Copper miner First Quantum Minerals (FQM) reports that the Zambian government’s decision to engage it in dialogue on designating the long-awaited Kalumbila Multi-Facility Economic Zone (MFEZ) will help to enhance local supplier competitiveness, not just in the Kalumbila district, but also in the North-Western province and beyond.

The MFEZ application has been awaiting approval through a statutory instrument that will enable Kalumbila town to realise its long-sought-after economic growth potential.

In 2014, 68 businesses expressed investment interest to Kalumbila Town Development Corporation with a total combined investment of $100-million, which would result in the creation of nearly 1 700 jobs in its immediate wake. This has not been realised owing to the delays in approvals.

Currently, many mine and contractor employees continue to travel 150 km to Solwezi to access goods and services owing to their non-availability in Kalumbila town.

As Zambia’s largest taxpayer, FQM has invested over $90-million in planning and development of Kalumbila town – where growth has been slower than planned owing to the sluggish release of land titles and delays in the approval of the MFEZ status.

This status has affected third-party private sector development uptake.

FQM country GM Kingsley Chinkuli says the designation of the Kalumbila industrial park as an MFEZ would enhance trade and job creation in North-Western province while also promoting the area as an attractive foreign investment destination.

Taking cognisance of the new MFEZ incentives proposed in the 2022 national budget, he says the MFEZ will have a “huge impact” on the proliferation of medium to large industries in Kalumbila and the rest of the province while also increasing job opportunities through spin-off commercial activities in the region.

Chinkuli notes that stalling the approval of the long-awaited licence for the Kalumbila MFEZ and removal of most of the original incentives under the MFEZ came at the expense of investors like FQM who are ready to invest in infrastructure that would support the expansion of the $2-billion Sentinel copper mine.

He urges the Zambian government to treat the matter with the urgency it deserves and expedite the approval process as a sign of good faith to investors and the Zambian people.

PRESIDENTIAL BACKING

Speaking during the mid-November 2021 Economic Transformation Conference hosted by the Zambia Association of Manufacturers, Zambia President Hakainde Hichilema said his government would support the economic zones because they add value. “Economic zones are not a new thing. This government will support the economic zones. So, I would say yes, we will give support to the economic zones there [Kalumbila]. They have their value,” he said.

In addition, Hichilema said the Zambian government planned to establish partnerships with the private sector to take account of prudence in the use of limited resources. “While we have broader policy direction, vision and specific policies, let us be transactional as well. Meaning that we are specific, drilling down those issues that ordinarily maybe governments do not like to deal with. Most governments like to deal with generalities, and they get away with it,” he said.

“As a corporate citizen committed to bringing development into the areas where we operate, the [MFEZ] designation will be a step in the right direction as this will support the growth of business in the area, which in turn will spur more investment due to the multiplier effect,” says Chinkuli.

“Investing in the MFEZ will have a trickle-down effect on local businesses, suppliers and contractors alike. The economic zone will also help build a conducive environment for businesses and investors to flourish,” he adds.

Since FQM set up its Sentinel mine in Kalumbila district, the company has invested billions of dollars in its operations, as well as in providing social amenities like roads, schools and hospitals.

The presence of the mine in the area has also led to off-shoot businesses in the areas of transportation, agriculture, hospitality and other services catering to the needs of the mine and its employees.