In a significant development for Zambia’s private sector, the Private Public Dialogue (PPD) recently held its second private sector day, with Republican President Hakainde Hichilema at the forefront of discussions. The event, which took place on December 12, 2023, saw key players from various sectors engaging in constructive dialogue on the challenges and opportunities facing the nation’s economic landscape.
Over the past year, Zambia’s private sector has celebrated significant achievements, including progress in debt restructuring and successful resolutions in the mining sector. The signing of numerous economic Memoranda of Understanding (MOUs) underscores a commitment to fostering partnerships, with more effective collaboration between the public and private sectors through the PPD platform.
Insights from Industry Leaders and key player
The high-powered delegation included Ceaser Siwale, CEO of Pangaea Securities and co-founder of The Critical Minerals Fund (TCMF). Siwale, a key figure in joint arranging the $500 million United Capital Fertilizer (UCF) note program listed on the Botswana Stock Exchange, shared insights into the opportunities within Zambia’s mining sector. He also discussed TCMF, a capital-raising vehicle targeting a billion dollars to support firms in the mining industry. It is TCMFâs mission to support the green transition while integrating and investing into the African and European supply chains in the critical minerals sector. Just back in November, Zambiaâs President Hichilema had been present at the G20 Compact with Africa 2023 (CwA) in Berlin, Germany to promote exactly such European investments into Zambia. Siwale emphasized the potential for Zambia’s mining sector to benefit from green metals in the electric car and renewable energy era.
Despite positive strides, industry leaders pointed out hurdles impacting the private sector. Ms. Kim Otteby highlighted red tape, inflationary pressures due to currency depreciation, liquidity challenges, and a rising petroleum price environment as obstacles hindering business operability and growth.
President Hichilema's Keynote Address
President Hakainde Hichilema addressed the gathering, stressing the importance of affordable capital and urging banks to lower the cost of capital. He highlighted the discrimination faced by Africa in credit rating methodologies, calling for global financial reforms to address this issue. The President also emphasized the urgency of concluding the Zambia debt restructuring for macroeconomic stability and increased headroom for investment.
President Hichilema acknowledged the progress made in the mining sector, with companies like FQM committing to injecting $1.3 billion into Zambia’s largest Nickel mine. The President also highlighted the need for collaboration between established and new businesses, emphasizing that new ventures should not be seen as threats.
Key Themes and Directives
President Hichilema outlined key themes, including the importance of a more efficient public sector, prioritizing local pharmaceutical companies in medicine procurement, and scrapping visa fees.
As Zambia navigates its private debt restructuring, the President’s call for fair global financial practices resonates both domestically and internationally. The dialogue between the public and private sectors, showcased in the PPD, remains a crucial platform for driving sustainable economic growth and addressing the challenges faced by the private sector in Zambia.
