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Copper |
Government pitches value-added manufacturing near Africa’s key copper assets
EV supply chain localization targets South African auto exports
Zambia is actively courting global carmakers to invest in electric vehicle (EV) component production near its copper mines, aiming to strengthen its position in the global energy transition. Finance Minister Situmbeko Musokotwane confirmed that discussions with automakers are ongoing, including talks held last week in Germany.
“We are urging companies to manufacture some of their electric vehicle components in Zambia,” Musokotwane said at the Bloomberg Africa Business Media Innovators conference in Livingstone. “These parts can be shipped to South Africa, where final assembly occurs for global exports—this is true value addition.”
As Africa’s second-largest copper producer, Zambia holds a strategic advantage in supplying a critical input for EV motors and wiring systems. By colocating component manufacturing with copper production, Zambia hopes to attract midstream investment and reduce reliance on raw material exports alone.
The government remains committed to fiscal discipline, Musokotwane said, even as the current IMF support program nears its October expiration. No decision has been made on whether to seek renewal. He also expressed concern about abrupt U.S. aid cutbacks to Zambia and the wider continent, though he acknowledged that reductions were anticipated.
The Zambian initiative reflects a broader trend across resource-rich nations seeking to leverage mineral wealth for domestic industrialization. By offering proximity to raw inputs and regional export routes via South Africa, Zambia is positioning itself as a future hub for EV parts within Africa’s emerging green value chains.
ScrapInsight Editorial Commentary
Zambia’s pitch to EV producers marks a strategic shift in how mineral-rich nations engage with global supply chains. As demand for copper and EV metals surges, expect more governments to insist on upstream and midstream investments. This could alter traditional procurement routes and add complexity to sourcing for automakers under ESG scrutiny.
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