ZDA Records US$ 8.9 bn in Actualised Investments (2021-2024)
Statement from the Zambia Development Agency (ZDA) on Friday 23rd August reads as follows:
“As ZDA, we recognise the important role of the media in informing the country of critical messages on Investments, Trade and Business Development.
It is against this backdrop, that the Agency hereby shares highlights for the actualised investments for the past three years as detailed below:
A. Zambia Development Agency Mandate
The Agency under the ZDA Act No 17 of 2022 and Investment, Trade and Business Development Act No 18 of 2022 has the mandate to promote:
1. Both Local and Foreign Direct Investment
2. Trade
3. Business Development for Small Medium Enterprises
B. Performance Overview
The Agency continued to execute its mandate to promote trade and investment through targeted trade and investment missions and by facilitating business development services, all of which were aimed to promote growth and competitiveness of businesses in key sectors of the economy.
1. US$ 8,9 Billion Actualised Investments - 2021 to 2024
The Agency has recorded unprecedented investment promotion activities in the past three years which resulted in US$ 8.9 billion actualised investments out of committed investment of USD 54 billion for the period 2021 – 2024.
The US$ 8.9 billion was recorded from 440 companies out of the 1048 companies registered between 2021 and 2024. Data from the 608 companies is still being awaited due to slow responses, once received the final actualised amount will be communicated accordingly.
The actualised US$ 8.9 billion was against a committed investment value of US$ 7.9 billion, from the 440 companies that responded representing 113% actualisation rate.
Top Ten Investments Actualised
S/N Project name Country of origin Sector Committed Investment (USD) Actualised Investment (USD)
1. FQM Trident Limited British Virgin Islands Mining 1,810,110,000.00 2,248,000,000.00
2. Tuff Boards Limited Zambia Manufacturing 1,381,000.00 906,000,000.00
3. Tim Motors Zambia Limited China Service 4,789,774.00 700,000,000.00
4. United Capital Fertilizer Zambia Company Limited Zambia Manufacturing 1,100,000,000.00 500,000,000.00
5. Shape It Adhesives Zambia Limited Zimbabwe Manufacturing 1,237,500.00 403,000,000.00
6. Sparta Limited Zambia Agriculture 1,755,000.00 350,000,000.00
7. Chenguang Biotech Zambia Agri-Dev Limited China Transport 1,100,000.00 350,000,000.00
8. Konkola Copper Mines PLC India Mining 1,000,000,000.00 312,910,000.00
9. Unified Chemicals Zambia Limited Zambia Manufacturing 220,000,000.00 228,000,000.00
10. Mopani Copper Mines PLC Switzerland Mining 281,000,000 220,000,000.00
11. Others 3,434,415,985.00 2,678,395,601.29
Total 7,855,789,259.00 8,896,305,601.29
Actualisation by Sector
Actualisation rate per sector was as follows:
o Mining recorded the highest with US$ 3.34 billion representing 34.91%,
o Manufacturing was the second highest with US$3.10 billion, representing 34.85%,
o Transport US$1.2 billion, representing 13.2%
o Services US$777 million, representing 8.7%
o Agriculture US$448 million, representing, 5.04%
o Tourism US$80.7 million, representing 0.91%,
o Energy US$77.9 million, representing 0.88%
o Construction US$ 65.2 million, representing 0.73%
Actualised Investment by Province
• Lusaka province recorded the highest value of actualisation of USD 5.3 billion against a committed investment of USD 2.7 billion, representing an actualisation rate of 63.3 percent of the total actualised investment.
• North Western province was the second highest with an actualisation of USD 2.3 billion against a committed investment of USD 1.84 billion, representing an actualisation rate of 27.3 percent.
Jobs actualised
Aside from investments, 36,045 jobs were actualised against committed employment of 29,009 from the 440 companies that responded. This represents an actualisation rate of 124.3 percent from the 440 enterprises monitored. The details are as follows:
• Manufacturing recorded the highest jobs at 12,460 representing 34.5%
• Mining was second with 9,692 representing 26.8%,
• Transport, 6,133,
• Agriculture, 3,049; and
• Services 2,554
Actualised Jobs by Province
• Lusaka province recorded the highest number of jobs with 18,433 jobs created accounting for 51 percent of the total actualised jobs.
• This was followed by Copperbelt province with 10,853 jobs created, representing 30 percent of the total actualised jobs.
Top 10 performing companies monitored by Number of Jobs Created
In terms of the top ten (10) enterprises monitored by jobs created, findings were as follows:
1. Mopani Copper mines PLC ranked highest with 6,010 jobs created
2. First Quantum Minerals (FQM) was second with 3,112 jobs created
3. United Capital Fertilizer Zambia Company Limited, 1,468 jobs created
4. Yalelo Limited - Renewal Quattro Company Limited-Renewal, 1098 jobs created
5. Quattro Company Limited-Renewal, 950 jobs created
6. Mimbula Minerals Limited, 800 jobs created
7. Varun Food and Beverages (Zambia) Limited- Renewal,780 jobs created
8. Yoyo Foods Limited, 700 jobs created
9. A.P.G Milling Limited – Renewal, 640 jobs created
10. Varun Beverages (Zambia) Limited- Renewal, 555 jobs created
Local Business Development Program and Corporate Social Responsibility
• USD 401.8 million was actualized in form of Local Business Development Program and Corporate Social Responsibility.
• In terms of Local Business Development, the enterprises involved in mining and manufacturing, local communities were supported through the subcontracting of various contracts to the enterprises;
• Major CSR activities included building and upgrading of schools. Others were donations, health facilities, grading of gravel roads, support to chiefdoms during traditional ceremonies, provision of transport services during pandemics such as Cholera and Covid-19, prize sponsorship and internship opportunities to deserving students in schools and colleges.
Members of the Press, these are some of the highlights of the actualised investments for the period 2021 – 2024.
The Agency will continue prioritizing monitoring the performance of enterprise registered with regards to actualisation as it provides evidence of accounting for economic benefits accruing to Government for the fiscal and non-fiscal facilitation investments.
C. KEY DRIVERS OF INCREASED INVESTMENT IN ZAMBIA
1. Good Leadership
His Excellency Mr. Hakainde Hichilema President of the Republic of Zambia is providing the good and focused leadership in growing the economy of Zambia as the Country‘s Chief Marketing Officer. He has promoted the country’s untapped investment opportunities far and wide. Investors have responded and they are trooping into Zambia like never before.
2. Robust and consistency policies
President Hakainde Hichilema is providing good leadership across sectors including mining, energy and agriculture sectors, hence providing confidence to the private sector as the drivers of economic growth. The president has established the Public Private Dialogue Forum (PPDF) providing seamless engagement between public and private sector to engage and resolve all red tape and bottlenecks standing in the way of development.
Further the Presidential Delivery Unit has been established to ensure all presidential priorities are delivered on time. This is a game changer in the scheme of doing things and has resonated well with private sector.
3. Stable Macro Economic and Fiscal Policy Fundamentals are now the norm under President Hakainde Hichilema
• Stable inflation,
• Stable Exchange rate
• Restructured debt
• Prudent spending, transparency and accountability
4. Consistent funding to the Zambia Development Agency
The New Dawn government has placed a premium on trade and investment as the means for creating jobs and wealth for the citizens of Zambia. To this effect the government has consistently funded ZDA to ensure execution of trade and investment promotion activities within the country and the rest of the world.
D. ZDA IS APPEALING TO LOCAL INVESTORS TO STEP UP AND TAKE UP OPPORTUNITIES TO INVEST IN OWN COUNTRY
The ZDA Act No 17 has provided for low investment threshold of US$ 50,000.00 to make it easier for local investors to access incentives that include the following:
1. Zero % customs duty on imported equipment and machinery
2. 10 years tax holidays on dividends and profits if set up in the multi facility economic zone and exporting or farming in the farm blocks
3. Extension of incentives to expansion projects- encouraging renewals
4. Opportunities in farm blocks and energy sectors
5. Constituency Development Fund opportunities
I thank you for your attention, God bless you and our great nation Zambia.