Zda Spotlight

Zambia
Development
Agency

Issue 14 May 2010

Inside this issue:

BUSINESS REFORMS REWARD ECONOMY
CAD Fund to Open 2 registration from about 21 to
Office in Zambia 4 days,” Mr. Chipwende said.

“Zambia’s Economic 2 He said Zambia’s position

Outlook Impressive” in most world rankings
such as the World Competi-
Zambia, China Sign 3 tiveness Report, Ease of
US$5bn Investment Doing Business, Technol-
ogy Readiness Ranking,
COMESA-EAC-SADC 4
and Ease and Access to
Create TITA Credit have been enhanced
by the business reforms
PFI Launched in 5 government was imple-
Zambia menting, making the coun-
“Zambia’s Exports to 5 try more competitive to
Korea Rising” capital.

ZDA approves K1.3bn
MSE Investment
Points of Interest
• “We can see from the inflow
of investment into various
sectors of the economy that
world-wide capital has seen
that Zambia has something to
offer.”
• We are delighted to have
signed an agreement with LAP
GreenN, who have both the
resources and the track re-
cord in the African telecom-
munications sector to turn
Zamtel around and deliver
rapid change and tangible
benefits to customers and the
people of Zambia.”
7 ZDA Director General, Mr. Andrew Chipwende with Mr. Andy Roberts, “We can see from the in-
Pick n Pay Group General Manager, signing an MoU to facilitate the flow of investment into
Business Linkage Programme for MSMEs. Story on Page 6. various sectors of the econ-
omy that world-wide capital
Zambia’s ranking on the “Ease forms the country is imple- has seen that Zambia has
and Access to Credit” has menting have positioned Zam- something to offer,” he
improved from 113 to 30 in bia in an advantageous posi- said. “We also have an
the world due to cross-cutting tion to attract huge investment opportunity to tap from our
business reforms the country into the economy. eight neighbours’ markets
is implementing, ZDA Director as we are well intercon-
General Mr. Andrew Chip- “Our ongoing business re- nected and linked to the
forms and the streamlined
wende has revealed. sea through them.”
dispute resolution and legal
And Mr. Chipwende said
systems have improved the Mr. Chipwende said Zambia
Zambia’s political stability ease and access to credit by has various unique selling
stands-out as an important the business community, points to attract invest-
factor for the country’s com- reduced time for company ment, such as its business
petitiveness. He said the registration from 30 days to friendly fiscal regime,
cross-cutting business re- one day and tax number eased (Continued on Page 3

• “Government has abolished

the minimum capital require-
ment for establishing a busi-
ness in line with the on- going
reforms as a way of reducing
the cost of doing business in
the country..”
Quote
“ Vision is not enough, it
must be combined with
venture. It is not enough to
stare up the steps; we
must step up the stairs.”
Vaclav Havel
LAP GreenN Buys 75% Zamtel Shares
LAP Green Networks of Libya
has bought 75 percent of the
equity of Zambia Telecommu-
nications Company Ltd
(Zamtel) and all parties have
signed binding transaction
documents.
LAP Green Networks has
committed to pay a total
purchase consideration of
US$257 million for 75 per-
1
cent of Zamtel and an addi-
tional US$127 million financ-
ing for existing and new net-
work expansion projects. As
part of the revitalisation of
Zamtel, LAP GreenN has com-
mitted to a five-year business
plan, which would foresee a
rapid and sustainable return to
growth, underpinned by a
major investment in network
infrastructure and support
systems to modernise the
company.
Government would retain 25
percent of Zamtel and would
continue to have an active
role in the management and
direction of Zamtel’s future,
retaining two seats on the
board out of seven and veto
rights to certain key deci-
sions (Continued on Page 6)

PAGE 2
CAD Fund to Open Office in
Zambia
China and Zambia’s development coop-
eration is growing stronger, with the
China Africa Development Fund (CAD)
Fund opening an office in Zambia to help
reduce the burden of access to finance in
the country, says ZDA Director General,
Mr. Andrew Chipwende.
And Chinese Ambassador to Zambia, Mr.
Li Qiangmin said China imported goods
worth more than US$1.4 billion in
2009.
Speaking during the China Jianghxi –
Zambia Business Matching Forum, Mr.
Mr. Chipwende said the opening of the
CAD Fund office in Zambia was one of
the new waves of development coopera-
tion between Zambia and China. He said
the Fund was a crucial component in
reducing the challenge of access to fi-
nance in the country.
“The CAD Fund is very important for
equity funding and increasing access to
finance to Zambian companies that ex-
port most of their products,” he said. The
fund provides them ready capital to im-
prove product quality and volume to meet
the foreign market demand.” “The fund
will also go a long way in easing access to
finance by the micro and small enter-
prises (MSEs), who often fail to access
capital due to high bank lending rates.”
“Through CAD Fund, MSEs will obtain
loans with much lower rates to enable
them maintain their businesses to self-
sustaining levels,” Mr. Chipwende noted.
The opening of the CAD Fund office in
Zambia is one of three new waves of
bilateral cooperation that Zambia is dis-
cussing with China, to help build capacity
for Zambian companies to diversify their
businesses, by finding new markets for
their products. Mr. Chipwende added that
revamping Mulungushi Textiles and the
establishment of Chambishi multi-facility
economic zone were the other two waves
of the new cooperation. He said exports
for about US$600 million to China were
expected to be produced from the Cham-
bishi economic zone once it was fully
operational.
Meanwhile, Mr. Qiangmin said the
US$1.4 goods China imported from
Zambia last year represented 85 per-
cent of the total Chinese trade in 2009.
He said the trade balance recorded last
year in favour of Zambia was one of the
factors that attracted more Chinese
investment into the country. Mr. Qiang-
min said the business matching forum
was fundamental in creating more mutual
business linkages between the two coun-
tries, especially with the opening of the
CAD Fund office in two African countries
including Zambia.
“Zambia’s Investment Outlook
Impressive”
Zambia’s investment outlook is changing
for the better, making the country a more
competitive investment destination, Japa-
nese Ambassador to Zambia Mr. Hideto
Mitamura has noted.
Mr. Mitamura said companies with
strong global existence and profiles were
coming to Zambia to learn about its eco-
nomic turn-around and explore invest-
ment opportunities. Speaking during a
business information sharing meeting
hosted for a Japanese business delega-
tion, Mr. Mitamura said Zambia had
made incredible economic achieve-
ments in the last five years; hence many
foreign companies were coming into the
country to invest.
And the delegation leader and Alliance
Forum Foundation (AFF) board chairper-
son, Mr. George Hara said that AFF in
conjunction with UNZA and Copperbelt
University was launching a highly ad-
vanced video conferencing system that
would enable lecturers from Japan teach
students at the two universities at the
same time. The XVD distance learning
system, which was launched by Presi-
dent Rupiah Banda on the sidelines of the
E-Learning Africa Conference, at the Mu-
lungushi International Conference Centre,
was the first ever technology to work in any
part of the world.
Mr. Hara said universities in the United
States of America would be linked to the
system by June this year, expressing
hope that the learning system would
improve education levels in universities
and colleges in Zambia and the whole
continent. He added that the nine Japa-
nese companies represented by the team
were interested in establishing joint ven-
tures with local companies in rail lines,
roads, transport and telecoms, construc-
tion and cosmetics.
“We hope to walk together with Zambia in
the new era of technology of service deliv-
ery.” “If we can find joint ventures with
local people, we can create basic infra-
structure with sophisticated software that
will become a starting point of a long term
relationship between Japan and Zambia,”
Mr. Hara said.
And Commerce, Trade and Industry Min-
ister, Mr. Felix Mutati said with the in-
creased investment inflows and global
economic recovery, Zambia would post
about eight percent growth and would
increase its per capita income from the
current US$1, 200. “The diversified in-
vestment we are receiving offers us an
opportunity to post much higher growth
rates and improve our per capita income,”
Mr. Mutati said. “We will continue working
2
IS SUE 14
hard and attract investors from various
parts of the world.”
He further said the launch of XVD would
make Zambia the hub to export educa-
tion technology to other countries in the
world. Mr. Mutati said the system would
create high quality jobs as it was a high-
tech in nature.
Minimum Capital Requirement
Abolished
Government has abolished the minimum
capital requirement for establishing a
business in line with the on- going reforms
as a way of reducing the cost of doing
business in the country, Minister of Com-
merce, Trade and Industry, Mr. Felix Mu-
tati has indicated.
Mr. Mutati said the removal of minimum
capital requirement was done in relation
to 14 enacted business licencing re-
forms that were submitted to Parlia-
ment and assented-to by the President
early this year. The minister added that
23 licences had been eliminated and
one had been re-classified, while 40
Bills had been drafted to incorporate
business licencing reform recommenda-
tions. The Bills will be presented to Par-
liament during the next sitting.
And Mr. Mutati said most regulatory
agencies were diligently and expedi-
tiously implementing government policy
regarding streamlining of business licens-
ing requirements. “Most of the ministries
and agencies have strengthened the qual-
ity of the regulatory environment for busi-
ness through the framework of the Private
Sector Development Reform Plan.” “What
we now need is to bring business effi-
ciency and eliminate cumbersome busi-
ness procedures,” he said.
Five Economic Zones to Acquire
Statutory Instruments
Government is expected to sign and issue
Statutory Instruments (SIs) by mid-June
this year to operationalise five Multi-
Facility Economic Zones (MFEZ), Com-
merce, Trade and Industry Minister Mr.
Felix Mutati has disclosed.
The Statutory Instruments to be signed
and issued would be for the MFEZs that
will be developed in Lusaka, Ndola and
Solwezi. The MFEZs being facilitated will
be at Lumwana, Lusaka South, Lusaka
sub-zone near the Lusaka International
Airport, Gemstone Exchange Centre at
Bwana Mkubwa and the Roma Indus-
trial Park in Lusaka.
Mr. Mutati said once the statutory instr-
ments were sinned, it would make pos-
 IS SUE 14
sible various economic activities such as
such factories, buildings, warehouses,
housing, schools and medical centres as
well as recreation facilities to be devel-
oped. And Mr. Mutati said MFEZs and
Industrial Parks would provide micro and
small businesses with an opportunity to
engage into business with companies
investing in these zones and parks through
a service and supply side window.
He said MSEs would be able to rent
space within the MFEZ so that they were
part and parcel of the MFEZ and Indus-
trial Parks initiatives. Mr. Mutati said the
biggest challenges for SMEs were infra-
structure constraints but they would be
allowed to trade within the zones by
selling a number of products.
Zambia, China Sign US$5bn In-
vestment Agreement
Zambia and China have signed four memo-
randa of understanding (MoUs) aimed at
increasing investment in various sectors of
the economy, including US$5 billion fund-
ing to companies in the mining sectors by
Development Bank of China (DBC).
Among the signed MoUs was one be-
tween China and Africa Development
Fund (CAD) Fund and the Ministry of
Commerce, Trade and Industry on the
establishment of an agency for the CAD
Fund in Zambia. Other ministries also
signed agreements with the CAD Fund,
China Agricultural Development Group and
Jilin Grain Group on developing agriculture
in the country as well as with China Non-
ferrous Metal Mining Company.
And President Rupiah Banda has com-
mended China for signing of the MoUs and
urged the Zambian private sector to work
with their Chinese counterparts so that
they could access resources from the
financing provision by China. Speaking
when he met the Chinese delegation
from DBC, CAD Fund and representa-
tives of other companies in Livingstone,
the President said it was government’s
desire to see that the cooperation bene-
fited the people of Zambia.
Meanwhile, DBC CEO, Mr. Jiang Chaoli-
ang said the Bank was tasked to come
to Zambia to see how the Bank could help
the country economically as a follow up to
the state visit by President Hu Jintao to
Zambia in 2007 and President Banda’s
visit to China in February this year.
Mr. Chaoliang said the bank was responsi-
ble for long term external financing and
supporting infrastructure development,
adding that “the bank was visiting the
country to further expand cooperation in
agriculture as Zambia was endowed with
vast water and land resources.”
Finland Commits €8mn Towards
PSDRP II
Zambia and Finland have signed an agree-
ment where the government of Finland will
provide eight million euros (€8mn) for the
implementation of the second phase of the
Private Sector Development Reform Pro-
gramme (PSDRP II).
Finance and National Planning Minister,
Dr. Situmbeko Musokotwane signed on
behalf of the Zambian government,
while Finnish Under-Secretary of State
Ritva Mrs. Koukku-Ronde signed for the
Finnish government.
Mrs. Koukku-Ronde said Finland was
committed to support programmes that
improved business climate and govern-
ment capacity to design investment
policy, hence the provision of the funds
for PSDRP II. She said the private sector
development reform programme was at
the epicentre of business reforms in
Zambia, hence Finland’s continued sup-
port to the programme to ensure its
sustainable implementation. And Dr
Musokotwane said the private sector is
key to the attainment of national devel-
opment, adding that government was
committed to reducing challenges faced
by the private sector in doing business.
Business Reforms Reward Econ-
omy
From Page 1
employment laws, improved efficiency in
different government agencies, and
political stability, among others. He
added that any investor looked for a
stable and safe investment destination,
thus political stability played a critical
role in Zambia’s competitiveness in
investment.
“Investment is any sector is highly re-
warding in Zambia. For instance, returns
on equity in construction were 67 per-
cent in 2007 alone, 35 percent in manu-
facturing and 40 percent in tourism.”
“These kinds of returns are unseen in
the developing world, as returns are
mostly between 10 – 12 percent,” Mr.
Chipwende indicated.
Meanwhile, Bank of Zambia Director for
Balance of Payments, Mr. Evans Zyuulu
has said monitoring and analysing for-
eign private investment and investor
perceptions (FPI & IP) is key for policy
and planning. Mr. Zyuulu said informa-
tion on foreign private investment was
important for external policy formulation
and evaluation to adequately complement
fiscal and monetary policies to deliver
overall macroeconomic stability.
3
PAGE 3
Speaking during the training of 50 Enu-
merators for the 2010 FPI & IP Survey,
Mr. Zyuulu said information on foreign
private investment would greatly improve
the compilation of Payments Statistics for
Zambia, which could serve as an early
warning system for preventing external
shocks.
“Monitoring and analysing investor per-
ceptions is important for enabling policy
makers to be proactive when dealing with
external shocks such as the recent inter-
national financial crisis,” he said. “It also
helps us ascertain how much investment
has been actualised and the kind of im-
pact it has on the economy, adding that
ZDA alone can only do little as the exer-
cise was costly.”
Mr. Zyuulu said better information on
investor perceptions would assist govern-
ment in designing investor friendly poli-
cies, consolidating domestic investment,
and attracting foreign investment to
benefit all Zambians. He commended the
Private Sector Development Programme,
Zambia Development Agency (ZDA), Bank
of Zambia (BoZ) and Central Statistical
Office (CSO) for providing necessary re-
sources for the project. The PFI & IP sur-
vey is being conducted by ZDA, BoZ and
CSO to determine the investor percep-
tions of Zambia’s business climate, deter-
mine the magnitude, source, direction of
private capital flows and stocks.
Battery Recycling Plant Opens in
Kabwe
A battery recycling plant and smelter has
been opened in Kabwe, with an initial in-
vestment of US$2.6 million by Zalco Indus-
tries Limited. The investment is expected
to create 400 jobs in the area.
Zalco Industries Limited, which is Zam-
bia’s first company to be involved in bat-
tery recycling, will produce 35, 000 batter-
ies per month from its plant.
“We are looking at meeting the needs of
the local market as well as exporting to the
surrounding countries. This will cut down
on imported batteries and create jobs,”
said company director Mr. Hussein Safied-
dine. Mr. Safieddine said since all batteries
in Zambia were imported, the locally pro-
duced batteries would be competitive es-
pecially that plans were underway to ex-
port to the Democratic Republic of Congo,
Malawi, Mozambique and Tanzania.
Mr. Safieddine said Zalco wanted to revive
the battery sector in Zambia and hoped
Kabwe will gain from the project. He said
Zalco is also involved in the recycling of
aluminum scrap into metal sheets and
supplies companies that produce pots and
pans. ToZ
ISSUE 14
Regional Spotlight
COMESA-EAC-SADC Creates TITA
The COMESA, Eastern Africa Community
(EAC) and SADC tripartite taskforce has
established a Tripartite Infrastructure Trust
Account (TITA) to support infrastructure
under the North-South Corridor projects.
The TITA which has a grant funding of
£67 million will be hosted by the Devel-
opment Bank of Southern Africa. The
funding is particularly for infrastructure
projects like rail system, road infrastruc-
ture and other facilities under the North-
South Corridor initiative to enhance
trade in the region.
And the COMESA, EAC and SADC tripartite
task force has been given £33 million by
United Kingdom Department for Interna-
tional Development (DfID) to facilitate the
creation of a Free Trade Area (FTA) from
Cape Town to Tripoli. British High Commis-
sioners to Zambia Mr. Tom Carter and
Mrs. Carolyn Davidson jointly said trade
was a key factor in economic growth and
poverty alleviation. The high commis-
sioners added although 80 percent of
poverty alleviation has been ascribed to
trade in recent years, Africa only ac-
counted for three percent of global trade
regardless of the continent comprising
42 percent of the world population.
Meanwhile, COMESA secretary general,
Mr. Sindiso Ngwenya commended the
UK for the funds adding that “over the
past five years, COMESA has benefited
from UK aid through the regional trade
facilitation programme.” Mr. Ngwenya
said the three regional bodies’ tripartite
taskforce would deepen regional inte-
gration through harmonisation of re-
gional economic programmes in trade
policy, trade facilitation and infrastruc-
ture. COMESA
BEDIA, IFSC Merged
Botswana International Financial Services
(IFSC) and Botswana Export Development
and Investment Authority (BEDIA) have
been merged in order to improve efficiency
and policy coordination of national invest-
ment promotion and export development
activities.
Similarly, a separate Botswana Brand
Management Company will not be estab-
lished as previously planned, and in-
stead, its mandate and objectives will be
delivered by the merged entity. The
merger is intended to improve service
delivery as well as result in an organiza-
tion that has a refocused and encom-
passing mandate that will propel invest-
ment promotion and export develop-
ment as a key component of the eco-
nomic diversification.
Elsewedy Electricity to Invest
US$200mn in Mozambique
The company will spend half of the in-
vestment (US$100million) on rural elec-
trification projects and another US$100
million on building small hydroelectric
and coal- fired power stations, Elsewedy
Electric Africa's Director, Mr. Hatem Abd
said.
The Elsewedy’s investment is a boost to
government plans to electrify the entire
country by 2014. It is expected to help
bring electricity to a further 3.5 million
people in the centre and north of the
country, bringing to 23 per cent the pro-
portion of people with formal access to
power. Currently only 89 of 128 districts
in the vast former Portuguese colony of
20 million people are covered by elec-
tricity from the national grid. Sapa-dpa
Improving the Business Climate
Over the last four years, government’s
economic reform agenda has propelled
Mauritius on the international arena. Mau-
ritius is ranked 17th out of 183 economies
in the World Bank’s Doing Business report
2010. The bold reforms implemented
since October 2006 have contributed in
radically improving the investment climate
and setting the stage for continued eco-
nomic development.
The impact of these reforms can be mainly
measured by the increased level of invest-
ment, reduction in the unemployment
level, a more diversified economy, a flour-
ishing entrepreneurial culture, clear and
simplified procedures that contribute to
making Mauritius an open and transparent
market for investment based on good gov-
ernance principles.
An ambitious target of being among the
top ten economies in the world has been
set. Since the implementation of the Busi-
ness Facilitation (Miscellaneous Provi-
sions) Act 2006, the business landscape
has witnessed tremendous changes which
have provided a more conducive business
environment to attract and stimulate in-
vestment. Board of Investment.
COMESA and EU Sign 20mn Euro
Agro Input Project
COMESA and the EU have signed a 20
million Euro contribution agreement to
support the COMESA agro inputs project,
aimed at improving rural household food
security and livelihoods in the region.
The agro input project known as COM-
RAP, will contribute to improving small-
holders’ access to agricultural inputs as
well advancing the regional legal frame-
works so as to increase agricultural pro-
ductivity. It will alleviate the constraints
4
PAGE 4
to access seeds, fertilizers and financing
in order to increase the volume of their
staple crop production. COMESA Secre-
tary General Mr. Sindiso Ngwenya de-
scribed COMRAP as key in contributing
to the improvement of rural food secu-
rity and livelihoods in the COMESA re-
gion through improving access to fi-
nance, fertilizers and seed.
And EU Head of Delegation in Zambia,
Dr. Derek Fee said “As you all know, the
developing world has been particularly
hit by the soaring food prices, with often
devastating effects in terms of house-
hold food security.” COMESA
Namibia, Angola to Build
US$1.1bn Hydropower Plant
Namibia and Angola have partnered to
build a US$1.1 billion hydropower plant on
Kunene River to help end power disrup-
tions that have plagued both countries for
decades.
Head of NamPower, Ms. Paulinus
Shilamba said "it's a joint venture pro-
ject between the two countries and 50
percent of the cost is covered by Angola
and the other 50 percent by Namibia.”
"So there are no private parties but I
don't exclude the possibility of private
companies coming in."
The two nations will find contractors to
build the power station soon after envi-
ronmental and feasibility studies of the
400-megawatt Baynes hydroelectric
project were ready by the second half of
the year. The hydropower station is ex-
pected to be completed by 2017. Africa
News
UNECA Forecasts 4.8 % Growth
for Africa
Africa’s economic growth is expected to
rebound to 4.8 percent in 2010 after
dipping by over 2 per cent in 2009, the
United Nations Economic Commission
for Africa (UNECA) Report has indicated.
The Report indicated that growth in Af-
rica dipped to 2.4 percent in 2009, from
4.9 per cent the previous year.
In 2009 growth was highest in West
Africa at 5.5 per cent, partly as a result
of a boost in oil output in the Nigeria's
Niger Delta following a dip in attacks by
militants.
East Africa's economies grew by 4.3
percent, while North Africa posted a
Gross Domestic Product growth rate of
3.6 per cent. Central Africa economies
grew by an average 1.8 percent and in
Southern Africa, the economies shrunk
by 1.1 per cent. Sapa-dpa
 ISSUE 14
PFI Launched in Zambia
Zambia has launched the Policy Frame-
work for Investment (PFI) to enhance in-
vestment policy and implementation in the
country.
PFI will be conducted within the frame of
‘unlocking investment potential in
Southern Africa’ and will use the Organi-
sation for Economic Cooperation and
Development’s PFI as a benchmark for
carrying-out its work.
Speaking during the PFI launch, Finnish
Under Secretary of State for Policy and
Development, Mrs. Ritva Koukku-Ronde
said the project was a great chance for
Zambia to improve its business climate
and attract bigger portions of foreign
investment, particularly into non-
traditional sectors to diversify the econ-
omy. Mrs. Koukku-Ronde said the use of
PFI in conjunction with a regional peer
review mechanism, offered Zambia a
chance to increase its opportunities for
attracting all kinds of investment in the
long term. She has since commended
Zambia for consistently strengthening the
country’s business climate over the past
five years.
And Commerce, Trade and Industry Minis-
ter, Mr. Felix Mutati said government
would continue working towards making
Zambia a preferential investment destina-
tion. “It is not enough attracting foreign
investment into the country, but being
competitive is also very important.” “We
therefore need to create a conducive envi-
ronment that allows the private sector to
thrive in the country,” the minister added.
Mr. Mutati said in response to the need for
an integrated approach to boost competi-
tiveness, the PFI project would engage
other strategic government agencies in-
volved in developing and implementing
investment related policies.
Meanwhile, ZDA Director General Mr. An-
drew Chipwende has said Zambia has an
opportunity to evaluate itself with best
investment environments in the world
following the launch of the country’s PFI
project. Mr. Chipwende said PFI was a
fundamental tool for self-assessment
purposes in order to create a favourable
environment for private sector invest-
ment.
He said the project was an important
process that embraced three principles
of policy coherence, transparency and
regular evaluation, which were cardinal
in helping Zambia attract more invest-
ment. He said benchmarking would
speak for itself in attracting investment
“as we shall be able to show where we
stand in terms of a conducive business
environment by using veritable evidence
made available through the PFI.”
SA Firm to Invest $200,000 in
Security Clothing Plant
A African company plans to invest over
US$200,000 in establishing a plant for
road safety equipment and protective
clothing for the mining sector in Zambia.
SafetyXpress Stromberg Limited com-
pany director, Raymond Hoekstra said
the company will set up its base in Kitwe
with the help of ZDA
He said the firm has been working in
conjunction with ZDA in exploring invest-
ment opportunities in Zambia. Mr. Hoek-
stra was speaking in an interview at the
Copperbelt Mining, Agricultural and Com-
mercial Show (CMACS) in Kitwe. SafetyX-
press is one of the 25 South African com-
panies that exhibited at this year’s show in
Kitwe.
“This is my first time in Kitwe and I am
happy with the general organisation of the
show. We have been able to showcase our
products to the Zambian people and for
this reason, we have decided to come and
set up our base in Zambia because we
have seen the market potential,” he said.
He said the company has been involved in
the development and manufacturing of
traffic and road safety equipment in South
Africa since 1976.Mr. Hoekstra com-
mended ZDA for its efforts in attracting
investors to come and invest in various
sectors of the economy. He said his com-
pany, which has offices in Johannes-
burg, Pretoria and America, will create
jobs depending on the capacity of
branches that will be established in
Zambia. Daily Mail
One-Stop–Window Facility
Launched
Government has launched a one-stop-
window facility for company registration in
Lusaka, to make business registration less
costly, quicker and simpler.
Launching the facility, Commerce, Trade
and Industry Minister, Mr. Felix Mutati
said the one-stop-window would improve
efficiency and effectiveness of business
processes and information flow, as exist-
ing conditions would be reformed, re-
packed and simplified to reduce institu-
tional interventions in doing business.
Mr. Mutati said the facility would be first
piloted in Lusaka as an initiative of the
Ministry of Commerce, Trade and Indus-
try, bringing together ZDA, PACRO, ZRA,
Immigration and CEEC to operate under
one roof at Kwacha House. He said the
harmonisation and simplification of busi-
ness registration processes would result
into a reduction in time an individual or
entity would take in registering a business.
5
PAGE 5
The Minister indicated that it would now
take a maximum of five days for a busi-
ness to complete the entire process of
business registration. Mr. Mutati added
that the launch was the first step of
combining and collapsing government
institutions under one roof for the pur-
pose of business, so that “we are able to
perform properly.”
And Zambia Association of Chambers of
Commerce and Industry (ZACCI) vice
president, Mr. Jeff Sakulanda com-
mended government for facilitating a
conducive business environment in the
country. Mr. Sakulanda added. “The
one-stop-window would reduce the cost
of doing business, hence making Zam-
bia more competitive in terms of invest-
ment attraction.”
“Zambia’s Exports to Korea Ris-
ing”
Zambia and South Korea have recorded a
trade balance of US$79 million and US$50
million in favour of Zambia, during the
period 2007 and 2008, Deputy Minister of
Trade, Commerce and Industry Dr. Lwipa
Puma has disclosed.
Speaking during the ‘Zambia-Korea
Business Seminar,’ Dr. Puma added that
although Zambia exported more than it
imported from South Korea, the volume
of trade was still low and confined to a
few products, mainly copper related
products. He said there is “need to ex-
pand export trade between our two
countries because trade will do what aid
will not do. Export trade will create jobs,
generate foreign exchange and will con-
tribute to sustainable economic develop-
ment.”
Dr Puma said total pledged investment
by companies from South Korea li-
cenced with the ZDA for the period
2000-2008 is US$560,000 in the
manufacturing and service sectors, add-
ing that more requires to be done to in-
crease the flow of investment.
And delegation leader Mr. Jung Hoon Kim
said Korea is committed to co-operating
with economies in need of help, adding
that countries such as Zambia can bene-
fit from Korea’s experience.
Korean Trade and Investment Agency
(KOTRA) vice-president Dr. Ki Sik Park said
the relationship between the organisation
and ZDA is based on mutual professional
respect, which will ultimately benefit, on a
sustainable basis, the economies of
both countries. During the same seminar,
ZDA and KOTRA signed a memorandum
of understanding (MoU) on trade and
investment promotion between the two
countries.
ISSUE 13
Zambia to Exceed 2010 Growth
Forecast
Zambia’s economy may grow faster than
the government forecast this year on
higher copper prices and a bumper grain
crop, putting the country in a good position
to seek its first credit rating, Bank of Zam-
bia Governor Dr. Caleb Fundanga has said.
Dr. Fundanga said government would
sign an agreement with JP Morgan Chase
& Co. to serve as an advisor on how the
country would proceed with the credit rat-
ing. Zambia shelved plans for a credit rat-
ing in the second half of 2008 after the
global financial crisis hit.
“Copper prices have more than doubled
since the beginning of last year, while
the government estimated a 42 percent
surge in grain output in 2010. That could
push economic growth to between 7 per-
cent and 8 percent in 2010, compared
with 6.3 percent forecast in December,”
Dr. Fundanga said. “These are reasons
why one should be optimistic,” he added.
“I don’t see why in a year when we have
fewer problems we should do less than a
year when we had more problems.”
Dr. Fundanga projected that Zambia
would produce a grain surplus of one
million metric tons this year, which
would be exported, boosting foreign
currency earnings. He said the credit
rating would allow local companies to
borrow at more favorable rates abroad,
adding that government had not decided
whether it would also use the rating to
sell an international bond.
Angola was awarded its first credit rating
of B+ by Standard & Poors and Fitch
Ratings on May 18, 2010, paving the
way for the sale of an international
bond. Ghana, the world’s second-biggest
cocoa producer, is also considering sell-
ing its second dollar bond next year.
Meanwhile, Deputy Finance and Na-
tional Planning Minister, Ms. Chileshe
Kapwepwe has indicated that Zambia’s
economic growth will surpass the 6.3
percent target for this year. Mrs. Kap-
wepwe said this would be achieved
through economic diversification from
mining to other equally vital sectors like
manufacturing, tourism, agriculture,
construction, among others.
She appealed to Zambians to continue
working with government to ensure the
country further records a historical eco-
nomic growth for the betterment of the
citizenry. Ms. Kapwepwe said preliminary
economic indicated from the first quarter
showed that the economy would grow
beyond the projected 6.3 percent, which
was commendable. Bloomberg Business
Week
ZDA, Picky n Pay Sign Business
Linkage Agreement
ZDA and Pick-n-Pay Zambia Limited have
signed a memorandum of understanding
(MoU) to facilitate business linkages be-
tween Picky n Pay and micro, small and
medium enterprises (MSMEs).
Under the agreement, Picky n Pay will
engage MSMEs as suppliers and con-
tractors of various goods and services to
the outlets the company was opening in
the country.
Speaking during the signing of the MoU,
ZDA Director General, Mr. Andrew Chip-
wende said the agreement provided
MSMEs an opportunity to find space for
their goods and services in Picky n Pay’s
business line. Mr. Chipwende said ZDA,
ILO, UNCTAD (United Nations Conference
on Trade and Development) and other
partners supported MSMEs through many
avenues including business linkages to
enhance their economic role.
And Pick-n-Pay Group General Manager,
Mr. Andy Roberts said the chain store was
investing US$30 million in Zambia over
five years, which MSMEs could have a
share from for their short and long term
growth. Mr. Roberts said MSMEs would be
contracted to supply a variety of produces
to Picky n Pay as the company intended to
procure 50 percent of its supplies locally
once the business linkage programme was
fully implemented.
Meanwhile, International Labour Organisa-
tion (ILO) Senior Technical Advisor in
charge of Broad Based Wealth and Job
Creation, Mr. Jealous Chirove said it was
important for all investors coming into
Zambia to consider developing the MSMEs
by entering into business linkages with the
local small enterprises by engaging them
as suppliers, sub-contractors or distribu-
tors.
LAP GreenN Buys 75% Zamtel
Shares
From Page 1
concerning the company. Government
would also retain the right to list some or
all of its holding on the Lusaka Stock
Exchange in future. A substantial pro-
portion of the total purchase has been
allocated to the settlement of full redun-
dancy packages of Zamtel employees.
An independent auditor will oversee the
payment of the packages to ensure each
employ received the correct amount. As
part of the process, LAP GreenN would
retain a proportion of the workforce, suffi-
cient to operate Zamtel in an optimal man-
ner and in line with its five-year business
plan.
6
PAGE 6
Commenting on the transaction, Finance
and National Planning Minister, Dr. Situm-
beko Musokotwane said “the government
of Zambia has today paved the way for
completing the most significant privatisa-
tion in the history of Zambia. We are de-
lighted to have signed an agreement with
LAP GreenN, who have both the resources
and the track record in the African tele-
communications sector to turn Zamtel
around and deliver rapid change and tangi-
ble benefits to customers and the people
of Zambia.”
Dr. Musokotwane said the agreement
was a major step towards reinvigorating
the Zambian telecoms market and ensur-
ing that more people have access to more
affordable services, and high-speed
access to internet, thus contributing to
and benefit from the digital economy.
And ZDA Director General, Mr. Andrew
Chipwende said through the Zamtel
transaction, ZDA actively employed a
process that prepared the asset for pri-
vatisation, thus setting an important
precedent for the future.
“A significant amount of work has laid
the foundation for a rapid turnaround at
Zamtel. We are confident that we have
found in LAP GreenN the long-term stra-
tegic partner who can build on the work
already done and transform Zamtel into
a company that makes a substantial and
critical contribution to the Zambian
economy,” Mr. Chipwende said.
Meanwhile, LAP GreenN Managing Di-
rector, Mr. Abdulbaset Elazzabi said the
announcement of LAP GreenN as a pre-
ferred buyer of Zamtel was hugely sig-
nificant for his company.
“This is the single largest investment
that we have made to date,” Mr. Elaz-
zabi said. “Zambia is a key part of our
wider strategy to build telecom networks
across the African continent, and we are
extremely happy to have been selected
by the government of Zambia to become
their partner in Zamtel.”
He said LAP GreenN would make Zamtel
a company that delivered benefits to all
Zambian companies, consumers and the
people as it had done before in other Afri-
can markets.
Mr. Elazzabi said LAP GreenN had the
experience to turn Zamtel as it had done
in other countries where it exists such as
Uganda, Rwanda, Southern Sudan and
Cote d’Ivoire. The agreement will be-
come unconditional at the close of the
transaction at the end June, after which a
formal handover by government to LAP
GreenN would done and a detailed an-
nouncement will be made at that time.
 Zambia Development Agency
P.O Box 30819
MARCH 2010
Nasser Road SELECTED ECONOMIC INDICATOR MARCH 2009

Lusaka, Zambia 1. Inflation rate (%) 13.1 10.1

2. Average Treasury bills rate (%) 14.0 2.5
3. GRZ Bond Yield Rate: (24-month) (%) 17.5 10.0
Tel: 260-211-229240 4. Average Lending Rate (%) 26.9 28.0
5. Exchange Rates: (ZMK/foreign cur-
Fax: 260-211-225270
rency)
E-mail: zda@zda.org.zm US$ 5,600 4,695
EURO 7,200 6,400
Website: www.zda.org.zm BPS 7,900 7,000
RSA 550 630
6. Agriculture Commodity Prices:
(US$/MT)
Maize 340 N/A
Wheat 367 N/A
Soya beans 470 N/A
7. Capital Market Activity
Equity trading:
Number of Trades 578 584

Volume of Trade 20,741,312 47,977,337

Turnover (US$) 1,537,000 9,135,000

Foreign Portfolio Investment: (US$)

Inflows (Buying) (US$)

Zambia Outflows (Selling) (US$)
23,400
(1,352,000)
184,000
(4,800,000)
Africa’s New Frontier For Net Position (US$) (1,328,000) (4,616,000)
Investments and Profits Source: BoZ, CSO, LuSE, Zamace

Zambia to Issue US$1bn Interna-
tional Bonds
Finance and National Planning Minister,
Dr. Situmbeko Musokotwane has dis-
closed that Zambia will raise US$1 billion
for rail and power projects from the sell of
its first international bonds.
In an interview with CNBC Africa, Dr.
Musokotwane said the sale of the bonds
on the global market would take place in
the third quarter of the year. He said
Zambia would proceed with the transac-
tion after the country had acquired its
first sovereign credit rating by the third
quarter of the year.
Zambia joins countries including Kenya,
Ghana and Angola that want to tap inter-
national capital markets to help finance
the building of power plants and rail-
ways as economic growth accelerates.
He said Zambia expected a credit rating
of higher than B+, which was awarded
by Standard & Poor’s and Fitch Ratings
to Angola in May, adding that “B+ should
be the minimum.” Dr. Musokotwane
signed an agreement with JP Morgan
Chase & Company on May, 28 2010 to
help the government prepare for the
credit rating. Zambia is working concur-
rently on the rating and the bond sale.
Bloomberg/CNBC
“Learn New-Business Tech-
niques,” SMEs Urged
ZDA Regional Entrepreneurship Develop-
ment Officer Mr. Shental Siajunza has
called on Small and Medium Entrepre-
neurs (SMEs) business organisations to
develop interest in learning new tech-
niques in running their businesses.
Speaking during a COMESA workshop in
Kasama, Mr. Siajunza said SMEs should
advance in running their business profita-
bly and effectively through joining rele-
vant trade organisations. He said by link-
ing with relevant organisations like CO-
MESA, SMEs could avoid paying trade
taxes to councils and exorbitant border
charges.
Mr. Siajunza advised SMEs to make joint
trips when importing items abroad to cut
down on costs, which could result in eco-
nomic growth of their businesses.
Meanwhile, ZANACO Head of Business
Banking and SME Manager Mr. Chi-
bamba Lopa said the bank was proud to
sponsor the SME workshop to empower
local businesses in national interest. Mr.
Lopa said ZANACO is aiming at promoting
and empowering Small and Medium Busi-
ness Entrepreneurship by providing a
conducive business climate to it clients
7
And achieve economic growth.
He added that ZANACO is also geared in
offering short-term loans, credit facilities
in overdrafts and make their customers
comfortable by spending shorter time at
their branches national wide. Zanis
ZDA Approves K1.3bn MSE In-
vestment
Zambia Development Agency has ap-
proved 25 micro and small enterprises
(MSEs) applications for MSE certificates in
May, with a total investment of K1.3 bil-
lion.
The approved applications are expected
to create 187 job opportunities in Lu-
saka and Southern provinces where all
the 25 enterprises are located.
About K760 million of the approved
investment was from trading, represent-
ing 58.6 percent of the total investment
MSEs from Lusaka and Southern prov-
inces injected into the economy.
The approved applications in May were
from trading, services, transport, agricul-
ture, education, tourism, and automo-
tive. The May approvals represent more
than 200 percent investment increase
from April’s K396.7 million total invest-
ment ZDA approved from MSEs.