Mercuria and Zambia: A Strategic Partnership in Metals Trading

Zambia, Africa's second-largest copper producer, has taken a significant step towards diversifying its export markets and reducing reliance on traditional buyers. The country has partnered with Swiss-based commodities trader Mercuria to establish a metals trading arm, enabling Zambia to participate directly in global minerals trading. This strategic move aligns with Zambia's economic diplomacy goals and is set to enhance the country's capacity to participate directly in global minerals trading.

The joint venture between Mercuria and Zambia's Industrial Development Company (IDC) aims to enable Zambia to participate directly in minerals trading, diversifying its copper export destinations and boosting revenues. Zambia, which produced 698,000 tons of copper in 2023, seeks to increase its copper output to about 3 million metric tons within the decade. The joint venture, "envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage," according to Cornwell Muleya, IDC's chief executive.



This partnership with Mercuria enables Zambia to leverage the global trading expertise of the commodities giant, potentially increasing its bargaining power and market access. As a result, Zambia could secure better prices for its copper exports, leading to potential revenue boosts. Assuming a conservative 5% increase in copper price and a 10% increase in market access, Zambia could see an additional $1.5 billion in revenues annually by 2030.

The partnership with Mercuria also aligns with Zambia's goal of increasing copper production to 3 million metric tons by 2030. The joint venture aims to enhance Zambia's strategic position in the global market, attracting more investments and facilitating access to international markets. By leveraging Mercuria's global network and experience, Zambia can better market and trade its copper, potentially accelerating its path to increased production and revenue.

In conclusion, the partnership between Mercuria and Zambia's Industrial Development Company (IDC) is a strategic move that aligns with Zambia's economic diplomacy goals and its ambition to become a prosperous middle-income nation by 2030. By enabling Zambia to participate directly in global minerals trading, this joint venture is set to enhance the country's capacity to diversify its export markets, increase revenues, and attract more investments. As Zambia continues to boost its copper production, this partnership is a crucial step towards achieving its long-term economic objectives.