Zambia has opened discussions with global car manufacturers to encourage the establishment of electric vehicle (EV) component factories near its copper mining operations, a strategic move aimed at boosting local value addition and integrating the country into the EV global supply chain.
Finance Minister Situmbeko Musokotwane, speaking at Bloomberg’s annual Africa Business Media Innovators conference in Livingstone, revealed that the government is actively engaging with automakers.
“Even last week when I was in Germany, I urged companies to consider manufacturing some of their electric-vehicle components in Zambia,” Musokotwane said.
“Those components can then be shipped to your factories in South Africa, which exports to the rest of the world. That is a powerful way of value addition.”
Zambia is the second-largest copper producer in Africa, and copper is a crucial material in the production of EV motors, batteries, and wiring systems.
The government’s pitch seeks to leverage this resource to position Zambia as a regional hub for EV component manufacturing, with the added benefit of proximity to South Africa’s well-established automotive export industry.
Musokotwane also addressed Zambia’s macroeconomic strategy, stating that the country will maintain prudent fiscal policies even after its current International Monetary Fund (IMF) program ends in October. He noted that the cabinet had not yet made a decision on whether to pursue another IMF loan.
He further criticized the sudden withdrawal of some aid programs by the United States, both in Zambia and across Africa.
While acknowledging that external assistance was always expected to diminish over time, he cautioned against abrupt cancellations.
The government’s efforts reflect a proactive shift toward industrial diversification, aiming to transform its mineral wealth into a foundation for manufacturing and sustainable economic growth in the green energy era.
SOURCE:mining.com
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