Zambia Development AgencAgency

Presentation Outline

Location of Zambia

Economy at a GlanceEconomy at a Glance 

Priority Sectors and InvestmentPriority Sectors and Investment Opportunities 

ZDA: Your Gateway to Zambia 

Strategically Located – Land Linked 

By Road

By Air

Addis Ababa – 4hrs

Dar-es-Salaam –2hrs

Dubai – 6hrs 30minsBy Rail

Tokyo – 18hrs 20mins

Gateway to Three Regional Markets: SADC, COMESA &EACUntapped growing regional marketUntapped growing regional market

EACEAC –– 20132013EAC EAC  20132013Approx. 153.12 Million GDP $108.98 Billion

Zambia become the 17th country to sign the COMESA‐EAC‐SADC Tripartite Free Trade A A t (TFTA) 17 J 2016 iArea Agreement (TFTA) on 17 June 2016 in Lusaka, Zambia.

TFTA is an integrated market of 26 countries gwith a combined population of 632 million people which is 57% of Africa’s population.

Economy By NumbersEconomy By Numbers

Foreign Exchange Reserves Area: 752,614km2 (39th)P l i 1 8 illi (2016)

y yy y

Foreign Exchange Reserves • $2.4 Billion (Dec.2016)

Population: 15.8 million (2016)

ECONOMIC STATISTICS GDP $ 19 92 billi (2016*)GDP : $ 19.92 billion (2016*)

Per Capita: $1, 260 (2016*) GDP Growth Rate 3% (2016)

Inflation (CPI): 6.8% (May 2017)

GDP GROWTH RATES 2005GDP GROWTH RATES 2005 20162016GDP GROWTH RATES 2005GDP GROWTH RATES 2005‐‐201620169

6.3 6 26.4

7.6

6.6

7.7

6.67

8

5.3

6.3 6.2

5.76

5

6

3.23

3

4

1

2

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Th W ld B k’ f t Z bi ’ G D ti P d t i 2017 i t 4 tThe World Bank’s forecast on Zambia’s Gross Domestic Product in 2017 is at 4 percent and 4.2 percent in 2018. 

LUSAKA SECURITIES EXCHANGE

LUSAKA SECURITIES EXCHANGE (LSE) The Lusaka Securities Exchange (LSE) is the principal stock exchangeg ( ) p p gof Zambia and is a member of the African Stock ExchangesAssociation.

Though still growing, LUSE has over 20 listed company’s presentingan ideal portfolio investment platform for buying sharesan ideal portfolio investment platform for buying shares.

Several incentives have been put in place to promote rapid p p p pdevelopment of the capital market in Zambia. These include the following:

• No exchange controls• No restrictions on shareholding levelsNo restrictions on shareholding levels• No restrictions on foreign ownership

Business Environment Reforms The peaceful and democratic country of Zambia has for many years enjoyed both socialand political stability as well as a healthy macroeconomic environment, with economicgrowth averaging around 6 percent per annum since 2003.

Zambia’s notable rankings in 2016 as a result of Business reforms improvements are:

1. Ease of Doing Business ‐World  Bank 

Zambia is ranked 5th in COMESA 

2.      African Investment Index ‐ Quantum Global Research LabZambia is ranked 5thmost attractive economy for investments flowing into the African continentAfrican continent

3.      Global Competitiveness Index – World Economical Forum

Z bi i k d th 11th t titi t i Af iZambia is ranked the 11th most competitive country in Africa

4.      Doing business ‐ Forbe's annual ranking Z bi i k d 9th b F b h b 54 Af iZambia is ranked 9th by Forbes as the best country among 54 African           Countries to do business.

Zambia –Japan Bilateral Tradep

Zambia’s trade with Japan (2015):

Zambia’s Imports from Japan amounted to 8,860 million Yen (automobile, car parts, general machinery)

Zambia’s Exports to Japan amounted 5,600 million Yen (cobalt, tobacco, leather)

Information Source: Embassy of Japan in Zambia

Priority Sectors and Investment OpportunitiesPriority Sectors and Investment Opportunities

Energygy

TourismTourism

Manufacturing

Agricultureg

Infrastructure DevelopmentInfrastructure Development

The Government of Zambia has developed the Power System Development Master Plan whose objective is to provide a blue print for Power SystemMaster Plan whose objective is to provide a blue print for Power System Development up to the year 2030. Energy sources include: hydro, petroleum, coal, biomass, and renewable energy.

Power production potential: 6000MW, currently generating 2000MW.

Demand for petroleum exceeds 52 million litres per month and is growing at anaverage of 40% per annum.

Zambia has over 3,000 sunshine hours annually, average wind speeds of 2.5m/sabove 10 meters over 80 hot springs and ample rivers flowing through theabove 10 meters, over 80 hot springs and ample rivers flowing through thecountry.

The Zambezi River Authority (ZRA) is the implementing agent for the 2,400MW Batoka Gorge Hydro-Electric Scheme (BGHES) on the Zambe i Ri erElectric Scheme (BGHES) on the Zambezi River.

Project cost is approximately $4 billion and status is as follows:

Activity Status

Procurement In December 2016 the council of Ministers approved packages for separate procurement:• Financing of the dam;• Construction of the dam;• Separate Design, construction, financing, operations & maintenance of North Bank Power 

Co. (Zambia) and South Bank Power Co. (Zimbabwe)• Transmission infrastructure and water transfer tunnels in each country to be included as 

part of the scope of each respective power plant SPV’s construction/financial obligations.• ZRA will use two (2) phase open tender process with shortlisting (RFQ and RFP phases) for 

construction of the dam and power house SPV’s.

l f l ( h h) h d f h b k hPlant Layout • Two surface power plants (North & South), one on either side of the river bank, each having a capacity of 1,200MW, with combined capacity  of 2,400MW

• 6 x 200MW turbines in each power plant; and • Transmission lines: 330kV in Zambia and 400kV in Zimbabwe

Current implementation h

Batoka Gorge Investor conference held in March 2017 which attracted a larger number of foreign and local investors.  

phase

Government is also encouraging investors to develop alternative energy sources and related energy mix including;

Solar Energy

Geo-thermal Energy

Bio-mass Energygy

Ethanol

Bagasse

Waste to Energy (Cities) Waste to Energy (Cities)

Nuclear Energy

The energy projects require infrastructure to supply users and this presents an t it f i ti i E t i f t t hopportunity for investing in Energy support infrastructure such as;

Manufacture of transmission lines for connection to the national grid Manufacture of transmission lines for connection to the national grid

Manufacture of solar panels Manufacture of solar panels

Manufacture of transformers

Manufacture of spare parts for transformers and other parts

Maintenance and electrical faulty service provision

Anchor Hotels sites available for 4 5 star Anchor Hotels - sites available for 4-5 star hotels/convention centre in:-1. Livingstone2 Mamb e2. Mambwe3. Itezhi‐tezhi

T i U i iti it il bl f Tourism Universities - sites available for Construction of an ultra modern tourism university 1 K l Di i Li i1. Kazungula District, Livingstone

Holiday Homes ‐ sites available for ultra‐modern holiday homes1. Livingstone

Mixed Development - Multi‐purpose hall     and Conventional centre1. Lusaka2. Solwezi3. Chipata

Selected Projects Location/Contact Special features/Investment Opportunities

Chinyunyu Hot Springs(Heritage Site)

• Rufunsa District, 93 km from Lusaka City

• heritageinfo@nhcc.

• Total area of 2 hectares with 1 hectare available for investment

• Ideal for hotel/Lodge, Sauna bath, Restaurantorg.zm

Kalambo Falls • Mbala District, Northern Province

• 20 hectares available for development• Africa’s 2nd highest waterfall

• heritageinfo@nhcc.org.zm

• www.nhcc.org.zm

• First site of discovery of fire making technology in Africa• An early stone age archaeologic site• Ideal for Gorge swing/Abseiling/Hotel/Lodges

K d lil F ll Chit b Di t i t 50 h t il bl f d l tKundalila Falls • Chitambo District, Central Province

• heritageinfo@nhcc.org.zm

• 50 hectares available for development• Availability of locally produced agriculture products• Metamorphic rock formations• Ideal for Gorge swing/Abseiling/Hotel/Lodges/Ranchg g g/ g/ / g /

Chishimba Falls  • Kasama District, Northern Province

• heritageinfo@nhcc.

• 40 hectares available for development• Iron age sites• Site has a navigable dam & shear waters

org.zm• www.nhcc.org.zm

• Ideal for safari Lodges/Conferencing/Camping/Rafting/Boating

Lake Kashiba • Mpongwe District, • Largest, most picturesque & attractive sunken lakes on Copperbelt

• heritageinfo@nhcc.org.zm

Copperbelt Province• Ideal for Conference facilities, camping facilities, fishing 

by rod & line, water sports

Farm block Size (Ha)FARM BLOCK DEVELOPMENT

Farm block Size (Ha)

1 Nasanga 155,000Government has set aside 100, 000 Hectares in each of the ten provinces in Zambia for commercial agriculture coupled with small holder farmer integration.

2 Kalumwange 100,000

3 Luena 100 0003 Luena 100,000

4 Manshya 147,000

5 Mikelenge/ luma

100,000

6 Musakashi(SADA)

100,000

7 Mungu 100 0007 Mungu 100,000

8 Simango 100,000

9 Mwase-phangwe

100,000

Vast investment potential for food processing in the country exist covering both Vast investment potential for food processing in the country exist, covering both large and small scale industries in each of the 10 Provinces.

Agro-processing and value addition opportunities exist in the following areas:

• Eastern Province – Maize, Cotton, Beans, Tobacco and Groundnuts processing

• Luapula Province - Aquaculture, Cassava and Maize processing

• Southern Province - Beef, Dairy and Meat Processing

• North Western Province – Pineapple canning, Honey production, Agro forestry, Coffee,

• Muchinga Province – Rice and maize (Cereals and mill) processing

• Western Province – Tobacco, Rice and Cashew Nuts processingWestern Province Tobacco, Rice and Cashew Nuts processing

• Central Province – Wheat, Soya, Sunflower and Maize

bi f i h id bl i i l h d iZambia’s manufacturing sector has considerable investment potential as the domestic economy

is relatively well endowed with resource factors such as; raw materials, skilled labor force,

abundant land, water and rich minerals.abundant land, water and rich minerals.

Opportunities exist for manufacture of various products across all sectors;

• computer tablets, desk top computers, laptops and phonesp , p p , p p p

• beverages and food products

• cement, tiles and other industrial products

• copper and gemstone products - Jewelry and electric cables

• Chemical products

• Leather products

• Pharmaceutical products

• Textile and Clothing

Zambia has Multi- Facility Economic Zone’s (MFEZ) for attracting significant

domestic and foreign direct investment (FDI) To date six (6) MFEZs and /ordomestic and foreign direct investment (FDI). To date six (6) MFEZs and /or

Industrial Parks have been set up, these are:

1 L k S h1. Lusaka South

2. Lusaka East

3. Chambishi

4. Lumwana4. Lumwana

5. Ndola (Sub Sahara Gemstones Exchange) Industrial Park

6. Roma Industrial Park

Infrastructure development is one of Government’s priority areas, and is upheld in

both the National Development Plan and Vision 2030. These are mainly PPP p y

Projects and opportunities exist for infrastructure development in the following

areas;

• Road infrastructure – Government is considering Public Private

Partnerships and contractor financed projects in the road sector.p p j

• Railway infrastructure

• Energy infrastructure• Energy infrastructure

• Convention, hotel and Exhibition Infrastructure

• Airport infrastructure

Passenger Terminal (Night View) Passenger Terminal (Western View)

80 Room Airport Hotel Standalone VVIP Facility

Other Productive Sectors and Investment OpportunitiesOther Productive Sectors and Investment Opportunities

MininggThe country still has large deposits of • Gold• Silver• Gemstones and Industrial Stones which remain under‐explored.

Information Communication Technology1. Manufacture of ICT Devices and Equipment 2 B i P i O i f i h ll2. Business Processing Outsourcing for services such as call center 3. Software Application Development4 Data Management and Storage Services4. Data Management and Storage Services

Real Estate1. Development of Industrial and warehousing facilities.1. Development of Industrial and warehousing facilities.2. Development of low, medium and high cost houses through PPP

or Private development.3. Development of commercial real estate such as dry ports &

offices.

1 Tax Incentives • Corporate Income Tax : 0% for 5 years• Zero percent tax rate on dividends for p

5 years• No Import Duty on equipment and

machinery for five yearsmachinery for five years

2 Non-Tax Incentives2 Non Tax Incentives• Investment guarantees and protection • Free facilitation for application of permits,

licenses land acquisition and utilitieslicenses, land acquisition and utilities

3 Location Support3 pp• Multi Facility Economic Zones• Industrial Parks• Rural Area

ZDA: Your Gateway to the Zambian Economy

• Rural Area

Services offered by ZDAServices offered by ZDA

JOINT VENTURE PARTNERSHIPSForeign companies can be matchedForeign companies can be matched with local companies to set up investments in Zambia across all 

sectorssectors

THANK YOU THANK YOU 

Contact us for further Information:

The Director GeneralZambia Development AgencyPrivatisation House, Nasser RD

P.O. Box 30819, LUSAKA, ZAMBIA.

Tel:  +260 211 220177F +260 211 225270Fax:  +260 211 225270Website: www.zda.org.zmEmail: info@zda.org.zm

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