By Ben Kangwa
Minister of Commerce, Trade
and Industry Robert Sichinga will lead a high powered delegation of government
and private sector delegation on a five city trade mission to the United States
of America in June around the AGOA Forum period. The goal is to introduce
Zambian investment opportunities to the US private sector.
The delegation will visit
Washington DC, Cincinnati, Houston, Atlanta and Boston and will focus on
energy, infrastructure, agriculture, mining and manufacturing.
Recently during a
tele-conference that attracted over 50 business people from the United States
of America, US Ambassador to Zambia Mark Storella first observed that, “ Zambia
is a country whose time has come and American companies who seek to enter
Zambia will push on an open door.” The conference was held on 31st
May, 2012.
On the same platform, Zambia’s Ambassador to the United States,
Mrs. Sheila Siwela reinforced Ambassador Storella’s message that Zambia is open
for business and that Zambian companies were keen to partner with American
business.
She encouraged American
businesses to reach out to the Zambian Embassy in Washington DC to further
explore opportunities for trade and investment in Zambia.
Ambassador Storella then noted
that Commercial Diplomacy was front and center of the US global engagement.
He went on to spell out Zambia’s
economic history to his audience as a “democratic, peaceful and stable
country.”
“It is blessed with natural
resources, abundant fertile land, and friendly and engaging people. In many
respects, it is the positive aspects of Zambia, its democracy and its economic
results that keep the country off the news and under the radar of Americans and
American businesses,” he added
Ambassador Storella further
told his audience that for 12 straight years, Zambia has had a positive
economic growth including six per cent average growth over the past eight years
and that more than seven per cent was expected for 2012.
Other issues covered during
the conference included the role of the Zambia Development Agency in attracting
investment to Zambia, information on mining, agriculture and tourism.
In his closing remarks, the
American Ambassador said he looked forward to continued strong economic ties in
both trade and investment between the USA and Zambia.
He said the USA was
committed to spurring economic growth and creating jobs by promoting trade and
investment opportunities in Zambia to American businesses.
“US-Zambia bilateral trade
more than doubled last year, and we are on the crusp of exciting potential
American investments in and transactions with Zambia,” he added.
He was also pleased to note
that Zambia will be included in a two country trade mission with South Africa
led by US Under Secretary of Commerce Francisco Sanchez planned for November
2012.
The Question and Answer
portion of the tele-conference included questions , among others, related to
Wireless Telecoms development in the rural areas.
Political-Economic Chief Tim
Smith, Economic-Commercial Officer Phil Nerving, Commercial Officer Srini
Seetharahm and Commercial Specialist Vedruna Santana were at hand to provide
support answers to Ambassador Storella.
The US Embassy team noted
that the urban- rural divide in Zambia means that poverty levels in rural areas
remain high, but that wireless penetration in rural areas could help to change
that by providing a platform for information sharing, financial transactions and
other services where they do not currently exist.
American businessmen also
wanted to know more about Tax Benefits For Renewable Energy Technologies.
While the US Embassy team
was unaware of specific tax breaks associated with the import of renewable energy
technologies, they noted that the Zambian government was currently developing
policy instruments to promote and support the development of non hydro
renewable energy technologies and that members of the trade delegation to the
United States would be interested in meeting companies involved in renewable
energy.
The team also noted that
Zambia had identified more than 5,000 MW of hydro potential and that Zambia
could become a regional electricity provider with increased generation and
transmission capacity.
ZESCO, the team said, “ is currently
developing the 750 MW Kafue Lower project with SinoHydro.”
In 2011 China’s SinoHydro
started building a US$2 billion 750 mega watts Kafue Gorge Lower Hydro power
station which is expected to boost power security in Zambia and the region once
it is completed in 2017.
The team further stated that
the US$250 million Itezhi Tezhi Hydro electricity project is expected to
produce 140 mega watts of electricity.
The project is implemented
under the private public partnership between ZESCO and Tata Africa Corporation
of India.
The development of this
hydro power station is also critical as it would reduce the current electricity
deficit experienced in Zambia.
In addition, the team said the Copperbelt
Energy Corporation (CEC) and Tata Africa
Holdings is developing a 40 mega watts
project in the Kabompo Gorge.
The US$140 million hydro
power station is expected to be completed in 2014. Once completed, the power
dependence would shift from Kariba to Kafue Gorge.
Once the Kafue Gorge was
functional, the 40 mega watts produced would be connected to the main CEC power
grid which supplies power to the mines on the Copperbelt.
The team stated that rural
electrification and existing grid expansion and improvements provide
opportunities for transmission and distribution work. The team further noted
that Zambia was looking to expand beyond hydro-power in its renewable
portfolio, opening up opportunities for solar and wind power.
Regarding Opportunities for
Aircraft, Airport Security and Ground Handling Equipment Sales in Zambia, the
team explained that the Zambian government was currently exploring financing options
for the expansion of four International Airports namely the Kenneth Kaunda,
Harry Mwaanga Nkumbula, Simon Kapwepwe and Mfuwe International Airports.
The team said the next step
would be to tender for the expansion of those airports in Lusaka, Livingstone,
Ndola and Mfuwe. The expansion plans are based on an airports master plan that
was funded by the US Trade and Development Agency (USTDA)
Answering a question on
Opportunities in the Housing Sector, the team explained that the National Housing Authority (NHA) had
announced that Zambia’s housing deficit had reached 2 million units and that
this deficit included military and national police personnel and a more general
burgeoning middle class in urban areas that was increasing demand for quality
housing with utility services.
Additionally, the mining sector was resulting
in the need for new housing development at the mine sites. Against this
background, affordable housing solutions would find a market in Zambia.
There was a question on the
Impact of the Deregistration of the opposition Movement for Multi Party
Democracy (MMD) on the Commercial and Political Outlook of Zambia of which the
team noted that while the Registrar of Societies had deregistered the Movement
for Multi Party Democracy (MMD) for failure to pay fees statutory fees, a court
had stayed the order and the MMD was still active and vocal opposition party
who had, in-fact, just elected a new president of the party on May 25th
2012.
The team also discussed
general Political Risk Coverage that is offered by OPIC and MIGA and that this
had been successfully used in Zambia in the past and noted EXIM guarantees for
trade finance and other financial transactions.
Later Citibank Zambia
Limited Managing Director Joyce-Ann Wainaina
added Citibank’s point of view on the use of political risk coverage for
transactions in Zambia.
Listening to the whole
tele-conference while in Lusaka left me with the thought that Ambassador
Storella, Ambassador Siwela, Tim Smith, Phil Nerving really marketed Zambia to
the best of their abilities to the more than 50 American businessmen who wanted
to learn more on what Zambia has to offer as an investment destination.
It is for this reason that
the Trade Mission to Washington DC, Cincinnati, Houston, Atlanta, Boston
including Los Angeles will certainly prove worth-while.
The
writer is Deputy Chief of Mission at the Embassy of the Republic of Zambia in
Washington DC.
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