OFID and IFC support copper industry in Zambia

The International Finance Corporation (IFC) and OFID have made an investment of US$10m each in Metalco Industries Company Limited (Metalco), a Zambian scrap metal recycling company.

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The International Finance Corporation (IFC) and OFID have made an investment of US$10m each in Metalco Industries Company Limited (Metalco), a Zambian scrap metal recycling company. 
Metalco will use the new capital to expand operations, including the purchase and installation of a copper cable and rod production plant. This will create over 250 new jobs and support the local economy of Kabwe, where the company is based. 
“Metalco is one of Zambia’s few copper cable and rod manufacturers, and the only domestic producer of lead-acid batteries. IFC and OFID’s partnership will enable us to contribute to the government of Zambia’s goal to accelerate private sector-led diversification and the industrialization of Zambia,” said Hussein Safieddine, CEO of Metalco. 
OFID’s Director-General Suleiman J Al-Herbish said: “Metalco is the largest employer in Kabwe. As such, the company is an important contributor to living standards, providing not only jobs, but healthcare, housing and other services. OFID is proud to be behind this project, bolstering the Zambian economy and safeguarding employment levels and healthcare for the local population.” 
Kabwe is an important transportation and mining center in Zambia. It is also one of the ten most polluted places in the world. This pollution is mainly due to groundwater contamination from former lead and zinc industrial mining activities. To date, little has been done to protect citizens from contaminated water supplies. However, the OFID/IFC investment in Metalco will ensure that the company upgrades to meet international environmental standards and mitigates further pollution. 
IFC will engage directly with the company to apply high performance standards and play a clear developmental role in addressing the problem of lead exposure, for the protection of staff and the local population. Metalco plans to make improvements such as the provision of regular blood testing, insurance cover and the payment of doctor fees for staff. IFC will also advise Metalco on how to improve operational and corporate governance practices, as well as on energy efficiency and quality control. 
The World Bank Group, of which IFC is a member, is working with the government of Zambia to clean up Kabwe by building infrastructure to manage waste, and by financing clinics where companies can test and treat workers for lead exposure. 
Dimitris Tsitsiragos, IFC’s Vice President for New Business, said: “The World Bank Group’s efforts to mitigate pollution and improve healthcare will not only allow Metalco to safeguard its workers, but also benefit residents of Kabwe.” 
Zambia is the eighth largest copper producer in the world. The country has a long history of mining and large reserves of copper and other minerals. The mining sector is a major contributor to foreign investment and GDP. It is also a significant source of employment for the population.