China Non-Ferrous Metals Company (CNMC) has announced a substantial $1.5 billion investment in Zambia’s mining sector, a move that underscores the country’s growing appeal as an investment destination. The decision follows a series of discussions between CNMC Chairperson Wen Gang and Zambian President Hakainde Hichilema during the Forum on China-Africa Cooperation (FOCAC) Summit in September 2024, with both parties agreeing that Zambia offers a conducive investment climate.
The $1.5 billion will be strategically allocated to various projects across the country. Of this, $650 million will be directed towards the rehabilitation and expansion of Shaft 28 in Luanshya, after the completion of its dewatering process. Another $250 million will be invested in the development of Samba Mines in the Samba area, while $100 million will be dedicated to the Lusaka South Economic Zone, further supporting the country’s industrial and economic growth.
President Hichilema expressed his delight at the positive response from Chinese investors, noting that the increased investments would help bolster Zambia’s mining sector. He also encouraged CNMC to enhance their contributions by investing in capital, technology, and infrastructure to boost copper production, a key pillar of Zambia’s economic growth. The country aims to reach a production target of three million tonnes of copper, and such investments are critical in achieving this goal.
The President also commended CNMC for their commitment to supporting the development of Zambia’s economic zones and their involvement in the revitalization of the Tanzania-Zambia Railways (TAZARA). He emphasized that the successful operation of TAZARA will bring significant benefits to Zambia, Tanzania, and China, strengthening regional cooperation.
This move by CNMC highlights Zambia’s ongoing efforts to attract foreign direct investment (FDI), particularly in the mining sector. As one of the world’s largest producers of copper, Zambia remains a vital player in the global mining industry, and these new investments will help the country to expand its capacity and infrastructure.
Public and private sector leaders alike have acknowledged the importance of ensuring that the benefits from such investments are maximized for Zambia’s long-term growth. The government is committed to creating an environment that supports both local and foreign investors, with a focus on generating employment, improving technology transfer, and enhancing overall productivity in the sector.
As the country continues to capitalize on its natural resources, these investments are expected to play a pivotal role in Zambia’s economic development, potentially creating thousands of jobs and strengthening its position as a mining powerhouse in Africa.
