Mining elevates Zambia’s investment status
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Mining elevates Zambia’s investment status
Increased activity in Zambia’s mining sector suggests continued growth may be on the cards.
Rand Merchant Bank’s (RMB) latest report “Where to invest in Africa 2025/2026” makes for interesting reading.
One of the big movers on the list is Zambia.
Zambia, which was 20th on the 2024 list, has moved up five places and is now (according to RMB) the 15th most attractive African country to invest in in 2026.
Despite several serious challenges for the Zambian economy over the last two years, including (amongst others) severe drought and energy woes, Zambia’s GDP grew by 4% in 2024.
A buoyant copper price
This growth can largely be ascribed to a buoyant copper price and growing mining sector.
According to the RMB report, Zambia was able to respond on the supply side as well, with copper output continuing to increase.
This was due mainly to Konkola Copper Mines (KCM) resuming production, Barrick’s Lumwana mine ramping up production, and a few interesting acquisitions.
Lumwana doubled production in 2024/2025, while Mopani Copper Mines was acquired by UAE company International Resources Holding (IRH).
Vedanta Limited, the firm that owns 80% of KCM, announced its intention to invest USD1.3-billion to increase production in the mine. Parent company, London-based Vedanta Resources, is considering a New York listing to finance this.
US-based KoBold Metals, backed by Bill Gates and Jeff Bezos through subsidiary KoBold Metals Zambia, plans to invest USD2-billion in developing a copper mine.
Outlook from stable to positive
“Recognising that work has been done to improve Zambia’s financial position, Moody’s upgraded the sovereign’s credit outlook from stable to positive in April 2025.”
“The ratings agency cited expectations of a steadily decreasing government debt burden, driven by stronger economic growth and continued fiscal consolidation.”
According to the RMB report mining accounts for about 15% of Zambia’s GDP, 70% of export earnings, and 44% of government revenues.
Continued growth in this sector may be driven by government’s plans to leverage Zambia’s rich supply of energy transition minerals, including lithium, cobalt, and copper, to make Zambia a hub for electric vehicle (EV) component manufacturing, with the local refining of minerals leading to the retention of earnings within the domestic economy.
WhyAfrica will visit Zambia on a shorter version of our now famous WhyAfrica Road Trips from 23 March 2026 to 02 April during which we will attend the 3rd edition of the Zambia International Mining and Energy Conference and Exhibitions (ZIMEC) in Kitwe and also visit several mining and exploration projects.
If your company want to become part of the 2026 WhyAfrica Zambia story, give us a call before the end of January.
Image: Barrick’s Lumwana pit. Image credit: Leon Louw
Mining elevates Zambia’s investment status