Maravi

Japan launches direct investment in Zambia

Japan launches direct investment in Zambia
By Mutale Kapekele
Fri 03 June 2011, 08:40 CAT

JAPAN has launched its first-ever major foreign direct investment into Zambia
through Hitachi Construction Machinery’s re-manufacturing factory whose
construction commenced yesterday.

President Rupiah Banda, who attended the ground breaking ceremony to mark the
commencement of the Hitachi Construction Machinery (HCM) re-manufacturing
factory in Lusaka, received an excavator from the company as a gift.

HCM is the largest manufacturer of construction, mining and earth-moving
equipment in the world and boasts of a global presence.

In his speech at the occasion, President Banda said the US$ 15 million
investment into the construction phase of the project was evidence that Zambia
was still an attractive business destination.

President Banda said it was exciting that Hitachi had picked Zambia as a
regional hub for its products.

“If this project succeeds, the company shall undertake an expansion programme
that will extend their services to other major industrial entities in the
region,” President Banda said. “I am made to understand that Zambia and the
entire region have never had the kind of technology Hitachi is proposing.

With this development, I am certain that Zambia shall become the front runner for earth moving equipment parts in the region. This project will benefit the
country through job creation and transfer of technology.”

He said although Zambia enjoyed a warm and cordial relationship with Japan, the
level of investments from the latter still remained low and that the coming of
Hitachi could attract other Japanese companies into the country.

“Zambia still offers huge investment opportunities in the tourism, agriculture,
manufacturing, mining and other sectors,” said President Banda. “In addition,
the multi-facility economic zones that Zambia is currently developing offer
opportunities for value addition activities. I wish to encourage Japanese
investors to tap into this great potential.”

Speaking earlier, Japanese Ambassador to Zambia Akio Egawa described Hitachi’s
coming to Zambia as a memorable moment. Ambassador Egawa said although Japan
currently faced major economic and social challenges presented by the earthquake
and tsunami disaster, it will still continue to assist Zambia in every possible
way.

And Hitachi vice-president Yukio Arima asked for continued government support
and said his company had passion and strong will to invest in Zambia.

Labels: FDI, JAPAN

posted by MrK @ 11:05 PM