Zambia eases ban on sulphuric acid exports to Congo as stocks

Zambia has begun relaxing its export restrictions on sulphuric acid to the Democratic Republic of Congo (DRC), signaling a shift in regional trade dynamics as domestic chemical inventories strengthen. The move, confirmed by Zimbabwe's mining ministry, reflects improving supply conditions after months of tight controls aimed at securing sufficient stocks for Zambia's own copper and mining operations.

## Why did Zambia restrict sulphuric acid exports in the first place?

Sulphuric acid is critical infrastructure for copper leaching and processing—the backbone of Zambia's mining sector, which accounts for roughly 70% of export revenues and 12% of GDP. When supplies tightened due to global logistics disruptions and fertilizer market volatility (sulphuric acid serves dual roles in mining and agriculture), Zambia's government implemented export controls to protect domestic mining operations from supply shock. The ban ensured local copper refineries and leaching facilities could maintain production without competing against higher-paying international buyers or regional demand.

The Democratic Republic of Congo, Africa's largest copper producer and Zambia's regional peer, relies partly on imported sulphuric acid for its own copper processing, particularly in Katanga Province's mining belt. The restriction created friction in cross-border trade and added cost pressure on Congolese operations already facing commodity price volatility.

## What changed to allow exports to resume?

Strategic reserves have rebuilt faster than anticipated, driven by a combination of factors: improved global supply chains post-COVID, lower global fertilizer demand (which temporarily reduced competing demand for sulphuric acid), and Zambia's own copper production stabilizing at sustainable levels. The ministry's confidence in "sufficient stocks" suggests inventory buffers now exceed operational thresholds, allowing for controlled regional trade without jeopardizing domestic capacity.

This signals cautious optimism in Zambia's mining recovery. The country's copper output has faced headwinds from power cuts (load-shedding), aging infrastructure, and commodity price swings, but gradual normalization of the chemical supply chain suggests operations are reaching a new equilibrium.

## What are the market implications for regional investors?

For mining companies operating in both Zambia and the DRC, the easing of export restrictions lowers input costs and supply risk. Congolese producers like Glencore, Ivanhoe Mines, and state-owned Gecamines benefit from resumed access to competitively priced Zambian sulphuric acid, improving operating margins. Cross-border trade recovery also underpins broader SADC economic integration—a key driver for multinational mining houses evaluating regional expansion.

However, the easing is **controlled**, not a full lift. Selective trade likely means Zambia maintains domestic priority allocation, releasing only surplus capacity. This measured approach protects against future supply shocks while signaling fiscal discipline to international creditors (Zambia completed a debt restructuring in 2023).

For equity investors, this reflects incremental de-risking in Southern African mining—a sector priced at distressed multiples due to power and policy uncertainty. Sulphuric acid availability is a leading indicator of production stability; its resumption to Congo suggests confidence in sustained Zambian output.

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