The Dynamics of Zambia's Copper Value Chain
Summary
This research paper investigates the impact of Chinese and Indian investment in Africa's extractive industries on local industrialisation, specifically focusing on the dynamics of Zambia's copper value chain and the role of mine ownership in the development of upstream linkages.
Key insights
- The privatisation of copper mines since the 1990s served as a critical factor in determining the depth and extent of upstream linkages. Following privatisation, the ownership structure of the industry became highly diversified, and the country of origin of the lead commodity firm ownership significantly influenced value chain governance and processes of localisation and upgrading.
- Local supply firms faced stiff competition due to trade and investment liberalisation, the emergence of informal traders, and imports. This competition was exacerbated by a lack of government support, infrastructural constraints, and poor access to capital, which negatively impacted the cost competitiveness of these firms.
- Chinese mining original equipment manufacturers (OEMs) entered the value chain by offering advantageous credit terms, often displacing established OEMs. The Chinese supply chain provided growth opportunities for local firms through low entry barriers and reliable payment records.
Cite the original document
- APA
- South African Institute of International Affairs (2016). The Dynamics of Zambia's Copper Value Chain. https://saiia.org.za/saiia-toolkit/the-dynamics-of-zambia-s-copper-value-chain/
- Chicago
- South African Institute of International Affairs. The Dynamics of Zambia's Copper Value Chain. 2016. https://saiia.org.za/saiia-toolkit/the-dynamics-of-zambia-s-copper-value-chain/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=The Dynamics of Zambia's Copper Value Chain |date=2 June 2016 |url=https://saiia.org.za/saiia-toolkit/the-dynamics-of-zambia-s-copper-value-chain/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2016dynamics, author = {{South African Institute of International Affairs}}, title = {{The Dynamics of Zambia's Copper Value Chain}}, institution = {South African Institute of International Affairs}, year = {2016}, month = jun, url = {https://saiia.org.za/saiia-toolkit/the-dynamics-of-zambia-s-copper-value-chain/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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