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Markets

In a bid to upscale the number of listings, the Securities and Exchange Commission (SEC) has revealed its efforts to work towards streamlining listing requirements and associated costs to encourage more companies to list. In recent times, LUSE has struggled to attract listings, part of the blame piled on high registration fees, lack of understanding on investment options and a volatile economic facet.

Speaking in an exclusive interview with the Zambian Business Times (ZBT), The Securities and Exchange Commission (SEC) Financial Sector Policy and Management Economist Busiku Chitambo has disclosed that methodologies will involve reviewing and streamlining of listing requirements and associated cost with particular attention given to emerging enterprises through designated platforms like the LuSe Alternative Market (Alt-M).

“These efforts are complemented by measures designed to increase market participation from both domestic and international investors, and to improve overall market transparency and operational efficiency”, said Chitambo.

He added that the Successful execution of the initiative will not only stimulate activity on LuSE but also position Zambia as a preferred destination for capital investment.

‘The successful execution of the masterplan will not only position Zambia as a preferred destination for capital investment but foster economic expansion, and generate massive employment

for the next decade.” The measures that SEC has earmarked sound promising, but the nation awaits whether any meaningful dividends will surface

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In a bid to upscale the number

Mining

Zambia’s largest mining firm – First Quantum Minerals (FQM) has revealed that they plan to import about 60% of their electricity and power requirements in the year 2025, perhaps confirming the worst fears that full power supply would be restored in Zambia for both domestic and commercial customers.

FQM which controls two large scale copper mining companies at Solwezi and Kalumbila, and expected to launch its third mine termed S3 also in North Western

Province confirmed in its quarter one (Q1) 2025 report that “the Company anticipates sourcing up to 60% of its electricity from imports”. The imported electricity however will come at a higher cost to production, therefore cutting a slice, await small relative to the current buoyant international copper prices which by May 2025 were upwards of $9,000 per ton, considered as a sweet spot for copper prices. FQM confirmed that the imported price will have an “annualized impact of the supplementary [electricity] sourcing on 2025 copper cash cost is estimated to be approximately $0.07 per lb.”

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Zambia’s largest mining firm - First Quantum

Companies

The Securities and Exchange Commission – SEC first quarter (Q1) report on the Equity Market Performance has revealed that British bank Zambian unit – Standard Chartered Bank Zambia Plc ( SCBL) has recorded a drop in share price of a staggering 17% for Q1 2025.

The Bank whose price at the beginning of the 1st quarter 2025 was standing K2.65 per share and had its closing price at the end of the first quarter of 2025 standing at K2.20 per share, indicating a price drop of 45 Ngwee per share and ultimately recording 17% drop in terms of market price.

When contacted for a comment by the Zambian Business Times – ZBT, Stanchart Head of Corporate Affairs, Brand & Marketing, Christine Matambo requested for more time to get approval from the Chief Financial officer – CFO to give reasons for the steep drop in share price within a quarter.

Stanchart group in late November 2024 announced it’s plans to exit the Zambia wealth and retail business in Zambia and other countries. 

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The Securities and Exchange Commission - SEC

Companies

Last year, the Zambian government, through the Road Development Agency (RDA), awarded a concession to Borderway Investment Company to upgrade the 111km Solwezi-Kipushi Road and border infrastructure under a Public-Private Partnership (PPP).

A check on the Chinese company Borderway Capital Investment limited revealed that it was backed by China Hainan Construction Limited, another construction company that had been active in Zambia but no longer visible.

At the time of the PPP deal award, it was announced that these new awards were very financially and experienced companies that would resume construction at the end of the immediate past rainy season.

As the rain season was drawing to the close in April, amid growing public interest, the Zambian Business Times (ZBT) followed up on the project’s status.

First, ZBT contacted Solwezi East Member of Parliament, Hon. Dr. Alex Katakwe, who told ZBT in that full-scale construction would  begin once the rainy season was over, expecting that the  pending finalization of the Environmental Impact Assessment (EIA) and financial closure would be closed out, with works expected to begin in May.

‎Now, with May well underway and the rain season  excuse totally  dimissed, ZBT sought clarity from RDA on  Borderway Capital Investment’s preparedness. 

When contacted RDA Chief Communications Manager Anthony Mulowa initially promised a response but has since gone silent. Efforts to follow up and get even contact details of the country representative behind Borderway Capital Investments limited have proved futile.

Further to the failed comfirmations from RDA and the MP, ZBT proceeded to engage ‎he Solwezi District Commissioner who claimed to be unaware of any progress, while the Mushindamo Town Council confirmed that no work had commenced, redirecting all inquiries back to RDA.

‎With the “rain excuse” off the table and neither the contractor nor the authorities forthcoming, the lack of transparency has only heightened public concerns if this PPP deal was indeed viable and the parties awarded are serious with securing financing as well as engaging with their concerned stakeholderd. 

Is the Solwezi-Kipushi road PPP project stalling before it even starts? Was this deal meant to simply hoodwink the people of North Western Province and Zambia at large? Only time will tell.

‎The $145 million project, to be implemented under a PPP arrangement, also includes the development of a modern one-stop border post at Kipushi to facilitate cross-border trade more efficiently.

A boarder like Kipushi would open up trading opportunities for the people of North Western Province as well as open up a large market for Agriculture and livestock in the Eastern DRC.

If one looks at the payback potential of this road, it’s one that even the government could afford to fund directly and reap back the investment through toll gates, expansive trade opportunities for Zambians and excessive border  taxes and fees collections by ZRA 

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Last year, the Zambian government, through the

Companies, Mining

The excitement that additional 100MW solar power generation at Chisamba would ease load shedding
may be displaced after the confirmation that all the power will be used up by the mines.
And the mines who have had to rely on much more expensive power imports are expected to cut down on their imported power component, with the net effect on load shedding to both domestic and commercial customers being zero.


The Zambian Business Times – ZBT can exclusively comfirm that State power utility ZESCO has signed
a 13-year Power Purchase Agreement – PPA with Africa GreenCo as the off-taker for the 100 Megawatts
(MW) Chisamba Solar power project whose end users is First Quantum Minerals FQM mines – ZESCO insider sources revealed.


Sources familiar with the project’s operations revealed that while GreenCo will act as the off-taker, the
generated power is earmarked for FQM’s mining operations. This revelation has sparked questions regarding the project’s immediate impact on the ongoing national electricity crisis commonly called load shedding, which continues to affect Zambian based businesses and residential consumers through persistent power outages.
The Chisamba solar project was initially anticipated as a significant step towards alleviating the current power crisis especially on the local businesses and residential customers who are left with no alternatives or much more expensive sources of power. However, the disclosure that the majority if not all of its output from the 100MW Chisamba Solar will be directed to the mining sector has prompted questions about its effectiveness in easing the challenges faced by other key sectors which have endured the brunt of load shedding.
Some sources suggest that this arrangement will enable FQM to reduce its reliance on imported power
indicating that the power from the Chisamba plant is unlikely to have any impact on current load shedding experienced by other domestic and
commercial users.
Speaking exclusively to the Zambian Business Times (ZBT), a source said despite GreenCo being the intermediary off-taker. “The power will however be supplied locally; it won’t be exported” the source stated.
Addressing the question on allocation of power between the mines and local business and household
consumers, the source explained the inherent variability of solar power generation makes its not ideal.
“This is a solar plant, and you can’t definitively say how much will be supplied to the mines and how much
will go to the locals at any given moment. Solar power fluctuates; it’s not constant. We have figures for annual generation, and that total quantum will be fed into the grid but is intended for FQM as the primary customer”.


The Chisamba Solar project represents a total investment of approximately $101 million, with the
Engineering, Procurement, and Construction (EPC) contract valued at nearly $100 million, translating to
roughly $1 million per megawatt. The source told ZBT that ZESCO has entered into a 13-year PPA
with GreenCo Power Services as the off-taker, effective immediately upon signing.


When questioned about why ZESCO did not directly supply power to FQM, the source indicated that the
mining company requires a consistent and reliable power supply, which solar power alone, with its inherent daytime-only generation, cannot guarantee.
“The mine wants firm power, not fluctuating power. Solar plants don’t generate power at night.”

Regarding the project’s financing structure, the source alluded to initial challenges, stating, “Some financiers were not comfortable, so it’s something to do with the financing.” This development underscores the complexities of addressing Zambia’s power crisis, balancing the energy needs of key industrial players with the demands of the broader economy and residential consumers.

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The excitement that additional 100MW solar power

Companies

ZESCO, Zambia’s state owned power utility, has found itself at the center of controversy after plans to contract about $70 million in debt financing for its 100 megawatt (MW) Chisamba Solar Project have led to questions on the utility financial direction regarding additional debt contraction.

ZESCO through its subsidiary Kariba North Bank Extension is reported to have contracted about $70 million in debt from a private Bank to finance the 100-megawatt Chisamba solar power project, the Zambian Business Times (ZBT) has exclusively learned.

This project was part of a larger initiative between ZESCO and Power China to deliver 600MW of solar power across three sites, initially planned with EPC financing.

However, the financing structure for this particular project, which was earmarked to be a 200MW has since evolved, with sources indicating that challenges in securing financing led to the current debt arrangement with Stanbic Bank.

Sources with knowledge about ZESCO operations, who wished to remain anonymous due to the sensitivity of the matter, revealed that the financing structure for the project comprises 70% debt and 30% equity.

“The equity component is being contributed by Kariba North Bank Power Company, a subsidiary of ZESCO.”

“Under the EPC contract, Power China was responsible for the engineering, procurement, transportation, and construction of the solar plant. As the investment, totaling around $101 million, and with EPC costs nearing $100 million, the payment structure between Kariba North Bank Power Company, a subsidiary of ZESCO, and Power China dictates that the construction costs at this stage are the responsibility of the EPC contractor.”

ZBT has also independently confirmed that ZESCO has entered into a 13-year Power Purchase Agreement (PPA) with Africa GreenCo. Notably, insider sources have disclosed that the generated power from the Chisamba plant is primarily earmarked for the mining operations of First Quantum Minerals (FQM).

This revelation has raised concerns regarding the project’s immediate impact on the persistent national electricity crisis and load shedding affecting small local businesses and residential consumers.

While the Chisamba solar project was initially anticipated as a significant step towards alleviating the power deficit for the country, the allocation of its output to the mining firms who already have alternatives to import power on their own suggests it may not directly ease the challenges faced by other sectors grappling with power outages.

Sources familiar with the project suggest that this arrangement will enable FQM to reduce its reliance on imported power. Consequently, the 100MW generated from the Chisamba plant is unlikely to have a substantial impact on the current load shedding experienced by other users.

The Chisamba Solar project represents a total investment of approximately $101 million, with the EPC contract valued at nearly $100 million, equating to roughly $1 million per megawatt.

The Chisamba Solar Project, touted as a paradigm shift towards renewable energy in Zambia, now faces skepticism regarding its true benefits.

Critics are questioning the wisdom of incurring significant additional debt while the most affected local and Zambian based businesses grapple with frequent power outages.

Analysts argue that the focus should have been on addressing the pervasive load shedding rather than catering to the power demands of major corporations, who even have the muscle to import power on their own.

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ZESCO, Zambia's state owned power utility, has

Mining

Concerns have emerged regarding the business opportunities available to local Zambian contractors and suppliers within Chinese-operated mining ventures according to a confidential source who spoke exclusively to the Zambian Business Times (ZBT).


The source, whose identity has been withheld due to the sensitivity of the matter, detailed a
system where Chinese mining firms often establish intricate, self-sufficient supply chains. This reportedly involves Chinese companies subcontracting other Chinese-owned entities for various aspects of the mining operations.


“What they have done is they have now brought local contractors also in the name of Chinese who are running smaller businesses. They have become part of the supply chain,” the source explained. “So you find that Companies like CNMC will come and run the mine in terms of the bigger picture with the government, and then under them, you are going to have small Chinese businesses and all
those contractors, now who are going to be subcontracted. Then you are going to have below
them the suppliers of goods and services who are also going to be
Chinese.”


This structure, the source contends, results in a value chain dominated by Chinese interests, leaving minimal space for genuinely Zambian-owned businesses. The source further alleged that even locally registered entities can be effectively foreign-controlled, with foreign shareholders nominating local
directors.
“There is no law that prevents Zambian contractors or Zambian suppliers being registered, as foreign companies can come and nominate a local director that’s what the law provides for and you can have 100% foreign shareholders and control the business. There are locally registered but foreign owned,” the
source stated. They also indicated that the limited engagement of local suppliers at companies like CNMC primarily involves non-essential items. The source emphasized the critical need for a robust local content law to address this imbalance.

“We need a law because Chinese, what they respect is the law. In the absence of the law, they will tell you, ‘Where is it written that I should give you this kind of business?’ And remember, most of the companies are going to China to buy things, so they already know they have an advantage that these things are coming from themselves, so why should they give to X and Y when they know where they are found with cheaper customs?”

Furthermore, they highlighted what they described as “cultural differences,” where Chinese firms reportedly prefer to work with trusted partners, predominantly from their own country. “They say they have cultural differences, and with those cultural differences, they say they only work with the people they trust, which is themselves. So they are more comfortable dealing with the Chinese,” the source noted.

The limited scope of Corporate Social Responsibility (CSR) programs initiated by these firms was also mentioned. The source suggested that a government-to-government engagement, given state-owned nature, might be a more effective avenue for ensuring a greater trickle-down effect of investments to
local Zambian businesses.
“In the absence of the law and regulations, the Chinese will get 100%, that is just how they are.
You cannot tell them to say reason and give businesses to this one; no, it has to be by regulations,” the source concluded

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Concerns have emerged regarding the business opportunities

Markets

Zambia’s persistently volatile Consumer Price Index (CPI) is triggering a significant transformation in consumer behavior within the hospitality sector, prompting industry players to aggressively adapt their operational models.
The Lusaka Chamber of Commerce and Industry (LCCI) has issued a strong call for the implementation of urgent policy measures aimed at buffering the hospitality sector from the escalating cost of doing business, a direct consequence of the unstable inflationary trend.


In an interview with the Zambian Business Times (ZBT), LCCI President Alexander Lawrence
highlighted the profound impact of inflationary pressures on consumer preferences, compelling hospitality businesses to undergo substantial adjustments.
“Consumers are increasingly price-conscious, actively seeking more affordable service options and curtailing discretionary spending,” Lawrence noted.


He further observed that businesses operating within the hospitality space are responding to
these shifts by streamlining their service offerings, reducing premium options, and strategically transitioning to digital platforms such as online food delivery services and booking systems to
enhance efficiency and reach a wider customer base.
“While some businesses are demonstrating resilience through innovation and by providing value-driven experiences, the financial strain on many others within the sector is considerable,” Lawrence stated.
In response to these challenges, the Chamber has formally proposed a series of targeted interventions to the government, with the objective of mitigating the rising operational costs faced by the hospitality sector. Key proposals include the provision of tax incentives for Small and Medium Enterprises (SMEs) within the hospitality industry, such as Value Added Tax (VAT) relief and waivers on import duties for essential operational inputs. The Chamber is also advocating for the implementation of sector-specific electricity and water tariffs, alongside improved access to affordable financing options.


“Enhanced support for domestic tourism initiatives and the adoption of stronger local procurement policies will also significantly contribute to boosting demand within the sector and fostering more stable supply chains,” Lawrence added.
Furthermore, Lawrence outlined the Chamber’s active support for its members through business-focused interventions, encompassing cost management training programs, financial advisory services, and the promotion of bulk procurement models to enable businesses to access more competitively priced inputs.
“We are also actively facilitating crucial linkages between our members and local suppliers to reduce the sector’s over-dependence on imports, which is a significant contributing factor to the current cost escalations,” he explained.
Lawrence reaffirmed the Chamber’s unwavering commitment to empowering local businesses and its continued engagement with key stakeholders to ensure the sustained viability and growth of the hospitality sector.
“The hospitality sector plays a pivotal role in Lusaka’s overall economic landscape, particularly as we strategically position ourselves as a prominent regional trade and investment hub. We commend media organizations such as yours for consistently highlighting this critical issue,” Lawrence concluded.

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Zambia’s persistently volatile Consumer Price Index (CPI)

Companies

In a significant move to bolster business capabilities in Zambia, BDO Zambia has officially signed a Memorandum of Understanding (MoU) with the Lusaka Chamber of Commerce and Industry (LCCI) aimed to enhance the skills and knowledge of LCCI members, Directors, and affiliated businesses through comprehensive training programs.

Speaking at the signing ceremony attended by the Zambian Business Times – ZBT, Godsave Nhekede, Partner at BDO Zambia, expressed enthusiasm for the collaboration, emphasizing its potential to elevate the operational effectiveness of LCCI members.

He said the partnership positions BDO Zambia to provide essential training support tailored to the needs of the members, enabling them to achieve their business objectives effectively.

Nhekede highlighted BDO Zambia’s pioneering role, stating that BDO is the first firm in Zambia to sign such an MoU with LCCI. “We are eager to work with LCCI to build the capacity of its members, ultimately improving their business operations.” He noted that BDO is recognized for its commitment to helping companies achieve their objectives, including contributing to societal development.

“This MoU will enable us to further that goal and provide ongoing support to ensure the sustainability and growth of LCCI members.” Added Nhekede.

LCCI President Alexander Lawrence expressed his enthusiasm about the partnership stating that it will advance the vision of the Chamber and fulfill its mandate of creating opportunities and developing our business community. “We represent the interests of businesses within Lusaka, at both district and provincial levels. Our membership spans micro, medium, and large corporates, each with unique development and capacity-building needs. These development programs are crucial for us to realize our vision of making our city, province, and country a regional trade and investment hub.”

Lawrence also highlighted the strategic importance of Lusaka, noting, “Lusaka serves as a key center for several regional economic communities, including SADC, COMESA, the Tripartite Free Trade Area, and the African Continental Free Trade Area. This presents a market opportunity encompassing 1.3 billion people. To capitalize on the linkages that will be established, we need the expertise to develop the capacity of our business community and BDO was identified as a leading firm to provide these services, particularly in financing and market intelligence.” He remarked.

“We are grateful for this collaboration and aim to foster synergy that contributes to the economic transformation mandated to the private sector. We thank BDO and look forward to a productive partnership in achieving the objectives of the Chamber and contributing to the growth of businesses in the market. This MoU will facilitate closer collaboration.”

Meanwhile, speaking at the same event, BDO Zambia Associate Director, Jonathan Ambali underscored the importance of sustainability in modern business practices.

Ambali, noted that in today’s environment, two critical factors stand out: ensuring business sustainability amidst change, and the impact of technology. “Climate change is having a tangible impact, as seen this year with the drought affecting businesses. Additionally, technology is rapidly reshaping how businesses operate. We must help SMEs recognize the imperatives of AI and sustainability.”

Ambali further added that it is crucial that, through this collaboration, “we address the modernization of our business landscape and align with global trends. Sustainability and ESG considerations can no longer be ignored, even by the smallest businesses. We need to address new market access, green finance, effective community engagement, and net-zero initiatives. As advisors, and in partnership with the Chamber, we must address these issues. Beyond traditional business growth, it’s important that we look at these new drivers in the business sector.

Ambali added that BDO is ready to provide the necessary services and advice to the business clients within this arrangement.

This partnership represents a pivotal opportunity for businesses within the Lusaka area to thrive as they navigate the complexities of the modern market, supported by the expertise of BDO Zambia.

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In a significant move to bolster business

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