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Zambia’s Business Improves
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of this evidence, the results of the for-eign private investment and investorperception survey are intended to assistgovernment to effectively monitor pri-vate capital flows and design policies that will attract more investment into theZambian economy.”And speaking at the same launch, Zam-bia Development Agency Director Gen-eral, Mr. Andrew Chipwende, said given the variance between the official under-estimated levels of private capital flowsand the actual quantitative survey find-ings, it was imperative that those sur-veys were carried out annually to enablepolicy makers have time series data tomonitor the private capital flows. Mr.Chipwende said, the availability of suchdata and information would enable pol-icy makers to obtain early warning sig-nals of financial crises such as those that occurred in East Asia (1997) andLatin America (2002) and the currentglobal financial crisis.Meanwhile, other factors that subse-quently affected investors’ investmentdecisions were domestic macroeco-nomic conditions and market size. Thesurvey findings showed that fiscal policyand financial stability had a positiveimpact on investors’ investment deci-sion, while interest rates were consid-ered to have negatively impacted onsuch investment decisions. With regard to political and governance factors, thesurvey findings showed that the domes- tic political scenario had a positive effecton investors’ decisions, while corruptionand bureaucracy impacted them nega- tively.In terms of infrastructure and services,most enterprises indicated that the costand supply of electricity had negativeeffect on their investments. Similarly, the cost of banking services was consid-ered to have had a negative effect on their investment. And among the envi-ronmental and health factors, only HIV/AIDS and malaria had significant nega- tive effects on investment decisions.These negative factors to the PCF-IPshows that though Zambia ranked better than most Southern Africa DevelopmentCommunity member states in the overallDoing Business Index, however chal-lenges still remained particularly in trad-ing across borders, dealing with con-struction permits and employing workersin order to sustain the country’s momen- tum to foster private sector led growth.
300 Local Exhibitors to Attendthe Trade Fair
The number of confirmed local exhibi-tors at this year’s Zambia InternationalTrade Fair (ZITF) has reached 250 withfourteen countries from within Africaand abroad.
Zambia International Trade Fair Gen-eral manager, James Mwenya saidmore than 300 local exhibitors wereexpected to participate at the trade fairand about 90 foreign companies from14 countries that included Japan, Indo-nesia and Ghana who were all making their first attendance.Other participating countries includeSouth Africa, the Democratic Republicof Congo, India, Egypt, Pakistan, Kenya,Iran, Zimbabwe, Nigeria, Tanzania andThe Peoples Republic of China.And Mr. Mwenya said the expected300 local exhibitors and 14 countries that confirmed participation in thisyear’s trade show presented a signifi-cant increase as compared to lastyear’s 255 local exhibitors and 30 for-eign companies from 12 countries that took part in the event. He said he washappy with the commitment that par- ticipating countries had shown amid the global financial crisis that hasslowed most economies.“It is gratifying and encouraging having such committed companies even wheneconomies are on their knees. It shows that people have realised the need tomeet their clients and advertise theirmerchandise regardless of the prevail-ing economic conditions,” Mr. Mwenyasaid.This year’s trade fair will be held under the theme “Investment in Infrastruc- ture for Competitiveness,” which Mr.Mwenya says responds well to Zam-bia’s Multi-Facility Economic Zone(MFEZ) strategy meant to increase thecountry’s competitiveness in the regionand beyond as an investment destina- tion.“Infrastructure is a pre-requisite for anycountry’s development and such a theme shows Zambia’s preparednessin creating a favourable environmentfor investors. Investors appreciate des- tinations that provide them with readyinfrastructure like telecommunication,roads among others and then just bring machinery, as that increases chancesof profitability,” he added.This year’s trade show will be held on1
st
to 7
th
July.
Biodiesel Plant in the Offing
ZDA and MAN Ferrostaal AG of Germanyhave signed an integrated Biofuel Indus-try Memorandum of Understanding(MoU) aimed at establishing a JatrophaCurcas Feedstock in Zambia. The MoUwas signed on 11 June 2009 by ZDADirector General, Mr. Andrew Chip-wende and MAN Ferrostaal Representa-tives.
The contemplated integrated BiodieselIndustry will comprise of a biodieselrefinery, oilseed crushing plants andJatropha Curcas plantations withnursery. The MoU will facilitate the se-curing of finances and Jatropha seedfeedstock for the biodiesel refinery and the acquiring of 150,000 hectares of land for the project by the two parties.About 120,000 hectares of this land willbe used for the plantation and construc- tion of the crushing plants and bio die-sel refinery. MAN Ferrostaal will be thegeneral contractor for the building of theBio diesel Industry, while ZDA will en-sure that all necessary permits, approv-als and documents are issued on time to permit an accelerated implementa- tion of the Project.The MoU is in response to ZDA’s strate-gic position of facilitating growth andinvestment in the country.
Germany Business DelegationExplores Investment in Zambia
A German Business Delegation fromDrake and Goham Ltd was recently inthe country to explore investmentopportunities in the energy, telecom-munications, construction and tour-ism sectors.
The delegation was in the countryfrom 10 to 13 June 2009, and heldmeetings with officials from the Minis- try of Commerce, Trade and Industry,Zambia Development Agency, Ministryof Energy and Water Resources andZambia Electricity Supply Company.The delegation also had meetingswith officials from the World Bank,Zambia Chamber of Commerce andIndustry, Enfin Solutions, Road Devel-opment Agency, National Constructioncouncil and Ministry of Tourism andNatural resources.The Zambia Development Agencyfacilitated the meetings of the delega- tion with relevant officials in the areasof intended investment.
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