Zda Spotlight March 2009


Published on

The ZDA was established in 2006 by an
Act of Parliament and began operating
in January 2007 after the amalgamation
of five agencies that hitherto operated
independently to foster economic growth
and development by promoting trade
and investment through an efficient,
effective and coordinated private sector
led economic development strategy.
These agencies were the Zambia Investment
Centre, Zambia Privatisation
Agency, Export Board of Zambia, Small
Enterprise Development Board and Zambia
Export Processing Zones Authority.

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Zda Spotlight March 2009

  1. 1. Zambia Zda Spotlight Development Agency Issue 1 March 23 2009 Inside this issue: U$10M CELL PHONE PLANT OPENED TATA buys Kabwe Tan- 2 stressed that the govern- nery 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 the economy. “Keeping SME’s On The Match 2 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 said. President Banda said Citrus Plantation in the 3 Zambia now boasted of Offing home grown corporations which he said were among COMESA Well Endowed 3 the largest in Africa. With Natural Resources The government, he added, was determined to con- Business Development 4 tinue facilitating actual Services Set To Expand President Rupiah Banda production of mobile phones as this would than 200 Zambians in vari- A U$10 million mobile greatly help reduce the phone manufacturing plant, ous capacities. Among them cost of communication in known as M-mobile Telecom- Points of Interest the country. He said this are engineers, technicians munications Zambia Limited was aimed at adding value and many others in various (M-Tech), has officially • “Keeping Zambia com- to the country’s economic technical fields. He was opened in Lusaka, the first petitive begins with keep- development process, happy that the company cellular phone manufactur- ing our economy growing. which was a significant would benefit Zambians ing company to open in the And our economy can step towards the realiza- through employment crea- country. President Rupiah only grow when a lot tion of Zambia’s Vision tion, technology transfer and Banda, who officially more Zambians invest in 2030 of transforming into human resources develop- launched the plant , said the the domestic economy,” a middle-income country. ment among other areas. He company would employ more • 15% cash rebate for quali- fying expenditure in movie making in Zambia ZDA Approves U$179.3 Investment • A significant 82 percent of the companies that par- ticipated in a survey indi- Thirty six applications for sectors The approved pro- rest of the applications were cated that they would investment Licence have jects are expected to create from agriculture, health and expand their businesses been approved from January about 1,500 job new oppor- tourism sectors. Once imple- which points to investor to date with a planned in- tunities. In month of January mented the projects will cre- confidence in the domes- vestment value of U$179.3 2009 twelve applications ate 607 jobs. tic economy million. In March twenty four were approved with planned The planned investment in applications were approved investment of U$39.3 mil- various sectors of the econ- with a total value of U$140 lion. Quote omy is as a result of the fa- million of planned invest- Manufacturing accounted for vourable investment climate ment mostly in manufactur- Investors have very short ninety percent of the ap- resulting from Government’s ing, transport and tourism memories. R. Abramovich proved projects while the sound economic policies. 1
  2. 2. PAGE 2 IS SUE 1 to its diversification efforts. He was TATA Buys Kabwe Tannery Credit Guarantee Scheme Coming… speaking when he met investors from TATA International through its local sub- Canada, India, and Malaysia. Mr. Mutati The Minister of Commerce Trade and sidiary, TATA Zambia, has purchased said government will make a practical Industry, Mr. Felix Matati, is expected to Kabwe Tannery at a consideration of process of translating initiatives into soon launch the Credit Guarantee US$ 1,165,000 for core assets only. investments and agree on a clear road- Scheme (CGS) for MSEs. The CGS is TATA International was selected as a map on what should be done at the end expected to provide cover, on a portfolio preferred investor owing to its vast ex- of the discussions with the investors. basis, to participating financial institu- perience in the tannery business. 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 access credit due to inadequate collat- tary, Dr. James Mulungushi, said the form a joint partnership with Zambians eral arrangements. tannery had struggled to reach full pro- to set up investments in the country. duction due to under-capitalisation Business Incubator Programme On “As government, we are providing a facil- hence the sale of assets. 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 gramme with the preliminary studies ees are paid in due course. The Com- would make sure that this programme finalized. The national business incuba- pany has 32 employees who have not reaches its logical conclusion. tor programme is expected to be a self been paid their salaries for over 50 At the same occasion, Ink-Media Chief months now. Tata plans to invest a fur- financing, public-private partnership Executive Officer, William Plant, a Cana- ther U$3.3 million and to create supplier responding to the business service dian investor, said it was essential that a opportunities for local hide producers. needs of early stage MSEs. computer assembly plant is established in Zambia because the country was cen- Challenges Of Doing Business Linking SMEs to TNCs trally located. Mr. Plant said Ink-Media is Land acquisition, obtaining electricity trying to help bridge the digital divide by A business linkage programme to link connection, and immigration permits are bringing the assembly of computers to SMEs to trans-national corporations as a major challenges in the process of es- Zambia. tablishing new businesses in Zambia, way of developing SME’s market ac- He stressed that Ink- Media was creat- say most investors talked to by the Zam- cess is being undertaken with the sup- ing a plant in Zambia to stimulate the bia Development Agency (ZDA). port of UNCTAD. The plan is to link vari- people to develop an interest in using ous corporations in manufacturing, ser- During its monitoring exercise of compa- computers. vice and agriculture with SMEs. Sensiti- nies holding investment Licences, ZDA zation meetings have been held with learnt that some companies were forced SME’s On The March…. to delay implementation of projects due various corporations and after product Despite the global credit crunch, a total to these hitches. One company indicated identification, sensitization will be held of 33 applications by Micro and Small that it took about 15 months to acquire with SMEs. Enterprises (MSEs) were approved by land while another waited for six months the ZDA in March 2009, representing for installation of electricity. Skills Development Continues… realized investment of K 1.12 billion A number of companies also indicated with a further K 587 million planned that they experienced delays in getting In the first week of March, ZDA con- investment. These MSEs currently em- 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 days and it is expected that the training “This is a positive development further investors on various issues related to will enhance the ability of these MSEs in emphasizing the critical role MSEs are the investment climate in Zambia. 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- basis with the SMEs. ZDA will provide business development ment creation pledges. services, help improve entrepreneurship ZDA Partners Goldberg Associates Government To Support Private In- skills and improve the ability to access Citizen's Economic Empowerment Com- vestors 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- Zambian transactions by creating a The approved MSEs are in engineering tors to set up their investment and cre- bridge between international suppliers products, food processing, candle manu- ate jobs in the country. Minister of Com- of finance, goods, and services and facture, carpentry, veterinary services, merce Trade and Industry, Felix Mutati Zambian businesses. and transport. said government has nine companies which are introducing a new dimension 2
  3. 3. IS SUE 1 PAGE 3 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- places Mrs. Mukuka Zimba. The Board Results have been released from a COMESA Region is well endowed with Chairman , Mr. Luke Mbewe, has since study entitled “The Economic Impact of natural resources, including fertile soils, sent a message of gratitude to all former Direct Investment on the Zambian Econ- large water resources, oil, Board Members for their commitment omy.” The study highlights findings from gold ,diamonds and copper in addition and work particularly in the establish- the Direct Investment Impact Survey to more than half of the world’s cobalt ment phase of the Zambia Development (DIIS) conducted by ZDA with Bank of and manganese and more than 80% of Agency. Zambia and Central Statistic involve- the world’s reserves of chromium and ment and the support of the European platinum and rich mineral deposits. In a Movie Making Set to Boom Union’s Capacity Building for Private presentation to the second COMESA Regional Investment Conference (RIA) Sector Development. With the announcement in the National held in Cairo, Egypt, Mrs. Heba Salama, Budget of the 15% cash rebate for quali- The survey results, from the companies the COMESA RIA Manager, said these covered in the sample were consistent fying expenditure in movie making in resources have without a doubt an- with other studies and revealed signifi- Zambia, it is expected that once passed, chored national development efforts and 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 measure will put Zambia in the same She said despite the adverse effects activities. standing as countries that offer actual that the global financial crisis may have A significant 82 percent of the compa- cash grants and upfront investments to on the COMESA Region in the short 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- all the scenic sites and this incentive dence in the domestic economy while tions for companies to keep afloat. The Zambia is well positioned to become a other results revealed that a bright eco- launch of the COMESA Customs Union movie making centre. nomic outlook is envisaged with 77 per- this year would be another step in the cent of respondents saying they ex- integration agenda after the region at- ‘Incentivizing” New Industrial Park pected Zambia’s economic future to be tained the Free Trade Area, she added. bright. Developers The establishment of a COMESA Cus- 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 in the 2009 National Budget for devel- create a wider customs territory that is 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 investments. creating an impetus for setting up new development, ultimately impacting on government’s major challenge of reduc- industrial zones country wide. Fiscal COMESA’s ability to increase FDI has ing poverty. incentives hitherto were not applicable improved and In fact has been very en- 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 Zambia To Host North South Cor- role in the economy. The setting up of the plantation and the ridor Conference processing plant is an initiative of the ZDA Gets New Board Members local and provincial administration with 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 ence on the North South Corridor on 6 to pointed to the ZDA Board by Govern- endemic poverty in the province. ment. The new Board members are Mr. 7 April, 2009 in Lusaka. The North Likolo Ndalamei, Secretary to the Treas- South Corridor Pilot-Aid-for-Trade Pro- A ZDA team that visited the area to- ury who has replaced Mr. Evans Chibiliti; gether with the Senanga and Mongu gramme is a joint COMESA-EAC-SADC Dr James Mulungushi, Permanent Secre- district officials recommended that the initiative that aims to reduce the time tary Ministry of Commerce Trade and area should immediately be transformed and cost of road and rail transport on Industry, replaces Mr. Davidson Chilipa- from traditional land to state land and the corridor spanning eight countries. mushi, while Dr Simon Mitti, Permanent for a technical report to be submitted to Secretary Science and Technology takes The conference aims to secure donor, IFI the ZDA by the project initiators, in con- over from his predecessor, Dr. Buleti and private sector Aid-for-Trade to fi- junction with the Ministry of Agriculture Nsemukila. and Co-operatives, to ensure that the nance the removal of infrastructural project attains full implementation. bottlenecks and secure commitments Others who have been appointed are Dr. for members of the three regional blocks Goldwin Beene, Permanent Secretary This will facilitate the preparation of a to address regulatory and administrative Mines and Mineral Development, who project proposal to attract investors in takes over from Mr. Leonard Nkhata, Dr. constraints blocking expansion of trade the area. Winnie Mwenda, Permanent Secretary and economic growth. Labour and Social Security, replaces Mr. 3
  4. 4. Zambia Development Agency Events P.O Box 30819 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 Eastern Chipata 1-2 April 2009 Website: www.zda.org.zm 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 Mobilisation of validation meeting (Lusaka) 15 May 2009 “To become a world class Agency for the promotion and facilitation of economic development.” Validation meeting 26-28 May 2009 Zambia Development Agency Power In Numbers Business Development Services Skills Training Continues.... set to Expand In the third week of March, Gender in Sensitisation on Small Aggregation Ini- Development Division (GIDD) in conjunc- tiatives (SAIs) has been conducted for The Business Development Services tion with ZDA conducted a training pro- welders from Lusaka’s Kalingalinga gramme on entrepreneurship & busi- (BDS) Voucher Programme has issued a 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 farmers in Nega Nega, and ZESCO retir- perbelt. The SAIs encourage entrepre- ZCSMBA in Petauke, Mumbwa, Kasama ees in Livingstone. neurs involved in complimentary prod- and Livingstone. The BDS is a non- ucts to work in organized groups and Zambia Development Agency financial intervention designed to assist pool their resources together, share 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 and development by promoting trade be rolled out to 16 additional districts 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. buka, Choma, Mansa and Chipata. The This initiative is to be extended to weld- These agencies were the Zambia Invest- BDS Programme augments the CEE ment Centre, Zambia Privatisation ers in Garden compound in Lusaka, and Fund in that it helps SMEs build capac- Agency, Export Board of Zambia, Small Southern Province. A similar initiative is Enterprise Development Board and Zam- ity to access CEE funding. being contemplated for the owner-driver bia Export Processing Zones Authority. bus concept. 4