Africa s New Frontier for Investments and Profits

Transcription

1 Zambia Development Agency A MUHABI LUNGU, Director-Investment Promotion & Privatization Kuala Lumpur, Wednesday,23 February 2011

2 PRESENTATION OUTLINE GDP Growth/Comparatively Investment Framework Investment Opportunities Conclusion

3 A Decade of Improvement/Comparatively Average annual Real GDP Growth, ZAMBIA 5.4% AFRICA 5.1% SADC 3.6% COMESA 3.5%

4 th in Sub-Saharan Africa Index of Economic Freedom th in Africa Index of Network Readiness 2009

5 Paying unprecedented returns 25% 20% 15% 10% 5% 0% Rate of Return on Equity Sector Return on Equity Construction 66.8 Transport and Communication 49.8 Bank and Financial Institutions 42.5 Wholesale and Retail Trade 33.7 Tourism 27.4 Mining 22.5 Agriculture 20.1 Other 20.5 Source: PSCF Survey, BOZ, CSO, ZDA

6 Diversification from Copper Exports Main thrust: promotion of trade and investment of NTEs NTEs are 20% of export earnings NTEs grown by average 18 % in last 5 years Main NTEs are agricultural, gemstones manufactured & processed foods, chemicals & pharmaceuticals, mining & engineering products. Non mining sectors contribute over 90% of the country s GDP.

7 The investment thrust (Diversification) Investment attractiveness High Prioritisation of Sectors Priority 3 Retail and trade Low Priority 2 Mining Agriculture Gemstone Developmental impact Priority 1 Industrial Minerals Engineering products Energy Value Addition (minerals & agro) Tourism Agro-processing Horticulture Infrastructure Energy Medical / Health Education and Skills Financial &Service High Priority Sectors Fertilizer & cement production Timber Leather processing Agro processing Tourism Heavy / Engineering Industry Energy Telecommunications, ICT Electronics, assembly Pharmaceuticals Non metallic mineral products Health / medical / education Value addition agro/mining

8 Key Taxes TAXES GENERAL MINING AGRIC & NTE Corporate Tax 35% 30% 15% Withholding Tax Value Added Tax 16% Import Duties Capital goods and Raw material 15 % ( Except for mining O%) 0-5% Intermediate Goods 15% Finished goods 25% ZDA INCENTIVES 0% - for 5years 50% of Tax year % of tax year 9-10 Full tax afterwards Option to deferment on capital equipment and machinery 0% on capital goods, machinery and equipment for 5 years Dividends Income tax rates applicable 0% for 5 years

9 The world has come, how can you join?

10 2010 Growing Pipeline --US$ 4.7 billion planned

11

12 PROJECT 1 LUSAKA SOUTH MULTI FACILITY ECONOMIC ZONE (LS-MFEZ) Vision for LS-MFEZ A centre of excellence for business and investments that conforms to best international standards Promote local and foreign investments and MSME s Research, innovation, incubate new technology oriented business

13 SELECTED INDUSTRIES FOR LS-MFEZ Industry (Including Hi-tech) 695 R&D 101 Residential 292 Commercial / business core 72 Community facilities 36 Institution 166 Open space 472 Infrastructure and utility (including roads) 242 Transmission line 24 TOTAL 2100

14 PROJECT 2 ZAMBIA INTERNATIONAL TRADE FAIR Exhibition Center This is 60 hectares in size and only 30 has been developed. Government is seeking development partners to joint finance, re-design and re-develop the trade fair grounds into a modern exhibition, entertainment and business center It will then be used as Zambia s main business exhibition and trade center The exhibition centre could include establishing an Asian consumer product center that would provide consumer goods in the sub-region.

15 PROJECT 3 LIVINGSTONE CONFERENCE CENTRE AIM: To spearhead the development and establishment of a world class conference center and hotel facilities in Livingstone. Zambia lacks large scale conferencing facilities that can hold 10,000+ theatre style sitting participants. A 30-hectare site identified overlooking the Victoria Falls and Zambezi River. Proposal: Setup a Special Purpose Vehicle which will do a private placement of shares and be listed on the Lusaka Stock Exchange to be the vehicle that implements the project.

16 PROJECT 4 DEVELOPMENT OF KASABA BAY RESORT

17 INFRASTRUCTURE DEVELOPMENT Integrated development plan and conducting of an Environmental Assessment for the area. 20 tourism development potential sites identified with varying sizes of up to 150 hectares. Core infrastructure under development: The Mbala Kasaba Bay road; Upgrade of power supply station from 0.75 megawatts to 10.0 megawatts Rehabilitation and extension of the Kasaba Bay airport; Restocking of the Nsumbu National Park with other key stone species. Scheduled completion time for the activities - early 2011.

18 DEVELOPMENT OF KASABA BAY RESORT INVESTMENT OPPORTUNITIES Tourism Accommodation Facilities Water-based Tourism Activities Game Tour Operations Shopping Facilities Golf Tourism Scuba Diving

19 Commercialization of Agricultural Land FARM BLOCKS Creating a conducive environment that allows investment in agriculture. Development of farm Blocks One farm block to be developed for each of the nine provinces by 2015

20 Land Demarcation Total hectares 155,000 Excellent for mixed farming Central African plateau dominated by woodland mm average annual rainfall SN Farm Category 1 Core venture 2 Large Scale 3 Medium Scale 4 Small Scale Size ( ha ) No. of Farms Comments 10,000 1 Main Commercial Farm 1, Commercial Farms Medium Scale Farmers Small Holder Potential Crops; maize, beans, groundnuts, tobacco, rice, tea, sunflower, coffee, millet, wheat, oil seeds etc

21 Farm Blocks under Development Farm block Size (Ha) 1 Nasanga 155,000 2 Kalumwange 100,000 3 Luena 100,000 4 Manshya 147,000 5 Mikelenge/ luma 100,000 6 Musakashi (SADA) 100,000 7 Mungu 100,000 8 Simango 100,000 9 Mwase-phangwe 100,000

22 Project 6 HYDRO PROJECTS HYDROELECTRIC POWER PROJECTS

23 Project Name Estimated Capacity Location Status Luapula Hydro Two sites; (Mombututa & Mambilima) Batoka Gorge and Devils Gorge Hydro 950 MW Luapula River 1,600 MW Zambezi River CEC Granted Development Rights. Potential Joint Development Open for investment Kalungwishi Hydro Power Project 218 MW Kalungwishi River Project promoter: Lunzua Power Authority. Feasibility Study Completed Muchinga Power Project 120 MW through a series of power stations Lunsemfwa and Mkushi Rivers Project promoter: Lunsemfwa Hydro Power Company

24 PPP PIPELINE PROJECTS DEVELOPMENT OF A VARIOUS INLAND PORTS AND LOGISTICS CENTRES AT:- CHIPATA KAPIRI-MPOSHI DEVELOPMENT OF RAILWAY PROJECTS CHIPATA-TAZARA RAILWAY CONNECTION (TAZARA CORRIDOR) LIVINGSTONE KAZUNGULA- SESHEKE (NORTH-CORRIDOR) KAFUE-LIONS DEN (BEIRA CORRIDOR) INTRA-CITY LUSAKA MASS TRANSIT SYSTEM ( NJANJI COMMUTER)

25 PPP PIPELINE PROJECTS PROPOSED ROADS PROJECTS DUALLING AND TOLLING OF T2 KAPIRI-NAKONDE ROAD 1,140KM (NORTH-SOUTH CORRIDOR) DUALLING AND TOLLING OF CHIPATA-LUNDAZI-ISOKA ROAD 550KM KASAMA-MANSA-MUFULIRA ROAD 780KM MPULUNGU- MBALA-NAKONDE-NYALA ROAD PROJECT ROADS UNDER PROCUREMENT KITWE-SOLWEZI-CHINGOLA-MWINILUNGA-JIMBE RD (LOBITO CORRIDOR); DUALLING AND TOLLING OF LIVINSTONE - NDOLA (NORTH-SOUTH CORRIDOR) DUALLING AND TOLLING OF CHIRUNDU-KAFUE RD (NORTH-SOUTH CORRIDOR) AIRPORTS REDEVELOPMENT OF THE LUSAKA INTERNATIONAL AIRPORT

26 PIPELINE PRIVATISATIONS NITROGEN CHEMICALS OF ZAMBIA (NCZ) ZAMBIA-CHINA MULUNGUSHI TEXTILES LIMITED ZAMBIA STATE INSURANCE CORPORATION LIMITED NJANJI COMMUTER SERVICES TAZAMA Pipeline INDENI PETROLEUM REFINERY MUKUBA HOTEL

27 10 Basic Reasons to Invest in Zambia 1. Stable political system no civil strife since Positive and investor friendly economic environment 3. Investment guarantee and securities 4. Abundant natural resources presenting excellent investment and trade opportunities 5. Thriving private sector 6. Attractive investment incentives 7. Unlimited repatriation of profits 8. Progressive banking, legal and insurance services of international standards and stock exchange market 9. Duty free access to regional, wider Africa, EU and USA market 10. Good place to work & live, friendly people with a rich culture

28 Thank you

29 CONTACT DETAILS MUHABI LUNGU DIRECTOR-INVESTMENT PROMOTION AND PRIVATISATION Land Line Mobile Line Zambia Development Agency Privatisation House, Nasser RD P.O. Box 30819, LUSAKA. ZAMBIA Tel: Fax: Website: