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