Zambia Investor Briefing: February 2023
ZAMBIA INVESTOR BRIEFING
February 2023
OVERVIEW
Minister of Health Sylvia Masebo has identified Zambia’s pharmaceutical sector as a priority industry for foreign direct investment. It will form a key part of the government’s post-pandemic approach to improving health security, she said, and the drive to promote private sector driven socio-economic development. Her comment comes as Lusaka readies itself for the Zambia-EU Pharmaceutical Manufacturing Forum, designed to foster greater collaboration between Zambia’s pharmaceutical industry and international pharmaceutical giants. Other participants will include those from the finance, textiles and insurance industries.
President Hilchilema travelled to Addis Ababa, Ethiopia, to take part in the 36th Ordinary Session of the Assembly of the African Union. While there, the president held bilaterals with a number of heads of state, including President Samia Suluhu Hassan of Tanzania, and the DRC’s Félix Tshisekedi. Presidents Hilchilema and Hassan agreed to fast-track the upgrade of the TAZAMA pipeline, which carries crude oil between Tanzania and Zambia, while his meeting with Tshisekedi centred on solving issues at the Kasumbalesa border crossing.
US Under Secretary for International Trade, Marisa Lago, met with President Hichilema in Lusaka. The pair discussed the Commercial Memorandum of Understanding (MoU) that “will leverage our shared interests into closer business linkages between our two nations and drive inclusive economic growth”, the president wrote. Lago’s visit came off the back of the Africa Leadership Summit, held in December in Washington, D.C., when Hilchilema met with both US Secretary of Commerce, Gina Raimundo and President Joe Biden.
Blue Carbon signed an MoU with the Government of Zambia which will kickstart carbon removal projects in Zambia’s forestry sector. The Dubai-based company supports such projects under Article 6 of the Paris Agreement. Both President Hichilema and Blue Carbon Chairman Sheikh Ahmed Dalmook Al Maktoum were present at the signing in Lusaka. Al Maktoum said “We are confident that our robust decarbonisation model will enable the Zambian government to preserve its forest resources and reduce greenhouse gas emissions efficiently”.
Invest Africa are to lead a delegation for an Investment and Trade Mission to Lusaka in March. The Mission aims to provide a platform for international and regional investors to engage with senior government officials, in addition to key investment and trade institutions, such as the Zambia Development Agency. The delegation will hold meetings with President Hichilema, the Central Bank Reserve Governor, and the Minister of Industry, Trade and Commerce, amongst others.
The Board of Directors of the Zambia Development Agency has appointed Albert Halwampa as the New Director General. The ZDA said “Mr Halwampa brings with him a wealth of knowledge and strategic experience in promoting trade, investment and policy development in regional and international markets. There is no doubt his experience will bring about the desired change and contribution to the increase in investments in Zambia”.
Foreign Direct Investment
February saw a number of significant developments with regards to foreign direct investment (FDI) in Zambia. High-level meetings took place between President Hichilema and UAE-based Blue Carbon, representatives from Citi Bank and Standard Bank, in addition to discussions with US Under Secretary for International Trade, Marisa Lago.
State House also played host to a delegation from the Africa Finance Corporation, meeting with its President and CEO Samaila Dalhat Zubairu to how Zambia can best utilise public-private partnerships to accelerate economic development.
All of this comes ahead of the Zambia-EU Pharmaceutical Manufacturing Forum, which will be held from 01 - 03 March 2023 in Lusaka. Health Minister Sylvia Masebo told the media that nine Zambian pharmaceutical firms have confirmed their plans to attend, alongside 28 international pharmaceutical companies, under the theme “Strengthening Healthcare Through Local Pharmaceutical Manufacturing.” “The need to promote FDI and other forms of private-public partnerships has already been identified as key to the ambition”, she added.
A delegation from Invest Africa, a business and investment platform that aims to provide its members with information and exposure to business opportunities to invest in the continent, will travel to Lusaka in March. Limited spaces are still available for international delegates to join the Mission. If you are interested, please contact farha.musa@investafrica.com.
Regional Partners
The 36th Ordinary Session of the Assembly of the African Union was held in Addis Ababa, which saw President Azali Assoumani of Comoros elected as New Chairperson for 2023, taking over from Senegal’s President Macky Sall.
President Hichilema met with several leaders on the sidelines of the summit, including Tanzania’s President Suluhu Hassan. The pair agreed to expedite the upgrade of the 50 year old TAZAMA oil pipeline that runs from the Tanzanian port city of Dar es Salaam to Ndola in Zambia. Energy Minister Peter Kapala said the agreement would help help the cost of petrol affordable for citizens and businesses alike.
Both Hichilema and his Congolese counterpart Félix Tshisekedi have vowed to solve the issues that persist at the Kasumbalesa border crossing between their two countries. A huge increase in the demand for copper and cobalt globally, key components in electric batteries, has seen long queues form on both sides of the border. Zambia’s Transport and Logistics Minister Frank Tayali has said that poor customs services are also partly to blame.
LATEST TRENDS
GDP
Inflation
Currency
1 USD = 19.95 ZMW 30 day average = 19.349 Volatility (last 30 days) = 0.5%
OTHER NEWS
Angola, Zambia and DRC take step towards creating trade corridor, 01.02.23, Business Live
Letter: China is the key to unlock Zambia debt restructuring, 06.02.23, Financial Times
Zambian finance minister criticises creditor delays in debt restructuring, 13.02.23, Financial Times
World’s largest man-made dam weighs using floating solar panels, 16.02.23, Bloomberg
Zambia secures funds for climate adaptation with Commonwealth support, 21.02.23, The Commonwealth
Zambia inflation accelerates as underlying price pressures build, 23.02.23, Bloomberg
Zambia’s Moping halts mine shaft operations after worker dies, 28.02.23, Reuters
UPCOMING EVENTS
01.03.23 - 03.03.23
Zambia-EU Pharmaceutical Manufacturing Forum
Lusaka, Zambia
20.03.23 - 23.03.23
Investor Mission to Zambia, Lusaka
CONTACT US
If you would like to find out more or receive tailored briefings on specific sectors get in touch via info@zambiaisback.com. To stay up to date follow us on social media:
Facebook: @zambiaisback
Twitter: @ZambiaIsBack
Instagram: zambia_isback