Special economic zones for electric vehicle production Planned In DRC And Zambia
African Export-Import Bank (Afreximbank) and the United Nations Economic Commission for Africa (ECA) have recently inked a Framework Agreement with the Democratic Republic of Congo (DRC) and the Republic of Zambia to establish Special Economic Zones (SEZ) dedicated to the production of Battery Electric Vehicles (BEV) and related services. The project aims to harness the vast mineral resources of both nations to create a strategic foothold in the rapidly growing electric vehicle (EV) sector.
The initiative will see Afreximbank and ECA act as the financial and technical partners, leading the formation of an Operating Company (OpCo) in collaboration with investors from DRC, Zambia, and international players, such as the Fund for Export Development in Africa (FEDA). The OpCo will develop SEZs in both countries, focusing on battery precursors, batteries, and electric vehicles.
ARISE Integrate Industrial Platform (ARISE IIP), a pan-African infrastructure developer, has been appointed as the technical consultant responsible for conducting the pre-feasibility study for the SEZs in DRC and Zambia.
This venture will utilize proven EV technology to facilitate the large-scale exploitation of mineral resources, stimulating the production of pre-export value-added products and creating job opportunities for skilled engineers with technical expertise. DRC and Zambia, with their abundant natural resources, are ideally positioned to take advantage of the booming EV market. DRC alone accounts for 70% of the global cobalt supply and 88% of cobalt exports, while both countries contribute 11% of the global copper supply.
The Framework Agreement signifies the dedication of the governments of DRC and Zambia, Afreximbank, and ECA to promote inclusive development of the BEV value chain and render both countries as globally competitive investment destinations. This collaboration also underscores Afreximbank’s commitment to promoting climate finance solutions and fostering a sustainable, responsible energy transition in Africa.
