UAE-Zambia deal signals new interest in African mining

Significance

Many observers had anticipated a Chinese takeover, as attention has generally been focused on perceived Chinese dominance in the region’s mining industry. However, this deal makes the UAE one of Zambia’s largest investors.

Impacts

• State involvement in Zambia’s mining sector will decrease and the government’s remaining 49% stake in Mopani is likely to be gradually sold.
• The privatisation of Mopani after successive delays will bolster the government’s fiscal position, as the mine has been making heavy losses.
• New investment should forestall major layoffs at the mine, which employs nearly 10,000 people.