Lusaka, Zambia — Zambia has signed fresh commercial agreements with Chinese investors linked to the Greater Bay Area and the Shanghai Cooperation Organisation, official statements indicate, tightening copper-sector ties as authorities brace for a weaker United States dollar.
According to local reports, the pacts were sealed this week during closed — door meetings in Lusaka attended by senior government officials and delegations from Beijing-backed entities.
The accords focus on expanding smelting capacity, rail logistics, and exploration rights around Zambia’s Copperbelt and North-Western provinces, which hold Africa’s second-largest copper reserves.
Official communiqués released after the talks describe the cooperation as a “strategic hedge” against currency volatility, noting that dollar-denominated earnings from metal exports lose purchasing power when the greenback depreciates. By deepening direct investment and trade settlement arrangements with Chinese partners, authorities aim to secure steady inflows of machinery, technical expertise, and yuan liquidity independent of dollar swings.
Sources close to the matter said the Greater Bay Area consortium will finance a new leach — processing plant scheduled to come online in 2028, while Shanghai Cooperation Organisation-linked traders will open a copper trading office in Lusaka to facilitate off-take contracts priced in yuan.
The government stated that both initiatives are expected to raise annual refined — copper output, though exact tonnage targets were not disclosed. Independent observers say the move reflects broader efforts by African producers to diversify export markets and reduce exposure to Western financial channels. Officials have not yet commented on whether the agreements include concessional borrowing terms or sovereign guarantees.
Further details are expected when parliament reconvenes next month for routine budget hearings.
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Source: Africa.
