zamia: afria’s new frontier for - developing markets...investment opportunities: 1. divesture of...
TRANSCRIPT
![Page 1: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/1.jpg)
Zambia Development Agency
ZAMBIA: AFRICA’S NEW FRONTIER FOR INVESTMENTS AND PROFITS
LONDON 4TH NOVEMBER, 2015
![Page 2: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/2.jpg)
Presentation Outline
Priority Sectors and Investment Opportunities
Location of Zambia
Economy at a glance
Why Invest in Zambia
ZDA: Your Gateway to Zambia
![Page 3: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/3.jpg)
RSA
KENYA
Dar-es-Salaam –2hrs 4mins
Addis Ababa – 4hrs 9mins
Windhoek – 2hrs
Lubumbashi – 1hr
By Road
By Air
By Rail
![Page 4: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/4.jpg)
COMESA – 2014Approx. 482 million peopleReal GDP US $ 353.8 billion
SADC - 2014Approx. 301 million peopleReal GDP US $ 529 billion
Zambia
![Page 5: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/5.jpg)
![Page 6: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/6.jpg)
Foreign Exchange Reserves
• $3.04 Billion (Dec.2014)
Area: 752,614km2 (39th)
Population: 15.02 million (2014 est.)
ECONOMIC STATISTICS
GDP : $ 27.1 billion (2014)
Per Capita: $1, 802 (2014)
GDP Growth Rate 6% (2014)
Inflation (CPI): 7.7% (Sept. 2015)
![Page 7: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/7.jpg)
2014 Mo Ibrahim’s Index of
African Governance 52 Countries
Global Competitiveness Index
2014–2015 of 144 Countries
2015 World Bank’s Ease of Doing
Business Out of 189 Countries
![Page 8: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/8.jpg)
At 6% GDP growth rate in 2014, Zambia was the seventh fastest growing economy in Sub Saharan
Africa and tenth in the world.
![Page 9: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/9.jpg)
![Page 10: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/10.jpg)
![Page 11: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/11.jpg)
Proportion of income households spend on food has declined significantly implying increased demand for non-food items
Trend is expected to continue as Zambia’s economic growth has remained strong
0
10
20
30
40
50
60
70
2002 2004 2006 2010
64 65
41.948.5
36 35
58.151.5
Food Non-Food
Source: Central Statistics Office
![Page 12: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/12.jpg)
Priority Sectors and Investment Opportunities
![Page 13: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/13.jpg)
Agriculture
ManufacturingTourism
EnergyPriority Sectors
Infrastructure
![Page 14: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/14.jpg)
Total land area: 752, 614 km2 , 58% arable but only 14% is currently being
utilized
Total irrigation potential: 2.7 million hectares; only 6% is currently being
utilized
Sector includes livestock, crops, fisheries and forestry.
Investment opportunities exist in;
1. Farm blocks: (100,000ha)
2. Grain storage facility: Development of a 48,000mt steel silo storage
facility
3. Timber plantation: commercial exotic plantation of 50,000Ha of land
4. Yatu Tea: expansion of tea production on a 2000Ha land. Currently
producing 30ton/month of packaged tea
![Page 15: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/15.jpg)
Zambia’s hydro resource potential is estimated at 6,000 MW.
Solar energy: Up to 3,000 sunshine hours per year.
Biomass resource estimated potential is 500MW (agriculture, forest and
Municipal waste).
Geothermal: there are more than 80 hot springs occurrences in Zambia.
Investment opportunities;
1. Development of Solar farms (Target Minimum 600MW)
2. Geo-thermal plant
3. Biofuel Energy Projects
4. Hydro Power: Kafue Gorge –750MW, Batoka Gorge – 1600MW
Chishimba Falls -14.8MW, Luswishi-15MW, Musonda Falls-10MW
![Page 16: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/16.jpg)
The manufacturing sector in Zambia accounts for about 11 percent of
the country’s Gross Domestic Product (GDP)
The sector has high investment potential due to Zambia’s resource
factor endowment: raw materials, labor force, land, water, and
minerals.
Investment Opportunities:
1. Divesture of 49% Government shares in Indeni oil Refinery
2. Agro Processing: edible oils, food processing
3. Mineral Processing: copper, cobalt, gemstones
4. Light Engineering: Agriculture Equipment
![Page 17: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/17.jpg)
A land-linked country surrounded by 8 countries thus access to sea ports andinternational markets is through roads, rail, and air
Government invites the private sector to finance infrastructure projects through the PPP
Investment opportunities:
1. Roads: Link Zambia 8000 (km) projects
2. Real Estate: Government Office accommodation, Redevelopment of the ZambiaInternational Trade Fair Grounds, Mukuba Hotel, Twin –Palm Housing project, andGolf Estate.
3. Industrial structure: MFEZs and Industrial parks
4. Railway Projects: Lusaka Mass transit railway, Kafue(Zambia) – Ziwa (Zimbabwe)Railway, TAZARA Nseluka – Mpulungu port, Mchinji/Chipata Railway
5. Ports and Habours: Redevelopment of Mpulungu Habour, Walvis Bay, Lobito andMombasa
![Page 18: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/18.jpg)
Tourism is one of the fastest growing sectors in Zambia
It has the potential to be a major contributor to socioeconomic development asan important source of jobs, prosperity and competitiveness.
Key assets include pristine national parks and game management areas, whichare home to a great diversity of wildlife and flora.
Investment Opportunities:
1. Mulungushi International conference center redevelopment
2. Livingstone Hotel and conference center: Development of an ultra-modernmulti-purpose conference facility.
3. Lodges: Kafue South National park – 250 beds, and Luangwa South NationalPark Lodge - 120 beds
4. Northern Circuit – Hotels, Lodges and Campsites in Nsumbu National Park
![Page 19: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/19.jpg)
Sector accounts for over 65.5% of FDI and about 80% of exportsearnings
Mineral resources include: metals, gemstones, industrial minerals,agricultural, building and energy minerals
Zambia is the second largest copper producer in Africa
Zambia produces about 20% of the world’s emeralds: the most soughtafter due to their deep green color
Zambia has successfully hosted seven local emerald auctions.US$14.5 million was realized in the fifth emerald auction held inFebruary 2015.
Investment opportunities exist in the extraction and processing ofvarious mineral resources including diamonds, gold, and uraniumamong others.
![Page 20: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/20.jpg)
SECTORPROFIT BY SECTOR
(US$ MILLION)
RETURN ON
EQUITY (%)
MINING AND QUARRYING 349.1 3.5
MANUFACTURING 329.1 27.4
FINANCIAL INSTITUTIONS 136.9 18.2
INFORMATION & OMMUNICATION 56.8 16.1
WHOLESALE & TRADE 49.1 8.9
REAL ESTATE 44.8 14.6
AGRICULTURE, FORESTRY & FISHING 11.4 2.8
TRANSPORT AND STORAGE 6.1 9.1
CONSTRUCTION 0.6 0.7
Source: Foreign Private Investment & Investor Perceptions Survey 2014
![Page 21: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/21.jpg)
Tax Incentives
• Corporate Income Tax : 0% for 5 years
• Zero percent tax rate on dividends for 5
years
• No Import Duty on equipment and
machinery for five years
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
![Page 22: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/22.jpg)
Implemented 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
• Production of Ethanol Cassava in KawambwaDistrict, LuapulaProvince
• Out-grower scheme targeting 20,000 small scale farmers
• Project Cost: $150million
• Expected employment: 600 direct jobs
Mansa Sugar
• SakizaSpinning Limited in partnership with the Kenyan investors.
• Sugar cane plantation and a sugar processing factory Land
• Project cost:
• Expected employment:
Buffalo Consortium
• Cement and Lime Production
• Project cost: $500,000,000
• Expected employment:
![Page 23: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/23.jpg)
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.
![Page 24: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/24.jpg)
ZDA: Your Gateway to Zambia
![Page 25: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/25.jpg)
• Established by an Act of Parliament, ZDA Act No 11 of 2006
• Commenced operations in 2007 after the merger of five quasi-government institutions, namely• ZPA,
• SEDB,
• EBZ,
• ZIC, and
• ZEPZA
Establishment
• To foster economic growth and national development by promoting trade and investment in Zambia through an efficient, effective and coordinated private sector led economic strategy …”
Purpose
• Facilitate Trade andInvestment
• Facilitate capacitybuilding tocontribute to theGrowth andCompetitiveness oflocal private sectorbusinesses
• Facilitate access tointernational ExportMarkets
• Provide Informationand AdvisoryServices tostakeholders
Key Functions
![Page 26: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/26.jpg)
![Page 27: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/27.jpg)
![Page 28: ZAMIA: AFRIA’S NEW FRONTIER FOR - Developing Markets...Investment Opportunities: 1. Divesture of 49% Government shares in Indeni oil Refinery 2. Agro Processing: edible oils, food](https://reader035.vdocuments.site/reader035/viewer/2022070109/60443b784f282645da39b9c6/html5/thumbnails/28.jpg)
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
Contact us for further Information:
Patrick D. ChisangaDirector General
Zambia Development AgencyPrivatisation House, Nasser RD
P.O. Box 30819, LUSAKA, ZAMBIA.
Tel: +260 211 220177Fax: +260 211 225270
Website: www.zda.org.zmEmail: [email protected]