54 AFRICAN COUNTRIES

Agriculture :

Zambia possesses huge amount of potential in the agriculture sector. Well gifted with good soil and an area of 60 million hectares arable land out of which only 15% is in use, ample amount of surface and underground water, climate conditions appropriate for the cultivation of a wide variety of crops like wheat, soya, bean, coffee, cotton, tobacco, sugar, paprika etc. The Zambian government is also contributing to the enhancement of this sector by allocating vast tracks of land near the rail and road networks for prospective investors and electrification of these blocks is underway. Agro-processing of wheat, soyabean, cotton, tobacco, spices, sugar and vegetables is encouraged to add value to local produce. Special incentives are offered to commercial and small-holder farmers.

Zambia has rich forestry reserves consisting of pine and eucalyptus, but logging is threatening the natural resources. In terms of fisheries, commercial fish production is about 70,000 tonnes per year. Both government and the private sector are involved in the fisheries industry and are working to implement programmes of sustainable fishing practice.

Manufacturing :

The manufacturing sector of the Zambian economy is one of the top performers and also a priority sector. It contributes to around 11% to the GDP and 10% to the employment.

Zambia’s current base in this sector comprises of companies into food processing, beverages, textiles, leisure and sporting equipment. The main activities include the smelting and refining of copper and other metals and metal products, petroleum refining, the production of fertilisers, chemicals, explosives, cement, tobacco products and textiles.

Another important reason for greater potential for investment in the manufacturing sector, is that the sector possesses all the vital required elements such as raw materials, labor force, abundant land and a good banking and financial system.  Measures have been put in place to support growth within the sector including the creation of Multi-facility Economic Zones (MFEZs), credit provision and industrial skills training. Some of the potential areas of investment include cement production, textiles and clothing apparels, agro-processing, processed and refined foods, leather products, wood processing, plastics, vehicle parts and assembly, chemicals, refining of petroleum, and metal and engineering works.  There is exemption on customs duty on the importation of most capital machinery and equipment used for manufacturing while many other incentives exist for the sector.

Mining :

Zambia has vast amount of wealth in minerals which helps in inviting and rich array of opportunities for potential investors. The investment in mining industry, for the year 2007 was expected to be at US$1bn which was the highest in many years. But rising costs in this sector, problems of low ore grades, high fuel and electricity costs as well as inadequate transport facilities have been major bottlenecks for the domestic mining industry pose a serious threat to the performance.

In addition, falling commodity prices are also a major threat. The price of copper nosedived, due to the ongoing global economic crisis, from a high of US$9,000 a ton in 2006 to below US$4,000 a ton by October 2008. In 2008 at least five exploration projects have been mothballed and unions are braced for job losses given the bleak prospects for future orders.

Aimed to reduce the dependence on raw copper, the government has created various opportunities which have led to a rapid growth in the non-traditional exports leading to a diversification of the economy. The target markets for such exports include the Common Market for Eastern and Southern Africa (COMESA), Europe, the Far East and Asia.

Energy :

During liberalization period of economy, the Zambian Government has amended its legislation affecting the generation, transmission, distribution and supply of electricity and thus allowed  private sector entry.

The potential opportunities are in projects like Kafue Gorge Lower HydroElectric Project, Itezhi-tezhi HydroElectric Project, Zambia-Tanzania Interconnector and Zambia-Namibia Interconnector. The exploration potential for hydrocarbons (oil and gas) is another area that has not been fully tapped. The hydrocarbon source rocks are proven and are preserved in all basinal areas of Zambia. Such investments are supported by the National Energy Policy. The Government of Zambia encourages active participation from prospective investors with modern technological expertise.

Though the economy of Zambia has grown rapidly in the past 5 years but on the other hand it has also experienced a power deficit. As such the investors are invited to invest in power generation projects. Many opportunities exist in electricity generation and transmission projects.

Tourism :

Potential of Zambia as one-stop destination offers excellent prospects for advancement of this highly under-developed sector. There are 19 National Parks, 23 Game Management Areas, the largest Water Fall in the world and 23 million hectares devoted to the conservation of a spectacular variety of animals, the scope for an integrated quality tourism related investment is very attractive. Wildlife such as Elephant, Leopard, Lion, Cheetah, Rhinoceros, Zebra, Giraffe, Hippopotamus, Crocodile, Buffalo, Impala, Antelope, Baboon and a host of smaller creatures as well as over 700 species of Birds can be seen. There is potential of adventure holidays -white-water rafting, canoeing, rock-climbing, hand-gliding, fishing, bungi-jumping at Victoria Falls including its unique walking safaris offer excellent tourism potential.

For Further Reference

 National Customs

 Zambia Development Agency

 Doing Business With Zambia (Source: The World Bank Group)