Investors lack interest in investment promotion incentives, says Mutati

Investors lack interest in investment promotion incentives, says Mutati
Written by Florence Bupe
Wednesday, March 25, 2009 3:11:32 PM

COMMERCE minister Felix Mutati has bemoaned the lack of interest by local investors to access investment promotion incentives being offered by government through the Zambia Development Agency (ZDA).

Speaking at the signing ceremony of an Investment Promotion and Protection Agreement (IPPA) between government and Zamanita Limited on Monday, Mutati said there were inadequate attempts by local investors to access incentives for the expansion of their businesses.

"The incentives we are offering to foreign investors are not different from what we're offering to our local investors. Sadly, most local investors don't attempt to secure these incentives," he said.

Mutati hailed Zamanita for its efforts in expanding operations through diversification, and also for empowering Zambians through employment.

The company signed an IPPA valued at US $27 million.

Mutati explained that the signing of IPPAs with various companies was part of government's strategy to enhance the investment climate.

Zamanita has over US $200 million investments in Zambia, and is one of the largest agro- processing companies in southern Africa.

And ZDA chairperson Luke Mbewe said the investment by Zamanita would significantly support the agriculture and manufacturing sectors.

"In terms of benefits, this investment will result in the creation of over 500 jobs, small-scale farmers will be involved to produce oil seeds," he said.

Mbewe also expressed optimism that local investment could significantly save the country's foreign exchange, as well as earn additional foreign currency.

Zamanita chairperson Dr Jacob Mwanza emphasised the need for increased value addition to locally manufactured products.