Transcript Presentation on Investing in Zambia 2 – AIF08

Comprehensive Fiscal Regime
Investing > US$500,000 in a priority sector or in the MFEZ
shall enjoy the following incentives:
Zero percent tax rate on dividends for 5 years from the
date of first declaration;
Zero percent tax on profits for 5 years from the first year
profits are made. For year 6 to 8, only 50 percent of
profits are taxable and years 9 & 10, only 75 percent of
profits are taxable.
Zero percent import duty rate on raw materials, capital
goods, machinery including trucks and specialised motor
vehicles for five years.
Deferment of VAT on most machinery and equipment
including trucks and specialised motor vehicles
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Dividends in the assembly of motor vehicles, motor
cycles and bicycles exempt from tax first 5 years;
0 – 5% Import duty on most capital goods for
production and computer parts on machinery used in
textiles, clothing, roofing sheets
Zero percent Duty on inputs in textiles and clothing
SMEs qualify for incentives – corporate tax 0% for 3
years for urban and 5 years for rural
Non Fiscal
Facilitation
work and immigration permits, land
acquisition, secondary licenses, utilities
Stability and protection
Zambia
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Priority Sectors – Very Wide …
 Almost all sectors and products processed are
covered
Moving from primary commodities to low tech
manufacturing and knowledge based economy
 Drive for economic diversification
 Mining centered on value addition
 Medical and education not social but economic
sectors
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Projects
May 2008
Mining
Mining and Mineral Processing
Opportunities
Mineral deposits in Zambia are classified
into:
– Base metals;
– Energy minerals;
– Precious metals;
– Industrial minerals; and
– Gemstones.
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Investment Opportunities:
Mining & Mineral Processing
Copper: copper exploration in Lusaka, North Western
Central Provinces.
Iron: exploration for iron in North Western, Lusaka and
central provinces.
Nickel: development of nickel mine at Munali Hills, near
Kafue gives opportunities for further exploration .
Gold:indicated in Northern Province, parts of the Katanga
ore - more than 300 gold occurrences recorded:– Largest historical producers Dunrobin (990 kg; Matala
(225 kg) in Mumbwa District; Jessie (390 kg) in the
Rufunsa area; (iii) and Sasare (390 kg) in Eastern
Zambia.
– Luiri Gold Mines prospecting the Mumbwa deposits feasibility study to resume mining operations in the area.
– Further deposits – Chisamba (Kaputa), Mbala (Senga
Hill), Lundazi (Msidza River), Nyimba, Zambezi, Lusaka
(Leopards Hill)
May 2008
Mining
Mining and Mineral Processing
Only 24 % explored
Opportunities in gold, copper, cobalt, uranium, zinc,
nickel, substantial iron resources identified
Precious stones – diamonds and emeralds occurrence
indicates significant exploration potential
Copper smelting capacity shortfall of ±300,000 tp.a.
– Zambia and overspills from DRC
– Tolling agreement potential high – given 15% export tax on Cu.
Concentrate
Industrial chemicals – limestone,
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Investment Opportunities:
Mining & Mineral Processing
Manganese: in northern and central parts of the
country, all deposits with high ore content ranging
between 48% and 54%
Tin: Mostly from the Choma Tin Belt in Southern
Province, Mporokoso, Lundazi, Mkushi
Gemstones: are known to occur in many parts of
Zambia
– joint ventures with existing small-scale operators or in
green fields in Emeralds, Amethyst, Aquamarine,
Tourmaline, Garnets, and Beryl.
May 2008
Investment Opportunities:
Mining & Mineral Processing
Phosphates: Petauke in Eastern Province1.6m
tonnes; Mumbwa at least 700,000 tonnes;
Rufunsa at least 200 m tonnes; Isoka town, at
least 200 million tonnes.
Other Industrial minerals:
– Limestone – Lusaka, Kabwe, Ndola, N/Western,
Northern, Luapula
– Ball and Brick clays – Solwezi, Serenje
– Silica sand – Kapiri Mposhi for Glass.
Feldspar: Deposit near Siavonga and Kapiri
Mposhi
Dimension Stone: Grey and white marbles –
Lusaka, Solwezi, Mpika, Chipata
May 2008
Hydro-Electricity
No.
Description
Capacity (MW)
Cost (US$ )
million
1
Itezhi-tezhi
120
150
2
Kariba North Extension
360
360
3
Kafue Gorge Lower
750
900
4
Batoka Gorge
800
2,200
5
Kalungwishi River
210
600
6
Devil’s Gorge
600
1,655
7
Lusiwasi Extension
40
100
8
Mpata Gorge
500
839
9
Lupaula River (Mombotuta, Mambilima)
850
2,500
TOTAL
4,250
May 2008
Investment Opportunities:
Energy Mineral & Mineral Processing
Coal – Maamba area and Luangwa, LuanoLukusashi valley, Barotse basin;
Uranium – Tip of Lake Kariba and Lumwana
area
Petroleum - -Strong indications for oil and gas by
Microbial Prospecting for Oil and Gas (MPOG) in
– North Western Province – Preparing for call for tenders
for detailed prospecting work
– MPOG method xtended to the Rift Valley in Eastern
Province where Mobil and Placid Oil did some work,
including drilling between 1986 and 1991
Smelting facilities – current shortfall 300,000
tpa; toll treatment opportunities
May 2008
Investment Opportunities:
Manufacturing
Value addition to copper
– Cu Tubes, Alloys, Rods, etc
Cotton Clusters
– Cotton growing
– Textile
– Clothing
Metal/Engineering works – Joint ventures
Wood processing – value addition
May 2008
ZDA
Investment Opportunities:
Agriculture Farm Blocs
In 2002 the government identified farming
blocks in nine areas, one in each province
Each farming block to have
– At least one core large-scale farm of 10 000
ha;
– Commercial farms of 1 000 to 5 000 hectares;
– Small holdings – sizes of 30 to 300 ha
Government to provide basic infrastructure
- trunk roads, bridges, electricity, dams,
schools and health centers in farm blocks
May 2008
ICT projects
ICT - projects
Present market
–
–
–
–
–
Zambia 12 million – region – 400 million
All ICT equipment is imported from mainly Asia
Mauritius / South Africa – major competitor
Semi-skilled labour, land etc
Infrastructure – Multi Facility Economic Zones
Accommodate – tech parks
To require – skilled labour – permits obtained
– ICT policy aims to develop local talent in software development
By ICT technology/Hub parks
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ICT projects
Technology Hub / park development
Ministry of Communications
Enterprise & software development
– In Multi-Facility Economic Zones
– Project seeks investors to develop tech parks & software
development
Call Centre establishment
– Increasingly becoming popular
– Several MNC’s needing to support international transactions in
HR, distribution, procurement at global
– Location – Multi-facility Economic Zones
– Big corporations that could support call centre business include
Lafarge, copper mines BP Plc etc
– Inputs
labour English speaking available
2.5Gbps fibre optic fibre laid over 1,700 km by state corporations
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ICT projects
ICT – projects – Ministry of
Communications
Manufacture of ICT equipment
– TV, telephone handsets, computers
Ideal in Multi-facility economic zone
Labour and land available
Infrastructure
– Rail, road and air to all destinations
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Investment Opportunities:
Health Sector
Pharmaceuticals:
Only 7 Manufacturing Companies in
Zambia
mostly
engaged
in
the
Manufacture of Basic Pharmaceutical
Formulations (Medicines).
The Majority of Drugs required under
the Essential Drug List are still being
imported.
May 2008
Investment Opportunities:
Construction
Shopping malls – Chirundu, Kasumbalesa
Border Control facilities – Kasumbalesa
(PPP)
Toll road opportunities (PPP)
Accommodation – Residential, Office and
Warehousing
May 2008
Section heading goes here
Summary
– Project listing available
– Further enquiries welcome & to be provided
with project details
– Contacts
Zambia Development Agency
Email: [email protected]
Tel: 260 1 220177 Lusaka, Zambia
nanana
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