Capital Markets Critical for Zambia’s Mining Sector – Anglo American
Anglo American says a strong and vibrant local capital market is essential to attract foreign institutional investors to Zambia’s mining sector.
Anglo-American Senior Executive for the last 20 years and Chairman of Anglo American Platinum, Norman Mbazima, underscored the critical importance of creating a conducive investment climate to unlock the country’s mining potential.
Participating in a panel discussion at the Zambian Mining and Investment Insaka this week, Mr. Mbazima emphasised the pivotal role foreign investment has played in building Zambia’s mining sector and the continued need for external capital to drive large-scale projects.
“A robust capital market is key to attracting foreign investors who can bring the capital required to scale up operations, without compromising national interests,” Mr Mbazima stated.
He outlined the historical journey of Zambia’s mining sector, tracing its roots back to the discovery of copper deposits in the 1920s, noting challenges that followed the nationalization period after Independence and the subsequent privatization phase.
Mr Mbazima stressed the need for consistent and predictable government policies to create an investment-friendly environment. “Investors need stability.
“They are managing funds from pensioners and others who rely on long-term returns, so they need to trust that Zambia is a stable place for their money. It can take years to develop a mine, and investors want assurance that they will see a return on their investment. Policy consistency is critical,” he noted.
He also highlighted the mining sector’s significant contribution to Zambia’s economic development, crediting it with the establishment of key infrastructure like the Kariba Dam, the railway network, and the Great North Road, emphasizing the need for economic diversification, not as a replacement for mining, but as a strategic expansion of the country’s economic base.
Meanwhile, Zambia Chamber of Mines President and Country Manager for First Quantum Minerals, Dr. Godwin Beene, noted the historical and ongoing challenges facing Zambia’s mining industry, citing the volatility of global metal prices and the shifting regulatory landscape as critical issues that investors must navigate.
Dr. Beene called for strategic partnerships between the public and private sectors, a highly skilled workforce, and responsible environmental practices to ensure the sustainable development of the mining industry.
Anglo American is investing significantly in exploration projects in Zambia, having recently finalized a joint venture agreement with Arc Minerals plc, giving Anglo American the right to retain up to a 70% shareholding in the joint venture company to explore Zambia’s North-Western province for copper and cobalt.
