Hichilema landslide election victory may bode well for Zambia’s mining sector
ZAMBIA opposition leader Hakainde Hichilema secured a shock landslide victory in the nation’s presidential election – a development that bodes well for the possible bailout with the International Monetary Fund (IMF), said Bloomberg News.
Electoral Commission of Zambia Chairman Esau Chulu announced Hichilema’s victory over incumbent President Edgar Lungu at a briefing early on Monday in the capital, Lusaka. Hichilema obtained 2.81 million votes against 1.81 million for Lungu — the biggest margin of victory in a quarter-century, said Bloomberg News.
Hichilema’s big win “bodes well for discussions with the IMF around an extended credit facility and external debt restructuring talks,” Eurasia Group analyst Connor Vasey said in an emailed research note.
The Southern African country was the first in the continent to default on sovereign debt following heavy overspending by outgoing president Edgar Lungu. Promisingly for mining, Hichilema says he can achieve an economic growth rate of 10% in five years by restoring the sector as well as agriculture.
“In all my years in politics, I have never seen such an overwhelming thirst for change,” Hichilema told Bloomberg News last week. “After years of suffering, the public is desperate for change and a new start.”
Whether this will come in time to assist Vedanta Resources, a long-time investor in Zambia, is an unknown. The Indian company lost control over the assets in Konkola Copper Mines following an apparent confiscation by the Zambian government. Lungu’s administration claimed Vedanta had failed to deliver on investment promises.
In February, Vedanta warned potential buyers of assets in Konkola Copper Mines that any corporate activity would be “deemed inappropriate”, and that it would seek to protect its interests in Zambia and internationally.