AGP Executive Report

Kwacha Rally: The Zambian kwacha strengthened further to K17.9 per US dollar, with Bank of Zambia citing improved foreign exchange inflows from mining and foreign financial institutions. Copper Export Relief: Zambia extended the suspension of the 10% duty on copper concentrate exports to September 30 to clear smelter stockpiles amid maintenance disruptions, allocating duty-free quotas to major mines including Mopani and Lumwana. Trade Pressure: Zambia’s copper processing bottlenecks come as regional trade signals remain mixed, with Zimbabwe reporting a wider April trade deficit as exports fell. Finance for Trade: IFC and Standard Chartered launched a $300m risk-sharing facility to boost supply chain finance across eight African countries, including Zambia, targeting faster supplier payments. Mobile Payments Push: Airtel Money and Stanbic Bank rolled out mobile wallet payments on POS machines in Zambia, making merchant and consumer transactions easier. Mining Expansion Watch: Vedanta’s CopperTech applied to sell shares on the New York market to fund its Zambian copper complex, while Moore Global expanded into Zambia with Moore Zambia CFS. Energy Access: Rural electrification projects worth K463m were handed over to Zesco, reinforcing efforts to narrow the urban-rural electricity gap. Health Preparedness: Isoka launched a second round of the nOPV2 polio vaccination campaign, while Hurungwe activated Ebola emergency preparedness amid cross-border risk.

Election Security: North-Western Province Police Commissioner Brighton Siwale orders officers to act firmly against political violence and public disorder, saying the move protects democratic governance, unity, stability and investor confidence. Public Health: Zambia launches the second round of the nOPV2 polio vaccination campaign in Isoka District, targeting children under five after detection of cVDPV2 in Lusaka’s sewer system earlier this year. Copper Policy: Zambia extends the 10% duty suspension on copper concentrate exports to 30 September 2026 to help clear stockpiles while smelters undergo maintenance and repairs. Energy & Climate: A report highlights how climate change is draining hydro-power generation, raising concerns for water-dependent power systems across the region. Finance & Markets: The kwacha continues to appreciate, closing around K17.9 per US dollar, driven by mining inflows and foreign financial institutions. Payments Innovation: Airtel Money and Stanbic Bank roll out mobile wallet payments on Stanbic POS machines, boosting cashless trade for merchants. Regional Minerals: UN ECA launches a €15m project to strengthen responsible critical minerals value chains across SADC, including Zambia. Corporate/Mining IPOs: Vedanta’s CopperTech Metals targets a New York IPO as it seeks funding for Zambia’s Konkola Copper Mines expansion.

SADC Fisheries Oversight: Zambia’s Sakwimba Constance Mwanza joins the renewed SADC Regional Fisheries Monitoring Control and Surveillance Centre board in Maputo, with Namibia’s Stanley Ndara reappointed as chair as the bloc pushes tougher illegal fishing controls and a regional fishing vessel register. Debt & Markets: PwC Zambia says Zambia’s planned buyback of more than US$1.3bn in Eurobonds is a key step in debt recovery, supported by a US$600m AfDB facility aimed at lowering future servicing costs and boosting investor confidence. Copper Supply Tightening: Vedanta’s Konkola Copper Mines starts a 60-day Nchanga smelter shutdown for maintenance, with Mopani and Chambishi also offline, raising the risk of tighter copper and sulphuric acid supplies. Finance for Students: HELSB reports recovering over K1.01bn in student loans from former public university students (2018–2026), citing improved compliance and digitised processes, with plans to consider extending loans to private universities. New Investment in Agriculture: FPM Agro Mechanic begins setting up an assembly plant in Lusaka South Multi-Facility Economic Zone to build and export agricultural equipment, targeting jobs and higher farm productivity. Nature Bond Deal: Ecobank issues a US$450m Nature Bond on the London Stock Exchange, priced on strong demand, to fund biodiversity protection via farmers and sustainable agriculture. Health & Policy: Government says UNZA sanitation will not slip back, while Zambia also backs stronger regional disaster risk data-sharing. Regional Trade & Travel: The US plans to cut visa-processing sites across Africa to 20 hubs in 19 countries, potentially redirecting Zambian applicants to regional centres.

Eurobond buyback and investor reaction: PwC Zambia says the government’s planned US$1.3bn+ Eurobond buyback is a key debt-recovery step that could lower future servicing costs, backed by an AfDB facility—though bondholders are pushing back, arguing the tender terms are harmful. Debt and markets: Zambia’s 2053 dollar bond reportedly rose as buyback talks continued, while creditor holders signalled opposition to the process. Mining and power supply: Vedanta’s Konkola Copper Mines has started a 60-day maintenance shutdown of its Nchanga smelter, raising short-term supply concerns for copper and sulphuric acid amid broader industry outages. Energy policy: ZCCM-IH and Wonderful Group move to develop a 600MW coal power project, framing it as a response to Zambia’s electricity deficit and ongoing load-shedding pressures. Agribusiness investment: FPM Agro Mechanic begins setting up an agricultural equipment plant in Lusaka’s economic zone, aiming to assemble for local use and export across the region. Food security: Lusaka District has been assigned a FRA maize purchase target of 2,800 metric tons of grade A white maize for strategic reserves. Social protection and jobs: Government calls for stronger, resilient social protection systems across Africa, while UPND youth leaders pitch a second-term focus on wealth creation and labour reforms. Elections and politics: UPP joins the UPND alliance ahead of August polls, while pension reform and worker protection pledges continue to feature in campaign messaging. Regional cooperation: Zambia urges stronger cross-border collaboration on disaster risk management, stressing shared data and early warning systems.

Zambia–Korea Economic Push: Lusaka is urging South Korea to move from pledges to financing, industrial investment and technology partnerships, with deputy cabinet secretary Siazongo Siakalenge calling for implementation roadmaps as Seoul expands Africa engagement. Energy Security Deal: ZCCM-IH has agreed terms with China’s Wonderful Group Services to build a 600MW coal power plant in Sinazongwe, aimed at easing Zambia’s baseload shortfall. Debt Cost Relief: Economist Prof Lubinda Haabazoka backs Zambia’s Eurobond buyback plan, saying repurchasing expensive bonds could cut future debt servicing and free budget space. Rural Connectivity: Government has started feeder roads worth K230m in Rufunsa and Luangwa under the World Bank-backed Improved Rural Connectivity Project, targeting completion by Dec 2026. Mining Legal Shock: Trafigura has won a $92m London arbitration award against ZCCM Investments over a Konkola Copper Mines prepayment dispute. Education & Compliance: Zambia’s public is reminded to be cautious as Ghana’s GTEC flags 70 unrecognised tertiary institutions, including some operating in Zambia. Health & Safety: Africa CDC warns Ebola risk is rising due to lack of licensed vaccines for the Bundibugyo strain and intense cross-border movement, with Zambia listed among high-risk countries. Sports Sponsorship: First Capital Bank and Hashtag Fitness launch a K40m regional padel cup across countries including Zambia, feeding into a finale in Botswana.

Debt Management: Zambia has launched a tender offer to repurchase over US$1.36bn of Eurobonds due in 2053, using a newly secured US$600m concessional facility from the African Development Bank plus domestic resources—aimed at lowering long-term debt costs and easing future repayment pressure. Mining & Legal Risk: Trafigura has won a US$92m arbitration award against ZCCM Investments Holdings over a prepayment dispute tied to Konkola Copper Mines, with ZCCM evaluating its next legal steps. Inflation & Food Prices: Inflation fell to 6.6% in May (from 6.8% in April), with economists linking the drop to improved food supply from the harvest season—though election stability remains key. Elections & Governance: The Advocates for National Development and Democracy (ANDD) urged all parties to publish election manifestos early to strengthen accountability and allow voters to compare policies. Public Health & Regional Risk: Africa CDC warns the Ebola situation in the DRC and Uganda is high-risk due to lack of licensed vaccines and intense cross-border movement, naming Zambia among countries at high risk. Energy Transition: A wider Africa energy shift is accelerating toward solar, wind and battery storage, with Zambia cited in regional renewable build-out momentum.

Debt Management: Zambia has started a buyback of its $1.36bn 2053 Eurobond, offering $780 per $1,000 tendered by 5 June (then $740 later), funded by a $600m AfDB loan plus domestic resources—aimed at avoiding a coupon step-up and lowering future debt costs. Energy Transition: Africa’s power build-out is shifting fast toward solar, wind and battery storage, with Zambia linked to a $1.5bn China-backed energy deal featuring 300MW solar, 300MW wind and 300MW coal. Power & Markets: Zambia wrapped up AfDB Annual Meetings with renewed investor confidence, citing progress on debt restructuring, fiscal reforms and inflation stabilisation. Digital Inclusion: IHS Towers says it cut emissions intensity by 21.4% in 2025 and trained 140,000 students in digital skills, including STEM training for learners in Zambia. Governance & Enforcement: The ACC arrested a Mulobezi WDC member over K200,000 conflict-of-interest charges, while DEC in Central Province intercepted a bus with 3.1kg cannabis and codeine cough syrup. Local Economy: Zambia’s informal traders and market infrastructure continue to attract donor support, including Switzerland’s $200,000 push for safer trading sheds in the region.

Debt Management & Markets: Zambia has started buying back Eurobonds, offering about 78 cents on the dollar for more than US$1.3bn, funded by a US$600m AfDB loan plus domestic resources—aimed at avoiding a costly interest “step-up” and signalling confidence as reserves rise. Clean Energy & Climate Finance: Zambia also launched a US$600m debt-for-energy initiative, while the AfDB and Italy unveiled a clean cooking programme in Africa targeting one million households and cutting millions of tonnes of CO2. Public Finance & Investor Sentiment: Zambia concluded AfDB Annual Meetings with renewed investor confidence, citing progress in debt restructuring, fiscal reforms and inflation stabilisation. Anti-Corruption & Enforcement: The ACC arrested a Mulobezi WDC member for failing to disclose interest linked to a K200,000 empowerment loan, and the DEC intercepted a bus in Kabwe carrying cannabis and codeine. Health Security: Zambia confirmed two suspected Ebola cases tested negative, but keeps screening and surveillance high amid rising regional risk. Trade & Business: Switzerland funded a Bulawayo market revamp for informal traders with US$200,000, supporting safer trading spaces.

Debt Management: Zambia has launched a cash tender offer to repurchase its $1.36bn 2053 bond, offering $780 per $1,000 principal for early tenders (rising pressure to cut future servicing costs). Macroeconomic Signals: Inflation eased to 6.6% in May (from 6.8% in April) as food prices cooled, while non-food inflation edged up on fuel and medicines. Trade Performance: Zambia recorded a K3.5bn trade surplus in April, driven by higher exports and lower imports, with non-traditional exports growing. Public Health Watch: Zambia says two suspected Ebola cases tested negative, but authorities are keeping high alert and tightening screening at entry points as the DRC outbreak worsens. Energy & Infrastructure: Zimbabwe announced a multi-billion power grid and fuel overhaul to reduce reliance on imported petroleum, while Zambia’s energy access push continues with donated solar mini-grid equipment for schools and health centres. Business & Investment: Nampak reports continued profitability and debt reduction despite muted demand, and Koryx Copper completed its move to Luxembourg while advancing copper exploration in Zambia and Namibia. Governance & Accountability: DEC arrested deputy ambassador Tom Michelo over alleged investor swindling, prompting his removal from post. Local Economy & Compliance: Nine people were arrested in Mpulungu for trading and transporting fish during the Lake Tanganyika fishing ban.

Inflation Watch: Zambia’s annual inflation eased again to 6.6% in May 2026 (from 6.8% in April), with food inflation slowing to 6.9% and non-food rising to 6.1%, signalling steadier prices but still-mixed cost pressures. Trade Balance: Zambia recorded a K3.5 billion trade surplus in April 2026, up from K900 million in March, as exports edged up while imports fell 9.3%, with non-traditional exports jumping 20.9%. Digital Economy: SMART Zambia and Huawei signed an MoU to build a National AI Data Centre and train 5,000 ICT professionals by 2028, aiming to roll out AI services across government ministries. Energy Access: Government received solar mini-grid equipment worth US$350,000 for Kaumbwe, including PV and battery storage for schools and rural health centres. Mining & Investment: Koryx Copper completed its move to Luxembourg and is advancing its Haib copper project in Namibia while building a Zambia exploration portfolio. Business & Finance: Abbey Mortgage Bank shareholders in Nigeria approved fresh capital raising, while IHS Towers flagged $45m invested in communities since 2017. Policy & Governance: Zambia launched a Kafue Flats ecosystem restoration project with WWF and the International Crane Foundation to protect wildlife and support livelihoods.

Mining & Jobs: President Hakainde Hichilema says private sector revenue is key to Zambia’s growth, praising Barrick Mining’s US$250m local procurement and urging faster delivery on the Lumwana Super Pit project to expand employment and infrastructure. Energy Access: Government welcomes a US$350,000 Chinese donation of solar mini-grid equipment for Kaumbwe (Petauke), including PV plus storage to power nine schools and five rural health centres. Trade Policy: Zambia’s ambassador to China says Beijing’s zero-tariff treatment for 20 African countries will boost exports, improve the trade balance and support jobs. Digital Economy: Former Technology Minister Felix Mutati lauds BongHive’s 15 years of backing tech entrepreneurs, urging deeper AI adoption to strengthen Zambia’s innovation push. Elections & Governance: Police in Solwezi urge peace ahead of August 13 polls, warning against mob justice and urging citizens to report suspicious activity. Finance & Markets: Traders expect the kwacha to strengthen on copper-driven inflows, while Ghana and Uganda face FX pressure. Regional Business: AfCFTA-linked air cargo corridors are cutting costs for exporters, with Nigeria-East/Southern Africa routes cited for major savings. Energy Transition Debate: Parliament is set to install solar panels in Ghana’s parliamentary enclave as lawmakers push “awareness to action” on renewables. Recognition: Dr Situmbeko Musokotwane wins Africa’s Finance Minister of the Year at the African Banker Awards, crediting Zambia’s reform and debt restructuring progress.

Finance & Recognition: Zambia’s former Finance and National Planning Minister Situmbeko Musokotwane was named Africa’s Finance Minister of the Year at the 2026 African Banker Awards in Brazzaville, praising efforts on macro stability, debt restructuring and investor confidence. Inflation Watch: Zambia’s inflation eased to 6.6% in May from 6.8% in April, a sign of improving price stability amid fiscal discipline and debt reforms. Elections Rules: A constitutional change means candidate withdrawals after nominations won’t disrupt August elections; the process continues with remaining candidates, reducing costly re-runs. Public Finance Compliance: Ghana’s labour group GFL commended 61 state CEOs for meeting the April 30 audited accounts deadline, pushing stronger accountability in public institutions. Housing Finance Push: Government launched “Bondi Yanga” with ZNBS to expand affordable housing finance as Zambia’s housing deficit tops 1.5 million units. Energy & Water: Zambezi River Authority joined the International Hydropower Association, reinforcing regional hydropower and water stewardship plans. Health Crisis: Ebola in eastern DRC surged past 1,000 suspected cases, prompting tighter border controls across the region. Mining & Uranium: Atomic Eagle upgraded uranium resources at Muntanga North in Zambia, reporting a 24% resource increase and refining new drill targets.

Debt & Growth Watch: The IMF says Zambia has restored macro stability, with inflation down to 6.8% in April and reserves at $6.4bn, but warns fiscal pressure is rising ahead of Aug. 13 elections, with 2026 growth revised to 4.3% and inflation projected to 8.5%. Housing Finance: Government and ZNBS launched the “Bondi Yanga” housing finance campaign to tackle a 1.5m-unit housing deficit by expanding access to affordable mortgages. Mining & Industry: ZCCM-IH and Wonderful Group signed a US$30m Ndola lime-and-cement joint venture (55/45), starting with a 600tpd lime plant in 2026. Uranium Update: Atomic Eagle refined uranium drill targets at Muntanga North after completing 53km of ground radiometric surveys, with drilling expected soon. Agriculture: Zambia projects a record 4.94m tonnes maize harvest for 2025/26, signalling continued recovery after drought-hit seasons. Trade & Investment: Zambia seeks to deepen Zambia–US economic ties beyond aid, while China is reported to be interested in buying up to 3m tonnes of soybeans. Energy Finance: Battery storage is flagged as key to making solar projects bankable across Africa, with Zambia listed among priority markets.

Critical Minerals Strategy: Zambia says it will strengthen its critical minerals strategy to move from extraction to value addition, industrialisation and jobs, with priorities including better geological mapping and resource management. Energy & Investment: ZCCM-IH and Wonderful Group have launched a $30m joint venture to revive Ndola Lime, restoring industrial lime and later cement production in three phases. Agribusiness & Food Security: Government projects a record 4.9 million metric tonnes of maize in 2025/26, up from 3.8m last year, aiming to support a surplus for regional trade and lower food pressure. Digital Economy: Smart Zambia and Huawei sign an MoU for a National AI Data Centre and training of 5,000 ICT professionals by 2028 to speed up AI-enabled public services. Banking: Fidelity Bank (Nigeria) reports 37.9% growth in Q1 gross earnings to N434.95bn, reflecting continued market expansion. Politics & Governance: Government rejects Patriots for Economic Progress claims that its Registrar of Societies records were altered, saying the application was never processed and records stayed consistent. Public Safety: Police in Kasama arrest suspects over counterfeit Kwacha notes, recovering K33,500 in suspected counterfeit cash. Diplomacy: President Hichilema receives letters of credence from several ambassadors, stressing peace and economic stability as pillars for trade and investment cooperation.

Maize Boom: Zambia is projected to harvest about 4.9 million metric tonnes of maize in 2025/26, up from 3.8 million last season, with officials citing favourable weather and targeted support—raising hopes for lower food prices and bigger regional exports. Energy & Industry Deals: ZCCM-IH and Wonderful Group will invest $30m to revive Ndola lime production through a JV, while Firering increased its stake in Limeco and Sanlam Alternative Investments bought 10% of GreenCo for $10m, backing bankable power-market infrastructure. Mining Legal Clarity: Arc Minerals says it has settled all outstanding litigation in Zambia, clearing the way to focus on exploration at Kabompo West. Health & Security: WHO warns Ebola in eastern DRC is worsening as violence blocks response, and Zambia also made headlines with police arresting suspects over counterfeit kwacha in Kasama. Diplomacy & Trade: President Hichilema says Zambia is accelerating reforms to attract trade and investment after debt restructuring, while Ukraine signals plans to open an embassy in Zambia as it expands Africa ties.

Renewables Momentum: Africa’s power plans are tilting fast to solar, wind and battery storage, with Zambia named in a new China-backed $1.5bn deal that bundles solar, wind and even coal for steadier supply. Maize Outlook: Zambia is forecasting a record 4.937m tonnes of maize for 2025/26, up 27.8%—a boost for food security and agro-business. Digital Push: Vice President Mutale Nalumango has launched the 2026 Zambia Mobile Congress with Huawei to speed up AI, cloud and connectivity, arguing farmers, nurses and students must benefit. Finance Watch: Fidelity Bank’s Q1 profit in Nigeria fell 18.25% to N74.47bn, dragging its shares to a new low. Ebola Alarm: In DR Congo, Ebola response is being hit by attacks on treatment centres and patients fleeing—while neighbouring countries tighten borders, raising fears of shortages. Local Governance Scrutiny: Windhoek’s mayoral trip to Azerbaijan is being questioned over costs and whether residents gained practical value.