Zda Spotlight : September 2009

Zda Spotlight Issue 7

Zambia Development Agency

September 30 2009

Inside this issue:

Cost of Doing Business to Reduce

ZDA Launches WIR 2009

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BBZ Predicts Stronger Kwacha

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RB Attracts US Investors to Zambia

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Rwanda Tops All Nations in Business Reforms

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ZDA Attends Mozambique Fair

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UNCTAD Trains 11 Local Empretecos

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MSEs Counseled on MFEZ

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Points of Interest • “The FDI inflow into the agriculture sector is expected to improve once infrastructure is provided to ease access to identified farm blocks like the Nansanga Farming Block.” • “Zambia has an advantage of recording significant growth during the period of the global recession although the country needs to increase its economic growth to about seven to eight percent to impact significantly on people’s welfare.”

• “Small, and landlocked nations such as Rwanda have no choice; they do not have the big markets, so they have to reform.”

Quote “The value of a business is the cash it is going to produce in future,” Warren Buffet.

development reform programme to be implemented, it required legislative amendments to various economic sector legislation such as agriculture, tourism, commerce, finance, employment and labour and energy.

The Lower Zambezi National Park is relatively undeveloped, but its beauty lies in its absolute wilderness state. Above one of the activities to enjoy in the Park is game walking. (story page 3).

communication costs which account for the high cost of doing business were being streamlined.

President Rupiah Banda has said government remains committed to reducing the cost of doing business in Zambia in order to provide a conducive investment climate.

Mr. Banda said the implementation of the private sector development reform programme was meant to effect necessary reforms in priority

Speaking at the opening of the Fourth Session of the Tenth National Assembly, Mr. Banda said factors such as cumbersome licencing procedures and regulatory framework, poor infrastructure and high transport and

areas such as labour laws, business licencing reform and micro, small and medium

enterprises development.

The President said in order to enhance the implementation of the business licencing process, government would this year present several bills for amendment such as the mines and minerals development (amendment) bill; the Zambia Development Agency (amendment) bill; the gold trade (repeal) bill; the Independent Broadcasting Authority bill (amendment) and the control of goods (repeal) bill. And Mr. Banda said the construction of multi-facility economic zones (MFEZs) for both export and domestic oriented industries were (Continued on Page 2)

He said for the private sector

ZDA Announces Sale of Zamtel ZDA is inviting prospective bidders to submit applications for pre-qualification to participate in the proposed partial privatisation of Zambia Telecommunication Company Limited (Zamtel).

tion of state owned entities. And the ZDA has appointed RP Capital Advisors Limited as its exclusive financial advisor in relation to the Zamtel transaction.

This is in accordance with the ZDA Act No 11, 2006, which mandates the Agency to implement the privatisa-

The partial privatisation of the state owned telecommunications operator is up to 75 percent of the equity of the company.

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The proposed terms of the transaction are that the Zambian government will sell up to a maximum of 75 percent equity interest and retain a minimum of 25 percent of that equity interest. However, government reserves the right to sell part or all of that remaining equity interest . (Continued on Page 2)

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ZDA Launches 2009 WIR ZDA has launched the 2009 World Investment Report (WIR), which shows that the global Foreign Direct Investment (FDI) inflows are expected to fall from US$ 1.7 trillion in 2008 to US$1.2 trillion this year, due to the worldwide economic and financial crisis.

Speaking during the launch of the report, ZDA Director of Investment Promotion and Privatisation, Mrs. Florence Mumba said although the crisis had drastically changed the FDI landscape, investments to developing economies increased to 43 percent in 2008 partly due to a concurrent decline in FDI flows to developed countries by 29 percent. The WIR indicated that FDI inflows to Africa reached a record high of US$88 billion in 2008, with the fastest increase of 63 percent being recorded in West Africa in 2007. The inflows into Ghana and Guinea were well above one billion dollars each. In Southern Africa, the increase in FDI was mainly due to the strong performance of the Angolan and South African economies. The Report further indicated that FDI inflows to the agriculture and extractive industries were relatively better than those that were recorded in other sectors. Investment inflows into Greenfield projects were badly hit in 2009 compared to 2008. Mrs. Mumba said the FDI flow to West Africa increased mainly due to improved infrastructure in that region, which made the region’s economies considered better FDI destinations. The Report showed that Zambia’s FDI performance continued to be strongly based on the mining industry. However the investment inflow into the agriculture sector was expected to improve once infrastructure was provided to ease access to identified farm blocks like the Nansanga Farming Block, Mrs. Mumba stated. She said the agriculture sector provided a lot of opportunities for Zambia that needed to be enhanced by improved infrastructure development such as road networks, electricity and water systems. The sector has vast potential, for instance, of the total FDI into Zambia in 2007, 11.7 percent was into the agriculture sector,” she said. “Particular attention should be paid to the promotion of linkages between TNCs and local farmers to create value chains and increase the presumed benefits in staple food production.”

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SABMiller Africa Acquires Maheu Business for US$19.25M SABMiller Africa has entered into an agreement with Trade Kings Limited to purchase its Maheu business for a total cash payment of about US$19.25 million after the Zambia Competition Commission (ZCC) approved the transaction.

According to a news release on the ZCC website, the transaction includes the purchase of the Maheu brand – Super Maheu No.1 – which is a non-alcoholic maize drink available in a variety of flavours. SABMiller Africa owns Zambian Breweries Plc (a subsidiary of Heinrich’s Syndicate Limited), which is the largest clear beer and soft drinks business in the Zambia. About 70 percent of National Breweries Plc is listed on the Lusaka Stock Exchange (LuSE) and the firm commands a substantial amount of the opaque beer market. SABMiller Africa intends to grow the Maheu business throughout Zambia and across a variety of African markets, which will result in both increased sales volumes and further employment opportunities. SABMiller Africa will continue to employ the existing Trade Kings staff engaged in the production of Maheu following the completion of the transaction with Trade Kings. A recent survey conducted by ZCC revealed that Trade Kings controlled about 98 percent of the Maheu market in the country while National Breweries enjoyed 2 percent of the same market prior to the acquisition of the of Maheu products by SABMiller Africa.

Cost of Doing Business To Reduce…………………. (From Page 1)

progressing well. “I wish to inform the house that the development of MFEZs is progressing well, especially the Chambishi MFEZ,” he said. “Ten enterprises have been housed in the zone creating more new jobs. The number of jobs will increase as the enterprises expand.” Mr. Banda said by 2011 the Chambishi MFEZ was expected to accommodate up to sixty zone enterprises with a projected output volume exceeding US$1.5 billion, of which more than US$600 million will be exported.He has since encouraged Zambians to take advantage of the opportunities to be created under the MFEZ initiative.

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BBZ Forecast Stronger Kwacha Barclays Bank Zambia (BBZ) has predicted a boost in Zambia’s foreign exchange reserves due to the allocation of US$600million in Special Drawing Rights for Zambia from the International Monetary Fund (IMF), a development which will spill over into a stronger local currency. According to BBZ newsletter, the funds will also help soften inflation in the coming months as evident by the already positive move by the Kwacha against the dollar on a year-to-date basis. The Bank has indicated that the Kwacha has appreciated by about 4 per cent against the United States dollar, and traded within tight ranges for some time now, largely subduing corporate activity. The Bank further said players were cautious as they watched for the next dollar and Kwacha direction after notable volatility earlier in the weeks.

ZDA Announces Sale of Zamtel (From Page 1)

However, government reserves the right to sell part or all of that remaining equity interest in the company through an initial public offering on the Lusaka Stock Exchange. To pre-qualify, prospective bidders must have a minimum of five years of licenced operation in the telecommunications industry; have more than three million active subscribers on fixed, mobile and/ or fixedwireless networks; and a minimum of US$250 million shareholders’ equity for private entities or; a minimum market capitalisation of US$500 million for public listed entities. Pre-qualification documents will be made available to prospective bidders on receipt by the ZDA of a signed NonDisclosure Agreement (NDA), which is available on request at the ZDA and its Advisors. The bidders are required to pay a non-refundable administration fee of US$20 000 prior to their submission of the pre-qualification application form. The closing date for the pre-qualification applications is October 16, 2009. Qualified bidders will be announced on October 21 and will be provided with detailed guide lines for the bidding process. Applications by consortia that include Zambian citizens or entities are encouraged, subject to pre-qualification criteria and additional conditions. However, entities owning or being associated with, either directly or indirectly, an existing mobile operator in Zambia will be excluded from the pre-qualification.

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RB Attracts US Investors To Zambia…………………...

World Financiers Confident In Zambia’s Economy

President Rupiah Banda has urged the American business community to consider investing in Zambia and help transform the country’s abundant endowment into real development. Mr. Banda said Zambia

The International Monetary Fund (IMF) and the World Bank have projected higher economic growth for Zambia in 2009 following recent doubling-up of the copper prices and improvements recorded in other sectors of the economy.

was endowed with abundant natural resources, politically stable and had attractive investment policies through the ZDA that could make such investment flourish. Speaking when he addressed several business executives at the sidelines of the UN Climate Change Summit in New York, Mr. Banda said these incentives included tax exemption and concessions to companies which invested in the country’s priority areas. He said government had reduced the cost of doing business significantly, and added that investors had legal protection especially through the ZDA Act of 2006, which granted safety to any investment in all circumstances. Mr. Banda further said Zambia was a second largest producer of copper in the world, adding that it still had huge copper deposits dotted around the country. Other minerals in Zambia are precious stones such as emerald, silver and gold. He said in terms of tourism, 33 per cent of land in Zambia was dedicated to game parks and other game management areas, noting that the hospitality industry also still has huge investment potential. And African Rainbow Minerals Executive Chairman, Patrice Motsepe, who was among business executives who testified that Zambia’s investment climate was very attractive. Mr. Motsepe, who is a South African said his company was finalising plans to invest between US$300 million and US$500 million in the country. Zanis.

Inflation Drops by more than 1% The annual inflation rate for the month of September has registered a significant decline to 13 per cent by 1.3 percentage points against the August 2009 figure of 14.3 per cent. According to a Central Statistical Office release, the reduction in the inflation rate was mainly due to the decrease in some food prices, new motor vehicle prices and air fares. The cost of vehicles and air fares declined as a result of the appreciation of the kwacha against the US dollar between August and September 2009. The annual food inflation rate was recorded at 13.9 per cent this month, a decline from 14.6 per cent last month.

In a statement at the conclusion of a mission visit to Zambia, the IMF said the improved outlook of the Zambian economy was already being reflected in the appreciation of the Kwacha since May, a development which may see a higher gross domestic product growth this year than previously estimated. Mission Chief for Zambia George Tsibouris said Zambia’s Balance of Payments was expected to be reinforced by the appreciation of the Kwacha and the bumper maize harvest of 1.9 million tonnes, which will gradually help to bring down inflation. Zambia and the IMF agreed on a framework for the 2010 budget which continues to focus on increased spending on priority capital projects and social sectors, while maintaining consistency with macroeconomic stability. A preliminary discussion was held by government and the IMF on the recent allocation of by the IMF to Zambia of Special Drawing Rights from the US$600 million, which greatly expands Zambia’s international reserves and provides a stronger foundation for exchange rate stability. This year’s shortfall in revenue forced government to access financing from the Bank of Zambia, which is supported by the increased access to IMF resources in order to meet the country’s capital spending targets. And World Bank Country Manager for Zambia, Dr. Kapil Kapoor has said Zambia has not been affected much by the current global economic recession and will this year record substantial economic growth compared to other countries in Africa. Dr. Kapoor said Zambia had an advantage of recording significant growth during the period of the global recession although the country needed to increase its economic growth to about seven to eight percent to impact significantly on people’s welfare. He said Zambia should revisit some of its major sectors and address challenges that were hampering private sector investment and significant diversification of the economy. Dr. Kapoor said Zambia needed to change its investment policy to achieve substantial economic growth.

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Gem In The Lower Zambezi Tourism has experienced continued growth globally and deeper diversification and has become the fastest growing sector in many countries. Today it is closely linked to development and many more destinations are being established for tourists to visit. One of the spectacular places to visit if you are in the Lower Zambezi is the Royal Zambezi Lodge. The lodge gets its name from the mighty Zambezi river, where it sits at one of its broadest points. The lodge is located in a Game Management Area bordering the Lower Zambezi National Park. With 3 kilometres of river frontage one can access the National Park by boat or canoe and enjoy nature at its best. The adrenaline rush is part of the package as the canoe floats on the river it crosses paths with nature. Now this could be a crocodile, a hippo or even a lion can be sighted on the reed banks of the river that flows between two steeped mountains. It is but the best way to view game and the vast bird population in this unique ecosystem. Believe it or not the animals will get out of your way if you respect their space; of course under the watchful eye of a trained guide you can be sure to enjoy this exhilarating experience. The other fascinating activities include fly fishing, game viewing and game walking right in the game park. When the sun is setting, which is a marvel to the eye, the natural place to meet is the great sausage tree turned bar with its platform set in the river. This is where the guests recount the days activities only disturbed by the sound of a drum beat announcing dinner. Dinner is a treat here with excellent attention, gourmet food not to mention the world class thatched tents, the Royal Zambezi Lodge is a gem that will continue to shine. 2009 Vs 2008 First Half FDI ZDA has recorded more than U$755.3 million foreign direct investment (FDI) inflow during the first half of this year, which translates into the creation of over 8000 job opportunities once the investment is implemented. This inflow presents a sharp decline of about U$1 billion compared to the same period last year. During the first half of 2008, ZDA recorded more than U$1.9 billion FDI compared to U$755.3 million that was realised during the same period this year. The decline is due to a number of factors, among them the economic crisis that constrained the growth of most world economies mainly in the first quarter of 2009.

ISSUE 7

Regional Spotlight

Rwanda Tops All Nations in Business Reforms

African Markets Sensible for India…………...

A latest World Bank Report has shown that Rwanda has made more business-friendly changes to its regulations in the past year than any other government.

Although India is an economic powerhouse in its own right, so much of its growth in recent years has been eclipsed by rival China’s shadow. Talk about India’s investments in Africa often steers towards “how it seems to be playing catch up with China.” Yet, India has firmly rooted historical ties with Africa dating back to when merchants traipsed goods across continents to reach virgin markets. In contemporary times its trade and investment can be traced back to the 1960s, particularly in East Africa where there are numerous expatriate Indian communities.

The country vaulted to the 67th from the 143rd rank in the Bank’s 2010 “Doing Business Report,” ahead of India, Italy and Turkey. The index ranks 183 participants by their rules for setting up, running and closing a business. Singapore topped the list, followed by New Zealand, Hong Kong, the U.S. and the U.K. “The reforms in Rwanda did not happen overnight — Rwanda started reforming in 2001,” indicates the Report. “Small, landlocked nations such as Rwanda “have no choice; they do not have the big markets, so they have to reform.” The Report, which helps private investors decide where to direct funds, showed some emerging economies losing ground, with China sinking by three slots to 89th from 86th place and Brazil slipping to 129th from 127th. It says Rwanda had improved regulations that eased access to credit, simplified business formation, strengthened minority-shareholder protections and sped up trade and property registration. The Report rated countries on rules that affect starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. It focuses on small- to medium-size companies. rwandainvest.com

Namibia, Botswana Sign to Construct Dry Port Namibia and Botswana have signed a Lease Agreement for the construction of a Botswana Dry Port in Walvis Bay to create a direct link for Botswana to the sea. Botswana has been using South African ports for the transportation of exports, which was costly in terms of time and finances.

The 36 000m land adjacent to the south end of Walvis Bay's harbour and railway station will allow Botswana to have a direct link via the Trans-Kalahari corridor to a harbour. At its new dry port, Botswana can now collect, store and distribute cargo. According to Uirab, about 5 000 tonnes of cargo were imported and exported for Botswana, via Walvis Bay's harbour last year. Most of Botswana's import and export trade is with Europe.

“Africa accounted for virtually all Indian outward investment in the 1960s. In the 1970s, Indian firms also began to invest in the rest of Asia, and now Africa and Asia have an almost equal one-third share in foreign direct investment (FDI) from India,” says World Bank Consultant Premila Nazareth. Indian FDI flows into Africa expanded geographically between 2000 and 2007 and increased by 837%. Initially limited to Kenya, Nigeria and Uganda in the seventies, Indian companies are now doing business in over 20 countries in Africa. Southern Africa in comparison to the North, East and West Africa, had attracted a minimal proportion of total Indian direct investment (1.4%) to Africa by 2007. However, major Indian corporations now have a presence in industries such as mining (Verdanta, Arcelor Mittal), steel (Tata Steel) and automotive (Tata, Mahindra). South Africa is increasingly becoming the gateway to the region as seen in Mahindra SA’s expanded operations in Zimbabwe, Botswana, Namibia, Swaziland and Zambia. Its Managing Director, Ashok Thakur, advocates the sustainability of the investments even during a downturn. “Overseas ventures are enabling Indian companies to share technology, skills and market access. In the end it benefits customers and stakeholders,” he says. In August India signed five accords that promise to bring investment into Namibia’s mining sector

in a bid to secure a source of Uranium. Trade Invest Africa

SA Mining Giant to Invest R8bn African Rainbow Minerals, a South African based mining group has pledged to invest more than R8 billion in the exploration of platinum, manganese, iron ore, nickel chrome and coal in Zimbabwe. According to the Africa-rainballminerals.com, the announcement by the mining group comes after it announced its plans to open a new mine at Konkola North in Zambia by 2011. Zimbabwe holds the second largest platinum deposits that have largely remained untapped.

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Race for Strategic Minerals Africa’s mineral reserves are drawing interest from Asian and Western states that are determined to secure supplies and counter wild price fluctuations, the Africa-AsiaConfidential has noted. The publication has indicated that strategic minerals are back in fashion – along with oil and gas – and are at the centre of geopolitical rivalries between industrial economies in Asia and the West.

This entails that new technologies have failed to free modern economies from their dependence on base metals and rare minerals: for instance fibre optics are replacing copper cables, but demand for the associated cobalt for super-alloys used in jet engines and gas turbines is growing fast. Consequently, competition is increasing over price and the securing of supplies between Asia’s super economies – China, India and Japan – and with the Western economies. Demand for these minerals is rising again after a sharp fall at the start of the global slowdown, and Africa offers some of the richest pickings for the commercial rivals.

Burundi Receives COMESA AF COMESA has disbursed a grant worth Euro 4.4 million to Burundi meant to assist the country integrate into COMESA and the East Africa Community (EAC).

According to the COMESA newsletter, the grant is under the COMESA Adjustment Facility (AF). The cheque for the Fund was presented to the Burundian Minister of Finance, Mrs. Clotilde Nizigama, at a ceremony held in Bujumbura by COMESA Secretary General Sindiso Ngwenya. The Adjustment Facility Fund is a COMESA initiative meant to support member states to integrate into the 2000 Free Trade Area Integration Scheme.

US$17mn Mozambican Gold Refinery near Completion A US$17 million industrial unit for the refinery of gold is to be installed in the central Mozambican Province of Manica before the end of this year; reports the Beira Daily

The project is an undertaking by the South African "Tsoza Refinery" company, which is planning to establish posts to purchase unprocessed gold in various parts of the country. The largest part of the physical structure of the factory has already been completed, and it will be able to process about 40 kilos of gold every three to four hours in the initial stage.

ISSUE 7

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ZDA Attends Mozambique Fair

Nansanga Farming Block

MSEs Given Business Skills

The Zambian stand at this year’s Mozambique International Trade Fair, known as Feira Internacional de Maputo (FACIM) 2009, attracted many visitors with some companies placing orders of Zambian products worth more than US$1.3 million.

Minister of Commerce, Trade and Industry Felix Mutati, has said government is determined to attract major foreign investors to the new Nansanga Farming Block in order to develop the area into a modern preserve of food and wealth creation through agriculture and supporting industries.

ZDA has completed the first phase of its training activities for micro and small enterprises (MSEs) on market and financial access in various parts of the country, MSE Training Manager, Gabriel Musentekwa has said.

ZDA coordinated Zambia’s participation at the Fair and a total of 13 Zambian companies were showcased in the national stand. The FACIM 2009 took place from 31st August – 6th September in Maputo. These companies included Ndola Lime Ltd, Sylva Catering Ltd, Natural Herbal Health Clinic, Zamseed, Bata Shoe Company, Nisco Industries, California Beverages and Amanita. Others were Zamanita Cooking Oil, Amigo Crisps, African Joy, Green Basin Naturals, Ubuchi and House of Leather. The companies exhibited various products such as hydrated lime, dry vegetables, herbal medicines, agro-seeds for different crops, shoes, handbags and many others. The FACIM 2009 attracted national participants from more than 15 countries from the Southern Africa Development Community region and beyond and 19 other individual foreign companies.

UNCTAD Trains 11 Empretecos The United Nations Conference on Trade and Technology (UNCTAD) has trained eleven local empretecos (trainer of trainers) to spearhead the activities of the Entrepreneur and Technology (Empretec) programme in the country.

The Empretec programme which will be coordinated by the ZDA promotes the creation of sustainable support structures that help promising entrepreneurs build innovative and internationally competitive small and medium sized enterprises (SMEs). The eleven Empretecos were trained by international Empretecos from Zimbabwe at a ten day entrepreneurship training workshop that was held in September 2009 in Lusaka. The eleven were drawn from the ZDA, ILO, ZCSMBA, YWCA, Future Search, and TEVETA. The training was meant to help the Empretec Zambia programme to be established before it could start running on its own.

Seacom Cable Signals New Era The launch of the Seacom cable in July this year marked the beginning of a new era for internet and telecommunications in Africa, linking the continent to the rest of the world via undersea cable for the first time. Trade Invest Newsletter.

Mr. Mutati said government was looking forward to develop the Farming Block by opening it to foreign investors and has since started providing the necessary social and economic services such as electricity, road infrastructure and the construction of a dam to the Farming Block. He stated that government has invested heavily into the development of the Nansanga Farming Block and expressed confidence that foreign companies will be attracted to the area. The minister said while government is keen to open up other farming blocks in different parts of Zambia, it is the desire of the leadership that the Nansanga Farming Block should be the main focus this year. The Nansanga Farming Block has more than 155,000 hectares of land that has not been fully demarcated, which represents a small fraction of the whole block. The farms will be between 250 hectares to 10,000 hectares when they are fully demarcated.

BDS Voucher Programme Rolled-Out in 15 Districts ZDA and other implementing agents of the Business Development Service (BDS) Voucher Programme have rolled-out the programme in 14 districts out of the targeted 16 districts this year, and have issued out 226 vouchers worth more than K1.2 billion in the respective districts.

This brings the total number of covered districts under the programme to 18 out of 20 earmarked districts for the pilot project. The programme was recently extended to 16 new districts from the initial four. The programme was initially implemented in Livingstone, Petauke, Mumbwa and Kasama districts in 2007. It was early this year extended to Mongu, Mazabuka, Kabwe, Mufulira, Chililabombwe, Monze, Choma, Chipata, Kapiri Mposhi, Mkushi, Katete, Mansa, Luanshya, Kasempa, Mpika and Senanga. It was recently rolledout in Mansa, Kasempa and Mpika, leaving only two districts to be covered. These are Kapiri Mposhi and Mkushi. The programme whose aim is to strengthen micro, small and medium enterprises (MSMEs) across the country has covered more than 47 000 MSMEs in the districts it has been rolled-out.

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Mr. Musentekwa said the training programme which was held from 7 to 18 September 2009 was funded by the Private Sector Development Programme. He said the programme was aimed at facilitating MSEs’ access to markets and finances and training them on how to manage their enterprises profitably in a sustainable manner. The training was rollout in Mansa, Kasama, Chipata, Mongu, Ndola and ended with Lusaka. And Mr. Musentekwa has said the MSE Division of the ZDA will soon commence the Business Clinic, the second phase of the programme, which will be a one-onone counseling of MSEs on business management, help register the unregistered enterprises with Patents and Companies Registration Office (PACRO) and the ZDA itself. He said the Business Clinic programme will also involve counseling MSEs on product quality by the Zambia Bureau of Standards, and on how to run business accounts as well as guidelines on bidding for government tenders by the Public Procurement Authority.

SMEs Get Business Deal ZDA has brokered a business linkage between Zambia Breweries and micro and small scale carpenters in Ndola for the supply of pallets for making crates to the Zambian Breweries. The business linkage involves the supply of soft drinks to corner shops of MSEs in Ndola by the giant producer of a full range of Coca-Cola products and other soft drinks. The agreement was made after the MSE Division conducted some training workshops for SMEs on business management and efficiency in Ndola.

Seacom Launch Brings New Era The launch of the Seacom cable in July this year marked the beginning of a new era for internet and telecommunications in Africa, linking the continent to the rest of the world via undersea cable for the first time. The launch of the undersea cable and others promises to usher in a new dawn in Africa, in terms of providing top quality infrastructure and faster broadband speeds, and is hoped, cheaper internet access. Trade Invest.

Zambia Development Agency SELECTED ECONOMIC INDICATORS

P.O Box 30819 Nasser Road

Tel: 260-211-220177 Fax: 260-211-225270 E-mail: [email protected] Website: www.zda.org.zm

AUGUST 2009

13.5 12.3 14.1 24.7

14.3 16.4 18.5 29.5

3,500 5,200 6,400 450

4,900 6,900 8,100 610

223 -

250 380

749

670

Volume of Trade

48,017,000

315,429,000

Turnover (US$)

7,439,000

5,839,000

4,158,000 (2,880,000) 1,278,000

76,000 (2,520,000) (2,444,000)

1. Inflation rate (%) 2. Average Treasury bills rate (%) 3. GRZ Bond Yield Rate: (24-month) (%) 4. Average Lending Rate (%) 5. Exchange Rates: (ZMK/foreign currency) US$ EURO BPS RSA 6. Agriculture Commodity Prices: (US$/MT) Maize Wheat Soya beans 7. Capital Market Activity Equity trading: Number of Trades

Lusaka, Zambia

AUGUST 2008

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 Small Scale Farmers’ Trained ZDA has trained 21 small scale farmers from Kabwe and Livingstone on how to treat animal hides in line with the business linkage programme signed between TATA Zambia and ZDA early this year for the latter to broker the supply of hides by small scale farmer to TATA Tannery.

The training was meant to provide the small scale farmers with insights into the quality of hides the market demanded and to enable them meet those specifications for them to realise profit from the business linkage. Five of the small scale farmers who attended the training which was held in Kabwe were from Livingstone, while 16 were from within Kabwe. The training is in response to ZDA’s strategy of improving MSEs’ culture of doing business and linking them to transnational companies in order for them to have a market share in these companies’ chains of global markets and thus increase their profitability and productivity.

UNIDO Commences 2009 Investor Survey The United Nations Industrial Development Organisation (UNIDO) has started implementing a regional investment promotion programme in conjunction with the Africa Investment Promotion Agencies Network (AfrIPANet). The aim of the Investor Survey 2009 is to identify different types of investors, their performance, their varying impact on the host economy, their perceptions of investment climate parametres and their service expectations from local institutions. In Zambia, the programme is being executed through an implementation committee made up the Zambia Association of Manufactures, Zambia Chambers of Commerce an Industry, Zambia Business Forum, Private Sector Development Association and Zamia Chamber of Small and Medium Enterprises. Also on the committee ZDA, Central Statistics Office and COMESA. A Coordinator or Country Team Leader has been engaged by UNIDO to be based at the ZDA.

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MSEs Counseled on MFEZ The Private Sector Development Reform Programme (PSDRP) has said partnership among Small Medium Entrepreneurs (SMEs) is necessary to promote small scale businesses’ participation in MultiFacility Economic Zones (MFEZ).

PSDRP Coordinator, Mrs. Kayula Siame has said MSEs can greatly benefit from programmes aimed at making doing business easier in the country like MFEZs by forming joint ventures. Mrs. Kayula said such partnerships could help MSEs meet participation thresholds in such zoned areas. She said business communities could address the issue of the threshold attached to do business in the MFEZs by joining forces together to meet those benchmarks and benefit from the incentives provided in those economic zones. Mrs. Siame explained that businesses that are required to be set up in the economic zones were large industries, a situation which required SMEs to partner if they were to set up businesses in the multi-facility economic zones.