ZAMBIA : Africa’s New Economic Frontier Zambia Development Agency

Doing Business in Zambia

ZDA Mandate

Business Reforms Undertaken

Economy at a glance

Why Do Business in Zambia

Business/Investment Opportunities

ZDA: The gateway

Economy at a Glance

Foreign Exchange Reserves

• $3.04 Billion (Dec.2014)

Area: 752,614km2 (39th)

Population: 15.02 million (2014 est.)

GDP : $ 27,031.8 billion (2014)

Per Capita: $1,787.8 (2014)

GDP Growth Rate 6% (2014)

Inflation (CPI): 6.9% (May 2015)

Zambia by Numbers

Economy at a Glance

Index of African Governance out of 52 Countries

2012 Rank2011 Rank

Source: www.moibrahimfoundation.org

Categories considered in the rank;

Safety & rule of law

Participation & human rights

Sustainable economic development

Human development

Political performance;

Mature Democracy

Smooth transition of power – 6 presidents,

3 Political parties

50 years of independence

No political strife or civil war

2013 Rank

Stable Political & Social Environment

UNCTAD: In 2013, Zambia had the highest FDI inflow among the

16 landlocked countries in Africa.

At 6% GDP growth rate in 2014, Zambia was the seventh fastest

growing economy in Sub Saharan Africa and tenth in the world.

Economic Growth 2004 - 2014

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

5,4 5,3

6,2 6,25,7

6,4

7,6

6,6

7,7

6,66

Source: CSO and MoFNP

Trend in FDI Inflow (Million US $) 2004 – 2014

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

364 357616

1324

939695

1729

1108

1732 1811

2231,5

Source: UNCTAD's World Investment Report 2014, and MoFNP

Economic Performance

DB reform – simple mapping..

http://www.zda.org.zm

I want to do business

Lawyers

Co Reg

Municipal

Tax

State Agency

Other State

Agency

Another State

Agency

FINISH

I can do business..at last

Some Key Reforms Undertaken

Business license inventory set up

Minimum paid up capital requirement removed

Business registration reduced to one day

VAT registration reduced to one day

ICT, MSME, Energy, PPP Policies developed

Several laws reviewed or created (PPP, ICT, Companies Act)

One stop Border post at Chirundu operational.

Customs clearance takes three days for import and one day for exports

Simplified trade regime has been introduced through between Zambia-Malawi and Zambia-

One Stop Shop (OSS) for business registration established

Small claims court established

Zambia: Africa’s New Frontier for Investments and Profits

Sector Profit by Sector Return on Equity (%)

Accommodation and Food 3.1 4.6

Agriculture 14.1 13.6

Construction 5.3 10.2

Deposit Taking Corporation 93.7 13.5

Finance and Insurance 1.8 12.3

Information and

Communications -30.2 -3.2

Manufacturing 195.2 33.8

Mining and Quarrying 708.1 15.1

Professional, Scientific and

Technical Services 0.0 16.0

Transport 0.8 1.5

Wholesale and Retail 100.3 36.3

Other Sectors 0.4 0.1

Doing Business in Zambia - Profitability

Source: Foreign Private Investment & Investor Perceptions Survey, 2014*

1 2

34

• Manufacturing

• Infrastructure

• Mining

• Agriculture

• Tourism

• Energy

• Promote GROWTH

of SMEs

• Service Delivery

The current Strategic Plan, covering 2013 - 2015 period addresses the following

priority sectors:

ZDA Mandate

Priority Sectors

Tax Incentives • Corporate Income Tax : 0% for 5 years

• Zero percent tax rate on dividends for 5

years

• No Import Duty on Capital Goods,

Machinery & Specialised vehicles

2

Location Support• Multi Facility Economic Zones

• Industrial Parks

• Rural Area

Non-Tax Incentives• Investment guarantees and protection

• Free facilitation for application of

permits, licenses, land acquisition and

utilities

3

1

Investment Opportunities

Agriculture Infrastructure Tourism Energy Manufacturing

Timber plantation

–

50,000 ha

Roads

Link 8000 km

projects

International

Conference

Centre's

• Mulungushi – 19.2 ha

• Livingstone – 16Ha

Hydro Power

station

• Kafue Gorge –

750MW

• Chishimba Falls -

14.8MW

• Luswishi-15MW

• Musonda Falls-

10MW

Divesture of 49%

Government

shares

in Indeni oil

Refinery

Grain storage

facility

–

48,000mt capacity

Railway

–

2,500 km railway

lines

Agro Processing

–

edible oils, food

processing

Farm blocks

(100,000ha) – Luena

and Luswishi

Industrial structure

- MFEZs

- Industrial parks

Hotels

• Livingstone

250 bed capacity

•Kafue South

National park – 250

beds

Mineral

Processing

copper, cobalt,

gemstones

Real Estate - ZITF Rehabilitation

- Twin palm housing

project

Geo-thermal plant

-

Light Engineering

-

Agriculture

Equipment

Investment opportunities still exist…

Recent Projects

• Zambian BreweriesUS$32 million

• Dangote Cement US$400 million

• Zambia Sugar Expansion Project -US$82 million

• Silverest Housing Project – US$16 million

• Global Plantation –US$ 200 million

Sun Bird Investments Ltd

• 20,000 Ha of land secured on behalf of Investor to produce Ethanol Cassava in Kawambwa District, Luapula Province

• Out-grower scheme targeting 20,000 small scale farmers

• Land acquisition completed at district level and applications are due for submission to Ministry of Lands for Offer and Number

• Investment worth $150million

• 600 direct jobs to be created

Mansa Sugar

• Sakiza Spinning Limited in partnership with the Kenyan investors.

• To establish a sugar cane plantation and a sugar processing factory Land 2,500 Ha acquired with the help of ZDA for a nursery

• Land has already been identified by the ZDA in collaboration with the Luapula Provincial and District Administration.

• Provincial Administration done recommendations

• Documents submitted to Ministry of Lands for

Buffalo Consortium

• This project involves the establishment of a $500, 000,000 Cement and Lime Production

• Feasibility studies conducted

• The lime stone mine has already been identified and the project is at an EIA stage

Projects in Pipeline

1 Stable Political System

2Positive and investor friendly economic

environment

3 Investment guarantee and securities

4

Abundant natural resources presenting

excellent investment and trade

opportunities

5 Thriving private sector

6 Attractive investment incentives

7Unlimited repatriation of profits & no

exchange controls since 1994

8Duty free access to regional, wider

Africa, EU and USA Market.

9

Progressive banking, legal and

insurance services of international

standards and stock exchange.

10Good place to work and live friendly

people with a rich culture.

SUMMARY10 Reasons to invest in Zambia

ZDA: The Gateway to Zambia

A-to-Z information on the Zambian market

Guidance through the entire export and investment process and aftercare

Provision of matching Zambia partnersand building contact networks

Global export market information & product development

SME & business development services

Zambia Development AgencyPrivatisation House, Nasser RD

P.O. Box 30819, LUSAKA. ZAMBIA

Tel: +260 211 220177Fax: +260 211 225270

Website: www.zda.org.zmEmail: info@zda.org.zm