IDC, SA firm ink deal to set up metal company
By BARNABAS ZULU
THE Industrial Development Corporation (IDC) has entered into a strategic partnership with South Africa-based Mercuria Trading to establish a metal company in Zambia.
This was formalised through the signing of a Memorandum of Understanding (MoU), aimed at bolstering the country’s industrial and economic growth.
Mr. Cornwell Muleya, IDC’s Chief Executive Officer, shared details of the deal during a media briefing.
“As you may know by now, we have a new long-term Strategic Plan that sets the tone for our activities over the next 10 years,” Mr. Muleya said.
“On 7th May 2024, the IDC Board approved our 2024-2033 Transformation Strategic Framework. With this plan, our overarching vision is to transform IDC into an investment partner of choice and create a wealth fund.” Mr. Muleya said one of the core elements of the strategic framework is diversifying IDC’s revenue sources.
“A key pillar of this transformation is a move to diversify our revenue sources by implementing measures for wealth creation, portfolio transformation, investment in priority sectors, and capital raising through the options presented by the green and circular economy,” he said.
The strategic plan is designed to create a vibrant and resilient economy that benefits all Zambians. “In 2024, we have concentrated on responding to immediate priorities, including food security and energy security, both of which have been heavily impacted by the drought. We continue to promote projects aimed at energy diversification to secure future power needs for the economy,” Mr Muleya added.
The IDC has already made strides in the agriculture sector, working with the uniformed services to plant maize and other crops in their farm blocks in response to the national disaster. “Through prudent investment and sound management of our diverse portfolio companies, we intend to unlock new opportunities for growth, fostering industrialisation and creating jobs in the process,” he said.
The metal company with Mercuria Trading is one of the key highlights for the year.
“We have signed a MoU for metals marketing and trading with Mercuria Energy Trading SA, a world-leading independent energy and commodity trading group, to establish a metals trading company,” Mr Muleya explained.
Other key initiatives highlighted by IDC in 2024 include the launch of the state-of-the-art Chitambo Agro Processing Ltd, which is now operational, producing cassava meal and starch. IDC has also partnered with the Zambia Air Force (ZAF), planting 70 hectares of summer maize at its Luswishi farm in Lufwanyama.
“Through our subsidiary ZAFFICO, we are also investing in an additional pole treatment line, which will bring total annual production to 260, 000 from 140, 000 poles.
ZAFFICO has also commenced civil works for a Saw Milling plant, which is expected to be in the country by January 2025,” Mr Muleya added.
In the mining sector, IDC’s subsidiary ZCCM-IH is making progress with the completion of the Mopani Mine transaction and the reopening of other mining assets.
Furthermore, Zambia Airways is expanding its network to Dar es Salaam and Nairobi, while Nitrogen Chemicals of Zambia is constructing a new fertiliser blending plant.
“By implementing these initiatives, we aim to build a sustainable, industrialised economy that can create jobs, support growth, and improve the lives of all Zambians,” Mr Muleya said.
