Mining Expert, Norman Mbazima, has called for deliberate government policies and targeted financing to accelerate mineral processing and manufacturing in Zambia and across Africa.
Mr Mbazima says African countries must intentionally develop downstream industries by investing in electricity, technology, infrastructure and financing mechanisms that support local mineral processing and manufacturing.
He was speaking today during a panel discussion on the sidelines of the 2026 Zambia Mining and Investment Insaka (ZAMII) being held in Lusaka, under the theme: Transforming Africa’s Mining Landscape: Regional Value Chains, Shared Prosperity and Empowering Communities.
Mr Mbazima cited Japan, South Korea and China as countries that had successfully established smelting and refining industries despite having limited mineral resources, through deliberate government support and investment.
“African countries should adopt similar strategies to ensure more minerals are processed locally instead of being transported over long distances for refining elsewhere,” he added.
Mr Mbazima stressed that developing industries beyond mineral extraction requires governments to identify potential investment barriers and implement measures to address them.
And, Mining Consultant, David Ng’andu, called for increased access to foreign investment and international capital markets to finance mineral exploration and mine development in Zambia.
Mr Ng’andu pointed out that Zambia needs to strengthen pathways through which local mining companies, particularly junior explorers, can access international financing to reduce the financial barriers associated with mineral exploration.
He cited the Democratic Republic of Congo (DRC) and Peru as examples of countries that have significantly increased copper production through foreign direct investment (FDI) and international mining partnerships.
Mr Ng’andu said improving access to international capital markets and strengthening investor confidence could help Zambia unlock its mineral potential and increase copper production.
Meanwhile, Botswana’s Presidential Projects Advisor, Jerry Chitube, has urged Zambia to use public resources strategically to attract private investment in the mining sector without exposing government to excessive financial risks.
“Government participation should focus on creating an enabling environment for investment rather than using public funds to absorb risks that should be borne by private investors,” he added.
Mr Chitube explained that government should prioritise geological studies and other project preparation activities that improve the bankability of mining projects and attract investors.
“Institutions such as the Industrial Development Corporation (IDC) could consider carefully structured minority equity investments alongside Development Finance Institutions (DFIs) to support viable mining projects,” he added.
Mr Chitube also called for a more disciplined approach to government guarantees, saying these should be partial, appropriately priced, time-bound and restricted to clearly identified risks.
He further said fiscal incentives should be linked to actual investments in mineral exploration, processing and manufacturing rather than blanket tax holidays that may not deliver meaningful economic benefits.
Ghanaian Chief Technical and Operations Officer for Mineral Income and Investment Fund, Kwabena Barning, also called on Zambia to adopt innovative financing models and long-term investment strategies to unlock the full potential of its mining industry.
Mr Barning said Zambia should explore alternative financing mechanisms, including royalty streaming, staged project financing and equity markets, to support mining projects from exploration through to production.
“Despite Zambia’s established position as a mining jurisdiction, relatively few mining companies were listed on the local stock exchange or accessed innovative financing arrangements,” he added.
He said Zambia should consider financing models that allow mining companies to secure funding in stages, beginning with exploration and progressing to advanced exploration before accessing debt financing when projects become bankable.
Meanwhile, United States Trade and Development Agency (USTDA) Representative, Sonja Horgen, said innovative financing structures and project preparation support is key to attracting investment into Zambia’s critical minerals sector.
Ms Morgan said such interventions help reduce investment risks and increase the appetite of banks and other financial institutions to finance projects.
“USTDA works with various financial institutions and development partners, including the United States International Development Finance Corporation, the World Bank and the African Development Bank, to facilitate long-term financing opportunities,” she said.
She said financing options could also include public-private partnerships (PPPs), offtake agreements and blended finance arrangements to support infrastructure development and critical minerals projects.
Ms Morgan said the agency remains open to different financing models, depending on the needs and requirements of individual projects.
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