Over $50,000 loss: Businesses cry foul as foreign mining investor leaves trail of unpaid debts in Zambia
By Correspondent
A foreign mining investment linked to First Africa Resources has come under scrutiny after several Zambian businesses accused the company of failing to settle outstanding payments running into hundreds of thousands of kwacha and tens of thousands of US dollars.
According to information gathered by this publication, Francis (Farzin Zadanfarrokhi), identified as the owner of First Africa Resources, reportedly came to Zambia around August 2024 to explore zinc mining opportunities in Kabwe District, Central Province.
The investor is said to have appointed Gibson Nsofu as the company’s Country Manager, who allegedly engaged local businesses to provide office premises, security services and mining-related equipment.
One of the affected businessmen, Yusuf Khondowe, claims he leased his premises in Kabwe to the company but was never fully paid.
“They occupied the premises but failed to honour their rental obligations. They now owe me K60,000 in unpaid rentals,” Mr. Khondowe alleged.
The company is also accused of defaulting on payments for security services.
According to Bassam, General Manager of Target Security, the company engaged the firm to provide security for approximately two years before allegedly stopping payments.
“We provided security services for two years, but all of a sudden they stopped paying, and now it has become difficult to trace them. First Africa Resources owes us K120,000,” Bassam said.
Further allegations suggest the company procured a power transformer valued, paid partially but remained with unpaid of US$12,000 balance to the supplier.
Another supplier claims the company also failed to settle a balance of US$25,000 bill for a zinc assay or mineral testing machine used to assess the quality of mineral samples.
It is alleged that First Africa Resources only paid $5,000 towards the testing machine from the agreed amount of $30,000.
The affected businesses are now appealing to the relevant authorities to investigate the company’s operations in Zambia and help recover the outstanding debts.
The allegations have raised concerns about the due diligence conducted on foreign investors and the need for stronger mechanisms to protect local suppliers and service providers from financial losses.
Efforts to get in touch with First Africa Resources local representative failed by press time.
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