The right legislation will unlock growth opportunities

Both Zambia and the Democratic Republic of the Congo (DRC) recognise a critical reality: mineral endowment alone – particularly copper – is no longer enough. According to DRC Minister of Mines Louis Watum Kabamba, getting policy, regulation and legislation right will be key if the two countries are to unlock the opportunity presented by copper fully. “In the DRC, we are still a work in progress. We understand that having resources is not sufficient,” he said during a recent presentation in Cape Town. “We need stronger partnerships and greater collaboration. It is also important that the benefits of our resources are shared more equitably across the country.” According to Owen Silavwe, chief executive officer and managing director of Copperbelt Energy Corporation (CEC), the case for the Copperbelt has already been made, with a clear understanding of its potential for the region. “At the moment, it is one of the good news stories. The countries are showing strong ambition and are working to improve the operating environment, particularly through infrastructure development,” he said. “This is continuing to attract private sector interest. Across sectors, we are seeing increasingly ambitious governments and that matters to investors. When you combine ambition with a supportive business environment, that is what the private sector is looking for.” He noted that Zambia had set a target of producing three million tonnes of copper by 2031/32. “It is an exciting target. It is a significant challenge, and, for many, it still appears insurmountable but we believe it can be achieved,” he said. Silavwe emphasised that power remained one of the most critical constraints to achieving these ambitions. “In Zambia, we have an integrated resource plan which makes it clear that, if we are to reach three million tonnes of copper by 2032, we need to accelerate development in the power sector,” he said. “This includes new generation capacity as well as investment in transmission and distribution infrastructure.” He noted that the scale of investment required was substantial. “By 2030, we need to invest just under $12 billion to bring approximately 10 GW of power online. The key question is: where will this funding come from and how quickly can we mobilise it to support our copper ambitions?” Silavwe stressed that energy was fundamental to economic growth. “No economy can develop without power. It is a critical ingredient if we are to move our economy forward and support the ambitious programmes being driven across sectors.” From a regional perspective, he said Zambia was making notable progress in opening up its electricity market. “Zambia is leading within SADC in terms of adopting open access. This has created opportunities for power traders, independent power producers (IPPs) and investors to participate across the electricity value chain,” he said. “We are seeing more collaboration, with stakeholders pooling resources and sharing risk.” He added that recent supply constraints had also shifted market dynamics. “Over the past three years, we have experienced a supply gap. While this has created challenges, it has also prompted a more urgent and coordinated response. There is now a clear recognition of the need to invest and there is growing interest in a range of technologies to help close the gap.” LV