For Zambia’s mining companies, priorities heading into next week’s general election include stronger mineral processing incentives, a revival of exploration activity, and expanded power generation capacity — measures the industry considers essential to achieving the country’s goal of tripling copper production.
Africa’s second-largest copper producer is targeting annual output of three million tonnes, nearly three times current levels, seeking to capitalise on surging demand for the metal used in electric vehicles, power grids, and construction.
That demand has driven benchmark copper futures prices up more than 40% over the past year, to around US$14,000 per tonne.
“The ambition to triple copper production will require stronger incentives for exploration, local processing, and value addition, alongside major infrastructure investment,” said Ayo Sopitan, chief executive of mining company Metalex Commodities.
Sopitan added that Zambia also needs a more robust rule of law and more effective dispute resolution mechanisms, while export levies on concentrates continue to penalise producers without refining capacity.
Zambia Chamber of Mines president Anthony Malenga said high investor confidence, supported by fiscal reforms and closer government-industry dialogue, has helped attract more than US$10 billion in investment since the 2021 elections.
According to Malenga, ongoing discussions between the government and the mining sector have helped resolve most outstanding competitiveness issues, but Zambia’s growth ambitions now hinge on maintaining a strong pipeline of exploration projects.
“The mining industry needs to grow, and that will only be possible with increased investment in the exploration of new areas,” Malenga said, adding that licensing system reform should ensure that exploration licences are awarded to companies with the capacity to develop projects.
Mining is the backbone of the Zambian economy, accounting for approximately 9% of gross domestic product, generating 72% of export revenues, and contributing to nearly half of state revenues.
More than eight million Zambians are registered to vote on 13 August in elections for the presidency, parliament, and local government.
Analysts expect President Hakainde Hichilema to be re-elected in a peaceful vote, pointing to continuity of investment-friendly policies.
A senior industry source said Zambia has introduced several important reforms over the past four years, including changes to foreign exchange regulations, local content rules, and fuel cost policies.
Although investors anticipate few changes to the tax regime following the elections, Menzi Ndhlovu, lead analyst at Signal Risk, believes energy shortages and labour pressures represent the main threats to the country’s copper production growth ambitions.
Ndhlovu said power generation capacity could prove insufficient to sustain a significant expansion of mining activity without additional investment, while trade unions may demand wage increases as the sector continues to grow.
Industry officials estimate the country will need at least 2,000 megawatts of additional power generation capacity to meet its copper production targets, though recent investments are expected to gradually ease pressure on supply.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/05/mundo/africa/zambia-sector-mineiro-espera-acelerar-expansao-do-cobre-apos-eleicoes/
