Zambia, DRC sign pact on electric vehicles

Southern Africa Development Community (SADC) members Zambia and the Democratic Republic of Congo (DRC) have signed an agreement for the establishment of special zones for the production of battery and electric vehicles (BEV) in the two countries.

According to the Economic Commission for Africa (ECA), these zones will be of the first in the 16-member region, which includes Namibia and South Africa.

The landmark ceremony held in Kinshasa and chaired by DRC prime minister Jean-Michel Sama Lukonde, was witnessed by senior representatives from the African Union, the African Development Bank, Afreximbank, the African Legal Support Facility, Arab Bank for Economic Development in Africa and ECA.

ECA interim executive secretary Antonio Pedro hailed the agreement as “an important step in ensuring we have the right enabling policies in place for the region to benefit from the so-called green mineral boom”.

The ECA says as producers of more than 70% of the world’s cobalt, and 10% of global copper, experts agree that DRC and Zambia are in a unique position to move from being exporters of raw materials to becoming regional and global manufacturers and suppliers of the battery precursors, reaping the economic benefits for the region.

Seen in the context of the operationalisation of the African Continental Free Trade Area (AfCFTA) agreement, Pedro underscored the agreement’s importance in the region’s path to achieving sustainable industrialisation and economic diversification.

According to the agreement, ECA and Afreximbank will lead the establishment of an operating company in consortium with public and private investors from DRC and Zambia, as well as international investors such as Afreximbank’s Fund for Export Development in Africa investment platform.

The operating company will develop a transboundary special economic zone in the DRC and Zambia dedicated to the production of battery precursors, batteries, and eventually electric vehicles.

– email: matthew@namibian.com.na