Zambia is home to some of the world’s richest mines and deposits and represents enormous potential for mining firms and investors alike.
Currently one of the largest copper producers in Africa, Zambia is home to some of the world’s richest mines and deposits.
Mining has long been a cornerstone of Zambia’s economy, comprising 77 percent of ts annual export value and 27.7 percent of its annual government revenue. Unfortunately, this level of reliance means the country was hit particularly hard by declining copper prices. The pandemic has only further exacerbated Zambia’s financial woes.
In spite of this, Zambia’s current outlook is a positive one. Last year, copper prices reached an all-time high; even after a brief period of decline they are still up 20 percent year-to-date.
Moreover, as the electric vehicle market continues to grow over the coming years, demand for copper is likely to increase considerably — so much so that current production will be insufficient by 2030.
It is also important to note that copper is neither the only available resource in Zambia, nor the only investment opportunity. According to Pete Major, director of mining at South African Mergence Corporate Solutions, Zambia also has considerable potential in coal, emeralds, gold and manganese. Gold especially shows a great deal of promise, with its value remaining stable even in the face of a volatile market.
An overview of
Zambia’s mining
industry
Given the prominent role mining plays in Zambia’s economy, it is naturally in the government’s best interest to ensure that both the regulatory situation and tax laws in the country are favorable towards mining companies. To that end, the recently elected government announced in October that it intends to provide tax breaks to the mining sector as part of 2022 budget discussions.
