Zambia plans a larger state role in the mining sector

Significance

Large quantities of the critical minerals needed for the green transition are found in Central Africa and this has spurred a boom in mining and infrastructure, of which the government wants to take advantage.

Impacts

• The relationship between the new state investment firm and Zambia’s existing state-owned mining company is unclear and could cause friction.
• Crippling power shortages will limit capacity to expand domestic mineral processing.
• Requirements for new mines to use Zambian suppliers for one-third of their procurement needs could boost linkages with the wider economy.