Zambia and UAE Signed Memoranda Worth $2.14 Billion
The agreements follow President Hichilema's working visit to Abu Dhabi aimed at boosting copper production.
Updated on Sept. 29, 2026 in International Relations
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Zambian and Emirati officials have signed memoranda of understanding valued at $2.14 billion to foster economic cooperation. The deals include a significant $1.1 billion investment in Mopani Copper Mines.
Why it matters
The investment supports Zambia's ambitious goal of reaching three million tonnes of copper production per year. Achieving this target requires the development of 8,000 megawatts of electricity to power the mining sector.
Zambia currently targets annual copper production of three million tonnes, a feat requiring an 8,000 megawatt electricity supply. Officials are evaluating a potential reduction to the existing 16 percent VAT on gold transactions.
The players
Hakainde Hichilema
He is the President of Zambia who was re-elected in August 2026.
International Resources Holding
This investment firm has committed over $1.1 billion toward the development of Mopani Copper Mines.
ZCCM-IH
This is the Zambian state-owned investment company currently formalizing the small-scale gold sector.
The details
The agreements were finalized during the Zambia-UAE Business Forum held in Abu Dhabi. Zambia is actively moving to allow private investment in electricity transmission and has signaled intent to pursue a Comprehensive Partnership Agreement with the UAE.
Timeline
Zambia established an embassy in Abu Dhabi in 2023.
President Hakainde Hichilema secured re-election in August 2026.
The UAE appointed its first resident ambassador to Lusaka in September 2026.
President Hichilema visited Abu Dhabi from September 29 to 30, 2026.
Political Context
The opposition and certain domestic stakeholders have historically raised concerns regarding the privatization of energy transmission assets and the long-term impact of foreign debt on national infrastructure control. These groups argue for stricter oversight of large-scale concessions like those granted to International Resources Holding.
The move to allow private electricity transmission investments may impact utility reliability and costs for domestic and industrial users. Additionally, any changes to the 16 percent VAT on gold will directly affect the profitability of small-scale miners and regional traders.
The takeaway
These agreements signal a major push to integrate Zambia's resource sector into the global economy through strategic Emirati partnerships. Investors should watch for further developments on the potential Comprehensive Partnership Agreement.
Further reading
For broader insight into global diplomatic partnerships, visit our International Relations section.
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