Investors are rushing back to Zambia for its top sector and economic stability - Citi

Investor interest in Zambia's mining sector has experienced a recent surge as the Southern African nation's fiscal consolidation gains momentum following its emergence from a sovereign default.

• Investor interest in Zambia's mining sector has grown following improved fiscal stability after the country exited sovereign default.
• Citi executive Lowani Chibesakunda noted significant interest in mining, energy, and agriculture, particularly due to Zambia's large copper reserves.
• The demand for copper, driven by green energy transitions and the need for AI data center infrastructure, has kept copper prices strong.
• Zambia’s credit rating has improved, new investor categories are entering the market, and the country produced a record 890,000 tons of copper last year.

This shift was highlighted by a senior official at the multinational financial services corporation and investment bank, Citi.

"We have noted increased interest, especially when we have seen significant ‌strides being made in terms of bringing stability to the Zambian economy," said Lowani Chibesakunda, Citi's chief executive and banking head for Zambia, in an interview with Reuters on Tuesday.

"We have noted key interests in ​mining, in energy, as well as in agriculture," he continued.

Possessing substantial copper reserves, Zambia is strategically positioned to satisfy the escalating global demand for the metal, which is driven by the transition toward sustainable energy and the expanding power infrastructure required for artificial intelligence data centers.

This investor confidence was highlighted in June when the UK-based mining company, Vedanta Resources, took a major decision to divest one of its assets in an attempt to raise funds for its mining operations in Zambia.

The UK company announced plans to put up 11.8%, about 23.5 million shares of CopperTech Metals Inc, its U.S.-based division, for sale.

"You cannot talk about ​the Zambian story without emphasising the importance of mining and seeing how copper prices have remained ​bullish," said Chibesakunda.

"The focus that is there now on copper-related products, be it your electric vehicles, et cetera, is really driving a lot of growth in that sector," he added.

Zambia's default status was officially concluded in November following an upgrade by S&P Global. The agency raised the nation's long- and short-term foreign-currency credit ratings from SD (selective default) to CCC+/C, accompanied by a stable outlook.

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This sovereign rating action succeeded projections from the administration, which, despite enduring prolonged debt restructuring and a severe drought, anticipated that the budget deficit would decrease by over 50% in 2026 alongside a targeted economic growth rate exceeding 6%.

Chibesakunda further highlighted that novel categories of investors were initiating their preliminary entry into the domestic market.

"We have ⁠seen increased interest from players coming through from the Middle East ... just to give you a sense, the pharmaceutical sector, the technology space."

In mining, "we've had players coming into this market that ⁠are mining ​for the first time," Chibesakunda stated.

Copper is one of Zambia’s top revenue generators, giving it the distinction of Africa’s second-largest supplier of the metal.

Last year, the Southern African country produced a record 890,000 tons of copper.