Zambia
Zda Spotlight
Issue 2
Inside this issue:
Palm Oil Production To 2
Increase
UNIDO To Boost Invest- 2 mine in Africa, had offered
ment Promotion
Workshops To Address 2 country had learnt from the
Investment Bottlenecks
Challenging The Down- 3 witnessed the value of
turn
Market Access For MSEs 3 Government.
MSE Sector Growing 3 faced in raising investment
Plant Expansion On 4 Unveiled By President Banda
Target
Points of Interest
• “Our partnership is good
and shows how Government
can work with the private
sector,” Paul Robillard, out-
going MD Zambia Sugar
• “From the very day we com-
menced our investment in
1996, Equinox had always
taken the long-term view
because we believe it is the
only way to be credible,
serious and that investment
can be successful,” Craig
William, President Equinox
• “Zambeef is the most diver-
sified company and is going
forward; their motto should
be From Zambian Soils to the
Dining Tables," Minister of
Commerce Trade & Indus-
try, Mr. Felix Mutati
Quote
“We're getting hurt, but I'm a
long-term investor,” Prince
Alsaud
LUMWANA MINE COMMISSIONED
Statue Depicting Unity Was
After 12 years of project
development and investment
of over U$1 billion Lumwana
Mine has finally been com-
missioned turning a back-
ward area into a modern
economic hub providing in-
vestment opportunities and
employing thousands of peo-
ple. President Rupiah Banda
who commissioned Lum-
wana Copper Mine in Solwezi
Tourism Investment Increasing
Investment in tourism is
quickly taking the lead with
planned investment in the
sector valued at
U$72,820,000 representing
65% of the total planned in-
vestment in April. The Licence
Permits and Certificates (LPC)
Approval Committee of the
ZDA approved 25 applications
with planned investment val-
ued at U$110,397,169 from
1
Development
recently said the mutual trust
between government and
Equinox had resulted in a
world class development that
had opened up North West-
ern Province as a new eco-
nomic hub. And Equinox
president and co-founder,
Craig Williams said the posi-
tive government policies and
mining reforms attracted his
company to invest in the
sector at a time when copper
prices had fallen and most
mines were struggling. Presi-
various sectors. Planned in-
vestment in the manufacturing
sector was at 15% valued at
U$16,910,000 while invest-
ment in agriculture was in the
third place with U$7,631,169
as pledged investment. The
other sectors were agriculture,
real estate, service, education,
health, construction and trans-
port. 1,721 jobs opportunities
are expected to be created
Agency
April 23 2009
dent Banda said the open-
ing of Lumwana Copper
Mine, the largest copper
the country a number of
lessons through hard
times. He noted that the
project that perseverance
was a must for success;
success was not easy; and
mutual trust and partner-
ship between Equinox and
Mr. Banda said despite the
challenges that Equinox
funds it managed to secure
a U$664 million debt fi-
nance package from inter-
national banks in 1996.
“This underscores the be-
lief the company has in the
government and the people
of Zambia to place such
large amounts of money at
risk in a Greenfield pro-
ject,” he said.
The President added that
Zambia would encourage
more investors such as
(Continued on page 2)
from the investment. The
increase in investment in the
tourism sector is due to the
promotion of the diversifica-
tion programme by govern-
ment and the attractive incen-
tive package in the sector.
Others in the sector are plan-
ning for the World Cup in 2011
and are anticipating an over-
spill from the games and an
increase in occupancy.
PAGE 2
Palm oil Production To Increase
World prices of palm oil are currently at
their highest in twenty five years and
have a direct link to petroleum price.
Zamanita in its efforts to diversify is
looking to exploit this opportunity by
setting up Zampalm Plantation in Muma,
Mpika district. A roll out of 3,500 hec-
tares is envisaged to be completed by
the end of the year.
The company has set its sight on creat-
ing the largest palm oil plantation in
Southern Africa that will make the coun-
try self sufficient in the production of
edible oils, generate employment, earn
foreign exchange and empower the local
community. In investing in this project,
Zamanita will become the first mover in
palm oil production, reduce raw materi-
als imports, take advantage of econo-
mies of scale and get carbon credits.
Recently Zamanita signed an Investment
Promotion and Protection Agreement
(IPPA) with the Government, which guar-
antees Government support, tax relief
and facilitation through the ZDA, to en-
sure that the project is successfully im-
plemented.
The agreement valued at U$27 million
covers rehabilitation and expansion
works to increase operations at the
plant site, to satisfy both local and inter-
national demand. The investment will
create 500 new job opportunities.
UNIDO To Boost Investment Pro-
motion
A delegation from UNIDO was in the
country from 14th to 17th April to help
the Zambia Development Agency (ZDA)
accelerate its ability to address chal-
lenges related to investment promotion,
enhance its policy advocacy role and
design effective strategies for attraction
of foreign direct investment.
The delegation was in the country on an
African Investment Promotion Network
mission (AfriIPAnet), a UNIDO response
to the needs expressed by African In-
vestment Promotion Agencies for techni-
cal assistance and other forms of sup-
port to help them confront the chal-
lenges of globalization and the intense
competition for foreign direct invest-
ment.
The Zambia Development Agency is the
focal point for AfrIPAnet and will be coor-
dinating the AfrIPAnet programme in
Zambia that will include investor sur-
veys, capacity building for relevant pub-
lic sector institutions and partnership
exchange programmes, to upgrade do-
mestic enterprises to become competi-
tive suppliers and subcontractors.
Workshops To Address Invest-
ment Bottlenecks
The Zambia Development Agency (ZDA),
in collaboration with BizClim, an ACP-EU
Business Climate Facility initiative will be
holding sensitization workshops on in-
vestment facilitation for public officers
and local community leaders in seven
provinces. The purpose of the work-
shops, slated for April 15 to 13 May
2009, is to sensitize public officers and
local community leaders on the impor-
tance of promoting productive relation-
ships with investors and the steps they
need to address in order to provide
more efficient and effective investment
facilitation services.
An important component of these work-
shops will be the prioritization of issues
that impede productive activities of in-
vestors and overall investment growth;
procedural changes required to regula-
tory and administrative regimes of the
key public institutions at provincial level;
and, measures that can be used to
strengthen relationships between inves-
tors, public officials and local communi-
ties. The workshops will also seek to
systematically address attitudes and
delivery capacities of public institutions,
local and traditional authorities provid-
ing services required by the private sec-
tor.
Lumwana Commissioned
From page 1
Equinox, which had a long term and
mutually beneficial view of investment in
the country. He also urged Lumwana to
consider processing the copper it mined
and add value to make copper exports
more profitable.
And Mr. Williams called on government
to continue honouring its obligations
towards Lumwana as it could not afford
policy delays. He said Lumwana Mine
was not yet successful as the sharehold-
ers had not yet been paid their return on
investment. He praised the fanciers of
the investment in Lumwana, sharehold-
ers in the mine, employees, the govern-
ment and the Zambian community for
supporting the development of the pro-
ject. “Equinox has come to build and will
continue expanding its investment in
Zambia,” Mr. Williams said. He ended
his speech with the phrase, “Ladies and
gentlemen I give you Lumwana.”
President Banda also unveiled a marble
and granite statue depicting clasped
hands as a symbol of unity. The cere-
mony was graced by traditional leaders,
Equinox directors and Cabinet Ministers.
2
I S SUE 2
Exporter Survey On……
The forecast of the annual Exporter Au-
dit indicates that a lot of export compa-
nies will reveal a slight change in the
Non Traditional Exports (NTEs) due to
the global economic melt-down being
experienced by most markets glob-
ally. However, a comprehensive analysis
can only be arrived at after the data
collection exercise is completed by the
Export Promotion and Market Develop-
ment (EPMD) Division of Zambia Devel-
opment Agency. The survey is aimed at
collecting factual information and statis-
tics on production and sales to obtain a
realistic assessment of the country’s
supply and marketing capabilities and
annual performance for all NTEs. NTEs
include all products except base metals
(Copper and Cobalt).
The survey involves identification of
problems facing both established and
emerging exporters with a view to mak-
ing appropriate recommendations and
measures to relevant stakeholders such
as government through Ministry of Com-
merce Trade and Industry MCTI). Sectors
being covered in this audit exercise are
15 sub-sectors, namely; agriculture,
animal products, building materials,
chemicals and pharmaceuticals, engi-
neering, gemstones, handicrafts and
curios, horticulture and floriculture, high
value products, leather and leather
products, mining, processed foods, tex-
tiles and other products.
Fund for Exporters
The Zambia Development Agency (ZDA)
is currently working with various pro-
ducer associations that represent inter-
ests of their members in selected sec-
tors to administer the ZDA Export Devel-
opment Fund (ZEDEF) through a Man-
agement Board. The aim of fund is to
contribute to the expansion of non-
traditional exports via provision of low
interest loans. All non-traditional prod-
ucts save for tobacco and tourism, are
eligible under the fund. The Fund is ad-
ministered by a Management Board
which comprises the Chairman of ZDA,
the ZDA Director General, the ZDA EPMD
Director, a representative of the MCTI, a
representative of the National Authoris-
ing Office (NAO), a representative of the
Zambia Business Forum and the ZEDEF
fund administrator. The portfolio is ex-
pected to reach €5 million. Producer
Associations such as the Leather Pro-
ducers Association, Organic Producers
Association, Honey Producers Associa-
tion, Association of Zambian Women in
Mining, Lumber Producers Associations,
Timber Producers Association, Agribusi-
ness Forum and Crocodile Farmers As-
sociation work with ZDA to administer
the fund.
 I S SUE 2
CHALLENGING THE DOWNTURN
The global credit squeeze maybe hitting
countries hard with little cash flow for
investment but in Zambia recently five
Investment Promotion and Protection
Agreements (IPPA’s) were signed by the
Government with five different enter-
prises from various sectors signifying
that the policies on investment remain
attractive. Signing the agreements on
behalf of the Zambian Government,
Minister of Commerce Trade Industry,
Mr. Felix Mutati, said he was very im-
pressed with the level of investment that
could easily be the highest in the region
despite the credit crunch. He said re-
gardless of what was happening else-
where in the world it was pleasing to still
attract investment valued at over U$
160 million in just one week. This action
he said would create new job opportuni-
ties and rebuild the confidence in the
efforts of growing the economy in the
face of massive job losses in many sec-
tors.
The first agreement was signed with
Zamanita Limited in the sum of U$27
million to expand and modernize the
existing facilities in order to produce
edible oils, margarine and animal feeds
using cotton seeds, soya beans and
sunflowers. Another agreement was
signed with Medicare International Lim-
ited, for the construction of a U$40 mil-
lion high tech hospital that would enable
government cut down on the U$4 million
annual budget spent to send people for
treatment abroad.
The remaining IPPA’s were signed with
ETC Bio Energy Limited, Progressive
Poultry Limited and JJ Transport Limited.
ETC Bio-diesel would invest U$56 million
to establish a vertically integrated bio-
diesel operation by growing jatropha in
Mpongwe on the Copperbelt; Progres-
sive Poultry Limited would establish a
modern state of the art broiler breeder
farm and hatchery valued at U$18 mil-
lion while JJ Transport would invest
U$16 million to operate a fully fledged
modern and efficient transport system
with quality assurance techniques that
would include satellite tracking.
“This is what we need as we continue
with the global diversity. The investment
made this week confirms government
investment environment was competi-
tive both locally and regionally and sta-
bility secured over the years,” Mr. Mutati
said. He said the transactions in a single
week were “a tremendous achievement
because the output of the investment
would go towards job creation and own-
ership, bring hope, opportunities and
confirm the diversity of growing the
economy.” Board Chairman of the Zam-
bia Development Agency, Mr. Luke
Mbewe, who signed on behalf of the
ZDA, said the level of investment re-
ceived was a sign of confidence that the
country had created in both local and
foreign investors. He said, “It is evident
that Zambia offers an enabling and com-
petitive investment climate for investors
and hence the high volume of invest-
ment commitments that we have re-
ceived and many which are under imple-
mentation despite the prevailing credit
crunch and economic recession world-
wide.” In signing the IPPA’s, Government
and the ZDA commit themselves to en-
couraging and promoting the projects
and ensure their successful implemen-
tation under the auspices of the ZDA
Act, No 11 of 2006 and certify that the
companies are eligible for tax and duty
exemptions.
Market Access For MSMEs…..
National and Multi-National companies
are partnering with the Zambian Govern-
ment in a Business Linkage Programme
that is designed to create linkages be-
tween MSEs and large corporations
(MNCs) to increase market access for
MSEs via forward and backward link-
ages. The national programme is being
undertaken with the support of the
United Nations Centre for Trade and
Development (UNCTAD) and the Interna-
tional Labour Organisation (ILO). Tata,
Zambia Sugar, Zambia Breweries and
Zain are some of the companies that are
joining forces with Government to pre-
sent supplier opportunities to MSEs.
MSE Sector Growing
The financial packages and sensitization
programmes designed to stimulate Mi-
cro and Small Enterprises (MSEs) are
beginning to bear fruit with the number
of MSEs applying for ZDA Certificates
increasing. In April 2009 ZDA approved
27 applications representing realised
investment of K1,409 587,950 and
K1,474,912,395 planned investment
from the service, trading and manufac-
turing sector. These MSEs currently em-
ploy 143 workers and expect to create
an additional 118 new job opportunities.
“The sector is being recognized as the
engine for growth like the Asian Tigers,
in the far east, where they developed
because of MSEs,” says ZDA MSE Direc-
tor, Windu Matoka. He notes that it is a
requirement for enterprises to formalize
their status with PACRO and register
with the ZDA to access funds from Citi-
zens Economic Empowerment Commis-
sion. The MSE sector contributes to the
national treasury in form of taxes, levies
and other fees and is increasingly being
recognized as a critical sector by banks
who are designing special products for
them.
3
PAGE 3
Dr. Mulungushi Tips ZDA….
The Zambia Development Agency has a
critical role to play in stimulating the coun-
try’s social and economic development by
creating real wealth that impacts on the
lives of ordinary people, making them ac-
cess schools, healthcare roads and other
facilities. Speaking when he met ZDA Man-
agement, the Permanent Secretary in the
Ministry of Commerce Trade and Industry,
Dr. James Mulungushi, said monitoring
activities were important but not the end
as the country was looking for wealth crea-
tion.
“Moving away from parastatal to private is
important but without the necessary policy
instruments it will never happen. Your role
is very critical to create that environment;
you have the mandate people are expect-
ing results,” Dr. Mulungushi said.
North South Corridor Gets U$1.2
Developed countries and lending agen-
cies recently agreed to a financing pack-
age of $1.2 billion to improve infrastruc-
ture in Southern and Central Africa at a
two day international investment confer-
ence meant to expand transport links
and trade.
Regional leaders met in Lusaka, to dis-
cuss plans and attract funds to boost
road links and regional trade. Britain
said it would separately provide 100
million pounds ($149.2 million) to trans-
form the region's infrastructure to in-
crease trade and mitigate the effects of
the global financial crisis.
US$ 600 million will come from the Afri-
can Development Bank (AfDB), and this
will be disbursed over the coming three
years, according to its President Donald
Kaberuka. The World Bank, through
vice-president Obiageli Ezekwesili, prom-
ised US$ 340 million for the project over
the next 3-4 years. EU Trade Commis-
sioner, Catherine Ashton, pledged 115
million Euro on behalf of the community.
Officials said the funds would be used to
finance new projects and upgrade exist-
ing infrastructure, which include 8,000
km (4,970 miles) of road and to rehabili-
tate 600 km of rail track linking eastern
and Southern African countries. USAID
representative at the conference, Frank-
lin Morris, told the conference that his
government had always been supportive
of African initiatives and that there
would be no change in this regard. The
cost of doing businesses in the region
that spans eight countries: Tanzania, the
Democratic Republic of Congo, Zambia,
Malawi, Botswana, Zimbabwe, Mozam-
bique and South Africa; is expected to
come down.
 Zambia Development Agency
P.O Box 30819 Events
Nasser Road
Lusaka, Zambia Meet In Africa Leather Exhibition 4-7 May 2009

Tel: 260-211-220177 Zimbabwe International Trade Fair-Bulawayo 28 April-2 May

Fax: 260-211-225270
Copperbelt Mining Commercial Agriculture Show 27-29 May
E-mail: zda@zda.org.zm
Website: www.zda.org.zm
International Trade Fair/Trade Mission-Malawi June-Aug,2009

Zambia International Trade Fair –Ndola 1-7 July, 2009

International Trade Exhibition– South Africa 19-23 July

Big Five - Republic of South Africa July-august 2009

Zambia Agriculture and Commercial Show July-Aug 2009

Facilitating Economic Growth Trade Exhibition-Mozambique 1-7 September, 2009

and Development
Trade Mission-Democratic Republic of Congo October 2009

Trade Mission/Trade Exhibition-Dubai Oct-Nov 2009

Plant Expansion On Target…..

The Zambia Sugar Plc has met all the
benchmarks of the Investment Promo-
tion and Protection Agreement (IPPA)
that it signed with the Government
and the Zambia Development Agency
(ZDA) in March 2007 to undertake a
U$185 million expansion project. The
expansion programme covered expan-
sion of the existing plant, planting over
10,400 hectares of sugar cane, con-
struction of new roads and about 26
kilometers of canals that would lead
to direct employment of more than
5000 employees, with an estimated
257 small holders added to the exist-
ing scheme.
Speaking when the Minister of Com-
merce Trade and Industry, Mr. Felix
Mutati, visited the plant to check on
the implementation of the expansion
programme, out-going Managing Di-
rector, Mr. Paul Robillard, said imple-
mentation of the expansion pro-
gramme had been tough with many
challenges but the support that the
Government had rendered to the com-
pany would enable them complete the
project works by June this year.
Mr. Robillard thanked the Government
Technical Team and in particular, the
Director of Industry, Mr. Siazongo Si-
akelenge, who had played a key role
in the negotiations and the develop-
ment of Zambia Sugar PLC.
“Your Technical Team is a model and
our partnership is good and shows
how Government can work with the
private sector,” he told the Minister
and his delegation that included repre-
sentatives from Mazabuka district,
senior officials from government and
ZDA. He said that he was proud that
Zambia Sugar had met the parame-
ters and was on target despite price
increases in fuel and steel.
Mr. Mutati, in recognizing the efforts
of the Zambia Sugar Plc, said he was
very proud of the company’s commit-
ment and delivery of benchmarks,
saying there was no place in Africa
where a project of that size had been
delivered in two years. He said Zambia
Sugar had created new job opportuni-
ties, increased the out-grower scheme
thereby reducing poverty, bringing
skills transfer and becoming self suffi-
cient in power generation. Mr. Mutati
also thanked Mr. Robillard for deliver-
ing “a gift that would deal with tomor-
row” and called on the new Managing
Director, Steve Langton, to continue
with the legacy that Mr. Robillard had
left by going forward assuring him of
government’s continued support.
The expansion programme has been
successful because of the favourable
climate that is idle for growing sugar,
arable soil, good quality of water and
proximity to the regional market. Other
factors are the regime change in the
sugar sector, allowing the company to
export any amount of sugar to Europe,
growth in the regional market and an
enabling environment that has al-
lowed the company to explore bio-
diesel production.