What's Happening?
Zambia has initiated new investment and trade platforms in China aimed at enhancing economic cooperation with the Shanghai Cooperation Organisation (SCO) region. These platforms, launched in Guangzhou,
are designed to connect Zambia with investors from the Greater Bay Area and the broader SCO bloc. The initiative follows a cooperation agreement signed in October 2025 between the Zambia Development Agency and the Guangdong–Hong Kong–Macao Development Committee of the China–SCO Economic and Trade Exchange Centre. The platforms are intended to translate diplomatic engagement into commercial activity, focusing on priority sectors such as industrialization, value addition, and infrastructure development. Zambian Ambassador to China, Ivan Zyuulu, presided over the launch, which is expected to lower entry barriers for Chinese firms considering ventures in Zambia.
Why It's Important?
This development is significant as it represents a strategic move by Zambia to diversify its economic partnerships and reduce reliance on traditional Western markets. By accepting Chinese yuan for mining taxes, Zambia is also supporting its local currency, the kwacha, against the US dollar. The initiative could lead to increased foreign direct investment in Zambia, particularly in its mining sector, which is crucial for the country's economy. Strengthening ties with the SCO region, especially with China, could provide Zambia with new opportunities for economic growth and development, potentially leading to job creation and infrastructure improvements.
What's Next?
The establishment of these platforms is likely to lead to increased economic activity between Zambia and the SCO region. As Chinese and SCO-region enterprises explore investment opportunities in Zambia, there may be a rise in joint ventures and partnerships, particularly in sectors like mining and infrastructure. The Zambian government may continue to seek similar agreements with other countries in the SCO region to further bolster its economic ties. Additionally, the success of these platforms could encourage other African nations to pursue similar strategies to attract investment from the SCO bloc.
