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Los Angeles Economic Development Corporation Pledges To Help Zambian Companies[1] WASHINGTON DC- Friday, September 2, 2017 - The World Trade Center Los Angeles (WTCLA) and the Los Angeles County Economic Development Corporation (LAEDC) have pledged to help Zambian companies seeking to explore markets in the State of California of the United States of America. WTCLA is an affiliate of the LAEDC and is Los Angeles County's leading promoter and facilitator of global connections and inbound foreign direct investment. WTCLA International Trade Manager Michael Smith says the LAEDC is determined to provide business assistance through market research to Zambian businesses wishing to locate or expand operations in Los Angeles County. Mr. Smith says the LAEDC stands ready to help Zambian companies build capacity to allow them to tap into the U.S market in sectors such as agriculture, manufacturing, construction, and technology skills transfer. He said this during a trade discussion meeting with Zambia’s Honorary Consul and Chief of Post in California Robert Sichinga Jnr, Embassy of Zambia in Washington D.C First Secretary Trade Charity Zulu and her Tourism counterpart Marsha Chipasha Holdway in Los Angeles. Mr. Smith further urged the Embassy of Zambia in Washington D.C to avail WTCLA with detailed specifics of projects seeking investment in various sectors in order to position Zambia as a choice of investment destination. Los Angeles County is the largest County economy in the U.S. with the Gross Domestic Product (GDP) of over 640 billion United States Dollars. And LAEDC is part of a team in California planning to visit Zambia next year to explore areas of investment in the country. And Mr. Sichinga also called on the LAEDC to identify companies in Los Angeles that will help Zambian companies add value to most of its products to increase on exports. He said Los Angeles County is leading in sectors similar to those that Zambia has targeted as part of its growth of non-traditional exports and its Job Creation and Industrialization Strategy. Mr. Sichinga further called for the expertise of the LAEDC to help package Zambia in a way that appeals to the Los Angeles based investor. And Ms. Zulu said Zambia has launched the seventh national development plan that has outlined key areas of investment in the country. She said Zambia’s manufacturing sector has considerable investment potential, as the country is relatively well endowed with raw materials and as such value addition, as well as technology transfer, is key. Ms. Zulu further said Zambia among other interventions is also exploring ways of the use of alternative and renewable energy to meet the country’s energy deficit. Meanwhile, Mrs. Holdway also urged the (WTCLA) to help identify companies in the film and digital industry to partner with film makers in Zambia to raise the country's tourism profile. Source URL (retrieved on Sep 4 2017 - 11:59am): http://www.zambiaembassy.org/article/los-angeles-economic-development-corporation-pledges-to-help-zambian-companies Links: [1] http://www.zambiaembassy.org/sites/default/files/photos/4S7A3078.JPG  PRESS STATEMENT
GOVERNMENT IMPLEMENTS DUAL CITIZENSHIP WASHINGTON DC- TUESDAY, August 1, 2017 - The Government of the Republic of Zambia has implemented the dual citizenship clause for Zambians in the diaspora who acquired citizenship of another country. The Citizenship Board will now register within six months a person who ceased to be a citizen of Zambia as a result of acquiring the citizenship of another country upon notification to the Citizenship Board of Zambia. Foreign Affairs acting Permanent Secretary Sylvester Mundanda has confirmed the development in a circular issued to Heads of Zambian Missions abroad. According to Statutory Instrument (SI) Number 50, The Citizenship of Zambia Regulation, 2017, now provides for a person who ceased to be a citizen as a result of acquiring the citizenship of another country to apply to the Board for restoration of the Zambian citizenship. “The Board shall cause to be entered in the register of citizens who hold dual citizenship, the names of a citizen who acquires the citizenship of another country. “A person who ceased to be a citizen as a result of acquiring the citizenship of another country may apply to the Board for bestowal of the citizenship in Form VII set out in the First Schedule,” SI No. 50 Clause 10 section 1 and 2 states. The SI further states that applicants for bestowal of citizenship, where the applicant is abroad may lodge the application with the Zambian mission in the country of that applicant’s residence or the nearest country where there is a Zambian mission. Mr. Mundanda has since directed diplomats in various missions to be conversant with the provisions of SI Number 50, Citizenship of Zambia Regulation, 2017 for the purpose of sensitizing Zambians in the diaspora. And Zambia’s Charge’ D’Affaires in Washington D.C Joseph Chilaizya has urged people in the United States of America who ceased to be Zambian citizens as a result of acquiring citizenship of another country to apply as soon as the mission receives all the required forms for bestowal of the Zambian citizenship. Mr. Chilaizya says the Embassy of Zambia in Washington D.C will in due course conduct sensitization programmes to increase awareness about the new piece of legislation. Issued by Cosmas Chileshe First Secretary (Press and Public Relations) Embassy of the Republic of Zambia 2200 R Street NW Mobile +1 202 413 1598 Fax +1 202 332 0826 Email: [email protected] Washington DC 20008. VICE-PRESIDENT Inonge Wina says the Sichuan Province twinning programme is the best route to accelerate Zambia’s I ndustrialisation agenda.
Mrs Wina says the overwhelming response from Chinese investors in Sichuan Province will spur the establishment of industries in Lusaka and the country as a whole. She says the twinning of Lusaka and Sichuan provinces as well as Chongwe and Mianyang City will cement warm bilateral relations between China and Zambia. Mrs Wina was speaking at Chengdu International Airport yesterday shortly before departure for Zambia after a week-long official visit to China. “My expectations have been more than met. This is the most successful trip we have taken and we have established ourselves in Sichuan to cement the good relations we have to develop our country and improve people’s lives,” she said. The Vice-President described the Sichuan cooperative agreement as the best development cooperation deal Zambia has signed with China in recent times. Mrs Wina said Zambia’s socio-economic landscape can only change positively by taking advantage of people-to-people relations and contacts to translate the development framework into reality. She said the twinning programme will also help Zambia learn best practices in implementing the decentralisation programme which has been well executed in China. Mrs Wina commended the private sector for fully participating in the development cooperation mission. “We can do much better as a united force as Zambians working together addressing a common cause,” she said. Mrs Wina thanked China for continuing to be a strategic development partner of Zambia. The Vice-President commended Zambia’s Ambassador to China Winnie Chibesakunda and her staff for the initiative that has established a Zambian presence in Sichuan Province to exploit trade, economic and cultural ties. Mrs Wina directed that the Zambia Week should be a continuous programme of marketing Zambia’s investment potential, tourism and cultural exchanges. She said Government will give Ms Chibesakunda all the neccesary support to ensure that the twinning programme succeeds and is rolled out to the remaining nine provinces of Zambia. Mrs Wina also paid tribute to the Zambian cultural dance troupe and artists for exceptionally demonstrating the best of Zambia during the Chengdu International Youth Music Festival held from Thursday to yesterday. She appealed to young Zambians to believe in themselves and use their talents to contribute significantly to the development of the country. Meanwhile, the Zambia Development Agency (ZDA) is overwhelmed with multi-million dollar Chinese firms seeking to invest in Zambia. ZDA director of investments Matongo Matamwandi said the agency has received numerous inquiries on investment opportunities in Zambia. Mr Matamwandi said Chinese businesses have shown willingness to invest in sectors such as energy, commerce, tourism and agriculture. He said Chinese businesses and investors from around the world have confidence in the Zambian economy owing to the stable economic climate and an attractive investment package. Speaking during the Zambia Week being held in Chengdu, China, Mr Matamwandi said the Chinese investments have potential to change the economic landscape of Zambia. He is happy that leading the investment interests are big Chinese businesses with international repute that want to aid Zambia’s economic development process and transformation. The Zambian embassy in China organised an exposition as a platform to market Zambia’s investment and tourism potential to Chinese businesses in Sichuan Province. – ZANIS A former miner has set up a Cassava-Starch Processing plant in Mansa District with a projected one-million U.S dollars annual return.
Noah Kaputula’s 1.2-million Kwacha project funded by the Citizens Economic Empowerment Commission -CEEC- is expected to engage over 3-thousand cassava suppliers and create 25 jobs with a production capacity of eight tonnes of starch per day. Mr. Kaputula says he came up with the idea of a cassava processing plant when the CEEC advertised that it was sponsoring Cassava processing in Mansa in 2013 and wanted to use his experience from working in the leaching plant in the Mines where starch was being used. And Minister of Commerce Margaret Mwanakatwe says government’s value chain clusters concept is now bearing fruit.The Minister promised to link Mr. Kaputula to the markets as part of continued development of the value chain clusters. Meanwhile Luapula Province Minister Nixon Chilangwa says CEEC’s projects in the province are fitting into the provincial administration’s vision of a better Luapula. And Bahati Constituency MP Harry Kalaba in whose constituency the project is located says Mr. Kaputula’s plant is a reflection that CEEC funds are not just meant for Lusaka residents but spread across the country for citizens wanting to be part of national development. LUSAKA TIMES – The World Bank has set aside $600 million for Zambia to invest in agriculture, energy, rural roads and budget support over the next three years.
Minister of Finance Felix Mutati said the World Bank has committed itself to increasing its support to Zambia under the International Development Association (IDA). Mutati said this yesterday after meeting Bank executive director for Zambia, Andrew Bvumbe, who is in the country for consultations. “I am happy that the World Bank executive director has come into Zambia at the time when the economy has begun to stabilise and macro fundamentals are cheerful. “We have received commitment from the Bank for increased resources and about $150 million will be in the form of budget support,” he said. Mutati said from the US$600 million, the agriculture sector will receive $255 million to support irrigation and agribusiness while US$280 million will be invested in the energy sector. PRISCILLA MWILA, Mansa
Daily Mail GOVERNMENT has launched the construction of a US$2 million industrial yard under the skills development and entrepreneurship project in Mansa. And Minister of Commerce, Trade and Industry Margaret Mwanakatwe said the construction is a symbol of the US$30 million loan acquired from the African Development Bank (AfDB) to contribute towards job creation, promote gender equality and poverty reduction. Mrs Mwanakatwe said this during the ground breaking ceremony yesterday in Mansa organised by the Citizens Economic Empowerment Commission (CEEC). “The industrial yards will provide an enabling physical space for entrepreneurs in woodwork, automotive and metal fabrication, among others. The yard will have 30 workshops for light manufacturing targeting wood and metal and agro- processing,” she said. Mrs Mwanakatwe said the Mansa industrial yard will house 120 entrepreneurs who will receive loans from CEEC to enable them rent modern equipment and expand their operations. She said the skills development and entrepreneurship project will support the construction of 10 industrial yards countrywide. Mrs Mwanakatwe said CEEC will also provide business linkages to enable entrepreneurs have access to markets for their products. She said the industrial yard is meant, improve competition among small enterprises and grow the industry. She said Government will outsource the management of the industrial yard to private sector firms and for services such as restaurants and waste management. And Luapula Province Minister Nickson Chilangwa commended CEEC for helping Government to implement a project that will provide employment for local people in the province. Mr Chilangwa said the project will enable the people of Luapula to create wealth using the available resources. And Mansa Central member of Parliament (MP) Chitalu Chilufya said industrial yards will provide employment, especially for the youth. Dr Chilufya said Mansa is a strategic town that can be used as a hub for various economic activities and contribute to economic growth. He appealed to investors to consider investing more resources in the various sectors in Luapula. And CEEC director general Likando Mukumbuta said phase one of the construction will be completed in July 2019. Mr Mukumbuta commended Government for providing CEEC with resources for the implementation of a project that will contribute towards the county’s diversification agenda. He commended the Luapula provincial administration for facilitating the acquisition of the 40-hectare land where the project will be implemented. CATHERINE MUMBA, Lusaka
Daily Mail ZAMBIA has appointed its first-ever honorary consul to Greece with the aim of strengthening trade and development relations between the two countries. The newly appointed honorary consul, Rose Chizi, has been based in Greece for more than 10 years. This came to light during a reception held in Lusaka recently in honour of Ms Chizi. Among those who attended the reception were Cyprus consul Chris Spiron, Greek community president Andreas Damalis, Japanese Ambassador to Zambia Hidenobu Sobashima, Ministry of Home Affairs deputy permanent secretary Angela Mulenga and secretary of the Greek Consulate in Zambia Eleni Mukuka, among others. During her stay in Greece, Ms Chizi has already hosted several Zambians and dignitaries who have visited that country in past years. She has been involved in several professional opportunities and has made great strides in building relationships, facilitating business collaborations with corporates, charities, non-governmental organisations and foreign women groups in Greece. Ms Chizi will focus on key sectors like agriculture, tourism, construction and education as Zambia continues to develop. As Zambia’s honorary consul, Ms Chizi will broker and facilitate investment opportunities as Greece is constantly looking for prospects to invest in Zambia. ESTHER MSETEKA, Lusaka
Daily Mail ZAMBIA needs to urgently establish a sovereign wealth fund (SWF) for minerals and metal to ensure future generations benefit from natural resources even after they are depleted. Tax Justice Network-Africa (TJN-A) notes that the SWF, which is a State-owned pool of money that is invested in various financial assets, will protect local resources and further help stabilise the economy through diversification. In the 2015 national budget, Government announced that it had allocated K100 million for the establishment of the SWF. However, the fund was put on hold owing to economic challenges that grappled Zambia and other commodity-driven economies. In the case of Zambia, the SWF was aimed at cushioning the impact in an event where copper prices slumped. “Ghana and Tanzania have SWFs for oil and gas sector but none for minerals. The rationale for the oil and gas sector is equally applicable to the minerals. There is, therefore, a need for these countries, including Zambia to establish a fund for key minerals and metals,” it says. TJN-A also says Zambia needs to tighten its policy and legislations to ensure that the rent distribution system allocates parts of mineral revenue to the communities near mining operations. This can be done through the adoption of the Africa Mining Vision (AMV) to promote mineral resource-based development and structural transformation. AMV is a pathway formulated by African nations themselves that puts the continent’s long term and broad development objectives at the heart of all policy making concerned with mineral extraction. As a strategy, TJN-A feels that the AMV will go beyond improving mineral regimes as a separate unit to establish how the sectors can better contribute to local, national and regional economic development. “The reform agenda highlights the critical importance and value of mineral taxes for development and improving fiscal benefits of mining. “It is within this context that TJN-A undertook a three countries and Regional Economic Community (RECs) study to measure progress towards domesticating the AMV,” it says. In recent years, the fiscal systems in Ghana, Tanzania and Zambia have all remarkably changed. The network notes that there has also been change in revenue management framework to a lesser extent in the three countries. KALONDE NYATI, Lusaka
Daily Mail THE revision of investment guidelines by National Pension Fund Authority (NAPSA) will unlock economic activity as significant funds will be released in the economy to support various sectors, Kukala Capital managing partner Jito Kayumba has said. Recently, NAPSA , which has, as at end of May, grown its fund to K18 billion, revised its investment guidelines to place more funds in small and medium-scale enterprises (SMEs), energy, capital markets and road infrastructure. What the revision of guidelines means is that there will be enough funds directed to private equity and venture funds like Kukula Capital to create more value into the economy directly to SMEs Mr Kayumba said in an interview on Friday that the development will ensure availability of capital, thus spurring growth through the scaling up of SMEs. “This will completely activate this economy. “The financial institution (NAPSA) just revised its guidelines and this will result in direct investment in companies. It also includes private equity investment, hiring pension managers that help them in terms of trading on the exchange,” he said. Mr Kayumba said the development will also create activity on the stock exchange. “This is probably the most important single event from the time the capital market was developed in the 90s,” he said. Mr Kayumba said supporting the growth of local SMEs remains critical in curbing illicit capital flows and externalisation of funds, which have affected the growth of most African countries, including Zambia, as revenue will always remain in the country. CHAMBO NG’UNI, Kabwe
Daily Mail KABWE is poised to have a second textile firm which is envisaged to create over 2,000 jobs for the local people once completed. The establishment of the textile firm is a brainchild of the Industrial Development Corporation (IDC) and is earmarked for construction in the Kabwe Multi-facility Economy Zone (MFEZ). The new textile will be the second to be established in Kabwe after Mulungushi Textiles, which has ceased operations to pave way for upgrading and rehabilitation works. Kabwe town clerk Ronald Daka said the new textile company will create over 2,000 jobs and Marubeni, a Japanese textile company, will be a partner in the construction of the firm. “The Government of the republic of Zambia through IDC has proposed to develop a textile industry and has requested for 26 hectares of land in the MFEZ and we have given 24 hectares,” Mr Daka said. Mr Daka said in an interview yesterday that the textile firm will seek to surpass the operations of Kafue Textiles and Zambia China Mulungushi Textiles. He said Kabwe Municipal Council is happy about the construction of the textile because it will contribute to the growth of the local economy. “For us this is a game-changer for Kabwe. Mulungushi (Textiles) is tied to a Chinese company but for this new textile, Marubeni are basically supporting this initiative,” Mr Daka said. He said investors in different areas are making inquiries about investment opportunities in Kabwe. He said this is an indication that they have confidence that their investments will be secure in the area. “People who want to invest should enjoy the benefits of investing in this Kabwe Multi- facility Economy Zone,” Mr Daka said. PRISCILLA MWILA, Lusaka
Daily Mail ZAMBIA’s charge d’affaires in Sweden Anthony Mukwita says Zambia stands to gain US$500 million finance package that will result in the revamping of Zambia Railways (ZR). Mr Mukwita said once the finance package is successful, ZR will be revitalised with new railway tracks, sleepers and locomotives for both freight and passengers in a modernised fashion. Mr Mukwita said in a statement yesterday that the interest by a team from Sweden that comprises Bombardier and Business Sweden to target Zambia for investment is a clear testimony that Zambia is a beacon of stability under President Lungu. “Zambia and Sweden have continued to enjoy warm relations, especially since the re-election of President Lungu in 2016. He must be commended for continuing to show signs of strong economic and prudent leadership by taking some tough decisions that his predecessors could not take for fear of losing popularity,” he said. The Citizens Economic Empowerment Commission has advanced a loan worth 1.4 million kwacha to KUMIL ENERGY Limited a local based company to carry out a feasibility and environmental impact assessment for the development of a renewable energy project. The project seeks to produce fuel ethanol from sugar can and will be set up in Mwansabombwe District in Luapula province on a 30 thousand hectares plantation. KUMIL ENERGY Limited has hired V.T.T a quasi-government agency of FINLAND, to undertake the study expected to be concluded in the next six months time. The planned project will cover public infrastructure, agriculture, real estate and the development of an industrial Ethanol plant that will be produce at full capacity 20 million litres of fuel grade ethanol and generate 9 mega watts of Power of biomass power. It is also hoped that the plant will further produce carbon dioxide gas which will be purified and then sold as food grade to bottling companies for use in carbonated drinks. And speaking at the handover ceremony monitored by ZBT, CEEC Director General, LIKANDO MUKUMBUTA, said that it was critical that Zambians are supported to fully participate in the economy at all levels and in all sectors, including strategic sectors such as mining and energy. Mr. MUKUMBUTA added that if Zambia is to fully benefit from its resources, local citizens should not only serve as employees in key industries but all participate in ownership so that profits can be retained in Zambia to grow the economy faster and to register reduction in poverty. Mr. SIMON BOTA, who is KUMIL ENERGY CHAIRMAN, said that his company is responding to the government call for the private sector to speed up industrialization and create jobs for Zambians especially in rural areas. He hopes that by pioneering the blending of ethanol into petrol, the pump price of fuel would reduce in Zambia and make it competitive within the Southern African region. The Construction of the US$50 million 650 Rural Health Posts Derailed!
The US$50 million project aimed at construction of 650 health posts countrywide has suffered major set backs and needs an additional US$12 million to proceed and complete the remaining works. Only about half of the total planned health posts have been completed Giving a ministerial statement in Parliament, Minister of Health, Dr. Chitalu Chilufya stated that only 327 structures out of the planned total of 650 health posts have been completed countrywide. Of the 327 structures completed, 275 have been handed over to the Ministry of Health and are fully functional facilities... Follow link for full story Daily Mail
PRISCILLA MWILA, Lusaka GOVERNMENT will raise US$13 million from the export of 100,000 metric tonnes of maize to East Africa and the Great Lakes Region.Food Reserve Agency (FRA) executive director Chola Kafwabulula said the agency was authorised to sell 100,000 metric tonnes of maize to any trader that has capacity to export. Mr Kafwabulula said at a joint press briefing with the Ministry of Agriculture yesterday that FRA received 42 applications from traders which represented a tonnage of 1,052,210. “We were authorised to sell 100,000 metric tonnes of maize. We received 42 applications from interested companies; 13 were rejected because they did not meet the criteria. “We have allocated maize to 29 companies of which 26 are Zambian while three are foreign. The maize to be exported is from the old stock,” he said. Mr Kafwabulula said FRA wants to open a market beyond the traditional export market to enable farmers to sell their excess maize after the agency buys the authorised 500,000 metric tonnes. And Minister of Agriculture Dora Siliya commended FRA for prioritising Zambian companies in allocating the maize. She said the ministry has given a policy direction to FRA to procure only 500,000 metric tonnes for strategic stocks. Ms Siliya said the agency has also been allowed to carry out transactions on a commercial basis. “Such initiatives are aimed at empowering Zambian exporters. I am impressed that majority of the selected companies are Zambian. The export season will continue for the next 12 months, especially to Kenya, to ensure that even excess maize is exported,” she said. And speaking at the same briefing, Minister of Finance Felix Mutati said Government will work with FRA and the private sector to create more markets for exports. He said Government will facilitate export of maize at exit points such as Nakonde and Kasumbalesa border posts to make the process favourable for the traders. Mr Mutati said Zambia should take advantage of the removal of import duty on Zambian maize in Kenya and export more to enhance revenue for the country. KALONDE NYATI, Lusaka
ZANACO Bank has set aside over K300 million for small and medium-scale enterprises (SMEs) this year to support various businesses that will in turn contribute to the economy. Once these funds are fully disbursed, it will spur SME-driven economic activities through business expansion, creation of more jobs, wealth and, ultimately, increased revenue to the treasury. Of the total amount, the bank has so far disbursed over K200 million to SMEs in the country, according to Zanaco chief commercial officer Lishala Situmbeko in a press response yesterday. Last week, Zanaco Bank managing director Henk Mulder said the firm currently has 100,000 SMEs on its loan book, demonstrating its commitment to drive the sector, which if fully supported can unlock the country’s economic potential. Mr Situmbeko said the loans range from short to medium-term facilities to support various sectors. “Our support to SMEs remains very solid and we affirm our commitment to helping Zambian SMEs grow through supplier and distributor financing where we focus on supporting various value chains,” he said. He also said the bank has increased its reach to SMEs through training and specialised resources in key areas, including Solwezi, the Copperbelt, Chipata, Kabwe and Kasama. The SMEs are being equipped with technical know-how to ensure that they are better able to manage and grow their businesses. “We also ensure that SMEs are better equipped to access our financing, know-how and services,” he said. Mr Situmbeko said the financial institution is also working with other organisations to accelerate support to SMEs citing Financial Sector Deepening (FSD) Zambia and the Nyamuka Zambia initiative. LUSAKA, July 20 (Xinhua) -- The Zambian government has launched a World Bank-funded project aimed at tackling some environmental damages caused by mining operations in mining areas across the southern African nation, state broadcaster reported on Thursday.
The 65-million U.S. dollar Zambia Mining Environmental Remediation and Improvement Project will also focus on reducing environmental health risks through localized interventions, according to the Zambia National Broadcasting Corporation. Mines Minister Felix Mutati, in remarks delivered during the launch of the project in the central town of Kabwe, which has been affected by years of lead mining, said stakeholders should support the project which was meant to protect the lives of people affected by mining activities. The project, he said, will address the historical environment and related social issues arising from mining as well as strengthen the capacity of regulatory agencies to ensure environmental protection and mitigations. The main objective of the project is to reduce the environmental health risks to the local population in critically polluted mining areas, he added. World Bank Group Country Manager Ina Ruthenberg said the project will be of great importance to Zambia as the country focuses on diversifying its economy. The project comes after the Copperbelt Environmental Project which was implemented from 2003 to 2011. Mining operations in Zambia have left a trail of environmental degradation in communities. NOMSA NKANA, Lusaka
ZAMBIA Chamber of Commerce and Industry (ZACCI) has proposed that Government reduces corporate tax from 35 percent to 25 percent in the 2018 national budget to make local goods competitive. ZACCI president Michael Nyirenda said the measure has minimal loss of revenue in the short term but with long-term benefits to the country. Mr Nyirenda said this at the 2018 Consultative National Budget submissions last week. “In the long term, the savings which will be made from the reduction in the corporate tax rate are likely to be re-invested in the economy and thus stimulating growth…[This will] result in more productive jobs being created,” he said. Mr Nyirenda also said this will create more revenue for Government and will also give Zambia competitive advantage in the region in attracting foreign direct investment (FDI). He said increased FDI means increased taxes and tax revenue to Government and also increased tax compliance. ZACCI also proposed that Government exempts up to K30, 000 annual income of micro, small medium enterprises (MSMEs) from turnover tax to provide for capital allowance relief to small and medium enterprises (SMEs) currently taxed at three percent gross turnover tax. Mr Nyirenda said this is because turnover tax punishes SMEs and treats them unfairly as business taxpayers, which is a breach of fairness and equity tax principles. “It also raises the cost of capital as it is effectively a tax on capital and burdens SMEs when they should be supported. “The relief given to SMEs will reduce the cost of doing business, free resources for reinvestment, minimise the burden of tax compliance and will lead to growth of SMEs with increased contribution to gross domestic product,” he said.  NOMSA NKANA, Lusaka
GOVERNMENT has assured the business community that it will consider further simplifying the amended value added tax (VAT) rule 18 to promote growth of the local export market. Minister of Finance Felix Mutati made this assurance to the private sector last week after receiving the 2018 budget proposals from various stakeholders. In May, Government made additional amendments to VAT rule 18, which requires that exporters of goods by air produce an airway bill as proof of export to qualify for refund from Zambia Revenue Authority (ZRA). But stakeholders feel that the rule disadvantages those exporting by other modes of transport such as road, railway and water. “We have heard your challenges that the additional amendment to the VAT rule 18 poses to the export business and Government is keen on simplifying it further,” Mr Mutati said. On tax exemptions, Mr Mutati said Government’s stance is to consider lowering the threshold where necessary rather than zero-rating. “How do you secure accountability [when you do not pay anything]? It must be a give and take situation. As Government, we will consider what we must tax you, whether give you exemptions if necessary or write off import duties,” he said. Mr Mutati said there is a lot that can be done to optimise the tax system so that it acts as a motivator of growth and not a choker of business. And Minister of Commerce, Trade and Industry Margaret Mwanakatwe said dialogue is necessary for Government to comprehend what the private sector expects. Commenting on tax policies and their effect on business, Ms Mwanakatwe said Government will not hesitate to drop any policy that does not promote private sector growth. On the multi-facility economic zones (MFEZs), Ms Mwanakatwe said Government will make policies to encourage small and medium-scale enterprises to set up businesses to provide support services to main industries. She said Government has also had challenges obtaining finances required for power in the MFEZs. “For instance, in the Lusaka South MFEZ, we need huge sums of money for infrastructure development and installation of power. “So what we’ve done with Ministry of Finance is to formulate a plan to work with companies that want to set up businesses in the zone to pay some money in advance,” she said. Ms Mwanakatwe said in future, Government will consider reducing tariffs as a tax incentive for companies to enable them recoup the money they paid up front. CHOMBA MUSIKA, Lusaka
THE Citizens’ Economic Empowerment Commission (CEEC) has disbursed a K1.4 million loan to Kumil Energy Limited, a Zambian company, to finance a feasibility and environmental impact assessment for the development of a renewable energy project in Mwansabomwe district. The project will produce ethanol from sugar cane and 20 million litres of fuel grade ethanol and generate nine megawatts of biomass power to cushion the power deficit the country is grappling with. The thermal power generation plant will create over 2,000 jobs when fully operational and 1,000 additional jobs for sugar cane out-growers. CEEC director-general Likando Mukumbuta said the funding of the feasibility and environmental impact assessment is a major step towards the successful implementation of the renewable energy project. Mr Mukumbuta said CEEC decided to fund the feasibility and environmental assessment in line with its quest to support Zambians and empower them to fully participate in various sectors of the economy such as mining and energy. He said this yesterday when Kumil Limited officials, led by the company’s chairman, Simon Bota, called on him. “This is historic because we must ensure that Zambians participate in the economy at all levels, including strategic areas such as mining and energy,” Mr Mukumbuta said. He said if Zambia is to fully benefit from its abundant natural resources, Zambians must not serve as employees in key industries but must take ownership so that profits can be retained in the country. “If profits are retained in the country, the nation’s economy will grow faster and we will register substantial poverty reduction,” Mr Mukumbuta said. He said the disbursement of the loan is timely because lack of capital for feasibility studies has been hampering local entrepreneurs’ quest to implement their projects. And Mr Bota said Kumil is heeding Government’s call for the private sector to accelerate industrialisation and job creation for Zambians, especially in rural areas. He said pioneering the blending of ethanol and fuel will substantially reduce the pump price of fuel and make Zambia an international competitive hub of commerce and industry. Mr Bota said the feasibility study and assessment will be concluded in six months while the full implementation of the project will take two years at a cost of US$436 million. Special address to the nation
By His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia and Commander-In-Chief of the Armed Forces 5th July, 2017 Fellow countrymen and women, As a country, we have enjoyed peace and tranquility since independence in 1964. Through this peace, we, as a people have been able to build this country to be in a position to provide education, health and other socio-economic amenities in order to ensure that each and every citizen is able to live a life as foreseen by our forefathers. In the last fifty-three (53) years since our Independence, Zambia has remained a beacon of peace at regional, continental and international levels. This peace we have enjoyed has not come by accident but through our collective responsibility as a people expressed in our motto of “One Zambia, One Nation”. This is emphasized in our national values and principles highlighted in our constitution namely; morality and ethics; patriotism and national unity; democracy and constitutionalism; human dignity, equity, social justice, equality and non-discrimination; good governance and integrity; and sustainable development. We acknowledge the supremacy of God Almighty and have declared the Republic a Christian nation while upholding a person’s right to freedom of conscience, belief or religion. These values and principles have helped us remain a unitary, multi-party and democratic sovereign state. Country men and women, It is saddening that the peace and tranquility we have cherished this long is slowly being eroded because of a few unpatriotic citizens who have decided to involve themselves in criminal activities thereby endangering the lives and properties of many citizens. The means to secure their livelihood, which in most cases comes with a lot of sacrifices is slowly being compromised in the recent past. In the past few months, the country has experienced unexplained fire out breaks and vandalism of strategic installations bordering on economic sabotage. Country men and women, You will recall that in August, 2016, Tambalala market in Bauleni in Lusaka was gutted. This was followed by the gutting of the Mongu Local Court in early 2017. In April, 2017, Luburma market was set ablaze. In the same month, a person was apprehended for attempting to set ablaze the intercity bus terminus in Lusaka. In a related event, four (4) youths were arrested outside the Lusaka Central Correctional facility with substances capable of causing a fire. On May 1, 2017, Kafue District Education Board offices were gutted and two (2) containers of petrol were found at the scene. On 1st June, 2017, 10, 000 households were affected in Ndola following the destruction of the ZESCO electricity pylons. This was followed by a similar act where citizens and industries serviced by the Kafue west - Lusaka west line were affected by the destruction of the ZESCO pylons. Just yesterday (July 4, 2017), Lusaka City market, the country’s largest market was gutted and property worth millions of kwacha was destroyed. Simultaneously, a fire erupted at Lusaka’s Misisi Township market whose target it would seem, was to damage the ZESCO pylons. Fellow countrymen and women, You will appreciate that the recent gutting of markets will have untold misery on the poor traders and their families whose livelihoods is largely dependent on the existence of the market. This, therefore, calls for Government to formulate intervening measures to alleviate their suffering. I wish to announce that a Committee of Ministers has been formed to be chaired by the Vice-President which in due course will provide details on the form and nature of assistance that will be provided to those affected. Apart from the Lusaka City market, I have also requested the Committee to superintend over the rebuilding of the markets that have been affected in a similar nature. I, therefore, call upon the business community, all well-meaning Zambians and residents to support this initiative in whatever form practical. In order to ensure transparency and accountability, all forms of financial support, material or otherwise will be coordinated through the Vice-President’s office of which details will be published shortly. Fellow countrymen and women, These events are not mere acts of spontaneous criminality but premeditated acts which if left unchecked could have serious socio-economic consequences capable of drawing the country backwards. As government, you the people have given us the mandate to preside over the affairs of this nation. Therefore, it is our duty to ensure that each and every person in this country enjoys the freedom and protection as enshrined in our constitution. Following these sad events, my Government has decided to invoke article 31 of the Republican Constitution which guides how a nation should deal with an existing situation which, if allowed to continue may lead to a State of Public Emergency. There is no doubt in my mind that the intentions of the perpetrators of these irresponsible actions is to make the country ungovernable. As President of this nation, it is my responsibility to respond accordingly to forestall this planned chaos and I will therefore not tolerate this lawlessness. As Government, we have repeatedly advised our nationals to desist from any irresponsible behaviour and criminality but it would appear that this has fallen on deaf ears. Therefore, practical measures as outlined tonight have had to be invoked. Fellow countrymen and women, By the powers vested in me by the Constitution of Zambia, I have issued a Statutory Instrument proclaiming that a situation exists which, if allowed to continue may lead to a State of Public Emergency. This will be tabled in the national assembly in line with article 31(2) for approval. It is my sincere hope that the Members of Parliament will rise to the occasion. This is not an easy decision to make, but in order to preserve peace, tranquility, safety of our citizens and national security, we had no choice but to take this decision given the events that have occurred in the recent past. The primary responsibility of Government is to protect life and property in our nation. I wish to emphasize that all law abiding citizens will not be impacted by this decision and should continue to go about their daily routines normally. I will ensure that the measures to be taken under this proclamation will not inconvenience law abiding citizens. Therefore, this proclamation should not instill fear among our citizens but instead provide a sense of comfort and security. In conclusion, I appeal to all citizens and the business community to cooperate with Government as this proclamation takes effect. We will continue to evaluate issues surrounding national security on a regular basis. Special address to the nation
By His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia and Commander-In-Chief of the Armed Forces 5th July, 201 Fellow countrymen and women, As a country, we have enjoyed peace and tranquility since independence in 1964. Through this peace, we, as a people have been able to build this country to be in a position to provide education, health and other socio-economic amenities in order to ensure that each and every citizen is able to live a life as foreseen by our forefathers. In the last fifty-three (53) years since our Independence, Zambia has remained a beacon of peace at regional, continental and international levels. This peace we have enjoyed has not come by accident but through our collective responsibility as a people expressed in our motto of “One Zambia, One Nation”. This is emphasized in our national values and principles highlighted in our constitution namely; morality and ethics; patriotism and national unity; democracy and constitutionalism; human dignity, equity, social justice, equality and non-discrimination; good governance and integrity; and sustainable development. We acknowledge the supremacy of God Almighty and have declared the Republic a Christian nation while upholding a person’s right to freedom of conscience, belief or religion. These values and principles have helped us remain a unitary, multi-party and democratic sovereign state. Country men and women, It is saddening that the peace and tranquility we have cherished this long is slowly being eroded because of a few unpatriotic citizens who have decided to involve themselves in criminal activities thereby endangering the lives and properties of many citizens. The means to secure their livelihood, which in most cases comes with a lot of sacrifices is slowly being compromised in the recent past. In the past few months, the country has experienced unexplained fire out breaks and vandalism of strategic installations bordering on economic sabotage. Country men and women, You will recall that in August, 2016, Tambalala market in Bauleni in Lusaka was gutted. This was followed by the gutting of the Mongu Local Court in early 2017. In April, 2017, Luburma market was set ablaze. In the same month, a person was apprehended for attempting to set ablaze the intercity bus terminus in Lusaka. In a related event, four (4) youths were arrested outside the Lusaka Central Correctional facility with substances capable of causing a fire. On May 1, 2017, Kafue District Education Board offices were gutted and two (2) containers of petrol were found at the scene. On 1st June, 2017, 10, 000 households were affected in Ndola following the destruction of the ZESCO electricity pylons. This was followed by a similar act where citizens and industries serviced by the Kafue west - Lusaka west line were affected by the destruction of the ZESCO pylons. Just yesterday (July 4, 2017), Lusaka City market, the country’s largest market was gutted and property worth millions of kwacha was destroyed. Simultaneously, a fire erupted at Lusaka’s Misisi Township market whose target it would seem, was to damage the ZESCO pylons. Fellow countrymen and women, You will appreciate that the recent gutting of markets will have untold misery on the poor traders and their families whose livelihoods is largely dependent on the existence of the market. This, therefore, calls for Government to formulate intervening measures to alleviate their suffering. I wish to announce that a Committee of Ministers has been formed to be chaired by the Vice-President which in due course will provide details on the form and nature of assistance that will be provided to those affected. Apart from the Lusaka City market, I have also requested the Committee to superintend over the rebuilding of the markets that have been affected in a similar nature. I, therefore, call upon the business community, all well-meaning Zambians and residents to support this initiative in whatever form practical. In order to ensure transparency and accountability, all forms of financial support, material or otherwise will be coordinated through the Vice-President’s office of which details will be published shortly. Fellow countrymen and women, These events are not mere acts of spontaneous criminality but premeditated acts which if left unchecked could have serious socio-economic consequences capable of drawing the country backwards. As government, you the people have given us the mandate to preside over the affairs of this nation. Therefore, it is our duty to ensure that each and every person in this country enjoys the freedom and protection as enshrined in our constitution. Following these sad events, my Government has decided to invoke article 31 of the Republican Constitution which guides how a nation should deal with an existing situation which, if allowed to continue may lead to a State of Public Emergency. There is no doubt in my mind that the intentions of the perpetrators of these irresponsible actions is to make the country ungovernable. As President of this nation, it is my responsibility to respond accordingly to forestall this planned chaos and I will therefore not tolerate this lawlessness. As Government, we have repeatedly advised our nationals to desist from any irresponsible behaviour and criminality but it would appear that this has fallen on deaf ears. Therefore, practical measures as outlined tonight have had to be invoked. Fellow countrymen and women, By the powers vested in me by the Constitution of Zambia, I have issued a Statutory Instrument proclaiming that a situation exists which, if allowed to continue may lead to a State of Public Emergency. This will be tabled in the national assembly in line with article 31(2) for approval. It is my sincere hope that the Members of Parliament will rise to the occasion. This is not an easy decision to make, but in order to preserve peace, tranquility, safety of our citizens and national security, we had no choice but to take this decision given the events that have occurred in the recent past. The primary responsibility of Government is to protect life and property in our nation. I wish to emphasize that all law abiding citizens will not be impacted by this decision and should continue to go about their daily routines normally. I will ensure that the measures to be taken under this proclamation will not inconvenience law abiding citizens. Therefore, this proclamation should not instill fear among our citizens but instead provide a sense of comfort and security. In conclusion, I appeal to all citizens and the business community to cooperate with Government as this proclamation takes effect. We will continue to evaluate issues surrounding national security on a regular basis. The Zambia Development Agency (ZDA) was established in 2006 `under Act No. 11 of 2006 and became operational in January 2007 after the amalgamation of five statutory bodies that previously operated independently. The primary objective of the Agency is to foster economic growth and development by promoting trade and investment in Zambia through an efficient, effective and coordinated private sector led economic strategy.
Its mandate includes facilitation of the economic development of Zambia by promoting investment and competitiveness of businesses and promoting exports from the country. It has the task of working with relevant authorities to reduce the cost of doing business in the country by simplifying the process of various formalities such as licensing. The Agency’s aspiration is derived from the Government’s long term vision of creating a prosperous middle income nation by 2030 that feeds into the Agency’s goal of contributing to the creation of wealth and one million jobs by 2020. In other words, the Zambia Development Agency is the gate way to the Zambian economy. The business environment in Zambia is almost second to none in the sub region of Southern Africa with vast investment and trade opportunities across sectors. In addition, Zambia has been a peaceful and democratic country for more than 50 years and has enjoyed both social and political stability as well as a healthy macroeconomic environment, with economic growth averaging around 6 percent per annum since 2003 which is another hard to beat record in the sub-region. In terms of the business environment, Zambia has been ranked favorably by different international ranking institutions as a result of the various business reforms that the country has implemented. Notable rankings in 2016 include the World Bank which ranked Zambia 5th in COMESA in the easy of doing business, the World Economic Forum ranked the country 11th most competitive country in Africa, the Africa Investment Index by Quantum Global Research ranked Zambia 5th most attractive economy for investments flowing into the African continent and Forbes ranked the country 9th best country among 54 African countries in doing business. In addition to the favorable business environment, Zambia has unlimited investment opportunities in the identified priority sectors which are agriculture and agro processing sectors, tourism, manufacturing, energy and infrastructure development sectors. Other productive sectors presenting investment opportunities are mining, information communication technology and real estate development. The country also has investment opportunities in other sector sectors such as education, health, service, finance and transport. And government through the ZDA provides fiscal and non-fiscal incentives to investors that invest in the priority sector and located in either a Multi-facility economic Zone, a rural area or an industrial park. The investment should be above the minimum threshold of US$ 500,000. The fiscal incentives include zero percent tax on profits made by companies in the priority Sector for a period of 5 years and zero percent tax rate on dividends of companies operating in the MFEZ and in a priority sector for a period of five years from the year of first declaration of dividends. And lastly for the fiscal incentives, there will be Zero percent import duty rate on capital equipment for five years. The non-fiscal incentives include the Investment Promotion and Protection Agreement (IPPA) where the ZDA guarantees investments on behalf of government and offers free facilitation of permit application as well as investment licenses, land acquisition and other utilities. Beyond the vast investment opportunities, Zambia has a vast market base for its produce which include the Southern Africa Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), the Tripartite Free Trade Area which represents an integrated market of 26 countries with a combined population of approximately 632 million people which is 57% of Africa’s population. The European Union and the American markets through the Africa Growth Opportunity Act (AGOA). The favorable business environment, the unlimited investment opportunities, fiscal and non-fiscal incentives, the ever growing domestic and regional market and more just makes Zambia the best destination for your investment in the Africa. I trust you will find our Honorary Consulate’s newsletter on Zambia’s investment climate very informative. Patrick D. Chisanga Director General ZAMBIA DEVELOPMENT AGENCY Foreword by HE President Edgar Lungu on the launch of the Seventh National Development Plan (7NDP)7/1/2017
Zambia remains committed to the socio-economic development planning of the country as reflected by the return to development planning in 2005. The Seventh National Development Plan (7NDP) for the period 2017- 2021 is the successor to the Revised Sixth National Development Plan, 2013-2016 (R-SNDP) following its expiry in December 2016. The Plan, like the three national development plans (NDPs) that preceded it, is aimed at attaining the long-term objectives as outlined in the Vision 2030 of becoming a “prosperous middle-income country by 2030”. It builds on the achievements and lessons learnt during the implementation of the previous NDPs.
The Seventh National Development Plan departs from sectoral-based planning to an integrated (multi-sectoral) development approach under the theme “Accelerating development efforts towards the Vision 2030 without leaving anyone behind”. The integrated approach recognises the multi-faceted and interlinked nature of sustainable development which calls for interventions to be tackled simultaneously through a coordinated approach to implementing development programmes. Through the use of the integrated (multi-sectoral) development approach, the 7NDP has the advantage of considering the comparative and competitive advantages of the regions in allocation of resources towards implementation of the multi-sectoral strategies and setting in motion a series of mutually supporting activities in different sectors with the general objective of delivering the national agenda. Ultimately it is envisaged that the integrated development approach in the 7NDP will help change the focus of government line ministries and provinces from competing with each other to coordinated harmonisation (working together). The goal of the 7NDP is to create a diversified and resilient economy for sustained growth and socio-economic transformation driven, among others, by agriculture. Furthermore, this Plan responds to the Smart Zambia transformation agenda 2064 and embeds in it the economic recovery necessary for the actualisation of a Smart Zambia. This is in support of the UN 2030 Agenda for Sustainable Development and the African Union Agenda 2063. Distinctively, the realisation of this goal will be achieved through the contribution of a number of developmental outcomes and this makes the 7NDP an effective guide towards Zambia's aspirations of being a developed middle-income nation. The key outcomes include economic diversification and job creation; poverty and vulnerability reduction; reduced developmental inequalities; enhanced human development; and an enhanced governance environment for a diversified and inclusive economy. The Government recognises that to deliver inclusive and equitable development to the citizens requires concerted efforts and commitment of all stakeholders. I would therefore like to urge all Zambians from different walks of life to be fully committed and participate in the implementation of this Plan. I further call upon the National Development Coordinating Committee, Cluster Advisory Groups, Provincial Development Coordinating Committees, District Development Coordinating Committees, Non-Governmental Organisations, Civil Society Organisations, Faith-based Organisations and the ordinary Zambians to be pillars in the implementation of the Plan. Our Cooperating Partners have always been supportive of the development agenda of the country and the Government will continue to appreciate their valuable contributions. The Government is hopeful that this cooperation will grow to even greater heights as we implement the 7NDP. I am convinced that through our joint efforts during the next five years, we will be able to achieve the objectives of the 7NDP. I have confidence in Zambia's ability to implement this Plan efficiently and effectively. Edgar Chagwa Lungu PRESIDENT OF THE REPUBLIC OF ZAMBIA |
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