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ABSTRACT
This article uses a broad conceptual framework of economic diplomacy to examine the efficacy of Zambia’s engagement with foreign governments, regional and international organisations, and companies, in the pursuit of investment and trade partners for its mining industry. It argues that successive presidents have had an important impact on investment in mining in two ways – through their balancing of international partnerships and economic diplomacy, and through their national economic and social policy agendas. The article provides an initial examination of the Hichilema government in Zambia and how it has balanced implicit tensions among international actors, international and local priorities, and domestic stakeholders, in the context of the growing demand for ‘green minerals’. This article concludes that further investment in Zambia’s mining sector to meet national development ambitions requires a broadening of the government’s economic diplomacy beyond a presidency-centric approach to a holistic strategy encompassing domestic institution development and regional cooperation.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 H. Hichilema, “Speech Delivered by President Hakainde Hichilema at the Mining Indaba 2022,” 2022. Financial Insights Zambia, https://fizambia.com/speech-delivered-by-president-hakainde-hichilema-at-the-mining-indaba-2022/
2 H. Hichilema, Inauguration Speech by the President of the Republic of Zambia His Excellency Mr Hakainde Hichilema Delivered on Tuesday 24th August 2021 at the National Heroes Stadium Lusaka,” High Commission of Canada to the Republic of Zambia, 2021. http://zambiahighcommission.ca/wp/wp-content/uploads/inauguration-speech-by-the-president-of-the-republic-of-zambia.pdf
3 See for example: Reuters, “First Quantum Minerals approves $1.25 billion mine expansion in Zambia,” 9 May 2022, 2022. https://www.reuters.com/world/africa/first-quantum-minerals-approves-125-bln-mine-expansion-zambia-2022-05-09; Reuters, “Zambia, UAE to develop $2 billion solar projects,” 17 January 2023, 2023. https://www.reuters.com/business/energy/zambia-uae-develop-2-billion-solar-projects-2023-01-17
4 K. Rana, “Economic Diplomacy: The Experience of Developing Countries,” In The New Economic Diplomacy: 4th Edition, ed. N. Bayne and S. Woolcock (Abingdon: Routledge, 2017). 207.
5 N. Bayne and S. Woolcock, “What is Economic Diplomacy?” In The New Economic Diplomacy: 4th Edition, ed. N. Bayne and S. Woolcock (Abingdon: Routledge, 2017). 1; K. Rana, “Economic Diplomacy: The Experience of Developing Countries,” In The New Economic Diplomacy: 4th Edition, ed. N. Bayne and S. Woolcock (Abingdon: Routledge, 2017). 207.
6 Bayne and Woolcock, The New Economic Diplomacy. (Routledge, 2017).
7 T. Soobramanien, “The Economic Diplomacy of Small and Poor Countries in the Global Trading System,” In The New Economic Diplomacy, ed. Bayne and Woolcock (Routledge, 2017).
8 A. Aloo, “The Place of Africa in the International Community: Prospects and Obstacles,” Open Access Library Journal 3, (2016): 1–14. doi: 10.4236/oalib.1102549
9 S. K. Afesorgbor, “Economic Diplomacy in Africa: The Impact of Regional Integration versus Bilateral Diplomacy on Bilateral Trade,” Max Weber Programme Working Paper 2016/18, European University Institute, 2016. https://cadmus.eui.eu/bitstream/handle/1814/43144/MWP_2016_18.pdf;sequence=1
10 U. W. Chohan, “Economic Diplomacy: A Review” CASS Working Papers on Economics & National Affairs, Working Paper ID: EC007UC, 2021, 2021. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3762042; and N. Bayne and S. Woolcock, “What is Economic Diplomacy?,” 2017.
11 R. Putnam, “Diplomacy and Domestic Politics: The Logic of Two-Level Games,” International Organization 42, no. 3 (1988): 427–60 https://www.jstor.org/stable/2706785?seq=8#metadata_info_tab_contents
12 R. Putnam, 1988.
13 Eugénia da Conceição-Heldt and Patrick A. Mello, Two-Level Games in Foreign Policy Analysis, Oxford Research Encyclopedia of Politics (New York & Oxford: Oxford University Press, 2017) (DOI: 10.1093/acrefore/9780190228637.013.496). https://www.researchgate.net/publication/315698803_Two-Level_Games_in_Foreign_Policy_Analysis
14 J. E. Strongman, Strategies to attract new investment for African mining (Washington, D.C.: World Bank Group, 1994). http://documents.worldbank.org/curated/en/349851468767422230/Strategies-to-attract-new-investment-for-African-mining
15 J. E. Strongman, 1994.
16 C. Grant Makokera, “South African economic diplomacy: Engaging the private sector and parastatals,” ISS Paper 280, 2015. https://www.africaportal.org/documents/12484/Paper280.pdf
17 R. Mudida, “Emerging Trends and Concerns in the Economic Diplomacy of African States,” International Journal of Diplomacy and Economy 1, no. 1, (2012): 95–109, https://su-plus.strathmore.edu/handle/11071/5477
18 This journal and its home institute the South African Institute of International Affairs have been major platforms for discussion, debate, and research on economic diplomacy in South Africa and Africa.
19 T. Leon. “Economic Diplomacy and Political Leadership: An Alternative Foreign Policy Vision for South Africa,” South African Journal of International Affairs 8, 2001 – no. 2 (2009). https://www.tandfonline.com/doi/abs/10.1080/10220460109545357
20 B. Vickers, “South Africa's Economic Diplomacy in a Changing Global Order,” in South African Foreign Policy Review, ed. C. Landsberg and J. A. Van Wyk (Pretoria: Africa Institute of South Africa (AISA) Press, 2012a); https://www.chathamhouse.org/2017/11/south-africas-economic-engagement-sub-saharan-africa/about-author
21 C. Grant Makokera, 2015.
22 M. Qobo, “Refocusing South Africa's Economic Diplomacy: The ‘African Agenda’ and Emerging Powers,” South African Journal of International Affairs 17, 2010 – no. 1, (2010): 13–28. https’://www.tandfonline.com/doi/full/10.1080/10220461003763833
23 C. Vandome, “South Africa’s Economic Diplomacy in Africa,” in South African Foreign Policy Review Volume 4, ed. L. Masters, J-A. van Wyk, and P. Mthembu (Cape Town: HSRC Press, 2022a).
24 A valuable overview of this literature can be found in A. O. Idowu and O. Ogunnubi, “Nigeria’s soft power and economic diplomacy,” Journal of African Foreign Affairs 5, no. 2 (2018): 189–206. https://www.jstor.org/stable/26664069?seq=9#metadata_info_tab_contents
25 See for example: L. Wanyama, “The Economic Diplomacy of Kenya’s Regional Interests,” SAIIA occasional paper No 137, South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/02/Occasional-Paper-137.pdf; S. A. Yeboah. “Economic Diplomacy and National Development Ghana Under Kufuor (2001–2008): “Mammon’ and good neighbourliness,” International Journal of New Economics and Social Sciences, 2019; 10, no 2, 2019. https://ijoness.com/resources/html/article/details?id=198242&language=en
26 Muresan, A. (2020) “Optimising South African Economic Diplomacy,” Global Insight Issue 139, Institute for Global Dialogue, https://www.jstor.org/stable/pdf/resrep30646.pdf
27 Ndakaripa, M. (2020) “Zimbabwe is Open For Business’: Aspects of Post Mugabe Economic Diplomacy,” South African Journal of International Affairs 27, 2020 - no. 3. https://www.tandfonline.com/doi/full/10.1080/10220461.2020.1826355
28 M. Ndakaripa, 2020.
29 G. J. Ickenbetty, “Why The Liberal World Order Will Survive,” Ethics & International Affairs 32, no. 1 (2018): 17–29, https://scholar.princeton.edu/sites/default/files/gji3/files/why_the_liberal_world_order_will_survive.pdf
30 B. J. Ndambwa, and A. W. Siwale, “Reinterpreting Domestic Sources of Zambia’s Foreign Policy: The Party and President,” Journal of Contemporary Governance and Public Policy 3, no. 1. (2022).
31 B. J. Ndambwa, and A. W. Siwale, 2022.
32 B. J. Ndambwa, and A. W. Siwale, 2022.
33 FQM, “Sentinal Project Overview,” First Quantum Minerals, 2022.https://first-quantum.com/English/our-operations/default.aspx#module-operation--sentinel (accessed February 19, 2022)
34 ZCCM Investment Holdings PLC, ‘Chibuluma Mines PLC’, https://www.zccm-ih.com.zm/investments/mining-assets/chibuluma-mines-plc/
35 Confidential interview with mining industry figure, Lusaka, March 2022.
36 Confidential interview, Lusaka, March 2022.
37 R. Harvey, Can Zambia’s Copper become a Flywheel for Industrialisation? SAIIA occasional paper 300 (Johannesburg: South African Institute of International Affairs, 2019).
38 P. Mususa, “Getting By’: Life on the Copperbelt after the Privatisation of the Zambia Consolidated Copper Mines,” Social Dynamics 36, no. 2, (2010): 380–94.
39 A. Fraser, “Introduction: Boom and Bust on the Zambian Copperbelt’ in Zambia, Mining, and Neoliberalism: Boom and Bust on the Globalized Copperbelt, ed. A. Fraser and M. Larmer (New York: Palgrave Macmilan, 2010).
40 P. Mususa, 2010.
41 Zambian Human Rights Commission, “National Baseline Assessment on Business and Human Rights: Zambia,” 2016. https://globalnaps.org/wp-content/uploads/2018/08/zambia-nba.pdf
42 Zambian Human Rights Commission, 2016.
43 S. Sishuwa, “‘Join Me to Get Rid of this President’: The Opposition, Civil Society and Zambia’s 2011 Election,” in Democracy and Electoral Politics in Zambia, ed. T. Banda, O. Kaaba, M. Hinfelaar, and M. Ndulo, (2020).
44 P. Li, “The Myth and Reality of Chinese Investors: A Case Study of Chinese Investment in Zambia’s Copper Industry,” SAIIA Occasional Paper 62, 2010. https://saiia.org.za/wp-content/uploads/2010/05/Occasional-Paper-62.pdf
45 Human Rights Watch, “You’ll Be Fired if You Refuse”: Labor Abuses in Zambia's Chinese State-owned Copper Mines, Human Rights Watch Report, 2011. https://www.hrw.org/report/2011/11/04/youll-be-fired-if-you-refuse/labor-abuses-zambias-chinese-state-owned-copper
46 P. Li, 2010.
47 M. Rapanyane, “China-Zambia Political and Economic Relations in Historical Context,” Africa’s Public Service Delivery and Performance Review 8, no 1 (2020).
48 Front Line Defenders, “Creeping Towards Authoritarianism: Impacts on Human Rights Defenders and Civil Society in Zambia,” Front Line Defenders, 2018. https://www.frontlinedefenders.org/sites/default/files/zambia_report_digital.pdf
49 A. Ofstad, and E. Tjønneland, Zambia’s Looming Debt Crisis – is China to Blame? (Bergen: Chr. Michelsen Institute (CMI Insight 2019:01), 2019). https://www.cmi.no/publications/6866-zambias-looming-debt-crisis-is-china-to-blame
50 SADC, “SADC Regional Indicative Strategic Development Plan 2020-2030,” 2020. https://www.sadc.int/pillars/regional-indicative-strategic-development-plan-2020-2030; SADC (2012) “Regional Infrastructure Development Plan,” https://www.sadc.int/sites/default/files/2021-08/Regional_Infrastructure_Development_Master_Plan_Executive_Summary.pdf; SADC (2015) “SADC Industrialisation Strategy and Roadmap 2015 – 2063’ https://www.sadc.int/sites/default/files/2022-07/Repriting_Final_Strategy_for_translation_051015.pdf
51 SADC, “Protocol on Mining,” Southern African Development Community, 1997. https://www.sadc.int/document/protocol-mining-1997
52 Bank of Zambia, 2021.
53 Lusaka Times, “SA’s Transnet to lease rolling stock to Zambia Railways,” Lusaka Times, 9 February 2018, 2018. https://www.lusakatimes.com/2018/02/09/sas-transnet-lease-rolling-stock-zambia-railways/
54 AFDB, “Kazungula Bridge Project to expand regional integration and trade across southern Africa,” African Development Bank, 2021. https://www.afdb.org/en/news-and-events/kazungula-bridge-project-expand-regional-integration-and-trade-across-southern-africa-43688
55 EIU, “Africa chart of the week: low intra-regional trade,” Economist Intelligence Unit, 14 October 2022, 2022. https://country.eiu.com/article.aspx?articleid=1292496712&Country=Nigeria&topic=Economy&subtopic=R_1
56 H. Hichilema, “Inauguration speech by the President of the Republic of Zambia His Excellency, Mr. Hakainde Hichilema’ speech delivered on Tuesday 24th August 2021 at the National Heroes Stadium, Lusaka, 2021, http://zambiahighcommission.ca/wp/wp-content/uploads/inauguration-speech-by-the-president-of-the-republic-of-zambia.pdf
57 H. Simfukwe, “Economic Diplomacy Placed High-HH,” ZNBC, 4 November 2021, 2021. https://www.znbc.co.zm/news/economic-diplomacy-placed-high-hh/
58 Ministry of Finance and National Development, “Eighth National Development Plan,” (Ministry of Finance and National Development, Republic of Zambia, 2022) https://www.nydc.gov.zm/wp-content/uploads/2022/04/8th-NDP-2022-2026.pdf
59 H. Hichilema, 2022.
60 Reuters, “First Quantum Minerals approves $1.25 billion mine expansion in Zambia,” Reuters, 9 May 2022, 2021. https://www.reuters.com/world/africa/first-quantum-minerals-approves-125-bln-mine-expansion-zambia-2022-05-09/
61 Reuters, “Zambia, UAE to develop $2 billion solar projects,” Reuters, 17 January 2022, 2022.
62 Perceptions of Hichilema’s pro-western stance emanate from his MBA from the University of Birmingham UK, and his business backers while in opposition: see for example Africa Intelligence, “Brenthurst Foundation plays promoter of North American interests in Lusaka,” Africa Intelligence, 13 June 2022, 2022. https://www.reuters.com/business/energy/zambia-uae-develop-2-billion-solar-projects-2023-01-17/https://www.africaintelligence.com/southern-africa-and-islands/2022/06/13/brenthurst-foundation-plays-promoter-of-north-american-interests-in-lusaka,109791389-art
63 R. N. Swett, “New Zambian President’s Visit to U.S. Creates Opportunity to Strengthen Bilateral Relationship,” Inside Sources, 21 September 2021, 2021. https://insidesources.com/new-zambian-presidents-visit-to-u-s-creates-opportunity-to-strengthen-bilateral-relationship/
64 R. Maclean, “Zambia and Its New President are Still on their Honeymoon,” New York Times, 28 September 2022, 2022.
65 C. Vandome, Zambia’s ‘New Dawn’ International Relations: Positive Neutrality and International Partnerships (Chatham House Africa Programme Paper, 2022b).
66 C. Vandome, 2022b.
67 C. Vandome, 2022b.
68 A staff level agreement is a technical agreement between the country and IMF mission staff. It is subject to management approval and board consideration once the necessary financial assurances have been received. See: IMF, “Updated: IMF Staff Reaches Staff-Level Agreement on an Extended Credit Facility Arrangement with Zambia,” International Monetary Fund Press Release No. 21/359, 6 December 2021, https://www.imf.org/en/News/Articles/2021/12/06/pr21359-zambia-imf-staff-reaches-staff-level-agreement-on-ecf
69 Paris Club, “First meeting of the Creditor Committee for Zambia under the Common Framework for Debt Treatments beyond the DSSI,” Statement, 24 June 2022, 2022. https://clubdeparis.org/en/communications/press-release/1st-meeting-of-the-creditor-committee-for-zambia-under-the-common
70 Paris Club, “Second Meeting of the Creditor Committee for Zambia under the Common Framework for Debt Treatments beyond the DSSI,” Statement, 30 July 2022, 2022. https://clubdeparis.org/en/communications/press-release/2nd-meeting-of-the-creditor-committee-for-zambia-under-the-common
71 J. Cotterill, et al, “Zambia Agrees ‘Milestone’ debt relief plan with China and Other Creditors,” Financial Times, 23 June 2023, 2023. https://www.ft.com/content/e3b66798-1c5c-4c0c-8339-83a76e1e2c34
72 M. Bagwandeen, C. Edyegu, and O. Otele, “African Agency, COVID-19 and Debt Renegotiation with China,” South African Journal of International Affairs 30, no. 1, (2023). https://0-www-tandfonline-com.innopac.wits.ac.za/doi/full/10.1080/10220461.2023.2180083
73 Hichilema, 2022.
74 K. Mapila, “Copper can save Zambia,” The World Today, Royal Institute of International Affairs, 1 August 2021, 2021. https://www.chathamhouse.org/publications/the-world-today/2021-08/copper-can-save-zambia.
75 Hichilema, 2022.
76 Reuters, “First Quantum Minerals approves $1.25 billion mine expansion in Zambia,” Reuters, 9 May 2022, 2021. https://www.reuters.com/world/africa/first-quantum-minerals-approves-125-bln-mine-expansion-zambia-2022-05-09/
77 H. Reid, “Anglo American to Return to Zambia with Arc Minerals copper deal,” Reuters, 12 March 2022, 2022. https://www.reuters.com/business/exclusive-anglo-american-return-zambia-with-arc-minerals-copper-deal-2022-05-12/
78 N. McDiarmid, “Rio Tinto starts 2021 copper exploration at Solwezi,” Mining Journal, 20 April 2021, 2021. https://www.mining-journal.com/copper-news/news/1408639/rio-tinto-starts-2021-copper-exploration-at-solwezi#kre-comments-top
79 IMF, “IMF Executive Board Approves New Extended Credit Facility (ECF) Arrangement for Zambia,” International Monetary Fund Press Release NO. 22/297, 2022. https://www.imf.org/en/News/Articles/2022/08/31/pr22297-imf-executive-board-approves-new-extended-credit-facility-arrangement-for-zambia
80 Confidential interview, Lusaka, September 2022.
81 Confidential interview, Lusaka, September 2022.
82 H. Hichilema, (@HHichilema) via Twitter (2022), “Mining can play a catalytic role in promoting industrialisation & job creation. That’s why your Chief Marketing Officer is heading to the Mining Indaba in Cape Town to engage partners who support our efforts to re-establish #Zambia as a world class mining destination. #MI2022,” 8 May 2022, https://twitter.com/HHichilema/status/1523310109178441729.
83 Confidential interview with Zambian government official, Lusaka, September 2022
84 C. Grant-Makokora, South African economic diplomacy: Engaging the private sector and parastatals. Institute for Security Studies Paper 280. February 2015, 2015.; B. Vickers and C. Ajulu, South Africa’s Economic Diplomacy: Trade and Investment Promotion. Institute for Global Dialogue, 2008. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.483.7513&rep=rep1&type=pdf
85 US State Department, “Memorandum of Understanding among the United States of America, the Democratic Republic of the Congo, and the Republic of Zambia concerning support for the development of a value chain in the electric vehicle battery sector,” US State Department, 2022. https://www.state.gov/wp-content/uploads/2023/01/2023.01.13-E-4-Release-MOU-USA-DRC-ZAMBIA-Tripartite-Agreement-Tab-1-MOU-for-U.S.-Assistance-to-Support-DRC-Zambia-EV-Value-Chain-Cooperation-Instrument.pdf
86 Confidential interview via WhatsApp, Johannesburg, March 2023.
87 Confidential interview with mining industry figure, Johannesburg, October 2022.
Additional information
Notes on contributors
Christopher Vandome
Christopher Vandome is a senior research fellow with the Chatham House Africa Programme. His research focuses on the political economy and international relations of Southern Africa, as well as regional and continental peace and security, environmental issues and extractive industries. In 2017–2018 Christopher undertook a secondment with a major global mining firm to support the development of their Africa strategy. Christopher has a master’s degree from the University of Cape Town and is currently a PhD candidate in international relations at the University of the Witwatersrand, Johannesburg, South Africa.