zda spotlight : april 2010

8/9/2019 ZDA Spotlight : April 2010

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Issue 13

CEEC to Establish Incuba-

tors at CBU2

Economic Growth Strain-

ing ZESCO

2

DRC Tops Zambias Ex-

port Markets

3

RIA Promotes US$40bn

Investment into 150 Pro-

jects

4

Africa to Enjoy Strong

Rebound-IMF

4

Aid is not the only Answer

Analysis

5

ZDA Establishes Show

Room in Mongu

7

Inside this issue:

Zambia Development Agency(ZDA) will in the second half ofthis year pilot its one-stop-window facility in Lusaka, be-fore it is replicated in otherprovinces and districts, theDirector General, Mr. AndrewChipwende has revealed.Mr. Chipwende said the im-plementation of the facilitywas fundamental to ZDAsservice delivery, especially tomicro and small enterprises(MSEs) who have been disad-

vantaged due to the Agencyslimited existence in Lusaka.

Speaking when he hosted adelegation from the NamibiaInvestment Centre (NIC), Mr.Chipwende said the one-stop-window would help ZDAexhaustively attend to inves-tors needs and appropriatelycoordinate MSE programmes

in the country.

To bolster business and ser-vice delivery, the pilot facility

would house all regulatoryfunctions related to start-ing a business in one loca- tion to improve the effi-ciency and effectiveness ofthe processes and informa-

tion flows throughout thevarious stages of registra-

tion and regulation.

Mr. Chipwende said theamendment of the ZDA Actwould simplify the coordi-nation of MSE activities in the country. The Act wouldalso mandate ZDA, in col-laboration with CEEC, as the key administrators andimplementers of MSE pro-grammes, to enhance ser-vice delivery and reduce

the duplication of similaractivities in the sector.

And Mr Chipwende saidZDA and NIC were formu-lating new strategies thatwould consolidate invest-ment and trade promotionefforts between Zambiaand Namibia, and expand trade volumes and reduce trade imbalances betweenthe two countries. He added

that ZDA and NIC were

(Contd on Page 3)

ZDA to Pilot OneDA to Pilot OneDA to Pilot One-Stoptoptop-Window Facilityindow Facilityindow FacilityApril 2010

Investment in Tourism Increases in AprilZambia Development Agencyhas recorded about US$117million investment in themonth of April 2010, with thetourism sector recording thelargest inflow of more thanUS$91 million.The high investment inflow in

the tourism sector is respon-sive to the 2010 FIFA WorldCup slated for June in South

Africa, which is stimulatingabundant business opportu-nities in many sectors espe-cially the hotel industry in theregion. The approved invest-ment pledges were expected to create 2, 673 newjobsand job opportunities after

implementation.

And ZDA has registered 22Micro and Small Enterprises

(MSEs) with a total invest-ment of K396.7 million fromvarious parts of the country.The investment is expected to create 193 job opportunities in the provinces where the enterprises are located.The approved projects for April

represent 85 percent declinefrom Marchs K2.6 billion that ZDA recorded from the

MSE registration.

Zda Spotlight

Quote

Understanding how to

be a good investor makes

you a better businessmanager and vice versa.

Charlie Munger.

Points of Interest

We need empowermentliteracy in the country.The earlier we catch thepeople, the better becausethere is too much depend-ency on government for alivelihood...

Zambia's empowermentprogramme is the mostinclusive among the em-powerment initiativesNamibia has been using asa yardstick to its empow-

erment strategy.

The journey will be longand bumpy. The focusneeds to be our people interms of investment.Weneed to believe in our-selves for others to be-

lieve in us...

Zambia

Development

Agency

Namibia Investment Centre (NIC) Director , Mr. Moses Pakote (right)and Namibian Embassy Trade Representative in Lusaka during NICdelegations visit to Zambia.


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PAGE 2 ISS UE 13

from male applicants and only 751 were

from female applicants.

Meanwhile, NIC Director, Mr. MosesPakote, said Zambias empowermentprogramme was the most inclusive in the region among the empowerment

initiatives Namibia had been using as ayardstick for its empowerment strategy.Mr. Pakote said having an empower-ment strategy that embraces knowledgeand financing for both individuals and

companies was a remarkable approach.

He said Zambia had set a citizen em-powerment strategy that would overhaul the countrys economic landscape andmake it more competitive as investorspreferred economies with stronger do-

mestic economic backbones.

US$3bn PPP Housing ProjectComingKwacha Capital Management, a Zambiancompany, is seeking US$3billion from theInternational Finance Corporation (IFC) toundertake a long-term housing develop-ment project under the public privatepartnership (PPP).Kwacha Capital Management ManagingPartner, Mr. Akapelwa Akapelwa said thecompany had requested for the funds

through the IFCs private sector invest-

ment window, which was under the Infra-structure Recovery and Assets (IRFRA)Fund. He said the company intended toundertake a joint venture PPP housingdevelopment project in partnership withNational Housing Authority (NHA) to de-velop 100,000 low and medium-cost

housing units.

Mr. Akapelwa said Kwacha Capital Man-agement had since written to the IFC over

the joint housing development projectprospects and probable accessing ofUS$3 billion from the IRFRA Fund to becommitted over a period of 10 to 15

years. He said the funds are specificallyaimed at promoting urban development inthe local housing sector, hence facilitating the initial provision of adequately decent

and affordable housing units in Zambia.

Mr. Akapelwa said such a strategic part-nership would also focus on the publicprivate partners establishing a proposedNational Housing Development Fund tofurther promote the sustainable long-termand enhanced provision of affordablehouses in the country through the NHA,which is governments executing agency.Currently, Zambia has over a million hous-ing deficit with an average cost of US$30

to US$50 billion to meet the back-log. TheIRFRA fund has an initial fund capitalisa-

tion of US$45 billion. Daily-mail.co.zm

CEEC to Establish Incubators atCBUThe Citizens Economic EmpowermentCommission (CEEC) will soon sign amemorandum of understanding (MoU)with the Copperbelt University (CBU)School of Business Studies for the estab-lishment of incubator projects at the insti-tution for grooming graduates into busi-ness owners, CEEC Director General, Mrs.Mabel Mung'omba has said.Speaking during a visit by the NamibiaInvestment Centre (NIC) delegation to theCommission, Mrs. Mung'omba said theinitiative to create incubator programmesat CBU was one of the new empower-ment products under the Citizens Eco-

nomic Empowerment Fund (CEEF).

She said the Commission would useincubator programmes as models to

mold young people into adept entrepre-neurs who could break new ground for

other empowerment projects.

The incubator initiative will be used toset the ground for more such projects in

the country, probably to have one incubator programme in each district Mrs.

Mungomba said.

She said the Commission had started adairy product centre pilot project in Fis-enge area on the Copperbelt, whichwould be used to hive-out some school

drop-outs from poverty.

Mrs. Mungomba added that CEEC incollaboration with the Ministry of Educa-

tion and TEVETA were reviewing theschool curriculum to blend-in empower-ment oriented subjects that would helpgenerate an enterprising spirit intoyouths at the time they were choosing

careers.

We need empowerment literacy in thecountry. The earlier we catch people thebetter, she said. Currently, theres toomuch dependency on government for alivelihood and people perceive CEEF as agift from government. We need to change

peoples attitude by introducing empow-erment literacy in our education systemat the early stage. Most people getdefeated when we tell them this is aloan, not a grant or gift because they areused to social safety nets that involvefree capital to run businesses, she said.Addressing that culture should start at

the tender age of citizens so that theygrow with an empowerment genie and

champion entrepreneurship.

And Mrs. Mungomba said CEEC hasapproved 350 projects from last year todate, with the biggest project havingreceived K3.3 billion funding. She furthersaid the Commission received 3, 890applications for the fund last year and

part of this year, out of which 3,139 were

Economic Growth StrainingZESCOZESCO Acting Managing Director, Mr.Ernest Mupwaya has revealed that there isan increase in power demand in the coun-try due to the national economic growthrecorded in the first quarter of 2010.Briefing the press in Lusaka, Mr. Mup-waya said ZESCO has been struggling tomeet the increased demand for powercreated by the increase in economicactivity in the country, which has had aripple effect on households. He howeversaid the completion of rehabilitationworks at the Kafue Gorge power stationand the progress being made in finalis-ing works at the Kariba north bankpower station is expected to inject a

further 300mega watts of power supply.

Mr. Mupwaya also disclosed that the joint venture partnership betweenZESCO and Tata Africa for the construc-tion of the Itezhi Tezhi power station willalso contribute significantly contributeto the national power supply . He added that ZESCO would be signing aU$100,000 contract to conduct rehabili- tation works in Lusaka, Copperbelt and

Chipata.

ZCCZ, 4 Firms Ink US$100m In-vestment DealZambia-China Economic and Trade Co-operation Zone (ZCCZ) and four compa-nies from Chinas Shangdong Provincehave signed some investment agreementsfor US$100 million to allow the four firmsstart operating in Chambishi MFEZ.Ministry of Commerce, Trade and IndustryDirector for Industry, Mr. Siazongo Si-akalenge signed on behalf of government,while ZCCZ general manager, Mr. TaoXinghu signed for ZCCZ and Mr. Song

Yuanfang, chairman of Liaocheng Munici-pal Peoples Congress signed for the fourcompanies. The four companies are theShangdong Guanfeng Seeds TechnologyCompany Limited, Guanfeng Group ofChina, Xiang Guang Group and Yanggu

Xiangguang Copper Company Limited.

Speaking after the signing ceremony, Mr.Siakalenge said the investment by thefour firms into the Chambishi MFEZ was

the starting point for over 50 companiesthat were expected to operate in the zone.He added that about 20 companies wereexpected to start operating in the Cham-bishi MFEZ by the end of the year. And Mr.Song said Chinese firms will continue

investing in Zambia as part of cementingrelations between the two countries and

Africa as a whole.


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Government, CNMC SignUS$600mn AgreementGovernment has signed a US$600 millionagreement with China Non-Ferrous MetalsLimited (CNMC) for the extraction of cop-per from the Mufulira Tailings dams tobreathe economic life into the liability thatwas left over during the privatisation of theZambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH) assets.ZCCM-IH board chairperson Mr. AlfredLungu and CNMC chairperson Mr. TaoXinghu signed the agreement at the Min-istry of Mines that would see tailingsdams 8 and 10 reprocessed while the

environment would be protected.

CNMC is the parent company of SinoMetals Leach Zambia (SMLZ) limited,which will run the Mufulira Tailings pro-

ject after feasibility studies were con-

ducted at a cost of US$5 million.

Mines and Minerals Development Minis- ter, Mr. Maxwel Mwale described thedevelopment as landmark, coming at a

time when copper prices were tappinghigh price marks on the international

market.

And Mr. Tao said of the over US$600million to be invested by CNMC throughits subsidiary, SMLZ, US$300 millionwould be invested in the Luanshya Cop-per Mines which started copper produc-

tion on March 26, 2010. He said most of

that money would be spent on developingthe Mulyashi copper project.

Mr. Tao said the money would be used tobuy new mining equipment, develop anew copper mine, expand an existingcopper mine and smelter facility, developa tax-free economic zone and expand a

copper processing plant.

"We will begin the investment of US$600million soon and hope to finish this in-

vestment by next year," Mr. Luo said.

According to official data, CNMC plans to

start developing the Mulyashi CopperMine this year after approving a feasibil-ity study and production is expected tobegin in 2012 with output projected atabout 60,000 tonnes of copper a year.

allafrica.com

DRC Tops Zambias Export Mar-ketsDemocratic Republic of Congo (DRC)has become Zambias largest exportmarket in SADC after overtaking SouthAfrica, as trade between the two coun-tries reached US$ 1 billion, Minister ofCommerce, Trade and Industry, Mr. FelixMutati has said.

Speaking on the sidelines of the CO-MESA 3rd Investment Forum in Egypt,Mr. Mutati said Zambia and Congo DRwere discussing the possibility of sign-ing a trade agreement that would mutu-ally benefit the two countries since thelater provided a big market for some

Zambian products.

He said although trade between Zambiaand Congo DR reached about US$1billion in 2009, overtaking South Africaas the largest export market for Zam-bian products, lack of a trade agreementbetween the two countries remained a

bottleneck.

Mr. Mutati added that the issue of non- tariff barriers remained a challenge to the discussions as the two parties hadnot yet reached an agreement on theissue for two years since the discussions

started.

And Mr. Mutati said Zambia was thisMay expected to sign a memorandum ofunderstanding with Tanzania for theconstruction of another one-stop-borderpost to ease trade between the two

countries.

The one-stop-border post is a strategyZambia is using to ease doing businessbeyond Zambian borders en-route to the

sea. Allafrica.com

ZDA to Pilot One-Stop-WindowFacilityFrom Page 1

formulating new strategies that wouldconsolidate investment and trade pro-motion efforts between Zambia andNamibia, and expand trade volumes andreduce trade imbalances between the

two countries.

He added that ZDA and NIC were work-ing on a memorandum of understanding(MoU) that would promote joint invest-ment and export promotion missions,

linking websites of the two institutionsand coordinate their participation in

trade fairs, among others.

It will also facilitate the creation of jointventures for companies with similarbusiness lines between Zambia and

Namibia, Mr Chipwende said.

He said the agreement would also allowZambian companies utilise Walvis BayPort, which was the safest and quickestroute for importers and exporters to and

from the Western world.

Meanwhile, NIC Director, Mr. MosesPakote said ZDAs close cooperationwith strategic institutions and the busi-ness community was an outstanding

model for Zambias neighbours to repli-cate in order to address some chal-lenges they faced in incorporating the

private sector for national development.

Mr. Pakote said some MSE empower-ment initiatives Zambia had designed

under the CEEC and ZDA were betterthan some models pursued in developed

economies.

Yours is more comprehensive. Its notelite inclined as such, it tries to bringeverybody with a business idea onboard, which is an outstanding model,

he noted.

He said NIC was encouraged to partnerwith ZDA to ensure that it lived to the

publics expectations at home.

Investors in Tax Free ZonesFinance and National Planning Minister,Dr. Situmbeko Musokotwane has urgedboth local and foreign investors to con-sider investing in a special tax free zonebeing established under the ChambishiMulti-Facility Economic Zone (MFEZ) toenhance value addition to raw materials.Dr. Musokotwane said Zambia was look-ing for investors to create industries thatwould process raw materials such ascopper, and make some of the compo-nents used in mining which are currently

imported.

"The infrastructure like roads, water and telephone lines are more or less doneand the effort that is there now is to mar-ket the zone by attracting investors,

Musokotwane said in a statement.

China Nonferrous Metal Mining (CNMC),which has promoted development of thezone, plans to invest US$300 millionbetween 2010 and 2011 in projectssuch as the Chambishi copper smelter,

its president Mr. Luo Tao said.

The Zone is located in the mineral-rich

Copperbelt.Dr. Musokotwane said Zambia and ChinaNonferrous Metal Mining were develop-ing another tax free zone in the capitalLusaka that would host companies spe-cialising in light engineering and interna-

tional conferencing.

"The master plan has been done and wewere told by the promoters of the project,China Nonferrous Metal Mining, thatconstruction is going to start after the

rainy season," he said.

The initiative to establish economic

zones is meant to enhance value-addition to Zambia products for greater

economic value. Reuters

PAGE 3ISSUE 13


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RIA Promotes US$40bn Invest-ment into 150 ProjectsThe COMESA Regional Investment Agency(RIA) is promoting 150 projects, with aninitial investment of more than US$40billion in all member countries.The promotion which started at the CO-MESA 3rd Investment Forum that washeld in Egypt, includes additional six re-gional projects of high priority in the trans-portation and energy sectors. The firstproject is a development corridor thatconnects Djibouti, Ethiopia and Sudan bya railway road, while the second is a railproject that links Kenya, Ethiopia andSudan, known as the Lamu Corridor devel-

opment.

The third is a railway road that connectsthe countries of Kagera River basin, whichare Tanzania, Rwanda and Burundi. Theother project is in the energy sector andaims at connecting Zambia, Kenya andTanzania by power grid interconnection.The expected investment cost of the Zam-bia, Kenya and Tanzania power intercon-

nection project is $880 million.

The other two include a power intercon-nection between Ethiopia and Kenya and

the constructing of a Liquefied NaturalGas terminal in Djibouti that would enablegovernment to make informed decisionson the use of natural gas as an alternativesource of energy to ensure continuousand stable supply of the energy in the

local and regional markets. The rest of theprojects are classified into nine main cate-gories which are agriculture, food process-ing, livestock, real estates, infrastructure,

tourism, energy, information technology

and financial services.

For Zambia, the projects RIA is promotinginclude Katito Farm Limited, Citrus FruitPlantation and Kasba Bay Development aswell as the Kariba Lake Waterfront Devel-opment. Others are the Chingola-KitweDual Carriage Way, Chirundu ShoppingComplex, Airport Infrastructure, ModernHospital and the Kafue Gorge Lower con-struction of 750 megawatts hydropower

station for generation of electricity. busi-nessweek.

Africa to Enjoy Strong Rebound IMFSub-Saharan African (SSA) will enjoy astrong recovery this year and next yearafter the region fared much better thanmost developed countries during theglobal economic crisis, the IMF has said.The IMF estimated that economic growthin the region would reach 4.7 percent this

year and 5.9 percent in forecasts from itslatest World Economic Outlook. That wouldmark a sharp rebound from 2.1 percent

growth the region achieved in 2009when SSA countries escaped the direeconomic recession that ravaged rich-world economies. Sub-Saharan econo-mies were also benefiting from rebounding trade, higher commodity prices and gov-ernment spending to smooth out the im-

pact of the financial and economic crisis, itadded. Sapa-AFP

COMESA Poised for IncreasedInvestmentThe third COMESA investment forum wasaimed at attracting investment into CO-MESA member states, by bringing togetherleading African and international investors,policy-makers and analysts in one place tocreate fruitful partnerships, COMESA Re-gional Investment Agency Board Chairman,Mr. Chalimba Phiri has said.The journey will be long and bumpy.The focus needs to be Our people interms of investment. We know that everycountry acts in its own interest; what isneeded is a balance for a win-win out-come, said Phiri setting the tone of theevent with his opening gambit at the con-

ference.

Regional financial mass is critical to at- tract investment to tap into the market;therein lies the genesis on access to capi-tal, said Mr. Nigel Chanakira, Founder and

CEO, Kingdom Financial Holdings Lim-

ited.

Investment should be at domestic level,not FDI. We need to believe in ourselvesfor others to believe in us. Local capitalmust be deployed productively. We mustcreate a language for business and re-move barriers for this market to become areality. We must make sure COMESA workswithin its region and the rest will follow,said Mr. Nkosana Moyo, Vice President of

the African Development Bank.

And Dr. Mahmoud Mohieldin, Minister ofInvestment, Egypt said: Ideas dissemi-nated through a good communication sys- tem get people engaged and from there

capital input will flow. Strategy is aboutbeing pragmatic and getting solutions

put in place. ameinfo.com

AFDB to get US$90bn CapitalBase LeaseThe capital base of the African Develop-ment Bank (AFDB) is set to increase by200 percent, giving the institution morecapacity to meet the needs of countries onthe continent, particularly low-incomeones.The bank announced the plan by its fun-ders to increase its capital base to US$90billion on 24 April, following the 11th meet-

ing of the Group Board of Governors Con-sultative Committee in Washington DC on23 April - on the sidelines of the WorldBank and International Monetary Fundspring meetings. A final decision on theincrease is expected to be announced atthe bank's annual meeting in Abidjan, Cted'Ivoire, which runs from 27 to 28 May.

Media CSA

SA Bouncing Back With 2.6%GrowthThe IMF has projected 2.6 percent eco-nomic growth for South Africa (SA) thisyear, faster than its previous forecast of1.7 percent made last October.The latest IMF estimate is above officialgrowth forecasts of 2.3 percent this year,but just below market consensus, whichsees the economy expanding 2.9 percent.

The IMF sees the world economy growing4.2 percent this year, revised up from 3.9percent in January, with emerging giantsChina and India leading the recovery from

the worst global recession in six decades.

Allafrica

Angolas Private Equity FundRaises US$28mAngolas first private equity fund hasraised US$28 million in capital in its firstclosing, in an important step forward forthe countrys capital markets.The fund, which links local capital marketswith international sources of finance and

to small and medium-sized privatelyowned businesses, was initiated by Nor-fund, in association with the local partner,

Bank of African Investment (BAI). Busi-nessweekSABMiller to Build US$34mBrewery in NamibiaSABMiller will be constructing a US$34million brewery in Namibia in the secondhalf of the year to increase its presence inthe country by locally producing its popularCastle and Castle Lite brands.The construction of the brewery is ex-pected to have a capacity of 220,000hectolitres. SABMiller will hold a 60 per-cent stake in the brewery through SABMil-ler Namibia Ltd, while the remaining 40percent will go to local Namibian partnersin a black economic empowerment (BEE)

scheme.

The BEE partners include Onyewu Invest-ments, which will hold 20 percent, and three charitable trusts. The new brewerywill also include a returnable bottle pack-

aging line and warehousing facilities.

Reuters

ISSUE 13PAGE 4Regional SpotlightRegional SpotlightRegional Spotlight


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Government Develops CTI Imple-mentation PlanGovernment is developing an implementa-tion plan for the commerce, trade andindustry (CTI) policy to facilitate the imple-mentation of all commerce and industrial

related activities in the country.Ministry of Commerce, Trade and Indus-try Permanent Secretary, Dr. Buleti Nse-mukila said the CTI implementationframework would be executed alongwith the micro, small and medium enter-prise (MSME) implementation plan toensure that the objectives of the two

policies were achieved.

Speaking during the Namibia Invest-ment Centre bench-marching mission onbest practices of the Zambia Develop-ment Agency in investment and export

promotion, MSME and market develop-ment, the PS represented by Director ofForeign Trade in the ministry, Mrs. PeggyMulewa, said the implementation planwas a new government strategy thatguaranteed effective implementation ofpolicies. And Dr. Nsemukila said govern-ment has formulated a policy that sup-ported preferential treatment of locallyproduced goods and protected the con-sumers. He said the Competition andConsumer Protection Policy would pro- tect both the local businesses and con-sumers from undue suppression by for-

eign goods that often did not meet therequired standards.

Dr. Nsemukila said the policy wouldstrengthen the Zambia CompetitionCommission law to enhance competitionfor local products that were oftenswarm-over by foreign goods due to lackof legislation that provided protection.He said the policy would set a thresholdfor goods that entered the Zambianmarket duty free based on quality for thelocal producers and consumers to get a

fair deal on the market.

And the PS said the companies Act wasbeing repealed to meet business re-quirements, and for Zambia to remaincompetitive as an investment destination.Dr. Nsemukila added that current reforms

under the trade and business licencingsought to increase trading hours to 20:00 or 21: 00 hours to provide space for the Zambian workforce do their shop-ping after working hours. Meanwhile, thePS said government has signed 12 In-vestment Promotion and ProtectionAgreements (IPPAs) worth about US$7billion with different investors since theIPPA strategy was formulated. He said

the signed IPPAs could translate into thecreation of more than 50 thousand job

opportunities in various sectors.

Copper, Cobalt Output-up in FirstQuarterFirst-quarter copper production in Zambia,rose to 174 407 tonnes from 170 948tonnes produced in the correspondingperiod last year, a statistics report from theBank of Zambia (BoZ) showed.During the same period, copper exportsin the first quarter rose to 173 421 ton-nes from 153 306 tonnes that were

exported in the same period last year.

We should expect more copper with thestart of production at the Konkola DeepMining Project, the resumption of outputat Baluba mine and ramp up at Lum-wana mine, said Dr. Mathias Mpande, amining engineering senior lecturer at theUniversity of Zambia. Zambia shouldreach 800 000 tonnes of copper without

much difficulty by the end of 2010unless something unexpected happens.

Zambias total copper production in2009 was slightly below 700 000 ton-nes. And BoZ data indicated that cobaltoutput in the three months to March 31 jumped to 1 921 tonnes from 1 081 ton-nes last year, while exports of cobalt in-creased to 1 905 tonnes from the 1 251tonnes exported during the first quarter of2009. Cobalt production is increasing

because Chambishi Metals has startedproducing again. The cobalt price is alsorising and this is an incentive for cobalt

producers to increase their output, saidDr. Mpande. Mining Weekly

Zambia 2010 Wheat Output Up13.7 PercentZambian 2010 wheat output has risen by13.7 percent compared with the previousyear to surpass domestic consumption,and the country plans to export part of thissurplus, Zambia National Farmers' Union(ZNFU) Executive Director, Mr. NdamboNdambo has said.Mr. Ndambo said wheat production in the2009/2010 season rose to 216,000 ton-nes from 190,000 tonnes in the2008/2009 season due to favourablepolicies, making Zambia the only southernAfrican nation to be self sufficient in

wheat.

Zambia's annual wheat consumption isabout 160,000 and farmers were currentlyin talks with the government over theplanned export of excess wheat and wheatflour to countries within the region, hesaid. Zambia's wheat production fell to aslow as 30,000 tonnes a year in the 1990s,but in the last five years, annual average

output has been about 130, 000 tonnes.

Mr. Ndambo said production of wheat had

Expanded because of well coordinated trade policy environment, plus hugeprivate sector investment into irrigation

systems.

"Given the export potential, the futurelooks bright except that government

support will be critical in managing thetransition successfully." "It will be important to ensure that a conducive tradepolicy environment is sustained for the

private sector to continue producing,"

Mr. Ndambo said. He said the main con-straint farmers faced was the high costof production, which made Zambianwheat and wheat flour less competitive

in the region.

"The other big problem is most countriesin the region do not produce wheat,subsidised wheat imports are commonly

sourced into the region and this createsunfair competition for Zambian wheat in

the regional markets," he said.

Mr. Ndambo said the future of wheatfarming would depend on how success-fully Zambia managed the surplus production situation to move to a point whereproducer prices remained at a level where

farmers could make a profit. Reuters

Zambian Women EmpoweredWomen Investment Portfolio HoldingsLimited (WIPHOLD) in collaboration withZDA recently held a conference for womenwhose main objective was to engage Zam-bian women on pertinent issues of empow-erment in order to promote a partnershipbetween Zambian women and WIPHOLD.The conference was preceded by a Galaevening that was graced by the FirstLady Mrs. Thandiwe Banda at the HotelIntercontinental where the WIPHOLDvision and the empowerment modelused to empower women through finan-cial education and investment was

launched.

Mrs. Banda in her speech to the galaencouraged women to take empower-ment seriously by taking advantage ofopportunities such as the WIPHOLDmodel and take their place in society

instead of being in the background.

The colourful gala was attended bywomen from a cross section of societyincluding the public sector and ordinarywomen who are trying to make a differ-ence in their lives and the communities

where the live.

The following day the conference at-

tracted more than 300 women, whowanted to learn more about the WI-POLD model, exceeding expectations

ISSUE 13 PAGE 5


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AID IS NOT THE ONLY ANSWERYears on from the Gleneagles Summit,governments, NGOs, multilateral organisa-tions, civil society and the private sectorare taking stock of what has beenachieved in the past years.As an African-originated multinationalbusiness committed to helping achieve the Millennium Development Goals,SABMiller believes two relatively unher-alded, but nonetheless significantachievements have evolved from the

Year of Africa.

Firstly, the private sectors role in pov-erty alleviation is increasingly being ana-lysed by policymakers with the samedegree of rigour as aid and debt relief.This is a much needed development.Secondly, there is a growing trend to-

wards more effective collective actionfrom the international business commu-nity, in partnership with the public sector, to address poverty. The fact thatbusiness has been brought more closelyinto the consultation and policy-development process is both welcome

and significant.

There is no doubt that, in the past, aidand debt relief have dominated policydiscussions sometimes at the expenseof robust and intellectual debate around the central role that investment and jobcreation play in improving the lives of the

315-million people living on less than adollar a day in Africa.

There is now a greater appreciation amongall parties that what is good for business isgood for development. Underpinned by amore rigorous and in-depth understandingof what the private sector really brings to

the poverty-alleviation equation, thisgrowing consensus is providing an inter-national framework for more effective

public-private sector partnerships.

Collective actionOne of the most tangible outcomes of

this has been the formation of BusinessAction for Africa a fast growing inter-national network of more than 100 com-panies and organisations supported by thePrince of Wales International BusinessLeaders Forum and the UK government.Business Action for Africa is helping to

shape the debate about business role in

poverty alleviation.

The companies involved, which includeSABMiller, Anglo American, De Beers,Shell and Unilever, have been instru-mental in moving the debate on what the private sector can do, away from

corporate philanthropy towards supplyand distribution chains, market-based

solutions to poverty and favourable inve-

-stment climates.

As a result, the current debate about theinternational business communitys rolein Africa and poverty alleviation is focus-ing on two areas. The first relates tohelping policymakers create business

environments that stimulate local eco-nomic activity and remove obstacles to

foreign investment.

At the international level, this involvesadvocating a fairer international tradingsystem, towards which we have seendisappointingly little progress to date.The second relates to our core businessactivities and how we transfer skills, trainpeople and use our value chains to createmarkets and business opportunities for

entrepreneurs and small-scale farmers.

Beyond aidBoth these areas are absolutely critical to Africas future economic growth.While we accept that in the short term there is no realistic alternative to in-creased aid flows, aid cannot go ongrowing forever SABMiller CEO, Mr.

Graham Mackay argues.

The billions of dollars in aid so far havenot led to economic growth in Africa,despite beliefs to the contrary. Doublingthe aid budget will not, as many believe,lead to the 7% to 8% growth rate re-quired to begin truly lifting Africans out

of poverty.

It is essential that people have themeans to make money and createwealth for themselves. Economic growthdriven by the private sector is the key in

the long term.

Since 2005, Africas economic growthreached an eight-year high of 5%, aver-age inflation fell to historical lows andreal gross domestic product per capitaincreased by 2.7%. There are undoubt-edly opportunities for growth and in-creased private sector activity in Africa.The current Chinese and Indian interest in

the continent, coupled with surging com-modity prices, increases these opportuni-

ties.

Investment climatesSo what can the international businesscommunity and policymakers do to helpAfrican entrepreneurs and small-scalefarmers generate more local economicactivity and take advantage of the im-provements in Africas macroeconomic

performance?

Firstly, we can work with African govern-ments and international donors to im-prove investment climates in Africa so that international investors, small busi-

nesses and entrepreneurs can take adv-

-vantage of these business opportunities.

In spite of the encouraging trends wehave seen recently, barriers to doingbusiness in Africa remain key obstacles to economic growth. To address theseissues SABMiller, along with Anglo

American, Shell and Unilever, are con-tributing to the Investment Climate Facil-

ity (ICF).

The ICF is a new public-private partner-ship focused on improving investmentclimates in Africa. It was endorsed at theGleneagles Summit and is supported byAfrican heads of state, the African Un-ion, the European Commission, theWorld Bank and the British, Irish and

Dutch governments.

Core businessSecondly, we must continue to run suc-cessful, profitable companies that oper-ate in a responsible and accountableway and provide markets to suppliersand distributors of our products, Mr.

Mackay added.

Our core business activities are farmore likely to make a long-term andsustainable impact on Africa than corpo-rate social investment programmes explic-itly aimed at meeting development chal-lenges. Our sales and marketing depart-

ment in Zambia, for example, has createdmore than 1 800 jobs over the pasteight years by investing nearly $1-million

to establish independent small businessesdistributing and selling our carbonated soft

drinks.

Zambia Breweries provided entrepreneurswith training and interest free loans, whichenabled them to start and run successfulenterprises, creating wealth for themselvesand their dependents. Another example isa low-cost sorghum-based clear beercalled Eagle Lager, which SABMiller intro-duced into Uganda and Zambia. Both gov-ernments have given us excise exemptionsbecause we are using locally grown sor-

ghum and not importing barley.

This initiative has enabled us to bringnearly 10 000 small-scale farmers into oursupply chain and provided a high-quality,affordable product for local consumers.These are just two small examples fromour African businesses, but they go to theheart of how the private sector can make

real and substantial contributions togrowth in Africa. Many other multination-

als have similar initiatives.

The momentum generated by the focuson Africa has created an environment that is increasingly conducive to busi-ness working more effectively itself and,

with governments, NGOs and internationaldonors, to tackle the issues ofpoverty on

the continent. Mail & Guardian.

ISSUE 13 PAGE 6


7/7

7

Pick n Pay Coming to ZambiaPick n Pay Zambia Ltd will soon openseven corporate stores in Zambia with aprojected investment plan of US$27 mil-lion.According to the companys investmentplan, it will open the seven stores duringthe first 5 years (Phase 1) and 13 stores

within 10 years (Phase 2).

The project will commence as soon as the company signs an Investment Pro-motion and Protection Agreement (IPPA)

with Zambia Development Agency.

A total of 1,000 jobs are estimated to becreated during the first phase of thecompanys investment into the Zambian

economy.

The projected jobs will be mostly forZambians, with insignificant number ofexpatriate staff who will provide the neces-sary training to Zambians for transfer of

skills for self-sustainability and capacity

building.

Pick n Pay Zambia Ltd is a subsidiary ofPick n Pay Group, which has a chain of

stores in South Africa, Namibia, Bot-

swana, Zimbabwe and Australia. In Zam-bia, the company was incorporated in

July last year

Promoting Economic Growth

and Development

Zambia Development Agency

P.O Box 30819

Nasser Road

Lusaka, Zambia

Tel: 260-211-229240

Fax: 260-211-225270

E-mail: [email protected]

Website: www.zda.org.zm

ZDA Establishes Show Room inMonguThe Zambia Development Agencys microand small enterprise (MSE) office in West-ern Province has established a show roomin Mongu for exhibition of various productsby the business community in the area.And the Agency has realised K24.7 mil-lion from the Show Room charged tousers of the facility for exhibiting andselling different wares in the first quar-

ter.

Most of the merchandise exhibited in

the Show Room include carpentry waressuch as office furniture, dinning tables,beds, as well as agricultural producesuch as rice and sweet potatoes, among

others.

Meanwhile, ZDA is establishing a CurioShop in Mongu for displaying curio prod-ucts, which are a source of livelihood for

most people in the province

The Curio Shop, will bring a pool of vari-ous curio products to a central placewhere customers can sample the prod-

ucts.

The venture is currently used for displayingcurio goods for free until it is fully opera-

tional and well known.

Zambian Women EmpoweredFrom Page 5

of the organisers and additional seatshad to be brought into the conference

room to create space for participants.

The conference agenda included a pres-entation on the WIPHOLD vision, theWIPHOLD model, and identifying oppor-tunities where WIPHOLD would co-investwith women of Zambia. Among the projects that were identified for co-investment were a nursing school and aleather manufacturing project. After

reviewing other projects, WIPHOLDhopes to identify ten other projects to

facilitate the empowerment process.

Women Investment Portfolio HoldingsLimited is a broad-based black empow-erment company dedicated to the eco-nomic empowerment of women in SouthAfrica. It was founded in 1994 and hasestablished itself as a leading invest-ment holding and financial services

group.

WIPHOLD is one of the most effectivecollective actions that are used to ad-

dress poverty among women and reducetheir dependency on men for a livelihood

by women.

SELECTED ECONOMIC INDICATOR MARCH 2009 MARCH 20101. Inflation rate (%) 13.1 10.12. Average Treasury bills rate (%) 14.0 2.53. GRZ Bond Yield Rate: (24-month) (%) 17.5 10.04. Average Lending Rate (%) 26.9 28.05. Exchange Rates: (ZMK/foreign cur-

rency)US$ 5,600 4,695

EURO 7,200 6,400BPS 7,900 7,000RSA 550 630

6. Agriculture Commodity Prices:

(US$/MT)Maize 340 N/AWheat 367 N/ASoya beans 470 N/A

7. Capital Market ActivityEquity 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$)Inflows (Buying) (US$) 23,400 184,000Outflows (Selling) (US$) (1,352,000) (4,800,000)Net Position (US$)

Source: BoZ, CSO, LuSE, Zamace(1,328,000) (4,616,000)

zda spotlight : april 2010

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