Join our community of SUBSCRIBERS and be part of the conversation.

To subscribe, simply enter your email address on our website or click the subscribe button below. Don't worry, we respect your privacy and won't spam your inbox. Your information is safe with us.

32,111FollowersFollow
32,214FollowersFollow
11,243FollowersFollow

News

Company:

Saturday, January 4, 2025

Middlemen Again? Zambia’s Betrayal of Its Copper Potential

Share

In June 2024, Zambia’s Cabinet made an ambitious move, approving the creation of a state-owned company to trade in minerals, including copper. The goal was clear: to establish a Special Purpose Vehicle (SPV) that would ensure Zambians benefit more directly from the country’s abundant mineral wealth. This plan aimed to break away from the dividend payment model by adopting a production-sharing mechanism and directly competing with global commodity traders such as Glencore Plc and Trafigura.

Yet, just months later, the Industrial Development Corporation (IDC) announced a partnership with Mercuria Energy Trading South Africa to market and trade Zambia’s copper abroad. Mercuria, controlled by Swiss traders Marco Dunand and Daniel Jaeggi, is a familiar name in the international commodity trade, raising critical questions: What happened to the Cabinet-approved plan for Zambia’s mineral marketing? Why is Zambia reverting to middlemen instead of adopting a model like Chile’s?

Chile, the world’s largest copper producer, has demonstrated what a nation can achieve when it prioritizes its people’s interests. With state-controlled entities like the Chilean Copper Commission and Codelco, the country manages every aspect of the copper value chain, from exploration to marketing. This strategic control maximizes revenue, fosters accountability, and distributes wealth equitably. Zambia, in contrast, remains trapped in a cycle of dependency on foreign investors and intermediaries that reap substantial profits while leaving the nation with crumbs.

The recent IDC announcement risks perpetuating this cycle. For decades, Zambia’s copper trade has been dominated by commodity traders like Trafigura and Glencore. These entities have enriched themselves at the expense of Zambia, exploiting weak systems and leaving behind environmental and economic scars. Mercuria’s inclusion as yet another middleman undermines the government’s vision of establishing local control and transparency over the country’s resources.

The decision to involve Mercuria is particularly disheartening given Zambia’s history. The defunct Metal Marketing Corporation of Zambia (Memaco), once a subsidiary of ZIMCO, effectively marketed Zambia’s copper production. Its closure left a gap that foreign traders quickly filled, and the country has struggled to regain control ever since. The initial Cabinet plan to create a similar entity offered hope of reclaiming sovereignty over Zambia’s minerals. Why abandon this vision in favor of old, exploitative practices?

Zambia is a nation blessed with immense mineral wealth. Yet, the disconnect between this wealth and the everyday lives of Zambians is stark. Why do we continue to rely on foreign intermediaries to manage our resources? Why can’t we emulate Chile, a country that transformed its copper into a tool for national prosperity? The answers lie in leadership, vision, and the courage to break away from systems that have failed us.

The time for action is now. Zambia must reject the middleman model and establish a state-controlled entity that not only markets copper but invests in refining and downstream industries. This is about more than revenue it is about jobs, pride, and national progress. Our leaders must prioritize the interests of Zambians and make decisions that reflect the country’s potential.

We deserve better. As a nation, we must demand better. Zambia’s mineral wealth belongs to its people, and it is time to manage it with transparency, accountability, and a vision for future generations. Let’s learn from Chile. Let’s reclaim our resources and build a nation that truly benefits from its abundance.

Concerned Citizen.

Mailoni Mwamba

5 COMMENTS

  1. When we allegedly corruptly sold away Mopan from IDC to a Middle Eastern company, we were told we are resting. Did we?
    Kansanshi mine also dupped us to sell government shares, giving Zambia a zero control. So our ambitious 3 million tonnes of finished copper is just as illusional as our nill control in minerals. We never learn.

  2. Stop exciting people………

    Anyways…..

    You give people a time to think and debate, which is good………

    Back to the topic…….

    , look at the geography of Chile and compare to zambia and…….

    Chile has a long coast and is nest to the hudge USA market……….

    Marketing and selling chile’s copper is easy, while for a zambia company , has to deal with complicated freight, customs and many more variables to the market……….

    A task beyond most Zambian organisations

    FWD2031

  3. We will always have middle men.Even when
    New dawn were saying they will do away with
    Middle men when negotiating debt restructuring ended up getting middle men.

  4. Is the company you mentioned a middle man or part of the SPV? In a normal SPV, each party is given a role to play in that agreement. If Mercuria Energy Trading South Africa’s is to market copper, I don’t see anything wrong with that. Infact there more transparency. This being a proactive government, I’m sure they went the SPV route

    1
    1

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading