Zambian President Hakainde Hichilema came into office two years ago on a wave of international optimism and goodwill. His promises for economic growth have been held back by legacy issues, but the tide could finally turn, writes Liesl Peyper.
ANALYSTS anticipate that mining investors will flock to Zambia, still one of the biggest copper producers globally, especially since President Hakainde Hichilema came into office in August 2021 and announced a range of incentives, such as a sliding royalty rate for mines, to lure back investors.
Hichilema, or 'HH' as the investor community call him, has announced that he wants Zambia's mining sector to be the country's foremost revenue generator. He subsequently set a target to increase its copper production from 800,000 tons a year to three million tons a year in the next three years - a bold aim, especially since the Konkola and Mopani copper mines haven't resumed production yet.
But overall, Zambia's mining sector appears to be on track for renewed activity from international mining companies. In 2022, First Quantum Minerals announced $1.35bn worth of new projects in the country, while Anglo American announced a return to full-scale copper exploration after it signed a provisional joint-venture agreement with Aim-listed mining and exploration company Arc Minerals. In addition, KoBold Metals, a Californian-based metals explorer, is busy raising $200m to develop the copper reserves it recently acquired in Zambia, the Wall Street Journal reports.
