Zambia celebrates its independence on October 24, as the country gained independence from Britain on this day in 1964. What are Zambia’s greatest strengths or growing sectors today, where there is particular scope for Finnish solutions and partnerships? What does the future hold for cooperation between Finnish companies and Zambia or Africa as a whole – what are the greatest opportunities and challenges? Finland’s Ambassador to Zambia, Saana Halinen, visited EPSE in August and shared her views on her country and its future, opportunities, and challenges.
Read also: Connections Corner: Saana Halinen, Finnish Ambassador to Zambia
Zambia as a country with opportunities in the mining industry
According to Halinen, the mining sector is naturally significant and a sector with potential for Finnish companies. Zambia is Africa’s second largest copper producer, but the country also produces other minerals, such as cobalt. In addition, Zambia is currently conducting its first nationwide survey of critical minerals. Mining involves many different actors at different stages of the value chain, and Finland has a wealth of diverse expertise and know-how in the mining sector. Sustainable mining is an essential direction for the future, and Finland – and above all Finnish companies – has a good starting point for this, Halinen emphasizes.
Other opportunities in the circular economy, energy and technology solutions, and forests
According to Halinen, other potential areas include various circular economy solutions, renewable energy, and the forestry sector. For example, mining generates large amounts of side streams and waste, and circular economy solutions such as mineral waste treatment, water reuse, and material recovery are only just beginning to be discussed in Zambia. The country’s energy production is mainly based on hydropower, which makes it vulnerable to droughts. This has led to electricity shortages that have slowed down the economy, and various energy solutions will be needed in the country in the coming years, also because of climate change. According to Halinen, health technology is also a potential growth area, with a few Finnish companies already operating in the country. Zambia has a strong drive towards digitalization, and mobile payments, for example, are very common. With Finland’s support, Zambia recently published its first AI strategy, putting it at the forefront of African countries, and emphasizing the importance of international cooperation and investment. Zambia is actively inviting “international partners to develop and pilot new capabilities” to address the specific challenges of developing countries.
Future prospects
According to Halinen, Zambia’s future is positive, and there is great potential for cooperation. The country has been peaceful throughout its independence and, despite the challenges common to all of Africa, is a democracy to some extent: power has changed hands peacefully from one party to another through elections on several occasions. In addition, English is widely spoken in the country, which is an advantage for Finns. Zambia has eight neighboring countries and could serve as a kind of African “hub” for Finnish companies. Zambia’s economy is growing at a rate of 4–6% per year, but climate change poses challenges for the country’s future. Last year, Zambia suffered from an exceptional drought, which led to an energy crisis. The mining industry, for example, is an energy-intensive sector, and according to Halinen, the country should also diversify its economic structure.
For EPSE, Zambia offers many opportunities despite its challenges, and we have several ongoing projects there.
This article was written by
Anni Honkonen
EHSQ Manager
anni.honkonen(a)epse.fi
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