The Democratic Republic of Congo (DRC) and Zambia, which share a tense border, are joining forces in a bold move: transforming a potential conflict zone into a green energy development hub in Africa by creating a cross-border special economic zone.
Redefining the economic rules of the game in the region
At first glance, this partnership seems unlikely. Eastern DRC remains an area of tension. Yet, just south of this conflict zone, the two countries are pioneering a cross-border special economic zone (SEZ) dedicated to the production of batteries and electric vehicles (EVs).
For both nations, the stakes are high. If successful, this alliance could redefine Africa’s economic playing field, replacing resource competition with shared prosperity. By harnessing the DRC’s vast cobalt reserves and Zambia’s copper wealth, the project aims to:
- Create jobs
- Reduce emissions
- Position the region as a global green mobility hub
But the road ahead is fraught with challenges, ranging from instability to fluctuations in global markets.
A Special Economic Zone (SEZ) to reduce the cost of cathode precursors
The DRC-Zambia cross-border SEZ is expected to produce nickel, manganese, and cobalt (NMC) battery precursors. This includes components that constitute an intermediate input for a complete battery, which both countries aim to produce in the long term. “Building a cathode precursor plant in the Democratic Republic of Congo would cost three times less than in the United States“, reveals a study conducted by BloombergNEF.
Furthermore, battery production in the Democratic Republic of Congo is expected to emit 30% fewer greenhouse gases than production in China. This debate is expected to take center stage at the 14th Africa Regional Forum of the UNEC Annual Investment Meeting in Abu Dhabi in April 2025.
“Zambia and the DRC are home to at least 70% of the minerals needed to realize this vision,” explains Nalituba Mwale, Director of Administration at the Zambian Ministry of Commerce, Industry, and Trade.
DRC-Zambia Special SEZs: A Model for Africa
The DRC-Zambia Cross-Border Investment Zone has great potential to bridge existing industrial capacity on the continent. This topic will be a central focus for delegates at the 14th Annual Investment Meeting (AIM) 2025 in Abu Dhabi.
The agreement establishing the African Continental Free Trade Area (AfCFTA) promises to reduce cross-border trade costs, where tariffs currently exceed 6% and non-tariff barriers stand at 18%. If fully implemented, by 2024, the agreement is expected to boost intra-African trade in intermediate goods and services by:
- 51.7% in manufacturing
- 49.6% in agri-food
- 40.4% in services
- 28.4% in energy
For African SEZs/Free Zones, this completely reshapes the playing field. This includes providing strong incentives for them to move beyond isolated export enclaves to interconnected hubs that can serve the African market.
The Future of the Battery Electric Vehicle Sector in Africa
By 2040, the International Energy Agency predicts that clean energy technology manufacturers will need:
- 40 times more lithium
- 25 times more graphite
- 20 times more nickel
- 20 times more cobalt
The DRC currently holds 51% of the world’s cobalt reserves and considerable hydropower potential. The country is uniquely positioned to become a low-cost, low-emission producer of precursor materials and cells for lithium-ion batteries. Furthermore, the DRC and Zambia are Africa’s largest producers of copper, an important component in wiring and motors.
A BloombergNEF study was commissioned to examine the feasibility of establishing SEZs for the manufacture of battery precursors in the DRC and Zambia, and confirmed that the project was technically feasible and financially viable, with a total estimated cost of 2.7 billion USD.
