Distinguished Chairman,

Distinguished Guests, Ladies and Gentlemen,

I am happy to be one of the participants in this year’s Fair for Investment and Trade in this beautiful coastal City, Xiamen. I would not be complete if I do not start by expressing my delegation’s gratitude to the government and people of China for the warm reception and hospitality extended to my delegation since our arrival two 92) days ago.

Allow me Chairperson to refer to the theme of the Fair this year ”Introducing FDI” and Going Global” and a channel for promoting two-way investment and trade. This year’s theme Chairperson is more relevant to African countries that are participating at the Fair because it stresses and underlines the mutuality and importance of globalisation.

For those who may not have information about Zambia, it is located in the heart of Africa and belongs to two (2) regional economic groupings, namely, SADC and COMESA. Zambia is rich in natural resources that include vast agricultural lands, tourism, rich mineral deposits such as copper, cobalt, iron ore, manganese, gemstones such as emeralds, aquamarine and amethyst. It is also home to one of the seven (7) wonders of the world, the Mighty Victoria Falls.

In size, Zambia roughly is about 752 000 square kilometres and about 50% of the population live in urban areas with relatively developed infrastructure. With a vast landmass relative to its small population of under eleven million, Zambia’s sparsely populated land offers a virtual of possibilities for agriculture, timber, mining and tourism based on wild life. Zambia also has the enviable and strategic position of being surrounded by eight neighbouring countries in south-east and central Africa.

Regarding Trade Agreements and Investment Treaties, I wish to note, Chairperson, that Zambia has signed a number of them with many countries and continues to discuss and negotiate with those that have not signed. For example, Zambia and China have signed an Investment Promotion and protection Agreement (IPPA), which is awaiting ratification. This Chairperson ensures open access and/or preferential treatment to:

14 member SADC countries;

23 member COMESA countries;

duty free and quota free AGOA market;

ACP/Contonou Agreements provides for preferential access to the25 member countries of the European Union; and

double taxation treaties have been signed with a number of countries while others are still under negotiations.

Chairperson, Zambia’s major exports in 2006 included:

copper;

cobalt;

sugar;

cement; and

non-traditional exports.

Why should Chinese and other world-class companies choose to invest in Zambia?

stable macro-economic environment;

strategic location as the centre of Southern, Eastern and Central Africa, surrounded by eight neighbouring countries;

attractive and competitive incentive packages for agricultre, tourism, manufacturing, mining, timber, textiles and energy sector;

abundant land, minerals, and natural resources;

attractive and competitive incentive packages for priority products as outlined in the ZDA Act;

preferential access to SADC, COMESA, AGOA and the European market;

high reservoir of skills, low electricity costs and wages; and

full and unrestricted repartriation of profits and dividends.  

At present, there are a number of Chinese Firms operating in Zambia such as NFC Africa Limited, Zambia China Mulungushi Textiles

Limited, Bank of China, agriculture farms, etc not to mention a number of small sized companies and individually operated enterprises. A Multi Facility Economic Zone (MFEZ) is in the process of being developed under the direction of CNMC, a Chinese firm at Chambishi.

Zambia has a package of incentives aimed specifically at establishing a profitable environment for increased domestic industrial growth, export promotion, the development of market-oriented production management and private sector development. Some of the incentives are, income tax allowances, income tax deductions, investment guarantees and miscellaneous for those who invest in priority products/sectors and/or  in major projects as outlined in the ZDA Act No. 11 of 2006.

Finally, I wish to inform this distinguished gathering that the Government of the Republic of Zambia launched a Private Sector Development Initiative in June, 2004. The main objective of the Private Sector Development Initiative is to reform and to create conducive environment for a vibrant private sector.

The Reform Programme has laid a solid foundation for faster, sustained and private sector led economic growth by implementing a comprehensive action plan for enhancing the business and investment climate, and restoring investor confidence.

The Private Sector Development Initiative was developed using a highly consultative process that took into account an extensive review of previous studies and recommendations relating to private sector development. In that connection, the public/private sectors jointly engaged both bilateral and multilateral organizations to secure their understanding on the matter and roles they are expected to perform and ensure successful implementation.

The Private Sector Development Initiative provides the blueprint for creating the enabling environment for a vibrant private sector and accelerated economic growth. As a consequence, both the public and the private sector speak with one voice on this matter.

In terms of priority designation, the Private Sector Development Initiative stresses and underlines the importance of improving access to export markets, increasing export-oriented production, local empowerment, private investment in infrastructure, and stronger public agencies.

With these few remarks, I wish to take this opportunity to invite Chinese companies to feel free and come to Zambia and invest in the priority sectors and indeed in any of the sectors.  We in Zambia do assure all investors both local and foreign that their investments are secure and will not be nationalized by the state. About ten (10) years ago, the country embraced the principle of liberalization and privatisation. To-date, we have not looked back and we shall continue to make the private sector to be the engine of economic growth and development.

I thank you for according me an opportunity to make this short presentation to you.