For mining firms in Zambia, priorities for next week's elections include stronger incentives for processing minerals, reviving exploration and expanding power generation, measures they say are needed to deliver the country's goal of tripling copper output, according to Reuters.
Africa's second-largest copper producer is targeting annual output of 3 million metric tons, nearly triple current levels, as it seeks to capitalise on growing demand for the metal used in electric vehicles, power networks and construction.
That demand has spurred a more than 40% jump in benchmark copper future prices in the past year to $14,000 per tonne.
"The ambition to triple copper production will require stronger incentives for exploration, local manufacturing and value addition, alongside major infrastructure investments," said Metalex Commodities chief executive Ayo Sopitan.
He said Zambia also needed stronger rule of law and dispute-resolution mechanisms, while export duties on concentrates continued to weigh on producers without refining capacity.
Zambia's Chamber of Mines president Anthony Malenga said high investor confidence through tax reforms and closer engagement with miners has helped attract more than $10 billion in investment since the 2021 election.
He said policy discussions between government and miners are helping address most outstanding issues on competitiveness, but Zambia's growth ambitions now depend on maintaining a robust exploration pipeline. “The mining industry needs real growth and this can only happen with increased spending on greenfield exploration,” Malenga said, adding that licensing reforms should ensure exploration permits are held by companies with the capacity to develop projects.
Mining is the backbone of Zambia's economy, contributing about 9% of GDP, generating 72% of export earnings and accounting for nearly half of government revenue.
More than 8 million Zambians are registered to vote on August 13 to elect a president, lawmakers and local government representatives.
Analysts expect President Hakainde Hichilema to secure re-election in a peaceful poll, pointing to broad policy continuity for investors.
While investors expect limited changes to the fiscal regime after the election, Signal Risk lead analyst Menzi Ndhlovu said power shortages and labour pressures pose the biggest threats to Zambia's copper growth ambitions.
Power generating capacity may be inadequate to support major mining expansion without significant new investment, while labour unions could seek wage increases amid rising mining activity, Ndhlovu said.
Industry executives estimate Zambia needs at least 2,000 MW of additional capacity to support its production targets, though recent investments should ease supply pressures.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
