Why Does It Cost So Much to Invest in Africa?

In this episode of Blindspot Africa, Charles Gyamfi Ofori speaks with Phesto Musonda Board Chairperson of ZCCM Investments Holdings Plc, Zambia’s state-owned mining investment company, about how Africa can attract investment, strengthen its energy sector, and turn its mineral wealth into lasting economic development. Recorded at the Investing in Mining Indaba in Cape Town, the conversation explores the critical link between mining, energy infrastructure, investment, and local value addition. Musonda shares insights into Zambia’s experience with energy sector reforms, independent power producers, and investments in solar power to address electricity shortages and support mining and small businesses. The discussion examines why Africa must look beyond extracting and exporting raw minerals. With global demand for critical minerals rising, the continent has an opportunity to invest in infrastructure, develop technical skills, build local industries, and create regional value chains that generate more economic benefits for African countries. A key theme is the cost of financing in Africa. Musonda challenges the perception that African investments should carry a higher risk premium and calls for stronger institutions, predictable policies, and closer cooperation among African countries to reduce investment risks and attract capital. The episode also highlights the importance of regional infrastructure, cross-border trade, public-private partnerships, and African-led investment. From transport corridors to regional energy systems, the conversation makes the case for countries to work together rather than compete against one another for investment. In this episode, we explore: How Zambia is reforming its energy sector to support mining and businesses The role of ZCCM Investments Holdings in mining and energy Why Africa needs more local mineral processing and value addition The high cost of financing and the perception of African investment risk How regional infrastructure can unlock trade and industrialisation Why African countries need a coordinated approach to investment How domestic and regional capital can help finance Africa’s development The central message is clear: Africa must use the global demand for critical minerals as an opportunity to build infrastructure, strengthen regional industries, and create lasting economic value—not simply export its resources. Watch this episode of Blindspot Africa for a practical discussion on investment, energy, mining, and the partnerships needed to advance Africa’s economic transformation.