The European Times - Zambia by The European Times

ZAMBIA

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introduction

Facts and Figures Official Name: republic of Zambia Location: southern africa, east of angola, south of the Democratic republic of the Congo Capital: Lusaka Border countries: angola (1,110 km), Democratic republic of the Congo (1,930 km), malawi (837 km), mozambique (419 km), namibia (233 km), tanzania (338 km), Zimbabwe (797 km) Climate: Tropical, modiﬁed by altitude, rainy season (October to april) Population: 14,222,233 ( July 2013 est.) Ethnic Groups: African (99.5%) Bemba, Tonga, Chewa, Lozi, Nsenga, Tumbuka, ngoni, Lala, Kaonde, Lunda, and other african groups Other (0.5%) Europeans, Asians, and Americans Religions: Christian (50%-75%), Muslim and Hindu (24%-49%), Indigenous beliefs (1%) Official Language: 11 Bantu languages: Bemba (30.1%), Nyanja (10.7%), Tonga (10.6%), Lozi (5.7%), Chewa (4.9%), Nsenga (3.4%), Tumbuka (2.5%), Lunda (2.2%), Kaonde (2%), Lala (2%), Luvale (1.7%)

Legal system: Mixed legal system of English common law and customary law; judicial review of legislative acts in an ad hoc constitutional council. Chief of state: President Michael Chilufya Sata (since 23 September 2011); Vice President Guy Scott (since 30 September 2011); The president is both the chief of state and head of government. Head of government: President Michael Chilufya Sata (since 23 September 2011); Vice President Guy Scott (since 30 September 2011). Elections: President elected by popular vote for a ﬁve-year term (eligible for a second term); Election last held on 20 September 2011 (next to be held in 2016); Vice president appointed by the president Judicial branch: Highest court(s): Supreme Court (consists of 9 judges) Judge selection and term of office: Supreme Court judges appointed by the president and ratiﬁed by the National Assembly; judge tenure NA Subordinate courts: High Court; magistrate’s courts and local courts

Economy at a Glance GDP (purchasing power parity): $23.69 billion GDP per capita: us$1,700

English (1.7%)

GDP real growth rate: 7.2%

Other (22.5%)

GDP contributions by sector: Agriculture: 20.5%, Industry: 33.3%, Services: 46.3%

Currency: Zambian Kwacha (ZmK) Area: Total: 752,618 sq km Land: 743,398 sq km Water: 9,220 sq km Terrain: Mostly high plateau with some hills and mountains Transportation: 88 airports, railway network: 2,157 km, road network: 91,440 km, Waterway network: 2,250 km

Politics

Government type: republic Independence: 24 October 1964 (from the UK)

Industries: Copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertiliser, horticulture Total exports: US$9.414 billion Export commodities: Copper/cobalt, cobalt, electricity; tobacco, ﬂowers, cotton Exports - major partners: China (43.4%), South Africa (7.2%), Democratic Republic of the Congo (6.7%), South Korea (5.4%), India (4.7%), UAE (4.3%), Egypt (4.1%) Total imports: US$7.961 billion Import commodities: Machinery, transportation equipment, petroleum products, electricity, fertiliser, foodstuffs, and clothing Imports - major partners: South Africa (36.7%), Democratic Republic of the Congo (19.8%), China (10.4%), Kuwait (6%) Source: www.cia.gov

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ZAMBIA INTRODUCTION • Michael Chilufya Sata, Zambia’s Vibrant President • Impressive GDP Growth for the Past Decade • Investors Tapping into Zambia’s Outstanding Growth Potential • Zambia’s Ambassador to Benelux and the EU Cites Significant Progress Being Made

• eu ambassador representing the eu in Zambia and Comesa • German Ambassador Outlines Projects and Priorities

4 6 8 10 12 13

GOVERNMENT • Stable, Peaceful Democratic Republic

BUSINESS & INVESTMENT OPPORTUNITIES • Stepping up Economy • Why Invest in Zambia? • Good Time Steel company Zambia Ltd • Zambia International Investment Forum 2013: Spotlight on Tourism • Partners Group • Ndola: Gateway to DR Congo and Beyond • outstanding opportunities in manufacturing and trade • new horizon printing press • india helping Zambia maximise its resources • Chinese Ambassador Explains Significance of Zambia-China Partnership • Commited to rule of Law • Cutting edge pr

18 19 29 30 32 33 34 37 38 39 40 41

FINANCE • increasing Access and Investment • The People’s Bank • Bank of Zambia Governor Outlines Financial-Sector Strategies • Citibank Zambia Limited • New Currency Simplifies Financial Transactions • SI 55 Upgrading Investment Environment • Ambitious Financial-Sector Reforms Bearing Fruit • KPMG Zambia • Best Sovereign Bond in Europe, the Middle East and Africa

43 45 46 47 48 49 50 54 55

HOME AFFAIRS • Need for Security • G4S Secure Solutions Zambia Limited

57 58

AGRICULTURE & LIVESTOCK • Endless Opportunities • Food-Processing a Priority Sector for Investment • Seafood Basket • Zamcapitol Enterprises Limited • Livestock Production Expanding Rapidly • Zambeef Products PLC

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ZAMBIA

ENERGY & MINING • Energy Diversification Powering the Economy • Vast Unexploited Energy Potential • Solar Power’s Potential to Enhance Lives • North-Western Province, the New Copperbelt • Copperbelt Energy Corporation • Vast Reserves of copper, Iron, Emeralds and More • Powering the Future: Investing in Energy Infrastructure

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ICT • regional hub for iCt • realtime Zambia • Coppernet solutions • Positioning ICT as High-Potential Investment Target • Homegrown Software Systems and Technological Expertise

78 79 79 80 81

TRANSPORT & INFRASTRUCTURE • Linking Zambia to the World • Link Zambia 8000: Developing a World-Class Road Network • Designing the Zambia of Tomorrow • Lonerock Construction • Filling the Transport-Infrastructure Gap • Flying the Flag High for Zambia

83 84 85 86 88 89

CONSTRUCTION • Construction Industry in a Boom Phase • Nelpat’s Zambia Limited • safintra Zambia Ltd • Fair-Face Enterprise Ltd

91 93 94 96

HEALTH • Ambitious Strategy Outlines Significant Healthcare Progress by 2015 98 • melcome pharmaceuticals 100 • Umoyo Natural Health 101 EDUCATION • Impressive Progress in Upgrading Education • Providing Essential ICT Connections for Research and Education

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WOMEN OF ZAMBIA • Promoting Gender Equality

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TOURISM • making the most of exceptional tourism appeal • mukuba hotel • mahak restaurant and Lodge • A Wealth of Tourism Attractions • Chaminuka Lodge • UNWTO Meeting at Victoria Falls Raised Zambia’s Tourism Profile • Michelangelo Lodge and Restaurant • Rhapsody’s • Moba Hotel and Convention Centre • Livingstone: Unforgettable Travel Experiences

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Regional Manager: Carleen Krug – Project Manager: maarten pennings, aaron teitelbaum – International Business Analyst: Ashleigh Bello – Project Coordinators: Habiba Wurie, Mohamed Wurie – Logistics Manager: Godfrey Mukuka – Editorial: Emily Emerson-Le Moing, Andrew Burger – Design: Martine Vandervoort, Johny Verstegen, Walter Vranken, Dirk Van Bun the european times PO Box 685 66 – London EC1P 1XP – United Kingdom – Phone: +44 (0)208 371 2356 – Fax: +44 (0)208 371 2410 info@european-times.com – www.european-times.com The European Times is a trading name of Crystal Mediacorp Ltd This guide is protected by copyright. All rights reserved. This publication, or any part thereof, may not be reproduced, stored electronically or transmitted in any form, without the prior written permission of European Times. Every effort has been made to ensure information contained in this publication is correct and up-to-date. The authors and publisher accept no responsibility for any errors it may contain, or for any loss, ﬁnancial or otherwise, sustained by any person using this publication.

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MASTER REGIO ZAMBIA

Michael Chilufya Sata, Zambia’s Vibrant President His Excellency Michael Chilufya Sata,

President

Zambia

since 2011 is Zambiaʼs ﬁfth Republican President. He was born in

1937.

Muchinga He

Province devout

Catholic and was educated at

a missionary school in Zambia. The president spent several years working as a trade-union

organiser before launching his political career in 1963 as a

Municipal councilor in the town of Kitwe on the Copperbelt Province of Zambia.

Having served in various capacities under the ﬁrst and second Republic, inter alia; as ward Councilor, Governor of Lusaka; Minister of Local Government and Housing; Minister of Labour; Minister of Health and Minister without Portfolio. These credentials put president sata as the most experienced with vast understanding of Zambia’s development needs. It is against this backdrop that the president is administering his vision, advancing concrete policies and programmes to accelerate broad-based economic growth, diversify the economy and create employment in an environment of peace and unity.

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sector introduction

Skills Development and Youth Employment Employment creation especially for the youth is one of President Sata’s key interventions in the ﬁght against poverty. In this regard, the President has introduced a National Youth Employment Strategy aimed at mitigating youth unemployment being implemented by the Ministry responsible for Youth and Sport. In his quest to enhance skills development for the youth, President sata is focussing on putting up modern infrastructure and education facilities as well as increase enrolment. Additionally all youth-resource centres will be accredited to the Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA) in order to enhance the quality of education and improve skill-quality required for the labour market.

Foreign Direct Investment The President also focuses on key sectors to attract more Foreign Direct Investment (FDI) into Zambia. Among such sectors are agriculture, construction, education, energy, healthcare, Information Communication Technology (ICT), manufacturing, mining, real estate, transport and services (including ﬁnancial © THOMAS NSAMA

services and tourism). Vast opportunities for investment exist in these economic sectors with specific sector incentives. President Sata is committed to ensure that the government continues to foster a competitive business environment in order to maximise benefits from FDI thereby accelerating sustainable economic growth, as well as advancing his vision to create jobs and wealth for the Zambian people. While he strongly supports and calls for foreign investment into Zambia, the president is very firm on protecting the Zambian work force against any tendencies of abuse and therefore urges responsible investors to respect and improve the welfare of their Zambian employees.

Public-Private Partnerships a priority President Sata is in a hurry to ensure that the implementation of Public-Private-Partnership (PPP) projects, especially in the road sector, airports and garbage collection, among others is accelerated. This will offer further opportunities for Foreign Investors to Partner with both private and public sectors in Zambia. In this regard, the Zambia Development Agency (ZDA) is heading the drive to attract foreign investors, particularly by promoting investment in Multi-Facility Economic Zones (MFEZ) and Industrial Parks to support light industry and exports. In line with implementing Zambia’s Decentralisation Policy, president sata encourages ZDa to open up economic Zones not only in the capital but also in other strategic locations around the country such as Choma, Chembe, Nakonde, Kasumbalesa, Kazungula, as well as around Zambia’s airports. The development of the Northern Tourism Circuit, the greater Livingstone area, and Lusaka National Park are also priority areas of focus for the President.

President Michael interacts with tourists on arrival at the Royal Livingstone Hotel for the opening of the UNWTO 20th General Assembly

The President’s vision is to ensure these economic interventions compliment government’s efforts to attain countrywide development so that every Zambian beneﬁts from the national cake.

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MASTER REGIO ZAMBIA

Impressive GDP Growth for the past Decade Lusaka

while the country’s GDP growth will continue. Moreover, as a number of major mining projects come on stream in Zambia, the country’s growth rate should shoot up to an average 8.1% from 2014 to 2016, according to a recent study by advisory firm KPMG. this strong performance reflects the potential of the Zambian economy in many sectors. Mining is just the beginning.

Non-mining sectors also expanding

Unlike many countries around the world that struggle with recession, Zambia is experiencing a deﬁnitive growth trend. A combination of prudent macroeconomic management, market liberalisation and privatisation, investments in the copper

industry and related infrastructure, and high global copper prices have helped Zambia maintain an impressive average economic growth of around 5.7% over the past decade. In fact,

the countryʼs GDP growth between 2005 and 2012 averaged more than 6% per year and in 2012 it accelerated to 7.3%.

The Zambian government has consolidated the country’s macroeconomic stability under International Monetary Fund (IMF) programmes; the latest ended in 2011. Zambia successfully weathered the global economic crisis while reducing inﬂation from around

30% in 2000 to around 6.5% in 2012 and around 7% in 2013. Thanks to debt relief, Zambia has also boosted its foreign-exchange reserves. The African Development Bank (ADB) predicts that inﬂation in Zambia will remain under control over the next two years at least

In 2012, Zambia’s economic growth was driven mainly by expansion in the agriculture, construction, manufacturing, transport and financial-services sectors. This year, Zambia’s copper mining is expected to rebound after a brief slump and should reach an output of around 1.5 million tonnes by 2015, according to the ADB. This dynamic performance is the result of increased investment in new mines, increased capacity at existing mines, and high global copper prices. Growth in Zambia’s non-mining sectors is expected to remain robust thanks to ongoing investment in infrastructure development and improvements in the country’s business environment. In the agriculture sector, the government’s subsidy programme for smallholder farmers

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sector introduction

will continue, while expansion in the construction and transport sectors will benefit from the national Link 8000 road project. Zambia’s energy infrastructure is also set for major growth thanks to new domestic and foreign investment, and the services sector is expected to perform well. As Zambia’s investment climate and regulatory environment are improved, Zambia’s growth trend is expected to continue to gather pace in the medium term. While Zambia has made impressive progress in recent years, many challenges remain. The country moved up two places on the Mo Ibrahim Index of African Governance in 2012 but dropped in the latest World Bank Doing Business report, where it now ranks 94th out of 185 countries. In addition, Zambia faces a high birth rate, a relatively high incidence of HIV/ aiDs, widespread poverty, and lack of rural development. Around 60% of the country’s population lives below the poverty line, and around 90% of those people are in rural areas.

people while also expanding its economy. The country has vast natural resources, including fertile farmland and ample supplies of water, which have still not been fully harnessed. As both the government and private-sector leaders are aware, Zambia needs to develop a strong manufacturing sector that can add value to these resources, provide more jobs for Zambians, and generate revenues, which can be used to ensure the country’s long-term prosperity and poverty reduction. Zambia enjoys a strategic location in southern Africa in an area once known as Northern Rhodesia, a territory administered by the South Africa Company from 1891 to 1923, when Britain assumed control. During the 1920s and 1930s, advances in mining processes spurred on development in and immigration to northern rhodesia, and this trend continued for decades. In 1964, Northern Rhodesia achieved independence from the UK and changed its name to Zambia.

Democratic government

the right fundamentals

Building on its democratic principles and its open economy, Zambia has made great strides forward and is looking forward to a bright future as it pursues its ambitious development goals.

in spite of the hurdles, Zambia has the fundamentals in place to create more jobs and a better quality of life for its

The first years after independence were difficult for Zambia, which suffered from declining global copper prices, an inefficient single-party government, economic mismanagement and a prolonged drought. In 1991, democratic elections ended one-party rule officially although opposition candidates still had an uphill battle to face. In 2006, Zambia held the first presidential elections, which were judged transparent and fair by impartial observers, and Levy Mwanawasa was elected president. Upon his sudden death in 2008, he was succeeded by his vice president, Rupiah Banda, who won a special presidential by-election later that year. Michael Sata was elected president in september 2011 and remains the country’s president today.

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ZAMBIA

Investors Tapping into Zambia’s Outstanding Growth Potential Lusaka © Djembe | Dreamstime.com

In early October 2013, the Bank of New York Mellon Corp. sold American depositary

receipts (ADRs) for three Zambian companies, just one sign of growing international interest in Zambia as an investment target.

The ADR programmes for Copperbelt

Energy Corp., Zambeef Products and Zambia National Commercial Bank are the ﬁrst in southern Africa outside South Africa.

“Investors recognize the fact that Africa is really the last substantial continent to offer genuine frontier markets with very real growth prospects,” says Mary Gormley, BNY Mellon’s London-based Managing Director of Depositary Receipts for Sub-Saharan Africa. In fact, according to a recent International Monetary Fund (IMF) study, southern Africa is the world’s second-fastest-growing region after developing Asia. Zambia in particular has been achieving strong GDP growth for the past decade and is expected to perform even better in the future. Investors have taken note. Foreign direct investment in Zambia rose from approximately €121.5 million in 2003

to €810.7 million in 2011 and €1.1 billion last year, with most of the FDi going to the mining, manufacturing and construction sectors. This year, Zambia hopes to draw a record €7.3 billion in FDI, in part thanks to such new investment targets as Multi Facility Economic Zones (MFEZs).

Strong FDI increase in ﬁrst six months of 2013 Emmanual Chenda, Zambia’s Minister of Commerce, Trade and Industry, reports that Zambia recorded more than €2.6 billion in investments and created more than 35,000 employment opportunities across all sectors in

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sector introduction

the first six months of 2013, an increase of 89% over the same period in 2012. He adds, “We shall continue to pursue and implement policies that are focussed on reducing poverty among our people, which include among them development of MFEZs throughout the country, and on improving Zambia’s attractiveness to foreign investors.” to maintain its growth trend, Zambia has launched the ambitious Vision 2030 programme and the Sixth National Development Plan. The latter focuses on broad-based wealth and job creation through citizenry participation and technological advancement. Specific development goals include fostering a competitive and outward-oriented economy, significantly reducing hunger and poverty, and reaching middle-income status. In July 2011, Zambia achieved one of its key targets when it was classified a lower-middle-income country by the World Bank.

National Decentralisation Policy in april 2013, Zambia took another important step forward when it ofﬁcially launched the National Decentralisation Policy, which will empower provinces and districts and promote citizens’ participation in democratic governance at the local level. It is also designed to bring Zambia’s diverse cultures together in a common effort to promote economic growth and better quality of life for all the country’s people. In announcing the policy, Emerine Kabanshi, Minister of Local Government and Housing, commented, “Zambia’s federal government places great importance on local government, as it is the engine for delivering public infrastructure and services, local economic development and participation.” Decentralisation is expected to enhance Zambia’s investment attractiveness by helping to bring the rewards of the country’s economic success to more people all over the country, thus helping to defuse any local opposition to major foreign-investment projects. One of the criticisms of Zambia by locals and international observers alike has

been that the country’s poor are not beneﬁting from the country’s strong GDP growth. The current government has vowed to change that. Foreign investors are crucial to Zambia as it pursues its development programmes, and international funding organisations have been doing their part to improve the country’s investment attractiveness. The World Bank, for example, has funnelled €3.3 billion into around 250 projects in Zambia since 1955 and the Bank’s International Development Association currently has eight active projects in Zambia with a total investment of €424.5 million. The World Bank also provided around €1.9 billion in debt relief to Zambia, further stimulating the economy and adding to its investment appeal.

Enhancing competitiveness and economic diversity The World Economic Forum (WEF) and the IMF are also strong supporters of Zambia. In September this year, the WEF named Zambia the seventh-most-competitive economy in Africa. And, following a recent visit to Zambia, an IMF team reported that the Zambian economy is performing very well and has beneﬁtted from high levels of FDI and rapid growth in non-traditional exports. Zambia’s Secretary to the Treasury Fredson Yamba recently announced that the government will launch an extensive capital-expenditure programme aimed at increasing investment in education, health, transport, energy, water and sanitation as well as social services. These projects are not only geared to spurring on economic growth, poverty reduction and social justice but also to improving the quality of Zambia’s human resources and upgrading support systems for the private sector. Fredson Yamba also says, “We will see a divergence from overreliance on the mining sector to faster growth in Zambia’s other sectors, such as manufacturing, tourism, agriculture and agro-processing. We aim to ensure that Zambia’s growth is broad-based and inclusive.”

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MASTER ZAMBIA REGIO

Zambia’s Ambassador to Benelux and the EU Cites Signiﬁcant Progress Being Made

Her Excellency, Grace M. Mutale Kabwe, Ambassador of the Republic of Zambia to Belgium, the Netherlands, the Grand Duchy of Luxembourg and the European Union speaks about her views on the primary engines of growth in the Zambian economy.

110

European Times: Could you give a short introduction of the development of Zambia? Grace M. Mutale Kabwe: Zambia’s Development Plan is guided by the revised Sixth National Development Plan (Period 2013 to 2016) which focuses on inclusive growth, rural development and job creation. This is due to the realisation that economic growth alone does not inherently contribute to improvements in human development and poverty reduction. The government is therefore giving prominence to investing in capital projects and programmes in agriculture, accelerate

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sector introduction

infrastructure development, and promote development in the energy, manufacturing, tourism, science and technology sectors. The government would also invest signiﬁcantly in human resource development focussing on education and skills development, provision of quality health services and improve water and sanitation systems. The government is also focussing on diversifying the economy from dependence on copper as guided by the national vision 2030. Our goal is to achieve higher and sustained economic growth in order to alleviate poverty through rural development and job creation. The government attaches great importance to employment creation as the top most strategy for ensuring the stability of society and overall growth of the economy in all sectors. European Times: At this point, where is Zambia trying to attract the most foreign direct investments? Grace M. Mutale Kabwe: We are trying to attract the most Foreign Direct Investment (FDI) in the road network. there are also great opportunities in the construction of houses and commercial buildings. It should also be noted that His Excellency Michael Chilufya Sata, President of the Republic of Zambia already unveiled a plan to restore and build a road network of 8,000 kilometres; it is called the Link Zambia 8000 Project. As it stands, Zambia is a landlocked country, bordered by eight neighbouring countries. The government has decided to use the country’s position to develop a road network that connects Zambia to each of its bordering countries to create a “landlinked” country. This will give Zambia the opportunity to open itself to eight other markets in the region. European Times: With such initiatives to develop the country, there will be a large demand for supportive resources; what can be said about the energy sector? Grace M. Mutale Kabwe: Zambia’s energy resources include electricity, petroleum, coal, biomass, and renewable energy. The country is basically self-sufﬁcient in its energy resources, as it has substantial unexploited reserves of these forms of energy. Only petroleum is imported in the country. Demand for the most important energy source in the country - electricity - has been growing at an average of about 3% per annum mainly due to the increased economic activity

in the country especially in the agriculture, manufacturing and mining sectors, as well as increased activity in the region. Investment opportunities in the energy sector include electricity generation, petroleum, coal, solar, and renewable energies. European Times: How would you describe the quality of human resources in Zambia, and what is the level of educational development in the country? Grace M. Mutale Kabwe: The Zambian government has recognised that education and vocational skills development are critical to Zambia’s national development. It is however a fact that a good number of our young people have not had access to quality education due to limited school spaces particularly, at secondary and tertiary education levels. In our effort to address this challenge, the government is reviewing the education policy and undertaking stakeholder consultations. The policy will realign the educational system to ensure that the academic and vocational training are harmonised from early childhood to tertiary education levels. The aim is to make the curricula at all levels relevant to national development. Furthermore, the government is in the process of establishing a regulatory body that will monitor education standards in the country. European Times: Why do you feel European markets should come to explore the opportunities in Zambia? Grace M. Mutale Kabwe: Zambia is a peaceful and politically stable country and it has never experienced misgovernance. It guarantees security to investors with legislated rights to full and market value compensation. The country is strategically positioned as a landlinked transit hub to its eight neighbouring countries. Zambia has 752,000 square kilometres of landmass, 58% which is arable. Only 14% of arable land is under cultivation. Zambia has, over the past 10 years, recorded a positive real GDP growth, which has averaged 6% per annum as well as a broad-based economic growth as a result of our diversiﬁcation efforts. This is not the case in most European countries. Our government is able to offer both ﬁscal and general investment incentives to those who invest in Zambia.

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ZAMBIA

eu ambassador representing the eu in Zambia and Comesa Gilles Hervio, EU Ambassador to Zambia and to COMESA

maintaining ongoing dialogues with the governments in the area and projects where our assistance is seen as useful, but also maintaining control of how our support is implemented. The other part of my job involves political actions. Since the Lisbon Treaty, when we have a position to share, the EU delegation is the voice of the EU as a whole. This includes monitoring the overall situation, engaging in dialogues with various actors, and coordinating with the EU ambassadors and high commissioners in Zambia. We are also looking at trade, which could improve the situation between Zambia and surrounding countries. Zambia’s primary export is copper, but it has the capacity to become an energy exporter and to export more in the way of agricultural products. Though we are not directly involved with private investment, we do give advice to businesses and investors. International diplomacy, conﬂict resolution,

European Times: How would you describe the socioeconomic conditions in Zambia at present?

socioeconomic

Gilles Hervio: Zambia is a very large country, and there is an abundance of natural resources, such as land, water, copper, etc. There is a high potential in the country when it comes to business opportunities that can attract investors from all over the world.

helping

foster

environmentally development,

sustainable

trade

and

commerce, Gilles Hervio, EU Ambassador to

Zambia and to COMESA (Common Market for

Eastern and Southern Africa) has a lot on his mind, and on his agenda, as he explains in this interview.

European Times: Yours is a dual role for the EU in Zambia. Can you give us an idea of your responsibilities and activities? Gilles Hervio: I’ve got various day-to-day activities. I support the implementation of the Cotonou agreement and the EU foreign policy here in Zambia, which involves regional and international cooperation regarding trade and commerce, as well as having a political dimension. Regarding this political dimension, we provide support to the government which encompasses ﬁnancial, economic, and social aspects of development. This includes not only

As you know, what is important for investors is security, and that is what the country has succeeded to provide without any doubt. As for the familial side, it is a very nice country to be in. European Times: What is it that makes Zambia attractive to European companies? Gilles Hervio: Any company looking for growth should really come and invest in Zambia. There are a lot of opportunities here. For instance, there is a lot of potential in agri-business, as well as the export of energy to neighbouring countries, two areas in which we will be heavily involved in the near future. Of course, for someone who doesn’t know Zambia, they should come and meet the business community on the ground. And for foreign companies, it’s always good to have technical aid from other companies that have already established themselves here.

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introduction © Alexander Lapshin

German Ambassador Outlines Projects and Priorities Bernd Finke, Germanyʼs Ambassador to Zambia, discusses ties between the two countries.

European Times: What are your priorities in your role as ambassador? Bernd Finke: We provide information to Germany on political, social and economic conditions here in Zambia, we foster bilateral relations, and we help German companies looking to do business with or invest in Zambia as well as companies and investors already active here. We also assist the Zambian government with ﬁnancial policies and efforts to strengthen the rule of law, human rights and democracy. In addition, Germany supports major programmes to improve access to water and sanitation and to help set up proper infrastructure. We are also involved in programmes to foster good governance, decentralise government and bring Zambia’s government closer to people on the ground. European Times: Why should German and other European investors target Zambia? Bernd Finke: there is a lot of potential here and Zambia offers a number of attractions for investors, including political stability with peaceful transition of power, which is quite unique for Africa. Ethnic communities live together in harmony here, and Zambians are very welcoming to people from other countries. Overall, Zambia is in a very positive situation compared to other countries in the region. European Times: What sectors offer the most investment potential?

Bernd Finke: Many companies have invested in the copper industry but investment possibilities in the mining sector are now limited. Over the past few months, we have seen increased interest among German investors in the Zambian agriculture sector, and a German agricultural enterprise has already achieved success here. The tourism industry also has excellent prospects. Zambia needs foreign investment in many areas, including vocational training and capacity-building. European Times: What are the main challenges Zambia faces? Bernd Finke: the main challenges are the ones that are still common in many parts of Africa: inadequate infrastructure, a lower degree of productivity, as well as the issue of corruption and legal security. Germany and Zambia have a very open and trustful dialogue on these issues. At the very centre of Zambia’s challenges is the continuously high poverty rate, which persists despite Zambia’s impressive growth rates and a long-term engagement of the international (donor) community in the country. European Times: What is your personal message to potential investors and visitors? Bernd Finke: Zambia has made impressive progress in recent years, including making the jump from a least-developed country to a low-middle-income country. There is a lot of potential here, and Zambia deserves to be recognised for everything it has accomplished so far.

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ZAMBIA

Government

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Government

stable, peaceful Democratic republic The legislative branch (parliament) is the National Assembly, which is made up of 150 directly elected members and eight members appointed by the President.

Provincial government Zambia has ten provinces, which includes Eastern, Central, Northern, North-Western, Luapula, Copperbelt, Western, Southern, Lusaka and Muchinga provinces, and each is administered by an appointed Deputy Minister. Within these provinces are 102 local authorities, of which 30 were recently created.

Type of government Zambia is a democratic republic which gained its independence from the United Kingdom in 1964 and ratified its first constitution that same year. In 1973, the country ratified a new constitution which defined Zambia’s government as a “one-party participatory democracy” headed by a strong president from the UNIP party and a unicameral National Assembly. Zambia revised the constitution to enlarge the National Assembly from 136 members to a maximum of 158 members, introduce a limit of two terms on the presidency, establish an electoral commission, allow for more than one presidential candidate, and allow for non-UNIP members to run for political office. The constitution was amended again in 1996 to require presidential candidates to have been habitually domiciled in Zambia for 20 years prior to an election and to require that both parents of a candidate be Zambian-born. In 2007, the National Assembly passed a law to create a national Constitutional Conference (nCC) to draft an updated constitution. The NCC had 500 members drawn from government and the private sector. The NCC presented a final draft for a new constitution to the National Assembly in March 2011, but the bill did not receive the necessary two-thirds majority. Federal government Zambia’s government is headed by the democratically elected President, and Chief of State. The President appoints a Vice President from among members of the National Assembly, Zambia’s parliament. The President also appoints a Cabinet (ministers) from among members of the National Assembly.

Judicial branch The judicial branch is led by the Supreme Court, which is the country’s highest court and court of appeal. It includes nine judges who are appointed by the president and ratiﬁed by the National Assembly. The judicial system also includes lands tribunals, industrial-relations court, subordinate courts, small-claims court and local courts.

Key leaders Zambia’s current President and Head of State is His Excellency Michael Chilufya Sata, who represents the Patriotic Front (PF) political party. He became President in 2011 in a landmark election which was the first in the Southern Africa region to bring a member of an opposition party to power peacefully, democratically and credibly. His election was also the second time since 1964 that an opposition-party candidate had been elected President of Zambia. Zambia is currently the Beacon of Peace on the African continent – in that since 1964 it has held five successive elections in a peaceful, transparent and democratic atmosphere. So far, the country has peacefully and democratically changed three presidents from three different political parties. President Sata’s election platform was to fight corruption and uphold rule of law. Since his election, he has publicly prioritised job creation, poverty reduction, diversification of agriculture, improved government efficiency, expanded health services, and enhanced quality of education. President Sata also supports constitutional reform. Top reforms under consideration include requiring a majority vote for presidential elections, allowing the president to choose his cabinet members from the general

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ZAMBIA sector

public (currently they must be members of parliament), and abolishing the death penalty. Other reforms under consideration would limit the power of the presidency and devolve more power to local governments. Born in Mpika, Muchinga Province, in 1937, President Sata ascended through the ladder during Zambia’s postcolonial period. He held various portfolios in the ﬁrst Republic and was appointed Governor of Lusaka in 1985. As governor, he made his mark with programmes to clean up the city and improve its infrastructure. Opposing single-party rule, he joined the Movement for Multiparty Democracy (MMD) in 1991 and in later years held posts as minister of local government, labour and health. He left the MMD to form and head the Political Front party in 2001, which he represented in the presidential elections of 2011. President Sata is seconded by Vice President Guy Scott, who has held a number of government positions since the early 1990s. He served as Minister of Agriculture, Food and Fisheries and was responsible for managing Zambia’s response to the “drought of the century” in 1992. In 2001, he joined the Patriotic Front political party and was elected member of parliament for Lusaka Central in the 2006 general elections. He was appointed Vice President in 2011.

Minister of Information and Broadcasting Services: Hon. Mwansa Kapeya Minister of Commerce, Trade and Industry: Hon. Emmanuel Chenda Minister of Local Government and Housing: Hon. Emerine Kabanshi Minister of Mines, Energy and Water Development: Hon. Christopher Yaluma Minister of Tourism and Arts: Hon. Sylvia Masebo Minister of Labour and Social Security: Hon. Fackson Shamenda Minister of Education, Science, Vocational Training and Early Education: Hon. John Phiri Minister of Lands, Natural Resources and Environmental Protection: Hon. Harry Kalaba. Minister of Community Development and Mother and Child Health: Hon. Joseph Katema Minister of Transport, Works, Supply and Communications: Hon. Yamfwa Mukanga Minister of Gender and Child Development: Hon. Inonge Wina

elections

Minister of Youth and Sport: Hon. Chishimba Kambwili

The President is elected by popular vote for a ﬁve-year term and is eligible for a second term. The last presidential election was held in september 2011 and the next will be in 2016. The Vice President is appointed by the president and endorsed by the National Assembly. Concerning the National Assembly, 150 members are elected by popular vote and eight members are appointed by the president. All serve ﬁve-year term.

Minister of Chiefs and Traditional Affairs: Hon. Nkandu Luo

Government

Eastern Province: Hon. Malozo Sichone

Minister of Finance: Hon. Alexander B. Chikwanda Minister of Justice: Hon. Wynter Kabimba Minister of Defense: Hon. Edgar Lungu Minister of Home Affairs: Hon. Ngosa Simbyakula Minister of Health: Hon. Dr. Joseph Kasonde Minister of Foreign Affairs: Hon. Wylbur Simuusa Minister of Agriculture and Livestock: Hon. Robert Sichinga

Attorney General: Mumba Malila

Provincial Ministers: Central Province: Hon. Obvious Mwaliteta Copperbelt Province: Hon. Musenge Mwenya

Luapula Province: Hon. Brigadier General Benson Kapaya Lusaka Province: Hon. Philip Kosamu Muchinga Province: Hon. Colonel Gerry Chanda Northern Province: Hon. Colonel Freedom Sikazwe North-Western Province: Hon. Nathaniel Mubukwanu Southern Province: Hon. Daniel Munkombwe Western Province: Hon. Josephine Limata

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• Stepping up Economy • Why Invest in Zambia? • Zambia International Investment Forum 2013: Spotlight on Tourism • Outstanding Opportunities in Manufacturing and Trade

Business & Investment Opportunities

“We are building the infrastructure to ensure a business environment that will create wealth for the foreseeable future.” Emmanuel Chenda, Minister of Commerce, Trade, and Industry

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MASTER ZAMBIA REGIO

Stepping up Economy

Emmanuel Chenda, Minister of Commerce, Trade and Industry,

discusses the Zambian governmentʼs economic development strategies.

European Times: How would you describe your role as the Minister of Commerce, Trade, and Industry in attracting investment to Zambia? Emmanuel Chenda: The role of my Ministry is to make certain that the investment climate and business environment is conducive for Foreign Direct Investment (FDI). It is my role to ensure that our policies are investment friendly so that Zambia can attract investors. Our capacity to grow our economy will remain limited unless we attract Investment from both local and international sources. We will not attract the investment we need unless we provide an environment that is conducive to FDI that is sustainable and gives conﬁdence to the global investment community. European Times: Zambia has seen a tremendous GDP growth to 6.7% over the last 5 years and 7.3 % in 2012. How does Zambia maintain this tremendous growth? Emmanuel Chenda: Growth in our economy has been driven by expansion

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in the mining, agriculture, construction, manufacturing, transport and finance sectors. The mining sector has continued to be the dominant contributor to this growth largely due to investment in new mines and the expansion of capacity at existing plants. Growth in agriculture and manufacturing is also expected to be robust in the medium to long term, supported by the massive investments in infrastructure development. Although our country has seen strong growth, poverty is still a challenge. We need this growth to translate into jobs for our people. Zambia has been given abundant natural resources. We are therefore looking for partners who will invest in value addition to our natural resources. European Times: Which sectors are in the best position for value addition? Emmanuel Chenda: The government has identified agriculture, manufacturing, construction and tourism as sectors well positioned to facilitate Zambia’s future growth. The link between agriculture and manufacturing provides the greatest opportunity for value addition activity. Zambia has 58 million hectares of arable land; we are only using approximately 14%. This great potential for growth in the agriculture sector is creating an even greater opportunity for value addition through agro-processing. We are also looking to take advantage of the growth in the mining sector to create opportunities for value addition. The Iron and Steel industry and the Engineering subsector in general can grow significantly by value addition to the minerals in the country. This will allow for sustainable job growth in manufacturing. I also wish to highlight tourism as a sector worthy of investment. Zambia is home to one of the seven natural wonders of the

world, has vast national parks and some of the most beautiful natural scenes. We have the potential to rival any country in sub-Saharan Africa and these are opportunities we want investors to take full advantage of. European Times: How can our readers benefit from investment in trade and industry? Emmanuel Chenda: Zambia is one of the most politically stable countries in Africa. It is a multi-party democracy that provides a market-oriented economy in a strife-free, multicultural society. It offers investors unique opportunities for exploiting opportunities for trade and investment in Africa. It is strategically located to allow investor’s access to a population of 400 million potential buyers as it shares borders with eight countries in southern africa and has Free trade agreements with countries such as south africa, mozambique, Tanzania, Namibia and Botswana through the Southern African Development Community (SADC) which is a market worth over US$360bn in terms of GDP. It is also a member of the Common market for eastern and southern africa (Comesa) which comprises 19 member states covering southern, eastern and northern African countries. We also have preferential market access to the european union and the united states through the AGOA mechanism. More importantly, Zambia is well endowed with abundant natural resources, many of which remain unexploited. I urge you to learn more about Zambia, come and see our beautiful country and confirm for yourself, the great potential the country holds to make sustainable investments and earn significant returns on your investments.

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Why Invest in Zambia? Why

should

investors

target

Zambia?

The Zambia Development Agency (ZDA), the countryʼs one-stop-shop partner for investors, singles out 10 main reasons: ●

Political and macroeconomic stability

●

Positive and investor-friendly environment

●

Investment guarantees and security

●

Attractive investment incentives

●

Progressive, international-standard

banking, legal and insurance services ●

Abundant natural resources

Zambia Development Agency

●

Preferential access to fast-growing

The ZDA, established in 2006, is responsible for fostering economic growth and development in Zambia through promoting trade and investment and an efﬁcient, effective and coordinated private-sector-led economic-development strategy. The agency is also working to promote an internationally competitive Zambian economy through innovations that lead to skills, productive investment and increased trade. The agency is working hard to ensure the efﬁciency, export performance and competitiveness of Zambia’s business sector. It also works to improve Zambia’s business climate through simplifying the processing of various business formalities, such as licensing.

markets in Africa, the EU, the US, Canada and Asia ●

Thriving private sector and

a business-friendly government ●

No exchange controls and the possibility of a 100% repatriation of proﬁts

●

Desirable quality of life

The agency’s priorities include attracting increased capital inﬂows and encouraging employment creation. It also promotes Zambia’s SMEs by providing incentives that can propel them towards long-term sustainable growth. The ZDA is deﬁnitely open for business and ready to serve as investors’ one-stop-shop local partner.

promoting exports and market development The ZDA’s Export Promotions and Market Development (EPMD) division is responsible for promoting the international competitiveness of Zambian companies as well as

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Lusaka

which current president michael sata was elected, were the sixth peaceful presidential elections held in Zambia since its independence in 1964.

exports of non-traditional products (anything other than copper and cobalt). The EPMD’s main objective is to broaden the country’s export base and increase foreign-exchange earnings by providing investors with accurate market information, expanding Zambia’s share of the global market, positioning non-traditional exports in target markets, and lobbying the government to offer incentives. other priorities for the epmD include facilitating the development and expansion of Zambia’s production base, particularly concerning non-traditional exports; providing trade information to companies in order to support the competitiveness of Zambian exporters and other stakeholders; and developing programmes and activities designed to enhance the institutional capacity of exporters to help them meet the challenges of the global market. to accomplish its mission, the epmD organises and participates in trade fairs and exhibitions, both locally

and internationally; offers advisory services to exporters; maintains a web site and regularly produces publications of interest to investors and exporters in Zambia; identiﬁes products with export potential and helps producers adapt them for the export market; organises training programmes and seminars on issues affecting Zambia’s export sector; and makes recommendations to the government concerning Zambia’s export policies. The EPMD also identiﬁes market outlets for locally manufactured products.

Political stability As the ZDA points out, political stability is a make-or-break factor for foreign investors seeking opportunities in developing countries, and Zambia has an impressive record of maintaining one of the most stable political systems in Africa for the past 50 years. The presidential elections of 2011, during

Elected on an anti-corruption platform, the Sata administration has been implementing measures to promote transparency and efﬁciency in government, to attract additional private-sector investment, and to ensure that Zambia’s strong economic growth provides beneﬁts to the country’s people. Combating poverty, bringing high-quality healthcare and educational services to people all over the country, creating new jobs and improving infrastructure are key goals for Zambia’s government as it aims to make sure that Zambia’s strong economic performance means better quality of life for Zambians.

Exceptional macroeconomic performance On the macroeconomic level, Zambia once again stands out from most other countries. Zambia has achieved over 10 years of steady GDP growth and averaged over 6% GDP growth between 2005 and 2012; last year the country’s GDP grew by over 7%. Zambia’s privatisation of its state-owned copper mines in the 1990s relieved the government from covering losses generated by the industry and greatly increased coppermining output and proﬁtability to spur Sponsored by:

Private Bag E580 Box 231, Lusaka Tel: +260 977 826039 hitgalutconsultants@gmail.com www.hitgalutconsultants.com

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Business & Investment Opportunities

Positive and investor friendly environment Investors in Zambia can count on direct support from a designated Investment Promotion Ofﬁcer who will help them cope with all processes involved in launching a business in Zambia, from registration to licensing and other requirements. Zambia continues to improve its business climate through its Private Sector Development and Reform programme, which is working to cut red tape and create even more incentives.

on Zambia’s economic growth. Zambia’s copper output has increased steadily since 2004, due to higher global copper prices and growing foreign investment. In 2005, Zambia qualiﬁed for debt relief under the Highly Indebted Poor Country Initiative, providing a further boost to the economy. Zambia’s dependency on copper makes it vulnerable to depressed international commodity prices, but record high copper prices and a bumper maize crop in 2010 helped Zambia rebound quickly from the effects of the global economic slowdown that began in 2008. Now the government is working hard to

diversify the Zambian economy to reduce dependence on copper and at the same time it is continuing to promote the development of the copper industry while copper prices remain at record highs. The Zambian economy offers a huge choice of high-potential investment targets beyond the mining sector. These include opportunities in agriculture, tourism, transport infrastructure, financial services, energy, education, healthcare, manufacturing and logistics services. Investors in Zambia today can get in on the ground floor in every sector and count on outstanding growth prospects.

According to a recent World Bank report, “Business Environment Snapshots 2013”, Zambia is one of the world’s countries most open to foreign equity ownership, as measured by the World Bank’s “Investing Across Sectors” indicators. In fact, all of the 33 sectors covered by the indicators are fully open to foreign equity ownership in Zambia. The World Bank also notes that it takes nine procedures and an average 58 days to establish a foreign-owned limited-liability company in Zambia, which makes Zambia an easier place to start a business than in most other countries in southern Africa. Challenges the World Bank notes for investors in Zambia include the informal sector, limited access to ﬁnancing, and relatively high tax rates, although the Zambian government is working to alleviate all these problems. Zambia’s World Bank economic freedom score is 58.3, making its economy Sponsored by:

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the 96th most free in the world according to the Bank’s 2012 “Index of Economic Freedom”, and the 12th most free of the 46 countries in the Sub-Saharan Africa region. Zambia’s economic freedom score is just below the global average.

Investment guarantees and security Investors are granted investment guarantees and security through the Zambia Development Agency (ZDA) Act of 2006, which protects against nationalisation of enterprises and provides other guarantees. In addition, Zambia participates in the World Bank Group’s Multilateral Investment Guarantee Agency and is a member of the International Convention on the Settlement of Investment Disputes.

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Attractive incentives The Zambian government has created a number of investment incentives and continues to launch new ones, particularly for projects in targeted sectors and regions. General incentives include zero corporate taxes for five years following an investment’s first profits, and then tax on only 50% of profits during years six through eight and tax on only 75% of profits during years nine and 10. Investors can also count on a five-year tax exemption on dividend taxes following the year of the first tax declaration, a five-year exemption on customs duties on imported machinery and equipment, and an improvement allowance of 100% of capital expenditure on improvements or upgrading infrastructure.

Lusaka

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Business & Investment Opportunities

Lusaka

Modern ﬁnancial services Zambia has a progressive and open banking sector with many branches of international banking groups, including Barclays, Standard Chartered, CitiBank, and Bank of China. Zambia’s legal system is based on English Common Law and Customary Law, and there are many licensed international law ﬁrms active in Zambia today. The insurance sector is in its early stages but is growing rapidly in both life and non-life insurance segments. Companies can list on the Lusaka stock exchange, which was established in 1993.

abundant natural resources Zambia is known worldwide for its exceptional copper resources, but copper is just the beginning. Zambia’s Copperbelt region alone is estimated to contain at least two billion tonnes of mineral deposits. Its mineral resources include copper, cobalt, coal, oil and gas, iron, emeralds and much more.

Zambia also offers around 375,000 hectares of arable land, or 58% of the country’s total territory. The agriculture sector has enormous growth potential in all segments, from the production of vegetables and grains to oil seeds, fruits, fish, livestock and dairy products. In addition, Zambia’s great natural beauty, including the great Victoria Falls, gives the country exceptional tourism potential.

Preferential access to fast-growing markets Zambia is well placed to serve as a base for exportoriented companies thanks to its preferential access to key regional, African and global markets. It is a member of the Southern African Development Community (SADC) and the Common market for eastern and southern Africa (COMESA), and is strategically located at the crossroads of these two fast-growing trade areas. Zambia also participates in the US Africa Growth and Opportunity Act (AGOA), which allows for quota preferences and duty-free entry to the US market for Zambian goods.

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Through the Everything but Arms Initiative, Zambian products can also enter the EU free of duties and quotas. Zambia has also established bilateral trade agreements with Canada, China and Japan and has been a member of the World Trade Organisation (WTO) since 1995.

Thriving private sector Zambia has long maintained a liberal, open market aimed at facilitating the development of the private sector. Around 264 formerly state-owned companies (out of a total of 288) had been privatised by the government by the end of 2012.

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Sectors with signiﬁcant growth potential As the ZDA points out, Zambia’s agriculture sector has enormous potential. Agricultural output in Zambia increased from 18% of GDP in 2008 to about 20% in 2009 and continues to grow. This performance is a result of increased areas under cultivation, good rainfall patterns in the whole country, and favourable agriculture policies launched by the government. In the 2009/2010 agricultural season, a 118% increase was achieved in the production of sunflowers compared to the 2008/2009 season, along with a 50% increase in soy beans, a 39% increase in rice, a 31% increase in maize, a 7% increase in tobacco, and a 5% increase in wheat over the same period.

Zambia’s leaders are well aware that the country’s future growth will be fueled mainly by the private sector. In a recent speech, Vice-President, Dr. Guy Scott, praised Zambian entrepreneurship. He commented, “Many Zambians have launched their own businesses and are even providing jobs to others. These people are heroes. We want to be more supportive of such entrepreneurial activities and create an environment where they can ﬂourish.”

No foreign-exchange controls and 100% repatriation of profits Zambia abolished foreign-exchange controls in 1994. Foreign investors can also count on 100% repatriation of profits, floating currency rates and market-set interest rates. In addition, the country imposes no restrictions on the repatriation of interest, profit, dividends, management fees, technical fees, and/or royalties.

High quality of life Zambia is one of the safest nations in Africa and has established a strong rule of law. The country has great natural beauty and many tourism attractions as well as diverse cultural activities, world-class business services in Lusaka and other urban areas, a choice of educational and healthcare facilities in urban areas (including many international schools), an English-speaking population, and diverse shopping and entertainment options.

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Business & Investment Opportunities

the agricultural sector continues to be the backbone of the Zambian economy. Primary agriculture accounts for around 35% of the country’s total nontraditional exports and about 10% of its total export earnings. The ZDA is currently developing speciﬁc farm blocks throughout the country, particularly in the Nansanga, Kalumwange and Luena areas, and these projects are open to international investors. Each farm block is designed to have at least one core largescale farm of 10,000 hectares, several commercial farms of 1,000 to 5,000 hectares, and small farms of 30 to 3,000 hectares. Farm blocks provide both local and international investors ready access to surveyed land for agricultural production. The core investor will be expected to develop the infrastructure within the farm block and to manage the appropriate agro-business activities. The core investor’s venture will also support small, medium and large farms through an out-grower scheme and will establish processing plants for value addition of agricultural products targeted at both the local and international markets. According to the ZDA, priority crops for investment in the agriculture sector are wheat, sugar, cotton, tobacco, coffee, tea and maize, as well as other crops like cow peas, groundnuts, cassava, rice, sorghum, soybeans, sunflowers and dry beans. The ZDA also highlights opportunities in Zambia’s livestock-production, fisheries and dairy sub-sectors.

opportunities in tourism tourism is another growth sector according to the ZDA. The tourism

industry has been given non-traditionalexport status and is receiving a lot of support from the government by way of infrastructure development, promotion of increased private-sector participation, and attractive tax incentives for all investments. The country has a wealth of attractions just waiting to be developed. The country’s main tourism attractions are Victoria Falls and exceptionally rich wildlife. Zambia has 19 national parks and 34 game-management areas, which cover a total area of 65,000 sq km and provide an ideal habitat for all kinds of animals. Zambia also has many waterfalls, great rivers, one of the largest concentrations of bird species in the world, a rich cultural heritage and several historic monuments.

Infrastructure development Infrastructure is one of Zambia’s priority areas, and is emphasised in both the Sixth National Development Plan and in the National Vision 2030. The country already has airports, road networks, railway lines, energygeneration and energy-transmission installations, and telecommunication infrastructure, but it needs to expand and upgrade all these systems. The Link Zambia 8000 road-development project is just one major infrastructure initiative open to investors.

be self-sufﬁcient in all other energy resources thanks to its substantial unexploited reserves, including of hydropower. The demand for the most important energy source in the country – electricity – has been growing at an average rate of about 3% per year, mainly due to increased demand by the agriculture, manufacturing and mining sectors. Furthermore, the country’s growing economy has led to an increase in the need for petroleum and coal, and the use of renewable energies has also seen signiﬁcant growth in recent years as the market explores alternative sources of energy.

Vast potential for mining investment Zambia is already well known for mining but the country’s minerals sector still offers spectacular investment potential. Zambia is Africa’s largest producer of copper and cobalt, and the country’ copper production has been increasing steadily since 2000, growing by over 100% between 2000 and 2007 alone to reach around 700,000 metric tonnes in 2010. The rise in copper pro-

powering the future Energy development is a top priority for Zambia as well. Its energy resources include electricity, petroleum, coal, biomass and renewable energy. The country imports petroleum but could

Plot 4778 Buluwe Road, Woodlands PO Box 310393 Lusaka Tel: +260 211 26 7327/8 www.globallink.co.zm

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duction is the result of investment in the rehabilitation of Zambia’s mining infrastructure, the introduction of technological innovations in existing mines, the creation of new mines and increased production by small-scale copper mines. The ZDA Act provides incentives for companies investing substantial amounts in the mining sector. The Act specifies investment thresholds that investors have to meet in order to qualify for fiscal and non-fiscal incentives. The general investment incentives applicable to the mining sector are a guaranteed input tax claim for five years on pre-production expenditure for exploration companies in the mining sector; 30% tax (instead of 35%) on any mining company holding a large-scale mining license and involved in mining base metals; zero tax on dividends paid by a mining company holding a large-scale mining license and mining base metals; a 2% discount on the applicable corporate tax rate on income earned by companies in the first year of their listing on the Lusaka Stock Exchange and a 7% discount for companies in which more than one-third of shareholders are Zambians; duty-free imports of most capital equipment for mining; a 100% mining deduction on capital expenditure on buildings, railway lines, equipment, shaft sinking or similar works; and a reduced debt-to-equity ratio (from 2:1 to 3:1) to encourage further investment in the sector.

Manufacturing on the move the manufacturing sector in Zambia accounts for about 11% of the country’s GDP and has been growing at an

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average annual rate of 3% in recent years. Growth in the sector is largely driven by the agro-processing (of both food and beverages), textiles and leather subsectors. Secondary processing of metals is another main activity; it includes smelting and refining copper as well as manufacturing metal products. Fertilisers, chemicals, explosives, wood products, paper products and construction materials such as cement are also manufactured in Zambia. The Zambian government has put in place a number of measures to support manufacturing activities, including Multi-Facility Economic Zones (MFEZs) and industrial parks as well as many sector-specific investment incentives. The government also promotes manufacturing by SMEs. The manufacturing sector has attracted significant investment in recent years and many opportunities remain.

Public-Private Partnerships The Zambian government is actively promoting PPPs, particularly in infrastructure projects. In such partnerships, the private sector performs government functions of service delivery or infrastructure development, or uses state property, and assumes associated risks for the property, on behalf of the government, for a defined and agreed on period of time. The private sector in return receives financial remuneration in the form of concession fees, user fees, or any other form of payment that may be agreed upon with the government. In this process, the government retains a significant role in the partnership as the main purchaser of services or the main enabler of the project. Public-private partnerships currently open to investors, according to the ZDA, are a project to build a state-of-theart hospital in Lusaka; a project to build three diagnostic health facilities in Lusaka, Livingstone and the Copperbelt; the e-government programme to create new e-government services; a project to build a railway line connecting Chingola, Solwezi and Lumwana-Jimbe; a project to built the Kazungula-Livingstone and Nseluka-Mpulungu railway spurs; the Njanji commuter-rail project; the Kafue Lions’ Den project; the link to Solwezi via Kasempa-Kaoma-Mongu and Katima Mulilo; the TAZARA line to Chipata; the creation of train services between Chipata and Mchinji; the development of agricultural projects in Kalumwanga and Luena; and the creation of mini-hydro plants at Kabompo, Kalungwishi and Mombututu.

Multi-Facility Economic Zones (MFEZs) The Zambian government has also established modern Multi-Facility Economic Zones (MFEZs) to serve as the ideal base for investors. The MFEZ programme is the result of a partnership launched in 2005 between the governments of Zambia and Japan through the Japan International Corporation Agency (JICA). the implementation of mFeZs in Zambia is designed to make Zambia more competitive through promoting the growth of the country’s trade and manufacturing sectors, and to foster numerous positive spillover effects in other sectors such as utilities, transport, agriculture and services. MFEZs are special industrial zones for both export-oriented and domestic-oriented industries. The zones are equipped with modern infrastructure and offer the best features of free-trade zones, export-processing zones and industrial parks. They combine cutting-edge physical infrastructure with an efﬁcient and effective administrative infrastructure to create the ideal investment environment for major worldclass investors. Incentives for investment in Zambia’s MFEZs are covered by the ZDA Act. All incentives are non-discriminatory and apply equally to Zambian and foreign investors. There are now six designated MFEZs and industrial parks; these are located in Chambishi, Lusaka east, Lusaka south, Lumwana, ndola (the Sub Saharan Gemstones Exchange) and Roma.

Speciﬁc investment projects with exceptional prospects A few specific investment projects today are outlined in the following paragraphs. These are just a taste of the many high-potential investment opportunities on offer in Zambia today. according to Frontier market network, a Zambian mining company seeks investors and joint-venture partners for small-scale copper and manganese mining operations with a potentially high yield. The company, which already has mining licenses, aims to extract copper in Zambia’s Northwestern province and manganese in Central Province. The mines’ initial operations will

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ZAMBIA

be small-scale and can be expanded to meet full-scale operations. An investment of around €4.3 million is being sought. Investors will have 51% ownership of the mines, while the current owners will retain a 49% stake. Joint-venture partners will gain an equity stake of 40% to 60% in selected mines. Investment is needed in venture capital for equipment, human resources and operations. The enterprise is particularly interested in investors from Asia. Investors holding equity can expect dividends with a return on investment that is commensurate to their shareholding. All investors must be willing to support corporate social responsibility initiatives.

Projects in tourism Another potential investment is in Zambia’s high-potential tourism sector. Frontier Market Network points out that Boundless Southern Africa is seeking investors for two major projects in Zambia’s Kavango Zambezi Trans Frontier Conservation Area (TFCA), which is located in the Okavango and Zambezi river basins where Zambia, Angola, Botswana, Namibia, and Zimbabwe come together. One of the projects is to build 16 two-bed lodges on six wildlife concession sites in sioma ngwezi national Park, in the southwestern corner of Zambia; the park is already a popular tourism attraction. Three of the block concessions are 50,000 hectares and the other three are about 40,000 hectares. each of the concessions has its own unique landscapes and habitats, and all are situated around the core wilderness area of the national park. Four of the concessions are around protected natural areas and two are in the Baiklaea area. Infrastructure (roads and gates) is being developed to provide access to the area without causing any negative environmental impact. A wildlife recovery zone has also been proposed. The development zone has strong potential for hiking and for game- and bird-viewing. Sioma Ngwezi National Park is surrounded by a 35,000 sq km unfenced game-management area, ensuring free movement of animals; they regularly come to drink in the Zambezi River. The park and surrounding area are also located along the migratory route of elephants from bordering national parks in namibia and Botswana.

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The second initiative being planned by Boundless Southern africa in Zambia is a new tourist lodge at sioma Falls, the second-highest waterfall on the Zambezi river, with water cascading over a 20-meter drop. The project involves the development of a luxury lodge with 30 two-bed rooms on the western bank of the falls, with easy access to the M10 motorway. In addition, two lower-intensity sites have been identified for further development, one on the eastern banks at Kaale Island and the other in the forest opposite the main falls. A low-impact cultural campsite in the vicinity of the historical Litunga channel is also part of the project. This channel was used by the Litungas in the past to circumvent the falls during official visits to Sesheke. A game fence is also proposed on the Simumbi side, along with access roads and trails. An additional phase preceding the development of the lodge site will be the re-introduction of game to the western section, along with a river trail. Planned facilities include a recreation and orientation centre, an interpretation centre, interpretive trails, an overland campsite, adventure activities such as rafting and kayaking, and fishing charters. The area around Sioma Falls offers significant cultural and tourism value and can provide much-needed benefits to local communities. Another tourism project in the works involves developing and managing tourist facilities at Kafue National Park. The development will be on land leased from the Zambia Wildlife Authority. The project will include building a tourist lodge and developing services such as bush walks, game drives and canoeing. Investors would have a 10-year lease with the possibility of renewing it.

Rapidly developing education sector In Zambia’s rapidly developing education sector, investors are being sought for a new university, the Victoria Falls University of Technology. The university is seeking suppliers of learning equipment and licenses for academic programmes. The proposed university will be developed on 100 hectares of prime land at Kazungula in Livingstone. The project’s developer has obtained a long-term lease (50 years) on an existing teaching facility at the location. The facility was previously a government technical training institute for craftsmen and has a library, 10 lecture rooms, an administrative block, two laboratories, three hostel blocks, a medical clinic, a kitchen block and a recreation room. Extensive

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Business & Investment Opportunities

GOOD TIME STEEL COMPANY ZAMBIA LTD upgrading of the existing facilities has already begun. The campus is connected to the Livingstone City electricity network and is close to a highway. The university will offer programmes in applied science and engineering, information and communication engineering, agricultural science and food technology, energy and environmental studies, and languages, tourism and international relations. The developers seek investors interested in franchising or licensing academic programmes in the areas of information and computing technologies, telecommunications, electrical engineering, energy management, agriculture engineering, food sciences, environmental sciences and tourism. This involves the provision of courses, assisting the university in launching the programmes, training lecturers and monitoring quality. The university also seeks suppliers interested in franchising or licensing academic programmes with the possibility of a joint-venture partnership in the future, and equipment suppliers, particularly suppliers of computers, printers, copiers, projectors, video-conferencing equipment, kitchen equipment for tourism courses, and VSAT equipment for communications, physics, chemistry or languages laboratories. The new university’s strategic location will attract students in Zambia as well as in Botswana, Zimbabwe and Namibia, which lack science and technology universities of their own. Zambia’s ZDA Act provides a number of incentives for this investment in Zambia’s education sector.

Projects in agriculture In the agriculture sector, the Zambia Development Agency is inviting public-private-partnership investors in the development of Luena sugar estate, in the Luena designated farm block located in Luapula Province in northern Zambia. The estate is to be developed on 100,000 hectares of farmland ideal for growing sugar cane. The project will include a sugar plantation and a processing facility. A number of incentives are available to investors under the ZDA Act. The above high-potential projects and many more are open to investors in today’s Zambia, one of the world’s fastestgrowing economies just waiting to be developed.

Top Quality, Made-inZambia steel products Good Time Steel, founded in 2005, now has 500 employees and achieves turnover of around €22 million per year.

Jacky Huang, Managing Director

Managing Director Jacky Huang says, “We brought know-how from China, bought land here in Zambia, and began to build our plant here, which we opened for production in 2008. Every year we add new products to our portfolio.” Good Time Steel maintains its edge in an increasingly competitive market by offering high quality, efﬁcient service and a wide range of products. Jacky Huang points out, “We are the ﬁrst manufacturer in Zambia to manufacture so many different kinds of products, and we produce 50,000 tonnes of steel per year. Our current capacity is 80,000 tonnes. Our main strength is in manufacturing, so we are able to keep our costs down. Our products meet the same standards as in South Africa. We offer the best possible service in the shortest possible time.” Good Time Steel aims to invest €73.7 million in its plant in Lusaka over the next two years to upgrade its production equipment and processes and to double production to 100,000 tonnes per year. Jacky Huang concludes, “We aim to become the region’s leading steel manufacturer in terms of capacity, quality, product range and service.” Good Time Steel Company Zambia Ltd Plot No.33811, Mungwi Road Heavy Industrial Area , (Opposite Zamleather), Lusaka Tel: +260 21 12 41437/38 jibohuang@yahoo.com, www.gtsteel.co.zm

29 11

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ZAMBIA

Zambia international Investment Forum 2013: spotlight on tourism

The Zambia International Investment Forum (ZIIF), held for the third time in August 2013, is an annual conference aimed at promoting and showcasing investment opportunities

in Zambia. Each Zambian International Investment Forum has a particular focus, and this yearʼs theme was “Harnessing Tourism Opportunities for Wealth and Job Creation”.

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Business & Investment sector Opportunities

The 2013 forum built on the theme of last year’s ZIIF, whose theme was “Value Addition for Wealth and Job Creation: A Win-Win for All.” ZIIF 2013 was appropriately held in the upscale Zambezi Sun Hotel in one of Zambia’s top tourism destinations, the town of Livingstone near Victoria Falls. The forum was timed to occur just a few days before the General Assembly of the United Nations World Tourism Organisation (UNWTO).

Opportunities for investors to network with local leaders This year’s ZIIF attracted over 245 potential investors and representatives of companies from all over the world, over twice the number of attendees at last year’s event. They had the opportunity to meet several Zambian government and private-sector leaders, who outlined the extraordinary investment potential of the Zambian economy. As at all Zambia International Investment Forum events, delegates were able to network with local and international participants and get informed insights on investing in Zambia from the representatives of local companies and foreign investors already active in the country. Speakers at this year’s ZIIF included government ofﬁcials, CEOs, tourism operators, corporate representatives, business associations, ﬁnancial-services providers and other groups and individuals involved in the tourism industry. Zambia’s Ministries of Commerce, Trade and Industry, and Tourism and Arts, along with the Zambia Development Agency and the United Nations World Tourism Organisation, hosted the event.

Priority areas for tourism development and investment ZIIF 2013 involved panel discussions on priority areas in Zambia’s tourism industry. These included the need for more tourism infrastructure, links between Zambia’s agroprocessing and tourism sectors, the great potential of ecotourism in Zambia, the advantages of tourism clusters as a means of fostering sustainable tourism growth, opportunities for joint ventures in Zambia’s tourism sector, the creative arts as one aspect of Zambia’s tourism appeal, ﬁnancing tourism projects, human-resources development and job creation in the tourism and hospitality sectors, and community-based tourism. Each panel discussion also covered speciﬁc investment opportunities in that priority segment. According to ZIIF 2013’s organisers, this year’s Forum provided an unparalleled opportunity for attendees to explore opportu-

nities in the Zambian tourism industry, meet local government officials and private-sector leaders face to face, make contacts with current foreign investors in Zambia as well as with potential local partners, and discuss the process of investing in Zambia with representatives from the Zambia Development Agency. Vice-President, Guy Scott, delivered the opening speech at this year’s investment forum. He commented on Zambia’s need to aggressively market its tourism potential during the UNWTO general assembly, particularly to investors from China, India and other countries showing interest in investing in Zambia. He said, “Zambia needs to make more investors as well as visitors aware of all the tourism attractions and development potential our country has. Many people around the world do not know that our south Luangwa national park is a fantastic place, we are seeing lions return to our nature reserves, and Victoria Falls is actually in Zambia and not in South Africa! We Zambians have to learn to be more aggressive in promoting our country and not be content with being number two or three. We have to be number one all the time.” As the Vice-President pointed out, Zambia’s income from its tourism sector is only around 5% of average tourism revenues in neighbouring countries, even though Zambia has many unique attractions as well as the largest wildlife area in the region. Emmanel Chenda, Minister of Commerce, Trade and Industry, also spoke at ZIIF 2013. He said confidently that this year’s forum will “lead to various forms of Greenfield investments involving local and international investors as well as various government agencies.” The Zambezi Sun Hotel, the venue chosen for this year’s ZIIF, illustrates the potential of Zambia’s tourism industry. Located near famous Victoria Falls, the Zambezi Sun features innovative architecture inspired by typical African village constructions, with special touches like bright mosaics, locally woven textiles, and many examples of Zambian art and handicrafts. The hotel’s staff welcomed conference-goers with the warm hospitality for which Zambia is famous.

Working together to foster development The Zambia International Investment Forum is designed not only as a stimulus for investment in the Zambian economy, but also as an opportunity for the country’s public and private-sector leaders to work together to ensure Zambia’s sustainable development. As Vice President Scott pointed out, “When indigenous investors and companies attend trade affairs, we usually represent ourselves individually and not as one country or an economy. We need to join forces.”

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MASTER ZAMBIA REGIO

Partners Guide Means Business in Zambia Partners Guide is the leading media platform for business and policy decision makers in Zambia.

Over three years old, the business magazine distributes 10,000 copies quarterly through Parliament, Statehouse, Lusaka stock exchange, house of Chiefs, foreign missions, Kenya Airways Business Premier World on Zambian routes, corporate subscribers, high-end hotels and leading retailers nationwide. Minister of Agriculture, Hon Robert Sichinga MP says, “It is a vital resource for business people and investors. It discusses economic issues and acts as a platform for businesses to discuss their offerings. It enhances the visibility of Zambian companies to clients and investors and encourages industry to discuss issues and find innovative ways of overcoming challenges.” the magazine features the minister of Commerce, trade and Industry; Zambia Development Agency; ambassadors; chiefs and leading business figures in or connected to Zambia, all voicing opinions on economic development. Each edition has a Destination Guide on a Zambian location from a business, investment and tourism perspective and a Financial Guide produced by Pangaea Securities, Zambia’s leading investment bank. Partners Guide is run by Zambian entrepreneur, Jonathan Kays and British citizen, Ray Willbern. Jonathan Kays has started numerous companies in Zambia and the DrC and has a Bachelor’s in Business Administration from Dublin City University. “Trade, not aid is critical to developing Africa and uplifting millions out of poverty. We encourage investors to Africa - there are profits to be made and those investments will reduce poverty levels.” Ray Willbern has a background in Management Consulting in the UK. He has a Bachelor’s in Management Studies from the University of Nottingham and a Certificate of Mastery in the Economics of Global Poverty from MIT.

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Ray Willbern and Jonathan Kays

Ray Willbern says, “In Africa, you can escape the pigeonholes you ﬁnd with business in Europe. There is less competition here; so much need and plenty room for innovation. With an idea in Europe, there will be numerous similar ideas, so your investment may not be missed, but in Africa it could be vital. You are born to help yourself and to help others. In Africa you can do both abundantly. Investing in Africa has a greater gain to society than investing in Europe. It’s not easy doing business in Africa, but if you can make it here, you can make it anywhere.” Due to its position at the forefront of business in Zambia with contacts across all sectors, Partners Guide provides research and consultancy to investors looking to do business in Zambia and can link those investors with whatever they need to ensure their venture is a success. It is the Partners Group, publishers of the Partners Guide’s goal to create 10,000 employment or wealth creation opportunities in Zambia by the end of 2015. For more information, visit www.pgzambia.com or email info@partnerszambia.com Partners Group 1 Buchi Road, Northmead, 10101 Lusaka Tel: +260 211 23 6745/46/47/48/49 Cell: +260 977 20 55 15

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MASTER REGIO Business & Investment Opportunities

Ndola: Gateway to DR Congo and Beyond The planned new Simon Mwansa Kapwepwe International Airport in Ndola demonstrates the cityʼs growing role as the hub of Zambiaʼs famed Copperbelt as well as a key gateway to the Democratic Republic of Congo, whose border with Zambia lies just 10 km from Ndolaʼs city centre.

the new airport, to be built on 2,000 hectares of land along the Ndola-Mufulira road, will be able to accommodate two million passengers per year. It will include a number of new facilities and services for cargo as well as passenger trafﬁc, and is expected to have a signiﬁcant impact on trade and travel between Zambia, Dr Congo and other markets throughout the region and beyond.

Zambia’s third-largest city ndola, with a population of around 455,000 in 2010, is the third-largest city in Zambia and serves as the ofﬁcial capital of Copperbelt Province. Founded in 1904 as a trading post on the former Rhodesia Railways main line, Ndola is Zambia’s second-oldest colonial-era city. Since its founding, it has been the main source for Zambia’s exports of copper.

Before 1980, Ndola was Zambia’s main industrial hub, home of many production facilities owned by leading multinationals. Today, Ndola is regaining its position as an economic powerhouse. Since copper exports account for around 80% of Zambia’s total exports, Ndola has a key role to play in the country’s GDP. ndola is also the site of the indeni oil Reﬁnery, which supplies the country with reﬁned petroleum. In addition, the Bank of Zambia (the national bank) and all other major banks in Zambia have branches in Ndola, providing highquality banking services for investors. along with copper, ndola has huge limestone reserves mainly used in cement production, and the Lafarge Cement Zambia plant in the area has made Ndola a major player in the regional cement and constructionmaterials industries. Ndola Lime is an

important supplier to the local cement sector. Ndola is served by a Zambia Railways line offering passenger and freight services between Kitwe and Livingstone via Kabwe and Lusaka. A dual carriageway links Ndola to Kitwe, while other highways connect to Mufulira and Lusaka. Rail lines for freight trafﬁc connect Ndola to other Copperbelt towns and, serving the Congo market, a freight line runs from ndola to Lubumbashi in Dr Congo via Sakania. Ndola will continue to enhance its position as a thriving business and commercial hub as well as a gateway to the DR Congo. Sponsored by:

lynx@zamnet.zm

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ZAMBIA

outstanding opportunities in manufacturing and trade non-metallic minerals products; construction materials (including cement); and basic and fabricated metal products.

Multi-Facility Economic Zones and industrial parks

Zambia

oﬀers

outstanding

opportunities

and a number of incentives for investors in manufacturing and trade-oriented activities.

Thanks to vast natural resources, growing domestic

and

international

markets

for

Zambian products, and strong support from the

government, Zambiaʼs manufacturing sector now accounts for around 11% of the countryʼs GDP and has been expanding by around 3% per year for the past ﬁve years. Made-in-Zambia

goods now add up to around 25% of Zambiaʼs total exports.

This growth has been driven mainly by the foods-and-beverages-processing (around 63% of Zambia’s total manufacturing activities), textiles and leather sub-sectors. Other manufacturing sub-sectors include wood and wood products; paper and paper products; chemicals, rubber and plastics;

In its drive to diversify the Zambian economy, the government is putting more and more focus on promoting investment in the manufacturing sector, for example through the creation of Multi-Facility Economic Zones (MFEZs) and Industrial Parks. Both offer a number of specific incentives for investors as well as building land, high-quality infrastructure and support services. The government also promotes manufacturing by small and medium-sized companies, particularly in rural areas. FDI in Zambia’s manufacturing sector totalled over €591.4 million in 2011 and continues to rise. Zambia’s manufacturing enterprises are stepping up their regional and international trade. The country strives to meet Trade Related Investment Measures (TRIMs) requirements and adheres to World Trade Organisation standards. top exports from Zambia include engineering products, processed and refined foods, chemicals (including fertilisers) and pharmaceuticals, scrap metal and leather products. Zambia’s main markets for these exports are the Common market for eastern and southern africa (Comesa) and the Southern African Development Community (SADC) trade blocs. The country has signed bilateral reciprocal promotional and protection-of-investment protocols with most COMESA and saDC member states, and Comesa signed a trade and Investment Framework Agreement with the US in 2001. Zambia has preferential access to the us market thanks to the African Growth and Opportunity Act (AGOA) and to the eu market thanks to the eastern and southern africa (esa) Interim Economic Partnership Agreement (IEPA). The biggest individual markets for Zambian exports are South Africa and the Democratic Republic of Congo. Significant export markets outside Africa are China, Belgium, the Netherlands and Switzerland. The EU and the US are major export

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Business & Investment sector Opportunities

markets for Zambian textiles. The country has also signed protective agreements with Chinese, Nigerian, Libyan and Indian investors to step up bilateral trade with these markets.

horticulture, processed foods, beverages and stimulants, textiles, manufactured engineering products, mini-hydropower plants, education and skills training, and the production of fertilisers, cement, leather and timber products.

Zambia Development Agency: one-stop shop

Incentives for investors in these priority products and sectors include zero tax payments on dividends for five years from the first year the company declares dividends; zero tax on profits for five years from the first year profits are made, and taxation of only 50% of profits for years six to eight and 75% of profits for years nine and 10; zero import duties on raw materials, capital goods and machinery, including trucks and specialised motor vehicles, for five years; and zero VAT payments on machinery and equipment, including trucks and specialised motor vehicles.

The Zambia Development Agency (ZDA), established in 2007, is a one-stop resource for international investors interested in opportunities in Zambia. Foreign investments are covered by the Zambia Development Agency Act, which offers a wide range of incentives in the form of allowances, exemptions and concessions, all applied uniformly to both local and foreign investments. Investors who invest at least €369,631 (US$500,000) in a Multi-Facility Economic Zone and /or in a sector or product designated as a priority sector or product under the ZDA Act (including manufacturing ventures) are entitled, in addition to general incentives, to a number of speciﬁc incentives.

Priority sectors and products Priority sectors in addition to manufacturing are agriculture, mining and tourism. Priority products are ﬂoriculture,

Special incentives for manufacturers Special incentives for manufacturers include a refund of VAT on exports of Zambian products by non-resident businesses under the Commercial Exporters Scheme; reduced taxes on fertiliser products; capital allowances on industrial buildings used for the purposes of manufacturing; no import duties on textiles equipment or on woven products imported to be processed in Zambia; reduced imports (5%) on PVC lining and eyelets used in the production of shoes; and other incentives. Foreign and local investors pay the same tax rates in Zambia. Income from farming is taxed at a rate of 10%, while the standard corporate tax rate is 35%. In addition, that portion of income determined by the Commissioner of Taxes to originate from the export of non-traditional products is taxed at a rate of 10% (traditional exports include copper, cobalt, lead, zinc, gold and silver). Along with these incentives, projects in the manufacturing, mining, and hotel sectors qualify for a depreciation allowance of 5% per year, plus an initial allowance of 10% of the cost in the year in which the building was ﬁrst used. Equipment, machinery, and plants used exclusively for farming, manufacturing, and tourism qualify for a depreciation allowance of 50%. The depreciation allowance for non-commercial vehicles is 20% while expenditure on other assets used in generating income qualiﬁes for a depreciation allowance of 25%.

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ZAMBIA

The 2012 national budget eliminated a 5% customs duty on helicopters and micro-lights for use in the tourism sector, and export duties on copper and cobalt concentrates have been reduced from 15% to 10% and extended to cover all unprocessed or semi-processed minerals. This extension is intended to encourage local processing and value addition and provides another boost for manufacturing in Zambia. No requirements currently exist for local content, equity, ﬁnancing, employment, or technology transfers concerning investments in Zambia. The government does not impose offset requirements or impose conditions on permission to invest in speciﬁc geographic areas or local content, but investors are encouraged to employ local nationals.

Any sector open to foreign investors Foreign investors can invest in any sector in Zambia and are eligible to bid on state-owned companies being privatised. Non-Zambians may also invest in the Lusaka Stock exchange without restriction and on terms comparable to those Zambians receive. Companies seeking licenses or con-

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cessions or investors bidding for privatised companies are encouraged to seek local partners. The ZDA board screens all investments for which incentives are requested and usually makes its decisions within 30 days. The reviews are considered non-discriminatory and applicants have the right to appeal the investment-board decisions. Although performance requirements are not imposed, authorities expect commitments made in applications for investment licenses to be fulﬁlled. Import restrictions are in force on poultry products and genetically modiﬁed products for environmental, health and security reasons. Import licensing is required for most agricultural products. Zambia does not currently apply trade sanctions. Food imports must satisfy the provisions of the Food and Drugs act of september 1978, which requires packaging and labelling requirements to be in English. Through its forward-thinking regulations and many incentives, Zambia is obviously working hard to enhance its attractions for international investors in manufacturing and export-oriented enterprises.

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MASTER REGIO

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Business & Investment Opportunities

Zambia’s New Horizons for Investors Like many entrepreneurial success stories, New Horizon Printing Press

made its entrance into the Zambian market when a group of partners realised that not only was there a need to be filled in the country, but that they were uniquely positioned to capitalise on that need. new horizon printing press was established in 2000 when Shawky hemaidan, managing Director, and his partners, who trace their roots back to a family printing business in Liberia, realised that the majority of full color jobs were being imported from Zimbabwe and South Africa. From a relatively small €440,000 investment, the firm has grown exponentially over the years, and now is firmly entrenched as a market leader in the country. “We saw the market grow as people started having confidence in the local printers. Not only us, but the entire sector,” Hemaidan explains. Shawky Hemaidan recognises that diversification is the key to continued profitability, so New Horizon has

steadily expanded into new and varied product lines, from screen-printing to paper packaging, and twenty-four outdoor LeD screens that are about to be rolled out. “I think that outdoor LeD screens are the future and we felt that investing in it is appropriate even though the large format printing is a disadvantage. Eventually some will do that and we will still suffer from the consequences.” Due to a capacity that far exceeds the competition, with massive quantities of raw materials on hand, new horizon has been able to maintain market leadership. “Our success is consistency of quality, of service and reliability, and that’s very important. our clients depend on us to be able to deliver on tight deadlines.” With a strong track record and a robust client portfolio, new horizon plans to remain at the forefront of Zambia’s printing industry for decades to come. With an eye on the future, Hemaidan states, “there aren’t many printers here that are willing to invest €1.1 million in a new machine, but we do because we know that we need to stay ahead of the curve.” Nearly a decade and a half after taking a ﬁrst tentative step into the Zambian

Shawky Hemaidan, Managing Director

printing industry, Shawky Hemaidan believes that his success is largely due to the openness and stability of the Zambian market. “This country is rich in its land, its people, and its climate. If you’re looking for a country where the general investment climate is better than in many other countries, and if you don’t want to worry about your investment, Zambia is a good destination to come to. There’s a lot to be done; there’s a lot of things that have not been explored.” NEW HORIZON PRINTING PRESS LTD. Plot No. Lus/9815/H - Kafue Road PO Box 38871 Lusaka Tel.: +260 211 231477/8 - 236637/8 info@nhppzambia.co.zm

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MASTER ZAMBIA REGIO

india helping Zambia maximise its resources will not combat poverty. In the agriculture sector, Zambia has great potential not only to feed its population but also to export agricultural products. The sector traditionally focuses on maize cultivation, so Zambia’s potential for cotton and sugar production is yet to be fully developed.”

Ashok Kumar, Indiaʼs former High

Commissioner

Zambia, promotes stronger ties between India and Zambia and

highlights

Zambiaʼs

investment potential. He says, “Zambia

resources

oﬀers from

abundant

mining

Long history of partnerships

agriculture, along with fertile land,

young

small

population,

English-speaking

workforce, and ample supply

of water. In fact, 40% of

the above-ground water in

southern Africa is found in Zambia. Once it maximises its

resources,

Zambia

certainly develop rapidly.”

will

Ashok Kumar, Indiaʼs former High Commissioner to Zambia

Through the ofﬁce of the High Commissioner, india is lending its expertise to Zambia and investing in the country’s future. Of the €3.6 billion India has earmarked for programmes in africa over the next ﬁve years, a large percentage will target Zambia. Mainly through value-addition projects. Former High Commissioner Ashok Kumar says, “In India, Gujarati women have created profitable businesses through pulping mangos; Zambians could launch something similar here. In addition, the country’s gemstones could be processed here. Value addition is the way forward for Zambia.” India is helping Zambia develop its small and medium-sized enterprises (smes), an economic segment with which India has extensive experience and many success stories. India is also supporting Zambia’s agricultural development. Ashok Kumar explains, “Until you develop agriculture and SMEs, you

138

India and Zambia have a long history of partnerships, and some of the biggest investors in Zambia today are Indian companies. Just one example is KCm, which, with some 22,000 employees, is the largest single employer in the country after the Zambian government. Other leading indian companies operating in Zambia include TATA, which is investing in hydropower projects there. Through the Indian Technical Economic Cooperation initiative, the Indian government finances training programmes in Africa in a wide range of fields and has already trained over 2,500 Zambians. Ashok Kumar praises Zambia’s progress and is very confident about the country’s future. He says, “The self reliance Zambia is practising – the move from aid to trade – is part of the reason for the country’s promising growth over the past few years. Zambia’s successful shift in paradigms is something the Indian government recognises and it is now the focus of the relationship between the two countries.”

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Business & Investment Opportunities

Chinese ambassador explains Signiﬁcance of Zambia-China partnerships As

pertains

development,

Zambian

Chinese

Infrastructural

companies

can

be attributed to many of the large-scale developments in the past decade. Dr. Zhou Yuxiao,

Chinese

Ambassador

Zambia

discusses the progress made in Zambia due to Zambia-China partnerships.

European Times: How do you describe your role in terms of increasing Chinese Investment in Zambia? Zhou Yuxiao: As Ambassador, it is my duty to maintain a strong diplomatic relationship between the Zambian government to ensure continued partnership and business development. Currently there are over 400 registered Chinese companies in Zambia; very few of these companies are owned by the Republic of China. There is a common misconception that all Chinese companies are subject to my authority as ambassador. They simply register with the Chinese Embassy, however, these companies are in no way subject to our power while in Zambia. As companies registered in Zambia, they are only subject to the laws and regulations of the government of the Republic of Zambia (GRZ). European Times: One common misconception about Chinese businesses in Africa is that resources are taken with little beneﬁt to the local populations. From your experience, how do you respond to this? Zhou Yuxiao: Before coming to Zambia, I worked in Liberia. There was very little infrastructure there, and the Chinese companies did a bulk of the work to help develop the country such as building roads and bridges. Granted, Zambia was further ahead in development when Chinese development started to grow here just over a decade ago. However, Chinese ﬁrms have been quite involved in developing road and hydropower infrastructure. According to

Zhou Yuxiao, Chinese Ambassador to Zambia

the perception, one would think that Chinese companies own a majority of mines in Zambia. In reality, the Chinese market share of copper mines is approximately 5%. Chinese cumulative investment in Zambia has now surpassed €3.68 billion. This investment has created 50,000 jobs for local Zambians. We are damaged by misinformation, however, the facts speak for themselves. Zambians beneﬁt from all of the work that we do in Zambia. European Times: The Zambian and Chinese governments have called themselves ‘All Weather Friends’. Moving forward, how do you see yourself working to maintain this strong relationship? Zhou Yuxiao: We work to educate and encourage every Chinese business in Zambia to understand the local culture. Where Chinese companies are wrong, we support the GRZ in correcting wrongdoing. Chinese companies work to improve Zambia while respecting local laws and regulations; this partnership beneﬁts all parties involved.

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MASTER ZAMBIA REGIO

Committed to rule of Law It is widely recognized that well-functioning law and justice institutions and a government bound by the rule of law are important to economic, political and social development.

As a result, the maintenance of peace, law and

order has been a top priority for the Zambian government.

Zambia has a two-tier legal system in which international law is seen separate from domestic law. At domestic level, the statutory law system is conceptually superior to and separate from the parallel traditional customary law system. One of the largest law firms in the country is Simeza, Sangwa & Associates which has managed to strike a balance between global legal philosophy and local practice and culture. As a premier litigation firm in Zambia, Simeza, Sangwa & Associates has built an enviable reputation domestically and internationally for its high profile and complex cases. The firm is however not just a litigation boutique but also has a fully fledged advisory wing which deals with corporate law, tax, property, company secretarial and other non-litigation work. In Zambia, access to justice can be limited by factors such as ignorance of the existence of human rights and financial challenges to seek enforcement of human rights. For their part in redressing the situation, the founding partners of the firm have over the past two decades complemented the efforts of the government in providing access to justice to disadvantaged and underprivileged persons in society. In particular, robert simeza and John sangwa, established the Legal Resources Foundation as a pioneer non-governmental organisation providing free legal services to the indigents in society. The Legal Resources Foundation has been a key proponent of human rights cases and other public interest litigation in Zambia and has over the years recorded success in promoting awareness and redressing violations of fundamental human rights and freedoms. the rule of law and absence of corruption are among the conditions required to support foreign direct investment inflows and Robert Simeza believes that Zambia is per-

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forming pretty well in these areas. “Zambia is an investment haven. If you can’t make money in Zambia, you can’t make money anywhere else,” he stated. He also affirmed that the legal system is generally functional even if at a slower pace than desired. While he believes that some room remains for improvement which includes judicial reform, the fact remains, that one can invest in the country and reap the rewards without having to face obstacles like endemic corruption. Zambia’s first President Kenneth Kaunda once stated: “The lawyer in a developing society must be something more than a practising professional man; he must be more than the champion of the fundamental rights of the individual. The lawyer must go out beyond the narrow limits of the law, because as I have said, while law is the instrument through which society is preserved, in its shape and character it is the reflection of society.”’ In Zambia today the law is not only used to maintain order in society but also to foster a cohesive sense of community to enhance Zambia’s march towards further economic growth and development. Simeza, Sangwa + Associates Unit C, The Coliseum, Bwinjimfumu Road, Rhodes Park PO Box 36824, Lusaka Tel.:+260 211 227574|227484 simezasangwa@iconnect.zm, Info@simezasangwa.co.zm

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Business & investment opportunities

innovative pr Firm offers Wide range of services Established in 2005, Cutting Edge PR is widely

recognised as a pioneer in Zambiaʼs public

relations consultancy sector, living up to its name for close to a decade. Cutting Edge PR oﬀers

innovative, world-class strategic communications services coupled with local knowledge.

the company is a full-service communications consultancy based in Lusaka that handles strategic communications counsel for a diverse array of corporate clients in different sectors including ﬁnancial services, manufacturing, healthcare, agriculture, petroleum and mining. it is dedicated to helping its clients achieve success in local and global markets. Founder and Managing Director Mildred Kaunda, who had a career in investment banking, recognised a need for cuttingedge public relations services in Zambia and launched the company to ﬁll this gap. She says: “At the time the Zambian market was more oriented towards general marketing and advertising services. i recognised the need for a niche service in communications and public relations and I went for it. Not having an example to glean from within Zambia, i went abroad to learn how to structure the company and to upskill myself. i then returned home to put my knowledge into practice.”

Global knowledge, international reach Cutting edge pr’s competitive edge is its combination of in-depth local knowledge, global reach and international best practice. the company has a highly trained team of professional consultants with experience in many areas and has established working partnerships with other PR firms around the world. Cutting Edge PR is affiliated with a respected global PR firm, which gives it worldwide reach. Cutting edge pr is a member of the international public relations association (ipra), the public relations society of america (prsa), the public relations institute of southern africa

Mildred Kaunda, Founder and Managing Director

(prisa), the Zambia public relations association (Zapra), and the american Chamber of Commerce in Zambia. in an age where communications are shifting towards digital media, Cutting Edge PR has the expertise its customers need. the company specialises in providing integrated communications solutions, whether for business-to-business, businessto-consumers or public affairs. “Zambia’s future is bright,” says Mildred Kaunda. “We need to focus on developing a proper national communications strategy in order to upgrade our international image and promote the country as a business destination that is safe, and full of potential.” ten years on, the managing Director still has ambitious goals for her company. She says: “Public relations is a profession that requires one to be grounded in written and verbal communication as well as proﬁcient with technologies. As a manager of client brands, the success of a client’s business depends on your clarity, precision and style. i want to establish a full-grown agency recognised throughout the region and internationally. my ambition is to increase the Cutting edge pr team and client base to be able to open up other branches in Zambia. that will also allow us to service a wider audience and continue to provide cuttingedge solutions to the market.” Cutting Edge PR 5 Buungano Suites, Lubu Road, PO Box 50818, Lusaka Tel: +260 211 257893 / 257894 info@cuttingedge.co.zm, www.cuttingedge.co.zm

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ZamBia

• Bank of Zambia Governor Outlines Financial-Sector Strategies • New Currency Simplifies Financial Transactions • Best Sovereign Bond in Europe, the Middle East and Africa • Ambitious Financial-Sector Reforms Bearing Fruit

Finance

“We are working to create a more appealing capital market for everyone within our economy.” Hon. Alexander Chikwanda, Minister of Finance

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Finance

increasing access and investment

While most of the world is struggling with stagnant growth rates, Zambiaʼs Minister of Finance, Hon. Alexander Chikwanda has a unique challenge: maintaining policies

to support the economyʼs rapid growth. Following a growth rate of 7.3% in 2012, Dr. Alexander Chikwanda is poised to see an average Gross Domestic Product increase

of 7% per annum over the next ﬁve years. In the midst of rapid expansion and increase of Foreign Direct Investment, the government of the Republic of Zambia has still managed to stabilise its own currency (Zambian Kwacha: ZMK) to guarantee continued and stable growth in the years to come.

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ZamBia sector

Effective on January 1 2013, the Zambian Kwacha was rebased, truncating the currency by one thousand. Whereas the Zambian Kwacha was subject to hyper-inﬂation in the past decades, the patriotic Front Government set the new currency exchange to set the tone for a more stable economy. along with this measure the Bank of Zambia recapitalised banks to balance the reduction in interest rates. “the high interest rates that banks offered to small and medium enterprises were stiﬂing growth, we are working to create a more appealing capital market for everyone within our economy.”

long-term economic growth, while also freeing government funds for developmental projects.” since the patriotic Front Government was elected as the majority in parliament, there have been strides to make certain that Zambia will see stronger growth in the future. Dr. Alexander Chikwanda sees the importance of developing infrastructure and manufacturing to establish Zambia’s position as a middleincome country in the years to come. “even if a nation has the world’s best pineapples, that is not enough to build an economy,” begins Dr. Alexander Chikwanda. “there must be roads and rail lines so that the pineapples will reach a manufacturer who can make pineapple juice from the fruit. the pineapple juice must then be packaged by another company; that is what we need in Zambia: start-to-finish production.”

“The opportunities are numerous, and we are building the infrastructure for an economy that will grow for the years to come.”

Dr. Alexander Chikwanda stresses the need to increase investment and assuages concerns about recent statutory instruments. recent legislation such as si-55 that gives the government access to monitor inflows and outflows of foreign exchange raised eyebrows amongst the business community, initially. however, it is becoming clearer that these measures will work to benefit the business community by giving the government a much clearer picture of the flows of currency in the economy. “How can the Ministry of Finance plan for the next fiscal year without sufficient information? If we do not have an accurate picture of the growth in the economy, there is no way to prepare for the next year.”

the government of the republic of Zambia has also made difficult choices to curb government spending and increase investment even when these moves have been unpopular. Dr. Alexander Chikwanda explains that the removal of fuel and maize subsidies may have been a difficult choice, however he sees the silver lining in future economic growth because of this sacrifice. “While there is continuing worldwide economic turmoil, it is necessary for the government to reduce unnecessary expenditure. We believe that the decision to cut subsidies will result in

Dr. Alexander Chikwanda sees Foreign Direct Investment as integral to the development of Zambia. the global business community also sees the eminent growth in the Zambian economy. When the government of the republic of Zambia issued debt in the form of a eurobond in early 2013, the response was resounding. The amount of debt issued was €552.77 million, and its oversubscription amounted to over ﬁfteen times the amount on offer (€8.77 billion). However, Dr. Alexander Chikwanda encourages many more investors to invest in Zambia. “the theme of this year’s international trade Fair in ndola is Value addition through Global partnerships. Zambia will grow, and future partnerships with members of the international business community will be the primary driver. We encourage everyone to come see Zambia. the opportunities are numerous, and we are building the infrastructure for an economy that will grow for years to come.”

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Finance

the people’s Bank

In one of the worldʼs most rapidly expanding economies, Zambia National Commercial Bank works to support the countryʼs largest commercial entities while staying true to its image as ʻThe Peopleʼs

Bankʼ. Known to most as Zanaco, the bank has worked to increase the viability of financial services to all of Zambia, develop strong international and domestic relationships, and expand the bankʼs footprint in public and private partnerships. Zanaco’s Ceo martyn schouten’s twenty-eight years of experience in international finance contributes to his ability to run the nation’s most successful indigenous bank. Zanaco’s Primary objective now is to expand the number of Zambians that use financial services. “We have taught over 35,000 Zambians in our financial literacy course ranging from those who have been farming for decades to entrepreneurs and schoolchildren. We show them the benefits of planning for their futures.” Whereas Zambia’s agriculture sector has the most potential for growth, Zanaco’s international partnership with rabobank, the world’s largest agricultural financier, encompasses the 2013 Zambia Agricultural and Commercial show’s theme of ‘Value addition through Global partnerships’. the bank derives its strength from a strong relationship with the government (25%), involvement with

Zambian citizens (29.41%), and its largest shareholder being the Dutch international financial institution, Rabobank (45.59%). Zambia national Commercial Bank’s combination of local involvement and international expertise yield excellent results. over the past five years, the bank has more than tripled the net profit. martyn schouten attributes this growth to overall economic development and credit becoming more available throughout Zambia. “the growth in the Zambian economy is the primary driver; there is no indication that growth will slow down any time soon. With more Zambians accessing affordable finance, the bank has become more successful while we work hard to deliver worldclass cutsomer services and affordable banking products.” as Zambia’s middle class grows, demand for food products and

consumer goods will continue, boosting Zanaco’s primary corporate customers in the retail and agriculture sectors of the Zambian economy. in addition, Zanaco’s goal is to increase from approximately 670,000 to one million customers in 2015. “We are growing our customer base by banking the unbanked in rural areas,” Ceo schouten says. When asked why potential investors should look to Zanaco as their ﬁnancier, martyn schouten quotes the company motto ‘Big. strong. reliable’. With Zambia national Commercial Bank’s ambitious growth strategy, local involvement, and international rapport, the company motto resonates stronger every day.

Zambia National Commercial Bank Plc PO Box 33611 , Cairo Road, Lusaka Tel: +260 211 22 8979 www.zanaco.co.zm

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Bank of Zambia Governor outlines Financial-sector strategies growth of well over 6%, all of which has led to increased FDI. In 2014, we will introduce Basel II capital requirements, which should increase the ﬁnancial sector’s investment attractiveness. European Times: Promoting ﬁnancial inclusion is a top priority for Zambia. What progress has been made so far?

Dr. Michael Gondwe, Governor of the Bank of Zambia, discusses recent developments in Zambiaʼs ﬁnancial sector.

Dr. Michael Gondwe: the Zambian government along with the Bank of Zambia developed a Financial-sector Development Plan which includes addressing weaknesses in the financial sector and related infrastructure and targets increasing access to financial services. In its current Strategic Plan, the Bank of Zambia aims to raise financial inclusion to 50% of the adult population by 2015. The Financial Sector Development Plan focuses on three main ways to increase financial inclusion. These are financial education, improving our financial-services infrastructure (including mobile and branch-less banking), and boosting competition in the financial sector, including through changes in the tax system. Regulatory changes which were implemented in 2013 include eliminating withholding tax on interest earned by individuals from savings or deposit accounts held with financial institutions such as banks or building societies; this should help boost savings. We have also launched many financial-education programmes in schools and universities as well as public-awareness campaigns. European Times: What is your strategy for improving entrepreneurs’ access to capital?

European Times: What are some measures the Bank of Zambia and the government have undertaken recently to strengthen Zambia’s economy and ﬁnancial sector?

Dr. Michael Gondwe: In 2013, interest caps and limits were introduced for all formal lending institutions, which will help give emerging entrepreneurs the opportunity to borrow at affordable rates.

Dr. Michael Gondwe: our decision to introduce new denominations of Kwacha bills and coins has greatly increased efficiency of financial procedures and simplified business processes as well as consumer spending. to strengthen the banking sector, we raised commercial banks’ minimum primary-capital requirement, which should also help enable banks to finance big-ticket projects. We have managed to increase Zambia’s macroecononic stability, achieve single-digit inflation and reach GDP

European Times: What is your personal message to potential investors?

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Dr. Michael Gondwe: The Economist reported in 2011 that Zambia would be ninth in the world in GDp growth up to 2015, reaching an average annual growth rate of 6.9%. Zambia welcomes foreign investors and visitors. We invite you to come and partner with us in the development of our country.

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Finance

Citibank - the Global Bank in Zambia Citibank

opened

its

doors

in Zambia in 1979 to service its global clients who were

entering a new market and

wanted to work with a trusted

name. In time, Citibank has leveraged its global network

to provide superior products and

services

the

local

Zambia market while using its local presence to provide knowledge depth to global institutions and investors.

Citibank building which has recently been certified LEED (Leadership in Energy and Environmental Design) compliant, the internationally recognised building standard which assesses environmental impacts of a building project and results in reduced energy, water and waste impacts, among other benefits. It is the first building to be certified LEED compliant in Zambia.

Citibank was one of ﬁve Mandated Lead arrangers in a loan syndication of €754.60 million (US$1 billion) in 2012 for the expansion of one of the largest copper mines in the Joyce-Ann Wainaina, country, a project Managing Director that will increase the copper production of Zambia by almost 50% in the next 3 years.

and Bulk pos deposits. For all FX and investment needs, world-renowned CitiFX pulse and CitiF Velocity are just a click away giving access to 150 currency pairs.

In 2011, Citi was Joint Lead arranger and book runner for the largest local currency loan syndication of €85.17 million (ZMK605 billion) for one of the largest agricultural entities in the country. Citibank is the undisputed leader of electronic banking innovation in Zambia with award-winning payments and collections solutions such as Citidirect, Citiconnect, Citidirect Be mobile

Citibank Zambia’s global network has enabled its team to apply world-class solutions to local markets, according to the Managing Director Joyce-Ann Wainaina. With her 23 years of experience with Citibank, having worked with the bank’s operations in several countries in Africa, Joyce-Ann Wainaina attributes the success of the bank to the team she has working with her. “The staff is ﬁlled with the best ﬁnancial minds; we focus on delivering Citi’s global network and strength to the local environment and strive to develop local companies into global institutions. We are proud to be a part of the country’s growth story.” Citi has been able to export several highly skilled Zambians to work in various countries, some of whom are

currently serving across europe and africa in senior positions. With its tremendous success in the country, Citibank Zambia is also continuously re-investing in the local community through programs such as Junior Achievement, FINCA Zambia and the Global Community Day. Citibank is proud to be the recipient of the Best internet Bank in Zambia2013 award from Global Finance, The Best investment Bank in Zambia from EMEA Finance and the 2013 Award for Excellence from EuroMoney. Citibank Zambia stays true to its worldclass image and continues to focus on ‘investing in Zambia’s future’. Citibank Zambia Limited Corner, Chikwa and Nasser Roads Addis Ababa Roundabout, 10101 Lusaka Tel: + 260 211 444492/93

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New Currency Simpliﬁes Financial transactions new currency, but no change in Kwacha value Zambia’s old Kwacha currency ceased to be legal tender on June 30, 2013, but can be exchanged at the Bank of Zambia until December 31, 2015 while at the commercial banks the exercise will come to an end on June 30, 2014. Alexander Chikwanda noted, “the rebasing of the currency does not include a revaluation or devaluation of the Kwacha, which means that prices of goods and services will not change.”

The Bank of Zambiaʼs introduction of new denominations of Zambian Kwacha bank notes and new coins is simplifying all types of ﬁnancial

transactions. The currency changes, which went into eﬀect on January 1, 2013, were necessitated by sustained years of relatively low inﬂation

following years of economic reforms. The old 10,000-Kwacha note

was worth less than €2, while transactions were characterised by the use of a large number of bills. Coins were not in use at all.

the new Zambian currency comprises banknotes in six denominations: 100, 50, 20, 10, five and two Kwachas. The new coins are the one-Kwacha, the 50-Ngwee, the 10-Ngwee and the five-Ngwee. When he unveiled the new currency, Zambia’s minister of Finance Alexander Chikwanda commented, “The rebasing of the Kwacha was aimed at addressing the inflationary

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spirals which over the years caused the currency to depreciate to intolerable levels which were not cost-neutral in terms of the economy. the decision to rebase was further premised on the government’s commitment to restore the intrinsic value of our currency, as a medium of exchange, by bringing normalcy to the numeration of the local currency.”

Changes in the currency are bringing many benefits to the Zambian economy, according to Dr. michael Gondwe, Governor of the Bank of Zambia. He explains, “We formerly had Kwacha bills with many zeros, which caused inconvenience and inefficiency. Introducing the new bills and coins has simplified our understanding, use and management of the national currency through its expression in a new and smaller equivalent scale. This move has also simplified bookkeeping and increased efficiency concerning transactions, record-keeping and banking activities, for example atms. the change has also allowed the Bank of Zambia to introduce coins in the high-circulating denominations, thereby increasing durability and reducing costs as well as allowing for new services like parking metres and vending machines. most importantly, the rebasing of the Kwacha has led to a greater confidence in the national currency.”

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Finance

si 55 upgrading investment environment to ensure that accurate records on foreign-exchange transactions are maintained.”

No foreign-exchange controls

Zambiaʼs Statutory Instrument 55 (SI 55), which came into eﬀect in July 2013, illustrates the governmentʼs drive to upgrade the

Zambian private sector and combat revenue loss as well as money-laundering. SI 55 empowers the Bank of Zambia (BoZ)

to monitor inﬂows, outﬂows and international transactions. BoZ is partnering with the Zambia Development Agency and

the Zambia Revenue Authority to administer the new initiative, which includes declarations to be ﬁled by importers and exporters, people making remittance payments, and recipients of external loans.

Bank of Zambia Deputy Governor for Operations Bwalya Ngandu explains that the new instrument will monitor companies operating in Zambia, but not control them. he adds that the Central Bank has put in place an electronic monitoring system to capture foreign-exchange ﬂows and that this system will be linked to govern-

ment ministries, agencies and institutions involved in collecting revenues, including import and export duties. he says, “Zambians have been complaining about the lack of reliable and accurate information on resources generated in the country, and si 55 will address such concerns. this is an opportunity for affected players

Joe Kaunda, Zambia’s Deputy High Commissioner to south africa, notes that si 55 is not an attempt to impose foreign-exchange restrictions. He says, “the requirements in si 55 should not be misunderstood to be foreignexchange controls. These are necessary measures that you find in any country. For instance, in south africa, if you are entering the country with amounts in excess of €14,792, or US$20,000, you have to declare that you have entered with that amount. the Zambian government is not introducing foreignexchange controls, since companies operating in Zambia are still able to remit profits.” While si 55 does require new paperwork for companies in Zambia, it is expected to raise standards in the country’s investment climate overall through its controls on unscrupulous investors. Tax avoidance and capital flight by certain foreign investors in africa have cost the continent much-needed revenues and have provoked hostility among locals against FDi projects. si 55 will give the Zambian government a clear picture of cash flows involving firms active in the mining and other sectors. as Zambia’s public sector Development association Chairperson, Yusuf Dodia, says, “the implementation of si 55 has already enabled huge sums to remain in the Zambian economy.”

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ZamBia

ambitious Financial-sector reforms Bearing Fruit

Zambia has been implementing ambitious reforms in its ﬁnancial sector for many years,

particularly since the government launched the Financial Sector Development Plan in 2004. The

Plan is being led by the Bank of Zambia – the countryʼs central bank – with the involvement

of Zambiaʼs Pensions and Insurance Authority, Securities and Exchange Commission, National

Pension Scheme Authority, Bankersʼ Association of Zambia, Ministry of Finance and National

Planning, the IMF, the World Bank and other stakeholders.

The Bank of Zambia has established five priorities for reforms in the financial sector to be achieved through the Financial sector Development plan in its current phase. these are to determine the government’s appropriate role in the financial sector, to strengthen Zambia’s financial institutions and resolve any insolvency problems, to establish a formal safety net for banking and non-banking financial-services institutions, to create and enforce a world-class regulatory environment for the financial sector with the help of the imF and other international partners, and to identify ways of enhancing prudential supervision of the pensions and Insurance Authority and the Securities and Exchange Commission.

imF and World Bank partnering in reform process Zambia has been reforming its financial sector with the help of international partners. In 2002, the IMF and the World Bank jointly conducted a comprehensive study of the Zambian financial sector through the Financial Sector assessment programme (Fsap), and the Financial sector Development Committee (FsDC) was established to analyse the state of Zambia’s financial system and make recommendations concerning institutional, legal and regulatory reforms necessary for reaching the goal of establishing a

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robust, international-standard ﬁnancial-services sector in Zambia.

Boosting competition in the banking sector priorities in Zambia’s Financial sector Development plan include boosting competition in the banking sector in order to lower prices for consumers and upgrade quality. new players, including foreign financial-services providers, are welcome in Zambia. to maintain international standards as the banking sector grows, the Bank of Zambia has been upgrading the financial-sector regulatory environment and has adopted a risk-based approach to supervision. this entails closer interaction between the central bank and banks operating in Zambia. It also allows for early identification of risk as well as careful monitoring of the nature and direction of risks as they emerge. Key financial-sector legislation in Zambia includes the Banking and Financial Services Act, Chapter 387 of the Laws of Zambia; the Bank of Zambia Act, Chapter 360 of the Laws of Zambia; the prohibition and prevention of money Laundering act; the Bank of Zambia anti-money Laundering Directives; and the Bank of Zambia Corporate Governance Guidelines. in addition, the Bank of Zambia has issued risk management Guidelines to outline minimum standards to be observed by commercial banks in the area of risk management. the Bank of Zambia continues to revise the regulatory framework to ensure that it addresses any new challenges in the financial sector.

Promoting financial inclusion one of the Financial sector Development plan’s main aims is financial inclusion: bringing more Zambians into the country’s financial-services system. Today, only around 37.3% of the country’s population uses financial services, including banking services. the Bank of Zambia wants to increase that percentage to 50% by 2015. “the rationale for this objective is that it responds to the need to bring the poor into the financial system and thereby avail them of opportunities to financial access and growth,” says michael Gondwe, Governor of the Bank of Zambia.

The Governor adds, “The role that financial services play in an economy is sometimes compared to the significant role that blood plays in the human body. it should be stressed that no economy can function efficiently without good financial products and services. Zambia needs favourable financial services that will significantly contribute to the fight against poverty and reduce income inequality between the rich and the poor.” Zambia has joined the global group alliance for Financial inclusion in its efforts to bring more people into the financial system. the Financial sector Development plan also includes education initiatives, which are seen as key to achieving financial-sector inclusion. In July 2012, a National Strategy for Financial Education was officially launched by Deputy Finance Minister Miles Sampa along with Dr. John Phiri, Zambia’s minister of education, science, Vocational training and early education. this initiative sets out a framework for improving the financial education of Zambia’s population, with priority financial-education programmes to be focussed on children and youth as well as adults. the effort

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involves classes in the work place as well as training opportunities for small-scale farmers and small and medium-sized enterprises.

promoting new products and services Bringing new products and services into the market is another top goal. as Governor Gondwe points out, “some emergingmarket economies have successfully established and grown their financial systems by developing innovative financial products. these and other initiatives tell us that the challenge is to establish appropriate financial products and systems that meet the unique needs of our economy. Innovative financial products, when well managed and regulated, can be a key driver for the development of a successful financial market.”

Expanding banking network to the provinces Zambia welcomes new financial-services providers to enter the market, not just in Lusaka but also in the country’s fast-growing regions, including the ndola and Copperbelt mining districts. as Governor Gondwe puts it, “investrust Bank’s recent opening of two branches in Ndola is an example of an effort to broaden the array of financial products and services available to corporate customers as well as small and medium-sized companies operating in the provinces. our growing agricultural and

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industrial activities require modern financial services in order to thrive, and we are seeing growing demand for goods and services geared to sub-contractors and suppliers to the mining industry. This is just one example of Zambia’s need for more financial-services providers beyond Lusaka.” improving access to credit in the provinces is another priority in Zambia’s Financial sector Development plan. at the launch of a mpongwe branch of the national savings and Credit Bank Zambia Limited (natsaVe), Governor Gondwe commented, “the opening of this branch is expected to spur economic growth and contribute to the ease of access to financial services, which has for a long time been a hindrance to economic development in this district. We expect that the opening of this branch will unlock the district’s vast economic potential. the Bank of Zambia attaches great importance to initiatives that seek to enhance the provision of financial services to the underserved sectors of the economy. our Financial sector Development plan seeks to address various weaknesses in the Zambian financial system, among them being low financial intermediation and limited access to credit.”

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Finance

The Governor also comments on the need for more financial services in mpongwe and in masaiti, Lufwanyama (where NETSAVE opened a branch in July) and other locations to meet growing demand from farmers and entrepreneurs. he says, “i encourage other players in the banking sector to emulate natsaVe and set up branches in other unbanked districts throughout the country.” The Governor stresses that expanding branch networks to the provinces should also involve offering new products and services tailored to meet local customers’ demands. he says, “An important element for effective financial-services provision is to complement branch expansion with increased product innovation. the ability to offer different types of products to suit the local needs of the mpongwe district will go a long way in enhancing access to financial services in this area. The Bank of Zambia is determined to facilitate viable branch expansion, and the introduction of new and innovative financial products, to tap savings and channel these savings to investment.” he adds that the Bank of Zambia welcomes the chance to partner with banks and other financial-services providers in their efforts to expand their service portfolios.

Low insurance penetration Zambia is also looking for more investment in insurance services. Minister of Finance Alexander Chikwanda ofﬁcially launched “Zambia Insurance Week” in October 2013 in an effort to encourage more Zambians to obtain insurance coverage. also involved in supporting the event were the pensions and insurance authority, Finmark trust, Financial sector Deepening Zambia, and the insurance Brokers association of Zambia. Only around 2% of Zambia’s population now has insurance, which means that Zambia has one of the region’s lowest penetration levels for insurance services. the Zambian insurance market deﬁnitely has growth potential. One issue is cultural; Zambians traditionally care for their families, including extended families, without outside support. As Christabel Banda, Executive Director of IAZ insurance, points out, “the majority of Zambians are paying for funerals, medical treatments and asset replacements from their own resources. this is a serious setback

534

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for most Zambians, who in some cases may take months to recover from such unfortunate occurrences. the Zambian public is clearly losing millions of kwachas every month as a direct result of not taking out insurance. our friends in the developed countries consider insurance as a necessary tool for their wealth preservation, be it at personal or business level.”

praise from international observers international observers have been praising Zambia’s progress in upgrading its financial sector. Finance Minister Alexander Chikwanda and Governor Michael Gondwe were both nominated for “ai african investment and Business Leader” awards this year in recognition of their commitment to driving the financial-sector reform process forward. Following a visit to Zambia in September this year, John Wakeman-Linn, the head of the imF team accessing Zambia’s financial-sector reforms, notes the significant progress the country has made in upgrading its financial system. he comments, “the Zambian economy has continued to expand at a rapid pace, although experiencing pressures in some areas. overall output growth is projected at 6% in 2013, with the decline from 7.2% growth in 2012 largely due to lower agricultural production. Copper production has continued to increase strongly despite lower prices on the international market, and the economy has also benefitted from high levels of foreign direct investment and rapid growth in non-traditional exports. Moreover, at 7.1% year-on-year in the latest data, inflation has remained broadly at last year’s level.” the imF delegation leader notes that Zambia’s main challenge this year is to cope with a budget deficit. He says, “The budget deficit for the year is now expected to reach about 8.5% of GDP. The IMF mission very much welcomes the authorities’ plans to comprehensively address fiscal challenges in the budget for 2014.” the imF delegation points out that the Zambian government is stepping up its revenue collection and tightening its expenditure controls to bring the budget deficit down to 5% next year. John Wakeman-Linn says, “Ensuring that this budget is adhered to will be important for macroeconomic stability and hence the foundation that will support continued strong growth of the Zambian economy.” thanks to dedicated leadership and a comprehensive reform strategy, Zambia’s financial sector is definitely on the right track.

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ZamBia

KPMG Zambia KPMG Zambia stays at the forefront of audit, tax

and advisory services in Zambia by having its global resources available locally. It provides audit

services through KPMG Chartered Accountants (a partnership) and tax and advisory services through KPMG Zambia Limited.

Jason Kazilimani Jr, CEO and Senior Partner

KPMG has been a trusted partner in Zambia since 1954. CEO and Senior Partner Jason Kazilimani Jr’s two decades of experience within KPMG gives him the market knowledge to adapt quickly. “there are two types of people in the world; the quick and the dead,” says Kazilimani, “If you want to succeed, you must move fast.” KPMG in Zambia maintains the proper expertise amongst its staff to adapt to the market quickly. Kazilimani explains that an Infrastructure Expert from KPMG’s London Office was brought in because of the impending developments in Zambian road and railway infrastructure. The skill and efficiency is noticed and appreciated by the Zambian Business community. In manufacturing, mining, retail, and finance, KPMG Zambia has a significant number of clients. When recruiting staff, i ask myself if the person can do the job better than me. if they can, they have the job, says Ceo Kazilimani. This stress on value addition makes KPMG the ideal partner in the quickly expanding Zambian Market. KPMG Zambia First Floor, Elunda 2, Addis Ababa Roundabout PO Box 31282, Lusaka Tel: +260 211 37 2900 www.kpmg.com

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Finance

Best sovereign Bond in europe, the middle east and africa Kwacha Banknotes

ratings services Fitch and standard & poor’s both rated the bond B+. Explaining its choice, Fitch cited Zambia’s political and macroeconomic stability, decade of growth above 6%, on-going policy reforms, vibrant copper-mining sector and a track record of ﬁscal discipline under IMF surveillance. another plus for the bond – and another attraction for foreign investors – is the imF/World Bank Debt sustainability assessment of Zambia, which rates the country’s debt risk as low.

Signiﬁcant injections of capital into infrastructure projects

The outstanding success of Zambiaʼs ﬁrst Eurobond, oﬀered in September 2012, has drawn

even more investor attention to the country. The €554.4 million, 10-year bond priced at 5.62%

was oversubscribed a spectacular 15 times – the biggest order book for an inaugural sovereign

bond in sub-Saharan Africa – and positioned Zambia as an African economic trendsetter. On

top of that, Zambiaʼs Eurobond recently was

named “Best Sovereign Bond in Europe, the Middle East and Africa” by the Global Trade Review.

Barclays Bank Zambia and Deutsche Bank were the joint managers for the debute bond issue. Barclays Bank Zambia’s managing Director, saviour Chibiya, points out that the eurobond’s success has focused the world’s attention to Zambia’s immense investment potential.

in september this year, Zambia’s Deputy minister of Finance, Keith Mukata, reported to Parliament on the progress being made since the bond was issued. he said, “the debt [on the bond] will be repaid as a lump sum at the end of 10 years. The only funds that are being paid now are interest payments that will continue on a semi-annual basis for the life of the bond, to 2022.” The bond has injected needed ﬁnancing into Zambia’s infrastructure. according to the Deputy minister, around €166.3 million from the bond has been allocated for the Kafue Gorge hydropower project and for ZESCO’s powerdistribution network. Another €229.1 million has been earmarked for road-infrastructure improvements, including the construction of the Kitwe-Chingola dual carriageway, while around €88.7 million will go towards an overhaul of Zambia’s railway network; Zambia railways Limited has already awarded tenders. The Deputy Minister also reported that €18.4 million from the bond will ﬁnance projects at University Teaching Hospital in Lusaka as well as at hospitals in Ndola, Kitwe and Livingstone. meanwhile, the Development Bank of Zambia has received €14.7 million from the bond for a credit line for small and medium-sized enterprises. As the eurobond issue shows, Zambia has implemented sound, innovative strategies for ensuring the country’s sustainable development.

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ZamBia

home affairs

“We work to make sure that everyone who does business in Zambia is respected and protected by the law.” Hon. Edgar Lungu, former Minister of Home Aﬀairs

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home affairs

need for security Honourable Edgar Lungu, former Minister

of Home Aﬀairs and current Minister of

Defense, explains the need for security and understanding in investment.

the police force and the Department of immigration. We make information as readily available as possible to make sure that we coexist. Where our laws and cultures may differ, there needs to be a clear understanding of where the differences lie. the police are charged with protecting all of our guests within the country. how can we attract investment when there is no certainty or clarity of the law and its application? Therefore, we work to make sure that everyone who does business in Zambia is respected and protected by the law.

“We make sure that we maintain order and stability throughout the country. ”

European Times: In relation to attracting outside investment, how does the Ministry of Home Affairs operate? Edgar Lungu: We make sure that everyone who does business in Zambia can rest assured that they will awake with all of their property and affairs still in place. We make sure that we maintain order and stability throughout the country. European Times: There are several departments of the government of the Republic of Zambia that fall under the Ministry of Home Affairs. Which departments are most important to potential investors? Edgar Lungu: the departments that are most important to know and understand for newcomers to Zambia are

the Department of immigration works to maintain security within the country, knowing the individuals as they come to our country. We facilitate the legal entry of every individual who comes to the country to add value. We have updated information of the Zambian immigration process online and in literature to make sure that there are clear instructions for everyone who looks toward Zambia for investment. Zambia is centrally located in the middle of the saDC region. this also makes it very important for us to keep track of movement between our 8 border countries to provide safety for our population and guests. European Times: What do you see as the key to healthy, long-lasting ﬁnancial partnerships in Zambia? Edgar Lungu: our ministry ensures that every comfort that foreign investors are accustomed to outside of Zambia will be received while they are in Zambia. how can we expect to move forward, as Zambians, without partnerships? Therefore, we only ask our global partners for mutual understanding and tolerance for one another, moving forward to beneﬁt Zambia as well as the business interests of our partners.

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master ZamBia reGio

Global security-services provider G4S Leads the Way in Zambia Global security-services specialist G4S has been active in Zambia since 1968 and has established a strong reputation as the local market leader in the provision of security solutions.

G4S Zambia has a national operational footprint with 13 branches in the country and employs over 5,000 people. the company prides itself in its ability to provide security solutions that mitigate even the most challenging security threats, using cutting-edge security solutions and innovations combined with traditional methods. they provide security services to a diverse client base in Zambia that includes multinational corporates and retailers, non-governmental organisations, diplomatic missions and copper mining companies. While ‘manned security’ remains their core product they also provide cash solutions and security system services. under cash solutions they provide a fully outsourced cash centre management, ATM first line maintenance, cash processing, and cash and valuables in transit. Their expertise in security systems includes closed circuit television (CCtV), access/egress control systems, intruder, panic and volumetric alarms. the company places a high priority on staff training in all aspects of the business, and prides itself in its ability to provide enhanced levels of training for its employees that is structured around specific market and clients’ needs. By being able to provide people with such diversity in skills, G4S sustains their position as the foremost security service provider in Zambia. Country Managing Director Stewart Scott explains that another advantage G4S Zambia enjoys, is its Board of Directors, “Our board has a strong grounding in the financial

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Stewart Scott, Country Managing Director

sector, with significant experience in the private and public sectors. their assistance in navigating through the Zambian business environment is immeasurable, and we credit much of our growth and success to them.” G4S Zambia is looking forward to continued expansion as the country’s economy grows. Defining his company’s competitive edge, Stewart Scott explains, “We are technologically innovative, responsive to market and clients’ needs and we believe that our people are our single best asset. We endeavour wherever possible to employ and retain the best people and we are firm believers in the need to sustainably reinvest in the communities in which we operate. We believe that to maintain the best product or service you must be willing to invest in the best across the business.” For any investor or company operating in Zambia, G4S is definitely the security-services provider of choice. G4S Secure Solutions Zambia Limited Tel: +260 211 24 4832 sales@zm.g4s.com - www.g4s.com

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• Endless Opportunities • Food-Processing a Priority Sector for Investment

agriculture & Livestock

“In Zambia it is never an issue of why to invest; it is a question of where to invest.” Hon. Robert Sichinga, Minister of Agriculture and Livestock

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ZamBia

endless opportunities the key to good nutrition for Zambia is making sure that there is good food. Alongside agricultural diversification, we have also worked to improve the health of livestock. For instance, we have over 3 million cattle, and we are taking creative steps to make sure that they are healthy and breeding is managed well to ensure strong supply in the future. European Times: What measures is the ministry taking to ensure this growth? Robert Sichinga: We are taking measures to increase the accessibility of credit to small to medium-scale (sms) farmers so they can do more to cultivate. We are also working to educate sms farmers on methods that will increase output. We look to give exposure to those projects that are looking for further investment to make sure that our local investors and international partners are aware of the plenteous opportunities that are offered throughout the country. European Times: What are some of the investment opportunities in Zambia’s agricultural sector? Robert Sichinga: Zambia possesses 40% of the SADC region’s water resources, however we are still a net importer of fish. Zambia has been working to develop fish farms to utilise these resources. the investment opportunities in sms farmer co-operatives is numerous in every facet of the sector. in addition, major local players such as Zambeef Plc. are also working to expand throughout the continent. Honorable Minister Robert Sichinga, Minister

of Agriculture and Livestock, discusses his goals for the sector.

European Times: What are the primary objectives of the Ministry of Agriculture and Livestock? Robert Sichinga: For a very long time we have been a mono-crop country, producing mostly maize. Our focus now is to diversify. We are producing crops such as wheat, cassava, rice, and soya beans. in addition, we are cultivating our tobacco industry, which can also help to grow the economy.

European Times: As the SADC region has seen tremendous growth over the last decade, why should the readers of The European Times look speciﬁcally to Zambia to invest in agriculture and livestock? Robert Sichinga: in Zambia it is never an issue of why to invest; it is a question of where to invest. the opportunities are truly endless. there is no other country where the only hurdle to investment in agriculture and livestock is choosing an area and product. We have the land, we have the water resources and we are very welcoming to new investors. We are looking for those individuals who can add value to the rich resources and business climate that is provided for the investor.

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agriculture & Livestock

Food-processing a priority sector for investment © Djembe-Dreamstime.com

Food processing represents an outstanding investment opportunity in Zambia thanks to vast natural resources, extensive arable land, ample water, the country’s long agricultural tradition, new investment incentives and many joint-venture options.

only one-quarter of potential currently exploited roseta mwape, Ceo of the Zambia association of manufacturers, says that in spite of its strong performance, Zambia’s food-processing industry has achieved only around one-quarter of its capacity and potential so far. She explains, “there are opportunities for more investments in most subsectors of Zambia’s food-processing industry, for both smallscale and large-scale projects.”

The food-processing industry has long been Zambiaʼs most productive manufacturing activity, accounting for over 60% of all manufacturing production in the country and contributing around 11% of Zambiaʼs GDP.

S A R O

high-potential sub-sectors include growing and processing oil seeds; downstream processing of meat and dairy products; producing palm oil; manufacturing soy-based food products; milling wheat, rice and maize to produce flour; producing juices, carbonated drinks, beer and other beverages; processing groundnuts; producing ketchup and other tomato-based products; roasting and grinding coffee beans; processing cassava, pineapples, mangos and sugar cane; producing dried fruit;

Equipment

Customers

■

■ ■ ■ ■

Farm Tractors Trailers and Bowsers, Planters, Ploughs, Harrows etc Generating Sets, for Standby and Continuous duty Pumps for Water and Sewerage

■ ■ ■

Farmers Mining and Exploration Companies Water Utilities Government Departments

Countries: We serve Zambia, Congo DRC, Angola and Malawi SARO AGRO INDUSTRIAL LTD - QUALITY & SERVICE HEAD OFFICE & LUSAKA MAIN BRANCH Plot No. 5284 Buyantanshi Road, (off Lumumba Rd.), Heavy Industrial Area, P O Box 35168, LUSAKA, ZAMBIA Tel: +260 211 241477, +260 211 845675, 0965000051, FAX: +260 211 846224 & 846225, E-Mail: saro@saroagri.co.zm

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and processing fish to take advantage of Zambia’s vast fish resources. other investment opportunities include producing tinned foods, confectionary, bread products, honey and cheeses.

incentives for investors as the Zambia Development agency points out, the government has identified the food-processing industry as a priority sector in Zambia and has created a number of incentives for investors in the industry. these include zero corporate tax for five years the first five years a company makes profits and reduced corporate taxes for five years thereafter; no taxes on dividends for five years; 100% allowances on capital expenditures for equipment and machinery; no import duties on equipment and machinery for five years; and no Vat on imported materials for projects producing for export. In just one example of potential food-processing projects in Zambia, Comesa regional investment agency (RIA) is promoting a Greenﬁeld project to build pineapple-canning factories in north-western Zambia. the country’s mwinilunga district has been ranked Zambia’s best location for pineapple production, and in the 1990s a pineapple-processing facility in the area produced around 11,368 tonnes from around 1,421 hectares of pineapple plantations. the facility was later closed down. the planned new plant is expected to produce around 12,000 tonnes of processed pineapple per year. Zambia already exports many food products, particularly cane sugar, cereals, maize meal, flour, canned foods and dried vegetables. Zambia’s private sector Development association reports that Zambia is self-sufficient in most unprocessed food products but urgently needs more investment to help reduce its high expenditures for importing processed foods, mainly from south africa. the association notes that the Zambian food-processing sector needs better infrastructure, reduced energy costs and even more government support in order to reach its potential and be competitive regionally. as many observers point out, given adequate investment in food-processing projects, Zambia can add value to its food resources, cut its import bill, create new jobs, feed its people and eventually become the “food basket” of the region.

a million Dollar opportunity for seafood in the african savannah There are moments when fate, circumstance and

bullheaded determination create the right mix for a successful business venture. When Aimee, a Congolese national, met and married Henk Thyssen,

a Dutchman who has spent more than two decades running a trucking business in Ndola, Henk Thyssen

couldnʼt have known that soon trucking would take a backseat to a business initiated by his wife. aimee realised that high quality seafood was difﬁcult to come by in landlocked Zambia, so she had henk bring in truckloads of deep fresh frozen seafood from namibia, south africa, Tanzania and Mozambique. From direct deliveries to various destinations, seafood Basket has grown, in ﬁve years, to a thriving business supplying major institutional and retail customers throughout the Copperbelt and other provinces.

Henk Thyssen and Aimee

With a diverse and continually increasing clientele, the couple sees unlimited potential for growth on both sides of the border, but recognise that investment partnerships are the key to realising the business’s full potential. “We’re trying to keep up with demand, but the problem we have is storage,” Aimee explains. Securing funding for a 2,500 square-meter cold storage facility would allow them to continue on the sharp growth trajectory of the last few years. “it’s food – it’s something that people need on a daily business. seafood in Zambia is a novelty to Zambians; there’s a niche to be ﬁlled.” Seafood Basket President Avenue, Town center, Ndola Tel: +260 21 261 3778 sales@seafoodbasket.com.zm, www.seafoodbasket.net

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agriculture & Livestock

Quality Local partner in agriculture and Construction sectors

Zamcapitol Enterprises Ltd. (ZEL), a competitive state-owned

enterprise run like a private corporation, has been providing top-quality services and products since 1970. Since the 1980s, the company has focussed on the agriculture sector and is now

one of the countryʼs leading manufacturers of food-processing, water-services,

appliance-manufacturing,

machine-building equipment.

General manager nobbie m. simbeye says, “our clients include individual farmers, rural communities, and institutions like natsave Bank, through which we support farmers taking out loans to purchase our equipment.” Zamcapitol produces a wide range of machinery and equipment for specialised agricultural purposes, including milling equipment which can process around 900 kg of maize per hour. Zamcapitol imports engines and motors from india and manufactures products specifically designed for the Zambian market; these products are also used throughout the region, particularly in angola. Zamcapitol continues to diversify its activities and product portfolio. Nobbie M. Simbeye explains, “We have branched out into manufacturing windmills for irrigation purposes.

engineering

and

these windmills can be connected to hand pumps, so that even when there is no wind, users can still pump water from underground. in addition, we recently began to supply solar panels which we import from China and assemble here in Zambia. Government institutions and rural health centres are the main clients for these panels.” Zamcapitol is also active in the property market through renting out residential and commercial properties in premium rural locations on long leases.

Focus on quality the company is well known for its focus on quality. nobbie m. simbeye points out, “We are not here just to make proﬁts. We are here to help Zambia develop further, especially in rural areas. Zamcapitol adds value to

Zambia’s agriculture sector and plays a major role in the country’s drive to ﬁght poverty.” Zamcapitol will continue to serve as Zambia’s premier provider of high-quality engineering services concerning manufacturing, product research and development. to reach its ambitious goals, which include expanding in the construction industry, the company is currently looking for international partnerships. “We are not only seeking capital investment but also knowledge and technology-sharing, for example in fast-track building techniques,” nobbie m. simbeye says. Zamcapitol offers in-depth knowledge of the Zambian market and a strong track record of successful products and projects. Zamcapitol is ready to serve as the ideal local partner for international investors and companies interested in Zambia’s fast-growing agriculture and construction sectors. nobbie m. simbeye concludes, “now is the time to come to Zambia and grasp opportunities.”

Zamcapitol Enterprises Limited Plot 5120, Luanshya Road Lusaka Tel: +260 211 22 6265 zamcapitol@zamnet.zm

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ZamBia sector

Livestock production Expanding Rapidly Beef Cattle Kafuie Zambia

Zambeef plc Fast-Growing agribusiness producer helps Build out africa’s Food supply Chain With demand for meat products perennially

outstripping supply and parastatal ranches and

farms playing a diminishing role in the food supply chain, up and coming private-sector

agribusinesses such as Zambeef Plc are playing an ever larger role in food production and distribution © Edward Westmacott | Dreamstime.com

in Zambia and across Africa.

Zambiaʼs livestock industry continues to grow. An October 2013 announcement by the

Zambian parliament noted that the countryʼs livestock sector is worth over €1 billion and

accounts for around 35% of the agriculture sectorʼs share of Zambiaʼs GDP.

moreover, Zambia’s production of beef products is growing by around 7% per year while the production of dairy products is growing by around 10% per year and the country’s poultry industry has doubled over the past 10 years. as the Zambia Development agency points out, Zambia’s agriculture sector in general and livestock production in particular offer vast opportunities for investors. Zambia’s location bordered by eight countries and its membership in Comesa and saDC add to its advantages. in addition, Zambia enjoys special access to the eu, us, China and Japan markets thanks to various initiatives. Global investors are increasingly targeting Zambia’s livestock industry. the Bank of new York mellon Corporation recently sold american depositary receipts for three Zambian companies, one of which was Zambeef, the leading Zambian beef-producer. mary Gormley, the bank’s London-based managing Director of depositary receipts for sub-saharan Africa, explains, “Investors recognise the fact that Africa is really the last substantial continent to offer genuine frontier markets with very real growth prospects.”

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From humble beginnings, Zambeef has quickly grown to be the largest beef producer in Zambia. Along the way, it has expanded its product line to include poultry, eggs, milk and dairy products, vegetable oil, and chicken feed, among others, enabling it to qualify for listings on the London and Lusaka stock exchanges. In addition to expanding its line of agribusiness products, Zambeef has focussed on building out its supply and distribution chain, a key factor in realising its ambition to expand regionally. Operating 90 retail outlets throughout Zambia, Zambeef has a strategically important partnership with the shoprite supermarket chain. the company recently entered into a joint venture with Shoprite to expand into Ghana and Nigeria, where the markets are signiﬁcantly larger. as Ceo Francis Grogan commented, “some would call Zambia landlocked, we consider it to be ‘landlinked’. With our central location in africa, we will be able to be a supplier of food products throughout the entire region.” Zambeef Products PLC Plot 4970, Manda Road, Industrial Area, Lusaka Tel: +260 211 36 9000 www.zambeefplc.com

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• Energy Diversification Powering the Economy • Vast Unexploited Energy Potential • North-Western Province, the New Copperbelt • Powering the Future: Investing in Energy Infrastructure

energy & mining

“Our resources and location give Zambia the ability to be a power hub for the region.” Hon. Chris Yaluma, Minister of Mines, Energy, and Water development

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Energy Diversiﬁcation powering the economy Zambiaʼs primary export being copper, the country is vulnerable

to ﬂuctuations in world commodity prices. The Ministry of Mines, Energy, and Water Development sees diversiﬁcation as key to the

countryʼs continued development. As Minister of Mines, Energy, and Water Honourable Chris Yaluma looks towards Zambiaʼs

future prosperity from its natural resources. “Of course we

have the largest deposits of copper in the continent, this does

not mean it should be our sole focus in terms of mining and processing. With investment in mining diversiﬁcation, the eﬀect

copper price fluctuations have on Zambiaʼs economy can be mitigated,” says Minister Yaluma. the ministry of mines, energy, and Water Development has focussed on extraction of other precious minerals, including gold, iron, zinc, silver, and emeralds. “We have seen promising developments in emerald mining in recent years. With new policies in place to ensure continuous profit and benefits to the Zambian economy through emeralds, Zambia is open to ethical and innovative entities interested in emerald mining.” one cannot speak of mining in Zambia however, without understanding the energy infrastructure to support it. With the mining sector accounting for 50% of energy consumption in Zambia with a consistently increasing consumer demand, energy provision must be strengthened. “With Zambia possessing over 40% of the sub-regions above ground water

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supply, signiﬁcant milestones have been achieved in harnessing energy capacity,” explains Minister Yaluma. Currently, the country’s energy supplies come from hydroelectricity (over 99%). As Zambia explores new ways to provide power in the face of increased demand, there are arrangements to diversify into geothermal, fossil fuel, and solar energy. the demand for energy in Zambia is continually increasing, there was an increase in demand from 1,100 MW to 1,600 MW in just 8 years. The need for increased capacity comes as a result of the economic growth witnessed in all sectors of the economy. several projects are close to completion such as the Kariba River Dam and Itezhi-Tezhi that will go far in reducing the current electricity supply shortage. “our resources and location give Zambia the ability to be a power hub for the

Chris Yaluma, Minister of Mines, Energy, and Water development

region.” minister Yaluma continues, “We will ensure this growth by diversiﬁcation and investment by partners from around the globe.” minister Yaluma stresses the value of strategic international partnerships to strengthen Zambia’s generation capacity and expertise. With feasibility studies underway, there is a need for Foreign Direct investment to harness the power that Zambia is in an excellent position to distribute throughout the saDC region, and eventually, throughout all of africa.

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energy & mining

Vast Unexploited energy potential

Zambiaʼs energy sector is ready to take oﬀ. While Zambia imports its petroleum, it has extensive other energy resources which include coal, biomass, hydro, wind and solar power, all far from completely exploited.

Demand for energy in Zambia has been growing along with the country’s rapidly developing GDp, with demand for electricity alone increasing at the rate of around 3% per year for the past several years. peak demand for electricity in Zambia rose from 1,100 MW in 2001 to 1,600 MW in 2009, almost reaching the country’s installed generation capacity of 1,970 MW. Growth in demand is estimated to be between 150 MW and 200 MW per annum.

rising demand for energy in Zambia parallels growing energy demand throughout southern africa, and Zambia has the potential not only to supply its own energy but also to export energy to neighbouring countries. according to Zambia’s ministry of energy and Water Development, electricity consumption in the southern african power pool (sapp) totalled around 50,000 MW per annum in 2010, almost reaching the sapp’s installed capacity of 55,000 MW, and demand is growing by an average 5% per year,

with regional demand likely to reach 80,000 MW by 2015.

strong commitment from the government for energy development at a meeting in new York in September 2013, Emmanuel Chenda, Zambia’s minister of Commerce, trade and industry, highlighted the importance of energy investment for Zambia. he pointed out, “the

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sector

many projects the Zambian government has launched to promote industrialisation and job creation will not materialise without huge investment in the energy sector. Clearly, we have no choice but to focus on attracting investment from both the private and public sectors, including public-private partnerships. Without energy, we will not be able to manufacture anything. Without energy, we will not be able to industrialise.” he added that significant revenues from Zambia’s successful first eurobond will be channelled into the energy sector. he also noted that the government particularly wants to see more investment in renewable energies.

Diverse investment opportunities as the Zambia Development agency points out, Zambia’s energy sector offers exceptional investment potential in many areas, including electricity generation, petroleum processing and distribution, coal mining and processing, and renewable energies. Zambia now has only three main electricity companies: the public utility ZesCo, the Copperbelt energy Corporation (CeC) and the Lusemfwa electricity Company. the Zambian government has now earmarked the energy sector as one of its priority sectors for investment, and it is actively seeking independent powerproducers and other energy investors.

petroleum demand growing by 40% per year Petroleum, which supplies around 9% of Zambia’s energy use, is imported as crude oil through the taZama pipeline, which

is jointly owned by the Zambian and Tanzanian governments, with Zambia holding a 67% share. The oil is refined at the government-owned indeni petroleum Refinery in Ndola. Demand for petroleum products in Zambia now totals around 52 million litres per month and is growing at the rate of around 40% per year. according to the Zambia Development agency, investment opportunities in petroleum include both upstream and downstream projects. Zambia’s Luangwa Rift valley, mid-Zambezi valley, and okavango and north Luangwa basins are considered to have considerable potential oil and gas reserves, while downstream opportunities include building storage facilities. the government is seeking a strategic partner to build a 50 million-litre petroleum terminal in Lusaka on a buildoperate-transfer basis. Coal is another growth segment in the energy sector. Zambia has an estimated 80 million tonnes of coal deposits with many probable reserves waiting to be explored. Current demand for coal in Zambia is around 240,000 tonnes per year and is set to rise as major mining projects go into production. Zambia currently has only two coal mines and no coal-fired power plants. Coal could become a major source of power generation for Zambia and for its export markets.

emphasis on hydropower and other renewables Zambia has significant renewable-energy resources yet efforts to harness these resources have been minimal so far. hydropower has particularly strong prospects. While hydropower is Zambia’s main source for electricity generation, there has been little investment in increasing

the country’s hydropower-generation capacity for the past 30 years, even though Zambia is estimated to have around 40% of the water resources in the saDC region. in fact, Zambia has an estimated 6,000 MW of unexploited hydropower potential. in addition to large hydropower plants, micro-hydro plants offer strong growth prospects in Zambia, particularly in rural areas. Concerning solar energy, Zambia has an average 2,001 to 3,000 hours of sunshine per year but solar-energy penetration has remained relatively low due to high initial costs. the World Bank is currently supporting the development of solar energy in Zambia through ﬁnancing solar panels, mainly for facilities providing healthcare and social services. investment opportunities in solar energy include local production and sales of solar panels and other components for individual households as well as companies and other organisations. as for wind power, studies show that Zambia does not receive adequate and consistent wind for electricity generation but that the country offers excellent potential for windmills to pump water for household use and irrigation, particularly in the western part of the country. Geothermal energy is another growth segment. Zambia has more than 80 hot springs and around 35 of them have been rated suitable for power-generation. Zambia now has only one small geothermal plant (at Kapisya hot springs) and it dates from the 1980s. thanks to its strong agriculture sector, Zambia has excellent potential to produce bio fuels, for

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Energy & Mining

example from jatropha and molasses. this energy sub-sector is at the very early stages in Zambia and offers strong growth prospects. the government is creating new incentives for investors in bio fuels production on top of incentives already available for energy projects.

incentives for investment in energy the Zambian government has designated the energy industry overall as a priority investment sector, and many new incentives are now available to energy investors. Companies building and operating power plants in Zambia qualify for tax concessions which include zero tax on dividends for five years from the first year dividends are declared; zero tax on profits from the first year profits are made and reduced taxes for an additional five years; zero import duties on raw materials, capital goods, machinery and equipment for energy projects for five years; and deferred Vat on machinery and

Solar system in Eastern Province in the village of Sinda. Project by Powergen Renewable Energy and Zamsolar

equipment, including trucks and specialised motor vehicles. in addition, income earned by companies in the energy sector in

3,500 3,000 2,500 2,000 1,500 1,000 500 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Installed Capacity (MW) Source: Ministry of Energy and Water Development (2010)

Peak Demand(MW)

the first year of their listings on the Lusaka Stock Exchange qualifies for a 2% discount on the applicable company tax rate, and companies with Zambians making up at least one third of their shareholders qualify for a 7% discount. Investors can also benefit from a 10% allowance on capital expenditures incurred for the construction or improvement of industrial facilities, and foreign-exchange losses incurred through loans for the construction of industrial facilities are tax-deductible. Losses can be carried forward for five years and several tax and customs duties concerning Vat are also available. such incentives, combined with significant unexploited resources and rapidly increasing local and regional demand, have positioned Zambia as one of the world’s most exciting targets for energy investors today.

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solar power’s potential

to enhance Lives

For millions of Zambiaʼs rural residents, a

lack of access to electricity creates a litany of

daily challenges. From children who canʼt do

schoolwork in the evenings, to family providers that direct a large portion of their meagre earnings toward kerosene, candles and other alternative forms of lighting, electricity access has a profound impact on daily life.

Having identified access to electricity as a key metric for poverty-reduction, Zambia’s government has endeavoured to strengthen policies and institutions to advance rural electrification, and established the Rural Electrification Authority (REA) in 2003. While rural electrification currently stands at just 3.1% according to the World Bank, Zambian authorities are targeting a long-term rural household electrification rate of 66% (90% in urban areas, 50% in rural). Due to the high cost of grid extension projects, one of the most viable strategies for achieving this goal is solar power. With abundant sunshine measuring between 2,000 and 3,000 hours annually, Zambia is in a unique position to be able to harness the sun’s power, as opposed to countries like the netherlands, with less sunshine per annum but thriving solar power sectors. although Zambia’s solar sector is still in its infancy, leaders in both the public and private sectors are beginning to recognise the vast potential of solar to improve lives. muhanya solar, operational since 2005, is one of the contractors working with both the rea and international nGos to successfully implement a wide range of solar projects, from mini-grids to solar water pumps and household systems. Geoffrey Kaila, Managing Director, is passionate about increasing awareness for solar technologies. “i want people to become aware that there are cleaner sources of energy as opposed to the traditional sources we are currently using. if more people are aware, it will improve lives and our economy.” Yona miti, a father of four from Chipata, bought a solar light in 2012. A farmer living on less than €1.5per day, Miti used

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to spend almost €2 a week on candles to light his home. He’s now able to purchase meat for his family to improve their diets, and notes the impact solar has had on study habits. “Using candles during studying is so expensive that my child would study during the day so that we didn’t have to spend a lot of money on candles. now, my child can study at night.” For people like Yona miti, solar has made all the difference. For millions more, it’s only a matter of time. Sponsored by:

Muhanya Solar

Plot No 7928 Chozi Road, Opposite Mikalile Shop PO Box 297, Northmead, Lusaka Tel: +260 975 998340, info@muhanyasolar.com

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sector energy & mining

north-Western province, the new Copperbelt Zambiaʼs Copperbelt region has

long been known for its vast minerals resources. Now Zambia

is developing the mining and other

resources of its North-Western Province, which has been dubbed “The

New

Copperbelt”.

The

province contains the Lumwana copper

deposits,

ranked

among the worldʼs richest. The

North-Western Province is now one of the fastest-growing areas in Zambia.

Kansanshi Mine

Solwezi, the provincial capital, has grown from a sleepy rural settlement into a dynamic, rapidly expanding economic centre which is attracting signiﬁcant local and international investment. some of Zambia’s biggest mining projects are located in the area, including the Kansanshi Mine, owned by First Quantum minerals (FQm), and Barrick Gold’s Lumwana mining Company. FQm’s trident mining project is currently being developed and has given the local economy an additional boost.

mathias mutupa, president, points out that the mining industry alone has created 3,000 new jobs and has helped to improve the standard of living of local residents. he says, “When you look at the historical background of the north-Western province, it was considered lacking necessary skills as well as adequate education, healthcare and other social services. over the past few years, however, we have seen remarkable improvement in living conditions and social services along with an inﬂux of new small and medium-sized enterprises.”

Signiﬁcant improvements in services, infrastructure

Large mining companies in the area have contributed to these improvements through their corporate social responsibility projects, which have included improving hospitals and building new healthcare facilities and schools. the Zambian government has made major

the north-Western Chamber of Commerce and industry serves the local private sector and works to ensure the province’s sustainable growth.

investments in the province’s transport infrastructure, and the national road Fund agency has several projects in the works, including an upgrade of the 600-km Mutanda-to-Chavuma road and other road and bridge construction and rehabilitation. While it is known mainly for its mining activities, the north-Western province is also developing its agriculture, tourism, information and communication technology, energy and other sectors. mathias mutupa says, “it is obvious that economic activities such as farming have improved tremendously in the north-Western province because of the number of people coming into the province who need to be fed. as the local chamber of commerce, we are gearing up to see how we can best harness some of this money coming from the mines and in turn create further employment.”

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Copperbelt energy Corporation A company that works together succeeds together, thatʼs the running belief inside Copperbelt Energy Corporation PLC (CEC), Zambiaʼs ﬁrst private power

supply company. With its focus on “providing reliable energy and

high-quality services” to meet

the demands of their clientele, the company is continuously improving

Zambiaʼs

supply industry.

power

today, CeC is a leading player in energy in southern africa and has expanded into Nigeria where it will shortly take over distribution of electricity in the federal capital region of abuja. the company is also in talks on expanding, developing and managing power infrastructure in Freetown, sierra Leone. So, how did CEC get to where it is today? through the dedication, foresight, and expertise of the people working at and managing the business for it to provide a ﬁrst-class service.

CeC was formed as a result of the privatisation policies of the government of the republic of Zambia beginning in the early 90s. Acquiring CEC out of this process was a move the Executive Chairman, hanson sindowe, is happy he and his partners made. the company’s mission has remained the same – to “provide reliable energy and high quality services” to meet the demands of their clientele. this clientele is based mainly in the Copperbelt region, meaning CeC is the energy provider entrusted to ensure the mining industry is powered for uninterrupted productivity and growth. over the years, CeC has added closely linked services to its business, most notably telecommunications. In 2009 and 2011 CEC entered joint ventures to form realtime Zambia and CeC Liquid respectively, constantly adding to innovation in this sector. With all of its developments taking place in and outside the country, CeC is on its way to becoming the leading electricity supplier not only in the

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southern african region, but also on the continent. With its new operations in nigeria under the KANN Utility Company Limited joint venture, CeC has more than proven its capabilities to enter uncharted territories and continue to do what it does best - providing power. in addition to its business lines, CeC is also focussed on re-investing into Zambia. “protecting our fellow human beings and the environment, and investing in communities around and beyond where we operate are at the core of the company’s values.” With a company like CeC supporting Zambia and providing power to key investment areas, one is guaranteed that their investments are kept safe. Copperbelt Energy Corporation PLC Post.Net 145, Private Bag E835 37B Cheetah Road Kabulonga, Lusaka Tel.: +260 211 26 1647 www.cecinvestor.com

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energy & mining

Vast reserves of Copper, iron, emeralds and more Kansanshi Mine

ment potential in the mining sector, around 40% of the country’s land area has not yet been surveyed for minerals deposits. Locations for possible deposits have been identiﬁed, and high-potential areas include the Bangweulu Block, the Kafue Anticline, the Irumide Mozambique and Zambezi Belts, Katanga Terrain, the Choma-Kalomo Block, the Mwembeshi Shear zone, the Hook Granite complex, and the Karoo sediments in the okvango, Luagwa, Zambezi and Kafue basins.

Zambiaʼs vast and diverse minerals resources are just beginning to be exploited but have already fostered a mining sector which is driving the national economy. Zambiaʼs mining industry grew by an average 9% to 10% per year between 2001 and 2009

and contributes over 18% of the countryʼs GDP. The Zambian

government has long been encouraging investment in adding

value to the countryʼs minerals resources through oﬀering generous investment incentives.

6% of global copper reserves found in Zambia Copper is Zambia’s main mineral resource, accounting for roughly 75% of the country’s total export earnings. Zambia contains the largest known reserves of copper in Africa and 6% of known copper reserves in the world.

through the government’s focus on value addition, Zambia has established itself as africa’s top producer and exporter of reﬁned copper. other minerals resources in Zambia include cobalt, iron, manganese, uranium, coal, oil, gas, gold and many others. adding to Zambia’s vast invest-

Copper is generally mined together with cobalt, and in 2010 Zambia was the third-biggest producer of cobalt in the world. Global demand for both copper and cobalt is growing, with demand for copper increasing by around 3% per year and expected to reach 25 million tonnes by 2020, yet global copper production is set to peak soon, resulting in even stronger demand and higher prices. Global demand for cobalt is expected to remain high as well, especially for battery applications. substantial resources of iron ores have also been identiﬁed in Zambia, mainly in areas along the lower Katanga. a major Zambian steel enterprise produces Direct reduced iron (Dri, or sponge iron) using domestically available iron ores and coals. manganese is another high-potential minerals resource. Zambia’s iron ore typically contains a high percentage (around 50%) of manganese, and from 2005 to 2010, Zambia’s exports of manganese ores and concentrates drasti-

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cally increased from 100 tonnes to 118,310 tonnes. In 2010 Zambia was ranked the second-largest exporter of manganese in the SADC region. In 2012, a private indian company began building a manganese-processing plant in serenje which is to process 720,000 tonnes of manganese per year by 2014. The company has also obtained six large concessions for mining high-grade manganese ores and has begun production in mansa. Zambia also has vast deposits of highgrade zinc and lead, including an estimated 11 tonnes of ores containing 40% combined zinc and lead in the Kabwe area. The area northwest of Mumbwa also has exceptional potential for zinc and lead extraction.

Vast coal, uranium reserves Zambia possesses substantial coal resources and has been producing coal continuously since 1967. The bulk of the coal has come from the maamba coal mine, an open-cast operation in the southern part of the country near Lake Kariba. Maamba has estimated coal reserves of 65 million tonnes. Zambia’s undiscovered coal resources are most likely to be found in the Karoo basins of the Mid Zambezi Rift, the area between the mulungwa and siankondobo coal ﬁelds, the Siambabala area, and in the Luangwa and Luano valleys. Zambia has uranium deposits in various geological formations, most importantly in sediments in the Karoo basin. In fact, the Zambian government aims for Zambia to become africa’s third-biggest supplier of uranium and has implemented new laws on uranium mining, storage and export which are designed to attract investment.

Kansanshi Mine

several major mining companies are already involved in uranium exploration and mining in Zambia. Zambia has proven oil and gas reserves near the angolan border and additional reserves have been identiﬁed in other parts of the country. the petroleum production and Development act aims to encourage investment in oil and gas exploration, extraction and processing.

non-metallic minerals and gemstones other minerals resources in Zambia include non-metallic minerals like limestone, dolomite, clay, sulphur, silica sand, feldspar, talc, barite, phosphate, dimension stone, graphite, gypsum, kyanite, asbestos and ﬂuorite. Precious stones in Zambia include emeralds, gold amethysts, aquamarines and diamonds. Zambia has the second-largest deposit of emeralds in the world, making up 20% of the global supply.

top investment opportunities in Zambia’s exciting minerals sector, according to the Zambia investment agency, include copper mining and value addition, iron mining and value addition, manganese mining and processing for export, support services and machinery for the mining industry, and joint-venture or Greenﬁeld investments in gemstone mining and processing. the Sub-Sahara Gemstone Exchange Industrial park in ndola is being established as a hub for Zambia’s gemstone and other rapidly developing minerals activities. Sponsored by:

Blu Rock

MINING SERVICES LTD PO Box 20744, Kitwe Tel: +260 212 210968 admin@blurock.co.zm www.blurockmining.com

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energy & mining

Powering the Future: investing in energy infrastructure © Elena Schweitzer | dreamstime

Zambia is endowed with a wide range of energy resources, but none of them has been fully exploited and the countryʼs energy infrastructure urgently requires modernisation and expansion. Only around 18.5% of Zambiaʼs population

has

access

electricity,

and

providing adequate and reliable supplies of energy to all the countryʼs people is a priority in Zambiaʼs current National Development Plan.

Electricity demand to reach 2,400 MW by 2015 in addition, demand for electricity in Zambia is likely to increase to 2,400 MW by 2015, creating a deficit of more than 550 MW. In fact, experts estimate that Zambia needs to double its power-generation capacity over the next five years alone to keep up with economic growth and to eliminate power outages and high electricity costs. Zambia is not alone in its energy needs. the saDC region overall has been facing a power deficit since 2007. For investors, opportunities in Zambia’s energy-infrastructure development include building power plants (particularly ones based on hydropower and other renewable energies); contributing to transmission-infrastructure projects, including ones linking Zambia to neighbouring markets’ power grids to enable Zambia to position itself as an energy exporter; building storage facilities and pipelines for petroleum and gas; and building transport facilities for coal distribution and exports. according to “africa infrastructure tracker”, a report by global group Frost & sullivan published in February 2013, Zambia is expected to invest approximately €9.8 billion in infrastructure-development projects from 2011 to 2015. The report notes that most of this will go towards

expanding and upgrading the country’s hydropower plants to meet escalating energy demand, particularly from the mining sector. Derrick Chikanga, energy and environmental research Analyst for Frost & Sullivan, explains, “Zambia’s energy and power sector recently received a large capital injection of approximately €5.2 billion to increase generating capacity by an estimated 4,240 MW. As approximately 95.5% of the country’s plants are hydro-based, all the projects will involve hydropower plants.”

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sector

New 120 MW hydro plant and long-distance transmission line One of these projects is a new 120 MW hydropower plant and long-distance power-transmission line being ﬁnanced with €50 million from the European Investment Bank (EIB). the project includes the construction of a hydropower plant at the existing Itezhi-Tezhi dam as well as building and installing a 291-km transmission line to Lusaka that will connect the power station to the national grid and from there to the southern african power pool. the project is being developed by Itezhi-Tezhi Power Corporation, with ZESCO (Zambia’s state-owned electricity provider) and tata each having a 50% share. the eiB has been a particularly active participant in Zambia’s energy development. “increased production of green energy will lower the cost of importing electricity to Zambia and reduce reliance on coal-generated power. the eiB recognises the detrimental economic impact of power shortages in the region and is committed to supporting long-term investment in key energy infrastructure across Africa. The impressive Itezhi-Tezhi project complements the EIB’s support for upgrading the Kafue Livingstone transmission line provided earlier this year,” says pim van Ballekom, eiB Vice-president responsible for lending in sub-saharan africa.

Itezhi-Tezhi Project

The Itezhi-Tezhi initiative is one of a number of major energy-infrastructure projects aimed at increasing energygeneration capacity and electricity access not only in Zambia but also throughout the southern african power pool, as well as improve energy connections between countries and reduce reliance on coal-based power stations. additional ﬁnancing for the Itezhi-Tezhi project will be provided by the French Development agency (aFD), the african Development Bank, Fmo, proparCo, the Development Bank of southern africa, Zambia’s government, tata and india. The project is expected to be completed by 2015.

ZesCo doubling energy-generation capacity

strong commitment from the eu

Cyprian Chitundu, managing Director of ZesCo, adds, “this project will significantly reduce the challenges facing ZesCo and help us to meet enormous demand for power arising from expansion of the customer base and growth in Zambia’s mining, agriculture, commercial and domestic sectors.” ZesCo has various projects underway to tackle the challenges of demand versus supply. The company plans to invest around €3.9 billion in doubling its energy-generation capacity over the coming five to six years and in connecting north-western Zambia and Luangwa to the national power grid, among other projects.

Zambia’s international partners are providing the support Zambia urgently needs to kick-start its energy development, but more investment from the private sector is essential. as Gilles Hervio, the EU’s Ambassador to Zambia, explains, “support for energy is a key focus of european engagement in Zambia. investment to improve energy infrastructure and increase supply is necessary for economic growth, job creation and reducing poverty. the eu Delegation in Lusaka is committed to increasing its contribution to improving energy access as outlined by the next European Development Fund and to working closely with the eiB to ensure effective support for the sector.”

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• Regional Hub for ICT • Positioning ICT as High-Potential Investment Target

ICT

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master ZamBia reGio

regional hub for iCt Zambia is positioning itself

as a leading regional hub for ICT products and services. Building

the

countryʼs

strategic location in the heart

of fast-growing markets along with a thriving economy and rapidly increasing FDI, Zambia

aims to develop world-class ICT

products

and

services

with the help of international

partners and to attract more investment in its ICT sector.

the Zambian iCt sector is already developing rapidly. the international Telecommunication Union’s inﬂuential report “measuring the information Society 2013” identiﬁes a group of 12 “most dynamic countries” which have recorded above-average improvements in their iCt sectors over the past year, and Zambia is on the list. Zambia’s government strongly supports iCt growth. as Fackson shamenda, Zambia’s former minister of transport, Works, supply and Communications, explains, “Zambia, by virtue of its geographical position, is a natural regional hub for iCt in that it can serve to link countries to the west, east, north and south, and in the process iCt development has the potential to make a substantial contribution to the national economy. the Zambian government is determined to transform Zambia into a regional communications hub and to ensure that Zambia offers reliable and affordable telecommunications solutions for all.”

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Fostering a knowledgebased society emmanuel mwamba, permanent secretary of the ministry of information and Broadcasting services, noted at a united nations Development programme summit in Lusaka recently that one reason the government is focussing on iCt development is that iCt services can transform people’s lives both economically and socially. With this in mind, he said, “the ministry has embarked on the modernisation of Zambia’s public media institutions, namely the Zambia national Broadcasting Corporation, times printpak and Zambia Daily mail.” the permanent secretary added that the Zambian government has also prioritised mobile services, enhancing e-gov-

ernment services, increasing Zambia’s presence on social media, and continuing to transform Zambia’s tV broadcasting from analogue to digital. he said, “the government of Zambia is conﬁdent that these and other measures will contribute signiﬁcantly to a well-informed, socially interactive, innovative and empowered citizenry in Zambia.” ZAMTEL, the 100-year-old national provider of telecom services, has recently been restructured under new management and is expected to play an important role in the growth of the iCt sector. ZamteL’s Ceo, mupanga mwanakatwe, comments, “our collective vision was and continues to be to make ZamteL the leading telecommunications company in Zambia and to meet the expectations of the nation and all stakeholders.”

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sector iCt

Realtime Zambia: Connecting innovation With everyone focussing on the mining sector in Zambia, one company is ﬂying the ﬂag high for the countryʼs IT sector- that company is Realtime Zambia.

realtime was re-established as a joint venture between realtime technology alliance africa and Copperbelt energy Corporation in 2009 as a 50/50 partnership. The company started off as an sme and is today one of Zambia’s it giants. With such a strong backing, it is easy to understand that realtime has not only the know-how to manage the it field, but also the tools necessary for it. Tools such as the most extensive optic-fibre network in all of Zambia. The company is constantly innovating, releasing 4G WiMAX in 2012 to ease internet access to the remote areas of Zambia. additionally, realtime has provided continuous satisfactory service to its corporate, mining, and government clientele consequently resulting in a 433% growth in four years. Receiving international recognition in 2013, Realtime was awarded the international Quality Crown award by the Business initiatives Directions in London. on top of all this, the managing Director samson Longwe recognises the need to re-invest in the community realtime is located in by providing internships to university/college students. With all these major developments one wonders where we will find Realtime in five years time, for Samson Longwe, “realtime will be synonymous with internet.” Realtime Zambia Plot 1234, Kalembwe Close, Off Great East Road, Rhodes Park PO Box 36886 - Lusaka Tel: + 260 211 25 5037/5038 - www.realtime.co.zm

sector

Leading provider of Cutting-edge iCt services Coppernet

Solutions

brings

state-of-the-art

ICT

services to Zambia. Operating the countryʼs biggest

digital-data network, Coppernet continually invests in

the latest technologies to maintain its competitive edge.

Just one example is the company’s decision to implement highperformance multiprotocol Label switching (mpLs) technology. Coppernet plays a key role in helping Zambians communicate. CEO Thomas Lungu explains, “Our digital-data network stretches from Chilabombwe to Livingstone, providing telephone services to 99.99% of the Copperbelt. We also offer satellite internet connections in Zambia’s most remote areas.”

In-depth local market expertise Coppernet’s small size and focus on the local market are deﬁnite advantages for the company’s customers, thomas Lungu points out. He says, “Multinational ICT companies have to ﬂy in a specialist to handle network issues that might arise here in Zambia, while we can simply call our local staff members, who have been trained to handle any issues on our network.” thomas Lungu expects Coppernet Solutions to continue to grow rapidly. He says, “We are in a position to triple in size in the next four years with the help of the right partner, ideally one from the saDC region.” thanks to Coppernet solutions’ market-leading technologies and local expertise, the company’s long-term success story is just beginning. Coppernet Solutions Ground Floor, Mukuba Pensions House Dedan Kimanthi Road, PO Box 38671, Lusaka Tel: +260 974 12 1893 info@coppernet.zm, www.coppernet.zm

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positioning iCt as highpotential investment target Zambiaʼs

ICT

sector

oﬀers

outstanding

investment potential and has been developing rapidly. Zambia has recently gained access to

international

submarine

ﬁbre-optic

cables for the ﬁrst time, which has already led to some signiﬁcant price reductions for

broadband

services.

Third-generation

(3G) mobile-broadband services have been launched and national fibre networks are being rolled out by four different companies. The first

LTE network began trial operations earlier this

year, and several ISPs have rolled out WiMAX

wireless-broadband

networks.

Although

the

mobile-voice market is

Zambia’s priority activities for iCt investment are software development, training human resources in iCt, and manufacturing and assembling iCt equipment. the government also wants to develop e-government services, e-commerce, animation and digital tV content, internet services, “carrier of carriers” service, mobile-based applications in many sectors, rural and urban telecommunications centres, call centres, and iCt services for people in areas which currently have no or limited access to them. one growth segment for Zambia’s iCt sector is iCt-enabled services, through which organisations in the developed world utilise iCt companies in the developing world to process routine information on a daily basis and e-mail back the processed information to the remote company just in time for the next day’s operations. India, Malaysia and Mauritius are leaders in providing iCt-enabled services and Zambia aims to carve out a niche for itself in this rapidly developing segment. potential activities include call centres, medical transcriptions, back-ofﬁce support, insurance-claims processing, legal databases, content development and services, providing animation for the ﬁlm industry, and logistics management.

approaching saturation, the

government

reviving plans to issue a

fourth mobile license.

Diverse attractions for investors Zambia’s iCt sector offers a number of advantages. it is growing rapidly, it has been fully liberalised, investments are secure and free from nationalisation, investors can count on unlimited repatriation of proﬁts, the legal and regulatory environment for iCt activities is strong, there are no price controls or consumer subsidies, tariffs have been reduced to open up the domestic market, and Zambia continues to upgrade its business climate and iCt infrastructure. as a further incentive, Zambia is developing a cutting-edge ICT park in the Kabwe MFEZ which will be the ideal base for companies manufacturing and assembling iCt equipment or providing advanced iCt services. the iCt park will cover around 100 hectares and is set to open next year, just one more sign of Zambia’s commitment to establishing a world-class iCt industry.

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iCt

homegrown software systems and technological expertise Zambian business leaders have long seen challenges not as obstacles, but as opportunities.

In 1990, years before the full dawn of the digital

age on the continent, Dave Debo Coker of DCS Holdings realised that although there was a demand for computers, they were diﬃcult to get into the country.

always tech savvy, Dave Coker decided to import computer components and assemble them at his kitchen table, successfully introducing some of the first PCs to Zambia. First only selling to friends eager to own computers, nearly a quarter of a century later Digital Control systems has grown into an organisation that boasts a client list comprising some of the most prestigious financial institutions in the country. While the Western world may be unaware of the technological expertise that exists within Zambia, Digital Control systems has been at the forefront of innovative solutions for decades. From automating filling stations throughout Zambia to ensure the accountability of attendants, to installing multi-faceted tech systems that allow banks to drastically reduce losses, Digital Control systems is continually searching for new technologies to introduce to the Zambian market. “i see our growth coming from adding more value to what we are doing,” Dave Coker, founder and managing Director explains. “For example, we are adding finger print integration into our existing systems in order to upgrade them.” Digital Control systems, and its management, continually strive to create partnerships with suppliers that will ensure that its technology stands out as some of the most technologically advanced in Zambia, with a particular interest in telecommunications systems. its efforts haven’t gone unheralded either. “We had an inspector from Barclays uK here, and she was so surprised about the technology here in Zambia, compared to other countries. she said, what you are doing here is brilliant, we haven’t seen that in the whole of africa.”

Dave Debo Coker, Managing Director DCS Holdings

While the foundation for Digital Control system’s success was laid more than twenty years ago at a kitchen table, its growth has much to do with its world-class team. “We have the technical knowhow; we have a strong work culture, and highly trained personnel, who i’ve trained myself.” having nearly cornered the banking sector with 10 out of 14 banks in Zambia utilising its solutions, Digital Control systems has now directed its focus towards growth from the public sector. preferential treatment from the Zambian government towards local ﬁrms is of critical importance. “Giving work to 100% Zambian ﬁrms empowers the local population.” DCS Holdings Ltd Cindo Road 7, Woodlands, PO Box 50193, Lusaka Tel: +260 2100 264544 www.dcszambia.com

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• Link Zambia 8000: Developing a World-Class Road Network • Filling the Transport-Infrastructure Gap

transport & infrastructure

“It is the desire of my government to improve the way we do business and ultimately improve the lives of all our citizens.” Hon. Yamfwa Mukanga, Minister of Transport, Works, Supply, and Communications

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transport & infrastructure

Linking Zambia to the World

According to Honourable Yamfwa Mukanga, Minister of Transport,

Works, Supply, and Communications, “It is the desire of my government to improve the way we do business and ultimately

improve the lives of all our citizens. We do this by providing sound infrastructure.” The Ministry is certainly taking the steps to ensure that the business climate is improved. minister mukanga believes that a key strategic opportunity to develop Zambia is the conversion from analogue to digital broadcasting. “We have received a number of interests from mobile service providers to invest in telecommunications, but as government, we feel there is need to resolve the migration from analogue to digital ﬁrst, in order to incorpo-

rate additional mobile phone service providers,” says minister mukanga. With this telecommunications shift underway, the ministry is also placing a high premium on fortifying infrastructure to increase the efﬁciency of transportation. Development of infrastructure such as roads is key for any economy to

see consistent GDp Growth. the Link 8000 project is one example of the strides that the government is taking to develop “Landlinked” Zambia. Link 8000 is a project to create and refurbish 8,000 km of roads to develop stronger transport links in the country and to Zambia’s neighbours to facilitate trade. roads such as the nacala trade route will increase trade capacity between Zambia and malawi as well as the Kitwe-Chingola Dual Carriageway in the Copperbelt region will facilitate transportation in the heart of Zambia’s mining and manufacturing sectors. in addition, the government has allocated over €88.71 million (us$120 million) from the GrZ’s debut eurobond in 2012 to the renovation of the domestic rail network. “these funds will be tendered to the companies who have the knowledge and experience to reconnect Zambia railways for more efficient transportation of goods and materials to increase economic output,” states minister mukanga. “telecommunications, roads, and rail all play a role in the plan that the GrZ has set in place to take Zambia to the next level. heavy investment in these industries is now the focus of my ministry and we have put the necessary policies in place to facilitate the investment process.” minister mukanga stresses the importance of FDi in Zambia’s pursuit to modernise. the ministry of transport, supply, Works, and Communication is eager to contribute to Zambia’s growth as a key player in the economy of southern africa and continues to welcome those eager to supply their support.”

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Link Zambia 8000: Developing a World-Class road network © Brian Dell

To keep up with its dynamic economic growth, Zambia is

making major investments in its

transport

particularly massive

Link

infrastructure,

through

Zambia

road-development

the

8000

project.

Overseen by the Zambia Road Development

Agency

(RDA),

National

Roads

the project – also dubbed the Accelerated

Construction Programme – aims to build 8,000 km of high-quality single

and

dual-lane

throughout the country.

roads

Lusaka

Zambia relies extensively on its road network to transport the output of its rapidly developing mining sector to neighbouring countries and to ports leading to export markets worldwide. thanks to the country’s strategic location, Zambia’s roads are also heavily used by transporters and travellers from other countries, and if Zambia can offer improved road infrastructure, it can position itself as a leading regional transport hub.

Budgeted at over €5 billion Link Zambia 8000, budgeted at over €5 billion, was launched in september 2012 and is expected to last at least ﬁve years. it has been organised into three phases, with 2,290 km of roads in the ﬁrst phase, 3,049 km in the second phase, and 2,862 km in the third phase. the government is

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actively seeking international investors and partners to participate in this ambitious initiative, including through build-and-operate schemes for new toll roads. priority routes targeted for road development and improvements include solwezi to Kazungula (with a spur to Kasumbalesa), Kapiri mposhi to nakonde, and Lusaka to mchinji via Chipata. the road Development agency has signed contracts for feasibility studies and detailed engineering designs for various road projects outlined in Link Zambia 8000. these include a tender for upgrading 102 km of the Limulunga-to-Lukulu road in Western province and upgrading 220 km of the mporokoso-to-Kaputa-viamutundu road in northern province. Other speciﬁc road improvements covered by Link Zambia 8000 are

upgrading 196.5 km of the Luwinguto-Chilubi island road in northern province and building bridges over the Lunsemfwa and Chipaba rivers in the Lower Lunsemfwa area at mkushi in Central province. Link Zambia 8000 is progressing very well so far. in october, the national road Fund agency (nrFa) announced that the first initiative in the project will be finished ahead of schedule. the new Lusaka-Leopards hill road, set for completion in march 2014, opened for traffic in November 2013. the road links Chirundu in southern province and the Great east road. nrFa spokesperson alphonsious hamachila comments, “this is a good sign that the Link Zambia 8000 road project will be completed on time as planned.”

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master reGio

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transport & infrastructure

Designing the Zambia of tomorrow In 2009, Abel Ngʼandu and two partners answered

the call of the Zambian government to create homegrown, Zambian-owned consulting ﬁrms to help the nation realise its infrastructure goals.

Having gained valuable experience and expertise

through a joint venture with Ngʼandu UWP in South Africa, “we decided it was high time that

we stopped being in a joint venture company and became independent,” Abel Ngʼandu explains.

Ngʼandu Consulting was born and quickly became a leader in project management. By 2010, the ﬁrm

had already achieved €3.7 million (US$5 million) in turnover, and has been growing ever since.

With a wide portfolio of services, the group’s specialisation is project management with regard to road construction and is proud to be known as the top civil engineering consulting firm in the country. Since Ng’andu Consulting’s formation, it has played a critical role in the Zambian government’s Link Zambia 8000 initiative, a nationwide overhaul to the road infrastructure in the country. however, its project portfolio goes beyond transport infrastructure, encompassing everything from agricultural engineering and irrigation to sports infrastructure, with its rwanda branch currently overseeing a major stadium project in the country’s capital. ng’andu Consulting’s vision is to become the top epC (engineering, procurement, Construction) contractor in Zambia while continuing its expansion efforts throughout the high potential african continent. With an average turnover since the firm’s inception of €5.9 Million Euro(US$8 million), the company is setting its sights on continued growth, projecting a turnover in 2014 of us$10 million. however, shifting from conceptualising projects to fully realising them from start to finish requires equipment and competitive financing, which european banks could provide. ng’andu Consulting is very much open to equity partnerships with european and regional partners, particularly with contract-

Abel Ngʼandu

ing firms. Currently the top project management firm in Zambia, potential partners will benefit from the knowledge, reputation and expertise ng’andu Consulting has cultivated in its brief history. abel ng’andu is bullish about Zambia’s prospects. With major investment projected into transport infrastructure for the remainder of president michael sata’s term, there will be no shortage of work for the established firm. Abel ng’andu hopes to continue to see projects being awarded to local firms. “Preferential procurement for Zambian firms empowers the local population,” he explains.With a firmly entrenched reputation in the Zambian marketplace, there’s no question that this award-winning organisation will enjoy a continued growth trajectory in the years to come. Ngʼandu Consulting 284a/157 The Coliseum Business Park, Block B, Bwinjimfumu Road Postnet Box 330 P. Bag E10 Arcades, Lusaka Tel: +260 211 237 768 abel@nganduconsult.com.zm www.nganduconsult.com.zm

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master ZamBia reGio

Leading Construction enterprise set for strong Growth Lonerock, established in South Africa in 1980, has grown to become a leader in

the regional construction industry, known for its world-class standards and reliable

performance. Lonerock specialises in medium

to large-scale civil-engineering contracts. It has developed strong expertise in bulk earthworks,

road

construction,

township

services, industrial developments, shopping centres, pipelines and culverts, medium-sized concrete projects and runway construction.

Lonerock Construction entered the Zambian market around two years ago.

Dynamic Zambian woman leading the company Doreen sefuke mwamba, Ceo, who holds a 51% share in Lonerock Zambia, illustrates the company’s openness to innovation. she is the only women to head a major construction enterprise in the region. she says, “i am the majority shareholder of the company. all my partners are men. We are not afraid to make the right decisions at the right time. We proceed efﬁciently and assume the authority that has been entrusted to us. We live up to our customers’ trust.” Lonerock Zambia is ranked by the national Construction Council of Zambia as a Grade one road-construction firm. “this is the highest grade in road construction in the country,” Doreen sefuke mwamba points out proudly.

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transport & infrastructure

major runway project in south africa the company specialises in road construction but in south africa, Lonerock was chosen as the sole contractor for a huge airport-runway project. Doreen sefuke mwamba says, “We completed the first part of the runway five years ago and two years ago we were asked back for the rest of the project. that shows the confidence that the client has in us. this project is for the second-largest airport in south africa. it is this kind of quality that Lonerock is bringing to Zambia. We can take on any kind of project here.” Lonerock Zambia differentiates itself from other contractors, including Chinese construction firms, through its focus on quality. “When we build a road in Zambia, the country will immediately see the difference in the quality we offer. everything we build is built to last,” Doreen sefuke mwamba points out. she adds that the fact that she is from Zambia herself is an advantage for Lonerock since she has in-depth knowledge of the country and its people.

Leading role in Link 8000 initiative Lonerock’s projects in Zambia include serving as the subcontractor to another company for a project in Lusaka which was completed in record time. now the company has bid for tenders for two projects from Zambia’s road Development agency. Doreen sefuke mwamba says, “We make sure we get the job done. there are no shortcuts in the process of building roads. no matter how long it takes, we complete the work as we should. We always operate above board and Lonerock has an excellent track record in south africa and throughout the region. the projects we have built stand strong and serve as proof of our expertise and commitment to quality.” Lonerock is ready to play an important role in Zambia’s ambitious Link 8000 road-construction initiative and anticipates strong growth. “We are a very strong construction enterprise which is here in Zambia to stay. We are hopeful that we will get many jobs. We would like to grow to 15% proﬁtability to be in our comfort zone,” Doreen Sefuke mwamba points out.

Doreen sefuke mwamba welcomes the chance to work with european investors and partners. she says, “in Zambia, public-private partnerships or ones in which Zambians have the majority shareholding is the way to go. Chinese companies involved in construction projects here usually have only Chinese workers managing their construction sites, but a uK company will have a construction site run by Zambians. i am more inclined to the British way of doing business. in addition, european investors here are not just doing business; they are working with Zambia in education, health and agriculture. the eu is a genuine partner for Zambia.”

open to european partners Lonerock Zambia is currently looking for a capital injection of around €10.9 million in order to reach its ambitious goals and is very interested in working with partners from the eu who can offer technology transfer and knowledge-sharing. Zambia offers vast potential for investors, Doreen sefuke mwamba believes. she says, “Zambia has much more than copper. the country has great tourism attractions and high-potential agricultural land. this is also a peaceful, united country with a committed and dynamic private sector as well as a business-friendly government. to european investors, i say come here and see for yourselves what Zambia has to offer. For the local community, my message is that we need to grow our business sector to an international level and compete favourably with our foreign counterparts. Zambia has been a peaceful country since its independence 50 years ago. regardless of our different opinions or political afﬁliations, we will always be Zambians. and that is what keeps us going.”

Lonerock Construction 4132 Mwinilunga Road, Lusaka Tel: +260 955 84 3421 admin@lonerock.co.za www.lonerock.co.za

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Filling the transportinfrastructure Gap Lusaka International Airport

tive includes the Chipata Dry port project, budgeted at €5.2 million, which aims to streamline transport through the nacala Corridor and to the deep-sea port at nacala, mozambique. the government is looking for an investor to complete the project on a build-operate-transfer basis. the Zambian government is also seeking investment support to acquire a large vessel to transport cargo and passengers on Lake tanganyika.

upgrading air, rail networks

Zambia is working hard to upgrade its transport

infrastructure to support economic growth. In addition to the ambitious Link Zambia 8000 road project, the government is rapidly developing

Zambiaʼs rail and air infrastructure and is actively promoting public-private partnerships for transport-infrastructure projects.

Zambia’s central location makes it a natural transport hub, and the country’s growing economy is placing even more demands on the national transport system. Between 2011 and 2015, the Zambian government aims to funnel around €4 billion into transport-infrastructure projects to cope with this challenge. one major project is to develop an international airtransport logistics centre and inland port in Zambia which will make the country a centre of excellence for air-cargo handling and inland-dry-ports management. the initia-

Concerning transport by air, Zambia now has four international airports, five secondary airfields and five airstrips handling international and domestic flights. Kenneth Kaunda international airport is Zambia’s main air-travel gateway; busy smaller airports are located in ndola, Livingstone and Mfuwe. Proflight Zambia is a privately run airline which is currently working to establish an air-cargo hub for the southern african region in Zambia. all Zambia’s airports are in the process of being improved with the support of private investors and international funding organisations as well as the Zambian government. the government also plans major expansion of the country’s rail system, which urgently requires modernisation. the country’s railway lines are state-owned Zambia railways, which has recently been restructured and has many ambitious projects in the works, and the tarara line linking Zambia with tanzania, which is jointly owned by the governments of the two countries. the new Chipata-mchinji railway link has streamlined connections to northern mozambique and beyond, while a new project aims to develop a mass-transit line in Lusaka. the government is also promoting investment in improving Zambia’s rail links to its regional neighbours. Key projects include the Chingola-to-Jimbe line to the angolan border, the Kafue-Zawi line to Zimbabwe, the nseluka-mpulungu line to mozambique, the mchinji/Chipata line to nacala in mozambique, and a new rail link to namibia. Zambia’s transport infrastructure is definitely in a growth phase.

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transport & infrastructure

Flying the Flag high for Zambia A ﬁxture in Zambiaʼs aviation industry

for

years,

Proﬂight Zambiaʼs story is one that parallels the nationʼs development since the IMF

mandated structural reforms of 1991. The nationʼs former national

Airways,

carrier,

was

one

Zambia

the

many casualties of the lender

mandated restructuring. Tony

Irwin, a former Zambia Airways pilot,

founded

Proﬂight

1991, and has since strived

to put Zambia back on the international

aviation

map.

Beginning with a single plane, the airline has grown steadily

over the years and carried 110,000 passengers in 2012. “The early steps of growth are more diﬃcult until you pick up

the momentum,” Tony Irwin, Managing Director, explains.

Tony Irwin, Managing Director

From its base in Lusaka, Proflight now serves ten destinations nationally with regularly scheduled flights to Livingstone, mfuwe, Lower Zambezi, ndola, solwezi, Chipata, mansa, Kasama and mongu. 2013 was a banner year for the airline, with its capacity growing to keep up with the demand in Zambia’s flourishing economy. The airline was also able to begin serving international passengers with routes to Lilongwe, malawi and Dar es salaam, tanzania, thus capitalising on Zambia’s strategic location in the heart of south central africa. tony irwin believes that one of the crucial elements for the airline’s success has been its staff. “i believe that an airline is as much about people as it is about airplanes.” Proflight is proud to have been a partner in national development over the years, and takes seriously its role as a symbol of the country’s aviation industry. “You can carry the flag without being a national carrier,” tony irwin says.

With a burgeoning mining sector in the Copperbelt region, and Zambia’s heightened profile as an international tourism destination by virtue of the unWto conference in Livingstone this year, the country’s economic prospects have propelled Proflight forward. “the strides that Zambia has made over the last ten years with the economy growing six to seven percent have allowed us to grow.” In return, Proflight has made its own significant contribution to the development of key sectors of the economy. Zambia’s minister of tourism and arts, sylvia masebo, commented, “Without Proflight, our tourism would not be where it is today. this airline has made such a great contribution.” With twenty-two years of history behind it, Proflight remains committed to its role within the country and is looking ahead to a bright future. “We’re here to stay,” irwin emphasizes. “Zambia is a place where things are happening.” Proflight Zambia 15 B Private Hangar Kenneth Kaunda International Airport PO Box 30536 Lusaka Tel: +260 211 25 2452 reservations@Proflight-zambia.com www.flyzambia.com

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ZamBia

Construction

the european times

Construction industry in a Boom phase Zambiaʼs construction industry is deﬁnitely in a boom phase. The industry accounts for around 7.5% of Zambiaʼs GDP, and Business Monitor International

estimates

that

the

Zambian

construction sector will grow by an average

6.9% per year between 2013 and 2022 as massive infrastructure-development projects come on stream.

the construction sector is being targeted under the broader reform agenda of Zambia’s president michael sata, who came to power promising to root out corruption. he has made signiﬁcant progress so far. Corruption-ﬁghting measures in the construction industry have included a management change at the Zambian road-development agency, a freeze on construction to ensure proper permitting processes, and the seizure of the national railway in september 2012. such tough actions are creating a more transparent construction sector in Zambia over the longer term, thus boosting the industry’s attractions for international investors.

Commitment to transparency the public procurement act of 2008 set transparency requirements for tender processes and the awarding of contracts in the construction sector. now the government is working hard to make sure these requirements are met. a recent pilot project by the global Construction sector

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ZamBia sector

transparency initiative (Cost) in Zambia was designed to give a clearer picture of the procurement process for construction projects and to spot any potential problems. three procuring entities participated in the project: the ministry of education, the Buildings Department and the road Development agency. the initiative revealed issues to be dealt with in future procurement efforts and was followed by a road show to bring the results of the project to stakeholders in Lusaka, Livingstone and moshi. projects like these illustrate Zambia’s commitment to upgrading its construction industry. a reliable construction sector with investment appeal is crucial for the country as it pursues the much-needed development of its energy, road, railway, airport, telecommunications, housing and socialservices infrastructure. the Link Zambia 8000 road-development project is just one ambitious infrastructure effort now underway. Zambia’s president sata recently announced a number of new construction initiatives in the healthcare sector alone, including around 650 health centres to be built across all 10 of Zambia’s provinces.

Focus on public-private partnerships Zambia’s government is looking to public-private partnerships as the means to get planned infrastructure development off the ground. Concerning housing construction, for

example, the government estimates a need for 1.5 million new housing units across the country over the coming 10 years and recommends an annual delivery rate of 150,000 units. ppps in housing development and the construction of ancillary facilities are actively encouraged. Zambia also needs new commercial facilities, including business parks, shopping malls, multi-Facility economic Zones (MFEZs), industrial parks and ofﬁce blocks. In addition, the government is looking for investors in the construction of new social services-facilities, including schools and other public infrastructure as well as healthcare centres. according to the Zambia Development agency, key projects to be launched as ppps will include roads, railways, bordersupport infrastructure, energy facilities, housing, agriculture services, health centres and airports, all covered by Zambia’s ppp act of 2009.

Foreign investors welcome Zambia welcomes the participation of european companies and investors in its construction projects. Grace Kabwe, Zambia’s ambassador to Benelux and the eu, recently noted the Zambian construction sector’s growing investment appeal. speaking in the netherlands when she opened a trade mission for Zambian and Dutch contractors, she commented, “this trade mission is a good platform for small and medium-scale

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Construction

contractors as it offers an opportunity for exposure and training that will add to their expertise. this mission also presents a good opportunity for Zambian and Dutch companies to establish long-lasting relationships. i hope that this mission is the start of something big for our road-construction sector.” around 20 Zambian construction-sector smes and around 45 Dutch construction enterprises participated in the event.

nelpat’s Zambia Limited surveying Zambia’s Development

investors from China, Japan and other countries are already targeting Zambia’s high-potential construction industry. Japan’s hitachi Construction machinery, for example, has invested around €10 million in its Zambian operation, while China’s projects in Zambia include the Chambeshi and Lusaka east mFeZs being developed by China non-Ferrous metal mining, China henan Construction and others.

already well established in the market, boasting some of

speaking at the Zambian national Council for Construction awards in mid-2013, Christopher Yaluma, minister of transport, Works, supply and Communications at that time, noted the importance of the construction industry to the Zambian economy and the need for more support for and investment in the sector. he said, “the construction industry is the economic indicator of the level of development of any country and it is the backbone of any nation’s economic development. it contributes to employment creation, poverty alleviation and improved socio-economic infrastructure. Zambia’s construction professionals and firms require assistance and support to improve on their capacities to efficiently produce quality construction products and services that meet the expectations of the Zambian people.” addressing the negative reputation Zambia’s construction industry has had in the past, the minister pointed out, “adverse news headlines which associate the industry with poor performance do not help the industry, especially since these wrongdoings are associated only with a few unscrupulous and selfish construction individuals and companies.” Zambia is stepping up its international partnerships in the construction industry. in october 2013, representatives from Zambia and south africa launched the “start and improve Your Green Construction Business (siYGCB)” training programme, an adaptation of the international Labour organisation’s “start and improve Your Business” training programme now offered by public and private training providers in more than 130 countries. the Zambian-south african initiative is a “green business” management-training programme for small, medium and micro construction enterprises throughout the region. aimed at boosting companies’ competiveness and at promoting sustainable, environmentally friendly construction practices, it is one more example of Zambia’s pro-active approach to the construction industry.

Nelpatʼs Zambia Limited, only in existence since 2009, is

the top construction companies in the country as clients. With a specialisation in cutting-edge surveying equipment, nelpat’s has found a niche in the Zambian market by providing technologically superior equipment from Amos Dube, Managing Director across the globe. The ﬁrm has made a name for itself by an unwavering commitment to deliver top quality service. amos Dube, managing Director, explains, “the sale is the beginning of a relationship. Like a marriage, when we get involved with a client we plan to stay alongside them for the long haul.” With an established client base spanning across both the public and private sectors, nelpat’s Zambia Limited realises that the key to sustainable growth is to ensure that not only the right technology is accessible to the market, but also that adequate training and after sales service are provided. Capacity building is critical, so the ﬁrm invests in training each of its customers in the proper use of the instruments. nelpat’s Zambia Limited has even provided free pre-purchase training to public sector organisations, such as the ministry of mines and the national Council for Construction with the aim of establishing themselves as a reliable partner to the government. With a solid foundation of success and unbeatable payment terms so that a wide range of companies have access to top-ofthe-line equipment, nelpat’s Zambia Limited’s expertise will undoubtedly continue to play a role in Zambia’s development. Nelpatʼs Zambia Limited F12 Down Town Shopping Mall, Kafue Road - Lusaka Tel: +260 211 220696 amosdube@gmail.com www.thebestofzambia.com/industry/construction/ building-supplies/nelpats-zambia/

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SAFINTRA world class roofing & steel

World-Class Rooﬁng Materials that stand the test of time

Saﬁntra has brought world-class rooﬁng products to Zambia. The company is part of the Safal Group, which has around 30 operations in 12 African

countries. Today, Saﬁntra produces around 10,000 tonnes of rooﬁng materials in Zambia per year and anticipates continued strong growth in the Zambian market.

Explaining Safintra’s confidence in Zambia, Sandeep Kaushik, executive Director, says, “We strongly believe in Zambia and in what the Zambian people have to offer. We also believe in bringing value to our products, because if a country is growing, its middle-income and upper-income segments will also grow. We are prepared for increasing demand for high-quality products here in Zambia.” Safintra has developed a long-lasting roofing product with an aluminium zinc coating which will stand the test of time and provide value for money for consumers in Zambia. sandeep Kaushik says, “some companies offer discarded or outdated technologies to consumers in africa, but that is not how Safintra operates. We believe that consumers’ purchases should serve them for a longer period of time, especially when these purchases make up a lot of their disposable income. Safintra provides products with longer life, thus pushing forward the replacement cycle.”

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products last four times as long thanks to advanced technology the company invests extensively in research and development to produce products which are solid and reliable. For this reason safintra chose to manufacture roofing products with aluminium zinc coating rather than the standard zinc coating. sandeep Kaushik points out, “aluminium zinc coating is what is sold in the eu, the us and australia. it lasts about four times as long as just zinc coating. if our competitor’s roofing material lasts 10 years, ours will last 40 years. We believe so much in our product that we put our name and brand on every roofing sheet we produce, marking each one with a unique number and date so that we can track it back if anything goes wrong. We stand behind our products and we deliver what we promise. our product is better because of better technology.”

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Construction

To maintain its competitive edge, Saﬁntra is investing in developing more products and better services. the company beneﬁts from its membership in the Safal group, with its long experience throughout africa. sandeep Kaushik points out, “thanks to the group’s know-how and in-depth knowledge of africa’s many different markets, we are able to introduce new products in a country the moment we feel the market is ready for them.”

Unlike its competitors, Safintra has over 40 years of experience in africa and truly understands its customers’ needs, which include products which provide value for money. the company partners with the Zambian government in construction projects, including providing the roofing materials for new schools. Safintra’s roofing materials reflect sunlight better than inferior brands, which helps to keep schools cooler in the hottest months. Safintra has offices in Kitwe as well as Lusaka and will soon open outlets in Solwezi. It also has offices in Mansa, on the Congo border, as well as a resident officer in Chipata. the company keeps close tabs on the evolving Zambian market in order to be ready to satisfy demand. sandeep Kaushik explains, “the problem we are facing in Zambia is the fact that it is very thinly populated. the pockets of population are our markets. We want to serve people all over the country, because they all need roofs, but to do this requires investment. Our resident officers track business all over the country and if the demand is there, we start manufacturing there.”

Safintra also invests in employee training to keep its quality high and to provide work opportunities for locals; the company recently hired 10 graduates of the university of Zambia. summing up his company’s guiding principles, sandeep Kaushik says, “We work with the highest quality, we manufacture our products ourselves, we use the highest technology standards which we have developed ourselves, and we continue to invest in research in order to become even better. in addition, our presence all over africa gives us great logistical advantages and we employ local employees. all this, and not our prices, is what makes us a leader. Safintra stands for quality.” Safintra supports corporate-social-responsibility projects in Zambia in partnership with global organisation habitat for humanity. the company is open to other long-term partnerships. to potential investors around the world, sandeep Kaushik says, “Zambia has a lot to offer european investors but also needs your investment. We need better colleges, better roads, better banking, more jobs, more stable energy and more. european investors can bring the necessary technology and knowledge to Zambia in a transparent manner, and Zambia is a beautiful country with exceptional potential.”

Saﬁntra Zambia Ltd 7239 Mukatasha Road, Light Industrial Area Lusaka Tel: +260 211 288 155 / 156 www.saﬁntra-zambia.com

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ZamBia

Construction-sector Leader Looking to expand regionally

Fair-Face Enterprise, founded in 1991, has grown to become a leader in Zambiaʼs construction industry. As Executive Director Henry Ngulube explains, “We have developed from nothing to be

a major contractor with the capacity to take on category one construction and civil-engineering projects.”

the company has completed a wide range of projects which include building 92 police houses for Zambia’s ministry of home affairs, three resource centres for the ministry of education, Cavmont Capital bank, hotels, housing developments, roads and other infrastructure, refurbishment of buildings, and much more. Government contracts make up a big part of Fair-Face enterprise’s business, and the company recently signed a contract to build a school for the ministry of education to be completed by may 2015. Fair-Face enterprise is headquartered in Lusaka but works all over the country. henry ngulube says, “our vision is to be the preferred contractor in the Zambian market.” the company has invested in the latest equipment and technologies and has put together a highly skilled team of around 250 employees. in all its projects, Fair-Face enterprises strives

196

to meet the highest international standards.

producing its own construction materials The company has diversiﬁed over the years and is active in the tourism sector through providing accommodations and conference facilities. Fair-Face enterprise also has its own quarry to mine and crush stone, and it sells aggregates as well as using the materials for its own construction projects. in addition, it manufactures its own concrete blocks. “We do not have to order these materials from other companies, which allows us to be more efﬁcient and productive,” henry ngulube explains. henry ngulube has ambitious goals for his company, including doubling its turnover. he also wants to step up Fair-Face enterprise’s business with the private sector. he adds, “We are

very open to partnerships and investment from the eu. there are signiﬁcant growth opportunities here in Zambia, including in mining, tourism and an untapped market in hydropower. there is also a lot of room to expand in the region. i welcome international partnerships which can help Fair-Face enterprise become a regional player. thanks to its strong track record, proven expertise and in-depth knowledge of the Zambian market, Fair-Face has positioned itself to serve as a very reliable partner for international companies and investors looking into opportunities in Zambia and beyond.” Fair-Face Enterprise Ltd 12056 oﬀ Mumbwa Road, Chinika Complex, Chinika Industrial Area Lusaka Tel: +260 211 28 9845 fairface@zamtel.zm

the european times

â&#x20AC;˘ Ambitious Strategy Outlines Significant Healthcare Progress by 2015

health

ambitious strategy outlines Signiﬁcant Healthcare progress by 2015 Zambia has been steadily improving its healthcare sector since it began to implement signiﬁcant reforms in the early 1990s. Today,

Zambians enjoy higher-quality care and better access to healthcare services than ever before. According to the Ministry of Health,

maternal deaths, the death rate for children under ﬁve, HIV prevalence in people aged 15

to 49 and the number of malaria cases have

all dropped in recent years, while the tuberculosis-treatment success rate has risen.

many challenges remain, however. to cope with them, the Zambian government launched its national health strategic Plan for the period 2011 to 2015, the country’s ﬁfth healthcare development plan. one of the strategy’s targets is to bring Zambia’s healthcare system closer to millennium Development Goals.

Bringing quality services to people all over the country the strategy’s main mission, as outlined by the ministry of Health, is to significantly improve the delivery and quality of healthcare services all over the country. the guiding principle is that Zambia must invest in its healthcare system because a healthy population is a vital factor in economic growth. Specific targets for 2015 include reducing the under-five mortality rate from the current 119 deaths per 1,000 live births to 63 deaths per 1,000 live births; reducing the maternal death rate from 591 deaths per 100,000 live births to 159 deaths per 100,000 live births; increasing the number of rural households living within five km of the nearest health facility

from 54% of the population in 2004 to 70%; reducing the ratio of people to doctors from 17,589 to 10,000; reducing malaria cases from 252 cases per 1,000 people in 2008 to 75 per 1,000; reducing the ratio of people to nurses from 1,864 to 700; increasing the number of births assisted by skilled health professionals from 45% in 2008 to 65%; and reducing the incidence of non-communicable diseases. Challenges Zambia must face include a high burden of disease – including of communicable diseases like malaria, hiV and aiDs, sexually transmitted diseases and tuberculosis – as well as high rates of maternal, neo-natal and child deaths. non-communicable diseases are also increasing, particularly of psychiatric problems, diabetes and cardio-vascular issues. In addition, Zambia lacks sufficient healthcare professionals, services in rural areas are inadequate or nonexistent, pharmaceuticals and supplies is inefficient, information systems are poor and financing is limited.

improving primary care improving primary care is a major goal in the current strategic plan, which aims to provide cost-effective, quality and gender-sensitive primary healthcare services to all. the plan includes scaling up high-impact nutrition interventions, including vitamin a supplements, iron-foliate supplements, iodised salt, and higher-quality nourishment for infants and children. it also highlights strengthening measures to prevent malaria and hiV/aiDs, among many other targets.

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health sector

other goals include decentralising the healthcare system, implementing disease-prevention campaigns, improving the quality of and access to hospital services, continuing the “Vision 2020: the right to sight” programme, and improving the management of healthcare facilities as well as the quality of healthcare human resources through new training programmes.

Financing with the help of the private sector Financing these improvements is a major challenge and the Zambian government is calling on the private sector to play a leading role, particularly in the provision of specialised care. the plan also calls for long-term reforms of healthcare ﬁnancing and the development of alternative means of funding healthcare, including public-private partnerships, private and public health insurance, and earmarked taxes.

private sector playing key role Zambia welcomes private companies and investors in the healthcare sector. in one recent initiative, Barclays Bank Zambia and Glaxo smith Kline (GsK) formed a partnership to improve access to affordable healthcare and medicines for people throughout Zambia. Through a signiﬁcant invest-

ment programme, their project aims to bring quality affordable healthcare to one million people out of the country’s population of 14 million by 2016. the project includes exploring how to help build a cost-effective private-sector pharmaceuticals supply chain, establishing small private health centres, testing a micro-insurance product, and incorporating healthcare education in existing community-ﬁnance networks. Barclays Bank Zambia managing Director saviour Chibiya says that through this programme the bank is committed to making a meaningful contribution to Zambia’s socio-economic growth. he explains, “through our citizenship strategy, Barclays believes that we can positively impact the lives of the communities in which we operate and we are very proud to partner with GsK to undertake this pilot project.” Zambia’s minister of health, Joseph Kasonde, adds, “the government is pleased to support the Barclays-GsK programme, which aligns well with our national health strategic plan.” another recent private-sector investment in Zambia’s healthcare sector is a pharmaceuticals plant being built in the Lusaka south multi-Facility economic Zone (mFeZ). the plant, to be developed by indian group nrB pharma Limited, will employ 100 people and will supply pharmaceuticals to the Zambian and regional markets. it is another big step forward for Zambia’s rapidly evolving healthcare sector.

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master ZamBia reGio

MELCOME PHARMACEUTICALS LTD IMPORTERS & DISTRIBUTORS OF HIGH QUALITY PHARMACEUTICAL, SURGICAL DISPOSABLE PRODUCTS, MEDICAL EQUIPMENT & HOSPITAL FURNITURE

lifeline

Dynamic pharmaceuticals enterprise Looking to expand Globally Melcome business 1989,

Pharmaceuticals, founded

has

grown

as to

family-owned

small

become

shop

thriving

pharmaceuticals manufacturer and wholesaler with 1,500 employees in Zambia. In addition

to pharmaceuticals, the companyʼs product

line includes surgical disposables and medical

equipment, all of which meets the highest of international standards.

the company plays a leading role in the Zambian economy. in fact, in recognition of melcome pharmaceuticals’ efforts to create jobs in Zambia and provide high-quality products to the Zambian market. headquartered in Lusaka, wherever operations take place, melcome pharmaceuticals and pharmanova are known for its high-quality, affordable and safe pharmaceuticals. mohmed a. seedat, Chairman of the melcome Group, explains that melcome pharmaceuticals has developed a portfolio of around 1,600 products and 900 medicines which it distributes efﬁciently. He says, “There is no better distribution system than melcome’s, and we live up to our motto, ‘Deliver on time’.”

strong performance in 2012 the melcome Group also includes melcome marketing and Distributors, melcome industries, pharmanova Zambia, Copperbelt shoes and melcome pharmaceuticals. “We have been performing well, with turnover totals which meet our expectations,” mohmed a. seedat points out. to maintain the highest levels of quality, melcome pharmaceuticals works only with suppliers and manufacturers

1100

which meet World health organisation standards. the company sources products in india and China, and fully tests every product it sells. “no one is as professional and quality-driven as melcome,” mohmed a. seedat says proudly. melcome pharmaceuticals has ambitious expansion plans to open branches on the Copperbelt region. melcome pharmaceuticals is also exploring new transport routes to regional and global markets in order to lower costs and boost efficiency with the plan of adding new products. the company will continue to set ambitious new goals for itself and will continue to serve as a benchmark in Zambia’s private sector. mohmed a. seedat concludes, “melcome is a very transparent, professional, and ethical business, and melcome pharmaceuticals is more than ready to expand its direct exports and carve out a niche in the global market.”

Melcome Pharmaceuticals Tel: +260 211 / 28 6162 / 28 6152 / 28 6155 melcomep@zamnet.zm Pharmanova Tel: +260 211 / 28 6926 / 28 7313 phmanova@zamnet.zm - pharmanova@zamnet.zm

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health

Zambia’s natural health revolution When Kim Otteby made the decision to incorporate Umoyo Natural

Health

Zambia

in 2007, it was a move that was driven by her dedication

to educating people about the tremendous beneﬁts of holistic

healing.

health

and

natural

“i started this place because i was passionate about it, not because i wanted to make money. and it turns out, it’s grown into a viable business,” umoyo’s managing Director explains. the swedish national’s family relocated to Zambia when Kim was just three years old, and the country’s warmth, hospitality, and beauty captured her heart. throughout stints in uganda and europe, where Kim earned degrees at oxford, she dreamed of coming back to Zambia and reconnecting with the country and its people. six years after beginning her practice from her Lusaka apartment, Kim otteby has managed to spearhead a natural health revolution from her Great east road centre, where 90% of the clientele is proudly Zambian.

this revolution couldn’t have come at a more opportune time for Zambia. With the country’s 2013 induction into the group of lower middle-income countries, conditions like hypertension, diabetes and heart disease are increasing exponentially within the population. Kim explains, “there’s a real lack of knowledge. and that’s where we come in, because a lot of doctors don’t have the time to explain where diet and lifestyle conditions come from.” she’s quick to emphasise that the organisation, registered with the medical professions association of Zambia, works alongside the medical establishment. “We are not against the use of pharmaceutical drugs, but believe that if you decide to go on medication, you still have to address the underlying diet and lifestyle issues.” With a full spectrum of treatment options, and some of the most technologically sophisticated equipment in the world, umoyo natural health

offers Zambians access to therapies that are on par with what clients could get in europe. From live blood analysis to colon hydrotherapy, umoyo natural health has brought a new voice to Zambian’s medical community. “We’ve recently become registered with african Life assurance which means that their members can now come and use our services as part of their medical plan.” Buoyed by the testimonials of clients like maureen paupila, who after eight years of trying to get pregnant, conceived a week after ﬁnishing a seven-day intensive cleanse, Zambia is ﬁnally beginning to take notice of the message Kim has been striving to get out. Umoyo Natural Health Great East Road, Munali Roundabout Lusaka Tel: +260 966 800 600 info@umoyo.com www.umoyo.com

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education

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ZamBia

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education

impressive progress in upgrading education

Zambia is committed to upgrading its education sector and has already made great progress. A recent study on literacy levels

across Africa by The African Economist ranked Zambia 17th among 50 African countries thanks to its 80% literacy rate.

Zambia’s education sector is governed by the education act of 2011, which states that every child in Zambia has a right to education through the high-school level. Zambia’s education policies since 2006 have focussed on increasing access, but there has been a recent shift towards improving the quality of education as well. president michael sata, in a speech to the national assembly in september, commented, “We are currently reviewing our education policy to ensure that academic and vocational training are harmonised from early childhood to tertiary education levels. the aim is to make the curricula at all levels relevant to national development.” projects now underway include the construction of 84 new secondary schools, 32 of which have already been completed. in addition, Zambia is steadily implementing new iCt tools in schools to enhance learning opportunities. and, the government has begun construction projects at three new universities (at palabana university, formerly a dairy training institute; Chalimbana university, formerly a teacher in-service training school; and robert makasa university, formerly Lubwa mission). these new universities will help reduce overcrowding at Zambia’s existing public universities, the university of Zambia, Copperbelt university and mulungushi university. Zambia is also building new training centres (in Kalabo, isoka,

mwense and mporokoso) and expanding others, including northern technical College, Zambia air services training institute, Choma and Chipata trades training institutes and the Kabwe institute of technology. Last year the government also announced plans to upgrade 1,570 community schools, mostly run by nGos, to cater to vulnerable groups from poor areas.

promoting investment in education to continue this progress the government has created an enabling environment for increased public and private investment in the education sector at all levels. the British government and a large mining company are just two recent major investors in Zambia’s education system. Goals for the education sector include educating more girls, reducing the student-to-teacher ratio (63 to one in 2011 according to the World Bank), introducing school lunch programmes, creating more scholarships, and improving the quality of education overall. at the opening of a new school in rural Zambia last year, president sata commented, “our aspiration is to put together a well-organised, valuable and reliable public education system through substantial investments in educational infrastructure.”

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master reGio ZamBia

providing essential iCt Connections for research and education The Zambia Research and Education Network (ZAMREN)

connections

ensures for

high-quality

Zambiaʼs

Internet

research

and

educational institutions. ZAMREN provides inter-

institutional connectivity through its national research and education network and connects

this network to UbuntuNet, the regional network

for Eastern and Southern Africa. The UbuntuNet Alliance aims to establish a high-speed backbone network to connect the regionʼs national research

and education networks to each other and to institutions throughout the world.

Zamren is thus helping to link Zambia’s educational and research institutions to their counterparts throughout the region and, via the regional network’s international connections, to education and research institutions worldwide. Zamren has received support for its projects from the netherlands initiative for Capacity building in higher education (niChe). academic networking in africa is developing extremely rapidly, particularly as more and more ﬁbre-optic infrastructure comes on stream all over the continent. Zamren is making sure that Zambia participates in and beneﬁts from this growth in knowledge exchange. Zamren participates in the africaConnect project, a joint effort by the african union Commission and the european Commission. africa Connect is a dedicated research and education network linking the entire continent and the global research and education community. Budgeted at €14.2 million, africa Connect is being funded 80% by the eu and 20% by participating national networks. Zamren has contributed €250,000 towards the project.

universal iCt access as part of the government of Zambia’s drive to offer universal access to low-cost, quality, reliable and affordable iCt goods and

1104

services, ZAMREN is providing fibre-optic last-mile connectivity between the country’s three public universities and powerprovider ZESCO’s fibre-optic grid. Last-mile connections for other educational and research institutions are planned. institutions connected to the Zamren network are already enjoying a five-fold reduction in costs of dedicated bandwidth. Zamren’s activities are in line with developments in national research and education iCt networks all over the world. these networks include GÉant in europe; Canary in Canada; internet 2 and nLr in the us; CLara in south america; and africa’s ubuntunet. advanced research activities often require high iCt capacity, for example for medical imaging and telemedicine; transfers of high-volume static data; advanced applications like grid computing and high-definition video conferencing; and more. Zamren is helping to make sure that Zambia’s research and educational institutions have the iCt connections they need to keep pace with other institutions all over the world. School of Education University of Zambia - PO Box 32379 - Lusaka Tel: +260 211 29 5926/5927/5928 info@zamren.zm - www.zamren.zm

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â&#x20AC;˘ Promoting Gender Equality

Women of Zambia

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master ZamBia reGio

promoting Gender equality today, the ZnWL is the most prominent women’s-rights organisation in Zambia. it promotes a culture of gender equality and respect for the rights of women through changes in attitudes, language, procedure and laws. The non-proﬁt, non-partisan NGO has been active in a number of international workshops and has aided in monitoring elections in Lusaka. it has 72 district chapters and over 7,000 members throughout the country. the ZnWL also established the Zambia Boys and men’s network, which now has over 2,000 members, to encourage men and boys to support women’s rights.

Women in governance

As in many developing countries, women are disadvantaged in

Zambia in many ways, but that is beginning to change. In 1991, following Zambiaʼs transition from a one-party state to a multi-party

democracy, only seven women served in the Parliament out of 150

seats, and only three women served on the Central Committee, the

equivalent of todayʼs Presidential Cabinet. A group of womenʼs rights advocates founded the Zambia National Womenʼs Lobby (ZNWL) that year to promote equal representation by women and men in all levels of Zambiaʼs public and private sectors.

1106

recent projects for the ZnWL include the “Women in Governance” initiative launched in september 2012 with the ﬁnancial support of Norwegian Church aid. the project was designed to build the capacity of female government councilors in eight districts in Zambia’s minerals-rich Copperbelt region. in Zambia, regional councilors play a key role in local economic, political and social affairs, but out of around 1,422 councilors in 2012, only 85 were female. in 2013, the ZnWL launched a threeyear project with Demo Finland to support women in local government in Zambia’s Central, Lusaka, muchinga and southern provinces. the project targets women from all political parties and aims to enhance political-party collaboration amongst women politicians in Zambia. the overall objective of the project is to strengthen women’s capacities for increased participation and rep-

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Women of Zambia

resentation in governance at the local level through lobbying, advocacy and capacity-building. projects like these are greatly improving the position of women in Zambia but challenges remain. according to Kenneth tembo, author of the 2013 study “human rights Violations: a critical appraisal of women’s rights in Zambia,” women in Zambia have traditionally been marginalised in the legal profession, where most high-level positions are held by men. Kenneth tembo and others call for Zambia to implement the principles of the international “Convention on elimination of all Forms of Discrimination”, which contains comprehensive provisions relating to women’s rights, including the right to education and employment. Women are also marginalised concerning land and property rights.

according to the international organisation Focus on Land in africa, while the Zambian Constitution and the country’s Lands Act ofﬁcially prohibit gender-based discrimination, in practice women are still often discriminated against concerning access and control over land. Zambia’s Lands act and the intestate succession act, which governs the division of an estate where the deceased did not have a will, apply only to state-owned land, yet around 94% of the country’s land area is privately held as “customary land” overseen by leaders of Zambia’s 73 recognised tribes, who generally do not accord land to women. the government and various nGos are working to strengthen women’s land rights in Zambia through educating women and communities about women’s legal rights; challenging discriminatory customary rules; addressing cultural barriers to the implemen-

tation of gender-fair inheritance laws; and documenting existing customary rights and encouraging chiefs to keep registers of land rights.

role model: Charity Lumpa Women are beginning to play a more important role in Zambian society. one prominent example is Charity Lumpa, who in May 2013 became the first female managing Director for airtel in africa. prior to joining airtel, she was head of Group Credit administration at ecobank transitional inc. based in Lome, togo. she also held senior management positions at the Zambia national tourist Board, stanbic Bank, Barclays Bank Zambia (where she was the bank’s first female Chief Risk manager) and Citibank Zambia. During her tenure at Barclays, Charity Lumpa was recognised as one of Barclays “africa’s top 100 talents”. as Ceo of the Zambia national tourist Board, she successfully launched Zambia’s first international tourism marketing campaign, the “Visit Zambia” initiative from 2005 to 2010. Concerning women’s rights, Charity Lumpa says, “i do not want women to feel they are women. i want women to feel they are providers, that they are professionals, that they can get the job done. i approve of what the world is doing about fostering the growth of the female gender, but that in itself is also a negative. Why define special things for women? if we are going to have a women’s movement, let it be that when i apply for a job, i will not be discriminated against because of my gender and that i will have the same salary as a male in the same job.”

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ZamBia

• Making the Most of Exceptional Tourism Appeal • A Wealth of Tourism Attractions • UNWTO Meeting at Victoria Falls Raised Zambia’s Tourism Profile • Livingstone: Unforgettable Travel Experiences

tourism

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tourism

making the most of exceptional tourism appeal in fact, Zambia offers the best tourism investment environment in africa, according to us ambassador to Zambia mark storella. he says, “Zambia has cultural riches which no other country has. We are encouraging the us business community to invest in Zambia’s tourism sector.” Zambia’s most famous tourism attraction is magniﬁcent Victoria Falls, ranked one of the seven Wonders of the World as well as a unesCo World heritage site, but Zambia offers much more. the country is the home of 73 different tribes, each with its own traditions; it hosts around 30 colourful festivals each year; it has many wildlife-rich natural parks ideal for safaris; it contains vast unspoiled natural areas crisscrossed by great rivers and with many waterfalls and lakes; and it has a sunny tropical climate year-round.

“Zambia, Let’s explore” to get the tourism sector off the ground, Zambia’s tourism authorities unveiled a new slogan, “Zambia: Let’s explore,” in 2011. Zambia aims to learn from its neighbours and develop a sustainable tourism sector with the right foundations from the very beginning. in august this year, Zambia hosted an important meeting of the united nations World tourism organisation, which showcased the country’s attractions to tourism ofﬁcials from all over the world. For tourism investors, Zambia has it all:

exceptional natural and cultural attractions; a

central location in southern Africa; a welcoming, peaceful

population;

government tourism

and

largely a

which

very

investment.

English-speaking

business-friendly

strongly

Zambia

promoting

rapidly

developing its infrastructure, for example through the Link Zambia 8000 drive, and is

served by six international airlines as well as by dynamic private local airline ProFlight.

a few days before, the third annual Zambia international investment Forum (ZiiF) 2013 was held in the Zambezi sun hotel in Livingstone and its theme was “harnessing tourism opportunities for Wealth and Job Creation.” Zambia’s leaders are well aware of the social and economic beneﬁts of tourism development. the World travel and tourism Council reports that by 2022, more than 16 million people could be employed in the tourism industry in sub-saharan africa. in fact, according to a recent World Bank report, an investment of around €185,000 in Zambia’s tourism sector will create 182 fulltime jobs, 40% more than if the investment is made in agriculture and 50% more than if it is made in mining. Zambia welcomed 859,088 visitors in 2012, and is looking forward to welcoming more every year with the help of investors in tourism.

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ZamBia

‘Gem of the Copperbelt’ top Choice for executive travellers The Mukuba Hotel lives up to its reputation as the ʻGem of the Copperbeltʼ. Opened in 1988

by Kenneth Kaunda, Zambiaʼs ﬁrst

President,

world-class

provide

accommodations

for Zambiaʼs International Trade

Fair, the hotel has continuously upgraded its

amenities

and

services over the years while

retaining its authentic local style. set in 16 acres of private land 10 minutes outside ndola and four km from the airport, the hotel offers a quiet retreat with the chance of seeing impala, peacocks and other wildlife living on the grounds. amenities include an outdoor pool surrounded by gardens, a smaller pool for children, airport transfers and a ﬁtness centre. manager Goodwin Jumbe has extensive experience in the hotel industry and founded the Fairview hospitality institute to train workers for Zambia’s rapidly growing tourism and hospitality sector. he says, “We take great pride

in training our staff to provide the best possible services, and our dedicated employees work together like a family.”

Wide choice of rooms and fully equipped conference hall the hotel contains its own conference facilities with a hall which can accommodate up to 40 guests as well as smaller meeting rooms. the hotel also hosts weddings and other social events of 150 guests and above in the beautiful marquee which seats 400 people in the courtyard adjacent to the sparkling swimming pool. the mukuba hotel is a popular choice for business meetings and other special events organised by the hotel’s experienced team. Guests staying at the hotel have a wide choice of rooms, from standard rooms and suites to fully equipped apartments. “We make sure that every room, suite and apartment is equipped with every amenity and service that our international clientele needs and expects,” Goodwin Jumbe points out. the mukuba hotel is well known for the great breakfasts and buffets served in its restaurant, Chondwe. Goodwin Jumbe says, “We offer american, asian and

1 110

indian cuisine as well as local dishes. We also cater events for the local business community and we recently catered a dinner for Zesco for 1,000 people in northern province. We were able to provide quality dining for staff working on a new hydropower plant there.” Looking to the future, the mukuba hotel will continue to add new services and is planning to build a new ﬁve-star hotel on its 16 acres of land. Goodwin Jumbe says, “We are currently looking for investors and partners to help us complete this project to the highest international standards.” he urges travellers to visit Zambia and to have a comfortable, relaxing stay at the mukuba hotel. Mukuba Hotel Tel: +260 212 65 1000 mukhotel@zamtel.zm www.mukubahotel.com

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tourism

the aroma of Zambia

Mahak Restaurant and Lodge is exactly what the seasoned traveller

needs when in Lusaka. A unique establishment that blends all its cultural inﬂuences seamlessly so its customers feel comfortable whatever they are looking for.

With rajesh Kumar’s experience in the hospitality industry having worked in Jalandhar, punjab, india for many years it is no wonder that when mahak opened its doors in 2007 it attracted a steady stream of clients for exquisite cuisine and atmosphere. Just ﬁve months after that, a second branch was launched. since then, two others have opened allowing its clientele access to the services they have come to expect. the array of dishes served at mahak explain how the restaurant came to be synonymous with good food. From traditional punjabi food to Chinese to Zambian the restaurant lives up to the meaning of its name - aroma.

i addition to the restaurant, mahak also boasts a lodge of world-class standards. its appeal is to niche clientele looking for something a little more intimate and ﬂexible. With quality suites and rooms, the lodge offers accommodation for those on the move looking for a place to call home for the night. With mahak restaurant being located on site, the lodge also has appeal for groups in town for business. the conference centre provides facilities guaranteed to comprehensively host a wide array of events. the outdoor dining is usually reserved for weddings and receptions. the services provided by the restaurant

guarantees that it is the name on the lips of Lusaka’s wedding planners. most important though are the people working on site holding the name of mahak to the highest standards. mahak restaurant and Lodge has a dedicated team working to make sure it is the go-to when it comes to ﬁne dining and accommodation. the staff makes it an objective to provide their clientele the best service possible in Lusaka. rajesh is now in talks of taking the excellent service associated with his hotel and lodges to other parts of the country. With one of the branches already established in the Copperbelt, he is already widening the network. in just four years rajesh opened four branches in Zambia and made mahak what it is today. When asked where he would like to see Mahak in the next ﬁve years, rajesh replied “on everyone’s lips, allowing everyone the access to know what food tastes like when those providing it are passionate.” Mahak Restaurant and Lodge Plot 193A Kasangula Road, Roma, Lusaka Tel: +260 211 29 2478 mahaklodge@gmail.com

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ZamBia

a Wealth of tourism attractions

Victoria Falls and more Victoria Falls, ofﬁcially one of the Seven Wonders of the World as well as a unesCo World heritage site, is not to be missed. Local people call it mosi-oa-tunya, the smoke that thunders. stretching over 1,708 metres, Victoria Falls is the biggest curtain of water in the world. it drops 90 m to 107 m into the Zambezi river gorge, with an average 550,000 cubic meters of water ﬂowing over it every minute. Zambia also has 17 other major waterfalls and visitors can take a guided waterfall tour that includes visits to rural villages.

Wildlife-rich national parks around 30% of Zambia’s 752,614 sq km of land area is reserved for wildlife. the country has 20 national parks and 34-game

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management areas, and the south Luangwa, Kafue and Lower Zambezi parks are ranked among the ﬁnest game parks in the world. Luambe, Lukusuzi Liuwa plain, West Lunga, sioma ngwezi and nyika plateau parks have substantial wildlife but are still undeveloped. mosi-oa-tunya, near Victoria Falls, has a well managed population of antelope, elephants, giraffe and rhino, with no predators. Zambia’s newest national park is Lusaka national park, just outside the capital and set to open in 2014.

Lakes and rivers Zambia is blessed with vast, beautiful lakes, three major rivers and many smaller rivers. Lake tanganyika is the longest lake in the world, while Lake Kariba has africa’s largest man-made dam and is rapidly becoming Zambia’s very own French riviera. Lake mweru is tropical and undevel-

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sector

sector Tourism

oped. of Zambia’s three major rivers, the best known is the great Zambezi, whose source is in northwest Zambia. after providing power from Kariba Dam, it is joined by the Kafue and later the Luangwa rivers before ﬂowing to the Indian ocean. the Kafue and the Luangwa teem with hippos, crocodiles, water birds and other animals coming to drink.

Fast-growing, lively cities

an african paradise Chaminuka Lodge is a true labour of love for Andrew and Danae Sardanis, who designed and built the property in the 1970s and made it their home beginning in 1978.

Zambia’s capital, Lusaka, is the gateway to Zambia for international visitors and is one of africa’s fastest-growing cities. other leading cities are the tourism centre Livingstone, near Victoria Falls, as well as Chingola, ndola and Kitwe. all are characterised by a colourful mix of people, cultures and commodities.

Great museums For an introduction to Zambia’s rich cultural heritage, visitors can check out the country’s many museums. they include Choma museum and Crafts project in Choma on the Lusaka/ Livingstone road. it preserves the cultural heritage of the tonga tribe of Zambia’s southern province and displays examples of traditional beadwork, musical instruments, spears, clay ﬁgurines, jewellery and more. Visitors can purchase local crafts. Copperbelt museum in ndola displays items found in the area that date back to the stone age. Livingstone museum has many types of displays, including a collection of explorer David Livingstone’s belongings. maramba Cultural museum, also in Livingstone, features traditional dwellings where local craftspeople are at work. moto moto museum in mbala in northern province houses an impressive collection focussing on Zambian culture and folklore. Lusaka national museum has displays on the history of Zambia, while nayuma museum in mongo showcases the arts and crafts of the Barotseland people. the railway museum in Livingstone is a must for vintage-train-lovers, while Victoria Falls Field museum has displays on how the great waterfall was formed.

hot springs and adventures the enormous shiwa ng’andu estate contains Kapishya, a natural hot spring surrounded by lush tropical vegetation. the owners, the harvey family, offer four thatch chalets for rent near the spring and serve meals in a nearby farmhouse. Just downstream is Chusa Falls, where adventurous travellers can go white-water rafting. these attractions are just a few of the reasons to visit beautiful, diverse Zambia.

the property covers 10,000 acres of savannah, wetlands and forests and has been declared a Zambian nature reserve. over 72 species of mammals, reptiles and amphibians make the Chaminuka Game reserve their home, along with over 300 species of birds. the lodge features authentic Zambian village architecture combined with modern amenities and surrounded by luxuriant gardens. the lodge contains 30 private luxury suites, each equipped with an en-suite bathroom, tV, hairdryer, safe and air-conditioning, and elegantly decorated with a mix of contemporary and traditional touches. the lodge also houses andrew and Danae sardanis’s extensive private collection of around 1,000 examples of contemporary and traditional african paintings and sculpture as well as rare artefacts from across the continent. Guests can enjoy the lodge’s three libraries, swimming pool, Jacuzzi, ﬂoodlit tennis court, gourmet restaurant, billiard room and pool table, or take a cruise, go on a game drive or walking safari, try birdwatching or horseback-riding, or even take a cheetah walk. Conference facilities are available, and the lodge has broadband internet connections. Best of all, guests can relax in the many “insakas”, or village-style lounging areas, which are scattered around the property. the Lupili insaka and deck, overlooking Lake Chitoka, offers views of some of the most glorious sunsets in africa. Chaminuka Lodge PO Box 35370 - Lusaka Tel: +260 211 25 4140/4146 andrews@chaminuka.com www.chaminuka.com

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ZamBia

unWto meeting at Victoria Falls Raised Zambia’s Tourism Proﬁle When Zambia and Zimbabwe co-hosted the

“after watching the sun set over the Zambezi river, i have become an ambassador for Zambia.”

Organisation (UNWTO) general assembly in

Zambia hopes that the unWto assembly will help it attract more visitors. in 2010, the country received only 815,000 tourism arrivals, according to the World Bank, and earned around €120 million in tourism revenues. the unWto meeting may boost both totals. Lola huete, a journalist from Spain who travelled to Zambia for the ﬁrst time for the unWto event, points out, “i am impressed with what i have seen here in Zambia and i think many people around the world will now have a better understanding of this beautiful country.”

20th annual United Nations World Tourism

August 2013, Zambia was able to showcase its exceptional tourism appeal. The event was held in Livingstone, Zambia and Victoria Falls,

Zimbabwe, near one of the worldʼs top seven natural wonders – Victoria Falls – which the two countries share.

around 2,000 people – most of them high-level international tourism ofﬁcials – attended the UNWTO event, and many of them had never been to the region before. reports about the general assembly, which is one of the world’s most high-proﬁle tourism meetings, were published throughout the world and illustrated with photographs of stunningly beautiful Victoria Falls. Wykeham mcneill, Jamaica’s minister of tourism and entertainment, was one delegate to the general assembly who discovered Zambia’s great tourism appeal. he says,

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Focus on sustainable tourism growth at the closing ceremony of the unWto meeting, Zambia’s president michael sata commented, “the 20th session of the unWto comes against the background of a global realisation that tourism is a sector of signiﬁcance and importance, with great potential in contributing to job creation and sustainable development. my government is investing in the construction of roads, railways, airports, border facilities and iCt infrastructure which will facilitate the opening up of

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sector tourism

more tourist sites in Zambia.” unWto secretary-General taleb rifai added, “this assembly is a timely opportunity for all of us to continue along an encouraging path to drive tourism towards its fullest potential in fostering sustainable economic growth, jobs and development. and what better backdrop to do so than here in africa, a region where we believe tourism can be a true force for good.” The event deﬁnitely raised the global tourism proﬁle of both Zambia and Zimbabwe, and Zambia is hoping that the international exposure will strengthen its bid to host the 2019 africa Cup of nations. as patrick Jacobs, south africa’s high Commissioner to Zambia, notes, “the hosting of this assembly is an important milestone for Zambia, a sign that this country has the experience to host international events.” Livingstone and Victoria Falls are Zambia’s top tourism attractions, and improvements made there in preparation for the Wto meeting have enhanced the area’s tourism appeal. the main international gateway to Victoria Falls is Victoria Falls international airport, which received a €120 million upgrade before the event. Local infrastructure was also improved. Victoria Falls will no doubt remain Zambia’s most famous tourism site but the country offers much more for visitors, from unspoiled nature to diverse cultural attractions and rapidly developing services for both executive and leisure travellers. Zambia is currently seeking international as well as local investment in tourism projects and aims to get its tourism sector off the ground while basing it on the right fundamentals.

as president sata explained at the unWto meeting, “as we promote tourism development to generate employment and incomes, let us guard against the pitfalls of overconsumption. We need to keep in mind that we have a sacred duty to protect our physical environment and cultures by promoting sustainable tourism.” the president particularly praised the unWto’s “sustainable tourism, eliminating poverty” initiative.

Cultural project illustrates the right direction in tourism taleb rifai noted that Zambia had done an excellent job hosting the unWto event. at the launch of the mwandi Cultural Village in Zambia’s Western province just after the unWto meeting, he said, “During the week-long 20th session of the unWto General assembly, Zambia became known worldwide. You have jumped 1,000 steps in one week and you made the whole of africa smile, shine and be proud.” mwandi Cultural Village is the kind of tourism attraction which Zambia aims to foster. the idea for the project came from local residents and Chief inyambo Yeta, who wanted a venue for their cultural activities where they could welcome visitors. they presented their concept to Zambia’s government and to the unWto, and both provided support. Zambia’s minister of tourism and arts, sylvia masebo, explains, “When local people came up with the idea, the government supported it and the project was taken to the unWto, which provided €60,000 to build the centre.” thanks in part to the unWto, Zambia’s tourism industry seems ready to take off.

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ZamBia

Michelangel ichelangelO O

italian Flair in ndola Boutique property The Michelangelo Lodge and Restaurant is designed to be a homeaway-from-home for visitors to Zambia. This boutique property oﬀers 20 beautifully decorated, air-conditioned rooms and a very popular

restaurant in Ndola, just ﬁve minutes from Ndola International Airport.

Every room is equipped with Internet connections, a direct-dial

telephone, in-room tea and coﬀee facilities, a mini bar, satellite TV, a safe, a hairdryer and mosquito nets.

guestrooms overlook the hotel’s garden, swimming pool and fountains.

Fresh, homemade dishes and Zambia’s best coffee sergio Giorgi, who owns and operates the hotel with his wife, mariateresa, explains that the restaurant came ﬁrst. he and his wife opened Vanilla Bread, a convivial café now adjoined to the hotel. it serves light meals, homemade cheese and gelatos along with wines. it was such a success that he decided to open a few guestrooms. these original accommodations were so sought-after that he expanded to 20 rooms and now achieves an impressive 85% occupancy rate. explaining the michelangelo Lodge and restaurant’s popularity, sergio Giorgi says, “We want our guests to feel comfortable and at home. our visitors include national soccer teams, government ofﬁcials and executives from all over the world. When they come to Zambia, they want the same standards they are used to anywhere else in the world, plus a great cappuccino!” all

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Building on sergio Giorgi’s italian heritage, michelangelo restaurant offers authentic italian cuisine, including homemade cheeses and gelato, as well as traditional Zambian and international dishes paired with wines from a carefully chosen list. Guests can also enjoy a full english breakfast every morning. sergio Giorgi says, “We make everything fresh. From our sauces to our desserts, it is all made in-house and upon request. and it is a well-known fact that we serve the best coffee in Zambia!” the hotel’s bar is a popular choice for drinks.

to meet demand, sergio Giorgi plans to expand the hotel to 30 rooms and to continue to add new amenities and services. he is open to working with international investors and partners and anticipates attractive returns on investments. he says, “everyone who comes to ndola knows about the michelangelo. the city currently has a shortage of good accommodations because of rapid development in the area and games held at ndola stadium. For an investor looking for a high-potential project in ndola, look no further than michelangelo Lodge and restaurant.” Michelangelo Lodge and Restaurant Plot 126, Broadway Avenue PO Box 70447 Ndola Tel.: +260 212 620325 +260 212 620476 michelangelo@m-angelo.com www.michelangelocafe.com

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tourism

top restaurant Draws international and Local Diners Rhapsodyʼs Café and Wine Bar

is a franchise Restaurant in Lusaka. It is the winner of the PMR “Diamond Arrow” award

for the best executive restaurant in Zambia for the past 6 years

– Rhapsodyʼs is a true local success story.

the modern, elegant restaurant attracts both locals and international travellers alike. Conveniently located near many of the city’s international hotels, including the radisson, and not far from the international airport, rhapsody’s has won a loyal following for its exceptional food, attentive service and lively atmosphere. nick and roula Lostrom are the founders and owners of rhapsody’s in Lusaka. nick explains, “We offer a whole range of specialities and unique dishes, simple but nicely presented. the restaurant also has a very nice vibe, especially at night.” rhapsody’s in Zambia has three distinct areas, each with its own feel - perfect for different dining and entertainment experiences so that guests can host their own types of special events. a challenge for rhapsody’s in Zambia was to ﬁnd top-quality personnel, so nick Lostrom, who runs the restaurant with his wife, has focussed strongly on staff training. he says, “Zambians are lovely, warm people and they are willing to learn, but teaching them to apply what they have learned takes effort. that is what we are here for. We have training sessions with our staff on a daily basis coaching them on them how to provide world-class service.”

Co-founding a private school as community service as part of his commitment to giving back to Zambia, nick also helped to found a school there. he says, “it is a community private school for all grades starting with pre-primary and ending at a levels. it is also a Cambridge academy school. Fees are high in the Zambian context but you get what you pay for and we have excellent teachers and staff. it is also a non-proﬁt school. All proﬁts are reinvested in the school itself.” nick Lostrom urges international investors to take a close look at opportunities in Zambia. he says, “the local agriculture sector has huge potential.

Zimbabwe used to export agricultural products all over the world until the upheaval there, and many of those farmers moved to Zambia. there is vast fertile land here along with plenty of water and exceptional growth prospects.” he adds that Zambia’s tourism sector is also ready to take off. he concludes, “it is important for all of Zambia’s business people to communicate a positive message about this country to the outside world.” Rhapsodyʼs Lusaka Arcade Shopping Centre, Shop 41 Lusaka Tel: +260 2 11256 705 info@rhapsodys.co.za www.rhapsodys.co.za

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master ZamBia reGio

top Choice for Business and Leisure travellers in Kitwe City

Moba Hotel and Convention Centre at the gateway

Doubling the number of rooms to meet demand

world-class amenities, personalised services,

the owners plan to expand the hotel to meet growing demand. they will double the number of guest rooms and will add a range of recreational facilities, including a golf course, a tennis court, a new children’s playground and more. they also aim to upgrade the hotel to four stars and to extend the hotel’s reach into the local Kitwe community.

to Kitwe City oﬀers a winning combination of a garden setting and cutting-edge business facilities. The family-owned property, which opened in 2011, is helping to drive Zambiaʼs tourism development.

alex Kaoma, executive Director, explains that the moba hotel and Convention Centre was developed to fulﬁl a growing need for high-quality accommodations in Zambia for an international clientele, particularly business travellers. he says, “We provide three-star services and world-class standards, including in our convention facilities, which are the largest in the Copperbelt area. the hotel often hosts major events of all kinds. our main hall can accommodate up to 800 people, and our dining room is ideal for banquets. our events team is skilled at organising events which meet each client’s particular needs.” although just minutes from Kitwe’s central business district, the hotel is a quiet, green retreat surrounded by several acres of beautifully landscaped gardens. Guests can enjoy local and international cuisine at the hotel’s restaurant, organic, or have a quiet drink at the highway bar. the hotel offers 50 spacious guestrooms and particularly luxurious suites, some of them connecting and ideal for families. every room and suite is equipped with a key card, a safe, LCD tV, a minibar, individually controlled air-conditioning, tea- and coffeemaking facilities, a hairdryer and free Wi-Fi connections.

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the owners want to open three more moba hotels in Zambia and are looking for partners to help them reach their goals. alex Kaoma says, “We would like to work with investors and with hotel-management teams with experience in maintaining world-class standards. As the world’s largest ﬁnancial institutions look to Zambia, the demand for quality accommodation is growing far faster than available space.” thanks to its high-quality facilities and services, the moba hotel and Convention Centre has established a strong reputation among locals and foreign visitors alike, from leaders in the global mining industry to international soccer teams. alex Kaoma explains, “investing in our hotel is a safe business opportunity with a very promising future.” Moba Hotel and Convention Centre Plot Y, 842 Kitwe, Ndola Dual Carriage Way PO Box 23125 Kitwe Tel: +260 212 25 1134 info@mobahotel.com, www.mobahotel.com

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Devilʼs pool - www.tongabezi.com

Livingstone: Unforgettable Travel Experiences

From the moment that Scottish explorer

David Livingstone ﬁrst laid eyes on the worlds largest sheet of falling water in 1855,

Victoria Falls has captivated visitors. “No one can imagine the beauty of the view,” he

later wrote. “Scenes so lovely must have been gazed upon by angels in their ﬂight.”

Tourism has contributed to Livingstone’s economy for decades, but the last ﬁfteen years have brought an upsurge, and it hasn’t only been in tourism arrivals. Designated one of the seven natural wonders of the world, Victoria Falls is mammoth in its proportions. Stretching 1.7 kilometres from end to end, an average of a million litres of water per second pour 108 meters into the narrow gorge below. Known in the local language as Mosi-oa Tunya, or “the smoke that thunders,” the mist of the falls can be spotted up to 48 kilometres away. Victoria Falls is a natural wonder that Zimbabwe also lays claim to, since the waterfall serves as a border between the

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ZAMBIA Sector

two countries. In 2000, when the ﬁrst indicators of Zimbabwe’s collapsing economy became apparent, tourists began to ﬂock to Livingstone, then a sleepy little colonial town on the Zambian side. Zambians and expatriates saw it as an opportunity, and responded by building a thriving tourism industry from the ground up.

Kalai Restaurant, serving up a mouth-watering selection of Afro-Asian fusion dishes, allows guests to immerse themselves in a traditional setting, as well as to experience an eclectic take on African cuisine. For a spectacular evening, head to Ujiji Bar for a sampling of its extensive whiskey collection or simply relax with a splendid cocktail of your choice.

Jointly shared by Zambia and Zimbabwe, and encircled by two national parks, this awe-inspiring force of nature has spawned a robust tourism industry. Livingstone, on the Zambian side, has become known as southern Africa’s adventure capital, and visitors to this quaint colonial town will certainly be spoiled for choice.

For travellers seeking a more casual base for their Livingstone holiday, the Zambezi Waterfront can be found nearby; its wide decks set on the banks of the Zambezi River. A long-time favourite of the African overland trucks that wind their way across the continent, the Waterfront, as it’s locally known, almost always has a lively crowd in the evenings. With spacious waterfront chalets and permanent ‘tents’ for guests looking for a more comfortable version of bush camping, the Waterfront has earned a solid reputation amongst Livingstone regulars.

From guesthouses to elaborate hotels; mom and pop activity providers to full service adventure specialists, a dizzying array of options materialized for the discriminating traveler, and the town hasn’t been the same since. While the global economic crisis of 2008 contracted tourism revenue, Livingstone’s tourism infrastructure is ﬁrmly established as a result of its millennial boom.

Lodging Options Leave Travelers Spoiled for Choice While budget travelers have a wide variety of guesthouses to choose from, those who are seeking to experience Livingstone’s charms amid luxurious colonial splendor can ﬁnd one of the world’s ﬁnest lodges and spas nestled on the banks of the Zambezi River: The David Livingstone Safari Lodge and Spa. Seventy-two tastefully appointed rooms and 5 executive suites, each with a private balcony overlooking the Zambezi River, provide holiday seekers with an elegant place to unwind after sampling Livingstone’s charms.

EXPERIENCING LIVINGSTONE By water: RAFTING Rafting the Zambezi rivals, if not surpasses, a trip down some of the best rafting rivers in the world. “In a single day, you can paddle more category-five rapids on the Zambezi than you could in five days on the Colorado River,” says Daan Brink, Managing Director of Livingstone Adventures. The itinerary at turns pacifies and terrifies; peaceful moments of tranquillity are interspersed with adrenaline-flooding moments of terror. Although the Zambezi plays host to massive crocodiles above the falls, rafters in the gorge below will likely only encounter small specimens. The biggest danger of rafting the Zambezi comes from comparisons; white-water enthusiasts will be hard pressed to find another river that comes close. DEVIL’S POOL Visitors who make the journey during low season (AugustDecember) may have a chance to experience what the UK’s Daily Mail called “the ultimate (and most dangerous) infinity pool in the world,” the Devil’s Pool. A curious natural phenomenon if ever there was one, the Devil’s Pool allows daredevils to swim right up to the edge of the great waterfall. The rock ledge that prevents a free fall to the gorge floor 100 m below is reassuringly solid, but peering

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By air:

over the edge as water ﬂows past will induce an adrenaline rush that is sure to linger. SUNSET CRUISE Visitors to Livingstone with a less voracious appetite for adventure can still experience the power of the Zambezi from the safety and comfort of one of the many ships that ply this ancient waterway. Setting sail between 16:00 and 16:30, nightly sunset cruises give visitors a chance to spot yawning hippos, herds of buffaloes, and lazy crocodiles lounging along the river’s banks. White-clad waiters aboard the African Queen offer “sundowners” to passengers in an atmosphere imbued with old-world charm. The Makumbi and Mambushi vessels, operated by Safari Par Excellence, generally carry a rowdier bunch in the evenings, but offer the perfect prelude to Livingstone’s spectacular nightlife.

MICROLIGHT FLIGHTS No matter what mode of transport visitors choose, getting an aerial view of Victoria Falls is an experience that should not be missed. A multi-million-year work in progress, Victoria Falls has not always been in the same place. The river gorge sharply zigzags toward the horizon, each stretch having once been the site of the mighty waterfall. A micro-light aircraft, at first glance, does not necessarily inspire confidence, but the lightweight design and powerful engine behind this engineering marvel make it one of the safest ways to get a bird’s eye view of Victoria Falls. The open-cockpit configuration means that passengers can feel the wind on their bodies, like a bird in flight. Pilots dip the aircraft into the watery mist of the falls, which sometimes sprays upwards to heights of 400 m, to let guests experience what is known as the “angel’s kiss”. Daan Brink, who is also Managing Director of Batoka Skies, says that the flights are so popular among visitors that “there is not another micro-light company on this planet that logs more flight hours than we do.” With micro light-craft engines built to last an average of 2,000 hours, an engine generally lasts nine years in most parts of the world. Batoka Skies logs 2,000 hours in 18 months.