Zda Spotlight Development

Zambia

Agency

Issue 22 January 2011

Inside this issue:

ZDA Projects $3bn FDI 2

Rise
Zambia Records Gains
First Quantum to Invest
1bn in new Mine
ZDA signs MoUs with
four large companies
ZRA fires up to hit 2011
target
2011 Investment climate
reform agenda
Zambia charms foreign
investors
Points of Interest
“THE Zambia Development
Agency (ZDA) will this year focus
on three key performance areas
to propel the country’s economy
further and has projected in-
creased Foreign Direct Invest-
ment (FDI) inflows of between
US$1 billion and $3 billion com-
mitments”. Mr. Andrew Chip-
wende
“The substantial increase in
investment inflows is largely due
to the favourable investment
climate that Zambia has put in
place adding that these positive
reforms have brought foreign
direct investment into the coun-
Zambia Ranked Fourth
49th, Mali 50th, Sudan
53rd, Sierra Leone 54th,
2
The Gambia 56th, Maurita-
nia 58th, Djibouti 62nd,
Ghana 64th, Cape Verde
3
67th and Morocco 73rd.
n Southern Africa, Namibia
3
emerged 75th, Zimbabwe
79th, Lesotho 97th, Bot-
swana 118th while the De-
5 mocratic Republic of Congo
emerged 120th in the world.
In 2009, The CIA ranked
5 Zambia‟s economic perform-
ance at number 15 in the
Mr. Avishay Dvir, chief executive officer of the Zambia Border world. According to the CIA
6 fact book, which gives data
Crossing Company talking to a journalist. In the background
on all countries, Zambia‟s
finishing touches to the border facility. Story on Page 5
6.3 percent growth rate in
2009 was the 15th best in
The American Central Intelli- countries monitored last the world.
gence Agency (CIA) has year.
ranked Zambia‟s economic Zambia‟s performance was
performance at number four In Africa, Congo Brazzaville far much higher than that of
in Africa in 2010 after Congo emerged first, Mozambique regional economic giant
Brazzaville, Mozambique and second with Ethiopia coming South Africa, whose nega-
Ethiopia. third while Nigeria took the tive one percent growth in
27th slot, Malawi 30th, Tan- 2009 was ranked at num-
According to the latest CIA zania 32nd, Rwanda 38th, ber 145. Zambia like many
fact book on country ranking Liberia 40th, Angola 41st, other countries in the world
in terms of real growth in Uganda 42nd and Gabon experienced the effects of
gross domestic product 46th. the global financial crisis,
(GDP), Zambia ranked 21st On world rankings, Egypt but still managed to register
economic growth. Daily Mail
in the world out of the 215 came out 48th, Burkina Faso

Dangote to Invest U$400m

try.” Dr. Caleb Fundanga s

“This programme of business

linkages is a good development
and I am sure it will succeed. We
need to join efforts in making this
programme a success,” Mr.
Gavin Udal.
Quote
“Men who accomplish great
things in the industrial world
are the ones who have faith in
the money producing power of
ideas” Charles Fillmore
Zambia Development Agency
(ZDA) has signed an Invest-
ment Promotion and Protec-
tion Agreement (IPPA) with a
Nigerian Company Dangote
Industries worth US$400
million (about K2 trillion)
which will facilitate the es-
tablishment of a cement
processing plant in Masaiti
area on the Copperbelt Prov-
ince.
The project to be undertaken
will create 1,600 jobs for the
local people and was one of
the largest investments in
Zambia in 2010 outside the
mining industry.
Addressing members of the
media and the business
community at the signing
ceremony of the IPPA at Ho-
tel Inter-Continental in Lu-
saka in December 2010,
Dangote Industries president
and chief executive, Aliko
Dangote said prudent man-
agement of macroeconomic
policies by the Zambian Gov-
ernment had facilitated his
company to establish a ce-
ment processing plant. Mr.
Dangote said the cement
manufacturing plant would
have an initial (Cont‟d on P7)

1
PAGE 2
ZDA Projects $3bn FDI Rise
THE Zambia Development Agency
(ZDA) will this year focus on three key
performance areas to propel the coun-
try‟s economy further and has pro-
jected increased Foreign Direct Invest-
ment (FDI) inflows of between US$1
billion and $3 billion commitments.
The targeted sectors are Small and
Medium Enterprises (SMEs) develop-
ment, national infrastructure develop-
ment, FDI and trade promotion. ZDA
director general Andrew Chipwende
said the focus of the agency on SMEs
would capture, nurture and develop
new business ideas with potential to
compete in globalised competitive
environment.
He said ZDA had planned to promote
„the one village one product initiative‟
while increasing the number of enter-
prises translating from micro status to
small enterprises by 10 per cent. Mr.
Chipwende, who was accompanied by
senior ZDA officials, said this in Lusaka
at Pamodzi Hotel during a media brief-
ing on 2010 highlights and outlook for
2011.
“ZDA has planned to increase the num-
ber of business linkages between Me-
dium and Small Enterprises (MSEs)
and large corporations by 20 per cent.
We plan to increase the range and
quality of goods and services produced
by micro, small and medium sized
enterprises with export potential,” he
said.
Mr. Chipwende said five domestic
firms would be linked with foreign busi-
nesses through joint venture while
promoting domestic investment by
connecting them to equity and debt
financial institutions in order to pro-
mote local investments.
On FDI and trade promotions, he said,
ZDA projected an actual FDI inflow of
between $1.0 billion and $ 3.0 billion
commitments through the concept of
one stop shop. The increased FDI
would contribute to the Government‟s
programmes efficiently and contribute
to the central treasury.
ZDA also intends to increase the number
of exporters by 10 per cent and the
range of goods and services for export
market by 10 per cent. On infrastructure
development, he said ZDA would de-
velop common user facilities for micro,
small and medium sized enterprises
while securing commitment of $2.0 bil-
lion investment in infrastructure.
Zambia Records Gains
Zambia has registered a 419 million U.S
dollar increase in new equity investment
inflows. The 2009 equity investment
inflow is higher than 131 million U.S
dollars registered in 2007. This is ac-
cording to phase three of the Private
Capital Flows Survey for 2010.
“Bank of Zambia Governor Dr. Caleb
Fundanga says the substantial increase
in investment inflows is largely due to
the favourable investment climate that
Zambia has put in place adding that
these positive reforms have brought
foreign direct investment into the coun-
try.
Dr. Fundanga however says the overall
foreign direct investment inflows de-
clined in 2009, due to low profits re-
corded by enterprises, which was consis-
tent with global developments.
The Governor was speaking at a dis-
semination workshop dubbed „”Foreign
Private Investment and Investor Percep-
tions in Zambia 2010” in Lusaka.
The objective of the survey was to moni-
tor and manage the capital flows. It was
conducted by the Bank of Zambia in
collaboration with Zambia Development
Agency (ZDA), Central Statistical Office
(CSO) and other Balance of Payments
Statistical Committee (BoPSC) member
institutions.
At the same function, Macro-economic
and Financial Management Institute of
Southern Africa, Elias Ngalande com-
mended the team for completing phase
three of the survey using best practices,
which has put Zambia in the frontline.
He noted that the surveys will assist in
assessing the level of investment inflows
coming into Zambia.
Dr. Ngalande says his firm will continue
conducting foreign private capital sur-
veys with the focus of harmonizing sur-
vey mythologies, developing early warn-
ing systems for crisis mitigation and
increasing the involvement of the private
sector.
And closing the workshop Zambia Devel-
opment Agency Director General, Mr.
Andrew Chipwende, commended the
private sector for their good response to
the survey saying the response rate of
86 percent indicated the good collabora-
tion that exists between the private sec-
tor and public sector.
He said it was important to conduct the
survey in order to come up with useful
2
ISSUE 22
information to formulate appropriate
policies and improve the investment
climate.
Mr. Chipwende urged the Government,
through the Ministry of Finance and
National Planning, Ministry of Com-
merce Trade and Industry, and the Bank
of Zambia to play a leading role in sup-
porting the survey. He also called on
MEFMI, COMESA and UNCTAD to con-
tinue providing technical support.
A total of 350 enterprises were enumer-
ated, of which 303 responded, repre-
senting a response rate of 86.6 percent.
The survey was conducted in line with
international best practice. It incorpo-
rated the requirements for the IMF Coor-
dinated Direct Investment Survey (CDIS)
as well as the COMESA /UNCTAD re-
quirements on Activities of Transna-
tional Corporations TNCs.
State issues First oil Exploration
Licence
The Government has offered the first oil
exploration licence to a Zambian com-
pany called the Barotse Petroleum Com-
pany.
And Mines and Minerals Development
Minister Maxwell Mwale has advised
investors in Zambia not to get worried
about the confusion that had rocked
Western Province over the Barotseland
Agreement.
Speaking when he signed the licence for
Barotse Petroleum Company, Mr. Mwale
said the Government would not allow
lawlessness in Zambia. “There are peo-
ple who just want to champion confu-
sion, but the Government will not toler-
ate this kind of situation to prevail. In-
vestors should not be scared because
everything is under control,” he said.
Mr. Mwale said the Government ex-
pected the exploration company to
move into the blocks as soon as the
rainy season was over. He said six com-
panies - three Zambian and three for-
eign - successfully bid for the advertised
oil and gas blocks in the first round.
Mr. Mwale said two successful bidders
in the second bidding round were Zam-
bian companies, Majetu Block 15 in
North-Western Province and Block 34 in
the Kafue Basin in Southern Province.
He said the licensees' should adhere to
the guidelines of the strategic environ-
mental assessment under the petro-
leum exploration and production gen-
eral regulations.
 ISSUE 22
Vale to invest USD 90 million in
Konkola
Brazilian Based and world's second
leading iron ore producer seeks to invest
more than USD 90 million in its Konkola
North Copper Mine project in copper rich
northern Zambia this year for the devel-
opment of the project which starts op-
erations in 2013.
According to a company statement, Vale
Mining seeks to plough USD 93 million
in Zambia's Konkola Greenfield Mine in
Chililabombwe this year in addition to
the more than USD 400 million invest-
ments earmarked in the Greenfield
mine.
The miner said it would add the USD 93
million to the USD 400 million it put in
the development of the Greenfield Mine
on the Copperbelt Province and ensure
that the projected production of copper
from the mine in the next two years is
achieved.
These include US$ 93 million in Zambia
at its Konkola North Greenfield Mine.
Konkola North Copper Mine will be run
as a joint venture between Vale and
African Rainbow Minerals which are in
partnership since August 2010 to de-
velop the mine.
The mine had during the commissioning
of work at the new site pledged to invest
more than USD 1 billion into the project
by 2015 in among other programmes,
infrastructure development and ensure
Zambia succeeded in being one of the
major contributors of copper to the inter-
national metal market.
Zambia presently envisions to raise cop-
per output to more than 700,000 ton-
nes per annum spurred by massive in-
vestment into the mining and copper
sector by among other mining compa-
nies; Vancouver based First Quantum
Minerals, China Non Ferrous Metals and
Zambia's copper producing leader Ve-
danta Resources, through its subsidiary,
Konkola Copper Mines, among other
mining giants operating in the Southern
African nation. Steel Guru
ZDA Signs MoUs with Four Large
Companies
The Zambia Development Agency (ZDA)
has signed four business linkage agree-
ments to enable Micro Small and Me-
dium Enterprises (MSMEs) engage in
business with big corporate entities.
The companies that signed the Memo-
randum of Understanding (MoU) wit ZDA
were National Housing Authority (NHA),
Zambia Breweries, Konkola Copper
Mines (KCM), and Copperbelt Energy
Corporation (CEC). The MoU would pro-
vide business opportunities and linkage
for the MSMEs and the four firms.
Commerce, Trade and Industry Minister
Felix Mutati said the MoU would inte-
grate the SMEs in more economic activi-
ties and create more jobs and wealth for
citizens. “For SME‟s to grow they need to
interact with big businesses and I must
say that I am happy that this MoU has
been signed this evening.”
The minister was speaking at the signing
ceremony on 27th January 2011 at
Moba Hotel in Kitwe. He said the Gov-
ernment would deliver its promises of
creating employment and business op-
portunities to its citizens because it has
put in place policies that were practical.
Speaking earlier, Zambia Breweries
manager (North) Gavin Udal said his
company was happy that it was part of
the business linkage programme.
He said he was sure the business link-
age programme would be successful
and urged other companies to come on
board.
“This programme of business linkages is
a good development and I am sure it will
succeed. We need to join efforts in mak-
ing this programme a success,” Mr. Udal
said.
Mopani Copper Mine and Lumwana
Mine are also expected to join the busi-
ness linkage programme to offer busi-
ness opportunities to SMEs to create
jobs and wealth creation and sustain-
able livelihoods.
Zambia Charms Foreign Inves-
tors
Foreign investors view Zambia as being
among the countries with the most suit-
able business environment particularly
due to its macroeconomic and political
stability, which make investments safe.
The Zambian economy has been hailed
as best suited to attract more Foreign
Private Investments (FPIs) as it contin-
ues to be one of the most preferred
investment destinations in the world.
The report on the survey conducted by
ZDA in conjunction with Bank of Zambia
(BoZ) states that most investors had
found the local economic climate was
favourable and would positively influ-
ence a would-be investor. Among the
factors that were highly praised as those
that would positively affect investors‟
decision to come to (Cont‟d on Page 6)
3
PAGE 3
First Quantum to Invest USD1bn
in New Zambian Mine
Canadian group First Quantum Minerals
will invest $1 billion in a new copper
mine in Zambia, its president Clive Ne-
wall has revealed.
Clive Newall told reporters the invest-
ment will include a copper smelter to
handle concentrate from a mine ex-
pected to produce 300,000 tonnes of
copper annually at peak production.
"The initial capital investment for the
project will be approximately $600 mil-
lion, rising to $1 billion with construction
of a new 1.0 Mtpa copper smelter," Ne-
wall said.
Newall said an additional $400 million
would be spent on future upgrades to
Trident mine at Kalumbila in north-
western Zambia.
"This investment is another endorse-
ment of the Zambian government's pro-
active policies to create an attractive
investment climate for capital invest-
ment," he said.
Newall said First Quantum also planned
to build a new town and a multi-facility
economic zone at the new mine which
was expected to directly employ 2,000
people. Reuters
Economic Growth Sustainable –
BOZ
The Bank of Zambia has said Zambia
will be able to sustain the strong eco-
nomic growth and high global rating
because of the consistent prudent eco-
nomic management, among other fac-
tors.
Increased activities in key productive
sectors such as mining will also sustain
growth for the country to remain highly
rated. Commenting on the Economist
magazine placing Zambia ninth on the
ladder of countries whose economies
would continue peaking in the coming
five years, BoZ Governor Caleb Fun-
danga said that economic activities and
continued revision of failing policies
would spur Zambia further.
Dr Fundanga said that increased mining
activities and the high copper prices in
addition to the improved income in the
non-traditional exports (NTEs) were good
indicators for sustained growth in Zam-
bia.
“Zambia was rated in the top 10 of not
only Africa but the world this is because
the economy has performed well and
will continue to do so,” he said.
ISSUE 22
Regional Spotlight
Africa Receives Less Foreign In-
vestment in 2010.
Foreign direct investment (FDI) into Af-
rica fell by 14% to US$50 billion during
2010, according to a recent report.
“Inflows to Africa, which peaked in 2008
driven by the resource boom, appear to
continue the downward trend of the
previous year. For the region as a
whole . . . estimates show that FDI in-
flows fell by 14% to $50 billion in 2010,
although there are significant regional
variations,” the United Nations Confer-
ence on Trade and Development
(UNCTAD) said in a report released in
January.
FDI flows to North Africa stabilised dur-
ing 2010, while inflows to South Africa
dropped to barely a quarter of the 2009
level. Compared to 2009 figures, pre-
liminary estimates by UNCTAD indicate
that Egypt experienced a 1.7% increase
in FDI, while investment into South Af-
rica and Nigeria dropped by 77.9% and
60.4% respectively.
Merger and acquisition (M&A) activity
− sales of companies in the host econ-
omy to foreign transnational corpora-
tions − showed a better performance.
“Cross-border M&As, mainly in extractive
industries, registered an increase of
49%,” UNCTAD said.
Greenfield projects − normally the main
mode of FDI in Africa − suffered a de-
cline of about 10% in 2010. “The rise of
FDI from developing Asia and Latin
America to Africa was not yet enough to
compensate for the decline of FDI from
developed countries which still account
for the lion‟s share of inward FDI flows to
many African countries,” UNCTAD
added.
Globally, inflows of FDI rose marginally
by 1%, from $1,114 billion in 2009 to
almost $1,122 billion in 2010.
COMESA to Hold 4th Investment
Forum in Dubai
The fourth COMESA Investment Forum
will be held on 23rd to 24th March this
year, in Dubai the United Arab Emirates.
The forum shall bring together over
1000 leading international companies
and business representatives with policy
makers to discuss new investment and
business opportunities within Eastern
and Southern Africa where COMESA‟s
19 vibrant Member States are located.
The forum is being organised by CO-
MESA Regional Investment Agency (RIA)
in partnership with the Dubai Chamber
of Commerce & Industry, with the sup-
port of His Highness Sheikh Mohammed
Bin Rashid Al Mattoon - UAE Vice Presi-
dent, Prime Minister and Ruler of Dubai.
The objectives of the forum are to high-
light opportunities in the region and
promoting collaboration between CO-
MESA‟s Member States, Africa, the Mid-
dle East and the world at large. This 2
day high-level forum is expected to gen-
erate a large array of new business op-
portunities.
This year‟s event will be unique and
differs from previous forums because of
its collaboration with Dubai – the lead-
ing capital of business in the Middle
East. Dubai has established itself as the
city of possibility, where ambition, crea-
tivity, quality and exceptional leadership
have collectively driven the unimagin-
able growth of this city over a short span
of history.
China eyes $10bn investment in
Zimbabwe
China Development Bank could fund up
to $10-billion in Chinese investment in
Zimbabwe's mining and agriculture sec-
tor, a big boost for a country struggling
to attract foreign investors, a govern-
ment minister says.
"We have met with officials from China
Development Bank and they have said
they are willing to invest up to
$100billion in Zimbabwe," Tapiwa
Mashakada, minister of economic plan-
ning and investment promotion, told
Reuters on the sidelines of a business
conference in Harare. Reuters
Miners Have Wait-and-See Ap-
proach to Climate Change
The global mining sector is largely adopt-
ing a “wait-and-see” approach to climate
change actions, with only a few compa-
nies implementing sustainability meas-
ures while others cite the lack of a busi-
ness case to introduce any response, a
KPMG survey has found.
But in South Africa, the situation was
said to be quite different, as the local
mining industry was viewed as more
diverse and mature, with a growing
4
PAGE 4
awareness of the impacts of climate
change in the local economy.
A survey among the mining sector, con-
ducted by financial services company
KPMG, stated that less than 20% of
global mining sector players believed
that climate change was a significant
driver for new initiatives in their organi-
sation.
Almost 50% of the sector reported that
their companies had not quantified the
potential cost of climate change on their
business.
Some indicated that they were waiting
for better market signals before making
any decisions on climate change.
Only 30% of the organisations surveyed
were considering changing their policies
to address the climate change issue.
miningweekly.com
Good prices allows higher output
at Gemfields‟ Kagem Mine
Aim-listed Gemfields said says that pro-
duction for the first six months of its
2011 financial year at 18,7-million car-
ats had exceeded its entire prior year‟s
production of 17,4-million carats.
A significant increase in gem prices,
owing to a continuous increase in de-
mand, especially from Asian giants
China and India enabled the increase in
production, with the company producing
5.9-million carats for the quarter ended
December 31, 2010, and 12.8-million
carats during the previous quarter.
CEO Ian Harebottle said that the com-
pany‟s flagship Kagem mine in Zambia
enjoyed a robust production quarter,
while also delivering “phenomenal”
sales.
Gemfields reported a record single auc-
tion at its December auction, delivering
proceeds of $19.6-million. The company
completed five auctions in the past 18
months, realising revenues of $45.8-
million. He noted that the company had
now settled all bank loans and leases,
which left its key Kagem asset debt free-
mining weekly.com
ISSUE 22
ZRA fires up to hit 2011 target
AS the country wanes its dependency on
external sources to finance the national
Budget, the Government needs to sus-
tain a fine-tuned revenue collection sys-
tem able to deliver close to 80 per cent
of the required resources to the national
treasury.
The 2011 fiscal period is a critical one
as the country holds fast on the social
sector and infrastructure development
towards which about 50 per cent of the
K20.5 trillion national Budget has been
allocated.
The year remains critical also because
the national calendar accommodates a
major event, the presidential and gen-
eral elections, which require sufficient
resources and time.
Of course, the Government‟s main
source of revenue are taxes in various
forms which in this case should raise
about K16 trillion towards the national
Budget, whose other sources are inter-
nal and external borrowing as well as
grants from cooperating partners.
The Zambia Revenue Authority (ZRA) will
therefore be on the spotlight this year to
ensure sufficient revenue for the State
to fulfil its obligations. In any economic
disposition, tax administration, compli-
ance, and enforcement are critical as
gaps in any of these elements could
expose a country‟s national Budget to
shocks.
In last year‟s Budget, the country experi-
enced pressure which included by-
election expenditure, financing of fuel
subsidy at a cost of K400 billion, while
maize purchases financing amounted to
K1.3 trillion. A higher than expected
wage award was financed to the tune of
K262 billion.
The ZRA will have to live up to stake-
holders‟ expectation so that all projects
including the countrywide infrastructure
development remain on course.
ZRA governing board chairperson Christo-
pher Mundia said in Ndola at the week-
end that enhanced stakeholder participa-
tion will enable the institution adopt more
effective approaches to service delivery.
“We appreciate that a tax man is always
not appreciated. He is received with sus-
picion. Our bottom-line responsibility is to
collect revenue for the State and it is the
revenue so collected that schools, hospi-
tals are built and roads constructed,” he
said.
2011 Investment Climate Re-
form Agenda
The Government is committed to con-
stantly improving the investment climate
by cutting red-tape, reducing the cost of
doing business and contributing to enter-
prise growth, wealth and employment
creation.
As part of business regulatory reforms
ZDA director general Andrew Chipwende
said a one stop shop centre has been
established at the ZDA, composed of
officers from the ZRA, PACRA, Zambia
Public Procurement Authority, NAPSA,
CEEC and Immigration Department.
Mr. Chipwende said the Agency‟s 2011
investment climate reform agenda for
Zambia will include establishing and op-
erating a Business Licensing e-registry
web portal.
He said the web portal will be the Zam-
bian Government‟s authoritative online
source for Entrepreneurs and investors
seeking information about all approved
business licenses and permits required
for establishing and operating their busi-
nesses.
Zambia Plans Pineapple Canning
Plant
Varun Beverages intends to set up a
pineapple canning plant in Mwinilunga
District with the support of the national
government, according to a leading offi-
cial in the country.
Speaking in Lusaka, Felix Mutati, the
commerce, trade and industry minister,
said that the Zambia Development
Agency (ZDA) would hold discussions with
Varun Beverages, producer of Pepsi and
Mirinda carbonated drinks, on invest-
ment plans to set up a canning plant in
Mwinilunga.
Cross Border Company to ease
Congestion at Kasumbalesa
The Zambia Border Crossing Company
has set up a state of art border facility
that will drastically increase the flow of
traffic at Kasumbalesa border.
Chief executive officer, Avishay Dvir told
a team from ZDA that visited the new
U$25m border facility, that the facility
would handle more traffic and improve
sanitary conditions at the border. “
Trucks are queing because of lack of
facilities; the average time is beyond five
days….with the new facility it will be less
than five hours,” he said.
5
PAGE 5
The border facility is the first Public Pri-
vate Partnership (PPP) project in Zambia.
It is being developed under the build
operate transfer (BOT) framework.
Mr. Dvir said that the facility would be
ready to start operations on 7th February
2011, as most of the work had been
undertaken including water system, elec-
tricity and parking area to accommodate
about 400 trucks.
He was also proud to add that all the jobs
would be given to Zambians from the
chief executive officer to cleaner because
they were skilled people in the country.
The company will employ 250 people.
The company also plans to build a school
with six classrooms, a market to support
the community and will also establish a
community fund of K500 million to be
managed by the community.
“All in all this is a win-win situation be-
cause the community will benefit,” Mr.
Dvir said.
And speaking after the tour of the facility
Director General of the Zambia Develop-
ment Agency, Mr. Andrew Chipwende
said ZDA was happy with the work that
had been undertaken by the developer
noting that the facility will help to decon-
gest the traffic at the border.
Mr. Chipwende said that the facility would
increase tax collection by the Zambia
Revenue Authority and the developer has
also taken the burden off government of
building the infrastructure thereby saving
funds to spend on other needy areas.
He noted that the focus for the ZDA now
that the project was almost complete was
to work with the developer to extend the
commercial facility “to see if we can work
together to set up an industrial park,
which will provide an area for trading for
our SMEs. We hope this model can be
replicated to provide infrastructure in
other borders,” he said.
More jobs for Youths Coming
Government ministries and its stake-
holders have pledged to create more
employment opportunities and create
wealth for the youths to enhance the
development of Zambia.
The stake holders who included Govern-
ment ministries and the private sector
pledged and committed themselves to
empowering youths and women during
the official launch of the Micro, Small and
Medium Enterprise Development (MSME)
policy by President Rupiah Banda at
Kitwe‟s MOBA Hotel at the end of Janu-
ary.
ISSUE 17
More Jobs for Youths
Chamber of Mines President Nathan
Chishimba said his organisation had
recognised the need for infrastructure
development such as roads, drainage,
housing and social infrastructure and
pledged to play a role in the develop-
ment of local businesses.
Platinum Gold Equity limited representa-
tive John Serlemitos said $30 million
had been invested in the new Kitwe
Freedom park shopping mall which is
expected to open this year thereby creat-
ing 800 permanent jobs. Times of Zam-
bia
Saudi Firm to Invest $125m in Zambia
in 2011
Saudi firm Menafea Holding plans to
invest $125 million in a 5,000 hectare
farm in north-western Zambia during
2011, where it will grow pineapples and
build a factory to produce juice, a board
member says.
Khaled Alrajhi said Menafea would also
build 2,000 housing units in the Lusaka
South Multi Facility Economic Zone
(MFEZ) under the same agreement,
signed with Zambia's investment promo-
tion agency.
"We have been granted 5,000 hectares
of land to grow pineapples using the
latest technology and are going to put
up a factory to produce juice for local
consumption as well as export," Alrajhi
said.
Zambia Development Agency director for
investment promotion and privatisation,
Muhabi Lungu, said more Saudi firms
were expected to invest in Zambia.
In December, Finance Minister Situm-
beko Musokotwane said Zambia did not
regard leasing farmland to foreign inves-
tors as a form of "colonialism" and was
encouraging Gulf countries to invest in
its agricultural sector.
EAZ Commends Government
The Economics Association of Zambia
(EAZ) has commended Government for
the prudent economic management that
has started bearing fruits, as Zambia
heads towards the middle-income
status. EAZ executive director Alexander
Chileshe said the ranking of Zambia‟s
economic performance at number four
in Africa in 2010 by the American Cen-
tral Intelligence Agency (CIA) is a positive
development and a reward for good
economic management.
Zambia Charms Foreign Inves-
tors
(From Page 3)
Zambia was the favourable political and
easy-to-do business environment with
about 78 per cent of the investors fa-
vouring the situation.
Good governance is one of the essential
ingredients for sustainable investment
and the study says Zambia‟s environ-
ment far outstripped that of the region.
The investor decisions help boost the
economy by attracting Foreign Invest-
ment (FDI).
“Investor outlook points to optimism and
this means investor confidence in the
local economy is high, “ the report said.
World Bank gives Zambia $75
million for road works
The World Bank has released US$75
million to Zambia‟s road sector, the
first cash injection after the bank and
other cooperating partners suspended
funding to the sector last year following
allegations of corruption.
World Bank country manager Kapil Ka-
poor said in an interview in Lusaka yes-
terday that the cooperating partners
were satisfied with the measures that
had been put together by President
Rupiah Banda‟s Government to stop
corruption.
The donors to the sector last year an-
nounced a decision to withhold funding
and accused the Road Development
Agency of corrupt practices. They cited
the auditor general‟s report which indi-
cated that the agency had overcommit-
ted the Government to more than K1
trillion.
Dr Kapoor said stakeholders engaged in
talks with the Government and were
satisfied that the sector would perform
to their expectation. He said the Govern-
ment had worked hard to ensure that all
the concerns raised by the donor com-
munity were addressed.
He said the $75 million was an alloca-
tion for this year. He dismissed reports
that the World Bank attached rigid and
unfriendly conditions to its aid, saying it
only insisted that the money it released
should be used for intended purposes.
Dr Kapoor said the Government had
been exemplary in managing the affairs
of the nation with sustained economic
growth. Source - Times of Zambia
6
PAGE 6
Zambia One of the Hottest Desti-
nations in 2011
Zambia has been listed as one of the
top must see hottest destinations for
2011 along with Tibet, Australia and
Mexico.
Raw and undeveloped, the game-rich
nation of Zambia has long attracted
veteran travelers for its rugged walking
safaris and rustic bush lodges, but it has
remained relatively under the radar.
As a handful of major safari players lay
the foundation for a bigger presence in
the country, Zambia is poised to become
the next great African destination.
In June, Sanctuary Retreats will open
Zebra Plains, four luxe tents on South
Luangwa National Park‟s eponymous
river, which is frequented by elephants,
leopards, and giraffes. With vintage
campaign furniture and even a library,
it‟s the kind of old-world aesthetic usu-
ally only found in East African properties.
Ecotourism operator Wilderness Safaris
has expanded to Victoria Falls with Toka
Leya, where 12 tents on a riverbank are
linked by teak walkways. A handful of
new camps along the Zambezi River,
known for its adventurous canoe tours,
have cropped up. Among the best is
Sanctuary‟s Zambezi Kulefu, where a
large pavilion is lit with lanterns at din-
nertime. Not to be outdone, the smaller,
family-owned operators are revamping
their long-established bases as well.
Bush camp Company which pioneered
South Luangwa walking safaris with
Norman Carr Safaris and Robin Pope
Safaris has renovated all six of its park
camps, most stunningly at Zungulila,
where four thatched-roof dwellings have
canopy beds and plunge pools facing
the antelope-filled plain. -Travel +Leisure
Property yet to be disposed
ZDA is still looking at the best options to
dispose of companies seized by the
defunct Taskforce on Corruption.
Manager Privatisation Henry Sakala says
the agency will only go ahead to dispose
of the properties after government ap-
proves the options.
Some of the properties that were for-
feited to the state include Ndola Trust
School, St. George Fisheries in Mpu-
lungu, and Motor City Holdings among
others.
 ECONOMIC INDICATOR 4th QUARTER

Zambia Development Agency NOV DEC 2009 2010

1. Inflation Rate (%) 7.1 7.9 11.2 7.4
P.O Box 30819
2. Average 91 Day Treasury Bills Rate (%) 5.4 5.5 10.3 5.5
Nasser Road 3. GRZ Bond Yield Rate: (24-month) (%) 8.0 8.0 16.8 8.4
4. Average Commercial Banks Lending Rates (%) 26.7 26.4 29.5 26.7
Lusaka, Zambia 5. Exchange Rates: (ZMK / foreign currency):

US $ 4,680 4,700 4,617 4,710

Tel: 260-211-229240 EURO 6,500 6,300 6,900 6,400
Fax: 260-211-225270 BPS 7,390 7,400 7,600 7,490
E-mail: zda@zda.org.zm RSA 677 684 610 680
6. Agriculture Commodity Prices: (US $ / MT)
Website: www.zda.org.zm White Maize - - 319 212
Maize Meal - - 353 418
Wheat - - 373 447
7. Capital Market Activity
Equity trading:
No. of Trades ( No. of Transactions) 526 1,730 1,378 2,932
994,963,85 1,075,174,5
Volume of Trade (Qty of Shares Traded) 49,319,803 1 60,480,000 67
140,504,00
Turnover (US $) 6,512,000 0 8,392,600 151,716,000
8. Foreign Portfolio Investment: (US $)
195,997,00
Inflows (Buying) (US $) 2,552,000 03,189,000 201,449,000
-
Outflows (Selling) (US $) -1,494,000 -85,194,000 -3,020,000 193,388,000
110,803,00
Net Position (US$) -1,058,000 0 169,000 5,945,000
10. Prices on London Metal Exchange
From the left Mr.Aliko Dangote, chief executive
officer, Dangote Cement, Mr. Felix Mutati, Copper (US cents / Lb) 372 412 294 381
minister of commerce trade and industry and Cobalt (US $ / Lb) 12.9 12.9 19.3 15.1
Mr. Luke Mbewe, ZDA board chairman at the 11. Export of goods (K‟ Millions) 2,923,800* 2,971,800* 6,056,000 8,767,600
signing of the Investment Promotion and
12. Import of goods (K‟ Millions) 3,374,300* 2,111,400* 5,120,000 7,728,700
Protection Agreement (IPPA) between
Government and Dangote Cement Limited. 13. Trade Balance (K‟ Millions): (450,500)* 860,400* 936,000 1,038,900
Source: BOZ, CSO, LuSE, Zambia Agricultural Commodity Exchange, Metal Bulletin

Dangote to Invest U$400 million
(from page 1)
production capacity of 1.5 million tonnes
per annum. He said the establishment
of the plant in Ndola rural in Masaiti
area would enhance economic growth
and it was encouraging that the Govern-
ment of Zambia was attracting invest-
ment outside the mining area.
Dangote Cement, is the largest cement
production company in Africa with a
market capitalization of almost US$14
billion on the Nigeria Stock Exchange,
has subsidiaries in Benin, Cameroun,
Ghana, Nigeria, South Africa and Zam-
bia.
The Dangote Group is currently the larg-
est industrial conglomerate in West Af-
rica and it has generated revenue in
excess of US$1.25 billion. The group is
one of the leading diversified business
conglomerates in Sub-Saharan Africa. It
employs in excess of 11,000 people.
ZDA chairperson Mr. Luke Mbewe said
the feasibility study had been completed
for setting up of the cement manufactur-
ing plant and ancillary infrastructure in
Masaiti on the Copperbelt and the civil
works at the site had commenced.
Mr. Mbewe said Government issued an
investment licence in 2008 which was
now being implemented and would add
capacity to the existing cement plants
namely Lafarge, Zambezi Cement and
Oriental Quarries with the expectant
result being enhanced competition and
reduced prices to the consumer in the
long run.
He said the IPPA negotiation were con-
cluded by an independent negotiation
team and would enhance competition
once the plant starts production.
Mr. Mbewe said the investment of
US$400 million was above the U$10
million and qualifies for investment
incentives under section 58 of the ZDA
Act.
“The project will employ 1,600 person-
nel throughout the construction and
commercial operation phases of the
project,” Mr. Mbewe said.
The project will create direct benefits
and indirect benefits to the local com-
munity as result of increased economic
activities in the area.
The firm was expected to make an an-
nual turnover of US$75 million in the
construction and operational phase.
Foreign Investors not to be Dis-
couraged
Global lender, the World Bank urged for-
eign investors in Zambia not to be dis-
couraged in the consideration of bringing
Direct Foreign Investment in the South-
ern African nation despite the forth com-
ing tripartite elections to be held later
this year.
Zambia experienced a reduction in the
investment inflows as well as a shakeup
in the economy during the previous elec-
tions, which was attributed to the uncer-
tainties of who takes over the reigns of
government. The economy is this year
expected to grow more than six percent,
hence there is no need for investors to be
worried about the safety of their money.
Country manager Mr. Kapil Kapoor said
recently that foreign investors should not
be agitated with the oncoming elections
in the country in the year. He told a local
radio that there is no need for Zambian
investors to be agitated with the elections
considering the stable environment in the
country.
Mr. Kapoor urged the government to
continue focusing on infrastructure devel-
opment including agriculture and other
vital sectors of the economy for growth.