CEC POWERS BEYOND $1 BILLION : THE UTILITY RIDING ZAMBIA’S COPPER WAVE
By Mutisunge Zulu
Earnings surge, clean energy bets, and market sentiment place Copperbelt Energy Corporation at the center of Zambia’s mining boom
Copperbelt Energy Corporation (CEC) officially entered rarefied air when its market capitalization crossed USD 1 billion mark in May 2025. This was not just a symbolic milestone for Zambia’s largest private power company, it was a signal that Zambia’s stock market is maturing and that investors are taking a fresh look at Africa’s copper heartland. (Market capitalization is the value of issued shares at current market price – a rising market capitalization reflects rising share price as confidence in the company by investors surges)
REVENUES SURGE WITH MINING DEMAND
CEC’s unaudited results for the first half of 2025 read like a growth story fueled by the mining sector’s hunger for power. Mining will only thrive with adequate electricity supply, base load supply to be precise. Revenue jumped 58% to USD 360.3 million, while EBITDA climbed 43% to USD 101.2 million. Net profit followed suit, rising 42% to USD 61.5 million, even after accounting for higher input costs.
What then was the driver? A surge in electricity demand from Zambia’s mines, which are scaling up output in response to strong global copper prices. Zambia’s first half copper production rose 17.8% – year on year – to 463,848 metric tons as mining conditions improve and more players ramp production following positive developments such as solving of legal impasses, recapitalization of key mines and above all a rise in global demand to power electric cars and renewable energy.
As Chief Executive Officer Owen Silavwe noted, “Our performance reflects the close link between mining expansion and power availability,” this is a reminder that in Zambia, copper and electricity are two sides of the same coin.
A STRONGER BALANCE SHEET
CEC’s balance sheet also showed resilience with total assets widening to USD 936.6 million, up from USD 857.7 million in December 2024, while shareholder equity (capital) climbed to USD 516.4 million. The company is keeping a tight rein on debt, with borrowings stable at USD 228.8 million, giving it headroom for further capital investment. Evidently CEC is well positioned for the copper boom in the Copperbelt of Africa serving both Zambia and the DRC.
Importantly, CEC is sitting on USD 198.8 million in cash, reflecting disciplined working capital management and healthy operating cash flows of USD 34.2 million. Even though operating cash flows dipped compared to 2024 (USD 49.0 million), the reduction reflects front-loaded investment in renewable energy and transmission infrastructure, growth spending rather than weakness.
INVESTING IN THE ENERGY TRANSITION
CEC is betting on the future with one of the most ambitious renewable investment pipelines on the continent. Its 136MW Itimpi 2 Solar Project and 12.5MW Fitula Solar Project are under construction, while it continues to expand cross-border interconnection capacity with the DRC. These initiatives not only de-risk reliance on hydro generation but also make CEC attractive to ESG-conscious investors who increasingly demand cleaner portfolios. The name CEC is synonymous with Zambia’s $200 million debut green bond.
That forward-looking capital expenditure program explains why depreciation costs climbed 16% year-on-year, it’s the price of building tomorrow’s grid today.
WHY INVESTORS ARE EXCITED
For stock markets and other fund managers scanning Africa, CEC’s financials tell a bigger story. Crossing the USD 1 billion mark makes CEC more investable for institutional capital that typically avoids small-cap frontier plays. Liquidity is improving, governance has proven steady, and earnings momentum looks sustainable so long as copper demand holds.
Put simply: CEC isn’t just an African utility, it’s becoming a proxy for the global energy transition, providing the electricity that powers the copper Zambia exports to the world. With Zambia’s ambitions of hitting 3 million metric tons by 2033/35 and a million tons in 2025 (this year) CEC vividly has a mammoth task to power the Southern African nations transition. Zambia’s copper boom is critical because it spells the red metal producers fortunes to enable debt service for its debt obligations, growth prospects to double digit growth possibilities and above all will improve socio economic prospects in improved livelihoods.
RISKS NOT TO IGNORE
With climate risk rated one of the world’s top threats, hydrological risks remain, with low rainfall threatening hydro capacity. For energy reform implementation, grid constraints, infrastructure bottlenecks and regulatory pressures could squeeze margins. And while copper demand looks strong, any global slowdowns from uncertainty bred by trade wars or geopolitics, would cascade into lower mining activity and softer demand for CEC’s power.
MARKET SENTIMENT BEYOND CEC
CEC’s landmark valuation has sparked renewed interest in Zambia’s stock market. The Lusaka Securities Exchange has now produced two billion-dollar companies: CEC and ZCCM Investments Holdings (ZCCM-IH). These two are like Siamese twins – there can be no mining discussions in the absence of power and very little to zero power demand in the absence of mining ambitions.
ZCCM-IH’s shares have rallied more than 130% year-to-date, buoyed by its exposure to IRH’s Mopani Copper Mines and the broader mining boom. Together, CEC and ZCCM-IH account for nearly half of the Zambian bourse’s value – a concentration that underscores just how central the mining-energy nexus has become for Zambia’s growth story.
CEC’s 2025 half-year results confirm what the market already signaled: this is no longer a mid-tier utility. With earnings scaling, renewables in the pipeline, and a billion-dollar valuation secured, CEC has emerged as a bellwether for Zambia’s mining-fueled economy.
For investors, the story is simple. If copper is the future, then CEC is the power behind it, and Zambia’s capital markets are finally catching up to that reality.
(This is not investment advice but mere market commentary).
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Mutisunge Zulu is a frontier market strategist and executive risk leader. A Harvard and Alliance Manchester Business School Alumnus. He is a PhD candidate in Business Strategy at ESCP Business School in Paris.