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Zambia

Zda Spotlight Development


Agency

Issue 1 March 23 2009


Inside this issue:
U$10M CELL PHONE PLANT OPENED
TATA buys Kabwe Tan- 2
nery stressed that the govern-
ment would continue to
create a conducive and
Government To Support 2 competitive environment
Private Investors for the private sector to
thrive in various sectors of
SME’s On The Match 2 the economy. “Keeping
Zambia competitive begins
with keeping our economy
growing. And our economy
Survey Reveals Bright 3 can only grow when a lot
Economic Future more Zambians invest in
the domestic economy,” he
Citrus Plantation in the 3 said. President Banda said
Offing Zambia now boasted of
home grown corporations
which he said were among
COMESA Well Endowed 3
With Natural Resources the largest in Africa.
The government, he added,
Business Development 4 was determined to con-
Services Set To Expand tinue facilitating actual
President Rupiah Banda production of mobile
than 200 Zambians in vari- phones as this would
A U$10 million mobile
greatly help reduce the
phone manufacturing plant, ous capacities. Among them
cost of communication in
Points of Interest known as M-mobile Telecom-
are engineers, technicians the country. He said this
munications Zambia Limited
and many others in various was aimed at adding value
• “Keeping Zambia com- (M-Tech), has officially
technical fields. He was to the country’s economic
petitive begins with keep- opened in Lusaka, the first
happy that the company development process,
ing our economy growing. cellular phone manufactur-
would benefit Zambians which was a significant
And our economy can ing company to open in the
through employment crea- step towards the realiza-
only grow when a lot country. President Rupiah
tion, technology transfer and tion of Zambia’s Vision
more Zambians invest in Banda, who officially
human resources develop- 2030 of transforming into
the domestic economy,” launched the plant , said the
ment among other areas. He a middle-income country.
company would employ more
• 15% cash rebate for quali-
fying expenditure in movie
making in Zambia
• A significant 82 percent of
the companies that par-
ZDA Approves U$179.3 Investment
ticipated in a survey indi-
cated that they would Thirty six applications for sectors The approved pro- rest of the applications were
expand their businesses investment Licence have jects are expected to create from agriculture, health and
which points to investor been approved from January about 1,500 job new oppor- tourism sectors. Once imple-
confidence in the domes- to date with a planned in- tunities. In month of January mented the projects will cre-
vestment value of U$179.3 2009 twelve applications ate 607 jobs.
tic economy million. In March twenty four were approved with planned
applications were approved investment of U$39.3 mil- The planned investment in
with a total value of U$140 lion. various sectors of the econ-
Quote million of planned invest- omy is as a result of the fa-
ment mostly in manufactur- Manufacturing accounted for vourable investment climate
Investors have very short ninety percent of the ap- resulting from Government’s
ing, transport and tourism
memories. R. Abramovich proved projects while the sound economic policies.

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TATA Buys Kabwe Tannery to its diversification efforts. He was Credit Guarantee Scheme Coming…
speaking when he met investors from
TATA International through its local sub- Canada, India, and Malaysia. Mr. Mutati The Minister of Commerce Trade and
sidiary, TATA Zambia, has purchased said government will make a practical Industry, Mr. Felix Matati, is expected to
Kabwe Tannery at a consideration of process of translating initiatives into soon launch the Credit Guarantee
US$ 1,165,000 for core assets only. investments and agree on a clear road-
TATA International was selected as a Scheme (CGS) for MSEs. The CGS is
map on what should be done at the end
preferred investor owing to its vast ex- expected to provide cover, on a portfolio
of the discussions with the investors.
perience in the tannery business. basis, to participating financial institu-
He said the investments will be able to tions and thus broaden access to credit
Speaking at the signing ceremony on the help Zambia achieve the target of five by capturing entrepreneurs with viable
Sale Agreement, Ministry of Commerce, per cent economic growth this year. Mr. business ideas but could previously not
Trade and Industry Permanent Secre- Mutati said the investors were willing to
tary, Dr. James Mulungushi, said the form a joint partnership with Zambians access credit due to inadequate collat-
tannery had struggled to reach full pro- to set up investments in the country. eral arrangements.
duction due to under-capitalisation
hence the sale of assets. “As government, we are providing a facil- Business Incubator Programme On
ity to assist these investors to put up Track
Dr Mulungushi said owing to the insol- investment and they will also assist us
vency of the tannery, a scheme of ar- to create jobs,” he said. He said govern- With the support of Finland, plans are
rangement had been drawn up to ad- ment would minimise risk factors in advanced for designing and launching a
dress the liabilities of the company that order to provide the investors with po- national business incubation pro-
would ensure that creditors and employ- tential partners, adding that government
ees are paid in due course. The Com- gramme with the preliminary studies
would make sure that this programme
pany has 32 employees who have not reaches its logical conclusion. finalized. The national business incuba-
been paid their salaries for over 50 tor programme is expected to be a self
months now. Tata plans to invest a fur- At the same occasion, Ink-Media Chief financing, public-private partnership
ther U$3.3 million and to create supplier Executive Officer, William Plant, a Cana- responding to the business service
opportunities for local hide producers. dian investor, said it was essential that a
needs of early stage MSEs.
computer assembly plant is established
Challenges Of Doing Business in Zambia because the country was cen-
trally located. Mr. Plant said Ink-Media is Linking SMEs to TNCs
Land acquisition, obtaining electricity trying to help bridge the digital divide by
connection, and immigration permits are A business linkage programme to link
bringing the assembly of computers to
major challenges in the process of es- Zambia. SMEs to trans-national corporations as a
tablishing new businesses in Zambia, way of developing SME’s market ac-
say most investors talked to by the Zam- He stressed that Ink- Media was creat- cess is being undertaken with the sup-
bia Development Agency (ZDA). ing a plant in Zambia to stimulate the port of UNCTAD. The plan is to link vari-
people to develop an interest in using
During its monitoring exercise of compa- ous corporations in manufacturing, ser-
computers.
nies holding investment Licences, ZDA vice and agriculture with SMEs. Sensiti-
learnt that some companies were forced SME’s On The March…. zation meetings have been held with
to delay implementation of projects due various corporations and after product
to these hitches. One company indicated Despite the global credit crunch, a total identification, sensitization will be held
that it took about 15 months to acquire of 33 applications by Micro and Small
Enterprises (MSEs) were approved by with SMEs.
land while another waited for six months
for installation of electricity. the ZDA in March 2009, representing
realized investment of K 1.12 billion Skills Development Continues…
A number of companies also indicated with a further K 587 million planned
that they experienced delays in getting investment. These MSEs currently em- In the first week of March, ZDA con-
permits for their expatriate staff while ploy 186 workers and are expected to ducted a training on preparation of busi-
others were still in discussions with the create an additional 337 new jobs over ness proposals for twenty Lusaka entre-
Immigration Department. Through the the next two years. preneurs. The training was over five
monitoring exercise, ZDA dialogues with
investors on various issues related to “This is a positive development further days and it is expected that the training
the investment climate in Zambia. emphasizing the critical role MSEs are will enhance the ability of these MSEs in
expected to play in employment genera- planning their operations and more im-
The monitoring exercise is aimed at tion in Zambia,” says ZDA MSE Director portantly sourcing business funds. The
assessing progress made in terms of Windu Matoka. event was organized on a cost sharing
fulfilling initial investment and employ-
ZDA will provide business development basis with the SMEs.
ment creation pledges.
services, help improve entrepreneurship
Government To Support Private In- skills and improve the ability to access ZDA Partners Goldberg Associates
vestors Citizen's Economic Empowerment Com-
mission (CEEC) and other funding by ZDA has partnered with Goldberg Associ-
Government has pledged to provide these MSEs. ates of the United Kingdom in facilitating
facilities that would help private inves-
The approved MSEs are in engineering Zambian transactions by creating a
tors to set up their investment and cre-
ate jobs in the country. Minister of Com- products, food processing, candle manu- bridge between international suppliers
merce Trade and Industry, Felix Mutati facture, carpentry, veterinary services, of finance, goods, and services and
said government has nine companies and transport. Zambian businesses.
which are introducing a new dimension

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Survey Reveals Bright Economic COMESA Well Endowed With Ngosa Chisupa while Mr. Teddy
Kasonso, Permanent Secretary, Ministry
Future Natural Resources of Tourism and Natural Resources re-
Results have been released from a COMESA Region is well endowed with places Mrs. Mukuka Zimba. The Board
study entitled “The Economic Impact of natural resources, including fertile soils, Chairman , Mr. Luke Mbewe, has since
Direct Investment on the Zambian Econ- large water resources, oil, sent a message of gratitude to all former
omy.” The study highlights findings from gold ,diamonds and copper in addition Board Members for their commitment
the Direct Investment Impact Survey to more than half of the world’s cobalt and work particularly in the establish-
(DIIS) conducted by ZDA with Bank of and manganese and more than 80% of ment phase of the Zambia Development
Zambia and Central Statistic involve- the world’s reserves of chromium and Agency.
ment and the support of the European platinum and rich mineral deposits. In a
Union’s Capacity Building for Private presentation to the second COMESA Movie Making Set to Boom
Sector Development. Regional Investment Conference (RIA)
With the announcement in the National
held in Cairo, Egypt, Mrs. Heba Salama,
The survey results, from the companies the COMESA RIA Manager, said these Budget of the 15% cash rebate for quali-
covered in the sample were consistent resources have without a doubt an- fying expenditure in movie making in
with other studies and revealed signifi- chored national development efforts and Zambia, it is expected that once passed,
cant contributions to the economy, in have been the focus of regional integra- this will be a big news item for the movie
billions of Kwacha and notable expendi- tion efforts. making industry. It is expected that this
ture in Corporate Social Responsibility
activities. She said despite the adverse effects measure will put Zambia in the same
that the global financial crisis may have standing as countries that offer actual
A significant 82 percent of the compa- on the COMESA Region in the short cash grants and upfront investments to
nies that participated in the survey indi- term; the impact would not be as heavy entice producers from countries such as
cated that they would expand their busi- as the developed economies. Mrs. Canada, New Zealand and Ireland. With
nesses which points to investor confi- Salama called for lower costs of opera-
dence in the domestic economy while all the scenic sites and this incentive
tions for companies to keep afloat. The
other results revealed that a bright eco- Zambia is well positioned to become a
launch of the COMESA Customs Union
nomic outlook is envisaged with 77 per- this year would be another step in the movie making centre.
cent of respondents saying they ex- integration agenda after the region at-
pected Zambia’s economic future to be tained the Free Trade Area, she added. ‘Incentivizing” New Industrial Park
bright. The establishment of a COMESA Cus- Developers
toms Union is expected to enhance intra
Policy makers and public officers are With the incentive schemes announced
and extra COMESA trade. It will also
expected to use the findings in the study
create a wider customs territory that is in the 2009 National Budget for devel-
to present an effective argument for
likely to attract investors in the region opers of industrial parks, the developers
direct investment across all sectors in
and see an increase in cross border costs are expected to be lowered thus
order to promote economic growth and
development, ultimately impacting on investments. creating an impetus for setting up new
government’s major challenge of reduc- COMESA’s ability to increase FDI has industrial zones country wide. Fiscal
ing poverty. improved and In fact has been very en- incentives hitherto were not applicable
couraging since the COMESA accounted to MFEZ and industrial Park developers
Citrus Plantation In The Offing for 40% of FDI flow into Africa in 2007. but this new budget measure once ap-
This was due to the fact that most of the proved is expected to boost interest
Plans are underway to develop a Citrus
COMESA countries have opened up to
Plantation with a processing plant on amongst potential industrial park devel-
investors. Price controls have been abol-
the border of Mongu and Senanga dis- opers.
ished and the private sector has been
tricts in the Western Province. accorded a more active and prominent
The setting up of the plantation and the role in the economy. Zambia To Host North South Cor-
processing plant is an initiative of the ridor Conference
local and provincial administration with ZDA Gets New Board Members
the blessings of the Barotse Royal Es- Zambia is set to host a high level confer-
New Board Members have been ap-
tablishment (BRE) in order to reduce
pointed to the ZDA Board by Govern- ence on the North South Corridor on 6 to
endemic poverty in the province. ment. The new Board members are Mr. 7 April, 2009 in Lusaka. The North
A ZDA team that visited the area to- Likolo Ndalamei, Secretary to the Treas- South Corridor Pilot-Aid-for-Trade Pro-
gether with the Senanga and Mongu ury who has replaced Mr. Evans Chibiliti; gramme is a joint COMESA-EAC-SADC
district officials recommended that the Dr James Mulungushi, Permanent Secre-
initiative that aims to reduce the time
area should immediately be transformed tary Ministry of Commerce Trade and
Industry, replaces Mr. Davidson Chilipa- and cost of road and rail transport on
from traditional land to state land and
for a technical report to be submitted to mushi, while Dr Simon Mitti, Permanent the corridor spanning eight countries.
the ZDA by the project initiators, in con- Secretary Science and Technology takes The conference aims to secure donor, IFI
junction with the Ministry of Agriculture over from his predecessor, Dr. Buleti and private sector Aid-for-Trade to fi-
and Co-operatives, to ensure that the Nsemukila. nance the removal of infrastructural
project attains full implementation. Others who have been appointed are Dr. bottlenecks and secure commitments
Goldwin Beene, Permanent Secretary for members of the three regional blocks
This will facilitate the preparation of a
project proposal to attract investors in Mines and Mineral Development, who to address regulatory and administrative
the area. takes over from Mr. Leonard Nkhata, Dr. constraints blocking expansion of trade
Winnie Mwenda, Permanent Secretary and economic growth.
Labour and Social Security, replaces Mr.

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Zambia Development Agency
P.O Box 30819 Events
Nasser Road
Enhancing Zambia Development Agency’s Capacity to Fa-
Lusaka, Zambia cilitate Investors and Investment Workshops and Valida-
tion Meeting
Tel: 260-211-220177
Proposed Dates
Fax: 260-211-225270
E-mail: zda@zda.org.zm
Website: www.zda.org.zm Eastern Chipata 1-2 April 2009
Western Mongu 7-8 April 2009
North Western Solwezi 15-16 April 2009
Luapula Mansa 21-22 April 2009
Northern Kasama 27-28 April 2009
Central Kabwe 4-5 May 2009
Copperbelt Ndola 7-8 May 2009

VISION
“To become a world class Agency for the promotion and facilitation of economic
development.”
Mobilisation of validation meeting (Lusaka) 15 May 2009
Validation meeting 26-28 May 2009

Zambia Development Agency


Power In Numbers Business Development Services Skills Training Continues....
Sensitisation on Small Aggregation Ini- set to Expand In the third week of March, Gender in
tiatives (SAIs) has been conducted for Development Division (GIDD) in conjunc-
The Business Development Services tion with ZDA conducted a training pro-
welders from Lusaka’s Kalingalinga
(BDS) Voucher Programme has issued a gramme on entrepreneurship & busi-
compound and carpenters from Kalinga- ness for MSEs in Chipata. The pro-
total of 60 vouchers with a value of
linga and Mandevu compounds and gramme was also conducted for women
K300 million. This has been done for
various entrepreneur groups on the Cop- living with HIV in Chelstone, Lusaka;
SMEs who are members of ZNFU and
perbelt. The SAIs encourage entrepre- farmers in Nega Nega, and ZESCO retir-
ZCSMBA in Petauke, Mumbwa, Kasama
neurs involved in complimentary prod- ees in Livingstone.
and Livingstone. The BDS is a non-
ucts to work in organized groups and
pool their resources together, share
financial intervention designed to assist Zambia Development Agency
SMEs improve their business practices
common facilities so as to improve pro- The ZDA was established in 2006 by an
and contribute to poverty alleviation. It is
ductivity. It is envisaged that once or- Act of Parliament and began operating
sponsored by Finland, Netherlands the in January 2007 after the amalgamation
ganised, the SAIs would be assisted in
Government of Zambia and ILO. From of five agencies that hitherto operated
procuring asset finance and technology
January 2009, the BDS Programme is to independently to foster economic growth
to improve product quality and exhibition
be rolled out to 16 additional districts and development by promoting trade
facilities. Marketing support would also and investment through an efficient,
that+ include Kabwe, Kapiri Mposhi,
be provided to these SAIs. effective and coordinated private sector
Mufulira, Solwezi, Mkushi, Monze, Maza-
led economic development strategy.
This initiative is to be extended to weld- buka, Choma, Mansa and Chipata. The
These agencies were the Zambia Invest-
ers in Garden compound in Lusaka, and BDS Programme augments the CEE ment Centre, Zambia Privatisation
Southern Province. A similar initiative is Fund in that it helps SMEs build capac- Agency, Export Board of Zambia, Small
being contemplated for the owner-driver ity to access CEE funding. Enterprise Development Board and Zam-
bia Export Processing Zones Authority.
bus concept.