muhabi lungu, director-investment promotion & privatization … · 2012-02-05 · a zambia...
TRANSCRIPT
A
Zambia
Development
Agency
Africa’s New Frontier for Investments and Profits
MUHABI LUNGU, Director-Investment Promotion &
Privatization
Kuala Lumpur, Wednesday,23 February 2011
PRESENTATION
OUTLINE
GDP Growth/Comparatively
Investment Framework
Investment Opportunities
Conclusion
COMESA
SADC
AFRICA
ZAMBIA
3.5%
3.6%
5.1%
5.4%
Average annual Real GDP Growth, 2000-2010
Africa’s New Frontier for Investments and Profits
A Decade of Improvement/Comparatively
2034
5269 76
95118 126 128 133 138 140
157 163 175
13th in Sub-Saharan Africa
Index of Economic Freedom 2009
12th in Africa
Index of Network Readiness 2009
0%
5%
10%
15%
20%
25%Rate of Return on Equity
Africa’s New Frontier for Investments and Profits
Paying unprecedented returns
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
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.
Diversification from Copper Exports
Africa’s New Frontier for Investments and Profits
Developmental impact
Low
Inve
stm
en
ta
ttra
cti
ve
ne
ss
High
Hig
h
Mining
Agriculture
Gemstone
Retail and
trade
Infrastructure
Energy
Medical / Health
Education and Skills
Financial &Service
Priority 2Priority 3
Prioritisation of Sectors
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
Industrial Minerals
Engineering products
Energy
Value Addition
(minerals & agro)
Tourism
Agro-processing
Horticulture
Priority 1
Africa’s New Frontier for Investments and Profits
The investment thrust (Diversification)
Key Taxes
TAXES GENERAL MINING AGRIC &
NTE ZDA INCENTIVES
Corporate Tax 35% 30% 15%
0% - for 5years
50% of Tax – year 6-8
75% of tax – year 9-10
Full tax afterwards
Withholding Tax 15 % ( Except for mining – O%)
Value Added Tax 16%
Option to deferment on
capital equipment and
machinery
Import Duties
0% on capital goods,
machinery and equipment
for 5 years
Capital goods and Raw
material
0-5%
Intermediate Goods 15%
Finished goods 25%
Dividends Income tax rates applicable 0% for 5 years
Africa’s New Frontier for Investments and Profits
Africa’s New Frontier for Investments and Profits
The world has come, how can you join?
2010 Growing Pipeline --US$ 4.7 billion planned
Africa’s New Frontier for Investments and Profits
LUSAKA SOUTH MULTI
FACILITY ECONOMIC ZONE
(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
Vision for LS-MFEZ
Africa’s New Frontier for Investments and Profits
PROJECT 1
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
This is 60 hectares in size and only30 has been developed.
Government is seeking developmentpartners to joint finance, re-designand re-develop the trade fairgrounds into a modern exhibition,entertainment and business center
It will then be used as Zambia’smain business exhibition and tradecenter
The exhibition centre could includeestablishing an Asian consumerproduct center that would provideconsumer goods in the sub-region.
PROJECT 2
ZAMBIA INTERNATIONAL TRADE FAIR – Exhibition Center
AIM: To spearhead thedevelopment and establishmentof a world class conferencecenter and hotel facilities inLivingstone.
Zambia lacks large scaleconferencing facilities that canhold 10,000+ theatre style sittingparticipants.
A 30-hectare site identifiedoverlooking the Victoria Falls andZambezi River.
Proposal: Setup a Special PurposeVehicle which will do a privateplacement of shares and be listedon the Lusaka Stock Exchange tobe the vehicle that implementsthe project.
PROJECT 3
LIVINGSTONE CONFERENCE CENTRE
DEVELOPMENT
OF KASABA BAY
RESORT
Africa’s New Frontier for Investments and Profits
PROJECT 4
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.
INFRASTRUCTURE DEVELOPMENT
Africa’s New Frontier for Investments and Profits
DEVELOPMENT
OF KASABA BAY
RESORT
Africa’s New Frontier for Investments and Profits
Tourism Accommodation Facilities
Water-based Tourism Activities
Game Tour Operations
Shopping Facilities
Golf Tourism
Scuba Diving
INVESTMENT OPPORTUNITIES
FARM BLOCKS
Commercialization of
Agricultural Land
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
Africa’s New Frontier for Investments and Profits
Land Demarcation
Total hectares – 155,000
SN Farm
Category
Size
( ha )
No. of
Farms
Comments
1 Core
venture
10,000 1 Main Commercial Farm
2 Large
Scale
1,000 -5000 4 Commercial Farms
3 Medium
Scale
50 -900 47 Medium Scale Farmers
4 Small
Scale
20 – 40 300 Small Holder
Central African plateau dominated by woodland 700 -1000mm average annual rainfall
Potential Crops; maize, beans,
groundnuts, tobacco, rice, tea,
sunflower, coffee, millet, wheat, oil
seeds etc
Excellent for mixed farming
Africa’s New Frontier for Investments and Profits
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
Africa’s New Frontier for Investments and Profits
HYDROELECTRIC
POWER PROJECTS
Project 6
HYDRO PROJECTS
Africa’s New Frontier for Investments and Profits
Project Name EstimatedCapacity
Location Status
Luapula Hydro
Two sites; (Mombututa &
Mambilima)
950 MW Luapula
River
CEC Granted
Development
Rights. Potential
Joint
Development
Batoka Gorge and Devils
Gorge Hydro
1,600 MW Zambezi
River
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
• 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)
Africa’s New Frontier for Investments and Profits
PPP PIPELINE
PROJECTS
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
Africa’s New Frontier for Investments and Profits
• 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
PIPELINE PRIVATISATIONS
1. Stable political system – no civil strife since 1964
2. 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
10 Basic Reasons to Invest in Zambia
Africa’s New Frontier for Investments and Profits
Thank you
Africa’s New Frontier for Investments and Profits
CONTACT DETAILS
MUHABI LUNGU
DIRECTOR-INVESTMENT PROMOTION
AND PRIVATISATION
Land Line +260 211 220 489
Mobile Line +260 966 842 970
Zambia Development Agency
Privatisation House, Nasser RD
P.O. Box 30819, LUSAKA. ZAMBIA
Tel: +260 211 220177
Fax: +260 211 225270Website: www.zda.org.zm
Email: [email protected]