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1
Issue 5
Russia Determined toBoost Trade with Africa
2
2009 First Half RecordsUS$755M Investment 
2
 MSE Clinches Multi-Dollar Project 
2
SA Firms Seeking  Agents at ZACS
3
 ZDA Attends Dar-es-salaam Fair 
3
 MSEs Get Market &Finance Access Training 
3
Implications of Current Financial Crisis
4
Inside this issue:
 
Government, Zambia Devel-opment Agency andZhonghui Mining Group Lim-ited of China have signed aUS$3.6 billion InvestmentPromotion and ProtectionAgreement (IPPA) to guaran-tee the Group’s investmentsin the mining and relatedsectors.
Speaking during the signing of the IPPA, Minister of Com-merce, Trade and Industry,Mr. Felix Mutati said the in-vestment Zhonghui Mining Group was bringing to Zam-bia was the biggest singleinvestment in the region. Mr.Mutati said the investmentwould translate into more than 32,000 direct job op-portunities and an additional2000 jobs in related indus- tries. The minister has sincecommended ZDA for working hard to conclude the IPPAnegotiations with ZhonghuiMining Group leading to itssigning within a fewmonths.Speaking at the same oc-casion, ZDA Chairperson,Mr. Luke Mbewe, said for-eign direct investment wasbecoming very competitive,hence the need to be moreinnovative to keep its in-flow at par. Mr. Mbeweassured Zhonghui Mining Group that its investmentwould be well protectedunder the laws of Zambia.And Chinese Ambassador to Zambia, Li Qiangmin,commended ZDA for itscourage to attract hugeinvestment in the country. “ZDA, you are very coura-geous. It is not easy tobring such a huge invest-ment into the economyfrom a single entity atonce,” said Mr. Qiangmin.Meanwhile, Zhonghui Min-ing Group Chairperson, Yaohui Wang 
,
said thesigning of the IPPA gave(
Continued on page 2
)
 
Chinese Firm to Invest US$3.63 BillionChinese Firm to Invest US$3.63 BillionChinese Firm to Invest US$3.63 Billion 
 July 31 2009
30 MSEs Registered with ZDA
ZDA approved thirty Smalland Medium Enterprise ap-plications for MSE certifi-cates in June, with a totalinvestment of K2.1 billion.
The approved investmentapplications were from enter-prises located in Lusaka,Central, Southern, Western,and Luapula provinces. Oth-ers were from ventures situ-ated in North-Western andCopperbelt provinces.The K2, 108,142,542 totalinvestment is expected tocreate 170 job opportunitiesin the economy.These applications werefrom the manufacturing,agriculture, trading, service,and construction sectors,with the service sector re-cording the largest invest-ment of about K791.6 mil-lion while the manufacturing sector recorded aboutK616.2 million.Other sectors contributedabout K70 million to theMSE investment certificateapplication approvals.
Zda Spotlight 
Quote
“The investor of todaydoes not benefit fromyesterday’s growth” Warren Buffet
Points of Interest
 
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FDI is becoming verycompetitive, hence theneed to be innovative tokeep its inflow at par.
”
•
“Wealthier nations have the obligation to assistAfrica create joint institu- tions and companies thatrest on mutual economicbenefits rather than giv-ing the continent primitiveaid which disadvantageAfrica’s development ”
•
There is a steady comeback of investor confi-dence in the economyafter the credit crunch.
 
ZambiaDevelopment Agency
MSEs earn a living through making simple wares . In picture,MSEs making pop corn machines. ZDA facilitates the growth ofMSEs in the country to enhance wealth creation. ( Story below)
 
 
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PAGE 2 ISSUE 5
business forums and presentations toenhance mutual understanding among partners.“Russia and Zambia have good experi-ence of cooperation in many spheres.This facilitated our investment in Zam-bian soil. For example, through Zambia’scooperation in economic and investmentinformation exchange, several Russianinvestors have shown interest to investin Zambia based on business proposalsprepared by the Russian-Zambia Busi-ness Council in September 2008 ,” Mr.Malakhov said.The Ambassador said the Russian Em-bassy was ready to broker the establish-ment of business relations with Russianpartners. He said potential areas of co-operation could be in energy projects,mining industry, oil and gas, tourism andagricultural cooperation.
2009 First Half Injects
 
US$755.3m
ZDA has recorded more than US$ 755.3million planned investment in the firstand second quarter of 2009. And theAgency has recorded a tremendous riseof investment in the second quartercompared to the first quarter of the yearby more than US$ 357.7 million.
ZDA Senior Investment Promotion Offi-cer, Roy Kapembwa, attributed the in-crease to the steady coming back of investor confidence in the economy from the credit crunch. “The confidence of investors is steadily coming back afterserious investment decrease experi-enced recently due to the uncertainties that were caused by the credit crunch,”Mr. Kapembwa said.The real estate sector contributed thelargest amount of pledged investment of more than US$208.2 million, due to thehigh demand for modern office spacesby the market . The recorded investmentpledges during the period under reviewwere US$198, 777, 750 and US$556,510,450 in the first and second quarterrespectively.
ZDA at the ZACS
Zambian Development Agency (ZDA) willbe explaining how it facilitates growth forMedium and Small Enterprises (MSEs)at the 83
rd
Zambia Agriculture and Com-mercial Show slated for 30
 th
July-3
rd
 August 2009. ZDA will use the ZACS topromote the vast investment opportuni- ties of Zambia to investors and entrepre-neurs locally and abroad. This years’ theme is: “Challenge of Change,” a theme that tallies with ZDA’s mandate of facilitating growth of the MSE sector.
Russia Determined to BoostTrade with Africa- Envoy
Russian Ambassador to Zambia, BorisMalakhov, has urged African countriesto create effective financial instrumentsthat promote self-development to with-stand economic upheavals.
And Mr. Malakhov has charged thatwealthier countries had the obligation toassist African countries develop jointventure institutions and companies thatrest on mutual economic benefit rather than giving primitive aid to the continent that consequently disadvantaged eco-nomic growth and development of Afri-can economies.Speaking at a Business Forum organ-ised by the Zambia Development Agencyat the just ended Zambia InternationalTrade Fair in Ndola, Mr. Malakhov saidRussia’s approach to Africa is to assist the continent to unlock its potential toboost its trade and economic stamina in the world.“What we want is to assist African coun- tries to the extent of unlocking their ownpossibilities. Russia is looking for suchways and means of mutually beneficialcooperation and providing assistance,which by all means cannot be calleddead aid,” Mr. Malakhov said.He said although the global financialand economic crisis had substantiallyundermined world economic stabilityand affected every country, furtherstrengthening of friendly relations with the African states and promoting multi-faceted cooperation remained the high-est priority of Russia’s foreign policy.Mr. Malakhov said Russia’s trade policypaid less attention to African and LatinAmerican continents in the 1990s, asituation the country has revisited.“Russia’s change of approach towardsAfrica can be shown by the recent visitof the Russian Federation President, Mr.Dmitry Medvedev, to Egypt, Namibia,Nigeria and Angola. The visits weremeant to give boost to our trade andeconomic turnovers with Africa, whichcurrently stands at US8.2 billion Dol-lars,” he said.And Mr. Malakhov has said there wasneed for cooperating partners to signintergovernmental agreements to en-courage and protect investments thatfaced difficulties in kick-starting due tolegal complications. Mr. Malakhov hassince commended the Zambian Govern-ment for facilitating the exchange of economic information to appropriateinstitutions that helped in organising 
Chinese Firms to InvestUS$3.6bn
From page 1
confidence for the Group to invest in theZambian economy. “The IPPA is a guar-antee that we can entrust our moneyinto the Zambian economy and verysoon both parties will see good results.We hope to flourish with our Zambianbrothers and sisters,” Mr. Wang said.Mr. Mutati signed on behalf of the Gov-ernment, Zhonghui Mining Group Lim-ited Chairman Yaohui Wang for theGroup and ZDA Board Chairperson,Luke Mbewe, for the Agency.The Zhonghui Mining Group Limitedproject involves the mineral explorationsworks, mining, concentrator works,smelting, marketing and selling the cop-per on the domestic and internationalmarkets. An initial US$3.633 billion hasbeen earmarked for the project during  the first 5 years.The investment project will be imple-mented by the Group through its sub-sidiary companies namely, ZhonghuiMining Industry Zambia Limited, whichwas incorporated on 19 July 2007,Golden Lion Mining Industry ZambiaLimited, incorporated on 6 May 2008,and Wang Wang Holdings Zambia Ltd.
 
MSE Clinches Multi-Dollar Pro-ject
A Small and Medium Enterprise haspartnered with Lumwana Mines andMarli Investment (Z) Limited to under- take Jatropha Curcas Linn seedling farming and supply the Linn-seedlings to Lumwana Mines. Zam-Vizwear (Z)Limited is undertaking the project under the out-grower scheme initiative withMarli Investment Zambia. In this vain,Zam-Vizwear acquired a 10 hectare landfor the project at an estimated totalinvestment of US$38,000.The US$38,000 covered expenses forland acquisition and preparation, crea- tion of a water reservoir, designing andlaying out the irrigation system, pur-chase of Jatropha seeds, water pumpsand horse power engines for irrigation.To kick-start the project, Zam-Vizwearpurchased 10×25kg bags of JatrophaCurcas Linn seeds from Marli Invest-ments (Z) Limited with each bag con- taining 40,000 seeds at a total cost of US$5,454.Upon satisfactory production of theseedlings in accordance with the termsof reference and specifications, Marli
 
3
Investment (Z) Limited bought the entireJatropha seedlings off the nursery onbehalf of Lumwana Mines atUS$290,909.09.Following the country’s projected landuse of 2,000,000 hectares for bio-fuels the market value for the seedlings isprojected to rise by 20% as most farm-ers were closely following up the bio-fuels in the agro-sectorThe Jatropha project is Zam-Vizwear’sdiversification strategy from its initialbusiness of supplying industrial safetyrequirements, protective clothing andreflective materials to the Zambian busi-ness community and the surrounding Sub-Saharan African countries.The major clients of Zam-Vizwear havebeen the mines, but due to poor per-formance of the sector, the companyexperienced poor cash flow hence opt-ing to venture into agro-related business to cushion the impact of the lossescaused by the mining sector’s poor per-formance.
South African Firms Seek Dis-tributors, Agents at ZACS
Six South African companies under theSouth African International BusinessLinkages (SAIBL) have confirmed partici-pation at this year’s Zambia Agricultureand Commercial Show. These compa-nies include Fred Footwear, ShineOnPolish cc, Zhauns Group, Powa Brandscc, The Smart Food Company, and Mak-haya Bushmen Ceramics.
The companies manufacture a numberof products among them small-mediummachinery for food processing and dia-per manufacturing, ceramic productslike tiles and bathroom assortments,nutritional food (instant porridges, vita-min and fortified foods), school andformal leather footwear among others.
 
The companies are looking for agents,buyers and potential distributors of theirproducts as a way of broadening themarket for their products in the region.Those who wish to wish to get moreinformation on any of these companiescan contact their Trade Representative,Patrick Chilombo on 0955 600 010 orsaiblzambia@yahoo.com.
ZDA Attends Dar-es-Salaam Fair
The Zambian stand at this year’s Dar-es-Salaam International Fair, which tookplace from 28
 th
June to 9
 th
July 2009,attracted many visitors with chain storesplacing huge order for Zambian prod-ucts.Zambia Development Agency (ZDA) coor-dinated the participation of six Zambiancompanies in the 12 metre stand, whichwas visited by Tanzanian President,Jakaya Kikwete.Mr. Kikwete was impressed with theproducts on display and walked awaywith product samples comprising as-sorted fruit juices from California Bever-ages, pharmaceutical baby care prod-ucts from Pharmanova Zambia Limited,leather shoes from Malar IndustriesLimited, baked Beans and Peanut Butterfrom Fresh Pikt. Including some as-sorted garments and textile productsfrom African Joy and product informationbrochures.Many visitors to the stand wanted toobtain first hand information about theproducts being exhibited, the manufac- turers, the quality of samples and how they could make orders.
MSEs Get Finance and MarketAccess Training
Zambia Development Agency (ZDA) andpartners have rolled-out a training pro-gramme for Micro, Small and MediumEnterprises in all provinces on access tofinance and markets.
The training pro-gramme which is being undertaken byZDA’s Micro and Small Enterprise (MSE)Division and seven relevant institutionsis funded by the Private Sector Develop-ment Programme (PSDP) at a cost of K561 million.Institutions involved in the programmeinclude Citizen Economic EmpowermentCommission, to explain its role in sup-porting MSEs; Patents and CompanyRegistration Office, to highlight the regis- tration procedures and requirements;Zambia Public Procurement Authority,for tender tips and how MSEs can ten-der. Other partners are the ZambiaRevenue Authority on tax matters, banksfor guidance on financial discipline, aTransnational Corporation to explain onbusiness linkages with MSEs, and Zam-bia Development Agency to give entre-preneurial tips on bankable businessplans.Zambia Development Agency Mediumand Small Enterprise Division Director,Windu Matoka said the programme willrun for five weeks. Mr. Matoka said the training programme which started inSolwezi in North Western province andMazabuka in Southern province thismonth, will be concluded in September2009. He said after this training, the team will go back to the provinces tohave one-on-one discussions with MSEson challenges they encountered in con-ducting business in their localities.
ZDA Records More ThanUS$100M Investment Rise
Last month’s planned investment inflowhas increased by US$109.7 million com-pared to May, an indication that thecountry has remained an attractive in-vestment destination despite the creditcrunch.
More than US$281.4 millionplanned investment was approved lastmonth, compared to US$171.7 million that was approved in May 2009.The approved investment licence appli-cations were from thirty-two applicants,with a total of 3, 614 new job opportuni- ties expected to be created once imple-mented. These planned investmentswere in the manufacturing, real estate,services, tourism, agriculture, transportand construction sectors. Other sectorswere health, financial and educationsectors.The real estate sector attracted the larg-est planned investment of aboutUS$200.6 million, while the manufactur-ing sector with US$22.8 million. Othersectors shared the total of more thanUS$58 million of the approved invest-ment licences.
Uganda Hosts Smart PartnershipDialogue
The 19th Global Smart Partnership Dia-logue was held in Kampala, Uganda witha strong call for public-private partner-ship towards improving social-economictransformation for impoverished na-tions.
Speaking at the opening cere-mony, President Yoweri Museveni of Uganda described the Smart Partnershipdialogue as a win-win situation thatcould spearhead the transformation of African societies.Mr. Museveni pointed out that the devel-opment human resource, a network of good roads and railway lines, adequateand cheap electricity as well as the pri-vate sector and regional integration arecritical pillars needed to acceleratesocio-economic transformation of socie- ties in Africa. Mr. Museveni argued that the Smart Partnership Movement was aunique meeting that brought togetherpeople of different cultural, political andeconomic backgrounds to discuss globalissues with the aim of finding solutions to the common problems.The three-day conference attracted over1,000 delegates and at least half of the10 heads of government invited. Presi-dent Rupiah Banda was among thosewho attended the conference.
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