tonnes, and Makor Resources entry demonstrate that Zambia has moved from crisis recovery to competitive selection. When technology investors deploy $2.5 billion in African copper, they're betting on geology, yes, but they're betting on governance first.

👀  WHAT WE’RE WATCHING IN APRIL

→ KoBold Metals project development timeline and construction commencement

→ Tanzania-Zambia and Namibia-Zambia pipeline financing structures and PPP terms

→ Canadian mining companies' production ramp toward 1 million tonne milestone

→ Bank of Zambia May MPC meeting and potential further rate cuts

→ Choolwe Chibomba kicks off season 6 of BackChat in an interview with Rebecca Terzeon, British High Commissioner to Zambia

📖  WHAT WE’VE BEEN READING (AND WATCHING) IN MARCH

Africa should not pick sides in minerals race, says Zambia - Financial Times | 2 March 2026

Zambia Seeks Global Investors to Triple Copper Production by 2031 - Discovery Alert | 16 March 2026

‘We learnt the hard way’, says Zambia’s Central Bank Governor Denny Kalyalya - The Africa Report | 16 March

QUOTE OF THE MONTH

"With have a clear pathway to achieving 3 million tonnes of copper by 2031 through revived operations, new projects, and ongoing exploration, Zambia is open for business and ready for partnerships that create jobs, deliver value, and drive sustainable growth."

— President Hakainde Hichilema speaking at the 2026 Zambia International Mining and Energy Conference and Exhibition

Zambia Investor Briefing - February 2026

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February 2026

In this month's briefing: Inflation fell to 7.5% in February - within the central bank's 6-8% target band for the first time in nearly seven years - prompting a 75 basis point rate cut to 13.5%. World Bank support surpassed $3 billion as GDP growth projections strengthened to 6.4% for 2026. Major infrastructure approvals included Tanzania-Zambia and Namibia-Zambia petroleum pipelines, while China's zero-tariff policy effective 1 May opens new export opportunities across agriculture and manufacturing sectors.

🔢  FEBRUARY IN NUMBERS

→ 7.5% - February inflation (first time in target band since 2019)

→ 13.5% - Policy rate (75bps cut, largest since 2020)

→ $3B+ - World Bank support portfolio

→ $12B - Mining sector investments secured (2021-2025)

→ $72M - Ghana-Zambia fintech deals ($7M concluded, $65M negotiating)

→ 8,000 - Jobs from Ghana partnership deals

→ $130M - ERB-approved energy licences (K2.45B)

President Hichilema delivers the keynote address at Mining Indaba 2026 in Cape Town.

📝 POLICY AND GOVERNANCE DEVELOPMENTS

Inflation Hits Target Band

Annual inflation fell to 7.5% in February from 9.4% in January, reaching the Bank of Zambia's 6-8% target band for the first time since May 2019, faster than the central bank's second-quarter projection. Food inflation cooled to 8.2% from 10.9% while non-food prices softened to 6.5% from 7.3%. The Kwacha rallied 17% year-to-date. The achievement strengthens the case for further rate cuts at May's Monetary Policy Committee meeting.

Central Bank Rate Cut

The Bank of Zambia lowered its key interest rate to 13.5% from 14.25%, implementing a 75 basis point cut—the largest since 2020. Governor Denny Kalyalya projected inflation will average 6.9% in 2026 (revised from 7.6%) and reach 6.3% in 2027. Foreign exchange reserves increased to $5.5 billion (4.8 months import cover). Risks remain tilted to the downside, with favourable weather, high metals prices and macroeconomic stability alleviating pricing pressures.

IMF Talks Timeline

Finance Minister Situmbeko Musokotwane confirmed IMF negotiations will begin "almost immediately" but finalise only after the August elections. With macroeconomic stability achieved, the next programme will focus on growth and job creation. Musokotwane reaffirmed fiscal consolidation commitment regardless of programme status. Copper price surges boost revenues while constitutional amendments increase parliamentary constituencies requiring supplementary budget allocations.

World Bank Support Surpasses $3 Billion

The World Bank confirmed financial support to Zambia surpassed $3 billion, with the portfolio expected to grow further. World Bank Vice President Guangzhe Chen noted the expanding program reflects confidence in Zambia's reform trajectory and economic governance. The delegation launched the Knowledge Impact Programme—a new agriculture initiative providing direct support to smallholder farmers to strengthen productivity and resilience.

Economic Reforms Delivering Results

Finance Minister Musokotwane stated economic reforms are delivering results with macroeconomic stability established. Pension withdrawals totalling K10.6 billion reached 518,000 contributors, water access expanded to 4.9 million citizens, 60,000 new electricity connections were made. GDP growth is projected at 6.4% in 2026 with fiscal deficit falling to 2.1% (from 9% in 2021). Manufacturing commitments exceed $4 billion with investment pledges from 20 companies generating 31,000 jobs.

⚡️ ENERGY & INFRASTRUCTURE

Tanzania-Zambia Pipeline Approved

Zambia’s Cabinet approved construction of the Tanzania-Zambia Multi-Products Pipeline through public-private partnership, positioning Zambia as an emerging regional energy hub. The pipeline will complement existing TAZAMA infrastructure to meet fuel demand projected at 3.7 million tonnes annually by 2030. Cabinet also approved the Namibia-Zambia Refined Petroleum and Natural Gas Pipeline, creating multiple supply corridors to safeguard against disruption and price volatility.

Kazungula Bridge Authority Launched

President Hichilema called on African nations to take ownership of economic development during the launch of the Kazungula Bridge Authority in Kasane, Botswana. The bridge has become the preferred route for countries further north, with truck traffic expected to rise from 400 trucks daily to 1,000. Hichilema stressed increased traffic must translate into real economic value including trade efficiency, lower transportation costs, and business growth. Botswana President Duma Boko emphasised Africa must break free from exporting raw minerals and importing finished products, calling for value addition and industrialisation.

ERB Energy Licences

The Energy Regulation Board approved 29 licences and 5 construction permits worth K2.45 billion ($130 million). The approvals strengthen Zambia's renewable energy infrastructure and demonstrate continued private sector confidence in the energy sector. The licences support government's diversification strategy away from hydropower dependency while addressing capacity constraints.

EU Lobito Corridor Investment

The European Union committed $130 million for key road infrastructure supporting the Lobito Corridor. The investment strengthens regional connectivity linking Zambia's copper production to Atlantic port access through Angola, reducing transport costs and transit times. The corridor represents strategic infrastructure positioning Zambia within evolving regional trade networks and critical mineral supply chains.

⛏️ MINING AND INDUSTRIAL DEVELOPMENTS

Mining Indaba Keynote

President Hichilema delivered the keynote address at Mining Indaba 2026 in Cape Town, announcing mining sector reforms have attracted approximately $12 billion in investments over four years. The President highlighted recapitalisation of Konkola Copper Mines and Mopani Copper Mines as key to achieving 3 million tonne copper production by 2031. Institutional changes including the Mines Appeals Tribunal and Cadastre Department have strengthened governance. Hichilema positioned Zambia as the partner of choice for responsible mining investment.

ZCCM-IH Metals Trading Strategy

ZCCM Investments Holdings is developing plans to start trading commodities to capture more value from mineral wealth. CEO Kakenenwa Muyangwa confirmed ZCCM-IH wants to access production from portfolio companies equivalent to ownership stakes to sell internationally. ZCCM-IH is transitioning from dividends to royalties, having successfully implemented a 3.1% royalty model with First Quantum at Kansanshi. The company approached China Nonferrous and JCHX Mining about following the model.

Manufacturing Price Reductions

More than 30 manufacturers announced price cuts on essential household and industrial goods following government pressure. Reductions span mealie meal, sugar, cooking oil, soya pieces and mattresses. Breakfast mealie meal dropped from K300 to K260, Zambia Sugar cut prices by 5%, and Seba Soya Pieces saw 19% reductions. Zambia Association of Manufacturers President Mohammed Umar attributed cuts to improved macroeconomic fundamentals including strengthening Kwacha and easing inflation.

🌍 TRADE & POLICY

China Zero-Tariff Policy

China'szero-tariff treatment on imports from 53 African countries, including Zambia, takes effect May 1st, 2026. The policy lowers entry costs for qualifying exports and widens market access for local producers. Honey, soy products and tobacco are identified as potential growth areas. The administration's broader programme - including TAZARA railway rehabilitation and special economic zones expansion - reinforces ambitions for Zambia to evolve into a regional production base.

UAE Bilateral Trade

UAE-Zambia bilateral trade hit $3.4 billion with the UAE targeting deeper commercial ties. The relationship reflects growing Gulf state interest in Zambian mining assets and infrastructure projects, following International Resources Holdings' acquisition of Mopani Copper Mines in 2023.

Ghana Partnership

Ghana and Zambia forged a comprehensive economic partnership during President Mahama's state visit spanning mining sector knowledge sharing, trade facilitation, and investment promotion. A Zambia-Ghana Business Dialogue yielded fintech transactions worth $7 million concluded between companies with $65 million in negotiations underway—deals expected to generate 8,000 jobs. The partnership demonstrates South-South collaboration models between African nations pursuing economic transformation.

FEBRUARY MILESTONE ⛰️

February's inflation return to the 6-8% target band after nearly seven years validates Zambia's macroeconomic stabilisation program. The 7.5% reading, achieved faster than projected, enabled the Bank of Zambia to implement its largest rate cut since 2020—signaling a fundamental shift from crisis management to growth orientation. Combined with $5.5 billion in reserves, 6.4% GDP growth projections, and manufacturers voluntarily reducing prices, the convergence demonstrates that fiscal discipline is translating into tangible household benefits. The milestone positions Zambia to negotiate a growth-focused IMF program from strength rather than distress.

👀  WHAT WE’RE WATCHING IN MARCH

→ Bank of Zambia inflation trajectory toward 6% lower bound target

→ Tanzania-Zambia pipeline financing structure and construction timeline

→ ZCCM-IH metals trading strategy implementation and Mercuria partnership developments

→ China zero-tariff policy (May 1st) preparation and export sector readiness

→ Manufacturing price reductions transmission to retail consumer prices

📖  WHAT WE’VE BEEN READING (AND WATCHING) IN FEBRUARY

Analysing Africa newsletter: An interview with Zambia’s president - The Economist | 24 February 2026

Zambia calls for domestic debt to be part of major indices - Financial Times | 20 February 2026

What Zambia’s 75bps interest rate cut really means for the economy - Business Insider Africa | 11 February 2026

IMF Forecasts Strong 5.8% Zambia Economic Growth for 2026 - Discovery Alert | 30 January

QUOTE OF THE MONTH

"Economic reforms are delivering results, with macroeconomic stability now firmly established and household-level benefits increasingly taking shape. Zambia is entering a period where the benefits of reform will increasingly become visible across sectors and communities."

— Finance Minister Situmbeko Musokotwane, speaking after President Hichilema's address to Parliament

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. To stay up to date follow us on social media:

Zambia Investor Briefing - January 2026

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January 2026

In this month's briefing: Zambia's 2025 copper production reached 890,346 metric tonnes (8% increase), inflation dropped below 10% for the first time since 2023, and Chinese mining companies began paying taxes in yuan marking an Africa-first policy shift. Major energy announcements included ZCCM-IH's $202 million renewable energy initiative targeting 312MW across all constituencies, while Zambia and Zimbabwe committed $440 million in equity to revive the $4.2 billion Batoka Gorge hydropower project.

🔢  JANUARY IN NUMBERS

→ 890,346 tonnes - 2025 copper production (+8%)

→ 9.4% - January inflation (first sub-10% since 2023)

→ $202M - ZCCM-IH renewable energy initiative (312MW)

→ $440M - Batoka Gorge equity commitment

→ $1B - Zambia Sugar market capitalisation milestone

→ $190M - IMF final ECF disbursement

→ 2,375 - Mining licences issued in 2025 (+9.2%)

President Hichilema hosts a delegation of global investors led by JP Morgan and Chase, joined by representatives from leading firms across London, Geneva, Boston, Dubai, Luxembourg, and the United States.

⛏️ MINING DEVELOPMENTS

2025 Copper Production Results

Zambia's copper production reached 890,346 metric tonnes in 2025, an 8% increase from 825,513 tonnes in 2024, though falling short of the one-million-tonne target. Vedanta's Konkola Copper Mines posted a four-fold increase to 80,215 tonnes, while Mopani Copper Mines increased output 40%. First Quantum's Kansanshi and JCHX Mining's Lubambe also recorded gains. The performance demonstrates progress toward the 3-million-tonne 2031 target as $10 billion in expansion projects advance across the sector.

Yuan Tax Payments

Chinese mine operators began paying royalties and taxes in yuan in October, making Zambia the first African nation to accept mining-tax payments in renminbi. The Bank of Zambia expanded 2018 dollar surrender requirements to include yuan, enabling operators to choose which currency to sell for tax obligations. The central bank cited reserve diversification and cost-effective debt servicing to China as key objectives. With copper exports heavily concentrated in Chinese markets where payments arrive in renminbi, the policy illustrates a high degree of commercial realism.

Mining Licensing Surge

The government issued 2,375 mining licences in 2025, a 9.2% increase from 2,175 in 2024. Artisanal Mining Rights jumped 57% from 680 to 1,068 licences. Of total 2025 licences, 1,666 involved direct Zambian participation. Major investments include Sinomine's $600 million Kitumba Mine featuring a 50MW solar plant, and FQM's $1.25 billion Kansanshi S3 Expansion creating 1,500 jobs. Strengthened oversight comes through the Geological and Minerals Development Act No. 2 of 2025 and the newly operational Minerals Regulation Commission.

🚜  AGRIBUSINESS EXPANSION  

Zambia Sugar Valuation Milestone

Zambia Sugar PLC reached a $1 billion market capitalisation on the Lusaka Securities Exchange, becoming the first company outside energy and mining sectors to achieve this landmark. Share price increased 40% since FY2025 close, rising from K48 to K67. The company announced plans to expand power generation from 40MW to 53MW by end-2026, reaching 60MW by 2030 through cogeneration technology. The expansion forms part of a $132 million investment programme to increase sugar production from 400,000 to 500,000 metric tonnes annually.

⚡️ ENERGY & INFRASTRUCTURE

ZCCM-IH Renewable Energy Initiative

ZCCM Investments Holdings launched Zambia National Energy Corporation Limited in partnership with the Ministry of Finance to drive the $202 million Presidential Constituency Energy Initiative. ZNEC will deploy renewable energy solutions targeting 2MW in each of Zambia's 156 constituencies for 312MW total capacity. The investment structure comprises 70% debt and 30% equity, with ZCCM-IH contributing $36.36 million for a 60% stake. The initiative strengthens ZCCM-IH's presence in energy transition while improving access in underserved constituencies.

Batoka Gorge Revival

Zambia and Zimbabwe committed $440 million in equity ($220 million each) to revive the delayed $4.2 billion Batoka Gorge hydropower project. The 2,400MW facility will provide 1,200MW to each country when complete. Located 54km downstream of Victoria Falls, the project faced years of delays including pandemic disruptions and June 2023 procurement withdrawal over transparency concerns. The equity commitment aims to strengthen project bankability and attract private capital for the 181m-high arch-gravity dam.

📝 POLICY DEVELOPMENTS

Inflation Drops Below 10%

Annual inflation fell to 9.4% in January from 11.2% in December, marking the first sub-10% reading since 2023. The Kwacha rallied 16% against the dollar since December, driven by central bank restrictions on foreign-currency use and surging copper prices. Food inflation eased to 10.9% from 12.9% while non-food inflation decelerated to 7.3% from 8.7%. The drop strengthens the case for further rate cuts when the Monetary Policy Committee meets February 11.

IMF Program Completion

The IMF Executive Board approved the sixth and final review of Zambia's Extended Credit Facility, authorising immediate disbursement of $190 million and bringing total disbursements to $1.7 billion. Real GDP growth is estimated at 5.2% in 2025, projected at 5.8% in 2026. Zambia significantly reduced macroeconomic imbalances and restructured 94% of $13.3 billion in debt while safeguarding social spending. The President thanked Zambians for their patience and resilience during the economic recovery programme, noting that results stem from prudent fiscal management and structural reforms recognised by the IMF.

JANUARY MILESTONE ⛰️

Zambia became the first African nation to accept yuan for mining tax payments, marking a pragmatic recalibration rather than strategic realignment. The Bank of Zambia's decision to complement—not replace—dollar tax channels reduces conversion frictions while maintaining the dollar as reserve anchor. With Chinese creditors holding an estimated 30% of external debt and China accounting for 20.5% of imports, the yuan option aligns settlement infrastructure with established trade patterns. The policy demonstrates Zambia's capacity to adapt currency administration to copper sector fundamentals without abandoning Western institutional relationships or compromising fiscal credibility.

👀  WHAT WE’RE WATCHING IN FEBRUARY

→ Bank of Zambia Monetary Policy Committee meeting (Feb 11) and potential further rate cuts following single-digit inflation

→ ZCCM-IH renewable energy rollout implementation timeline for 156-constituency deployment

→ Batoka Gorge project financing mobilisation and private investor engagement following $440M equity commitment

→ Zambian delegation arrives at Mining Indaba 2026 (Feb 9-12)

📖  WHAT WE’VE BEEN READING (AND WATCHING) IN JANUARY

Africa's Mineral Makeover - TIME Magazine | 15 January 2026

Zambia Metalex Cobalt Copper Project: Strategic Western Investment Initiative - Discovery Alert | 10 January 2026

China's Shadow in Copper: Zambia's Case for Yuan Mining Tax Payments - ZIPAR | 9 January 2026

QUOTE OF THE MONTH

"Despite external and domestic shocks, Zambia has significantly reduced macroeconomic imbalances, made considerable progress on debt restructuring, and undertaken sustained fiscal consolidation while safeguarding social spending."

— Nigel Clarke, IMF Deputy Managing Director, on completion of Zambia's Extended Credit Facility

CONTACT US

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Zambia Investor Briefing - December 2025

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December 2025

In this month's briefing: as Zambia closes out 2025, copper export data released in December showed October earnings surged 31.2% to $920 million, and major energy investments advanced the country's renewable energy transition. Infrastructure developments included the launch of the $326 million Mutanda-Kaoma road project and $4.5 million in railway modernisation funding.

🎅 DECEMBER IN NUMBERS

→ $920M - October copper export earnings (+31.2%)

→ $900M - Amsons Group power investment (1.3GW)

→ $326M - Mutanda-Kaoma road project

→ $132M - Zambia Sugar expansion

→ $4.5M - Railway modernisation funding

President Hichilema welcomes a delegation from the United States government, led by Caleb Orr, Assistant Secretary for the Bureau of Economic, Energy and Business Affairs

⛏️ MINING DEVELOPMENTS

Copper Export earnings surge

December data releases showed Zambia's copper sector posted strong October results, with export earnings from refined copper rising 31.2% to $920 million, up from $660 million in September. The monthly increase reflects momentum driven by strengthening global copper prices and accelerating demand from renewable energy infrastructure, electric vehicles, and power grid modernisation. The performance demonstrates the impact of President Hichilema's pro-business policies attracting fresh investment. Major expansions from First Quantum, Barrick, Vedanta, and others support the government's long-term target of three million tonnes annually by 2031.

First Quantum supports local businesses

First Quantum Minerals backed newly gazetted regulations aimed at increasing local participation following the Minerals Development (Preference for Zambian Goods and Services) Regulations, 2025. The company spent $1.7 billion with Zambian-registered businesses in 2024—84% of spending and equivalent to 6% of GDP. The Kansanshi S3 Expansion involved 2,500 Zambians and 535 local companies. First Quantum developed a new vendor registration system for local suppliers.

Jubilee Metals production surge

Jubilee Metals reported a 65% jump in first-quarter copper output as operations recovered from power outages. The company secured a private power purchase agreement for its Roan concentrator and set guidance of 4,500-5,100 tonnes for the year ending June 2026—roughly double prior output. CEO Leon Coetzer confirmed stable power supply. The company forecasts doubled 2026 production as it transitions from South African chrome and PGM assets to focus on Zambian copper.

🚜  AGRIBUSINESS EXPANSION  

Zambia Sugar investment

Zambia Sugar PLC announced a $132 million expansion to boost capacity from 400,000 to 500,000 metric tonnes. Investment includes an $18 million falling film evaporator, $23 million in irrigation technologies, and $75 million for the Twazabuka warehouse facility. CEO Oswald Magwenzi said the expansion will contribute to non-traditional exports and foreign exchange earnings. The company also plans to expand power generation to 100MW. Zambia Sugar ranks among the top 10 global producers and is a major employer in Southern Province.

Zambeef results

Zambeef Products PLC posted K2.9 billion gross profit and K8.1 billion revenue for the year ending September 2025, despite energy shortages and higher input costs. Profit jumped 25% to K225.1 million. Operating profit grew 31.4% to K640 million. The company commissioned a cheese plant in April as part of its $100 million expansion program. CEO Faith Mukutu emphasised cost efficiency and capacity expansion while maintaining vertically integrated operations across beef, poultry, pork, dairy, and crop production.

⚡️ ENERGY & INFRASTRUCTURE

Amsons Group power investment

Tanzanian conglomerate Amsons Group sealed a $900 million power deal comprising $600 million for a 1GW solar plant and $300 million for coal generation, delivering 1,300MW of new capacity. The solar component through Africa Power Generation consortium represents one of Sub-Saharan Africa's largest. MD Edha Nahdi said the projects will create sustainable jobs and build local capacity. The investment aligns with targets to add 1,000MW of solar and the Mission-300 initiative for 300 million Africans.

Mutanda-Kaoma Road launch

The government launched the $326 million Mutanda-Kaoma road project under a 25-year Public Private Partnership (PPP) concession. Western Corridor Limited, a special purpose vehicle by BeefCo Holdings and First Quantum Minerals, will design, finance, construct and operate the 371km road. The project converts gravel into international-standard bituminous highway, creating the shortest route from the Copperbelt to Walvis Bay port in Namibia. President Hichilema said the road cuts travel by 400 kilometres versus traditional routes.

Railway modernisation

The government released $4.5 million to Zambia Railways Limited (ZRL) for major recapitalisation. The funding complements €50 million from the EU's Railway Sector Support Programme for track rehabilitation and signalling on the Livingstone-Ndola mainline. Recapitalisation will renew rolling stock, restore critical track sections, modernise signalling and telecommunications, and upgrade passenger services. The initiative transforms ZRL into a modern, efficient system that lowers costs for mineral transport to regional ports and reduces road congestion.

📝 POLICY DEVELOPMENTS

US strategic partnership

US Assistant Secretary of State Caleb Orr confirmed America stands ready to invest further in Zambia during bilateral talks with Finance Minister Situmbeko Musokotwane. Discussions focused on job creation in mining and critical minerals. Orr emphasised the US wants to reset relations and deliver tangible benefits to Zambians. Musokotwane stated the government aims to transition Zambia from aid recipient to contributor to global development, with strategy centred on job creation and sustained growth.

DEAL OF THE MONTH 🤝

Amsons Group's $900 million power investment represents a watershed moment for Zambia's energy transition. The package combines $600 million for a 1GW solar plant with $300 million for coal generation, delivering 1,300MW of total capacity. President Hichilema called it a game-changer that addresses the country's over-reliance on hydropower. The solar component alone ranks as one of Sub-Saharan Africa's largest single power sector FDI commitments. The combined investment signals strong international confidence in Zambia's energy framework and provides both immediate capacity relief and long-term security, positioning the country to achieve energy surplus status.

👀  WHAT WE’RE WATCHING IN JANUARY

→ Amsons Group 1GW solar project implementation timeline and construction commencement.

→ Mutanda-Kaoma road construction mobilisation and initial works.

NOW LIVE ON BACKCHAT 🎬

In the latest episode of BackChat, Choolwe Chibomba sits down with Tom Elliot, COO at Hotspur Helium. Together, they discuss helium exploration in Zambia, Hotspur Helium’s journey in the sector, the importance of transparency and reform in the critical minerals space, and how the company is working to support and uplift local communities across the country.

📖  WHAT WE’VE BEEN READING (AND WATCHING) IN DECEMBER

The changing shape of Chinese aid to Africa - The Economist | 27 November 2025

China’s Critical Minerals Strategy in Africa - Africa Centre for Strategic Studies | 9 December 2025

QUOTE OF THE MONTH

"This 1 GW investment is a game-changer. It directly addresses our national crisis by providing reliable, clean, and non-hydro dependent power. The sheer scale of this project, facilitated by our government's commitment to efficiency and transparency, ensures that we are decisively on track to meet, and possibly exceed, our target of adding 1,000MW of new solar power to the grid."

— President Hakainde Hichilema on the Amsons Group $600 million solar investment, marking one of Sub-Saharan Africa's largest renewable energy commitments

🎄 ZAMBIA IS BACK… IN 2026 🎉

As we close out 2025, we extend our warmest wishes to all our readers for a joyful Christmas season and a prosperous New Year. Thank you for following Zambia's investment story with us throughout the year.

From all of us at Zambia is Back: Merry Christmas and a happy 2026.

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. To stay up to date follow us on social media.

Zambia Investor Briefing November

OCTOBER IN NUMBERS (AND LETTERS)

→ CCC+ - S&P credit rating (exit from default)

→ 14.25% - Policy rate (first cut in 5 years)

→ 11.9% - Inflation rate (October, continued decline)

→ 5.2% - IMF growth forecast for 2025

📈 ECONOMIC INDICATORS

Credit Rating Upgrade 

On 22 November, S&P Global Ratings removed Zambia's default status, five years after the country became Africa's first pandemic-era sovereign defaulter. The agency assigned a CCC+/C rating with a stable outlook. Zambia's dollar bonds maturing in 2033 rose to 95.91 cents, having returned 15% since April. The upgrade reflects progress in restructuring 94% of eligible debt, with only a small portion held by commercial banks remaining under negotiation.

Interest Rate Cut 

The Bank of Zambia cut its policy rate to 14.25% on November 12th, marking the first reduction in five years. Annual inflation fell to 11.9% in October from 12.3% in September, with prices easing as high copper prices boosted exports and strengthened the Kwacha. 

IMF Growth Projection 

The IMF projects Zambia's economy to grow 5.2% in 2025, above the 4.1% average for African countries. IMF Resident Representative Eric Lautier noted the projection was revised down from 5.8% due to energy sector challenges, but remains strong relative to regional peers. 

World Bank Endorsement 

The World Bank praised Zambia's economic reforms, highlighting fiscal discipline and improved macroeconomic stability as key drivers of the country's recovery.

⛏️ MINING DEVELOPMENTS 

Vedanta's $1.5B Konkola Expansion  

Vedanta Resources launched CopperTech Metals Inc., a US-domiciled subsidiary to operate Konkola Copper Mines with an additional $1.5 billion investment. The company targets 300,000 tonnes annually by 2031, up from 140,000 tonnes forecast for 2026. Konkola features copper ore grades of 2.9%, four times higher than the global average. The project leverages the US-backed $10 billion Lobito Corridor connecting Zambia's Copperbelt to Angola's Atlantic coast.

Mining Stake Regulations Rejected

President Hakainde Hichilema rejected proposed regulations that would have given the state a minimum 15% free-carried stake in mines producing copper and critical minerals. Hichilema’s special assistant for finance and investment confirmed the government does not support taking equity without financial consideration, protecting the investment climate as companies commit $10 billion in copper expansion projects.

Oil Refinery Investment

The Zambia Development Agency issued an investor license for a $510.49 million oil refinery in Ndola, expected to create 454 jobs. The project will be developed through a joint venture between the Industrial Development Corporation and China's Xiang Xin Holding Co. Limited within the Sub Sahara Gemstone Exchange Industrial Park.

Dangote Energy Partnership

Africa's richest man Aliko Dangote met President Hichilema to discuss energy sector investments. Dangote pledged to explore solar and thermal energy generation, leveraging his Ndola cement facility to address power deficits in Zambia and the DRC. The Dangote Group's existing Zambia operations represent over $500 million invested in a 1.5 million tonne cement plant with a 30MW captive power plant.

⚡️ ENERGY & INFRASTRUCTURE

EU Railway Modernisation

The European Union signed a €50 million agreement with Zambia Railways on November 13th to rehabilitate the Livingstone-Ndola mainline. The funding will support track renewals, signalling upgrades, and rail sector reforms including an open-access regime for private participation. The investment strengthens Zambia's position in the Lobito Corridor, the key trade route connecting the Copperbelt to Angola's Atlantic coast.

Solar Power Expansion

A $245 million 200MW solar project was announced for the Copperbelt region. The African Development Bank approved $14.5 million for a 20MW solar project. GenVision, Tatanga Energy, and AMDG Energy plan to develop a 300MW solar project plus battery storage in the Copperbelt.

Telecommunications Investment

The government announced a $280 million plan to end telecommunications outages and improve network reliability across the country. The initiative addresses persistent connectivity issues that have affected business operations and digital infrastructure development.

Angola Rail Link

Angola is seeking $4.5 billion to build a rail connection to Zambia's Copperbelt, further strengthening the Lobito Corridor infrastructure. The project would provide an alternative export route to the Atlantic coast, reducing dependence on existing southern routes through Zimbabwe and South Africa.

📝 POLICY DEVELOPMENTS

Pension System Reforms

Labour Minister Brenda Tambatamba announced comprehensive pension reforms to increase flexibility in lump sum access. The current 20% partial withdrawal will be expanded, and a voluntary sub-scheme will allow additional contributions beyond mandatory rates. Civil servants will gain access to the Public Service Pensions Fund alongside NAPSA contributions.

Mining Governance Transformation

Zambia implemented significant mining governance reforms, modernising licensing, regulatory frameworks, and transparency measures to improve investor confidence and operational predictability in the sector.

DEAL OF THE MONTH 🤝

S&P's removal of Zambia's default status marks a watershed moment five years after the 2020 default. The CCC+/C rating with stable outlook reflects completed restructuring of 94% of eligible debt and validates the government's fiscal discipline. The rating upgrade triggered an immediate rally in dollar bonds and positions Zambia to gradually rebuild access to international capital markets.

👀  WHAT WE’RE WATCHING IN DECEMBER

→ BackChat’s Choolwe Chibomba will be interviewing Tom Elliot, CEO of Hotspur Helium. The London based company recently secured exclusive rights to Nsama’s Exploration Licence in Northern Zambia, and are playing a leading role in developing Zambia’s helium resources.

→ Dangote Group energy investment details and timeline.

📖  WHAT WE’VE BEEN READING (AND WATCHING) IN OCTOBER

Zambia's Mining Governance Transformation and Modernization - (Discovery Alert | 17 November 2025)

Chinese power investments in Africa: lessons from South Africa and Zambia - (Overseas Development Institute | November 18, 2025)

China premier makes landmark Zambia trip as West vies for investment foothold - (DevDiscourse/Reuters | November 19, 2025)

QUOTE OF THE MONTH 

"This upgrade confirms that Zambia has moved out of default status and is steadily restoring its place as a credible, stable, and investable economy."

— Finance Minister Situmbeko Musokotwane on S&P's rating upgrade, marking Zambia's exit from five years of default status

Zambia Investor Briefing: October

In this month’s briefing: the Kwacha reached its strongest level since early 2024, inflation fell for the third consecutive month, and copper production remains on track for a historic milestone. This month also saw major policy developments including local content implementation and a pivot towards IMF programme extension.

OCTOBER IN NUMBERS

→ 23% - Kwacha appreciation YTD (Africa's #1)

→ 12.3% - Inflation rate (3-month decline)

→ 52.2 - PMI reading (7-year high)

→ 1M+ - Tonnes of copper production expected in 2025

→ $10B+ - Mining sector investment commitments reached

ECONOMIC INDICATORS

Currency Performance

The Zambian Kwacha closed October trading at K21.70 to the US dollar, representing a 23% appreciation year-to-date and making it Africa's top-performing currency in 2025. The strength is driven by elevated copper prices above $10,800/tonne and increased mining sector investment confidence.

Inflation

Inflation continued its downward trajectory, falling to 12.3% in September from 12.6% in August. Food inflation declined from 14.9% to 14.6%. The Bank of Zambia expects inflation to reach its 6-8% target range by Q1 2026.

Private Sector Growth

September's Purchasing Managers' Index rose to 52.2 - the fastest expansion since May 2018. Output increased at the strongest pace since June 2023, driven by new orders and improved customer purchasing power. Employment levels rose at one of the steepest rates in 2025.

⛏️ MINING DEVELOPMENTS

Record Copper Production Expected

Zambia is on track to produce over 1 million tonnes of copper in 2025—the first time since the 1920s. Production so far this year stands at 821,000 tonnes. President Hichilema has set a target of 3 million tonnes annually by the early 2030s.

Problems at mines in the Democratic Republic of Congo and Chile have reduced global supply, pushing copper prices up more than 20% this year to $10,887.50 per ton, creating a perfect opportunity for Zambia.

Jubilee Metals Refocuses on Zambia

In early October, Jubilee Metals Group announced it is selling its South African chrome and PGM operations for up to $90 million to focus exclusively on Zambian copper. The company received the first tranche of $15 million and expects completion by end of 2025. Jubilee's Three-Pillar Strategy targets 25,000 tonnes per annum through its Roan Concentrator, Sable Refinery, and Large Waste Project.

Local Content Implementation

In other mining news, Mines Minister Paul Kabuswe signed the Local Content Statutory Instrument to mandate increased participation by Zambian contractors and suppliers in the mining sector. The ministry committed to full implementation with benefits reserved for fully Zambian-owned companies.

⚡️ ENERGY & INFRASTRUCTURE

Power Sector Developments

This month, Zambia and Mozambique announced plans to jointly develop the 1,500MW Mphanda Nkuwa hydroelectric project on the Zambezi River. A Zambian delegation is scheduled to visit Mozambique in early November to assess project scope.

The announcement follows broader efforts to diversify energy sources, with plans to add over 740MW of solar capacity within the next year as part of the Mission 300 initiative targeting 10GW by 2030.

Agriculture Infrastructure

The UNDP, Zambian government, FAO, and WFP commissioned the Msoro Agro-Bulking Centre in Mambwe District—a $234,000 facility with 700-tonne capacity serving over 7,000 smallholder farmers. The Green Climate Fund-supported centre includes solar-powered water and modern storage infrastructure.

AI Special Economic Zone

The Zambia Development Agency signed a Letter of Intent with Lucid Circuit to establish an Artificial Intelligence Special Economic Zone valued between $150-300 million. The initiative is expected to position Zambia as a regional innovation hub and attract global investment in emerging technologies.

📝 POLICY DEVELOPMENTS

Aid and Self-Reliance

In early October, President Hichilema told the Financial Times that U.S. aid cuts are "long overdue" and will push Zambia to "take care of our own affairs." The government raised healthcare spending 13% to K26.2 billion in the 2026 budget and increased drug procurement funds by 30%.

IMF Program Extension

On 1 October, Finance Minister Situmbeko Musokotwane confirmed that Zambia is seeking a 12-month extension of Zambia's $1.7 billion IMF Extended Credit Facility through October 2026. The extension includes an additional $145 million in financing. Zambia has cleared 94% of its debt arrears.

DEAL OF THE MONTH 🤝

Jubilee Metals' $90M pivot to Zambia signals the UK’s growing confidence in the country's copper sector. The company is exiting mature South African operations to concentrate exclusively on Zambian opportunities in a rare full-portfolio shift that underscores the investment case for copper in a supply-constrained market.

👀  WHAT WE’RE WATCHING IN NOVEMBER

→ Zambian delegation visit to Mozambique for Mphanda Nkuwa project assessment

→ Potential Bank of Zambia interest rate decision (inflation now in declining trend)

→ Jubilee Metals' operational updates on Roan and Sable facilities

📖  WHAT WE’VE BEEN READING IN OCTOBER

Zambia's Copper Mining Expansion: $10 Billion Investment Drives 2025 Growth - (Discovery Alert, 9 October 2025)

Chibesakunda, Melu, Chola: Meet 10 women reshaping Zambian business - (The Africa Report, 9 October 2025)

Copper Drives Africa's Continued Mining Growth and Success - (Mining Review Africa, 15 October 2025)

Navigating Africa's Investment Landscape in 2025/26: Key Insights from RMB's Report - (African Business, 30 October 2025)

📈 BY THE NUMBERS: ZAMBIA'S MINING BOOM

🚜 $10B+ Total mining investment commitments        🚜 $2B Barrick's Lumwana expansion

🚜 $1.3B First Quantum's expansion plan              🚜 $1B Vedanta's commitment to Konkola

🚜 3M Tonnes annual copper target by early 2030s      🚜 70% Share of exports from copper

🚜 20% Copper price increase this year

QUOTE OF THE MONTH

"It forces us to grow our economies and to do the things we should have been doing. It's painful for now. There is a shock. But longer term, it's a good thing."

— President Hakainde Hichilema on US aid cuts.

Zambia Investor Briefing September

▶️ WATCH: Choolwe Chibomba and a powerhouse panel discuss how Zambian Mining Can Power the Green Energy Revolution LIVE at the Invest Zambia International Conference (IZIC) this month

OVERVIEW

⛏️ MINING:

• ZCCM Investment Holdings PLC has reached a market capitalisation of $1 billion on Lusaka Securities Exchange (LuSE), marking a historic milestone for the company.

• The US Trade and Development Agency (USTDA) has invested $1.4 million in Metalex Africa to fund a feasibility study for expanding Kazozu mine in Zambia’s North-Western province.

• Zambia hosted the first ever Artisanal and Small-Scale Mining (ASM) conference, bringing stakeholders from across the country and region to discuss the path forward.

• Firering Strategic Minerals has boosted production at its Limeco quicklime operations in Zambia after upgrading and restarting Kiln 1. 

⚡️ ENERGY:

• President Hakainde Hichilema has unveiled plans to ease Zambia’s power shortages by adding more than 740 megawatts (MW) of solar capacity within the next year.

• A 50MW solar plant in Mumbwa is nearing completion. FuelBuddy officially launched operations in Zambia, expanding its doorstep fuel delivery services.

• Construction has begun on the 100MW Maamba Solar Project in Zambia’s Southern Province.

• Terra Metals Inc., in partnership with the Investment Bank of Africa (IBA) and Nalolo Solar Power Energy Company (NASPEC), has advanced the Nalolo Solar Project.

• ZESCO Limited has introduced a 10-hour daily power supply in 21 high density townships. 

💰 TRADE:

• Zambia and Zimbabwe have strengthened bilateral cooperation by signing two memoranda of understanding (MoU).

• Zambia hosted the regional workshop Towards an Accelerated Implementation of the African Continental Free Trade Area (AfCFTA) Agreement in Africa.

• Zambia and Tanzania have reinforced their commitment to boosting regional trade by tackling non-tariff and technical barriers that hinder cross-border commerce. 

📈 INVESTMENT LANDSCAPE:

• ZamStats (Zambia Statistics Agency) reported a significant turnaround in Zambia’s trade balance recording a surplus of K1.4 billion in July 2025.

• Zambia’s tax revenue has reached a historic 16% of GDP. Zambia’s inflation eased for the third month straight, falling to 12.3% in September from 12.6 % in August.  

• Zambia’s stock exchange surged ahead of global peers in August, with the Lusaka Securities Exchange (LuSE) All Share Index rising 14.3%, fuelled by strong copper performance and renewed investor confidence. 

A CLOSER LOOK

ZCCM Investment Holdings PLC has reached a market capitalization of US $1 billion on the Lusaka Securities Exchange (LuSE), marking a historic milestone for the company. ZCCM-IH Board Chairperson Phesto Musonda attributed the success to a cleaned balance sheet, resolution of Mopani’s challenges, and strong share price growth. LuSE CEO Nicholas Kabaso hailed the development as a boost for Zambia’s capital markets, while Stockbrokers Zambia Limited described it as proof of the country’s resilience and economic growth potential.

Meanwhile, the US Trade and Development Agency (USTDA) has invested $1.4 million in Metalex Africa to fund a feasibility study for expanding the Kazozu copper and cobalt mine in Zambia’s North-Western province. The project could add up to 25,000 metric tonnes of copper and cobalt concentrates to Kazuzo’s each year. USTDA’s Thomas R. Hardy stated, “By leveraging US technology and expertise, this project will help expand Zambia’s mining sector, advancing responsible resource development to benefit both our nations.” Metalex CEO Ayo Sopitan welcomed the grant as a milestone in scaling up operations. The project is being developed in collaboration with local partner Terra Metals. 

Zambia hosted the first ever Artisanal and Small-Scale Mining (ASM) conference, bringing stakeholders from across the country and region to discuss the path forward. Mines Minister Paul Kabuswe stressed that artisanal mining must be treated as a serious economic activity capable of creating jobs and transforming livelihoods. President Hakainde Hichilema, who called for the conference, led discussions on harnessing mineral wealth responsibly. The two-day event, themed “Unlocking ASM Potential for Inclusive and Sustainable Development,” drew delegates from Zambia and neighbouring countries, along with international partners.

In other mining news, Firering Strategic Minerals has boosted production at its Limeco quicklime operation in Zambia after upgrading and restarting Kiln 1, now running at 45–50 tonnes per day. The company has also secured a ten-year mining licence for Tier 1 limestone deposit, which holds reserves capable of supporting over 50 years of output. Refurbishment of Kiln 2 is underway, with plans to scale total production across Limeco’s eight-kiln plant to 600–800 tonnes daily. CEO Yuval Cohen said strong demand and a growing sales pipeline position Limeco to become a leading regional supplier. The licence allows a shift from stockpiled feedstock to direct mining by late 2026, unlocking long-term growth potential.

Energy

President Hakainde Hichilema has unveiled plans to ease Zambia’s power shortages by adding more than 740MW of solar capacity within the next year. Addressing parliament, he acknowledged the toll of frequent outages and stressed the need to reduce reliance on hydro, which makes up 85% of the current energy mix. Recent milestones include the 100MW Chisamba Solar Phase-1 and 94MW Itimpi Solar project, with more plants under construction across seven provinces. Hichilema said private sector projects will push solar capacity beyond 1,000 MW in the same period, part of Zambia’s wider Mission-300 goal to deliver 10 GW by 2030 and expand access to millions of citizens.

A 50MW solar plant in Mumbwa is nearing completion, expected to play a vital role in strengthening Zambia’s long-term energy security. The project, led by China’s SinoMine Resource Group, awaits a final grid connection by ZESCO before it can begin supplying clean power to the national network. Zambia’s Ambassador to China, Ivan Zyuulu, commended SinoMine’s role in job creation. Once operational, the plant will enhance energy security and advance Zambia’s low-carbon development goals. 

Earlier this month, FuelBuddy officially launched operations in Zambia, expanding its doorstep fuel delivery services. The company aims to meet rising demand from sectors such as mining, agriculture, logistics, and construction by providing reliable, safe, digitalised fuel solutions. FuelBuddy CEO Adnan Kidwai stated that the expansion will help businesses cut downtime, improve efficiency, and focus on growth. 

Construction has begun on the 100MW Maamba Solar Project in Zambia’s Southern Province, bringing new investment and infrastructure to one of the country’s key regions. Once operations, the plant will feed clean energy into the national grid, complementing the existing thermal power, and contributing to Zambia’s goal of diversifying its energy mix. Maamba Solar Energy Director Ashwin Devineni stated that “This 100MW solar project is a critical step in diversifying Zambia’s energy mix and supporting the government’s ambition to add 1,000 MW of solar capacity to the national grid.”

In other energy news, Terra Metals Inc., in partnership with the Investment Bank of Africa (IBA) and Nalolo Solar Power Energy Company (NASPEC), has advanced the Nalolo Solar Project, highlighting the rising influence of private-sector partnerships in shaping Zambia’s clean energy future. Brian Chisala, Executive Director of Terra Metals Inc., stated, “We are thrilled to announce this strategic partnership, which represents a major step forward for the Nalolo and Lukulu Solar Projects.” The project is set to generate measurable socio-economic impact for Zamba, creating both construction-phase and long-term jobs while boosting demand for local suppliers and businesses

ZESCO Limited has introduced a 10-hour daily power supply in 21 high-density townships, including Wusakile, Kankoyo, Chibolya, Kanyama, and Chawama, to mitigate the effects of load shedding. The initiative is being rolled out in phases, with more areas set to benefit as additional power sources become available. Energy Minister Makozo Chukote noted that the move prioritises communities whose livelihoods rely on electricity, aiming to support households and small businesses as the government works toward lasting energy solutions. 

Trade

Zambia and Zimbabwe have strengthened bilateral cooperation by signing two memoranda of understanding (MoU), including a creation of a binational commission for regular dialogue and collaboration on the ZIZOP petroleum and natural gas pipeline to post energy security. The MoU, agreed during the mid-term review of the Joint Permanent Commission of Cooperation in Harare, also focuses on private sector development, simplified cross-border trade, enhanced electricity transmission, and improved transport connectivity. 

Meanwhile, Zambia hosted the regional workshop Towards an Accelerated Implementation of the African Continental Free Trade Area (AfCFTA) Agreement in Africa in Lusaka, with participation from Comoros, Djibouti, and Senegal. Organised under the UN Economic Commission for Africa (ECA) and UNCTAD Development Account project, the event provided a platform for dialogue on fast-tracking AfCFTA implementation and reviewed country-specific studies on its potential to boost investment and regional chains. Particular focus was placed on empowering women entrepreneurs, supporting SMEs, and tackling barriers to inclusive trade so that AfCFTA’s benefits reach broader segments of society. 

Zambia and Tanzania have reinforced their commitment to boosting regional trade by tackling non-tariff and technical barriers that hinder cross-border commerce. During a bilateral meeting, both countries reported progress on key initiatives, including improvements at the Tunduma border, operationalisation of Nakonde and Kasese/Zombe One-Stop Border Posts, and upgrades to the TAZARA railway and road infrastructure. The two governments pledged to implement joint decisions and reaffirmed their shared goal of deepening economic integration under the AfCFTA framework. 

Investment Landscape

Earlier this month, ZamStats (Zambia Statistics Agency) reported a significant turnaround in Zambia’s trade balance, recording a surplus of K1.4 billion in July 2025 after a K5.3 billion deficit in June. Exports rose nearly 23% to K26.6 billion, driven by strong growth in capital goods, consumer goods, and intermediate goods. Road transport remained the primary export channel, accounting for 94% of export value, while cumulative trade from January to July reached K376.1 billion, a 19.7% increase compared to the same period in 2024.

Zambia’s tax revenue has reached a historic 16% of GDP, reflecting strong fiscal policies and improved tax administration. The increase strengthens economic stability, supports sustainable development funding, reduces reliance on external aid, and provides businesses with a more predictable environment for long-term planning.

Zambia’s inflation eased for a third straight month, falling to 12.3% in September from 12.6% in August, its lowest level in nearly two years. The decline has been driven largely by a stronger Kwacha, which has lowered import costs and helped moderate price. Economists see room for potential monetary policy adjustments, including a possible interest rate cut in November. 

In other investment news, Zambia’s stock market surged ahead of global peers in August, with the Lusaka Securities Exchange (LuSE) All Share Index rising 14.3%, fuelled by strong copper performance and renewed investor confidence. Year-to-date, LuSE has gained nearly 56% in kwacha terms and 84% in dollar terms, making it one of the top-performing markets globally. Leading the rally is Copperbelt Energy Corporation Plc, whose stock has risen over 75% this year, surpassing a $1 billion valuation. 

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LATEST TRENDS

Currency

1 USD = 23.88 ZMW

30-day average = 23.74 ZMW

Volatility (last 30 days) = 0.54%

LONG READS

Zambia’s Copper Opportunity: Can the Workforce Keep Up? – (World Bank Group, 10.09.2025)

Kwacha Rally DrivesZambia Inflation to 24-Month-Low –(Bloomberg, 25.09.2025)

UPCOMING EVENTS

1-3 October — African Mining Week — Cape Town, SA

6-10 October — Zambia Mining and Investment Insaka — Lusaka, Zambia

14-15 October — AFSIC - Investing in Africa — London, UK

14 October — Africa Technology Summit — London UK

21-22 October — FT Africa Summit — London, UK

24-25 October — Africa Business and Investment Forum — London, UK

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. To stay up to date follow us on social media:

Zambia Investor Briefing August

▶️ WATCH: Choolwe Chibomba and a powerhouse panel discuss how Zambian Mining Can Power the Green Energy Revolution LIVE at the Invest Zambia International Conference (IZIC) this month

OVERVIEW

⛏️ MINING: Zambian President Hakainde Hichilema officiated the commissioning of First Quantum Minerals’ $1.25 billion S3 Expansion at Kansanshi. First Quantum Minerals secured a $1 billion gold streaming deal with a subsidiary of Royal Gold. Following the $1 billion gold-streaming deal easing balance sheet pressures, First Quantum Minerals has shelved plans to sell minority stakes in its Zambian copper mines. Jubilee Metals Group has provided an update on its Zambian copper portfolio. Turkish firm ALP24 has recently launched energy and mining projects across Africa, including in Zambia.

⚡️ ENERGY: Zambia has launched a new Solar Electrification and DRIVE Initiative project. ZESCO Limited has established a $300 million joint venture with Anzana Electric Group to deliver first-time grid connections for nearly two million Zambians along the Lobito Corridor by 2030. The World Bank Board of Executive Directors approved a $200 million International Development Association grant. Zambia has broken ground on a 100MW Solar PV project in the country’s Eastern Province.

💰 TRADE: Zambia and Qatar have signed a Memorandum of Understanding (MoU) covering 11 areas of cooperation across various sectors, valued at US $19 billion. The Zambian government approved the export of 501,620.5 Mt of surplus maize grain and mealie meal. Zambia is set to sign a concession agreement with TAZARA for the development of the Lobito Corridor, aiming to facilitate trade and promote regional integration. The implementation of a comprehensive zero-tariff policy covering all tariff lines has significantly boosted bilateral trade between China and Zambia.

📈 INVESTMENT LANDSCAPE: ZCCM Investment Holdings (ZCCM-IH) has handed over a K91 million dividend to the Ministry of Finance and National Planning. Bloomberg’s updated economic outlook in August 2025 has projected Zambia as Africa’s fastest-growing economy. Zambia’s public debt-to-GDP ratio is projected to decline to approximately 91.1% by December 2025, the first time in seven years. President Hakainde Hichilema’s state visit to Egypt in February has delivered significant results, with private investors pledging close to $500 million. The Zambia Investment & Innovation Roadshow 2025 is currently underway. Zambia’s inflation has slowed to a two-year low.

A CLOSER LOOK

Mining Developments

Zambian President Hakainde Hichilema officiated the commissioning of First Quantum Minerals’ $1.25 billion S3 Expansion at Kansanshi. The project extends the mine’s life to the 2040s and is set to double the ore processing capacity from 28 million to 53 million tonnes a year. FQM has set an annual target of 450,000 to 500,000 tonnes of copper annually.  Key upgrades include a new processing plant, pit and fleet expansion, and a $115 million smelter upgrade. The project created 1,800 construction jobs and is anticipated to create an additional 800 permanent jobs, with 430 Zambian-owned companies involved. President Hichilema described the project as proof of the private sector's confidence in Zambia’s economic trajectory.  

Earlier this month, First Quantum Minerals secured a $1billion gold streaming deal with a subsidiary of Royal Gold. The agreement provides upfront funding in exchange for a share of future gold production from the Kansanshi copper mine in Zambia. The deal boosts First Quantum’s financial flexibility and supports the $1.25 billion S3 Kansanshi expansion, representing a significant vote of confidence in Zambia’s mining sector and a step forward in the country’s goal of producing 3 million tonnes of copper annually by 2031.

Following the $1 billion gold-streaming deal easing balance sheet pressures, First Quantum Minerals has shelved plans to sell minority stakes in its Zambian copper mines.  Last year, the company considered divesting minority interests in its Kansanshi and Sentinel operations, following the 2023 shutdown of its Panama Mine. CEO Tristan Pascall stated that the deal to sell part of Kansanshi’s gold output to Royal Gold has reduced the need to divest. “While we’re definitely open to partnerships and we continue to look at that, we are not looking for a transaction in Zambia.” The August 19 commissioning of the $1.25 billion Kansanshi expansion is set to restore positive cash flow from the Zambian operations. 

In other mining news, Jubilee Metals Group has provided an update on its Zambian copper portfolio, highlighting progress in its integrated mine-to-mine production strategy. The Sable refinery, supported by the Munkoyo open pit and Project G, is being developed as the primary copper feed for cathode production, with drilling underway to explore combining multiple pits into a large-scale operation. The upgraded Road concentrator ramped up successfully, and Jubilee is also advancing its rights to the 240 Mt Large Waste Tailings dump, prioritising resources and monetising non-core stockpiles worth approximately $18 million.

Turkish firm ALP24 has recently launched energy and mining projects across Africa, including in Zambia, as they try to balance domestic supply security with efforts to expand international energy and mining partnerships. In Zambia, the ALP24 is investing in copper and cobalt projects, both of which are critical for electric vehicle technologies and the global energy transition. The projects are also designed to generate social benefits through technology transfer, environmental sustainability, and local job creation. 

Energy

Zambia has launched a new Solar Electrification and DRIVE Initiative project, backed by an initial investment of $5 million, to bring clean and reliable energy to 250 facilities across all ten provinces. Once completed, the initiative will benefit more than 1.3 million people in Zambia, particularly in rural and underfed areas. In addition, this project is also providing 200 motorbikes to strengthen outreach and vaccine delivery, whilst also creating local jobs. 

ZESCO Limited has established a $300 million joint venture with Anzana Electric Group to deliver first-time grid connections for nearly two million Zambians along the Lobito Corridor by 2030. The corridor is planned as a key infrastructure and transit route for exporting critical minerals and other goods from Central Africa to global markets. The partnership will expand electricity generation, including run-of-river hydropower, and focus on rural distribution. Under the agreement, Anzana will lead a pilot project in Zambia’s North-Western Province, aiming to accelerate initial connections by 2026. Anzana and other development partners will jointly invest $50 million to enable around 40,000 new households and business connections and add up to eight megawatts of new generation over the course of two years. 

Earlier this month, the World Bank Board of Executive Directors approved a $200 million International Development Association grant for the 13th phase of the Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) Programme. The Programme is set to provide reliable and sustainable energy services to more than one million beneficiaries in Zambia within the next five years. The ASCENT Zambia project not only focuses on connecting Zambians living in remote and underserved communities, but it also aims to supply reliable and affordable power to businesses and industries in Zambia, which will, in turn, serve to support economic growth and job creation. 

In other energy news, Zambia has broken ground on a 100MW Solar PV project in the country’s Eastern Province, marking another step forward towards fulfilling the country’s 1,000MW solar power target. The project is being developed in Chipata West, part of Chief Chinyaku’s chiefdom, and is expected to be completed within 12 months. “It is expected to provide locally generated clean energy within this part of the national grid, serving the rural communities in Eastern Province and create employment, skills transfer, boost commercial activities and trade in area and contribute to environmental sustainability through carbon emissions reduction,” the energy utility said.

Trade

Zambia and Qatar have signed a Memorandum of Understanding (MoU) covering 11 areas of cooperation across various sectors, valued at US $19 billion. The agreement spans energy and oil, banking and finance, housing and urban development, agriculture and food security, mining and minerals, logistics and infrastructure, as well as telecommunications, health, education, tourism, and industrial development. President Hichilema welcomed the agreement, noting that bilateral relations with Qatar had been formalised through this comprehensive agreement.

Meanwhile, the Zambian government approved the export of 501,620.5 Mt of surplus maize grain and mealie meal. In the 2024-2025 season, Zambia produced around 3.7 million Mt of maize grain, with 385,000 Mt carried over from the previous season, totalling 4.04 million Mt, exceeding the national requirements. Due to this surplus, the cabinet approved exports, which are expected to benefit local transporters, provide liquidity in the maize value chain, and encourage farmers to expand production.

Zambia is set to sign a concession agreement with TAZARA for the development of the Lobito Corridor to facilitate trade and promote regional integration. This agreement is to be completed under the Public Private Partnership (PPP). The concession agreement to develop the Lobito Corridor reflects wider African efforts to promote greater economic integration and closer regional ties to support continued development. 

The implementation of a comprehensive zero-tariff policy covering all tariff lines has significantly boosted bilateral trade between China and Zambia. Chinese Ambassador to Zambia, Han Jing, stated that trade volumes between the two countries reached $3.56 billion in the first half of 2025, representing a 15.5% year-on-year increase. Speaking at the eighth Council Inaugural Ceremony of the Association of Chinese Corporations in Zambia on 25 August, Han said that the elevation of bilateral relations to a comprehensive strategic and cooperative partnership has strengthened mutual trust and yielded benefits from cooperation. 

Investment Landscape

ZCCM Investment Holdings (ZCCM-IH) has handed over a K91 million dividend to the Ministry of Finance and National Planning, marking a 50 million kwacha increase from last year’s K41 million payout. Speaking at the handover ceremony in Lusaka, Finance Minister Situmbeko Musokotwane commended the company for delivering strong returns despite past challenges in the mining sector. He described mining as the “cornerstone and drive of the country’s economic growth.” 

Bloomberg’s updated economic outlook in August 2025 has projected Zambia as Africa’s fastest-growing economy, with anticipated growth of over 6 percent – the highest since 2018 when the economy expanded at 4 percent. The forecast, presented as a follow-up at the Africa Business Media Innovators Summit 2025 in Livingstone, underscores Zambia’s remarkable financial turnaround following the landmark debt restructuring milestone of June 2024, which sparked renewed investor confidence and strong bond market performance.

Earlier this month, it was reported that Zambia’s public debt-to-GDP ratio is projected to decline to approximately 91.1% by December 2025. This marks the first time in over seven years the ratio has fallen below the 100 percent threshold. The latest IMF Country Report on Zambia forecasts a continued downward trajectory, with an expected drop to 69.9 percent by 2027. Dr Musokotwane stated, “A declining debt-to-GDP ratio is a critical indicator that the economy is growing faster than the debt burden, reducing the risk of debt distress.” Reduced public debt levels are expected to provide greater fiscal flexibility, enabling increased government investment in key sectors such as infrastructure, health, education, and social protection. 

President Hakainde Hichilema’s state visit to Egypt in February has delivered significant results, with private investors pledging close to $500 million for energy and infrastructure projects, the government announced. Foreign Affairs Minister Mulambo Haimbe told parliament that the visit had been “fruitful, and Zambians can expect meaningful progress in agriculture, tourism, infrastructure, and energy.” The foundation of the investment package involves the construction of 200-megawatt solar plants in Kafue and Mongu, with operations expected to begin by 2026. 

In other investment news, the Zambia Investment & Innovation Roadshow 2025 is currently underway. The strategic initiative is designed to enhance bilateral relations between Zambia and key US states, including California, Texas, and Georgia. The high-level tour aims to foster sustainable partnerships across various sectors, including technology, agriculture, energy, education, and finance. By facilitating direct investment opportunities and showcasing Zambian innovation, the Roadshow aims to promote knowledge exchange and capacity building.

Zambia’s inflation has slowed to a two-year low, easing to 12.6 percent in August from 13 percent in July, supported by a stronger kwacha that has gained 19 percent against the dollar on higher copper prices. Food inflation fell to 14.9 percent while non-food slowed to 9.3 percent, with prices rising 0.5 percent month-on-month. The easing trend has created the largest gap in six years between inflation and the central bank’s policy rate, raising expectations that the Bank of Zambia could cut rates in November.

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LATEST TRENDS

Currency

1 USD = 23.65 ZMW

30-day average = 23.22 ZMW

Volatility (last 30 days) = 0.38%

LONG READS

Exploring How Zambia Can Leverage Energy Transition Minerals (ETM) for Economic Transformation - (World Bank Group, 12.08.25)

Zambia’s economy gets to a level it has not experienced in two years – (Business Insider, 28.08.25)

UPCOMING EVENTS

9-23 September — UNGA 80 — New York, US

24 September — African Investment Forum — London, UK

25-26 September — International Construction Technology Fair — London, UK

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. To stay up to date follow us on social media:

Zambia Investor Briefing July

▶️ WATCH: Choolwe Chibomba and a powerhouse panel discuss how Zambian Mining Can Power the Green Energy Revolution LIVE at the Invest Zambia International Conference (IZIC) this month

OVERVIEW

⛏️ MINING: At the Invest in Zambia International Conference in Lusaka, President Hichilema announced that the country is on track to reach one million tonnes of copper production this year.  Vedanta Resources has started an ambitious $400 million renovation of Konkola Copper Mines’ smelter in the Copperbelt. The Zambian Ministry of Mines and Minerals Development, with the British Geological Survey, launched the Critical minerals potential of Zambia. China has dispatched a fleet of 31 pure‑electric mining trucks for a copper project in Zambia. India has sent a team of geologists to survey a 9,000 km² exploration zone in Zambia focused on cobalt and copper.

⚡️ ENERGY: At the start of the month, the Energy Regulation Board (ERB) announced significant reductions across all fuel types. Zambia’s state-owned Industrial Development Corporation (IDC) signed a memorandum of understanding with Fujian Xiang Xin Corp. to develop an $1.1 billion oil refinery that will process about 60,000 barrels a day. ZESCO, in collaboration with First Quantum Minerals, Barrick, ADC, and Zutari, has launched a 330 kV network upgrade across North‑Western Province. ZESCO has also signed a 25-year power purchase agreement (PPA) with Lufubu Power Company to procure 163 MW of baseload hydropower.

📈 INVESTMENT LANDSCAPE: The inaugural Invest Zambia International Conference (IZIC) convened nearly 2,000 delegates, including government officials, investors, industry leaders, diplomats, and development partners. A report by the World Bank echoed the favourable economic outlook forecast by Finance and National Planning Minister Situmbeko Musokotwana in June. The Government collected K70.3 billion in tax revenue during the first six months of 2025, surpassing its target of K67.4 billion by K2.9 billion. The International Monetary Fund (IMF) announced plans to immediately disburse $184 million to Zambia. President Hakainde Hichilema officially launched Growth Investment Partners (GIP) Zambia, an initiative designed to channel more than $300 million into up to 150 Zambian small and medium-sized enterprises (SMEs).

A CLOSER LOOK

Mining Developments

At the Invest in Zambia International Conference in Lusaka, President Hichilema announced that the country is on track to reach one million tonnes of copper production this year, in line with the new dawn government's goal of three million tonnes by 2030. The President noted the country’s renewed mining momentum driven by reforms aimed at unlocking dormant assets and attracting large-scale investment. Key among these efforts has been the reopening of previously inactive sites, including Kalengwa and Shaft 28 at Luanshya. President Hichilema also highlighted Zambia’s stable legal environment, which he said guaranteed the safety and protection of investors and businesses.

Vedanta Resources has started an ambitious $400 million renovation of Konkola Copper Mines’ smelter in the Copperbelt, following its mid‑2024 return to operational control. Funds include $250 million for debt repayment, $124 million in instalment payments and $26 million toward underground operations and community development. The overhaul, which will focus on foundation reinforcement, refractory lining replacement, furnace modernisation, and emissions controls, aims to lift annual smelter output from under 30,000 tonnes today to 300,000 tonnes by the early 2030s, closing a 270,000-tonne production gap.

In other mining news, the Zambian Ministry of Mines and Minerals Development, with the British Geological Survey, launched Critical minerals potential of Zambia, an online guide funded by the UK’s FCDO and BGS’s International Geoscience Research and Development programme. The report profiles eleven priority minerals and gives geology, production and exploration insights. Clive Mitchell, the project leader, said, “The lithium, graphite, cobalt and other critical mineral resources of Zambia are sorely needed to decarbonise global power generation and storage.” The publication provides valuable information for investors, policymakers and researchers.

China has dispatched a fleet of 31 pure‑electric mining trucks from Breton Technology to an African branch of the 15th Metallurgical Construction Group for a copper project in Zambia. The trucks are slated to arrive in Durban after a 20–25-day voyage as part of a zero-carbon “mining robot system” that includes autonomous driving and clean-energy solutions. This deployment is a flagship element of China’s $5 billion commitment to enhance Zambia’s mining sector through to 2031. "The overseas cooperation [is] the first large-scale deployment of electric mining trucks at one go to a mining project in Africa. It will help further upgrade the local mining equipment", said Li Wenjie, the chairman of China’s 15th Metallurgical Construction Group's construction trade company in Africa.

India has sent a team of geologists to survey a 9,000 km squared exploration zone in Zambia focused on cobalt and copper. Over a two to three-year program, the team will map cobalt deposits - vital for electric-vehicle and battery production - and copper reserves used in power generation and electronics. The initiative follows an exclusive exploration agreement granted to India and is supported by partnerships with KABIL and private sector investors. Upon completing the survey, the government plans to apply for mining leases and forge downstream processing ventures. 

Energy

Meanwhile, Zambia’s state-owned IDC signed a memorandum of understanding with Fujian Xiang Xin Corp. to develop an $1.1 billion oil refinery that will process about 60,000 barrels a day. The planned facility, set to be located in Ndola in the Copperbelt province, will have the capacity to process up to 3 million tonnes of crude oil annually. The refinery will also feature a 130-megawatt power generation plant, with 100 megawatts of electricity to be fed into the national grid, contributing to Zambia’s energy security. The project is expected to generate approximately 2,200 jobs across civil works, mechanical and electrical installations, and logistics. Once operational, the complex is set to sustain about 600 direct jobs and more than 2,000 indirect roles in operations, supply chain services, maintenance, and support functions.

ZESCO, in collaboration with First Quantum Minerals, Barrick, ADC, and Zutari, has launched a 330 kV network upgrade across North‑Western Province to support the Kansanshi S3 and Lumwana Superpit expansions. In Phase 1, FQM is funding and installing two STATCOM units in Solwezi and Kalumbila to manage voltage fluctuations and secure grid stability. Phase 2, which is subject to final engineering and environmental approvals, will upgrade the main transmission corridors. Upon completion, the project is expected to deliver enhanced voltage regulation, boost transfer capacity, and facilitate greater integration of renewable energy.

ZESCO has also signed a 25-year power purchase agreement with Lufubu Power Company to procure 163 MW of baseload hydropower from a new plant in the Lufubu River in northern Zambia. The facility could be expanded in line with future demand and is expected to contribute approximately 5% of Zambia’s total installed capacity once operational. The project is intended to improve grid stability by reducing reliance on southern hydropower assets. “By leveraging the northern circuit’s untapped hydropower potential, we are future-proofing our grid against climate variability and aligning with Zambia’s broader ambitions to position itself as a regional hydropower exporter,” says ZESCO’s MD Justin Loongo.

Investment Landscape

The inaugural Invest Zambia International Conference wrapped up on Friday, 18. The conference convened nearly 2,000 delegates, including government officials, investors, industry leaders, diplomats, and development partners, to explore opportunities across energy, mining, agriculture, tourism, manufacturing, technology, and infrastructure. The conference, hosted by the Zambia Development Agency, generated over $3.0 billion in Memorandum of Understanding agreements, with more than 63 exhibitors showcasing investment-ready projects, while panel discussions and one-on-one meetings fostered strategic partnerships.

Earlier this month, a report by the World Bank echoed the favourable economic outlook forecast by Finance and National Planning Minister Situmbeko Musokotwana in June. The Zambia Economic Outlook Report predicts an increase in Real GDP by 5.8% and with an average growth rate of 6.5% for the years 2026 and 2027. “We must maintain the policy trajectory that has caused this to happen, of assuring that the budget is managed in a sustainable manner,” said the finance minister of the Report.

The Government collected K70.3 billion in tax revenue during the first six months of 2025, surpassing its target of K67.4 billion by K2.9 billion, according to the 2026–2028 Medium Term Budget Plan (MTBP). The overperformance in tax revenue was driven by stronger-than-expected returns across most tax categories. Total domestic revenues still reached K88 billion, aligning closely with government projections and demonstrating the resilience of the domestic tax collection even amid economic pressures.

At the same time, the International Monetary Fund announced plans to immediately disburse $184 million to Zambia, after the country agreed to expedite reforms to boost economic growth and collect more taxes. The disbursement brings the total received from the nation's 38-month IMF programme to $1.55 billion. The inflows from the IMF will support the kwacha and the nation’s recovery from a painful years-long debt restructuring that’s still to conclude and a once-in-a-generation drought.

President Hakainde Hichilema officially launched Growth Investment Partners Zambia, an initiative designed to channel more than $300 million into up to 150 Zambian SMEs over the next 15 years. The investment platform will be a partnership between Britain and Sweden’s development-finance arms and the Zambian National Pension Scheme Authority. “Zambia’s SME sector holds immense potential to drive inclusive growth and create jobs, but the right kind of capital remains elusive,” British International Investments Chief Executive Officer Leslie Maasdorp said. SMEs generate more than 70% of Zambia’s gross domestic product and 88% of employment.

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LATEST TRENDS

Currency

1 USD = 23.00 ZMW

30-day average = 25.60 ZMW

Volatility (last 30 days) = 1.00%

LONG READS

Zambia’s first critical minerals guide supports the country’s potential in global clean energy transition - (BGS, 18.07.25)

Zambia's Long Term Fiscal Stabilisation Will Support Investment, But Risks Abound – (Fitch Ratings, 24.07.25)

UPCOMING EVENTS

11 August — World Conference on Financial Accounting — Kitwe, 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. To stay up to date follow us on social media:

Zambia Investor Briefing June

INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY) - BACKCHAT LIVE PANEL ANNOUNCED

Join us at the Invest Zambia International Conference on 17 July for a special live recording of BackChat!

Host Choolwe Chibomba and a panel of public and private sector experts, including:

Kakenenwa Muyangwa: CEO of ZCCM-IH,

Chipokota Mwanawasa: Chief Advisor to the President of Zambia,

Wezi Gondwe: Managing Director of Africa Greenco,

Jonny Velloza: CEO of Kobaloni Energu,

Kathutshelo Mapasa: Head of Africa at Appian Capital Advisory

Choolwe and the panel will be discussing 'How Can Zambian Mining Power the Green Energy Revolution?'

Get your tickets now at http://zda.org.zm/izic and join our live audience for a chance to participate in the Q&A.

OVERVIEW

⛏️ MINING: First Quantum Minerals (FQM) contributed over $2.6 billion to Zambia’s economy in 2024 through its operations at the Trident and Kansanshi mines. All mines in the Copperbelt are reporting increased production, according to Elisha Matambo, Minister of Copperbelt Province. Meanwhile, President Hichilema officiated the unveiling of JCHX Mining, a Chinese-based mining services firm, as the new strategic investor in Lubambe Copper Mines.

⚡️ ENERGY: Zambia’s Energy Regulation Board (ERB) announced further reductions in fuel pump prices. The Copperbelt Energy Corporation (CEC) has made history as the first company listed on the Lusaka Securities Exchange (LuSE) to achieve a market capitalisation of over $1 billion. The Sustainable Energy Fund for Africa (SEFA) has committed $8 million toward a $26.5 million financing package to support the 32 MWp Ilute Solar Project. Globeleq has entered Zambia’s energy market, acquiring a 51% stake in Lunsemfwa Hydro Power Company (LHPC) from Norfund.

🚚 TRADE: In a concerted effort to diversify Zambia’s economy, President Hichilema’s government is in discussions with carmakers to attract investment from manufacturers of electric vehicle components into the country.

📈 INVESTMENT LANDSCAPE: Finance and National Planning Minister Situmbeko Musokotwane announced that Zambia’s economy is expected to expand by at least 6% as the continent’s second-largest copper producer reaps the benefits of improved rainfall and higher metal production. A bumper maize harvest, late in May, has led to inflation easing to an 11-month low.

A CLOSER LOOK

Mining Developments

Canada-listed First Quantum Minerals contributed over $2.6 billion to Zambia’s economy in 2024 through its operations at the Trident and Kansanshi mines in North-Western Province, according to the company’s Global Tax Transparency and Economic Contributions Report, released last month. The report shows that FQM paid $650 million in taxes, spent $1.75 billion on local procurement, disbursed $236 million in wages to local employees, and invested $13 million in community development initiatives. The two mines produced 402,000 tonnes of copper last year, and the company currently employs over 11,000 people in Zambia, supporting over 2,000 local suppliers.

All mines in the Copperbelt are reporting increased production, according to Elisha Matambo, Minister of Copperbelt Province. Mopani Copper Mines, which owns the Nkana and Mufulira mines in Zambia's Copperbelt region, aims to produce 300,000 metric tonnes per year at its maximum production capacity. Minister Matambo relayed to the EU Ambassador to Zambia that this production would “contribute to the three million metric tonnes which we (as a country) are aiming to achieve by 2030.” Mining houses, including KCM, Mimbula and Lubambe, have also reported an increase in copper production.

Meanwhile, President Hichilema officiated the unveiling of JCHX Mining, a Chinese-based mining services firm, as the new strategic investor in Lubambe Copper Mines. JCHX’s investment is expected to revitalise operations at the site, particularly the Lubambe deep shaft and to inject both capital and technical expertise. The partnership aligns with the New Dawn administration’s focus on revitalising key infrastructure projects, which are expected to attract foreign investment and create high-quality jobs in the Copperbelt. 

In other mining news, diversified metals producer, Jubilee Metals Group, has successfully completed extensive processing trials at its Roan concentrator in Zambia’s Copperbelt. CEO Leon Coetzer announced that the results of these trials “have affirmed Roan's unique capabilities to process transitional copper reefs, which are available in vast quantities both at surface and in near-surface mining operations.” Jubilee notes that the combined Roan and Munkoyo high-grade concentrations are expected to produce 288 tons per month of copper units in June, increasing to 400 tons per month by August and between 500 tons and 550 tons per month by October. 

Energy

At the start of the month, Zambia’s Energy Regulation Board announced further reductions in fuel pump prices. Diesel decreased from K27.38 to K25.12 per litre, petrol dropped from K32.14 to K31.36 per litre, and kerosene decreased from K26.88 to K24.79 per litre. Following the announcement, energy expert Johnstone Chikwanda said that consumers of petroleum products in the country are likely to save at least one billion Kwacha from sustained reductions in pump prices over the last three months. The reductions in price, resulting from concerted government efforts to increase grid capacity, have been broadly praised as they ease pressure and improve household purchasing power.

In a landmark achievement for Zambia’s capital markets and energy sector, the Copperbelt Energy Corporation has made history as the first company listed on the Lusaka Securities Exchange to achieve a market capitalisation of over $1 billion. Verona Nkolola, CEC’s head of Corporate Communications, announced the milestone, which followed a 6.19% increase in the company’s share price, bringing 2025’s total growth to over 27%. LuSE Chief Executive Officer Nicholas Kabaso praised the development as a turning point for Zambia’s capital markets, expressing his confidence in capital markets would as an anchor for Zambia’s sustainable economic development.

The Sustainable Energy Fund for Africa, managed by the African Development Bank (AfDB), has committed $8 million toward a $26.5 million financing package to support the 32 MWp Ilute Solar Project, located near Sesheke. The plant, developed under a market-based Power Purchase Agreement with regional power trader GreenCo, will supply electricity via the Southern African Power Pool. The project avoids sovereign guarantees, easing the burden on Zambia’s public finances, and is seen as a replicable model for regional energy integration and private-sector investment.

At the same time, Globeleq has entered Zambia’s energy market, acquiring a 51% stake in Lunsemfwa Hydro Power Company from Norfund. LHPC, headquartered in Kabwe, Zambia’s Central Province, operates two hydroelectric plants totalling 56 MW and is currently developing a 20 MW solar project. The company supplies power to ZESCO and private clients, and holds a trading license with the Southern African Power Pool. The investment marks Globeleq’s first hydropower investment in Africa and forms part of the company's broader renewable energy expansion in Zambia, where it plans to build over 400 MW of renewable capacity, including solar, wind, and battery storage projects.

Trade

In a concerted effort to diversify Zambia’s economy, President Hichilema’s government is in discussions with carmakers to attract investment from manufacturers of electric vehicle components into the country. Finance Minister Musokotwane highlighted Zambia’s proactive approach during the Bloomberg Africa Business Media Innovators conference in Livingstone, explaining that the government has been engaging with international automakers, especially during recent visits to Germany. “We have been talking, even last week when I was in Germany, telling these companies to please consider the manufacture of some of your electric-vehicle components in Zambia,” said the finance minister as he urged EV manufacturers to utilise the country’s expansive copper resources to help develop electric vehicle engines. He added that these components could then be shipped to existing factories in South Africa, which currently exports EVs globally, creating a hub for EV components manufacturing in the region.

Investment Landscape

Earlier this month, Finance and National Planning Minister Situmbeko Musokotwane announced that Zambia’s economy is expected to expand by at least 6% as the continent’s second-largest copper producer reaps the benefits of improved rainfall and higher metal production. Growth will accelerate to the highest level since 2021, added Situmbeko Musokotwane during the interview in Livingstone. Zambia’s economy grew by about 4% in 2024, and inflation has started to slow. Zambia is Africa’s second-best performer against the dollar this year, after a sharp mid-month rally, and it’s expected to appreciate by a further 11% in 2025.

A bumper maize harvest, late in May, has led to inflation easing to an 11-month low. Consumer prices rose by 15.3% compared with 16.5% in April, Zambia’s Chief Statistician Chola Daka told reporters in Lusaka. Corn output is expected to more than double to a record 3.66 million tons in 2025, compared to the previous year, which will help ease pressure on food prices. Food inflation, which had begun decelerating for the first time in more than a year in March, slowed to 17.9% in May, compared with 18.7% in the previous month. Finance Minister Situmbeko Musokotwane hinted that inflation is expected to return to single digits this year.

Do you have a news story you would like included in the next briefing? Click here to email us.

LATEST TRENDS

Currency

1 USD = 23.62 ZMW

30-day average = 25.06 ZMW

Volatility (last 30 days) = 1.09%

LONG READS

Bond Traders May Have Found the Next Greece - (Bloomberg, 25.06.25)

Empower small businesses with knowledge- ignite Zambia’s clean energy future – (International Labour Organisation, 26.05.25)

A self-reliance revolution should be Africa’s answer to aid reduction – (London School of Economics, 30.05.25)

UPCOMING EVENTS

2 July — The Africa Debate  — London, UK

2-8 July — Zambia International Trade Fair — Ndola, Zambia

2-3 July—Mining on Top Africa (MOTA) — Paris, France

3 July — Digital Finance Africa — Cape Town, SA

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. To stay up to date follow us on social media:

Zambia Investor Briefing May 2025

OVERVIEW

⛏️ MINING: Vedanta Resources is actively considering listing its Zambian copper unit to raise investment funds. Gemfields Group announced that it will resume open-pit mining at its 75% owned Kagem emerald mine in Zambia, ending a 4-month pause. Midnight Sun Mining Corporation told stakeholders that it is making steady progress on its Phase 1 exploration campaign for 2025 at the Solwezi project. Zambia’s Minister for Mines, Paul Kabuswe, announced that copper production increased by 30% compared to the previous year in the first quarter of 2025, reaching approximately 224,000 metric tons.

⚡️ ENERGY: Zambia’s Energy Regulation Board (ERB) has approved the $270-million Kalumbila-Kolwezi Interconnector Project. The Zambezi River Authority, a joint venture between Zambia and Zimbabwe which maintains the Kariba Dam complex, has increased its efforts to secure investment for the Bakota Gorge hydropower project. The Chisamba solar power plant, a major private project in Zambia with a $71.5 million investment, has reached 91% completion. The European Union has announced a funding package of €500 million to support the construction and maintenance of Zambian energy infrastructure.

🚚 TRADE: Namibia has gifted Zambia a piece of land near the Walvis Bay Port. This land will be used to build a dry port where goods can be stored and moved. Africa Finance Corporation (AFC) president Samaila Zubairu said the Lobito Corridor project would reach financial close towards the end of 2026.

📈 INVESTMENT LANDSCAPE: The IMF’s most recent mission to Zambia concluded earlier this month. Discussions focused on Zambia’s recovery, economic performance, and policies, particularly under the Extended Credit Facility (ECF) arrangement. Zambia signed a bilateral agreement with EXIM Bank of India to restructure $335 million of Zambia’s debt.

A CLOSER LOOK

Mining Developments: 

Vedanta Resources is actively considering listing its Zambian copper unit to raise investment funds, CFO Ajay Goel told Bloomberg. The company, controlled by Indian billionaire Anil Agarwal, regained control of Konkola Copper Mines (KCM) last year after Zambia's government had triggered its provisional liquidation five years earlier due to disputes over expansion plans and tax payments. Vedanta has committed to investing $1 billion in the operation as part of securing its return. According to reports, the Zambian copper mining unit has hired Rand Merchant Bank to help raise the debt financing for the expansion of its operations in the country. 

Gemfields Group announced that it will resume open-pit mining at its 75% owned Kagem emerald mine in Zambia, ending a 4-month pause triggered by weak market prices and cost-cutting measures. Kagem suspended all mining from January 1 to focus on processing ore from Kagem’s significant ore stockpile using the operation’s upgraded processing plant. Now, though, after Kagem’s recent auction results have increased management confidence in the current emerald market, and the decision has been made to recover premium emeralds for Kagem’s future higher-quality auctions.

Midnight Sun Mining Corporation told stakeholders that it is making steady progress on its Phase 1 exploration campaign for 2025 at the Solwezi project in Zambia, with work underway across all three of its priority targets. Drilling at the Kazhiba sulphide copper target is expected to begin by the end of the week. “We believe these targets have the potential to evolve into world-class copper discoveries,” said Midnight Sun CEO Al Fabbro. “This marks the first time our targets are being explored with such a rigorous and comprehensive methodology.”

Earlier in the month, Zambia’s Minister for Mines, Paul Kabuswe, announced that copper production increased by 30% compared to the previous year in the first quarter of 2025, reaching approximately 224,000 metric tons from around 173,000 metric tons in the first quarter of 2024. The boost is a positive step towards Zambia’s goal of 1 million tons a year by the end of 2025. Kabuswe noted in an accompanying statement that higher production by two companies in particular, Konkola Copper Mines and Mopani Copper Mines, contributed to the increased overall output.

Energy:

Zambia’s Energy Regulation Board (ERB) has approved the $270-million Kalumbila-Kolwezi Interconnector Project, a 200-kilometre high-voltage transmission line linking the country’s North-Western Province to the DRC. The ERB has described the project as a “major step toward strengthening regional power trade and advancing the government’s goal of attracting private sector investment in energy infrastructure”. The transmission line will connect to a substation at First Quantum Minerals' (FQM) Sentinel mine property in Kalumbila and was approved alongside two other solar and battery installations. 

Meanwhile, the Zambezi River Authority, a joint venture between Zambia and Zimbabwe which maintains the Kariba Dam complex, has increased its efforts to secure investment for the Bakota Gorge hydropower project. The Authority has formed a team to seek investment in the proposed 2,400 megawatt facility near Victoria Falls, according to CEO Munyaradzi Munodawafa. Potential plans being considered in efforts to bolder Kariba’s capacity in the face of reduced rainfall due to climate change include drawing up to 16 trillion gallons of water annually from the Congo River. 

The Chisamba solar power plant, a major private project in Zambia with a $71.5 million investment, has reached 91% completion. The Project, which will have an installed capacity of 100 megawatts (MW), highlights the increasing involvement of the private sector in Zambia’s energy production. Construction, which began in June 2024, is expected to last about two years. Upon completion, all electricity generated will be purchased by GreenCo Power Services to directly meet the specific needs of First Quantum Minerals, freeing up additional capacity for Zambian people. The solar plant is set to bring immediate local economic benefits, including over 200 direct jobs during its construction.

The European Union has announced a funding package of €500 million to support the construction and maintenance of Zambian energy infrastructure. This is part of the EU’s Global Gateway strategy, which aims to foster global connectivity, promote inclusive growth, and facilitate multilateral cooperation to address the challenges of climate change. A statement issued by the Ministry of Labour and Social Security explained that grants will “boost the country’s sustainable energy future through the rehabilitation of the Kariba Dam, with the recent investment being in the Zambia-Tanzania Interconnector, which will enhance regional power trade.”

Trade:

Namibia has gifted Zambia a piece of land near the Walvis Bay Port. This land will be used to build a dry port where goods can be stored and moved, making it easier and cheaper for Zambia to trade through the Atlantic Ocean. The gift was confirmed during President Hakainde Hichilema’s meeting with Namibian President Netumbo Nandi-Ndaitwah in Lusaka, during her visit to the country. In a statement posted to his Facebook page, President Hichilema commented, “Namibia fully aligns with this realization and Zambia’s vision of a land-linked economy, notably through the Walvis Bay–Ndola–Lubumbashi Development Corridor, which is key to enhancing regional trade and access to the Atlantic Ocean.” 

In an interview earlier this month, Africa Finance Corporation (AFC) president Samaila Zubairu said the Lobito Corridor project would reach financial close towards the end of 2026, adding that the “initial cost estimates are promising” with “significant interest from multiple parties.” Various iterations of the feasibility study are complete, and the AFC said it is close to determining the overall project cost, and has commenced demining activities along some sections of the route. The US-backed Lobito Corridor is poised to become one of Africa’s most strategic transport and trade routes, unlocking billions in value across the continent. 

Investment Landscape:

The IMF’s most recent mission to Zambia concluded earlier this month. Discussions focused on Zambia’s recovery, economic performance, and policies, particularly under the Extended Credit Facility (ECF) arrangement. An IMF press release explained that “Zambia’s economy has shown encouraging resilience despite economic shocks. Growth is expected to strengthen in 2025, supported by an anticipated rebound in agriculture and a pickup in mining activity.” The statement comes weeks after the IMF recognised Zambia as one of the leading nations in its 2025 Regional Economic Outlook for Sub-Saharan Africa for its remarkable progress in debt restructuring.

Zambia signed a bilateral agreement with EXIM Bank of India to restructure $335 million of Zambia’s debt. The deal covered $320 million owed by the central government and $15 million by ZESCO. Zambia’s Finance and National Planning Minister, Dr Situmbeko Musokotwane, said, “The signing of this bilateral agreement to structure the debt between the government of Zambia and the Export-Import Bank of India marks a significant milestone in Zambia’s ongoing debt restructuring efforts under the G20 common framework approach.” The restructuring is expected to lower interest rates and extend the repayment period, and ease the debt burden.  

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LATEST TRENDS

Currency

1 USD = 26.66 ZMW

30-day average = 27.28 ZMW

Volatility (last 30 days) = 0.74%

LONG READS

Interview with Ms. Mukwandi Chibesakunda, Chief Executive Officer, Zanaco - (International Banker, 22.05.25)

U.A.E. Is Pouring Money Into Africa, Seeking Resources and Power – (The New York Times, 17.05.25)

Zambia Banks on China-Backed Rail Upgrade to Boost Mining Exports – (China Global South Project, 07.05.25)

UPCOMING EVENTS

11-12 June — Infrastructure Africa — Johannesburg, SA

11-12 June — Africa Impact Summit — Accra, Ghana

17-19 June — Africa Hospitality Investment Forum — Cape Town, SA

17-20 June — Africa Energy Forum — Cape Town, SA

19 June — Africa Digital Finance Summit — London, UK

20-21 June — UK Africa Trade Expo — London, UK

23-27 June — US-Africa Business Summit — Luanda, Angola

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. To stay up to date follow us on social media:

Zambia Investor Briefing: April

CALL FOR SPEAKERS - INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY)

The Zambia Development Agency (ZDA) invites potential speakers and sponsors to apply for the inaugural Invest Zambia International Conference, which will take place from July 16 to 18 in Lusaka. 

The event is set to be the largest business forum in the country. It will bring together business leaders from around the world and Zambian government officials to showcase the huge investment opportunities in the country.

Business leaders, development experts, or commentators interested in participating in a panel session, fireside chat, or solo presentation should email info@zambiaisback.com to learn more. Please include a short professional biography and topics you would be prepared to speak on. 

Companies interested in sponsorship can also contact the same email. We offer a range of pre-set and bespoke sponsorship packages to suit a variety of budgets, helping to boost your company’s profile and reach key stakeholders.

Join us in shaping Zambia's economic future.

OVERVIEW

• MINING: Ivanhoe Mines has been granted a 7,757-square-kilometre package of new exploration licenses in Zambia’s North-Western Province. International Resources Holding (IRH) committed over $800 million to fuel Mopani Copper Mines' expansion. Canada-listed First Quantum Minerals (FQM) signed a strategic investment agreement with Prospect Resources, outlining the acquisition of a 15% stake in the Australian electrification metals developer. Vedanta Resources was reportedly exploring a US public listing for its Zambian unit, Konkola Copper Mines (KCM), to raise approximately $ 1 billion for mine development.

• FDI: The Italian Government committed $270 million to aid the development of the Lobito Corridor project.

• ENERGY: In a major policy reform, Zambia’s Ministry of Energy cut the approval timeline for solar energy project applications from over six months to 48 hours. The government officially launched the implementation phase of the Zambia-Tanzania Interconnector project.

• INVESTMENT LANDSCAPE: The International Monetary Fund (IMF) recognised Zambia as one of the leading nations in its 2025 Regional Economic Outlook for Sub-Saharan Africa. Zambia’s annual consumer-price inflation is set to dip below 8% by the end of 2025, announced Secretary to the Treasury, Felix Nkulukusa. Zambia’s economy grew more than expected last year, outperforming projections from the government and the IMF. Finance Minister Situmbeko Musokotwane announced that Zambia aims to finalise debt restructuring deals by September.

A CLOSER LOOK

Mining Developments                                                                                                                       

Ivanhoe Mines has been granted a 7,757-square-kilometre package of new exploration licenses in Zambia’s North-Western Province. Strategically located, the licenses are expected to facilitate expanded exploration and support a potential extension of the Central African Copperbelt. Ivanhoe founder and executive co-chairman Robert Friedland hailed the development as an “exciting new chapter,” highlighting the Zambian government's “proactive support and collaborative approach.”

Meanwhile, International Resources Holding (IRH) committed over $800 million to fuel Mopani Copper Mines' expansion. The investment is part of a broader $1 billion initiative to upgrade infrastructure, enhance operational efficiencies, and create new opportunities for local suppliers and contractors. Mopani Copper Mines CEO Charles Sakanya confirmed the substantial financial commitment, emphasising its importance in modernising operations and driving future growth. This latest investment furthers Mopani’s position as a central player in Zambia’s economic development.

Canada-listed First Quantum Minerals signed a strategic investment agreement with Prospect Resources, outlining the acquisition of a 15% stake in the Australian electrification metals developer. The $9.7 million investment is set to deepen its presence in Zambia’s Copperbelt. Quantum’s new investment will help to accelerate exploration at Prospect’s Mumbezhi mine, which announced a maiden mineral resource estimate of 514,600 tonnes of copper last month. First Quantum’s Zambia director, Anthony Mukutuma, said, “This investment in Prospect supports our exploration strategy in Zambia and signals our continued commitment to the country.”

Earlier this month, Vedanta Resources was reportedly exploring a US public listing for its Zambian unit, Konkola Copper Mines, to raise approximately $1 billion for mine development. Vedanta, owned by Indian billionaire Anil Agarwal, has hired Barclays and Citigroup to advise on plans for the initial public offering. A spokesperson for Vedanta Resources declined to comment specifically on the public listing. Still, Vedanta has confirmed it wants to raise capital as part of its plans to gradually increase copper output to 300,000 metric tons per year over the next few years.

In other mining news, the Kashime copper mine project has received authorisation to start its mining operations this month. Zambian-owned Mimosa Resources is primarily developing the project, while First Quantum Minerals (FQM) has committed to financing it and conducting further exploration within the licence area. Mkushi Mayor Melson Chilemu welcomed the new development, thanking “His Excellency the President of Zambia, Mr Hakainde Hichilema, for once again hearing our cry. This authorisation, achieved after over 15 years of struggle, is a testament to perseverance.”

FDI

The Italian Government committed $270 million to aid the development of the Lobito Corridor project, a major infrastructure initiative linking Zambia, Angola, and the Democratic Republic of Congo. In addition to its primary investment, the Italian government will provide the Africa Finance Corporation with an additional $50 million to support the implementation of the Corridor’s railway. Central to the project is a 1,300km railway line, which is set to create jobs, enhance regional trade, and facilitate access to global markets. 

Energy

In a major policy reform, Zambia’s Ministry of Energy cut the approval timeline for solar energy project applications from over six months to 48 hours. The move is aimed at attracting swift private sector participation and fast-tracking the country’s renewable energy transition. The initiative also supports the Presidential Directive to add 1,000 MW of solar energy to Zambia’s national grid by the end of 2025. This latest announcement is a part of the government’s broader efforts to make solar ventures commercially viable, appealing to domestic and international investors.

At the same time, the government officially launched the implementation phase of the Zambia-Tanzania Interconnector project. The $320 million project to connect Zambia and Tanzania's power supplies is being financed by the World Bank, the European Union and Britain. Work on the 620km 400kv cross-border electricity initiative will resume, 5 years after progress was last stalled, in 2020. The power line will link Zambia to East Africa - a move expected to help create one of the largest energy markets in the world

Investment Landscape

The International Monetary Fund (IMF) recognised Zambia as one of the leading nations in its 2025 Regional Economic Outlook for Sub-Saharan Africa, for its remarkable progress in debt restructuring. According to the Fund, Zambia’s progress in restructuring its debt has stabilised its financial standing and sent positive signals to global investors. The report notes that Zambia is among a select group of Sub-Saharan African countries that have made substantial advancements in this area, positioning it as a key player in the region’s economic landscape. The report also projects that Zambia’s GDP will grow by 6.2% in 2025, compared to 3.8% for the continent as a whole.

Domestically, Zambia’s annual consumer-price inflation is set to dip below 8% by the end of 2025, announced Secretary to the Treasury, Felix Nkulukusa. A drop to 8% would be the first time inflation has fallen within the central bank’s target range since 2019. Price growth reached 25% before President Hichilema became President. 

News of the price cooling adds to a spate of positive news for the Zambian investment landscape. Zambia’s economy grew more than expected last year, outperforming projections from the government and the International Monetary Fund (IMF). A surge in fourth-quarter output helped push annual economic growth to an estimated 4%, according to the Zambia Statistics Agency (ZAMSTATS). Furthermore, a steady reduction in Zambia’s debt burden lifted Moody’s outlook for the country’s external debt to positive in mid-April, signalling it may upgrade its Caa2 credit rating.

Finally, Finance Minister Situmbeko Musokotwane announced that Zambia aims to finalise debt restructuring deals by September, a major step in resolving the years-long effort. The country has already concluded deals or reached agreements in principle on approximately 90% of the loans up for treatment, including with key creditors such as France and Saudi Arabia. Once completed, the restructuring is expected to deliver substantial debt service relief, unlock access to new financing, and help restore financial stability.

LONG READS

Enhancing Conservation Through Data-Driven Decision-Making in Zambia - (World Bank, 10.04.25)

Zambia's inflation rate is projected to fall below 8% - (Business Insider Africa, 18.04.25)

Sub-Saharan Africa Outlook - (IMF, 25.04.25)

UPCOMING EVENTS

12-13 May — Africa CEO Forum — Abidjan, Côte d'Ivoire

13-14 May — Invest in Africa Energy — Paris, France

13-15 May — Africa's Premier Global Upstream Conference — London, UK

14-16 May — Invest in Zambia International Conference — Lusaka, Zambia

26-30 May — African Development Bank Group's Annual Meetings — Abidjan, Côte d'Ivoire

Zambia Investor Briefing: March

CALL FOR SPEAKERS - INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY)

The Zambia Development Agency (ZDA) invites potential speakers and sponsors to apply for the inaugural Invest Zambia International Conference, which will take place from July 16 to 18 in Lusaka. 

The event is set to be the largest business forum in the country. It will bring together business leaders from around the world and Zambian government officials to showcase the huge investment opportunities in the country.

Business leaders, development experts, or commentators interested in participating in a panel session, fireside chat, or solo presentation should email info@zambiaisback.com to learn more. Please include a short professional biography and topics you would be prepared to speak on. 

Companies interested in sponsorship can also contact the same email. We offer a range of pre-set and bespoke sponsorship packages to suit a variety of budgets, helping to boost your company’s profile and reach key stakeholders.

Join us in shaping Zambia's economic future.

OVERVIEW

• MINING: Prospect Resources has been granted two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in northwest Zambia. Critical minerals royalty company Ecora Resources told investors it had signed a $50 million streaming deal on Moxico Resources’ flagship Mimbula copper mine. India’s Mines Secretary said the country is exploring mining critical minerals in Zambia to secure raw materials key to energy transition technologies. Patriot Lithium’s exploration team discovered multiple high-grade copper occurrences across its license area in Zambia’s Copper Belt.

• ENERGY: Zambia’s Copperbelt Energy Corp. (CEC) announced that it will invest $500 million over the next two years to increase its solar power output and double the capacity of a power transmission line to the Democratic Republic of Congo. ZESCO has signed an Inter-Utility Memorandum of Understanding (IUMoU) with Electricidade De Mozambique (EDM) to increase transmission capacity within the Southern Africa Power Pool. Botswana and Zambia committed to establishing a high-voltage cross-border transmission line.

• TECHNOLOGY & AGRICULTURE: Flutterwave, Africa’s leading payments technology company, has obtained a Payment System License in Zambia. German pharmaceutical, biotechnology and crop science company Bayer AG opened a new $35 million maize seed facility in Kabwe.

• RAIL: The China Civil Engineering Construction Corporation (CCECC) announced plans to invest $1.4 billion to upgrade the Tanzania-Zambia railway (TAZARA).

• ECONOMIC RELATIONS: Zambia reaffirmed its commitment to deepening diplomatic and economic relations with France, and Foreign Affairs Minister Sylvia Masebo declared the country open for foreign investment. Infrastructure, Housing, and Urban Development Minister Charles Milupi stressed the importance of Zambia's Private-Public Partnership (PPP) model for infrastructure development. The Canadian Government said Zambia is one of Africa's most attractive investment destinations.

A CLOSER LOOK

Mining Developments                                                                                                                       

Prospect Resources has been granted two large-scale mining licences (LMLs) for its flagship Mumbezhi copper project in northwest Zambia. According to Australia-listed mineral explorer and developer, the licenses, which are renewable for successive 25-year periods, represent a significant de-risking of the project and provide "a strong legal and permitting framework" from which to advance project development and financing. With a substantial maiden mineral resource estimate of 107 million tonnes grading 0.5% copper for 515,000 tonnes, Mumbezhi is poised to support Zambia’s goal of producing three million tonnes per annum by 2030. 

Critical minerals royalty company Ecora Resources told investors it had signed a $50 million streaming deal on Moxico Resources’ flagship Mimbula copper mine in Zambia. Moxico Resources will use the deal's proceeds to help implement phase II of the Mine’s expansion, increasing annual output from 14,000 tonnes in 2024 to 56,000 tonnes by mid-2026. The stream will cover Moxico-owned Mimbula’s existing reserve-based life of mine (LOM) of 11 years, with the possibility of further extension. Ecora CEO Marc Bishop Lafleche said: “Mimbula has everything we look for in an investment; it is a high-quality ore body, with low operating costs and with an exceptional management team.”

 In other mining news, India’s Mines Secretary said the country is exploring the mining of critical minerals in Zambia as the world’s fastest-growing economy aims to secure raw materials key to energy transition technologies. The Zambian government recently agreed to give India 9,000 square kilometres for cobalt and copper exploration. In January this year, New Dheli approved 163 billion rupees ($1.88 billion) to develop the critical minerals sector.

Last week, Patriot Lithium’s exploration team discovered multiple high-grade copper occurrences across its license area in Zambia’s Copper Belt. The new targets, identified through ongoing field mapping, include promising copper deposits with ultra-high grade readings. The company’s discoveries represent a potential game-changer in providing growth beyond its lithium assets and enhancing its potential to become a significant player in Zambia’s copper sector. The ultra-high copper grades of up to 33% are extremely rare in the industry, where grades of 1-2% are considered economically viable. 

Energy

Zambia’s Copperbelt Energy Corp. (CEC) announced that it will invest $500 million over the next two years to increase its solar power output and double the capacity of a power transmission line to the Democratic Republic of Congo. CEC’s Chief Financial Officer, Mutale Mukuka,  the company’s strategy to attract external investment to finance the projects. "We'll invest quite heavily in transmission projects to make sure that power from [new projects] can reach consumers," said Mukuka. CEC plans to bolster the power transmission line between Zambia and Congo to 550 megawatts (MW) from 250 MW, enhancing regional energy security and supporting growing industrial demand in both countries.

 The Zambia Electricity Supply Corporation Limited (Zesco) has signed an Inter-Utility Memorandum of Understanding (IUMoU) with Electricidade De Mozambique (EDM) to increase transmission capacity within the Southern Africa Power Pool. The MoU is set to enhance regional energy security by allowing cross-border electricity trading to support growth in both countries. This latest interconnector agreement comes just weeks after Botswana and Zambia committed to establishing a high-voltage cross-border transmission line, in yet another boost to energy security and electricity trade within the Southern African Development Community. 

Technology & Agriculture

Flutterwave, Africa’s leading payments technology company, has obtained a Payment System License in Zambia. The license will allow Flutterwave to offer affordable and secure mobile money services in a move which promises to strengthen Zambia’s financial inclusion and facilitate local and international trade with cutting-edge payment solutions. Zambian businesses will now be able to process single and bulk payouts to their partners and employees, gaining access to new growth opportunities in the country’s fast-evolving digital economy. “Zambia is a market with enormous potential for growth and innovation,” said Olugbenga ‘GB’ Agboola, Flutterwave’s Founder & CEO. Flutterwave’s service offers a reliable gateway to process local payments for international companies eyeing investment in Zambia. The company plans to work closely with the Bank of Zambia to foster financial innovation and drive economic growth through digital payments.

German pharmaceutical, biotechnology and crop science company Bayer AG opened a new $35 million maize seed facility in Kabwe earlier this month. The facility will triple the company’s existing production capacity this year. The new site will create 80 permanent jobs and over 100 seasonal positions, generating around 15,000 seasonal on-farm jobs through field operations and contract growers. Bill Anderson, Bayer’s CEO, emphasised that alleviating severe food insecurity is a key company objective: “With our new seed facility in Zambia, we want to make a meaningful contribution to that crucial goal.”

Rail

The China Civil Engineering Construction Corporation (CCECC) announced plans to invest $1.4 billion to upgrade the Tanzania-Zambia railway (TAZARA), improving a key route for regional copper exports. $1 billion of CCECC's investment will go towards rehabilitating the TAZARA's rail tracks, while the balance will be used to purchase 32 new locomotives and 762 new wagons to boost capacity. TAZARA officials have said the investment will strengthen trade between the two countries, improve logistics for the mining sector, and reduce transportation costs for businesses and passengers. This latest development marks the most significant upgrade to the railway since its construction in the 1970s.

Economic Relations

Zambia reaffirmed its commitment to deepening diplomatic and economic relations with France, with Acting Foreign Affairs Minister Sylvia Masebo declaring the country open for foreign investment. Signing a Declaration of Intent to enhance bilateral cooperation earlier this month, Masebo assured that French businesses can thrive in Zambia’s economy. The foreign affairs minister told reporters that a delegation of French companies will visit Zambia in April to explore investment opportunities in energy, agriculture, and infrastructure.

 This comes as Infrastructure, Housing, and Urban Development Minister Charles Milupi stressed the importance of Zambia's Private-Public Partnership (PPP) model for infrastructure development at the 2025 Transforming Transport Conference in Washington DC. The model aims to enhance the country's trade potential on the global stage while it pursues an ambitious infrastructure development agenda to support the socio-economic transformation of the country and create much-needed jobs for Zambians, particularly the youth. 

Finally, the Canadian Government said Zambia is one of Africa's most attractive investment destinations. Parliamentary Secretary to Canada’s Minister of Foreign Affairs, Rob Oliphant, cited political stability, good governance, and strong economic potential as attributes that make Zambia a favoured investment prospect. The Parliamentary Secretary proposed a Canadian trade mission to Zambia to explore further investment opportunities after hearing about the recently launched high-resolution geophysical survey to identify mineral-rich areas for exploration.

LONG READS

Zambia's mining law overhaul - (Dentons, 18.03.25)

The railway that China hopes will take on the US in Africa - (FinancialTimes 12.03.25)

Emerging technology policies and democracy in Africa: South Africa, Kenya, Nigeria, Ghana, and Zambia in focus – (Atlantic Council, 10.03.25)

China Faces PR Challenge in Zambia – (Foreign Policy, 18.03.25) 

UPCOMING EVENTS

8-9 April — Pension Funds & Alternative Investments Africa Conference 2025 –- Mauritius

9-10 April — Africa Tourism Investment Conference –- Cape Town, South Africa

9-11 April — WTM Africa — Cape Town, South Africa

24 April — Africa Fintech Summit — WashingtonDC, US

24 April — Africa Energy Summit — London, UK

28-30 April — Proptechand Digital Transformation — Accra, Ghana

29-30 April — Invest in Africa Summit — The Hague, Netherlands

28 April – 2 May — AVCA Conference & VC Summit — Nigeria

Zambia Investor Briefing: February

CALL FOR SPEAKERS - INVEST ZAMBIA INTERNATIONAL CONFERENCE (16 - 18 JULY)

The Zambia Development Agency (ZDA) invites potential speakers and sponsors to apply for the inaugural Invest Zambia International Conference, which will take place from July 16 to 18 in Lusaka. 

The event is set to be the largest business forum in the country. It will bring together business leaders from around the world and Zambian government officials to showcase the huge investment opportunities in the country.

Business leaders, development experts, or commentators interested in participating in a panel session, fireside chat, or solo presentation should email info@zambiaisback.com to learn more. Please include a short professional biography and topics you would be prepared to speak on. 

Companies interested in sponsorship can also contact the same email. We offer a range of pre-set and bespoke sponsorship packages to suit a variety of budgets, helping to boost your company’s profile and reach key stakeholders.

Join us in shaping Zambia's economic future.

OVERVIEW

• MINING: Vedanta Resources announced that it is trying to raise around $1 billion in debt financing to fund the development of its Konkola Copper Mines (KCM). Gold and copper mining company Barrick has signed a memorandum of understanding (MoU) to boost exploration and mining. Jubilee Metals announced that it had secured a high-grade copper resource to support the restart of its Roan operations in Zambia. First Quantum Minerals (FQM) reinforced its commitment to supporting the government’s vision of producing three million tonnes of copper annually. Giant Mineral Fields (GMF) has formed a strategic partnership with African Holdings Limited (AHL) to explore three Copperbelt license areas.

• ENERGY: Government-owned ZESCO has signed a series of Power Purchase Agreements (PPAs) with 29 Independent Power Producers (IPPs) totalling over 332MW of new solar capacity. Solarcentury Africa Limited and the Industrial Development Corporation (IDC) have agreed to co-develop a 67 MWp solar power plant in Zambia.

• TRADE: Zambia is now ready to start trading under the African Continental Free Trade Area (AfCFTA). The government suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness in the global market. President Hichilema has been praised for his response to the recent USAID cuts.

• FDI: The Bank of Zambia raised its key interest rate by 50 basis points to 14.5%. DP World, a leading multinational logistics company, has proposed a $300 million investment to help position Zambia as a regional transport hub.

• OFFICIAL VISITS: At the beginning of the month, President Hichilema travelled to Japan at the invitation of  Japanese Prime Minister Shigeru Ishiba for a five-day working visit. President Hichilema has returned from Egypt, calling for increased trade and investment through joint public-private ventures between Egyptian and Zambian businesses.

A CLOSER LOOK

Mining Developments                                                                                                                       

Vedanta Resources announced that it is trying to raise around $1 billion in debt financing to fund the development of its Konkola Copper Mines (KCM). The Indian company, which owns 80% of KCM, said it planned to sell at least 30% of its holding in the copper mine last year. However, Chris Griffith, head of Vedanta’s base metals unit, told reporters at the Mining Indaba conference this month: "We are in a much higher likelihood that we can raise funds from a range of financing options… we own 80% of the business, and clearly we'd prefer to continue owning 80% of the business.” Vedanta Resources is eyeing the $1 billion in funding to boost copper output at KCM to about 300,000 metric tons per year over the next five years.

Meanwhile, gold and copper mining company Barrick has signed a memorandum of understanding (MoU) with Industrial Resources Limited (IRL), a subsidiary of the Zambian government’s Industrial Development Corporation. The MoU, which aims to boost exploration and mining, will help unlock the country’s maximum mineral potential amid Barrick’s own Lumwana Super Pit copper expansion. Mark Bristow, Barrick's CEO, emphasised the partnership's significance, noting that the collaboration aligns perfectly with Zambia's national economic development strategies.

In other mining news, the London-listed Jubilee Metals announced that it had secured a high-grade copper resource to support the restart of its Roan operations in Zambia after implementing a new power agreement last month. The Company has successfully commenced processing the new high-grade copper feed material at its Roan concentrator facility, which has a processing capacity of 45,000 tonnes per month.

First Quantum Minerals (FQM) reinforced its commitment to supporting the government’s vision of producing three million tonnes of copper annually at the Africa Mining Indaba this month. The company’s $1.25 billion investment in its S3 expansion project at the Kansanshi mine in Solwezi is expected to increase ore processing capacity to 55 million tonnes annually and extend the life of the mine by more than 20 years. FQM Director of Corporate Affairs John Gladston said, “First Quantum Minerals is a growth partner for Zambia’s present and future,” and called on the Government “to maintain regulatory regime stability so more large-scale mines like Kansanshi and Trident can come online and contribute to the 3 million tonne goal.”

Giant Mineral Fields (GMF) has formed a strategic partnership with African Holdings Limited (AHL) to explore three license areas in Zambia's Central African Copperbelt to deliver new sources of copper. The initiative aims to leverage Zambia’s untapped mineral resources amidst a global copper shortfall projected to reach 10 million tonnes annually by 2034. The licenses in key areas of the Lufilian Arc will undergo extensive geochemical and geophysical surveys and drilling to assess their potential. Trust Hatuma, CEO of Curprite Geo-services Limited, said, “This agreement with Giant Mineral Fields underscores the global interest in Zambia’s revitalised mining sector.

Energy

Government-owned ZESCO has signed a series of Power Purchase Agreements (PPAs) with 29 Independent Power Producers (IPPs) under the Micro-Generator Scheme, Presidential Solar Initiative, and Developer-Initiated IPPs, delivering over 332MW of new solar capacity. Construction is set to commence within two months and is expected to be fully operational by the end of 2025. The projects are also expected to generate hundreds of direct and indirect jobs in engineering, construction, and maintenance.

Solarcentury Africa Limited and the Industrial Development Corporation (IDC) have agreed to co-develop a 67 MW solar power plant in Zambia. Located near Chisamba in Central Province, the project will connect directly to the ZESCO backbone, enhancing the power supply and reducing the need to transfer power from the south. This initiative will primarily supply electricity to IDC's large industrial users, directly addressing Zambia's current power shortages. Jason De Carteret, CEO of Solarcentury Africa, commented, “Zambia’s urgent need for reliable power makes this project a crucial step towards energy security.”

Trade

Zambia is now ready to start trading under the African Continental Free Trade Area (AfCFTA) following the introduction of Statutory Instrument No. 94. and publishing its Provisional Schedule of Tariff Concessions (PSTC). This move allows Zambia to expand its market access beyond COMESA and SADC. The AfCFTA aims to create a single market of over 1.3 bn people with a combined GDP of approximately $3.4tn. Zambia’s Ministry of Commerce, Trade, and Industry encouraged the private sector to take advantage of this opportunity to enhance trade and to participate in line with the African Union's Agenda 2063, which aims to boost intra-Africa trade and contribute to building.

This comes as the government suspended a 15% export tax on precious stones and metals in a bid to enhance competitiveness in the global market and attract further investment. The CEO of the world-leading gemstone mining company Gemfields, Sean Gilbertson, praised the Zambian government's "decisive action" on the export tax. Gemfield-owned Kagem mine in Zambia accounts for about 25% of the supply of global rough emeralds and produced about 10 million carats of emeralds in 2024.

In other trade news, President Hichilema described the recent USAID cuts as long overdue and a wake-up call for African countries to grow their economies by enhancing bilateral trade and investment. President Trump’s January executive orders Reevaluating and Realigning US foreign aid triggered widespread alarm among aid-dependent nations like Zambia. Hichilema has been praised for his response, which reaffirmed the government’s commitment to securing alternative funding sources while strengthening economic management to safeguard vital social services.

Foreign Direct Investment (FDI)

Earlier this month, The Bank of Zambia raised its key interest rate by 50 basis points to 14.5%. Bank of Zambia Governor Dr Denny Kalyalya told reporters at The Monetary Policy Committee (MPC) quarterly meeting, “The underlying reason for doing this is to steer inflation back to the 6 to 8% target band, which is the medium-term objective and help anchor inflation expectations.” Higher emergency electricity tariffs as a result of the once-in-a-generation drought have heavily impacted inflation rates, but expected improvement in food supply and electricity generation means that the MPC’s projected balance of risks to inflation is tilted to the downside.

DP World, a leading multinational logistics company, has proposed a $300 million investment to help position Zambia as a regional transport hub. Following a meeting at State House between President Hakainde Hichilema and DP World Executive Vice President Suhail Al Banna, an initial $50 million investment was announced as part of a Public-Private Partnership (PPP) with Zamcargo Limited. The partnership is expected to drive economic growth, making full use of Zambia’s strategic location and natural resources while significantly enhancing the nation’s trade infrastructure. 

Official Visits:

At the beginning of the month, President Hichilema travelled to Japan at the invitation of  Japanese Prime Minister Shigeru Ishiba for a five-day working visit. The trip focused on bilateral investment and included visits to Aichi, Kyoto, and Tokyo, where the President met with high-ranking officials from prominent Japanese organisations. Notably, Toyota Motors Corporation accepted the Zambian administration’s proposal to invest in solar power generation in Zambia.

Finally, President Hichilema returned from his latest state visit to Egypt. The Zambian administration called for increased trade and investment through joint public-private ventures between Egyptian and Zambian businesses. Egypt’s President Al-Sisi expressed Egypt’s readiness to invest in the strategic Lobito Corridor project. Hichilema emphasised the importance of private sector participation in financing capital projects to ease pressure on national treasuries. The trip concluded with the signing of several MoUs focused on trade, investment, and development cooperation.

LONG READS

Race to lead Africa’s top development finance institution hots up (CNBC Africa, 31.01.25)

More than mining: leveraging critical minerals for growth in Zambia (European Council on Foreign Relations, 10.02.25)

Zambia Is Making Progress On Cost Of Living (International Business News, 20.02.25)

Unlocking Zambia's carbon credit market (Dentons, 20.02.25)

UPCOMING EVENTS

4-6 March — Africa Energy Indaba — Cape Town, South Africa

11-12 March — UN Tourism Regional Forum on Gastronomy Tourism Africa — Arusha, Tanzania

11 March — GTR Africa 2025 — Cape Town, South Africa

19-20 March — Africa Investment Exchange (AIX) — Nairobi, Kenya

19-20 March — Zambia International Mining and Energy Conference — Kitwe, Zambia

25-26 March — Bonds, Loans & ESG Capital Markets Africa — Cape Town, South Africa

Zambia Investor Briefing: January

OVERVIEW

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

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

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

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

A CLOSER LOOK

Mining Developments                                                                                                                       

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

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

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

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

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

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

Energy Projects

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

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

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

Foreign Direct Investment

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

Regional Partners

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

LONG READS

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

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

Zambia’s comparability conundrum (Financial Times, 03.01.25)

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

UPCOMING EVENTS

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

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

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

12 February — African Business Forum — London, UK

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

17 February — Africa Business Forum — Addis Ababa, Ethiopia

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

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

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

Zambia Investor Briefing: December

OVERVIEW

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

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

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

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

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

A CLOSER LOOK

Lobito Corridor

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

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

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

Foreign Direct Investment (FDI)

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

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

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

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

Energy and Technology

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

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

Other Economic Developments

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

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

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

UPCOMING EVENTS

Zambia Digital Week

Lusaka, Zambia        28-30 January

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