Zda Spotlight : October 2009

Zda Spotlight Issue 8

Development Agency

October 31

Inside this issue:

Sale of Zamtel to Facelift its Value

8 Companies Qualify To Participate in Zamtel Sale

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54 Companies To Exhibit At Lubumbashi Fair

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US$461 Actual Investment Recorded by ZDA

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China Tops SA Export Stakes

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Nansanga Farming Block Gets ‘Life’ For Completion

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Tourism Prioritised in 2010

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Youth to Receive K250m Empowerment Funds

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Points of Interest • “Zamtel is as of strategic importance to Zambia as the mines, which we sold, hence government was carefully selecting an equity partner in the sale of the company to ensure the right partner buys the equity shares in the company.” • “ZDA needed coordinated support from all stakeholders for the country to realise meaningful benefits from the Agency’s extensive functions.” •

Zambia

“Government would continue to reduce the cost of doing business in the country by facilitating reforms in the Information and Communication Technology (ICT) and energy and labour sectors. ”

Quote “When buying shares, ask yourself, would you buy the whole company?” Rene Rivkin

Radio Phoenix, Dr. Musokotwane said the issue of RP Capital that some people were raising was taken to court and resolved and time had come for the actual sale of the company to take place. He said government recognised the strategic importance of Zamtel and was taking due care to entrust it into the right hands.

A strong infrastructure backbone is cardinal in enhancing the development of a country. Above the city of Dubai shows part of a road network (story on page 1 and 3)

pany’s efficiency and contribution to economic development, and people should give time to the Zambia Development Agency to complete the transaction without frustrating its efforts. The Minister said the Zambia Development Agency Act provided specific guidelines on the privatisation process to enhance transparency, which have been followed by the Agency throughout, in the sale of Zamtel. Speaking on

Finance and National Planning Minister, Dr. Situmbeko Musokotwane has said the sale of Zambia Telecommunications Company (Zamtel) was being done in the interest of the public, as the company has great economic value, which was being inhibited by financial challenges. Dr. Musokotwane said government was looking for a serious equity partner who could increase the com-

“Zamtel is as of strategic importance to Zambia as the mines, which we privatised, hence government was carefully selecting an equity partner in the sale of the company to ensure that a right partner buys equity shares in the company,” he said. The Minister said the financial status of Zamtel demanded that majority shares were sold to an equity partner to help recapture the company’s actual value to the economy and help reduce the cost of doing business being that ICT was at the Continued on Page 2

PS Calls For Improved Infrastructure… A strong infrastructure backbone in the country is cardinal in enhancing Zambia Development Agency’s capacity in investment, export and MSE growth promotion, Ministry of Commerce, Trade and Industry Permanent Secretary, Dr. Bulleti Nsemukila has said. Speaking

during his familisation visit of the Agency, Dr. Nsemukila said improving basic infrastructure such as road networks, rail systems and telecommunications were paramount in easing doing business in the country, and would make Zambia a competitive investment destina-

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tion. Dr. Nsemukila said countries with well developed infrastructure faired well on the Global Competitive and Doing Business Report, hence the need for Zambia to invest more in infrastructure development in order to realise meaningContinued on Page 3

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I S SUE 8

8 Companies Qualify To Participate in Zamtel Sale

Government Counsels Zambians on Business

54 Companies to Exhibit at the Lubumbashi Fair

Eight international companies and consortia have successfully prequalified to participate in the privatisation of Zambia Telecommunications Limited (Zamtel). The eight were among the 30 bidders who applied to prequalify in the partial sale of the telecommunications company after the Zambia Development Agency (ZDA) officially announced its privatisation in September this year.

Commerce, Trade and Industry Deputy Minister, Richard Taima has said the low number of individual-owned businesses in Zambia deprive the country of economic development and affected the attraction of foreign direct investment (FDI) due to a weak domestic business base.

ZDA Director of Export Promotions, Glyne Michelo has said Congo DR is the largest market for Zambia’s nontraditional exports (NTEs) in the world after South Africa and is by far the largest single market in the COMESA/SADC trade area.

These include Orascom Telecom Holdings S.A.E/Telecel Globe of Egypt, Altimo Holdings/Vimpelcom of Russia, Libyan LAP Greencom Limited/LAP Green Networks, Portugal’s Portugal Telecom SGP S.A; Telkom SA Limited of South Africa, UNITEL of Angola and two of India’s telecommunications giants Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited (MTNL). All the eight participants met the criteria for prequalification as set out in the invitation to prequalify, and are internationally recognised telecommunications operators with a strong track record in emerging markets investment. The prequalified companies and consortia will be invited to participate in the due diligence process, scheduled to commence on Monday 2nd November 2009 to 23rd December. A process letter and an information memorandum will be sent to each prequalified participant setting out in detail the structure and schedule for the due diligence, the procedure for bidding, and providing a comprehensive overview of Zamtel’s activities. To maximise transparency and ensure total confidentiality, the ZDA has established a secure virtual data room, allowing prequalified participants to examine all key Zamtel documents remotely. The virtual data room will ensure candidates gain access to same information and at the same time. Participants will also be invited to make site visits to key Zamtel facilities, meet with management and other stakeholders and carry out their own assessment of the Zambian telecommunications market. Before the close of the due diligence process, participants will submit a bid for between 51 percent and 75 percent of the equity in Zamtel, based on their own evaluation of the company and the market opportunity. The initial bids will be received, evaluated and short listed by the ZDA. The announcement of the short listed bids will be made on 11th January 2010. Thereafter, successful companies and /or consortia will be invited to take part in the next phase of the process.

Mr. Taima said Zambians should take up the challenge of establishing their own businesses that would make a foundation on which FDI should build on to strengthen the country’s economic position. He said government was always in the forefront to facilitate the growth and the partnership of the private sector to ensure that Zambia’s abundant natural resources were meaningfully exploited through business ventures. Mr. Taima said the setting up of individual-owned enterprises could contribute to the growth of the national economy and wealth creation. The Deputy Minister urged Zambians to take advantage of their geographical position to foster trade between Zambia and its neighbouring countries. He said most districts had vibrant business opportunities that needed to be utilised to realise national development. Zanis

Sale of Zamtel to Facelift its Value From Page 1

epicentre of business. “The current financial position of Zamtel demanded that a large percentage is given to a serious investor who can help to recapture the economic potential of the company and contribute to people’s welfare through its supplementary economic effects to business,” Dr. Musokotwane said the government and the equity partner in the company will then float their shares on the Lusaka Stock Exchange to enable Zambians participate in the telecommunications business. The minister has urged critics to the sale of the telecommunications company to give time to the agency mandated by law to privatise parastatals without making prejudicial conclusions. “Some people opposed the sale of Zambia National Commercial Bank (ZANACO), and organised protests, but now we are seeing the fruits of that transaction from the facelift the company has been given by its new owners,” he said.

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“In 2008, the DRC market accounted for US$440 million of Zambia’s NTEs, and preliminary export figures recorded by ZDA from January to June this year indicate export earnings of US$320 million,” Mr. Michelo said. Speaking during a pre-mission briefing, Mr. Michelo said the DRC provided the largest consumer market for Zambian goods at minimal transportation costs due to its proximity. He said the DRC production industry was dormant and commercial agriculture was largely nonexistent, thus offering Zambia huge market opportunities. Fifty-four Zambian companies are participating in the Lubumbashi Trade Mission in Congo DR, from September 28th to 30th October 2009. Exhibitors include those in the gemstone, leather products, textile, handcrafts, and agrosectors. Incentives to the exhibitors include free transportation of exhibit samples to the exhibition centre and free exhibition booths. ZDA invited Zambian companies to the mission to give them an opportunity to showcase their products to the DRC market and to establish business links with prospective buyers. “Quality

Policy Essential to Make Zambia Competitive”

Ministry of Commerce, Trade and Industry Permanent Secretary, Dr. Buleti Nsemukila has said there is need for Zambia to put in place a national quality policy to make the country’s products more competitive on the international market. Dr. Nsemukila said lack of a policy hindered the country from becoming competitive and its products failing to penetrate the regional market and beyond. He said he would ensure that a draft policy was put place in order to set standards for the country’s manufacturing sector before the end of the year. He said that it was difficult for Zambian products to compete favourably on the global market due lack of a policy that addressed the quality of Zambian products. He said investment and export promotion was a challenge without quality standards for the country. “Once we have a policy in place, we will be able to produce

products, which are competitive on the international market,” said the PS.

I S SUE 8

PS Calls For Improved Infrastructure (From P1) iful development. “Let us do the basics first to enable you (ZDA) meet your investment and export promotion targets by investing in infrastructure,” he said. “Let us build quality infrastructure to improve on the standards of our products and compete favourably in the region.” He said with the coming of the COMESA customs union, Zambia would be swarm over if no proactive measures were taken to improve on infrastructure and product qualities. He urged the ZDA to devise mechanisms that would attract investment in the area of infrastructure as all sectors depended on it to attract investment that would spur growth in the economy. Dr. Nsemukila said other investment promotion agencies had specific roles, but the mandate of ZDA was different as it embraced all sectors of the economy, which made it a national development agency and critical player in the realisation of Zambia’s development targets. “You have the mandate to attract investment in the whole economy, therefore push your frontiers to meet the market demands,” he urged ZDA. “ZESCO has no mandate of attracting investment to improve its infrastructure, neither does RDA, they all depend on you, thus be proactive to live by your national mandate.” He said ZDA should not confine itself to the Ministry of Commerce, Trade and Industry, as its mandate was too broad. The PS has since urged ZDA to package specific information for specific markets in portable disks that would be easy to browse for key information on investment opportunities in Zambia. In response ZDA Director General, Andrew Chipwende said ZDA needed coordinated support from all stakeholders for the country to realise meaningful benefits from the Agency’s extensive functions. He said comprehensive studies of investment opportunities in all sectors were needed to enable ZDA identify investors who would develop them. Mr. Chipwende said such studies would provide a clear picture of those projects and the kind of infrastructure available in those areas such as telecommunications, water system, road networks, among others. He said such details were important in every investment promotion mission as they enabled investors predict the returns on their investment in line with available support systems in the areas they were pumping their money.

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State Eyes Total Shares Government is negotiating with Total International to buy the company's 50 per cent shares in Indeni Petroleum Refinery, Ministry of Energy and Water Development Permanent Secretary, Peter Mumba has said. And the Government has said Total's decision to sell its stake in Indeni will not affect the supply of fuel because the Government took over the supply of crude oil from Total more than two years ago. Mr. Mumba said in an interview that the Government had over the past few months engaged in talks with Total to buy the shares although the company had indicated that it had identified a willing buyer of its shares.” As Government, we have been talking with Total over our intentions to completely take over the refinery as the sole owners and talks have now reached an advanced stage," he said. The Government and Total International are the joint owners of Indeni with 50 per cent shares each. Mr. Mumba said the discussions between the Government and Total on the future of Indeni Petroleum Refinery in Ndola started last year. He said the Government was committed to buying the Total shares and had temporarily suspended plans to engage a third strategic partner to join Total and the Government. allAfrica.com.

US$461 Actual Investment Recorded by ZDA in 2007 Zambia Development Agency has recorded more than US$461 million actual investment from the 2007 investment pledges. The actual investment is out of the US$1.7 billion investment pledges that were proposed by different investors in various sectors of the economy. According to the Agency’s monitoring and evaluation data, US$461, 699, 106 was the actual investment by the end of 2007 from the pledges investors had made during the year. The actual investment translates into more than eight thousand job opportunities across the country. Zambia Development Agency conducts annual monitoring and evaluation of investment pledges made in a particular time frame to ascertain how much of those pledges translate into actual investment and their impact on the domestic economy in terms of jobs and wealth creation.

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Banks Counseled on MSE Products Commerce, Trade and Industry Minister, Felix Mutati has urged commercial banks to simplify their financial products, particularly legal technicalities for medium and small enterprises (SMEs) to facilitate easy access to such facilities. Mr. Mutati said SMEs were in a hurry to contribute to the development of the economy hence the need for banks to make their products simple and flexible when processing loans for such a vibrant sector. Speaking when Standard Chartered Bank Zambia launched October as the Africa SME Month, Mr. Mutati said simplification, urgency and flexibility were three important pillars which should always be considered by banks when processing loans for SMEs. He said prices of goods often keep on changing while the demand was also shifting, hence making it difficult for entrepreneurs to plan and do their businesses when loan processing takes time. Mr. Mutati said government would continue to improve the macroeconomic environment so that it acted as a motivation to grow the economy and was hopeful that Zambia would end this year with a single digit inflation rate. And Mr. Mutati said government would continue to reduce the cost of doing business in the country by facilitating reforms in the Information and Communication Technology (ICT) and energy and labour sectors. Meanwhile, Standard Chartered Bank Zambia Managing Director, Mizinga Melu said the bank’s success in its SME Africa preposition had been achieved by rigorously pursuing its strategy of launching new, innovative and tailormade products. Standard Chartered Bank has SME banking units in Botswana, Ghana, Kenya, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe.

Investment Policy Formulation on Track… An investment expert who has been engaged by the Ministry of Commerce, Trade and Industry to provide technical assistance on the formulation of Zambia’s Investment Policy is in the country to consult stakeholders and obtain information relevant to the formation of the policy. Mr. David Lovegrove, the consultant, is meeting stakeholders from key ministries, institutions and associations on investment promotion including Zambia Development Agency, Zambia Revenue Authority and the business community, as well as the Chambers of Mines and Minerals, among others.

ISSUE 6

Regional Spotlight

China Tops SA Export Stakes Despite the global recession, South Africa’s trade with Asia remains robust and China has become the country’s top export destination after replacing the United States, which moves into second place. The position reinforces the Asian country’s push to build trade links with Africa. According to SA’s Department of Trade and Industry (DTI) China’s trade with SA had an annual growth of 53.9 percent, while the US exports decreased by 42.6 percent. China took 11.9 percent of the total market, the US 8.3 percent and Japan 7.5 percent. The DTI customs data shows that in 2008, Japan, the United States, and Germany were SA’s top export markets, while Germany, China and the US were the top import markets. The data indicated that South Africa’s exports to China stood at R27.6 billion by June 2009, against R35.8 billion for the whole year in 2008. southafrica.info/news/business

FDI in Zimbabwe Rises even amidst Crisis Despite the worsening economic conditions in Zimbabwe, a report by the United Nations Conference on Trade and Development (UNCTAD) has highlighted a marked improvement in foreign direct investment (FDI) in the country from US$40 million in 2006 to US$69 million last year. UNCTAD’s statistics came as the Zimbabwe Investment Authority (ZIA) indicated an upsurge in enquiries on the back of a political settlement reached between ZANU-PF and the MDC. “We have seen a serious interest on Zimbabwe in the past few weeks,” said ZIA Chief Executive Richard Mubaiwa. “A recent conference on investment in Zimbabwe that was held in South Africa at the Development Bank of Southern Africa headquarters showed that there is interest on Zimbabwe after the political settlement.”zimreview.wordpress.com

Eskom To Raise Tariffs By 45% South Africa’s power utility Eskom has defended its application to raise tariffs and said it was in favour of increases of 45% per year over three years. Eskom Chief Executive Officer Jacob Maroga said the utility’s current charges were too low to allow for a return in earnings; it is proposed to hike tariffs by either 45% per year over three years or 146% in a single increase. Business Times.

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Ecobank Named African Bank of the year

SADC IPAs Prepare for 2010 FIFA World Cup

Ecobank has been named African Bank of the year at the 2009 African Bankers Awards recently held in Istanbul. According to an Ecobank press release on its website, the Award Ceremony took place alongside this year’s World Bank/ IMF Annual meetings in Turkey, and was attended by African bankers, finance ministers, central bank governors and officials of multilateral development institutions among other guests.

ZDA was among SADC investment promotion agencies (IPAs) that attended an IPAs CEO’s Forum in Botswana to plan for 2010 investment promotion strategies in readiness for the FIFA 2010 World Cup which will be held in South Africa.

The award was received by the Bank’s Group Executive, Arnold Ekpe, who said he was pleased to receive the prize on behalf of the Group’s 11, 000 staff in 28 countries across the continent. And Mr. Ekpe commended the Ecobank’s alliance partner, Nedbank for its impressive show at the event and other banks that distinguished themselves with the provision of banking services to African people. “Together, we can all make a positive impact on the economic growth of this continent,” he said.

Kwacha to Lead African Currencies Appreciating in 2010 ABSA Capital Bank has predicted that major African currencies, except for Angola’s Kwanza and Ghana’s Cedi, will strengthen against the US Dollar in 2010 as a rebound in the global economy boosts prices of the region’s commodity exports. The Zambia Kwacha will lead the gains, appreciating by 14 percent to 4,095 per Dollar by end of 2010 on an advance in copper, which accounts for about 70 percent of the country’s exports, Amalgamated Banks of South Africa (ABSA) forecasted. The Kwacha had strengthened by 3.2 percent in 2009 to 4,640 per dollar during the period under review after declining 19 percent in 2008. Tanzania’s shilling may gain 8.1 percent as gold climbs.” The story of Africa is still the story of commodities,” Ridle Markus, a Sub-Saharan Africa strategist at ABSA, owned by Barclays Plc said. “African currencies might show a surprise recovery next year if the global economy recovers and the commodity cycle continues to show upside.” African currencies from Nigeria’s Naira to Angola’s Kwanza slumped last year as the global recession eroded demand for commodities. Economic growth in Africa is expected to rebound to 4 percent in 2010 from 1.7 percent this year, the International Monetary Fund has revealed.

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The main objective of the Forum was to prepare an investment promotion strategy and road map for 2010 that will provide a framework to guide, inform and coordinate the investment promotion activities of the region. The Forum is expected to coordinate investment promotion activities at member state level, aimed at the Confederation of African Football (CAF) and FIFA activities in 2010, indicated the Forum’s draft strategy paper. The coordination of the activities will be done within the context of existing SADC regional programmes in order ensure all member states operate within a level platform and also to eliminate any imbalances that may arise due to different resources available to each member state. “IPAs play an important role in ensuring that investment takes place in the region, and contribute to the attainment of deeper regional economic integration and poverty alleviation,” the paper indicated. The meeting agreed that the draft 2010 strategy should form the basis for the Forum’s terms of reference. The Forum urged IPAs to clearly articulate their objectives in the activities where their involvement was requirement, such as in the production of publicity materials, participation in international conferences and the SADC village. The Forum also recommended that SADC Embassies abroad should be involved in implementing the strategy as they could play a critical role. The theme for IPAs’ campaign is “1 Team – 15 Nations for Investment.”

SA Key Emerging Market South Africa has been identified as one of the key emerging markets for global investors, moving up to fourth position, according to a new research published by the UK Trade & Investment. Addressing the Economist Intelligence Unit’s Emerging Markets Forum, the UK Secretary of State Lord Peter Mandelson revealed the findings of the report which examined global business attitudes to emerging markets in the light of the global downturn.

ISSUE 6

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RB Supports Africa South America Trade

MFEZs, Industrial Parks to Attract Huge Investment

Nansanga Farming Block Gets ‘Life’ for Completion

President Rupiah Banda has said improved trade and investment between Africa and South America is important for the two regions’ economic advancement. Mr. Banda said in view of improved trade and investment, Zambia will support the proposal by South American countries to establish a Bank of the South.

Chambishi and Lumwana Multi-Facility Economic Zones (MFEZs) will facilitate investment inflows of more than US$1 billion and US$1.2 billion respectively in the individual economic zones, ZDA Senior MFEZ Officer, Mr. Shadreck Saili has said.

Nansanga Farming Block has been allocated K26 billion in the 2010 national budget to complete the remaining works in the Farming Block to boost investment into the area. The allocation is in addition to the budgeted resources of K42.4 billion to the Farming Block in 2009 for electricity lines and water development, which have been realised.

He has called on member countries from the Africa -South America (ASA) regions to support the idea and work towards overcoming all obstacles that may hinder its formation. Speaking at the 2nd Africa South America heads of State and Governments summit in Venezuela, Mr. Banda said Zambia supported the proposal for the establishment of a bank to be sponsored by Venezuela, Brazil, Argentina, Uruguay, Paraguay, Bolivia and Ecuador. He said Zambia believed that the Bank of the South will be an important financial institution that would establish a new international financial architecture and enable member states to access credit facilities. The President said the establishment of the bank would accord member states an opportunity to achieve mutual economic development and enhance self-determination as well as a leverage of the people and nations of the South. “It is worth noting that Zambia is aware that the Bank of the South will undeniably contribute to the creation of a conducive environment that will facilitate and improve trade relations and enhance investment portfolios between the two continents.” Mr. Banda said the principles of bi-regional development and the objectives of South-South co-operation on which the roots of the Africa South America relations are anchored point to the desire to foster political ties, economic cooperation and social collaboration among the countries of Africa and South America. Zanis

New ToH Project Progressing Well…... The Triangle of Hope (ToH) coordinating team has completed its review meetings with implementing ministries on the first wave of the project in readiness for commencement of the project’s new three year lease by the Japanese International Development Agency (JICA). The main objective of project is to assist in the creation of a favourable environment where the private sector creates more jobs and generates greater wealth.

Eight companies out of the expected sixty to be established in the Chambishi MFEZ have been licenced to operate in the zone, with the anchor company Chambishi Copper Smelter being in full operation. Mr. Saili said so far over US$100 million besides the US$300 million invested in Chambishi Copper Smelter had been spent on infrastructure development such as the electricity substation, roads and water systems. “Total proposed investment by the eight licenced MFEZ enterprises in the Chambishi zone was more than US$414 million.” The enterprises in this zone are mainly involved in the processing of copper into various products, manufacture of building material, sulfuric acid and mechanical components. Meanwhile, Mr. Saili said over 90 enterprises undertaking various priority sector activities were expected to invest in the Lumwana MFEZ and create about 13, 000 job opportunities by 2020. He said the US$1.2 billion proposed investment in the zone would support various industrial sectors including agricultural processing and fisheries development and processing. “Apart from these two major MFEZ projects, there are two industrial parks; the Sub-Saharan Gemstone and Roma, which will create about 6, 800 employment opportunities from the proposed US$56 million investment,” Mr. Saili indicated. The Sub-Saharan Gemstone Industrial Park is located in Ndola, accommodating more than 20 companies. It is expected to create 4, 000 new jobs opportunities. More than US$ 8 million has already been invested in the rehabilitation of infrastructure in the park. The Roma Park on the other hand is located in Lusaka beyond Roma Township.

MSE Business Clinics Intensified ZDA has started conducting business clinics as part of the second phase of its training activities for micro and small enterprises (MSEs) on market and financial access in various parts of the country. The business clinic programme has been rolled out in Mansa and Kasama and it will later be conducted in Chipata

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Minister of Finance and National Planning, Dr. Situmbeko Musokotwane also said an additional K3 billion has been allocated for the construction of dams in the area. During the 2010 budget presentation, Dr. Musokotwane said government had already begun to market the Farming Block aggressively to investors. “From the promotion efforts that have been undertaken this year, substantial interest has already been expressed in the Block,” he said. The Minister said similar infrastructure development works will commence in Luena Farming Block in Kawambwa next year, and K3.4 billion has since been allocated for preliminary work in 2010. “This Farming Block is an area with vast potential for development of the sugar industry,” Dr. Musokotwane indicated. The agriculture sector provides a lot of economic opportunities for Zambia that need to be enhanced by improved infrastructure development such as road networks, electricity and water systems. With improved infrastructure in the sector, the Zambia Development Agency will find it easier to attract investment into the sector. As the 2009 World Investment Report indicates, countries with well developed agricultural infrastructure relatively recorded more investment than those that were recorded in other sectors during the economic crisis. Thus, improving infrastructure in the agriculture sector will put Zambia in a better economic position in future.

Zamtel Staffs to be Trained….. ZDA has designed a training programme for Zamtel employees to prepare them for the partial privatisation of the company. The programme is meant to prepare them psychologically for possible repatriation and on how best they can invest their separation benefits since privatisation is characterised by reductions in work force, MSE Training Manager, Gabriel Musentekwa has said. The training on entrepreneurship skills and business management will be done through the company's existing training schools.

Zambia Development Agency SELECTED ECONOMIC INDICATOR

P.O Box 30819 Nasser Road

1. Inflation rate (%) 2. Average 91 Day Treasury bills rate (%) 3. GRZ Bond Yield Rate: (24-month) (%) 4. Average Lending Rate (%) 5. Exchange Rates: (ZMK/foreign currency)

Lusaka, Zambia Tel: 260-211-220177

US$ EURO BPS RSA 6. Agriculture Commodity Prices:

Fax: 260-211-225270 E-mail: [email protected] Website: www.zda.org.zm

SEPT 2008

SEPT 2009

14.2 12.3 14.9 25.7

13.0 15.6 18.4 29.6

3,500 5,100 6,600 450

4,500 6,600 7,400 600

-

330 -

664

653

33,414,000

64,936,000

6,148,000

5,612,000

2,484,000 (2,454,000) 29,800

857, 000 (857,000) (1,748,000)

(US$/MT)

Maize Wheat Soya beans 7. Capital Market Activity

Equity trading: Number of Trades Volume of Trade Turnover (US$)

Foreign Portfolio Investment: (US$) Inflows (Buying) (US$) Outflows (Selling) (US$) Net Position (US$)

Promoting Economic Growth and Development

Source: BOZ, CSO,LuSE,Zamace

Zambia Development Agency Youth to Receive K250m Empowerment Funds A 23 year-old- youth, who has been in the business of stone crushing, has qualified to receive K250 million from the Citizens Economic Empowerment Commission (CEEC) to enable him acquire industrial equipment for the expansion of his business. Mathews Chanda, who qualified for the funding early last month, has since acquired a hydraulic block making machine and a truck for hire to diversify his business from stone crushing under the name Chiflomu Investment Company. The company has created employment for 15 people who operate the block maker and stone crusher and help run the enterprise. Chanda has commended the ZDA, especially the MSE Division for the role it played in helping Chiflomu Investment write a business proposal and plan on how to invest the money. He said he

heard about aboutthe ZDA ZDAfrom fromFuture Future Search and later attended the ZDA training on business management, which changed his perceptionabout aboutbusiness. business. “I athis perception tended training by the ZDA on enterprise “I attended training the ZDA on enterdevelopment and by business manageprise early development business ment this year,and which inspiredmanme agement early year, which inspired to apply for thethis CEEC funds after learnme how to apply for the CEEC funds after ing to write a bankable business learning how to write a workable busiproposal,” Chanda said. ness proposal,” Chanda said. Chanda whose parents died in 1991 and 2001 respectively, urged other youths to take advantage of developmental programmes that were being initiated by government to empower themselves and contribute to the economy. He said as the future of Zambia, youths should aim to be business owners by utilising available resources and empowerment programmes put in place to enable them take part in the economic development of Zambia. The MSE Division of the ZDA has the mandate of providing services that stimulates the development of SMEs through training and provision of market information.

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Tourism Prioritised in 2010 Government has continued attaching great importance to the tourism sector in its economic development strategies, and has since increased the budgetary allocation to the sector from K50 billion to K95 billion in next year’s budget. During the 2010 budget presentation, Minister of Finance and National Planning, Dr. Situmbeko Musokotwane said government’s focus in tourism was on the construction of vital infrastructure that will boost investment inflow in the sector.

“I have allocated K95 billion towards development of the Northern Tourism Circuit, which was allocated K50.7 billion towards infrastructure projects in 2009,” Dr. Musokotwane said of that K20 billion will be used for on-going construction of the road from Mbala to Kasaba Bay, while K70 billion will be for the electrification of the area and K5 billion for the rehabilitation of the Kasaba Bay a Airport.