Embassy of the Republic of Zambia, Brussels ZAMBIA ECONOMIC OPPORTUNITIES An Overview Official Presentation of the CBL-ACP Multi-Sectoral Economic Mission to Zambia 26 th November, 2018 - Brussels Embassy of the Republic of Zambia, ZAMBIA LAND OF BOUNDLESS Brussels INVESTMENT OPPORTUNITIES
Presentation Outline Why Invest in Zambia Location Economy by Numbers Market Business Environment Incentives Priority Sectors Investor Facilitation & services offered: Zambia Development Agency(ZDA) Multifacility Economic Zones/Industrial Parks Contact details Embassy of the ZAMBIA LAND OF BOUNDLESS Republic of Zambia, INVESTMENT OPPORTUNITIES Brussels
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 opportunities 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 By Road Nairobi – 2hrs 45mins Harare – 45mins By Air Johannesburg –2hrs Addis Ababa – 4hrs Dar-es-Salaam –2hrs By Rail Dubai – 6hrs 30mins – 5 hrs Embassy of the ZAMBIA LAND OF BOUNDLESS Republic of Zambia, INVESTMENT OPPORTUNITIES Brussels
ECONOMY AT A GLANCE Inflation (CPI) 8.1% GDP : $ 29 billion (August 2018) Per Capita : $1, 613 Exchange rate GDP Growth Rate 5% K12.2/1 US$ (Sept (2018 Projection) 2018) Area: 752,614km 2 Population: 17 million Embassy of the ZAMBIA LAND OF BOUNDLESS Republic of Zambia, INVESTMENT OPPORTUNITIES Brussels
MARKET : Gateway to an Untapped growing regional market Tripartite Free Trade Area (TFTA): SADC 2017 • integrated market Approx. 342 million People Real GDP US$689.3 Billion • 26 countries Source: http://www.sadc.int • Population of 650 million people • Approx. GDP of $1.3 Trillion EAC 2017 Approx. 145.5 million People Opportunities Real GDP US$147.5 Billion Op t t e e k k Source: EAC Secretariat r r a a M M Other include; Ot in EBA EU through EB h AGOA EU hrough USA thr • US COMESA 2017 & se & • ive iativ inese itia Chin init ian, Ch in Japanese Market Access Approx. 450 million Canadia Ca People • Ja Real GDP US$561 Billion ves Initiative In Source: www.comesaria.org Embassy of the ZAMBIA LAND OF BOUNDLESS Republic of Zambia, INVESTMENT OPPORTUNITIES Brussels
Business Environment Reforms Zambia’s notable rankings in 2018 as a result of Business reforms improvements are: 1. Ease of Doing Business - World Bank (2018) Ranked 85 th in World. Ranked 4 th in SADC Region Ranked 4 th in COMESA Ranked 6 th 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. Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES Brussels
INVESTMENT INCENTVES Tax Incentives 1 • 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 Non-Tax Incentives 2 • Free facilitation for application of permits, licenses, land acquisition and utilities 3 Location Support • Multi Facility Economic Zones • Industrial Parks • Rural Area Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES Brussels
INVESTEMENT INCENTIVES 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. Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES Brussels
PRIORITY SECTORS Manufacturing Tourism Energy Agriculture Priority Sectors Mining Infrastructure Development Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES Brussels
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 Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES Brussels
• Animal breeding centre - 44,000 hectare of farm land. • Development of 786 hectares of Eucalyptus and 300 hectares of P ines 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) • Cag e fish farming ventures on the Lakes Meru and Bangweulu. Five sites have been identified whilst land for processing and storage facilities has been reserved. Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES 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) Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES 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) Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES 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 Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES Brussels
To support industrialisation and job creation: q Establishment of Agro-processing factories in line with Farm Blocks q Establishment of Industrial Parks and Multi Facility Economic Zones in all the provinces q Establishment 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 Embassy of the Republic of Zambia, ZAMBIA LAND OF BOUNDLESS INVESTMENT Brussels OPPORTUNITIES
EXISTING TO BE SET UP 1. Lusaka South 1. Kafue Iron and Steel 2. Lusaka East 2. Kalumbila 3. Chambishi 3. Kabwe 4. Lumwana 4. Every province 5. Sub Sahara Industrial Park 6. Roma Industrial Park Embassy of the ZAMBIA LAND OF BOUNDLESS INVESTMENT Republic of Zambia, OPPORTUNITIES Brussels
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