LAST week was a momentous occasion for us as a Ministry, and I am delighted to share with you our readers that Zambia and the Democratic Republic of Congo (DRC) have signed a Common Governance Framework, called the “DRC – Zambia Battery Council”.
This common governance framework centered on the establishment of the value chain in the electric battery and clean energy sectors will also cover the development of industrial zones in DRC and Zambia. To achieve this, the two sister countries are making available sites in Katanga and Copperbelt regions.
The historic event was witnessed by our two Heads of State, the Republican President Hakainde Hichilema and his Counterpart, the Congolese President Felix Antoine Tshisekedi Tshilombo, who have both agreed to bring our two countries together to enter into an understanding to work together towards the establishment of the value chain in electric battery and clean energy.
Zambia and DRC together hold roughly 70 percent of world’s cobalt reserves. Therefore, it is essential to harmonise our strategies and development policies in the mining and industrial sector for the attainment of this undertaking.
Apart from high-grade copper and cobalt, the two countries hold significant reserves of strategic minerals, such as rich deposits of manganese, iron, lithium, graphite, nickel, phosphorous and aluminium. The complementarity of the resource endowments of our two great nations is well able to support the emergence of robust value chains across a host of manufacturing sectors such as batteries, electric cars and the renewable energy sector.
It is anticipated that the global Electric Vehicle (EV) batteries market is expected grow from US$23.74 billion last year to $25.43 billion this year. We are very delighted and optimistic that this initiative will bring about more jobs and wealth creation for our people.
Allow me to express my utmost gratitude to Africa Export Import Bank (Afrexim Bank), our lead financier and United Nations Economic Commission for Africa (UNECA) who are providing technical assistance as well as all other stakeholders who came on board to witness and support the realization of this great initiative.
As a lead financier, Afriexim Bank’s interventions would include project preparation and project finance facilities, equity investments, trade finance and guarantees, as well as advisory services. Similarly, our technical advisors, the UNECA are convinced that the project provides a golden opportunity for the two countries to move from their historic status as exporters of cheap raw materials to manufacturer and supplier of battery precursors and the related knowledge-based services.
I was elated by the sentiments from UNECA. The Executive Secretary Vera Songwe in a speech read on her behalf by the Sub-Regional Office for Central Africa director Jean Mastaki said adding value to the battery minerals, through an inclusive and sustainable industrialization, will allow the two countries to pave the way to a robust, resilient and inclusive growth pattern, which will create jobs for millions of the population, mostly the young people.
I am further happy to inform you that we have the support of higher learning institutions that will assist in research to design and develop the battery precursor and the battery required for subsequent mass production and sale.
In this regard, the University of Zambia is working with the Copperbelt University,
University of Lubumbashi, UNECA and the Steinbeis global institute (sgit) of Germany in the geological investigations and research to identify the presence and location of the requisite mineral resources as well as refining routes necessary to provide the battery sector, its required mineral inputs.
You may also wish to know that the Bank of Zambia is confident that the project will increase the country’s foreign exchange in the long run that have continued to reliance on copper exports earnings, making Zambia vulnerable to the international metal price shocks.
Central Bank Governor Denny Kalyalya believes that higher foreign exchange inflows that will contribute to the stability of the foreign exchange markets and in the process favourable inflation outcomes.
The Reserve Bank is also poised that the project will assist in creating backward and forward linkages that can catalyze the development of other economic activities such as transportation and services, leading to an increase in the gross domestic product.
In this regard, the Central bank stands ready to ensure that financial institutions help provide resources to make the project successful. I, therefore, wish to assure the nation that the deal, to which I was privileged to sign on behalf of Zambia and my counterpart, the Industry Minister Julien Kahongya on the Congolese government signifies a huge milestone for both countries as this initiative provides a great opportunity to harness mineral resource wealth and foster the development of mineral-based industrialisation and value chains.
The era of EVs is in sight, and batteries are poised to become a leading power source for mobility. Therefore, this event to cement our agreement to work together towards the development of the battery electric vehicle value chain sets us on the right path towards sustainable development and inclusive growth.
To conclude the meeting, my counterpart and I read a joint communique on behalf of our respective nations agreeing to set up Zambia-DRC Battery Council whose Executive Committee will be composed of the two Heads of State, UNECA, Afrexim Bank and the governance body of a technical committee in charge of monitoring and evaluation of the initiative.
I am very confident that the cooperation agreement will enhance the productive capacity of both counties which will stimulate growth across all sectors and hence create jobs and other business opportunities and strengthen bilateral agreements between the two countries. I, therefore, wish to thank your excellecies and everyone who chose to be a part of this journey and look forward to working towards the realization of the establishment of this great initiative.
God bless our two countries!
The author is the Minister of Commerce, Trade and Industry (MCTI).
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