A presentation of the Zambia Development Agency

Transcription

1 SADC JAPAN INFRASTRUCTURE SEMINAR Investment Opportunities in Zambia s Infrastructure March, 2012 A presentation of the Zambia Development Agency

2 Presentation Outline Why Zambia? Positioning Investment Opportunities Investment Framework Conclusion

3 Zambia in the Region and Beyond Area: 752,614 sq km Common borders with 8 (including Mozambique) Population: 13 mil (2010 census) Independence: 1964 Religion: Over 90% Christian, Muslim 4%, 1% indigenous Other market opportunities through agreements / membership to: EU through the EBA initiative USA through AGOA Market Initiative Canadian Market Access Initiatives Chinese Market Access Initiative Japanese Market Access initiative

4 ZESCO GRID (66 330kV) To Sumbuwanga CHIENGI KAPUTA MPULUNGU 8 o ANGOLA CHAVUMA ZAMBEZI CHIKATA FALLS (3.5MW) WEST LUNGA KANSANSHI at West Lunga River (2.5MW) SOLWEZI LUMWANA KABOMPO Gorge (Mine) (34MW) MUFUMBWE KABOMPO MWINILUNGA KASEMPA D R CONGO LUANO MICHELO KITWE MAPOSA MPONGWE LUNZUA MBALA KUNDABWIKA (0.75MW) (101MW) KASHIKISHI MPOROKOSO NAKONDE NCHELENGE KABWELUME (62MW) Kawambwa KALUNGWISHI RIVER MBERESHI Town KAWAMBWA CHISHIMBA FALLS TEA MAMBILIMA KASAMA ISOKA Chambasitu MUSONDA FALLS LUWINGU (5MW) MUYOMBE CHINSALI MANSA KANSUSWA SAMFYA MOMBUTUTA BWANA MKUBWA KAPIRI MPOSHI Mkushi SERENJE Mkushi Central Mkushi Farm Block PENSUL O LUSIWASI (12MW) LUSIWASI EXTENSION (40MW) MSORO MPIKA MFUE CHAMA LUNDAZI CHIPATA 22 o East KALAB O SHANGOMBO LUKULU KATIMA MULILO MONGU SENANGA SESHEKE KATIMA MULILO KAOMA ITEZHI TEZHI (120MW) VICTORIA FALLS (108MW) KABWE MUMBWA ROMA LUSAKA WEST NAMPUNDWE LUNSEMFWA (18MW) MULUNGUSHI (20MW) Luangwa CHONGWE Bridge LEOPARDS HILL LUANGWA KAFUE WEST KAFUE TOWN KAFUE LOWER KAFUE GORGE (750MW) 900MW(1080MW) KARIBA NORTH CHIRUNDU MAZABUKA (600MW(750MW) KARIBA NORTH EXTENSION (600MW(750MW) KARIBA SOUTH MUZUMA LAKE KARIBA DEVILS GORGE (800MW) MAAMBA PETAUKE 18 NAMIBIA o BATOKA GORGE (800MW) ZIMBABWE Zambia: BOTSWANA Africa s New Frontier for Investments and Profits COV. AZELE EXISTING POWER SUBSTATIONS AND POWER LINES 330kV 220kV 132kV 88kV 66kV HYDRO POWERSTATION SUBSTATION DIESEL STATION 33.5 o East MOZAMBIQUE PROPOSED POWER SUBSTATIONS AND POWER LINES 330kV 220kV 132kV 88kV 66kV PROPOSED HYDROPOWERSTATION PROPOSED SUBSTATION PROPOSED DIESEL STATION

5 Energy Opportunities would be Underestimated Abundant investment Opportunities in view of Huge power deficit in Southern Africa Vast water resources and Coal reserves East Africa short of power, South Africa running out of Excess Power Growth in demand 150MW 200 MW Hydro projects Private Sector, being considered Zambia Tanzania Interconnector Current Installed Cap. 1,970 Mw, Peak 1,600 Mw Potential Capacity to 6,000 Mw Zambia Namibia Interconnector Zambia DRC Interconnector

6 ENERGY INVESTMENT OPPORTUNITIES Biofuels Areas - Growing of energy crops, Setting up of Refinery to process the crops and Storage facilities Renewable energy opportunities include biomass gasification, biogas, and wind energy for water pumping. Manufacture of Solar Components such as batteries, bulbs, regulators

7 ENERGY INVESTMENT OPPORTUNITIES 1,600 KM ZAMBIA-TANZANIA-KENYA POWER INTER-CONNECTOR PROJECT Construction of a 700 kilometres double circuit 440kV transmission line originating from Zambia and ending in Tanzania Reinforcement of the Tanzania transmission system by construction a single circuit 400kV line from Mbeya to Arusha Construction of a 260 kilometres 4000kV transmission line between Tanzania and Kenya.

8 ENERGY INVESTMENT OPPORTUNITIES MUMBOTUTA AND MAMBILIMA HYDROELECTRIC PROJECT ( MW) Scope of project could include: 301MW hydropower plant Concrete faced rock fill dam Surface open-pit type powerhouse Development of high voltage transmission line which will include transmission line to connect to the national grid and construction of a Copperbelt to Luapula transmission line

9 ENERGY INVESTMENT OPPORTUNITIES Biofuels Areas - Growing of energy crops, Setting up of Refinery to process the crops and Storage facilities Renewable energy opportunities include biomass gasification, biogas, and wind energy for water pumping. Manufacture of Solar Components such as batteries, bulbs, regulators

10 Opportunities in Rail Infrastructure Total projected investment US300 million Inter-mine railway network covers a total of 199Km: Ndola to Chingola 134Km Luano to Chililabombwe 31Km Spur to Mufulira 34Km

11 Opportunities in Road Infrastructure Total projected investment USD2 billion Trunk roads comprising (i) Livingstone Kapiri Mposhi, 678km (ii) Kapiri Mposhi Nakonde, 808km and (iii) Kapiri Mposhi, 746km

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

13 A-to-Z information on the Zambian market Guidance through the entire investment 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: Fax: