Zda Spotlight
Develop-
Issue 18
Inside this issue:
Zambia Reforms on Course-
World Bank
State Estimates GDP Will
Rise in Successive Budgets
Kapiri to Develop Trading
MFEZ
Deficient Energy Supplies
Affecting SADC Economies
African Countries Lagging
Behind in ICT
Zamtel Restructuring on
Course
Roma Industrial Park to be
Launched Next Year
Points of Interest
• “There has been significant
progress achieved in Zam-
bia in terms of reforms and
policy amendments and
enactment.”
• “The biggest share of the
increase is expected to
come from the mining
sector where mining taxes
are projected to increase
by 71.4%. from 0.7% of
GDP in 2010 to 1.2% ”in
2013
• “Technical assistance to
enhance domestic produc-
tion and trade capacities
has been identified as a key
factor in building the pri-
vate sector.”
Quote
The entrepreneur always
searches for change, re-
sponds to it, and exploits it
as an opportunity.” Peter F
Drunker
ZDA PUSHES FOR SME GROWTH
2
2 SMEs and threefold growth
3
4
5 reforms that were upheld
6 reforms would be retained
7 The cost of doing business is one of the biggest challenges that affects
ease of doing business and needs to be addressed to make the country
more competitive and to attract more investment.
One of the priorities of the
Zambia Development Agency
(ZDA) is the promotion of the
SME sector which contributes
significantly to the country’s
growth domestic product
(GDP), says ZDA director gen-
eral Andrew Chipwende.
And Mr. Chipwende has
urged the continued imple-
mentation of business re-
forms in the country to re-
duce the cost of doing busi-
ness.
ZDA, Protea Hotels Sign IPPA
The Government through the
Zambia Development Agency
(ZDA) has signed an Invest-
ment Promotion and Protec-
tion Agreement (IPPA) with
Protea Hotels Zambia worth
US$ 90.3 million to facilitate
for the expansion and con-
struction of 15 hotels in Zam-
bia.
This investment programme
1
Mr. Chipwende told British
journalists in an interview
that the ZDA had a responsi-
bility to promote SMEs. “Our
success is going to ultimately
be down to the measures we
put in place to prop up the
SME sector,” he said.
Zambia’s predicted 6.8 per
cent GDP growth in 2010
reflects the performance of
the economy, stability in for-
eign direct investment (FDI)
will create a projected direct
employment of 885 perma-
nent jobs and a further 800
supported jobs of which 98
per cent will be for Zambians.
Protea Hotels Zambia Chair-
person Mark O’Donnell said
under the IPPA, Protea Hotels
Zambia was committed to
create and sustain a prefer-
Zambia
ment
September 2010
inflows, the resurgence of
local industries through
in the non-traditional sec-
tor.
Mr. Chipwende said job
creation, FDI inflow and
diversification of exports
were benefits from the
by the country’s democratic
institutions. He said these
by any future government
because they were private
sector driven.
He cited the cost of doing
business as the biggest
challenge that affects ease
of doing business, explain-
ing that poor infrastructure,
legal reforms in the labour
sector and reducing bu-
reaucracy in government
agencies were the focus
areas that the country
needed to address in order
to be more competitive.
“These primarily relate to
infrastructure such as
road; the cost of energy
and communications; facili-
ties that support Cont’d on P6
ence for employment of Zam-
bians.
Mr. O’Donnell said the invest-
ment plan outlined in the
IPPA include the establish-
ment of new hotels in Chipata
and the Southern Belle to be
located at Lake Kariba to be
opened later this year.
Commerce Trade Cont’d on P3
PAGE 2
Firm Eyes Energy Sector
Zambian firm ENFIN Solutions has ex-
pressed interest in investing up to
US$1. 5 billion for the refurbishment or
establishment of hydro and thermal
power stations in Zimbabwe with capac-
ity to produce 1000 megawatts.
ENFIN Solutions managing consultant
Mr. Andrew Kamanga revealed this to
Herald Business on the sidelines of the
Zimbabwe Mining Indaba. This expres-
sion of interest in the local power sector
comes at a time the country is faced
with crippling power shortages, which
might retard economic growth.
Zimbabwe is currently able to generate
a maximum of 1 100 megawatts against
a national demand for power of 2
200MWs and Government has no ca-
pacity to invest in new power projects
due to suffocating financial constraints.
"We are looking for opportunities within
the region, Zimbabwe included. We
have the capacity to raise private fund-
ing to be able to undertake the projects.
What will determine the investment
would be the issue of economic tariffs,
which the director (energy and power
development) touched on.”
"So essentially we are looking around
and if opportunities arise we are more
than willing to put together the bids if
they require tenders," said Mr. Ka-
manga.
He pointed out that the firm would also
consider putting forward unsolicited
bids if the opportunities are available as
long as the power tariffs are viable and
investment makes enough economic
sense to commit to.
Mr. Kamanga, however, pointed out that
while the firm also had interest in
Greenfield power projects it had more
bias towards refurbishing power sta-
tions by way of introducing new cost
effective power generation technology.
He said the firm preferred deals for
refurbishment of existing power plants,
as the lead time between due genera-
tion and existing capacity was shorter.
However, such deals would also be de-
termined by the lease period.
"If someone was to approach me today
and say we have got this opportunity it
is something that we would definitely
look at," said Mr. Kamanga. EFIN Solu-
tions broke new ground in Zambia by
becoming the first private sector com-
pany to distribute power Lumwana to
homes and industrial users. The Herald
Zambia’s reforms on course—WB
THE World Bank is satisfied with the rate
at which Zambia is implementing eco-
nomic reforms and pledged to support
the country’s quest to become more com-
petitive in the global economy.
World Bank Group local coordinator Pat-
rick Banya said Zambia’s Investment
Climate Programme (ICP) phase two is
under discussion with the Government
and was likely to be launched in the first
quarter of next year.
Mr. Banya was speaking in Lusaka when
he presented a paper on ‘investment
climate’ at a media workshop on
‘Communicating Government Reform.”
Zambia’s ICP supports reforms geared
towards reducing the cost of doing busi-
ness in the country. He said the group
was committed to supporting Zambia’s
reforms and contributes towards improv-
ing the country’s competitiveness.
“There has been significant progress
achieved in Zambia in terms of reform
that includes legislation and policy
amendments and enactment. For exam-
ple, a total of 30 laws affecting more
than 70 business licenses have been
reformed,” he said.
The total administrative compliance cost
to be reduced by 30 per cent or more.
Mr. Banya said despite the positive
trends, the ICP faced a number of chal-
lenges which included inadequate capac-
ity of both public and private sector to
implement reforms as well as resource
limitations.
“There is also slow pace of reform- gap
between commitment to reform and ac-
tual reform implementation,” he said.
The group together with the Private Sec-
tor Development Reform Programme
phase two would focus on establishment
of business entry of the ‘One-Stop Shop’
which is coordinated by Zambia Develop-
ment Agency.
Zambia ICP phase one would come to
end in December 2010 and phase two
would consolidate the current reforms
and support Government new priorities.
The World Bank Group launched Zambia
ICP in March 2009, while start-up activi-
ties were initiated earlier in March 2008.
Commenting on the reforms, Public Sec-
tor Development Reform Programme
coordinator Mrs. Kayula Siame said the
Government would support the elimina-
tion of key constraints to Zambia’s local,
regional and international competitive-
ness reforms. She said this would con-
tribute to job creation. Times of Zambia
2
IS SUE 18
State estimates GDP will rise in
Successive Budgets
The gross domestic product (GDP) under
the proposed successive budgets is ex-
pected to keep rising from about 20.39
percent next year to 20.66 percent in
2013.
Secretary to the Treasury Likolo
Ndalamei said in a statement that gov-
ernment estimated a K17.9 trillion na-
tional budget for next year, which will
continue rising up to K22.7 trillion by
2013 under the 2011-2013 Medium
Term Expenditure Framework (MTEF).
“The biggest share of this increase is
expected to come from the mining sector
where mining taxes are projected to in-
crease by 71.4 percent from 0.7 percent
of GDP in 2010 to 1.2 percent of GDP in
2013,” he said. Mr. Ndalamei said
growth in mining revenues is premised
on a projected increase in production
and the continuance of favourable cop-
per prices over the medium term.
He said Government expects value
added tax (VAT) collections to increase by
69.2 percent by 2013 compared with
2010 levels and remain fairly constant at
around 4.5 percent of GDP over this
MTEF. Mr. Ndalamei said this increase is
premised on administrative reforms cur-
rently being implemented by the Zambia
Revenue Authority to enhance tax com-
pliance.
He said excise duty is projected to in-
crease from 1.9 percent of GDP this year
to 2.1 percent in 2013 while customs
duty is forecast to rise from 1.7 percent
of GDP this year to two percent in 2013.
“These increases are mainly on account
of improved economic activity over the
medium term,” Mr. Ndalamei said. He
said over the last two decades, Zambia
has made significant strides by putting in
place a modern tax system.
Mr. Ndalamei said, however, that there
are still challenges to this development
which include the tax incentive regime
which is based more on rate reductions
than on deferments or increased capital
allowances. He said the VAT base has
been narrowed over time due to an in-
crease in exemptions and zero-rated
goods and services like compliance and
administrative challenges.
Mr. Ndalamei said the performance of
customs and excise duties has been
adversely affected by frequent suspen-
sions and exemptions while differences
in the company income tax rate structure
across sectors have created distortions
in the tax system. He said tax incentives
under the Zambia Development Agency
 IS SUE 18
Act and the Triangle of Hope Initiative
have further eroded the tax base.
“These challenges arise from two oppos-
ing policy considerations. First, the gov-
ernment has prioritised local and foreign
direct investment as a key component of
its growth acceleration strategy. This has
resulted in the provision of various incen-
tives in order for Zambia to remain a
regionally competitive investment desti-
nation,” he said.
On the other hand, the country faces an
immediate need for resources to imple-
ment its ambitious development agenda.
He said in an effort to better balance
these considerations government has
already initiated a comprehensive tax
review and will implement necessary
reforms over the medium term.
The objective of these reforms will be to
expand the tax base and increase reve-
nue productivity while at the same time
ensuring equity and simplicity of the sys-
tem.
Indian Investors to Invest US
$1m
A delegation of farmers from India’s
Punjab State is set to invest about US
$1 million into Zambia’s agricultural
sector as a means of enhancing the
country’s economic growth.
Delegation leader Harbans Bhullar dis-
closed in an interview that the farming
community in India had identified Zam-
bia as an ideal country to invest in the
agriculture sector because of the stable
economic and social climate.
Bhullar disclosed that the eight man
delegation was in the country at the
invitation of the Zambian government,
following an earlier meeting of ambassa-
dors from selected African countries in
March 2009.
“We had a seminar of about seven am-
bassadors from the African continent in
March 2009 from which we identified
Ethiopia and Zambia as potential invest-
ment destinations. We decided to put
aside Ethiopia and opted for Zambia
because of the prevailing political stabil-
ity, in comparison to Ethiopia,” Bhullar
said.
“We have since met government offi-
cials and the Zambia Development
Agency (ZDA) who took us to view the
Nansanga Farming Bloc (in Serenje) and
we have given our consent to take up
10,000 hectares of the land.”
Bhullar said once the Zambian govern-
ment approves the group’s interest to
take up the piece of land, his team
would immediately set to work as part of
its contribution to the growth of the agri-
culture sector.
And Majha Energy Centre managing
partner Dr Mukhtar Dhanju observed
that the country could not attain any
meaningful development in any eco-
nomic sector without sustainable tech-
nology.
Dr Dhanju said India was willing to work
closely with the Zambian community to
bring information technology closer to
the people. The Post
ZDA, Protea Sign IPPA
and Industry Minister Felix Mutati said
Government was working on measures
to reduce 27 licences that are slowing
down growth in the tourism industry.
“We will ensure that we reduce the busi-
ness licences that are discriminating
and slowing down growth in the sector,”
he said.
Mr. O’Donnell said further benefits from
the Protea Hotels Zambia expansion
plan would include many and varied
linkages to local businesses from initial
planning and financing through to the
construction phase with contractors and
sub-contractors.
“We will continue with our support
through the operations of the hotel with
relationships with local suppliers, small
scale farmers and producers and service
providers of all kinds, “he said. As the
Zambia Protea network grows it will
have a tremendous direct and indirect
benefit in revenue for national and local
Government.
The hotel pledges to assist Government
with its objective to advance the social
and economic development of the coun-
try and contribute to the sustainable
development for the benefit of people.
He said all employees are provided the
advanced training facilities both locally
and internationally to give them the
much needed exposure for capacity
building and transfer of skills for self –
sustainability and career advancement.
ZDA board chairman Luke Mbewe said
the investment will support the purchase
of land and or buildings, plants, equip-
ment, furniture, construction work and
staff training, working capital, finance
cost and other statutory fees. Mr. Mbewe
said the company had already identified
suitable sites for the project while pur-
chase contracts had been signed and
training of workers was underway.
3
PAGE 3
German envoy urges Zambia
German Ambassador to Zambia Frank
Meyke says Zambia has the potential to
increase her exports to the European
Union.
Mr. Meyke says there is need for Zam-
bian business firms to work hard and
increase their trade capacity through
improved entrepreneurship skills.
He said this at the launch of training on
Trade and Export Promotion and Eco-
nomic Partnership Agreements for the
SADC region in Lusaka on Monday.
“Technical assistance to enhance do-
mestic production and trade capacities
has been identified as a key factor in
building the private sector and achieving
sustainable and equitable economic
growth. “ Mr. Meyke said.
He said that he was glad to launch the
“Train For Trade” programme as an ex-
ample of Germany’s response to chal-
lenges the country faces as landlocked
country.
And Zambia Development Agency Direc-
tor General, Mr. Andrew Chipwende says
Zambia has been recording improve-
ments in penetrating the EU export mar-
ket. Mr. Chipwende said Zambia's non-
traditional exports to the EU have been
on the increase over the years.
He explained that Zambia managed to
record a steady growth of 18.8 per cent
in nontraditional export earnings from
U$1.28 million in 2008 to U$1.43 in
2009, “a positive trend that should be
enhanced through value addition to com-
pete effectively in both regional and
international markets.”
Mr. Chipwende said that Zambia’s fore-
going direct investment in 2009 was a
staggering U$9.5 billion or 74 per cent
of the Gross Domestic Product. At that
time Zambia was ranked 27 out of 141
economies covered by the foreign direct
investment index showing that the coun-
try had put in place robust economic
policies, a key ingredient in attracting
foreign direct investment.
Kapiri To Develop MFEZ and
Inland Port
The process of identifying land for pur-
poses of establishing a trading multi-
facility economic zone (MFEZ) and an in-
land port under the Triangle of Hope Pro-
gramme (ToH) in Kapiri Mposhi has be-
gan.
This was revealed to Spotlight Cont’d on P7
 Regional Spotlight
ISSUE 18
Deficient Energy Supplies Affect-
ing SADC Economies
Deficient energy supplies within the South-
ern African Development Community re-
gion have contributed significantly to its
economies' depressed global competitive-
ness rankings.
The World Economic Forum's latest Global
Competitiveness Index, which is indicative
of the health of a country's macro-
economic rudiments, showed that the
majority of SADC countries registered
negative 2010-2011 ratings in compari-
son to preceding 2009-2010 ratings.
In an interview, the Common Market for
Southern Africa (COMESA) Business Coun-
cil secretary general Mr. Trust Chikohora
indicated that the SADC region's down-
ward trend in global competitiveness was
attributable, among other things, to the
minimal energy supplies by its power pro-
ducers.
'The energy sector is crucial to any mean-
ingful development or economic activity,
and weak supplies have been having an
adverse impact on economic performance
within the region and here in Zimbabwe.
According to the World Economic Forum
index, South Africa's global competitive-
ness ranking moved to 54 down from the
previous figure of 45, while Botswana
shifted to 76 from a ranking of 66. Tanza-
nia was 13 points in the negative as its
ranking moved from 100 to 113, and
Zambia changed ranking to 115 from
112. Malawi went down six points to 125
from 119.
There have, however, been developments
in the SADC region concerning the en-
hancement of energy supplies, for in-
stance, according to reports from Zambia,
that country has secured funding amount-
ing to US$430 million from the China Exim
Bank and the Development Bank of South-
ern Africa (DBSA) expected to be released
this month for its Kariba North Bank Ex-
tension Project (KNBEP), which is being
undertaken by Sino-Hydro Corporation.
The Kariba North Bank Extension Project
is one of the targeted energy projects that
are being jointly coordinated by SADC, the
New Partnership for Africa Development
(NEPAD) and SAPP.
Zim PM Nods Indigenisation
Zimbabwean Prime Minister Morgan
Tsvangirai says a law to increase local
black ownership of foreign firms would
be implemented gradually and without
forced sales.
Zimbabwe’s government published regu-
lation earlier this year forcing foreign
owned firms, including mines and banks,
to transfer a 51% stake to black Zimbab-
weans, a move that divided the power-
sharing government and spooked inves-
tors.
"Remember, its willing buyer, willing
seller. There's no expropriation,"
Tsvangirai told a conference on Zim-
babwe's political and economic pros-
pects in neighbouring South Africa's
commercial capital.
Foreigners regularly cite the law as their
main concern about investing in Zim-
babwe, which is desperate for external
capital to rebuild the economy after a
decade of chronic mismanagement and
decline under President Robert Mugabe.
Mugabe told Reuters in an exclusive
interview earlier this month he will press
ahead with plans to transfer control of
foreign firms – including mines and
banks – to local blacks.
"What are being implemented are mini-
mum thresholds. You can't start with
51%," Tsvangirai said. "But you also
have to say how, over time, you are go-
ing to achieve the maximum threshold."
In the more immediate future, compa-
nies would have to adopt much lower
levels of black ownership while present-
ing a road map towards ultimate black
Zimbabwean majority ownership, he
said. Reuters
SA Finance Minister Sees No-
Mine-Nationalisation
Nationalising South Africa's mines is not
part of government policy, the country's
finance minister told Reuters on Thurs-
day, saying he does not expect any
change of policy on this issue.
Minister Pravin Gordhan also told
Reuters Insider that despite frantic calls
by trade unions for measures to curb the
country's rand currency, South Africa
would carefully study other countries'
experiences.
He was speaking ahead of a Sept 20 to
24 meeting of the ruling African National
Congress during which the government
would have to face down strident de-
mands by powerful trade unions.
Union federation Cosatu released a policy
paper, calling for a tax on short-term
capital flows, a reversal of steps to relax
currency controls and nationalisation of
some mines. But Gordhan said: "(Mine
nationalisation) is not government policy.
4
PAGE 4
AFDB to Finance Bots Economic
Review
The African Development Bank (AFDB)
will finance Botswana's economic melt-
down study following the world eco-
nomic crunch.
AFDB has reportedly earmarked $US
280 000 to undertake research on the
world economic crunch’s impact on Bot-
swana's economy. The research project
will start on 08 June 2011.
The appraisal of the research was done
on December 1st last year and the funds
were approved in the first week of June
this year.
Botswana Confederation of Commerce,
Industry and Manpower (BOCCIM) has
been tasked with the responsibility of
implementing the research project.
BOCCIM Corporate Manager Komissa
Burzlaff said the study will result in pol-
icy options and solutions to grow the
Botswana economy, specifically focusing
on diversification.
She said the expectation is that study
will enable both the government and
private sector to effectively prepare for
the future.
'Specific activities to be undertaken by
the project include, Review of mining
and Energy Projects, which entails look-
ing at possibilities of mining and energy
projects within the next decade, and
measures to ensure timely develop-
ment,' said Burzlaff.
She said the review will also extend to
analysing Botswana's economic Adjust-
ment for a post diamond era, specifically
focusing on the adjustment and policy
measures; develop a private and public
sector diversification response strategy.
'Expected outputs are the inception and
progress reports on the study, recom-
mendations from the study; organisa-
tions, public and private sector and the
general society well informed of the
economic impact of the global crisis as
well as explanatory measures,' said
Burzlaff.
BOCCIM also said on the whole, the
research aims at focusing on determin-
ing the impact of the crisis on the Bot-
swana economy, the post – crisis adjust-
ment period and Botswana diversifica-
tion response to this costly experience.
It is expected that the nation will be
informed of the research project in due
course and long before the implementa-
tion date. Southern Times
ISSUE 18
African Countries Lagging Behind
in ICT
Imported social and economic pro-
grammes have failed to enhance African
countries' rate of industrialisation and
there is need to realign present local
policies with regards to ICT-driven strate-
gies.
This came out of the Information and
Communication Technology (ICT) Africa
conference in Harare. African countries
have seen decades of imposed structural
adjustment policies that have fail-ed to
raise industrialisation levels on the conti-
nent. In view of the 2007 global financial
crunch, whose effects are still being felt
today there is widespread dissatisfaction
with the outcomes of extensively liberal-
ised markets.
Zimbabwe Open University Pro Vice Chan-
cellor Professor Gabriel Kabanda noted a
disparity between foreign-initiated devel-
opment schemes and the requirements
of the emerging markets, and instead
proposed local initiatives based on appro-
priate technologies.
“Many donor-driven initiatives that ex-
cluded both policy-formulation frame-
works and sustainable capacity building
have not brought meaningful develop-
ment in these African countries,” he said.
Government policies, donor interest and
community development needs are to-
tally divergent with respect to priority
areas for development. 'Africa needs to
break the under-development, poverty
and illiterate cycles in the long term and
exploit the vast resources available to
create wealth.
Extensive investment in technology and
human capital development as a vehicle
to exploit the vast mineral and natural
resources has not been given sufficient
attention.
AGOA to benefit Zambia
Government says it will take advantage
of its chairmanship of the African Growth
and Opportunity Act AGOA to gain full
trade benefits and opportunities.
Commerce Permanent Secretary Buleti
Nsemukila says this will be done through
the creation of linkages with businesses
in the United States. He disclosed that
the Zambia Development Agency - ZDA- is
already spearheading the trade mission
to the US. He was speaking at an AGOA
Stakeholders meeting.
US Ambassador to Zambia Mark Storella
said Zambia's trade will not succeed with-
out the involvement of the Private Sector.
South African investors swarm
Zambian sectors
More than14 South African investors
have shown interest in investing in agri-
culture, tourism, mining and manufac-
turing of hospital equipment in Zambia,
South African High Commissioner to
Zambia Moses Chikane has disclosed.
Mr. Chikane said a group of South Afri-
can investors were last week in Zambia
and visited several areas including the
Copperbelt Province on a fact finding
mission and that most of them after a
tour indicated their interest in investing
in Zambia.
Speaking in an interview in Kapiri
Mposhi, Mr. Chikane said he is confident
that the investors would soon be back to
conclude discussions with the Zambia
Development Agency (ZDA) on areas of
their interest.
“I can confirm that a team of investors
from South Africa were last week in
Zambia to explore investment opportuni-
ties and after their tour of duty they
showed interest in coming back to un-
dertake their projects, ”he said.
He said his office has of late been
flooded with queries most of them seek-
ing information on investment opportuni-
ties in Zambia and paid tribute to the
Zambian Government on its good poli-
cies on foreign investment. Times of
Zambia
What Will You do For Peace?
Conflict is the greatest impediment to
sustainable development in Africa. The
economic toll is also devastating. Esti-
mates have pointed to a combined eco-
nomic loss of around $300bn since
1990 by African countries affected by
conflict. With an average annual loss of
around $18bn as a result of wars, civil
wars, and insurgencies, armed conflict
shrinks a nation’s economy on average
by 15 per cent according to an estimate
considered conservative.
To address this scourge the African con-
tinent, on September 21, joined with the
rest of the world to celebrate the Inter-
national Day of Peace (Peace Day).
Every year since 1982, that day has
provided a rallying point for the United
Nations and its member states, but also
for civil society, private sector and indi-
viduals, to join forces to advance global
peace.
On that occasion, African Heads of State
5
PAGE 5
and Government outlined their collective
commitment to bring peace to the conti-
nent: “…We are determined to deal once
and for all with the scourge of conflicts
and violence on our continent, acknowl-
edging our shortcomings and errors,
committing our resources and our best
people, and missing no opportunity to
push forward the agenda of conflict pre-
vention, peacemaking, peacekeeping
and post‐conflict reconstruction. We, as
leaders, simply cannot bequeath the
burden of conflicts to the next genera-
tion of Africans.”
Peace Day is the symbolic focus of this
commitment. While peace cannot be
achieved in a day, September 21 never-
theless affords Africans the opportunity
to celebrate notable successes in the
realm of peace‐building and to put
peace in practice through a collective,
cooperative moment of unity. A cessa-
tion of hostilities on Peace Day allowed
humanitarian agencies to dispense life‐
saving medicines and provide inocula-
tions and other humanitarian assistance
to communities which would otherwise
be inaccessible.
More importantly, Peace Day created
hope for a better future for the entire
continent. The activities of a single day
can energize Africans from all walks of
life, helping to generate a widespread
grassroots peace movement across the
continent. And that up swelling of de-
mand for peace, and actions to make
peace happen, may indeed help fulfill
our common promise of a conflict‐free
Africa.
More than 1,800 attend World
Investment Forum
In the Opening Ceremony, eminent
speakers, including the Secretary-
General of the United Nations (via video
message), the President of Iceland, the
Prime Minister of Mozambique and the
Vice-President of China, stressed the
important role that private investment
needs to play in tackling the effects of
global warming and promoting a sus-
tained economic recovery, crucial to
achieving the UN’s Millennium Develop-
ment Goals.
The Vice President of China, H.E. Mr. Xi
Jinping, used the platform to emphasise
China’s global engagement through
foreign investment and announced an
important policy position towards na-
tional treatment in government procure-
ment. All speakers praised UNCTAD for
upholding the theme of investment for
sustainable development.
ISSUE 18
Zamtel Restructuring on Course
The Zambia Telecommunication Com-
pany (Zamtel) company is currently go-
ing through a restructuring process and
is refocusing. As of 27th September
2010, 2510 (99.92%) of the former
employees were paid their retrenchment
and terminal packages amounting to
U$101.9 million.
The privatisation of Zamtel has intro-
duced a strategic partner, Lap GreeN, in
Zamtel to bring new technology, inject
fresh capital, restructure the company
and improve the provision of telecom-
munication services.
The decision was made in the interest of
the nation, employees, customers, sup-
pliers, lenders and Government.
The company has also made substantial
savings by reducing the workforce to
only 800 employees. This and other
developments such as correcting the
pension fund deficit indicate Lap
GreenNs’ commitment to the terms of
the privatisation agreement.
Furthermore, Lap GreeN has already
invested U$64 million in the company
allowing it to be recapitalized, bringing in
growth and development that will up-
grade Zamtel’s services and improve its
infrastructure. Lap GreeN has success-
fully turned around other enterprises in
Uganda and Rwanda.
Already the privatisation of Zamtel with
broader sector reforms has brought the
cost of international calls down by 70%
and local interconnection rates have
also followed suit.
BOI Awarded for Excellence in the
Promotion of Green Investment
At the World Investment Forum 2010 held
in Xiamen, China, the Board of Investment
(BOI) clinched the Second Equal Winner
accolade in the ‘UNCTAD Investment Pro-
motion Awards 2010’ for excellence in the
promotion of Green Investment.
Mauritius shared this global recognition
with Denmark for its efforts to attract
investors in renewable energy and to
create awareness on sustainability. H.E.
Mr. Paul Chong Leung, Ambassador of
Mauritius to the People’s Republic of
China received the award on behalf of the
Board of Investment on 8 September
2010.
For the 2010 edition of the Award, par-
ticular attention was drawn to the key role
that investment promotion agencies
(IPAs) can play in fostering environmen-
tally sustainable development. BOI
ZDA Pushes for SME Growth – Njanji Best Under PPP
from Page 1
trading across borders, such as border
crossings, airport facilities and storage.
That is the area we are trying to address
both in terms of the institutions that are
involved, as well as attracting invest-
ment to address those deficiencies,” Mr.
Chipwende said.
The multi facility economic zones are
also playing a key role in making it eas-
ier to do business in the country. The
zones will provide a whole range of infra-
structure support necessary to conduct
business thereby decreasing the cost of
entry. The distinction of the country’s
zones compared to other zones is that
the fiscal support that is available to
industry is not limited to the economic
zones. This is provided countrywide re-
gardless of where one is operating.
Mr. Chipwende told the journalists that
the implementation of the Chambeshi
MFEZ was moving at record speed with
a target of value addition and an esti-
mate of about 50 key companies to be
located in the zone by 2015.
“There is no reason why exports from
that zone cannot hit the U$500-U$600
million mark by that time, while employ-
ing 12,000 direct employees,” he said.
Commenting on the one stop border
posts that have recently been devel-
oped, Mr. Chipwende noted that the
ease of trading across borders had been
successfully implemented to reduce 75
per cent of the bottlenecks at borders
that had to do with regulations. He
urged the government to quickly estab-
lish the fast-track regulations to reduce
the cost of doing business.
‘For us to grow our enterprises, we have
to look across the borders, which means
aspects of trade come in.”
With a population of twelve million peo-
ple and a GDP of U$14 million Zambia
needs to look beyond its borders. Bodies
such as COMESA, SADC and EAC provide
platforms for the integration of Zambia
to integrate its development pro-
grammes.
The creation of the ZDA has further con-
tributed to the benefits the country is
witnessing but the driving force lies
more in the macroeconomic policy
framework that has been implemented
by government and facilitated by busi-
ness reforms. “The merger of the five
intuitions played a part but what counts
for 98 per cent of the results are the
broader macroeconomic policy reforms,”
he said.
6
PAGE 6
THE Government is working out best
structured modalities under the public-
private partnership (PPP) initiative to
combine resources to make Njanji Com-
muter Services operational due to its
complexity.
The Zambia Development Agency (ZDA)
is spearheading the assessment of the
14 kilometres stretch railway line with
various key ministries and the local au-
thorities.
ZDA director general Andrew Chipwende
said in an interview that the ZDA board
met recently to discuss the future of
Njanji Commuter Service and proposed
that the concessioning of the firm be
done under the PPP concept.
Mr. Chipwende said the board noted a
number of contentious issues when it
reviewed the recommendations made by
the evaluation team such as title deeds
and access to the railway line.
He said the issue involves both internal
and external intervention because it
might entail demolishing some struc-
tures to pave way for the works and,
subsequently, matters of compensation
will have to be addressed. 
ZDA Promoting  Kaizen 
Zambia Development Agency (ZDA) has
developed a five-year plan that will facili-
tate the establishment of the National
Kaizen Institute to carter for improved
training in the region.
Kaizen is an effective business method
to improve productivity and service deliv-
ery, which was adopted from Japanese
manufacturers like Toyota.
Speaking during the Kaizen mid-term
seminar in Lusaka, ZDA director general,
Andrew Chipwende said the Kaizen ini-
tiative would help improve performance
across sectors, bringing benefits to the
country. He said Kaizen would lead to
increased productive levels, advanced
technology and ultimately improve the
country’s economy.
Commerce, Trade, and Industry Perma-
nent Secretary, Dr. Buleti Nsemukila
said the implementation of Kaizen activi-
ties had started in the country. He said
Kaizen would lead to increased produc-
tive levels, advanced technology and
ultimately improve the country’s econ-
omy.
 Zambia Development Agency SELECTED ECONOMIC INDICATOR August 2010
August 2009
P.O Box 30819
1. Inflation rate (%) 14.3 8.2
Nasser Road 16.1 5.4
2. Average Treasury bills rate (%)
Lusaka, Zambia 3. GRZ Bond Yield Rate: (24-month) (%) 18.4 9.5
4. Average Lending Rate (%) 29.5 27.1
5. Exchange Rates: (ZMK/foreign cur-
rency)
Tel: 260-211-229241 4,800 5,950
US$
Fax: 260-211-225270 EURO 6,900 6,300
E-mail: zda@zda.org.zm BPS 7,900 7,700
RSA 610 670
Website: www.zda.org.zm 6. Agriculture Commodity Prices:
(US$/MT)
Maize - 185
Wheat - 170
Soya beans 330 -
7. Capital Market Activity
Equity trading:

Number of Trades 670 452

Volume of Trade 315,429,250 22,662,991

Turnover (US$) 5,840,000 4,406,000

Foreign Portfolio Investment (US$)
Inflows (Buying) (US$) 76,000 1,520,000
Outflows (Selling) (US$) (2,520,0000 (1,441,000)
Construction of the 50 kilometre road
Net Position (US$) (2,444,000) 82,000
network in the Lusaka South Multi-
facility Economic Zone is underway. This 8. Price of LME 329
picture shows work being undertaken on Copper (US$/Lb) 280
the Chifwema access road to the MFEZ. Cobalt (US$/Lb) 14.9 19.0

Source: BoZ, CSO, LuSE, Zamace

Kapiri to Develop Trading MFEZ
& Inland Port- from Page 3
by ZDA ToH focal point person, Shadreck
Saili. A team of experts from Ministry of
Commerce Trade and Industry, Ministry of
Transport and Communications , ZDA and
the ToH project undertook a land identifi-
cation programme at the end of Septem-
ber in order to establish a trading MFEZ
and an inland port.
“This exercise was a result of Kapiri Coun-
cil Secretary, Mr. Venture Kafula’s confir-
mation to ZDA that three possible sites
were available for verification,” he said.
The sites that were inspected were the
Tazara Corridor, Kapiri East and Kapiri
North. “The identification process has
began and indications are that Kapiri
Mposhi is ideal for an inland port.”
The next step will be the development of a
layout map by the council and numbering
the actual area. Other requirements would
be addressed by ZDA and Ministry of com-
munications in consultation with possible
investors.
A Trading MFEZ is an area or premises that
has been declared a multi-facility eco-
nomic zone for commercial purposes. A
statutory instrument issued by the Minister
of Commerce Trade and Industry will fur-
ther prescribe terms and conditions of the
activities to take place in the zone.
Roma Industrial Park to be
Launched Next Year
Construction works at the Roma Indus-
trial Park have reached an advanced
stage with the fencing completed while
the access and boundary roads are al-
most complete.
The development of the industrial park
will cost more than U$10 million and is
expected to be launched in April 2011.
Mpangwe Mutwale, Director Afritec, the
property developers of the industrial
park, says Roma Park will be a landmark
development that will attract investment
and contribute to economic develop-
ment of the country.
“We are very excited with the progress
so far and we want to thank the Zambia
Development Agency, the Ministry of
Commerce as well as Finance and the
government in general for their support
and facilitation of the project," said Mr.
Mutwale.
The industrial park will have a commer-
cial area, industrial unit and residential
estate, which will focus on completed
housing. The park covers an area of
about 200 hectares and is located in
Roma residential area in Lusaka.
Infrastructure Deficit Deters For-
eign Investment in Africa
Economic growth in Africa is expected to
reach 6 per cent in 2011, but the conti-
nent continues to battle to attract for-
eign investment, a world bank econo-
mist has said.
Africa only draws about half the private
foreign investment that China attracts,
at around 15 per cent of the continent’s
gross domestic product (GDP) growth.
Speaking at a lecture at the University of
Witwatersrand in Johannesburg, World
Bank African chief economist Shantaya-
nan Devarajan said that this was mainly
as a result of infrastructure and educa-
tional deficit playing a deterring role.
Interestingly, he pointed out these defi-
cits were rather being brought on by
governmental failures rather than capi-
tal.
Nevertheless, Devarajan said that the
continent had made some “impressive”
strides in the past two decades as far as
policy reform goes. “Overall, the progres-
sive political decisions over certain eco-
nomic policies that previously hindered
growth had significantly improved across
the continent.”