In a concerted effort to diversify its economy and capitalise on the rapidly growing electric vehicle (EV) industry, Zambia has proactively negotiated with automakers to establish EV component manufacturing plants near its extensive copper mining sites. This initiative underscores Zambia’s strategic vision to evolve from a mere exporter of raw materials into a key player in the global EV supply chain, leveraging its vast copper reserves—an essential component in EV engines.
Copper’s Central Role in EVs and Zambia’s Mineral Wealth
Copper’s significance in the EV industry cannot be overstated. As Bloomberg reports, copper is vital for EV batteries, wiring, and motors, making it a critical resource in the transition toward cleaner transportation. Zambia, Africa’s second-largest copper producer, possesses some of the world’s richest copper deposits, positioning it uniquely to benefit from this burgeoning market. Rather than solely exporting raw copper, Zambia aims to add value by attracting manufacturers to set up nearby production facilities, thus capturing more of the economic benefits associated with downstream processing.
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Government Initiatives and Diplomatic Engagements
Finance Minister Situmbeko Musokotwane highlighted Zambia’s proactive approach during the Bloomberg Africa Business Media Innovators conference in Livingstone. He revealed that the government has been engaging with international automakers, even during recent visits to Germany, urging them to consider establishing EV component manufacturing plants within Zambia. “We have been talking, even last week when I was in Germany, telling these companies to please consider the manufacture of some of your electric vehicle components in Zambia,” Musokotwane stated. He added that these components could then be shipped to existing factories in South Africa, which currently exports EVs globally, thus creating a regional hub for EV component manufacturing—adding significant value to Zambia’s mineral wealth.
Progress in Attracting Foreign Investment
Zambia’s efforts are already bearing fruit. Last year, Build Your Dreams (BYD), the world’s largest electric vehicle manufacturer, expanded its footprint in Zambia through a partnership with Pilatus Electric Mobility Zambia Limited (PEM). This development signals growing investor confidence in Zambia’s potential as a strategic location in the EV supply chain. Such moves not only diversify Zambia’s economic base but also position the country as a vital node in the global transition toward electric mobility.
Fiscal Prudence and Regional Collaboration
While pursuing these strategic objectives, Zambia’s government remains committed to prudent fiscal policies, even as its current IMF program concludes in October. Minister Musokotwane emphasised that the cabinet has not yet decided on pursuing new international loans, signalling a cautious but forward-looking approach to economic management. He also acknowledged the decline in U.S. aid programs, noting that such support was always expected to diminish gradually, and underscoring Zambia’s focus on self-reliance and regional partnerships.
In addition to individual country efforts, Zambia’s broader strategy includes regional collaboration with the Democratic Republic of Congo (DRC). The two nations have signed an agreement to develop a regional value chain for battery and EV component production. Supported by the United Nations Economic Commission for Africa (UNECA), they are exploring blockchain-enabled traceability systems to ensure ethical sourcing of minerals—addressing a key concern for global automakers and aligning with international standards for responsible sourcing.
Zambia’s efforts to attract EV component manufacturers and develop regional mineral and battery supply chains exemplify a strategic pivot toward sustainable economic diversification. By leveraging its copper wealth, fostering international partnerships, and promoting regional collaboration, Zambia aims to emerge as a significant player in the global EV ecosystem. As the world accelerates its shift to electric mobility, Zambia’s proactive stance and strategic initiatives could serve as a model for other resource-rich countries seeking to add value and foster sustainable development.
