The ZDA was established in 2006 by an Act of Parliament and began operating in January 2007 after the amalgamation of five agencies that hitherto operated independently to foster economic growth and development by promoting trade and investment through an efficient, effective and coordinated private sector led economic development strategy. These agencies were the Zambia Investment Centre, Zambia Privatisation Agency, Export Board of Zambia, Small Enterprise Development Board and Zambia Export Processing Zones Authority.

1. Zambia
Zda Spotlight Development
Agency
Issue 1 March 23 2009
Inside this issue:
U$10M CELL PHONE PLANT OPENED
TATA buys Kabwe Tan- 2
stressed that the govern-
nery
ment would continue to
create a conducive and
Government To Support 2 competitive environment
Private Investors for the private sector to
thrive in various sectors of
the economy. “Keeping
SME’s On The Match 2
Zambia competitive begins
with keeping our economy
growing. And our economy
Survey Reveals Bright 3 can only grow when a lot
Economic Future more Zambians invest in
the domestic economy,” he
said. President Banda said
Citrus Plantation in the 3
Zambia now boasted of
Offing
home grown corporations
which he said were among
COMESA Well Endowed 3
the largest in Africa.
With Natural Resources
The government, he added,
was determined to con-
Business Development 4
tinue facilitating actual
Services Set To Expand
President Rupiah Banda production of mobile
phones as this would
than 200 Zambians in vari-
A U$10 million mobile
greatly help reduce the
phone manufacturing plant, ous capacities. Among them
cost of communication in
known as M-mobile Telecom-
Points of Interest the country. He said this
are engineers, technicians
munications Zambia Limited
was aimed at adding value
and many others in various
(M-Tech), has officially
• “Keeping Zambia com- to the country’s economic
technical fields. He was
opened in Lusaka, the first
petitive begins with keep- development process,
happy that the company
cellular phone manufactur-
ing our economy growing. which was a significant
would benefit Zambians
ing company to open in the
And our economy can step towards the realiza-
through employment crea-
country. President Rupiah
only grow when a lot tion of Zambia’s Vision
tion, technology transfer and
Banda, who officially
more Zambians invest in 2030 of transforming into
human resources develop-
launched the plant , said the
the domestic economy,” a middle-income country.
ment among other areas. He
company would employ more
• 15% cash rebate for quali-
fying expenditure in movie
making in Zambia
ZDA Approves U$179.3 Investment
• A significant 82 percent of
the companies that par-
ticipated in a survey indi-
Thirty six applications for sectors The approved pro- rest of the applications were
cated that they would
investment Licence have jects are expected to create from agriculture, health and
expand their businesses
been approved from January about 1,500 job new oppor- tourism sectors. Once imple-
which points to investor
to date with a planned in- tunities. In month of January mented the projects will cre-
confidence in the domes-
vestment value of U$179.3 2009 twelve applications ate 607 jobs.
tic economy million. In March twenty four were approved with planned
The planned investment in
applications were approved investment of U$39.3 mil-
various sectors of the econ-
with a total value of U$140 lion.
Quote omy is as a result of the fa-
million of planned invest-
Manufacturing accounted for vourable investment climate
ment mostly in manufactur-
Investors have very short ninety percent of the ap- resulting from Government’s
ing, transport and tourism
memories. R. Abramovich proved projects while the sound economic policies.
1

2. PAGE 2 IS SUE 1
to its diversification efforts. He was
TATA Buys Kabwe Tannery Credit Guarantee Scheme Coming…
speaking when he met investors from
TATA International through its local sub- Canada, India, and Malaysia. Mr. Mutati The Minister of Commerce Trade and
sidiary, TATA Zambia, has purchased said government will make a practical Industry, Mr. Felix Matati, is expected to
Kabwe Tannery at a consideration of process of translating initiatives into soon launch the Credit Guarantee
US$ 1,165,000 for core assets only. investments and agree on a clear road-
Scheme (CGS) for MSEs. The CGS is
TATA International was selected as a map on what should be done at the end
expected to provide cover, on a portfolio
preferred investor owing to its vast ex- of the discussions with the investors.
basis, to participating financial institu-
perience in the tannery business.
He said the investments will be able to tions and thus broaden access to credit
Speaking at the signing ceremony on the help Zambia achieve the target of five by capturing entrepreneurs with viable
Sale Agreement, Ministry of Commerce, per cent economic growth this year. Mr. business ideas but could previously not
Trade and Industry Permanent Secre- Mutati said the investors were willing to
access credit due to inadequate collat-
tary, Dr. James Mulungushi, said the form a joint partnership with Zambians
eral arrangements.
tannery had struggled to reach full pro- to set up investments in the country.
duction due to under-capitalisation
Business Incubator Programme On
“As government, we are providing a facil-
hence the sale of assets.
ity to assist these investors to put up Track
Dr Mulungushi said owing to the insol- investment and they will also assist us
vency of the tannery, a scheme of ar- to create jobs,” he said. He said govern- With the support of Finland, plans are
rangement had been drawn up to ad- ment would minimise risk factors in advanced for designing and launching a
dress the liabilities of the company that order to provide the investors with po- national business incubation pro-
would ensure that creditors and employ- tential partners, adding that government
gramme with the preliminary studies
ees are paid in due course. The Com- would make sure that this programme
finalized. The national business incuba-
pany has 32 employees who have not reaches its logical conclusion.
tor programme is expected to be a self
been paid their salaries for over 50
At the same occasion, Ink-Media Chief
months now. Tata plans to invest a fur- financing, public-private partnership
Executive Officer, William Plant, a Cana-
ther U$3.3 million and to create supplier responding to the business service
dian investor, said it was essential that a
opportunities for local hide producers. needs of early stage MSEs.
computer assembly plant is established
in Zambia because the country was cen-
Challenges Of Doing Business
Linking SMEs to TNCs
trally located. Mr. Plant said Ink-Media is
Land acquisition, obtaining electricity trying to help bridge the digital divide by
A business linkage programme to link
connection, and immigration permits are bringing the assembly of computers to
SMEs to trans-national corporations as a
major challenges in the process of es- Zambia.
tablishing new businesses in Zambia, way of developing SME’s market ac-
He stressed that Ink- Media was creat-
say most investors talked to by the Zam- cess is being undertaken with the sup-
ing a plant in Zambia to stimulate the
bia Development Agency (ZDA). port of UNCTAD. The plan is to link vari-
people to develop an interest in using
ous corporations in manufacturing, ser-
During its monitoring exercise of compa- computers.
vice and agriculture with SMEs. Sensiti-
nies holding investment Licences, ZDA
zation meetings have been held with
learnt that some companies were forced SME’s On The March….
to delay implementation of projects due various corporations and after product
Despite the global credit crunch, a total
to these hitches. One company indicated identification, sensitization will be held
of 33 applications by Micro and Small
that it took about 15 months to acquire
with SMEs.
Enterprises (MSEs) were approved by
land while another waited for six months
the ZDA in March 2009, representing
for installation of electricity.
Skills Development Continues…
realized investment of K 1.12 billion
A number of companies also indicated with a further K 587 million planned
that they experienced delays in getting In the first week of March, ZDA con-
investment. These MSEs currently em-
permits for their expatriate staff while ploy 186 workers and are expected to ducted a training on preparation of busi-
others were still in discussions with the create an additional 337 new jobs over ness proposals for twenty Lusaka entre-
Immigration Department. Through the the next two years. preneurs. The training was over five
monitoring exercise, ZDA dialogues with
days and it is expected that the training
“This is a positive development further
investors on various issues related to
will enhance the ability of these MSEs in
emphasizing the critical role MSEs are
the investment climate in Zambia.
expected to play in employment genera- planning their operations and more im-
The monitoring exercise is aimed at tion in Zambia,” says ZDA MSE Director portantly sourcing business funds. The
assessing progress made in terms of Windu Matoka. event was organized on a cost sharing
fulfilling initial investment and employ-
basis with the SMEs.
ZDA will provide business development
ment creation pledges.
services, help improve entrepreneurship
ZDA Partners Goldberg Associates
Government To Support Private In- skills and improve the ability to access
Citizen's Economic Empowerment Com-
vestors
mission (CEEC) and other funding by ZDA has partnered with Goldberg Associ-
Government has pledged to provide these MSEs. ates of the United Kingdom in facilitating
facilities that would help private inves-
Zambian transactions by creating a
The approved MSEs are in engineering
tors to set up their investment and cre-
bridge between international suppliers
products, food processing, candle manu-
ate jobs in the country. Minister of Com-
of finance, goods, and services and
facture, carpentry, veterinary services,
merce Trade and Industry, Felix Mutati
Zambian businesses.
and transport.
said government has nine companies
which are introducing a new dimension
2

3. IS SUE 1 PAGE 3
Survey Reveals Bright Economic COMESA Well Endowed With Ngosa Chisupa while Mr. Teddy
Kasonso, Permanent Secretary, Ministry
Future Natural Resources of Tourism and Natural Resources re-
places Mrs. Mukuka Zimba. The Board
Results have been released from a COMESA Region is well endowed with
Chairman , Mr. Luke Mbewe, has since
study entitled “The Economic Impact of natural resources, including fertile soils,
sent a message of gratitude to all former
Direct Investment on the Zambian Econ- large water resources, oil,
Board Members for their commitment
omy.” The study highlights findings from gold ,diamonds and copper in addition
and work particularly in the establish-
the Direct Investment Impact Survey to more than half of the world’s cobalt
ment phase of the Zambia Development
(DIIS) conducted by ZDA with Bank of and manganese and more than 80% of
Agency.
Zambia and Central Statistic involve- the world’s reserves of chromium and
ment and the support of the European platinum and rich mineral deposits. In a
Movie Making Set to Boom
Union’s Capacity Building for Private presentation to the second COMESA
Regional Investment Conference (RIA)
Sector Development.
With the announcement in the National
held in Cairo, Egypt, Mrs. Heba Salama,
Budget of the 15% cash rebate for quali-
The survey results, from the companies the COMESA RIA Manager, said these
covered in the sample were consistent fying expenditure in movie making in
resources have without a doubt an-
with other studies and revealed signifi- Zambia, it is expected that once passed,
chored national development efforts and
cant contributions to the economy, in have been the focus of regional integra- this will be a big news item for the movie
billions of Kwacha and notable expendi- tion efforts. making industry. It is expected that this
ture in Corporate Social Responsibility
measure will put Zambia in the same
She said despite the adverse effects
activities.
standing as countries that offer actual
that the global financial crisis may have
A significant 82 percent of the compa- cash grants and upfront investments to
on the COMESA Region in the short
nies that participated in the survey indi- term; the impact would not be as heavy entice producers from countries such as
cated that they would expand their busi- as the developed economies. Mrs. Canada, New Zealand and Ireland. With
nesses which points to investor confi- Salama called for lower costs of opera- all the scenic sites and this incentive
dence in the domestic economy while tions for companies to keep afloat. The
Zambia is well positioned to become a
other results revealed that a bright eco- launch of the COMESA Customs Union
movie making centre.
nomic outlook is envisaged with 77 per- this year would be another step in the
cent of respondents saying they ex- integration agenda after the region at-
‘Incentivizing” New Industrial Park
pected Zambia’s economic future to be tained the Free Trade Area, she added.
bright. Developers
The establishment of a COMESA Cus-
toms Union is expected to enhance intra
Policy makers and public officers are With the incentive schemes announced
and extra COMESA trade. It will also
expected to use the findings in the study
in the 2009 National Budget for devel-
create a wider customs territory that is
to present an effective argument for
likely to attract investors in the region opers of industrial parks, the developers
direct investment across all sectors in
and see an increase in cross border costs are expected to be lowered thus
order to promote economic growth and
investments. creating an impetus for setting up new
development, ultimately impacting on
government’s major challenge of reduc- industrial zones country wide. Fiscal
COMESA’s ability to increase FDI has
ing poverty. incentives hitherto were not applicable
improved and In fact has been very en-
couraging since the COMESA accounted to MFEZ and industrial Park developers
Citrus Plantation In The Offing for 40% of FDI flow into Africa in 2007. but this new budget measure once ap-
This was due to the fact that most of the proved is expected to boost interest
Plans are underway to develop a Citrus
COMESA countries have opened up to
Plantation with a processing plant on amongst potential industrial park devel-
investors. Price controls have been abol-
the border of Mongu and Senanga dis- opers.
ished and the private sector has been
tricts in the Western Province. accorded a more active and prominent
Zambia To Host North South Cor-
role in the economy.
The setting up of the plantation and the
ridor Conference
processing plant is an initiative of the
ZDA Gets New Board Members
local and provincial administration with
the blessings of the Barotse Royal Es- Zambia is set to host a high level confer-
New Board Members have been ap-
tablishment (BRE) in order to reduce
ence on the North South Corridor on 6 to
pointed to the ZDA Board by Govern-
endemic poverty in the province. ment. The new Board members are Mr. 7 April, 2009 in Lusaka. The North
Likolo Ndalamei, Secretary to the Treas- South Corridor Pilot-Aid-for-Trade Pro-
A ZDA team that visited the area to-
ury who has replaced Mr. Evans Chibiliti;
gether with the Senanga and Mongu gramme is a joint COMESA-EAC-SADC
Dr James Mulungushi, Permanent Secre-
district officials recommended that the initiative that aims to reduce the time
tary Ministry of Commerce Trade and
area should immediately be transformed and cost of road and rail transport on
Industry, replaces Mr. Davidson Chilipa-
from traditional land to state land and
the corridor spanning eight countries.
mushi, while Dr Simon Mitti, Permanent
for a technical report to be submitted to
Secretary Science and Technology takes The conference aims to secure donor, IFI
the ZDA by the project initiators, in con-
over from his predecessor, Dr. Buleti and private sector Aid-for-Trade to fi-
junction with the Ministry of Agriculture
Nsemukila.
and Co-operatives, to ensure that the nance the removal of infrastructural
project attains full implementation. bottlenecks and secure commitments
Others who have been appointed are Dr.
for members of the three regional blocks
Goldwin Beene, Permanent Secretary
This will facilitate the preparation of a
to address regulatory and administrative
Mines and Mineral Development, who
project proposal to attract investors in
takes over from Mr. Leonard Nkhata, Dr. constraints blocking expansion of trade
the area.
Winnie Mwenda, Permanent Secretary and economic growth.
Labour and Social Security, replaces Mr.
3

4. Zambia Development Agency
Events
P.O Box 30819
Nasser Road
Enhancing Zambia Development Agency’s Capacity to Fa-
Lusaka, Zambia cilitate Investors and Investment Workshops and Valida-
tion Meeting
Tel: 260-211-220177
Proposed Dates
Fax: 260-211-225270
E-mail: zda@zda.org.zm
Eastern Chipata 1-2 April 2009
Website: www.zda.org.zm
Western Mongu 7-8 April 2009
North Western Solwezi 15-16 April 2009
Luapula Mansa 21-22 April 2009
Northern Kasama 27-28 April 2009
Central Kabwe 4-5 May 2009
Copperbelt Ndola 7-8 May 2009
VISION
Mobilisation of validation meeting (Lusaka) 15 May 2009
“To become a world class Agency for the promotion and facilitation of economic
development.”
Validation meeting 26-28 May 2009
Zambia Development Agency
Power In Numbers Business Development Services Skills Training Continues....
set to Expand In the third week of March, Gender in
Sensitisation on Small Aggregation Ini-
Development Division (GIDD) in conjunc-
tiatives (SAIs) has been conducted for
The Business Development Services tion with ZDA conducted a training pro-
welders from Lusaka’s Kalingalinga
gramme on entrepreneurship & busi-
(BDS) Voucher Programme has issued a
compound and carpenters from Kalinga- ness for MSEs in Chipata. The pro-
total of 60 vouchers with a value of
linga and Mandevu compounds and gramme was also conducted for women
K300 million. This has been done for
various entrepreneur groups on the Cop- living with HIV in Chelstone, Lusaka;
SMEs who are members of ZNFU and
farmers in Nega Nega, and ZESCO retir-
perbelt. The SAIs encourage entrepre-
ZCSMBA in Petauke, Mumbwa, Kasama
ees in Livingstone.
neurs involved in complimentary prod-
and Livingstone. The BDS is a non-
ucts to work in organized groups and
Zambia Development Agency
financial intervention designed to assist
pool their resources together, share
SMEs improve their business practices
common facilities so as to improve pro- The ZDA was established in 2006 by an
and contribute to poverty alleviation. It is
ductivity. It is envisaged that once or- Act of Parliament and began operating
sponsored by Finland, Netherlands the in January 2007 after the amalgamation
ganised, the SAIs would be assisted in
Government of Zambia and ILO. From of five agencies that hitherto operated
procuring asset finance and technology
January 2009, the BDS Programme is to independently to foster economic growth
to improve product quality and exhibition
and development by promoting trade
be rolled out to 16 additional districts
facilities. Marketing support would also and investment through an efficient,
that+ include Kabwe, Kapiri Mposhi,
be provided to these SAIs. effective and coordinated private sector
Mufulira, Solwezi, Mkushi, Monze, Maza-
led economic development strategy.
buka, Choma, Mansa and Chipata. The
This initiative is to be extended to weld- These agencies were the Zambia Invest-
BDS Programme augments the CEE ment Centre, Zambia Privatisation
ers in Garden compound in Lusaka, and
Fund in that it helps SMEs build capac- Agency, Export Board of Zambia, Small
Southern Province. A similar initiative is
Enterprise Development Board and Zam-
ity to access CEE funding.
being contemplated for the owner-driver
bia Export Processing Zones Authority.
bus concept.
4