Zambia , 2015
On 8th September, 2015, The AFCHAM was received by His Excellency, Mr. Humphrey Chilu Chibanda, Ambassador extra ordinary and plenipotentiary of the Republic of Zambia in France. Focused and shared growth between Zambia, China and Europe. Home of the mighty Victoria Falls, Top ten fastest growing economy in the world Zambia, a hidden jewel of Africa is located in the southern part of Africa covering an area of 752, 614 km² and bordering 8 countries namely; Angola, Malawi, Mozambique, Congo DR, Namibia, Tanzania, Botswana and Zimbabwe. The country has enjoyed a stable political environment since it got independence on 24th October, 1964. It has no record of war or civil strife and last it celebrated its golden jubilee to mark 50 years independence for continued peace, unity, democracy, patriotism and prosperity. The Economy: Zambia’s economic performance in recent years has been positive. The real Gross Domestic Product (GDP) grew by 6.0 percent in 2014. This marked the eight year in a row in which the economy grew above 5 percent. Zambia continued to recorded strong growth in 2014 mainly due to increased output in mining and quarrying, manufacturing, tourism, construction and agricultural sectors. The Government has put in place measures to diversify the economy from the traditional (copper and cobalt production) to non-traditional production and exports (products and exports other than copper and cobalt). The non-traditional products began to exhibit a positive and favorable performance in value terms in the country’s balance of payments. The export of these products increased by fifteen fold from US$ 210 million in 2000 to over US$ 3.3 billion 2014. The government has remained steadfast in promoting private sector development and as such, it has implemented a number of reforms to ease the hustles that private business may go through to open and operate a business. This has resulted in increased foreign direct investment inflows into Zambia from barely over a USD 100 million a decade ago to over USD 2 billion currently. Zambia with a population of just over 14 million people provides a huge market of over 500 million people as it a member of both Common Market for East and Southern Africa (COMESA) and also the Southern Africa Development Community (SADC) regional economic blocks that allow duty and quota free of exports from Zambia. In addition, Zambia has various bilateral trade agreements and also exports to the European Union under the everything but arms initiative, to China under the Chinese trade initiative, to Japan under the Japanese trade initiative and to the United States of America under the African Growth and Opportunity Act (AGOA). As for registering a business in Zambia, investors can register a company within 24 hours at our recently established One Stop Shops. Zambia – China Relations The Sino – Zambia relations dates back to 50 years ago. Zambia opened it diplomatic relations with China four (4) days after attaining its independence in 1964. Therefore, ties between Zambia and China remain cordial and warm. In 1975, China built a historical monument that symbolizes the friendship between Zambia and China, the TAZARA railway, a 1,860 km railway line linking Dar es salaam in Tanzania with the town of Kapiri Mposhi in Zambia's Central Province. Zambia is trading over USD 4 billion with China and the Chinese companies have investment more than USD 2 billion in the Zambian economy. The bilateral ties between the two countries have continued to grow from strength to strength for mutual benefits. Incentives : - Corporate income tax : - 0% for 5 yrs, 50% rate for year 6 & 7 and 75% rate for year 8 & 9 and Full rate year 10. – Zero duty of capital items. – Import VAT deferment. Priority Sectors for Investment: – Public Private Partnership (PPP) and Infrastructure: Investment through the PPPs especially to construct various infrastructures around the country. Investors to carry out feasibility studies and construct various railway lines on a Build Operate and Transfer basis are being sought. Potential partners to provide financing, develop and manage the Lusaka South Multi Facility Economic Zone (MFEZ) are also been sought. – Manufacturing: Value addition activities in the food beverages, textiles and leather sub sectors and locating in the existing MFEZs to undertake manufacturing activities. – Tourism: Investors are been sought to develop identified tourism resorts in the Northern Circuit and the Greater Livingstone areas specifically in the existing National Parks and Waterfalls. – Agriculture: Zambia has embarked on the development and commercialization of 9 Farm Blocks by making land available for large scale investment to the private sector. It is also looking for investors to invest in pineapple and cotton growing and cluster development. – Energy: With up to 6000 MW capacity to generate hydro power, the country only generates up to 1,930 MW hence opportunities exist to develop hydro power stations. In addition, development of mini hydro power stations is being sought. – Mining: Copper mining has dominated the sector but other minerals exist such as iron, manganese, coal, nickel, gemstones and industrial minerals ready for exploration and development. Ten reasons to invest in Zambia - Stable political system : no civil strife since 1964 Ø Positive and investor friendly economic environment Ø Investment guarantee and securities Ø Abundant natural resources presenting excellent investment and trade opportunities Ø 3 Thriving private sector Ø Attractive investment incentives Ø Unlimited repatriation of profits Ø Progressive banking, legal and insurance services of international standards and stock Ø exchange market Duty free access to regional, wider Africa, EU and USA market Ø Good place to work & live, friendly people with a rich culture .