ZAMBIA – Land of OPPORTUNITIES & PROFITS

ZambiaDevelopment
AgencyPresentation Strategy
Strengths of Zambia
Key Investment Consideration
Zambia from a Foreign Perspective
Sectors of focus for Investment
Why Invest in Zambia

Area:
752,614km2 (39th)
Population:
14.1 million (71st)
GDP (PPP):$24.714 billion
Per Capita:$1,752
GDP Growth Rate 6.6%
2013
Trade Export:$10.434bn 2013
(f.o.b) Import:$9.414bn

Inflation (CPI): 7.0% (Dec 2013)
Unemployment: 14% (2013)
Fiscal Deficit:• Overall Balance : 4.3% of GDP
External Debt: $3.1 Billion (Sep. 2013)

Zambia by Numbers

Foreign Exchange Reserves• $1.892 Billion (Dec.2013)

Strategically Located
KENYA
By RoadOrganized Regional Roads

By AirThree Intl. Airports

By RailInter-connected rail

RSA

At the Centre of Two Regional Markets
Untapped growing regional market

SADC
Approx. 277million people
GDP US $ 575.5 billion

ZambiaCOMESA
Approx. 459 million people
GDP US $ 508 billion

Economic Growth
2003 - 2014

5.1

5.4

5.3

2003

2004

2005

6.2

6.2

2006

2007

5.7

2008

6.6

6.4

2009

2010

7.8

7.7

7.6

2011

6.6

2012

2013

2014

Source: Central Statistics Office

GDP growth forecast for 2014 is 7.8 %

17.5

16.6

15.9

9.9
8.2

2004

2005

2006

8.9
7.9

2007

2008

2009

2010

7.2

7.3

72011

2012

2013

6.5

2014

Source: Central Statistics Office (CSO)

Trend in Annual Inflation Rate (%)
for the period 2004 – 2014eTrend in FDI Inflow (Million US $)for the period 2000 – 20131731.6 1765
1500
1324
1100
939

959

615.8
298.4 347

364 356.9

121.7 71.7
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: World Investment Report 2012

FDI Stocks by Source Country (Million US $)for the period 2011 – 2012
OtherMauritius

2012

Bermuda2011

Switzerland
Netherlands
South Africa
China
United Kingdom
Australia
Canada0500

1000

Source: Foreign Private Investment & Investor Perceptions Survey 2013

1500

2000

2500

3000

In Top 15 African countries that attracted

82% of new FDI Projects since 2003
% share of total

924

New projects

827

17.9

16.0

563

537

10.9
10.4

328

317

307

6.3

6.1

5.9

282
5.5

207

178

4.0

141

134

128

119

2.7

2.6

2.5

2.3

3.4

South Africa

Egypt

MorrocoAlgeria

Tunisia

Nigeria

AngolaSource: fDI Intelligence, data as of 3 February 2012: Ernst & YoungKenya

Ghana

Libya

UgandaTanzania

Zambia96
1.9Mozambique80
1.5
Botswana

Othercountries inAfrica

Among the Top 10 Fastest Growing Economies

Africa’s Leading Copper Producer,

7 in the Worldth

5.37

Chile

1.5

China

1.2

PeruUSA

1.1

Australia

0.97

Russia0.72

Zambia0.675

Congo DR

0.58

Canada0.53

Mexico0.5

Data Source: www.copperminingnews.com (2012)

TARGET

1.5 million
tonnes by2015

Stable Political and Social Environment

Index of African Governance out of 52 Countries
2012 Rank

2013 Rank

Categories considered in the rank; Safety & rule of law
 Participation & human rights
 Sustainable economic development
 Human development
Source: www.moibrahimfoundation.org

ZAMBIA

Source: Ernst and Young: Africa-By-Numbers 2012

Ease of Doing Business
HEAT MAP

Map depicting the relative
ease of doing business acrossAfrica(on a scale from green being
relatively easier to red being
the most difficult)
Data Source: Ernst and Young: Africa-By-Numbers 2012

World Bank’s Doing Business 2014
Ranking for ease of doing business (out of 189 economies)

106

200899200990

2010

80

84

2011

2012

94
8320132014

5th in Sub Sahara Africa
3rd among SADC Countries (1st – Mauritius, / 2nd RSA / 3rd Zambia)

Profitability in Zambia (US$ Millions)
SectorReturn on Equity (%)

Accommodation and Food

15.7

Agriculture, Forestry & Fishing

14.5

Administrative & Support Service

6.0

Deposit taking Corporation (Banks)

6.9

Electricity, Gas, Steam

16.6

Information, Communication

9.2

Manufacturing

34.9

Mining and Quarrying

15.1

Professional, Scientific and TechnicalServices

193.3

Real Estate

17.2

Transport & Storage

13.9

Wholesale and Retail

36.3

Source: Foreign Private Investment & Investor Perceptions Survey 201310000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0

2006
NTEs

2007

2008

2009

2010

2011

2012

Metal Exports

Export Performance (Million US$)2006 -2012

Imports (Million US $)for the period 2006 – 2013
8888

Main Imports include; Petroleum products Industrial Vehicles, Equipment &Machinery Motor Vehicles
 Chemicals
3622.39414

6454.24709.94555
3413.42625.1

2006

2007

2008

2009

2010

2011

2012

2013

1

Tax Reduction• Corporate Income Tax : 0% for 5 years• Import Duty on Capital Goods, Machinery &Specialised vehicles

Support2 Location• Multi Facility Economic Zones••3Industrial Park
Rama AreaOthers• Assistance in getting Government approvals• Identification of local suppliers

Investment Incentives

Routes to Investing in Zambia

1243

Mining
Agriculture
Gemstone

Investment attractivenessHigh

Retail & Trade

Industrial Minerals
Engineering Products
EnergyMinerals
Agro Processing
Tourism
Horticulture

Manufacturing
Infrastructure
EnergyMedical / Health
Education

Infrastructure
EnergyLowHighDevelopmental Impact

Investment Opportunities
still exist………
Tourism

Zambia Heritage speedometer

Manufacturing
Agriculture

EnergyKeySectors

Infrastructure

Energy Sector
Zambia’s growing economy requires efficient electricity
supplyIncreasing demand for energy, especially by mines,
projected to exceed existing capacity in next few years
Existing transmission network is ageing
Government focus is to develop new capacity by
investing and attracting private sector investment in: Large projects such as Kariba North Bank
Extension, Itezhi Tezhi and the Kafue Gorge
Lower Smaller projects like Kabompo and Kalungwishi
and mini hydro stations in Lunzuwa, Chishimaba,
Lusiwasi and Musonda Falls.

Tourism Sector
Zambia’s Potential

 Endowed with a vast variety of wildlifespecies
 20 national parks and game reserves
 Spectacular sites such as VictoriaFalls
 Rich cultural heritage Home to Africa’s 2nd largest park –Kafue National Park.

Government’s focus – topromote the sector throughdevelopment of essential infrastructure.
Top of the list – promoting thedevelopment of; Kasaba Bay (Northern Circuit) and Livingstone Tourism Zone

Manufacturing Sector
Zambia’s manufacturing base is narrow• Excessive import dependence• Most mining inputs are imported fromSA
Government focus has been on
facilitating creation of economic zonesand industrial parks:
Land identification, Infrastructure provision(roads, water and sanitation, electricity)• Chambeshi Zone has commenced
operations• New Zones in Lusaka-East,• Lusaka-South and Lumwana are inprogress

Infrastructure Sector
Construction and maintenance of roads
Development of a various inland ports
and logistics centres at:• Chipata• Kapiri-Mposhi

Development of 2,500 km stretch ofrailway lines• Mpika – Chipata : Tazara railway
connection (Tazara corridor)• Mulobezi- Namibia – Livingstone –Kazungula- Sesheke (north-corridor)• Kafue-lions den in Zimbabwe (Beiracorridor)• Intra-city l• Lusaka mass transit system• Nseluka – Mpulungu railway connection

Agriculture Sector
Abundant Land;
27 million hectares of arable land
9 million hectares under cultivation
Vast water resources;
40 percent of water resources in the SADC
regionGovernment focus: - to encourage
investment of large scale and commercialfarmers.

Model of choice: farm blocks with readyinfrastructure such as roads, water and electricity• Nansanga Farm block (120,000 hectares)
completed & has been advertised:• Luena and Kalumangwe farm blockpreparation in progress (approx. 100,000
hectares each)Successful Investors in Zambia

ZDA Support SystemSUMMARY
10 Reasons to Invest in Zambia
1 Stable Political System

6

Attractive investment incentives

7

Unlimited repatriation of profits

8

Duty free access to regional, wider
Africa, EU and USA Market.

Abundant natural resources presenting
4 excellent investment and tradeopportunities

9

Progressive banking, legal and insurance
services of international standards andstock exchange.

5 Thriving private sector

10Good place to work and live friendly
people with a rich culture.

2Positive and investor friendly economicenvironment

3 Investment guarantee and securities

A-to-Z information on the Zambian
marketGuidance through the entire export andinvestment process and aftercare
Provision of matching Zambia partners
and building contact networks
Global export market information &product development
SME & business development services

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