. Chisanga

By JUDITH NAMUTOWE –

ZAMBIA’S economy has continued to show robust growth as evidenced in 2013 where the country posted a Gross Domestic Product (GDP) of around six per cent.
This economic resilience is supported by the country’s focus on trade and investment as a channel to sustain economic growth.
The economic environment has provided incentives aimed specifically at increasing levels of investment and international trade, as well as growth of the economy in general.
Investment contributes to the current  demand of capital goods, thus it increases domestic expenditure and enlarges the production base and production capacity.
It modernises production processes, improving cost-effectiveness and reduces the labour needs per unit of output, thus potentially producing higher productivity and employment.
Investment adds to the stock of capital, and the quantity of capital available to an economy is a crucial determinant of productivity.
The Zambia Development Agency (ZDA) in overseeing investment inflows into the country notes that the economy has grown on the back of resilience with opportunities in non-traditional exports such as agro-processing, technology and telecommunication among others.
ZDA director general Patrick Chisanga said investment allows for production of new and improved products, increasing value addition in production.
It incorporates international world-class innovations and quality standards, bridging the gap with more advanced countries and helping exports and an active participation to international trade.
It is against this background that ZDA in collaboration with Pangea Securities is organising the International Zambia Investment Conference aimed at bringing together local and foreign entrepreneurs with the view of exploring the massive investment opportunities in the country.
The conference to be held in Zambia on December 4 and 5, 2014 is further aimed at sharing success trade ‘secrets’ to inspire local entrepreneurs and bring in new investment in the country.
Mr Chisanga said, along with renowned world entrepreneurs, there would be a number of existing potential investors that are scheduled to attend the conference.
The conference, which has attracted more than 300 enterprises, comes at a time when Zambia’s economic profile is on the rise with investors focusing their attention on the country due to opportunities it presents in different economic sectors and year on growth averaging six per cent.
“Through trade and economic platforms such as the forthcoming investment conference, Zambia is placing itself firmly on the investment radar of the international community and recent Foreign Direct Investment (FDI) inflows into the economy is a demonstration of the interest that Zambia continues to generate worldwide,” he said.
In 2013, Zambia attracted US$2 billion in FDIs and this year offers an opportunity to build on the international community’s confidence to attract more investment.?Along with renowned world entrepreneurs, there will be a number of existing potential investors attending the conference.
Among the international enterprises expected is the Germany-based company Amatheon which already has investment in Mumbwa, International Enterprise of Singapore, Olam Singapore, Italy Real Estate Industry from Milan and Italy Cement Group.
Notable speakers are economist Charles Robertson, author of “The Fastest Billion”, Lusaka Stock Exchange (LuSE) chief executive officer Brian Tembo and Carl Bruhn, founder and chief executive officer of the agriculture and food company Amatheon Agri Zambia limited among many others.
During the conference the ZDA is expected to sign a Memorandum of Understanding (MoU) with the International Enterprise Singapore aiming to enhance its partnership as regards investment and trade promotion.
This will be a second framework of cooperation that the Agency will be signing after the one signed with Polish Investment Promotion Authority in Poland’s capital Warsaw.
Mr Chisanga was delighted to note that a long host of other speakers are to attend the conference where world-renowned entrepreneur and founder of the Virgin Group, Richard Branson will give the keynote address.
“I wish to state that this conference and the tremendous interest that it has generated both from local and international participants is a strong testimony of investor confidence in Zambia despite the demise of the late president Michael Sata,” he said.
Pangaea Securities Company chief executive officer Ceaser Siwale observed that foreign investors are looking for alternative sectors to explore in Zambia because of its vast potential for economic growth.
Mr Siwale says the international investment community is attracted toZambia because of its potential for economic growth through untapped sectors.
He cites logistics and the distribution sector where the country is yet to fully maximise on its geographical position to be a hub in the region.
“From our perspective, this is probably the most important sector forthe entire Zambian economy as all sectors are heavily dependent of its efficiency.
Zambia needs to change the model of accepting Johannesburg and Durban as being the hub for southern Africa.
Without embracing our competitive advantage as the hub for the southern and central African region, we will also be an expensive destination for conducting business,” he said.
The conference to be hosted by Pangaea and ZDA will host more than 30 panelists and speakers, including business leaders, investors and policymakers.
The forum was a platform for networking and establishing new investment opportunities while improving existing ones.
He noted that the international interest in Zambia’s investment opportunities remain high with various companies keen to explore the non-traditional sectors such as fast moving consumer goods (FMCG), telecommunications, media and technology, logistics and distribution, infrastructure and construction as well as agric-processing.
“Zambia is attracting interest from investors that are interested to support the country’s economic diversification plan.
There is an increasing awareness of the opportunities outside the mining sector and this is something that can be a catalyst for transformation of our economy from its reliance on mining to a diversified sector that not only attracts FDIs but creates more employment opportunities,” he said.
Zambia will continue to play its role of attracting local and foreign investment as well as promoting the growth of entrepreneurs.