Zambia-China economic, trade zone attracts $1bn
By Chiwoyu Sinyangwe
Wed 07 Mar. 2012, 12:00 CAT
THE Zambia-China Economic and Trade Cooperation Zone has attracted 17 companies and a total investment of nearly U$1 billion since inception five years ago, according to Zambia Development Agency.
ZDA says resident companies of the economic zone situated in Chambishi on the Copperbelt have generated nearly
US $500 million in
taxes and
sales revenues of
US $4.35 billion.
This is according to officials during a ceremony on Feb 3 in Beijing to mark the zone's fifth anniversary.
Founded by China Nonferrous Metal Mining (Group) Co Ltd (CNMC), the zone is "another milestone in ties between the two countries following the TAZARA Railway" built by China 40 years ago to link Zambia with Tanzania, said China's vice-foreign minister Zhai Jun.
The zone is the country's first multipurpose economic zone and China's first business cooperation area in Africa.
The two industrial parks in the zone have different functions to meet varied demands.
Its 11.58-square-kilometre Chambishi Park serves a copper mine of the same name and its major industries included metal processing and related services.
Lusaka Park, which covers 5.7 square-kilometre with Kenneth Kaunda International Airport nearby, is focused on trading, logistics and real estate.
The zone's developer CNMC started business in Zambia in 1998 and is now the largest Chinese investor in the nation.
It has nine companies in the country whose combined investment now exceeds US$2 billion. The operations have created more than 12,500 local jobs.
Luo Tao, CNMC general manager, said the cooperation zone was the best symbol of the "all-weather friendship" between China and Zambia.
"Building economic cooperation zones overseas was a brand new attempt and also a systematic project," Luo was quoted in the ZDA monthly newsletter. "The zone had a good start, but we still have a long way ahead of us."
The zone's development model emphasises energy conservation and eco-friendliness using technologies developed by leading Chinese universities.
Resource losses at the copper mine have been greatly reduced, while the smelting cost is about 30 per cent lower than other local companies.
CNMC is one of the earliest Chinese companies in the nonferrous metals industry to adopt a "go-abroad" policy, and one of the most successful.
It has business in more than 30 countries around the world including the United Kingdom, Australia and Africa.
Labels: CHINA, ECONOMIC ZONES, FREE TRADE AREA, MFEZ, ZDA
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COMMENT - Interesting. When it comes to Chinese investment, the IMF urges caution about giving away tax incentives. Where were they for the Development Agreements to western mining companies? Or have they learned a lesson?
IMF urges caution on economic zones
Written by Kabanda Chulu
Tuesday, December 09, 2008 12:11:18 AM
THE International Monetary Fund (IMF) has urged the Zambian government to
exercise caution on incentives associated with the Multi Facility Economic Zones (MFEZ) because
they will erode the tax base.
Commenting on Zambia's intention to set up economic zones in various towns around the country, the IMF mission to Zambia stated that targeted tax incentives for investments could be appropriate under special circumstances.
"Inefficient use of tax incentives, in particular tax holidays, may entail significant costs, therefore, great care needs to be taken to ensure that such incentives associated with the MFEZ do not erode the tax base over time and in this respect, the monitoring and reporting of tax expenditure will be helpful," it stated.
Since last year, the government has declared intentions of creating the town of Chambishi as an MFEZ where more than US$800 million worth of Chinese investments would be pumped in the area without paying any taxes. Also two areas in Lusaka, one near the International Airport and another south of Chilenje, have been identified as MFEZ, and more recently, the town of Solwezi was classified as an MFEZ.
The IMF mission also observed that economic prospects in the country were looking favourable because of strengthened macroeconomic policies.
"Economic prospects are looking favourable and real gross domestic product (GDP) is projected to grow by about seven per cent and depending on the quality and extent of the implementation of the Fifth National Development Plan, growth can still be higher," the IMF stated. "However, sustaining robust growth hinges on maintaining macroeconomic stability and making use of public resources and undertaking the improvements in infrastructure and financial and private sector reforms which are essential to enhance productivity and competitiveness."
The IMF mission to Zambia is based in the United States and it is headed by Francesco Caramazza. The mission was recently in the country and held discussions with the government relating to the reviews of Zambia's three-year economic programme supported by IMF under its Poverty Reduction and Growth Facility (PRGF).
The mission also reviewed economic and financial developments and discussed Zambia’s economic performance in 2007 and policies and prospects for 2009. The mission also met with the representatives of the private sector, civil society and various cooperating partners.
Labels: ECONOMIC ZONES, IMF, MFEZ
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Govt declares Solwezi as an economic zone
December 3, 2008
Government has declared Solwezi District as an economic zone. Commerce ,Trade and Industry Minister Felix Mutati said this in Solwezi, today, after touring Africa’s largest Copper mine at Lumwana.
Mr Mutati said the the declaration of Solwezi district as an economic zone comes after the increased economic activities in the Northwestern Province, particularly the mine activities.
He said it was government’s hope that the economic zone would help increase direct tax and more employment activities for the local people and beyond.
Government has declared a number of economic zones in the country like the Chambishi and the Lusaka economic zones with the help of bilateral partners like China to boost economic activities in Zambia.
On Lumwana Mines, Mr Mutati said the mine had brought industrialization in the province and the neighbouring Copper belt Province as it would help boost the economy of the nation.
He particularly noted the Zambia Electricity Supply Corporation (ZESCO)’s investment in supplying power to the mines saying the installation of power to the mine would speed up the processing of the copper ore rather than manually.
And the mine extracted copper ore which had 41 percent pure copper for the first time the processing plant was installed 12 year ago.
Lumwana Mine managing Director Harry Micheal told Mr Mutati that the copper concentrate mined today had 41 percent copper adding that his team was targeting to mine 45 percent of copper ore.
ZANIS/VP/ENDS/MM
Labels: ECONOMIC ZONES, FELIX MUTATI, NORTHWESTERN PROVINCE, SOLWEZI COUNCIL
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Chinese property rights protected, State assures visiting minister
By Times Reporter
GOVERNMENT has assured visiting Chinese commerce vice- minister, Gao Hucheng, that the Zambian Government will protect property rights of Chinese investors. Commerce Trade and Industry Minister, Felix Mutati, said yesterday when Mr Gao called on him that the two countries needed to expand economic relations by increasing the number of Chinese companies in Zambia from 200.
He said on its part, the Zambian Government would support investing companies with conducive policies that would ensure the growth of the economic relations.
Mr Mutati said Zambia was happy that the Chinese government was constructing an economic zone in Chambishi while another one would be set up in Lusaka.
“For the economic zone in Chambishi US$250 million has already been spent in a project that will cost $900 with capacity to create over 600 jobs,” he said.
He said the Government was grateful and indebted to China for deciding to locate the first of the five trade and economic cooperation zones in Zambia at Chambishi.
He said for Lusaka, there were also plans to construct an airport hub to connect Lusaka to neighbouring countries also linking China to the region especially that Zambia was surrounded by eight countries.
Mr Mutati said the companies constructing economic zones should be able to access loans for them to succeed and encourage others.
Mr Gao said Zambia was the first country in the region to establish economic ties with China and that his country was satisfied with the expansion in cooperation.
He said Chinese companies wanted to invest in Zambia because it was stable and had a conducive economic environment although there was need for increased communication by business sectors in both countries.
He encouraged the Zambian business community to buy Chinese products because of the durability and low prices while the Chinese business community should also buy Zambia’s resources.
The visiting vice-minister said his government would help in establishing economic zones and if they succeeded, more Chinese companies would invest in Zambia.
He added that China would construct rural schools, a hospital, malaria centre and agricultural centre for Zambians to improve on their farming.
He announced that 40 million RMB ($5 million) has been given to Zambia as a grant for use for any purpose to be identified by the Government.
Earlier on arrival at the Lusaka International Airport, Mr Gao said his visit to Zambia would enable the Chinese and the Zambian governments to discuss possible areas of economic corporation particularly in the mining and agriculture sector.
He told journalists that his trip to Zambia would further strengthen the pragmatic corporation that existed between China and Zambia as well as accord the Chinese government an opportunity to study Zambia’s investment opportunities.
He stated that the visit to Zambia was an opportunity for Zambian entrepreneurs to showcase their products to the Chinese business delegation that arrived in the country on Saturday.
Mr Gao said that the Chinese government would allow Zambians to export duty free different products to China mainly minerals and agricultural products.
And in his welcoming remarks, director of trade in the ministry of Commerce Trade and Industry, Siazonga Siakalenga said Mr Gao had come at a right time when Zambia had already started benefiting from the China-Africa Corporation Facility.
Mr Gao is also expected to tour the Chambishi Economic Zone in Chambishi.
On Saturday, a 20-member Chinese delegation arrived in Zambia ahead of the minister.
Labels: CHINA, ECONOMIC ZONES, FDI, FELIX MUTATI
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I don’t belong to Sata's political comedy - Levy
By Noel Sichalwe
Sunday February 25, 2007 [02:00]
PRESIDENT Levy Mwanawasa yesterday said he did not belong to Michael Sata's league of political comedy. And President Mwanawasa has disclosed that African leaders have urged developed countries to set up processing plants in their countries as a way of adding value to their raw materials. President Mwanawasa said this when answering questions from journalists on arrival at Lusaka International Airport from the France-Africa summit in Cannes, France.
Asked for his comment on Patriotic Front president Michael Sata's statement that he should resign on medical grounds, President Mwanawasa said: "I do not belong to a league of Sata's political comedy. I can't respond to that question." President Mwanawasa who made a detour to London for medical review further said he felt energised. The summit in the French resort city of Cannes was held from February 17 to 19. However, after it ended, President Mwanawasa passed through London for medical review. "I am happy to be back," President Mwanawasa said. "I had to go through medical check up. I am feeling very energised."
President Mwanawasa's health was subjected to intense debate and became a source of national concern after government failed to give sufficient details when he was struck by a mild stroke in March last year. His mild stroke for which he was admitted to a London hospital for three weeks was further a subject of political discourse during the just-ended elections. On the summit, President Mwanawasa said African leaders discussed possible ways of benefiting from the raw materials that were exported from Africa to developed countries.
He said the African leaders have since urged the summit that developed countries should set up processing plants in African countries in order to add value to their resources. President Mwanawasa yesterday arrived around 06:56 hours aboard a British Airways flight accompanied by his wife Maureen and other government officials. He was welcomed by senior government officials and MMD cadres who woke up at dawn to sing and dance at the airport.
Labels: ECONOMIC ZONES, MWANAWASA, SATA
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Govt to create more economic zones, reveals Chilipamushi
By Joan Chirwa
Saturday February 24, 2007 [02:00]
GOVERNMENT will create more economic zones even for investors from Taiwan if it receives enquiries from that country, commerce permanent secretary Davidson Chilipamushi has said. During a private sector discussion meeting organised by the Economics Association of Zambia held last Tuesday, Chilipamushi said government had created the economic zones, the concept also included in the Zambia Development Agency (ZDA), as an engine for job creation.
“Government has created the economic zones and this concept has been included in the ZDA,” Chilipamushi said. “We have one in Chambishi which has been given to Chinese investors and we are designing one in Lusaka which will be established by Malaysian investors. Government will create more of these economic zones once it gets enquiries from investors from other countries, including those from Taiwan.”
Chilipamushi said government had already received an enquiry from an investor who wanted to turn the Ndola Refinery into a gemstone industry.
“Economic zones are able to attract sustainable development in the country if they are given enough attention. The private sector must also take this whole programme with a clear vision,” Chilipamushi said. “We cannot be looking at potential wealth without exploiting it. It is not government’s responsibility alone to create jobs, government’s duty is to create a good political and economic environment to encourage investments and job creation.”
Government, through the Ministry of Commerce Trade and Industry has created two economic zones, one in Chambishi and another in Lusaka, for Chinese and Malaysian investors respectively, as deliberate growth facilities aimed at creating jobs for Zambians.
Private Sector Development Association (PSDA) chairperson Yusuf Dodia hoped that Zambians would be involved in the development of the two economic zones while following the laid down procedures of the ZDA Act.
Dodia however said there must be a proper board and management of the ZDA before Chinese investors could start developing the Chambishi economic zones.
“We need to know how it is going to be done and not a situation where we will have Chinese investors doing things on their own,” said Dodia.
ZDA currently has an interim board in place and a provisional management, but government announced that the institution is now fully operational.
The creation of the agency is aimed at easing business operations in the country, where investors will be able to acquire investment licenses from one institution.
Labels: ECONOMIC ZONES
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