Zambia presses Gulf investors on local mine rules
Zambia is Africa’s second-largest producer of copper, whose prices have soared as demand rises for metals used in electric vehicles and power grids.
Zambian President Hakainde Hichilema, during his first major international trip since his recent re-election, urged Gulf investors to strictly adhere to the nation's local procurement regulations. The African nation, which ranks second globally in copper production, is benefiting from soaring copper prices due to increased demand for metals essential in electric vehicles and power systems.
Hichilema's viewpoint aligns with that of neighboring countries, who are leveraging the ongoing race for vital minerals to spur economic growth. Regulations implemented a year ago mandate that mines procure a larger proportion of critical goods and services from local suppliers. Upon his arrival, Hichilema met Ali Rashed Alrashdi, CEO of an Abu Dhabi-based firm that owns one of Zambia's oldest copper mines, the Mopani mine.
In a subsequent Facebook post, Hichilema encouraged Mopani to increase production, as Zambia aims to more than triple copper output to 3 million tonnes by 2030. However, critics argue that the push for local procurement can lead to cost inflation in scenarios where domestic suppliers lack the necessary capacity, potentially creating opportunities for middlemen who resell imported goods.
During his visit, Zambia forged six non-binding agreements worth $2.14 billion with UAE investors. These agreements encompass sectors such as healthcare, renewable energy, logistics, and technology.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
