Lusaka, Zambia – Zambia is experiencing a significant economic turnaround driven by surging global demand for copper, a critical component in green technologies, artificial intelligence and defense systems. Five years after becoming Africa’s first Covid-era debt defaulter, the nation is attracting billions in investment as major world powers compete for access to its vast copper reserves.
The dramatic shift in fortunes comes as demand for copper has “exploded in recent years,” according to reports, fueled by the rapid growth of sectors reliant on the metal. This scramble for resources is exposing geopolitical rivalries, with countries including China, the United States, Canada, Europe, India, and Gulf states all vying for supply agreements. President Hakainde Hichilema announced on Monday that over $12 billion had flowed into Zambia’s copper sector since 2022, signaling a renewed confidence in the country’s economic prospects.
Zambia’s Position in the Global Copper Market
Zambia is currently Africa’s second-largest copper producer, trailing only the Democratic Republic of Congo, and ranks as the world’s eighth-largest, according to the US Geological Survey. The metal is vital to Zambia’s economy, generating approximately 15 percent of its GDP and more than 70 percent of its export earnings. Copper is essential for the production of solar panels, wind turbines, and electric vehicles, positioning Zambia as a key player in the global transition to renewable energy.
Output rose by eight percent last year, exceeding 890,000 metric tons, and the Zambian government has ambitious plans to triple production within the next decade. This growth is projected to contribute to a robust economic expansion, with the International Monetary Fund forecasting growth rates of 5.2 percent in 2025 and 5.8 percent in 2026.
Strategic Partnerships and Investment
Alongside the influx of investment, Zambia is actively pursuing strategic partnerships to enhance its mining sector and add value to its mineral resources. France and Zambia are currently exploring a collaboration aimed at boosting economic growth and fostering local value addition. French Ambassador to Zambia, H.E. Thomas Rossignol, recently stated France’s willingness to provide technical expertise, loans, and investment to support the development of Zambia’s mining industry. “France is ready to offer expertise, loans, and technical support to help Zambia develop its mining sector. We believe Zambia has tremendous potential for growth,” he said.
Zambia’s Permanent Secretary of Mines and Minerals Development, Dr. Hapenga Kabeta, welcomed the offer, emphasizing the nation’s commitment to moving beyond the export of raw minerals and instead focusing on local processing and manufacturing. “This aligns with our 8th National Development Plan, which prioritises industrialisation and economic diversification. We invite French investors to capture advantage of Zambia’s attractive investment climate and contribute to our economic growth,” Dr. Kabeta noted.
Challenges and Future Outlook
Despite the positive outlook, challenges remain. Chinese firms currently hold significant stakes in key Zambian copper mines and smelters. A recent lawsuit filed by Copperbelt farmers against Chinese-linked mining firms alleges environmental damage caused by spillage, impacting an estimated 300,000 households. This represents reportedly one of the largest environmental lawsuits in Zambia’s history.
The discussions between Zambia and France also encompass sustainable mining practices, skills development, local content enhancement, and infrastructure development. Renewable energy investment, particularly in solar and hydropower, is also being considered to support the mining sector and strengthen energy security. Zambia’s stable political environment, abundant natural resources, and strategic regional location are key factors attracting foreign investment, further bolstered by recent debt restructuring that has strengthened the economy and enabled increased investment in key sectors.
President Hichilema expressed optimism about the future, stating, “The seeds are sprouting and the harvest is coming,” as the country prepares for a nationwide geological survey to map untapped copper deposits. The success of these initiatives will be crucial in solidifying Zambia’s position as a major player in the global copper market and ensuring sustainable economic growth for the nation.
As Zambia continues to navigate this period of economic revitalization, the focus will remain on attracting responsible investment, promoting sustainable mining practices, and maximizing the benefits of its abundant natural resources for its citizens. The coming months will be critical in determining the long-term impact of these developments and the extent to which Zambia can capitalize on the global copper rush.
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