JAPAN and the WORLD Magazine OCTOBER ISSUE 2015 #Issue 13 | Page 65

THE WORLD
oriented policies, with the country becoming
increasingly integrated in the global economy.
This has been done through the privatization
of state enterprises, removal of unnecessary
controls, deregulation of interest and foreign
exchange rates, reduction of tariffs, strengthening
of the financial sector, and reforms on policies of
repatriation of tax profits, dividends and capital.
In 2010 the World Bank named Zambia as one
of the world’s fastest economically reforming
countries. The headquarters of COMESA are
based in the capital of Lusaka.
TRADE
Barriers to trade have been substantially
reduced; export licenses are merely a formality,
while import controls are maintained solely
for statistical purposes. The main trade policy
instrument is done through customs duties,
which have even been reduced to support private
sector growth and export competitiveness.
Although the country’s main exports remain
metals and minerals, particularly copper and
cobalt, emphasis is also on non-traditional
exports such as vegetables, flowers, cotton,
tobacco, cement and textiles. Major imports
include crude oil, mining equipment, machinery,
iron, steel, vehicles, and transport equipment.
Zambia’s export market is buoyed by the
country’s membership in regional organisations
such as the Common Market for Eastern and
Southern Africa (COMESA) and the Southern
African Development Community (SADC).
Zambia’s participation in international trade
has also boosted the country’s competitiveness
in global trade. Currently, the European Union
countries, China, South Africa, Democratic
Republic of Congo, Kuwait, United Arab
Emirates, India, Japan and the USA remain
Zambia’s major trading partners.
INVESTMENT
cooling facilities, and in automobiles. Zambia
is one of the world’s largest cobalt producers,
supplying 20% of the world’s cobalt. Copper
and cobalt together represent 80% of Zambia’s
export earnings, and contribute over 10 per
cent to the country’s Gross Domestic Product.
In addition to huge copper and cobalt reserves,
Zambia possesses a variety of lead, zinc and
precious and semi-precious minerals such as
emeralds, amethyst, aquamarine, diamonds
and gold. Deposits are marble, granite, ferrous
metals, clay, limestone, iron and phosphate
also remain underexploited.
World-renowned mining companies from
Canada, Australia, China, UK, South Africa and
USA are involved in mining and prospecting
operations in Zambia.
ZAMBIA
for hydro-electric power generation, supply and
distribution. Investment in the energy sector
has been slow and existing power generation
does not match with current demand as a result
of increased mining activities on the Copperbelt
Province in recent years. The problem has been
aggravated by the ongoing costly rehabilitation
of existing power plants. Currently the country’s
hydropower source potential stands at an
estimated 6,000 Mega Watts (MW) while current
production is only 1,786 MW resulting in a very
big shortfall. With this deficit in power generation,
the country requires massive investment in
the energy sector. The Zambian Government
is therefore looking for serious partners and
companies which are ready to invest in this sector.
2- AGRICULTURE
Zambia has very good arable land for both extensive
and intensive cultivation of various crops. Some
56% of Zambia’s total land area is available for
agricultural production and only about one sixth
of total arable lan d is under cultivation mostly by
small-scale farmers. Much of the available land for
agriculture is near urban areas which are close to
transport links for accessing local and international
markets. Good rainfall, favorable temperature, rich
soils, and abundant sunshine make agriculture
a very attractive sector for investment in Zambia.
Special incentives also exist for those intending to
invest in this sector.
Investment prospects abound in the growing of
wheat, sugar, coffee, cotton, tobacco, vegetables,
flowers and maize as well as livestock (such as
cattle, poultry, sheep, and pigs), dairy farming and
fisheries. Fertilizer and farm equipment supply
and production also have significant potential.
3- ENERGY
With its vast water resources and coal reserves,
Zambia offers abundant investment opportunities
Geographical
position of Zambia
in the SADC region.
4- MANUFACTURING
Manufacturing is one of the top performers
and a priority growth sector in the Zambian
economy and contributes about 11% to the
national Gross Domestic Product and 10% to
employment. Manufacturing in Zambia is one
of the most attractive sectors for investment
as it has all the vital required elements in
place such as raw materials, required labour
force, abundant land and a good banking
and financial system. Measures have been
put in place to support growth within the
Zambia’s stable macro-economic stability—a
conducive and enabling environment for
private sector and industrial growth, political
stability, peace and tranquility is the hallmark
for the country’s positive investment climate.
The cost of doing business has been reduced
significantly while the country has one of the
most open economies on the continent.
Specific investment opportunities exist in the
following areas:
1- MINING
Zambia has vast mineral reserves with an
estimated 10% of the world’s known reserves
of copper which is exported to China, USA,
UK, Japan, Italy, India, Thailand and some
other EU and Asian countries. Around the
world copper is used for electrical wiring,
computer chips, in plumbing, heating and
JAPAN AND THE WORLD MAGAZINE
Japanese business delegation to Zambia at State House in Lusaka after meeting the
President of the Republic of Zambia , Mr. Edgar Chagwa Lungu.
OCTOBER 2015 // 64