An Overview Official Presentation of the CBL-ACP Multi-Sectoral - - PowerPoint PPT Presentation

Official Presentation of the CBL-ACP Multi-Sectoral Economic Mission to Zambia

26th November, 2018 - Brussels

Embassy of the Republic of Zambia, Brussels

ZAMBIA ECONOMIC OPPORTUNITIES

An Overview

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Presentation Outline

Business Environment Why Invest in Zambia Economy by Numbers

Multifacility Economic Zones/Industrial Parks Investor Facilitation & services offered:

Zambia Development Agency(ZDA)

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Location Market Incentives Priority Sectors Contact details

WHY INVEST IN ZAMBIA?

1.Political stability, peace and democracy 2.Adherency to rule of Law, positive and investor friendly environment

• 3. Investment guarantees and Security

4.Abundant natural resources presenting excellent investment and trade

• pportunities

5.Private Sector driven Government Economic Development Policy in place 6.Attractive Investment Incentives 7.No exchange controls and repatriation of 100% of profits since 1994 8.Duty free access to regional, wider Africa, EU and USA Market. 9.Progressive Banking legal and Insurance Services of International standards 10.Good place to work and live, friendly people with rich culture.

STRATEGICALLY LOCATED – Land Linked

Nairobi – 2hrs 45mins Harare – 45mins Dar-es-Salaam –2hrs Johannesburg –2hrs Addis Ababa – 4hrs Dubai – 6hrs 30mins

By Road By Air By Rail

– 5 hrs

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

ECONOMY AT A GLANCE

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

GDP : $ 29 billion Per Capita: $1, 613 GDP Growth Rate 5%

(2018 Projection)

Inflation (CPI) 8.1% (August 2018) Exchange rate K12.2/1 US$ (Sept 2018)

Area: 752,614km2 Population:17 million

MARKET :Gateway to an Untapped growing regional market

SADC 2017

• Approx. 342 million People

Real GDP US$689.3 Billion

Source: http://www.sadc.int

EAC 2017

• Approx. 145.5 million People

Real GDP US$147.5 Billion

Source: EAC Secretariat

COMESA 2017

• Approx. 450 million

People Real GDP US$561 Billion

Source: www.comesaria.org

Tripartite Free Trade Area (TFTA):

• integrated market
• 26 countries
• Population of 650 million

people

• Approx. GDP of $1.3 Trillion

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Ot Other

M a M a r r k k e e t t

Op Opportunities in include;

• EU

EU through EB EBA

• US

USA thr hrough h AGOA in init itia iativ ive

• Ca

Canadia ian, Ch Chin inese se & & Ja Japanese Market Access In Initiative ves

Business Environment Reforms

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Zambia’s notable rankings in 2018 as a result of Business reforms improvements are: 1. Ease of Doing Business - World Bank (2018) Ranked 85th in World. Ranked 4th in SADC Region Ranked 4th in COMESA Ranked 6th in Sub-Saharan Africa

• 2. Doing business – World Bank (2018)

Zambia is in the top 10 economies showing most notable improvement in Doing Business in the world.

Tax Incentives

• Corporate Income Tax : 0% for 5 years
• Zero percent tax rate on dividends for 5 years
• No Import Duty on equipment and machinery for

five years

2

Location Support

• Multi Facility Economic Zones
• Industrial Parks
• Rural Area

INVESTMENT INCENTVES

Non-Tax Incentives

• Free facilitation for application of permits,

licenses, land acquisition and utilities

3 1

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

INVESTEMENT INCENTIVES

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

TAX INCENTIVES

• Manufacturing & Energy: Accelerated depreciation for capital

expenditures plus zero percent duty on imported capital goods

• Agriculture: Corporate tax at 10% plus 0% duty rate on capital goods
• Agro processing: Corporate tax at 10% plus 0% duty rate on

imported capital goods

• Construction (Education, health, Tourism, Housing, Agriculture,

Energy & Water Dev) : 0% duty rate on imported capital equipment & machinery

All tax incentives except corporate tax in Agriculture and agro- processing are for first five years at minimal investment of $500 000.

Agriculture Manufacturing Tourism Energy Priority Sectors

Infrastructure Development

PRIORITY SECTORS

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Mining

Total land area: 75 million hectares Arable land: 42 million hectares (58%) but only 14% is currently being utilized Total irrigation potential: 2.7 million hectares; only 6% is currently being utilized Sector includes livestock, crops, fisheries and forestry. Investment opportunities exist in; Farm blocks: (100,000ha) in Ten Provinces

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

• Animal breeding centre - 44,000 hectare of farm land.
• Development of 786 hectares of Eucalyptus and 300 hectares of

Pines to support pole treatment to bring value addition to forestry products.

• Farm block for commercial Cotton farming in Lundazi, Eastern
• Province. A total of 54,200 ha of customary land has already been

secured, with access roads and electricity already available.

• Establishment of livestock breeding and artificial insemination

centres across the country. (cattle, sheep and goats among others)

• Cage fish farming ventures on the Lakes Meru and Bangweulu. Five

sites have been identified whilst land for processing and storage facilities has been reserved.

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

q Energy sources include: electricity, petroleum, coal, biomass, and renewable energy. q Demand for electricity in 2017-2018 is expected to exceed 2000MW q Investment opportunities; 1. Solar Energy Projects (over 3,000 sunshine hours annually) 2. Geo-thermal plant 3. Biofuel Energy Projects 4. Hydro Power: There are a number of projects @ pre feasibility or feasibility stage. 5. Petroleum (Demand for petroleum exceeds 52 million litres per month)

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

q Tourism is one of the fastest growing sectors in Zambia q Key Tourism products include: Water falls, national parks and game management areas, and heritage sites. q Investment Opportunities: 1. Development of an ultra-modern multi-purpose conference facility. 2. Development of 4-5 hotels 3. Development of pleasure resorts and Lodges in national parks, 4. Development of the Northern Circuit (current bed space +/- 22 000 Vs potential demand +/- 35 000 to 40 000. deficit excess of 10 000)

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

q Government invites the private sector to finance infrastructure projects through PPP q Investment opportunities: 1. Agriculture: Grain storage facilities 2. Transport: Road projects, Mass railway, inland to ports railway, bridges, Airports and Provincial Aerodromes etc 3. Real Estate: housing units, hotels, sports facilities etc. (Housing deficit of 1.3 million likely to grow to 3 Million by 2030) 4. Industrial structure: MFEZs, Industrial parks, Farm blocks 5. Health: Hospitals, clinics (growing demand for specialized hospitals) 6. Education: Schools, colleges, universities (Limited private universities) 7. Tourism: Hotels, convention centres

To support industrialisation and job creation: qEstablishment of Agro-processing factories in line with Farm Blocks qEstablishment

• f

Industrial Parks and Multi Facility Economic Zones in all the provinces qEstablishment of steel Industrial Park in Kafue District of Lusaka Province

v Agro-processing opportunities in all regions of the country: Maize,

Cotton, Tobacco, Beans and Groundnuts processing; Aquaculture, Cassava and Maize processing; Beef, Dairy and Meat Processing; Pineapple canning, Honey production, Agro forestry, Coffee; Rice and maize (Cereals and mill) processing; Tobacco, Rice and Cashew Nuts processing; Wheat, Soya, Sunflower and Maize; Rice, Sugar cane, Beans

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

EXISTING

• 1. Lusaka South
• 2. Lusaka East
• 3. Chambishi
• 4. Lumwana
• 5. Sub Sahara Industrial Park
• 6. Roma Industrial Park

TO BE SET UP

• 1. Kafue Iron and Steel
• 2. Kalumbila
• 3. Kabwe
• 4. Every province

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Targeted Industries: 2100 Hectares

v Research and Development Institutions v High Technology Industries v Commercial Institutions v Agriculture and Agro Based Industries v Professional, Medical, Scientific and Measuring Services v Education & Skills Training Institutions v Packaging & Printing Industries

v Packaging & Printing Industries v Palm Oil Production & their Derivatives v Processing of Gemstones v Pulp & Packaging Boards v Diagnostic & Medical Services v Electrical & Electronic Appliances Industries v Real estate development in Housing, commercial, amusement parks, golf estate, hotels and conferencing centres and factories

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Some Successful Investors in Zambia

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Provide information

• n markets

and industries Assist in Land acquisition for investment Assist in seeking business partners Advise on Investment incentives Arrange meetings with government ministries Provide immigration & administrative support services Comprehensive support to foreign & local investors

INVESTOR FACILITATION & SERVICES OFFERED:

ZAMBIA DEVELOPMENT AGENCY(ZDA)

ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels

Export Development Investment facilitation

THANK YOU!

• Mr. Henry Ngilazi

Charge d’Affaires Embassy of the Republic of Zambia, 469 Avneue Moliere 1050 Brussels, BELGIUM Tel: +32 2 343 5649 Fax:+32 2 347 4333 Website: www.zebru.org Email: gov@zebru.org The Director General Zambia Development Agency Privatisation House, Nasser RD P.O. Box 30819, Lusaka, ZAMBIA. Tel: +260 211 220177 Fax: +260 211 225270 Website: www.zda.org.zm Email: info@zda.org.zm

CONTACTS FOR FURTHER INFORMATION: Embassy of the Republic of Zambia, Brussels Zambia Development Agency ZAMBIA LAND OF BOUNDLESS INVESTMENT OPPORTUNITIES Embassy of the Republic of Zambia, Brussels