As Africa’s second-largest copper producer, Zambia is positioning itself for a major expansion in its mining sector, targeting an ambitious 3 million metric tons of annual output by 2031. In 2024, production rose 12% to 820,768 metric tons, buoyed by the revival of mines that had previously been stalled by legal disputes. At the 2022 Mining Indaba, soon after a change in government, President Hakainde Hichilema made sweeping commitments to overhaul the sector, propelling Zambia to the forefront of mining reform efforts. At the time, Konkola Copper Mines remained largely inoperative, and Mopani Copper Mines, reeling from Glencore’s exit, was in search of an equity partner.
Zanaco’s Pivotal Role in Zambia’s Mining Sector
“In our most difficult moments, Zanaco was the only institution willing to extend financing. There were times we were 48 hours away from payday with no clear solution, yet Zanaco stepped in,” Zambia’s Minister of Finance, Dr. Situmbeko Musokotwane, remarked at a Zanaco-sponsored event on the sidelines of the 2025 Investing in African Mining Indaba in Cape Town.
Echoing this sentiment, Mines Minister Paul Kabuswe credited the lender with playing a crucial role in securing financing for Mopani and Konkola Copper Mines at a time when few institutions were willing to take on the risk. “Zanaco’s support was instrumental in sustaining these operations,” he said. Kabuswe also urged the bank to explore financing solutions for Zambia’s growing artisanal mining sector—a segment fraught with legal and regulatory complexities yet increasingly central to the country’s mineral output.
During a panel discussion at the Indaba, Zanaco CEO Mukwandi Chibesakunda emphasized the bank’s role in navigating Zambia’s economic challenges.
“During Zambia’s debt restructuring, when fiscal constraints were at their most severe, Zanaco was the only bank able to step in, as international lenders had largely withdrawn from the market. We saw this as an opportunity—not just to sustain operations, but to expand. Our experience shows that when local financiers take the lead, global capital tends to follow. During the recent drought, we provided $247 million in support to the agriculture and energy sectors, reaffirming our commitment to economic resilience,” Chibesakunda stated.
A Homegrown Lender Filling the Financing Gap
Zambia’s 2022 sovereign default, which triggered a credit rating downgrade and curtailed access to international financing, forced commercial banks to reassess their risk exposure. Many global lenders withdrew, creating a financing vacuum. But Zanaco, as a locally anchored institution, stepped in to fill the gap—gaining market share and driving earnings growth to levels rarely seen in Zambia’s banking sector.
Today, the landscape has shifted. Konkola Copper Mines has been returned to its original shareholder, Vedanta Resources, while Mopani Copper Mines has secured a new equity partner, International Resources Holdings (IRH), based in the Middle East. A more stable mining tax framework has also bolstered investor confidence, fueling new exploration and capital inflows. These developments position Zambia to close the production gap with the Democratic Republic of Congo, the continent’s top copper producer.
Zambia is in the middle of a climate induced drought that has adversely impacted power generation. This has inturn weighed private sector pulse and remains a threat to mining production which does consume close to 55% of the grid. The mining sector is projected to require an additional 2000 MWs of power by 2029. This calls for investment into the sector to fund projects whose completion has either stalled or requires equity partnerships to ease the power utilities balance stress position.
Under Mukwandi Chibesakunda’s leadership, Zanaco remains at the forefront of financing Zambia’s mining and broader industrial sectors, leveraging direct investments and risk-sharing partnerships to drive sustainable growth. The bank’s strategy aligns with the 2025 Mining Indaba’s central theme: “Future-Proofing African Mining Today.”
The lender posted strong earnings of K1.8 billion in after tax profits for the year 202 leading the markets in most revenue lines. As at 5pm in the capital Lusaka Zanaco’s share of price was K5.54 per share on the Lusaka Securities Exchange a 36.1% stronger position than a year ago.
The Kwacha Arbitrageur