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LUSAKA — Mining companies in Zambia are calling on the government to introduce new tax incentives, expand greenfield exploration, and address severe power shortages as Africa’s second-largest copper producer targets a near-tripling of its annual output.
The demands come ahead of the country’s general election, where more than 8 million voters are set to cast their ballots on August 13. Incumbent President Hakainde Hichilema is widely expected to secure re-election, a result that analysts say points toward policy continuity for the nation’s cornerstone industry. Mining accounts for approximately 9% of Zambia’s gross domestic product, 72% of foreign exchange earnings, and nearly half of total state revenue.
Zambia aims to raise its annual copper production to 3 million metric tons, capitalizing on a tight global market driven by the energy transition, electric vehicle production, and power grid expansions. Benchmark copper futures have surged more than 40% over the past year, trading around $14,000 per ton.
Achieving the ambitious output target will require structural policy adjustments and heavy capital investment in processing and infrastructure.
“The ambition to triple copper production will require stronger incentives for exploration, local manufacturing and value addition, alongside major infrastructure investments,” said Ayo Sopitan, Chief Executive Officer of Metalex Commodities. Sopitan added that export duties on concentrates continue to weigh on miners without refining capacity, stressing the need for stronger rule of law and clear dispute-resolution mechanisms.
Industry executives credit Hichilema’s administration with restoring investor confidence since taking office in 2021, helping attract more than $10 billion in capital commitments through tax stabilization and increased engagement.
“Tax reforms and closer engagement with miners have helped attract over $10bn in investment since 2021,” said Anthony Malenga, President of the Zambia Chamber of Mines. However, Malenga noted that sustaining the trajectory will require a robust exploration pipeline, supported by higher spending on greenfield projects and licensing overhauls.
Operational hurdles remain a key concern for investors. Analysts highlight severe electricity deficits and rising labor pressures as major risks to expansion, with the industry estimating that at least 2,000 additional megawatts of power capacity must be brought online to meet the government’s long-term output goals.
