Zambia’s largest bank, Zanaco, has said that capital and technology will be key to driving the global green transition. The bank’s CEO, Mukwandi Chibesakunda, said that strengthening technology, Environment Social Governance (ESG) and capital mobilisation will aid explorations and production ramp up. This will ensure accountability to the environment and communities, and ensure availability of funds for small to medium sized enterprises in the mineral value chain.
Zambia is at a critical stage of its economic life cycle, characterised by strides towards debt restructure and leveraging off its vast mineral resources to rekindle growth. Synonymous with mining as its mainstay, the mining conversation in a modern world can not be had in isolation of decarbonisation in an ESG era.
Chibesakunda said that in the wake of the anticipated global supply constraints over the next 10 years to drive the green transition, technology and capital mobilisation will be key drivers in increasing production. Global commodity experts forecast 5.5 million metric ton copper deficit over the next decade and that refined red metal appetite will rise by 53% by 2040 against the 16% global supply growth.
The Zambian authorities led by the copper producers head of state Hakainde Hichilema are in London this week to attend the Investor Forum organised by Invest Africa in partnership with the Zambia Development Agency, a forum that has attracted international investors, fund managers and other policy makers.
As a Systemically Important Bank, Zanaco continues to lead the curve in its commitment towards supporting green transitioning with focus around key sectors including mining. The big strong reliable bank has inked a plethora of partnership such as with the Green Outcomes Fund and Green Access Fund that are poised to deepen access to finance for the purpose of greening economic sectors. Other milestones the financier has attained are partnering with British International Investments (BII) for smart and clean initiatives.
The Southern African nation in May of 2022 signed an economic memorandum with the Democratic Republic of Congo for the development of the Electric Vehicle (EV) battery project between Zambia and the Democratic Republic of Congo (DRC) and the two then, in December 2022, signed another memorandum with the US to strengthen the vehicle battery value chain.
The green transition is a major opportunity for Zambia, and Zanaco is well-positioned to support the country’s efforts to capitalize on it. The bank’s commitment to sustainability and its strong partnerships with key stakeholders will be essential to driving the green transition in Zambia.
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