Zambia is rewriting its approach to copper by teaming up with global commodity trader Mercuria in a calculated bid to amplify its presence in international markets. This partnership, announced in December, pairs Mercuria with Industrial Resources Limited, a subsidiary of Zambia’s Industrial Development Corporation (IDC), and represents a marked shift in the government’s strategy for leveraging its copper resources.
Mercuria describes the collaboration as a “bold step in Zambia’s resource governance strategy,” with objectives including the development of local trading expertise, transparency in mineral marketing, and human capital development through knowledge transfer. By directly marketing a portion of the country’s copper output, the joint venture aims to reduce reliance on intermediaries, such as Swiss commodities traders, and retain greater value from its most prized resource.
With copper exports comprising nearly $10 billion of Zambia’s $29.2 billion GDP in 2022, this move could significantly impact the nation’s economic trajectory. The government has set an ambitious target of tripling copper production to 3 million tonnes annually by 2031, up from its current output of around 800,000 tonnes. Improved relations with major mining companies are expected to accelerate progress toward this goal.
For instance, Indian firm Vedanta, after resolving a contentious financial dispute in 2023, pledged a $1 billion investment to reignite its Zambian operations. Similarly, Barrick Gold has launched a $2 billion expansion of the Lumwana copper mine, initiated in late 2024. By positioning its trading venture with Mercuria ahead of this anticipated boom, Zambia appears poised to capitalize on the expected surge in copper production.
This calculated timing has drawn praise from analysts, including Pangea-Risk Africa’s Zaynab Hoosen, who calls it a “level-headed and intentional approach.” Hoosenhighlights the stark contrast with the country’s previous mining interventions under the Patriotic Front-led government, which pursued nationalization policies that burdened the state with debt and underperformed in delivering promised benefits.
One prominent example is the 2021 acquisition of Mopani Copper Mines, which added $1.5 billion to Zambia’s sovereign debt but failed to yield significant economic gains. Recognizing the flaws in that model, the current administration sold a controlling stake in Mopani to Abu Dhabi’s International Holding Company in 2024, aiming to increase production and stabilize operations.
Zambia’s pivot away from resource nationalism reflects a broader trend across the African continent. While countries like Burkina Faso, Mali, and Niger have leaned toward nationalizing key mineral assets, Zambia’s partnership approach offers an alternative blueprint—one that emphasizes collaboration with private expertise to maximize national benefits.
The strategy taps into growing sentiment among African populations that they are not reaping sufficient rewards from resource extraction. Hoosen views the Mercuriapartnership as “a more business-friendly way to cooperate with companies and facilitate local capacity building,” striking a balance between national control and fostering foreign investment.
Zambia’s government has framed the initiative as a step toward enhanced resource governance, with promises of transparency and efficiency in mineral trading. Yet, the absence of detailed timelines and revenue projections raises questions about how soon the benefits will materialize. Effective implementation will require more than just goodwill—it will depend on robust monitoring mechanisms, financial acumen, and political will to avoid the pitfalls of past missteps.
Zambia’s copper narrative, however, is not just about revenue. It is also about redefining its role in global commodity markets. By combining local capacity-building with strategic international partnerships, the country is signaling a departure from the boom-and-bust cycles that have long defined its resource-dependent economy.
If the venture succeeds, it could position Zambia as a model for resource-rich nations seeking to navigate the complexities of globalization while retaining a fair share of their mineral wealth. For now, the joint venture with Mercuria represents a bold gamble on copper—a wager that, if played well, could secure a brighter economic future for the Southern African nation.
