Zambia Zambia

REVIEW
12TH EDITION
2011/12
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Contents
Mining & Copperbelt
Physical Infrastructure
Education & Training
Health
Useful Information
Index to Advertisers
Forestry & Timber Foreword
Introduction
Trade & Investment
Business & Finance
Tourism
Agriculture & Fisheries
Manufacturing
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Published by Directory Publishers of Zambia Ltd
PO Box 30963, Lusaka, Zambia
Tel: +260 211 257133
Fax: +260 211 257137
MARKETING
Marie Gibbons
PHOTOGRAPHY
Ren Hartslief, Zambia Tourism Board
FRONT COVER
Zambia Tourism Board, ZAMEFA, Grinaker, Lusaka
Stock Exchange
PRODUCTION
Creative Solutions - Ren Hartslief
DESIGN
Creative Solutions - Michel Gribben
EDITORIAL RESEARCH & CONTENT
Louella Morgan-Jarvis
The publishers gratefully acknowledge the assistance of the Ministry
of Commerce, Trade and Industry and Zambia National Tourist
Board (ZNTB) in coordinating the supply of certain material. While
every care has been taken in the preparation of this publication,
the publishers can accept no liability for any errors or omissions
that may occur. This publication is the exclusive property of the
publishers and no part of the contents may be reproduced in any
form without prior written permission of the publishers.
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Zambia can be proud of its
achievements in the past
two decades.
Since 1991, economic reforms have included a free currency
exchange regime, privatisation of many state-owned enterprises,
fnancial market developments such as the stock market, and the
pursuit of structural reforms backed by the International Monetary
Fund (IMF) and World Bank, such as the removal of consumer
subsidies and price controls.
In the last ten years, in the capable hands of the MMD government,
Zambias per capita income has increased three-fold, putting it
within reach of the middle-income status it enjoyed in the 1960s.
Furthermore, Zambia boasted a real Gross Domestic Product (GDP)
of 5.9 percent per annum between 2004 and 2010. This is testimony
to the countrys market-oriented policies, which have focused on
sustainable economic growth and private sector development.
What is also remarkable is that much of this growth has occurred
in the midst of the many challenges posed by the global economic
recession. Zambias economy continued to grow in 2010, with real
GDP of 7.6 percent recorded compared with growth of 6.4 percent
in 2009. This was well above the target of 5 percent announced by
the Minister of Finance and National Planning in his 2010 Budget
Speech, and the IMF has forecast sustained economic growth in the
region of 6.8 percent in 2011.
2010 was a good year for Zambia on many levels. Against a
backdrop of outstanding economic growth, the country exhibited
comfortable external and public debt ratios, single-digit infation and
a stable currency. Zambias external sector has also strengthened.
It has had a trade surplus since 2004, which reached a peak of 16
percent of GDP in 2010 due to rising copper and cobalt prices and
production.
Copper production reached a record high of 820 000 metric tonnes in
2010, surpassing the most optimistic targets, and output is expected
to reach 1 million metric tonnes in 2012. Boosted by a record maize
harvest of 2.8 million metric tonnes, agriculture also performed
exceptionally well. Prospects in the medium-term remain promising,
with growth in 2011 to be driven by rising public infrastructure
investment and private investment and production in the mining
sector.
Financial sector conditions were also much improved in 2010, with
credit to the private sector slowly reviving and most banks remaining
well-capitalised and having ample liquidity. The second phase of
the Financial Sector Development Plan began in 2010, and strides
continue to be made to improve access to credit and reduce the high
Foreword
cost of borrowing. In 2011 authorities will also further strengthen
bank monitoring and contingency planning to contain vulnerabilities.
The World Bank Doing Business report of 2011 ranks Zambia
among the top 10 countries worldwide that have improved the
ease of doing business for local frms in the past year. This refects
the MMD governments commitment to reducing the cost of
doing business and promoting fnancial sector development, with
particular advances in 2010 including the elimination of minimum
capital requirements, computerisation of customs declarations and
introduction of an electronic case management system in courts.
In addition, Fitch Ratings, the international global ratings agency
which provides issuer and bond ratings, has assigned Zambia long-
term foreign and local currency Issuer Default Ratings (IDR) of B+
with a stable outlook. Fitch also assigned a short-term rating of B
and a country ceiling of 'BB-'. These 2011 ratings refect the marked
improvement in Zambias economic performance since 2003.
Currently, economic diversifcation is being driven by targeted
fscal interventions as well as structural reforms to remove the
remaining constraints to doing business. Already, business licensing
procedures have been reviewed and a legal framework for Public-
Private Partnerships introduced to boost infrastructure development.
Electricity tariffs have been revised to enhance investment in the
energy sector while ensuring improvement in service delivery levels
by Zesco. International telecommunication gateway licensing fees
have been reduced to regional averages and, with the arrival of fbre
optic connectivity, the cost and standard of services has improved
substantially.
Zambia has many positive attributes to attract potential investors,
including a democratic Westminster-style government and a
liberal economic framework combined with an investment-friendly
and export-oriented business incentive package. The Ministry of
Commerce, Trade and Industry regards the Zambia Review as an
important tool for the international business community to learn
more about the country and identify opportunities for productive
investment. Therefore I encourage investors, as well as business
and industry leaders, to read the 12th edition of the Zambia Review. I
trust they will fnd it both interesting and informative.
Hon. Felix Mutati, MP
Minister of Commerce, Trade and Industry
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There are a number of factors which contribute to Zambias
massive economic promise. Rich natural resources such as
copper and cobalt have benefted the country's primary sector,
while good soil and large tracts of fertile, arable land and
forests make agriculture another potentially lucrative industry.
Numerous lakes, dams and rivers provide water as well as
hydroelectric power, and the countrys abundant wildlife and
scenic beauty attract tourists from across the globe.
The past decade has been marked by improved
macroeconomic stability, economic liberalisation, rising private
investment and production in the mining sector and, more
recently, strong agricultural performance. Zambias economy
has also proven resilient in the face of the global fnancial crisis,
with growth accelerating in 2009 and 2010, and comfortable
external and public debt ratios.
While mining and agriculture have traditionally been the
mainstay of national development, efforts to further diversify
the economy mean that increased attention is being given
to the manufacturing and tourism industries. In recent years,
economic growth has brought about signifcant improvement
to the countrys social and physical infrastructure, and the
government is committed to creating an enabling environment
to attract further investment and stimulate private sector
development.
In March 2011 Fitch Ratings, the globally recognised
independent credit rating organisation, assigned Zambia a
sovereign credit rating of B+ with stable outlook.
GEOGRAPHY & CLIMATE
Zambia has a surface area of 752 612 square kilometres, and
ranks among the smaller countries in the region. A landlocked
nation, she is bordered by Angola to the west, the Democratic
Republic of Congo (DRC) to the west and north, Tanzania to
the northeast, Malawi to the east, and Mozambique, Zimbabwe,
Botswana and Namibia to the south. Zambias most elevated
areas include the Copperbelt Highlands as well as the Nyika
Plateau on the border with Malawi, where Mwanda Peak, at
2 150 metres, forms the countrys highest point.
Covered by deciduous savannah, small trees, grassy plains
and marshland, the north and northeast of the country form
a broad, undulating plateau, which slopes away to the south
where Zambias main river, the Zambezi, forms a natural border
with Namibia, Botswana and Zimbabwe. Other important rivers
comprise the Luangwa, which joins the Zambezi from the
northeast, and the Kafue, which fows from Zambia's north-
western highlands. One of the natural wonders of the world,
the spectacular Victoria Falls is the regions foremost tourist
attraction.
On average some 1 200 metres above sea level, Zambias
high altitude combined with the countrys geographical position
has produced both temperate and sub-tropical ecosystems.
Temperatures range from about 15 to 33 degrees Celsius and
the climate is generally pleasant, with extreme heat limited
to the southern valleys around the Zambezi River. The mean
annual rainfall is around 1 400 millimetres in the northern region
and 700 millimetres in the southern, eastern and western
provinces.
The country has three distinct seasons:
May to August is cool and dry, with temperatures ranging from
16C/60F to 27C/81F
September to October is hot and dry, and brings temperatures
from 27C/81F to 32C/90F
November to April is warm and wet with temperatures
between 20C/68F and 27C/81F
THE ZAMBIAN ECONOMY
Following the implementation of structural reforms and the
adoption of sound macroeconomic policies, Zambias economy
has begun to improve markedly. Since 2003, per capita income
has increased three-fold, putting the country within a hairs
breadth of the middle-income status it enjoyed in the mid-
1960s.
With the role of the state considerably reduced, private sector
activity has gained momentum. Investment is promoted through
several attractive incentive schemes. Enhanced competition,
effciency and openness in commerce and industry have
attracted further foreign direct investment, not only in resource-
Introduction
Backed by a solid
multiparty democracy,
social and political stability,
Zambias macroeconomic
environment has improved
substantially in the past
several years, with average
annual growth of 5.9
percent registered between
2004 and 2010.
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based sectors but in transport, telecommunications and utilities
as well.
The country has achieved balance of payments surpluses
in most years due to high foreign direct investment (FDI)
infows. As such, gross external debt ratios remain low. A high
proportion of private foreign debt is FDI-related and therefore
less costly. A free foating exchange rate helps the balance of
payments adjustment to commodity price shocks.
More recently, an enabling policy environment and increased
private sector investment have underpinned Zambias resilience
to the global fnancial crisis, with the country emerging as one of
the best performers in what is considered the worst recession of
recent times. In 2009, the Zambian economy grew by
6.4 percent, the highest growth recorded in the past decade.
At the same time, infation returned to single digits and
international reserves expanded to record levels of over 5
months of import cover.
Non-Traditional Exports (NTEs) expanded by an average of
14.2 percent per annum between 2001 and 2010.
Zambias main weaknesses are related to social and structural
issues. While per capita income has grown extremely quickly
in the past decade, at US $1 200 it is still much lower than
countries in similar credit rating brackets. Furthermore, although
social spending is prioritised in the budget, the countrys human
development indicators remain relatively weak. Infrastructure
also needs attention, and energy and roads are thus currently
the governments main focus.
The economy in 2010 and beyond
The Zambian economy performed well during 2010, with real
gross domestic product (GDP) growth adjusted upward to
7.6 percent 1.2 percent higher than in 2009. This was well
above the target of 5 percent announced by the Minister of
Finance and National Planning in his 2010 Budget Speech.
This favourable growth may be largely attributed to robust
expansion in the agricultural, construction and mining sectors.
The 2010 agricultural harvest was the highest on record, having
produced over 2.8 million metric tonnes of maize, while the
mining sector also beneftted from higher copper prices and
production levels. Growth in the construction sector emanated
from increased residential, commercial and public infrastructure
construction projects across the country by both government
and the private sector.
From an average of 11.5 percent in 2009, infation declined
in line with expectations in 2010, dropping to single digits.
However, it has increased slightly since the beginning of 2011,
from 7.9 percent in December 2010 to 9.0 percent in February
2011. Non-food infation remains in the low double digits.
Zambia's external sector performance improved signifcantly in
2010, refecting the steady recovery in the global economy that
boosted both the demand for and price of commodities such
as copper. The balance of payments for 2010 experienced a
record-high current account surplus of about US $600 million
(3.8 percent of GDP), with international reserves increasing to
US $1.9 billion as of end-February 2011.
Private sector credit has returned to pre-crisis levels in nominal
terms, despite an increase in non-performing loans and
still-high real lending rates. Following the Bank of Zambias
recent action to mop up excess liquidity to fend off infationary
pressures, reserve money growth slowed to 10 percent (on an
annual basis) through February 2011.
According to the International Monetary Fund (IMF), Zambias
economic prospects should continue to improve in 2011, thanks
to sound macroeconomic policies and progress in structural
reforms. Growth for the year is forecast at 6.8 percent,
driven by rising public infrastructure investment as well as
private investment and production in the mining sector, with a
revival expected in the manufacturing, tourism, transport and
communication sectors. At the same time, infation is subdued
and the external position has been solid. The main medium-
term challenge is to create fscal space for priority spending,
enhance economic diversifcation and reduce poverty.
HISTORY & POLITICS
One of the cradles of humankind, the earliest evidence of
homo sapiens in Zambia dates back some 100 000 years, with
remains of human habitation having been found in the region of
Kabwe. There is evidence that Bantu-speaking peoples reached
the area around 800 AD, and that from approximately 1000 AD
Arab and Swahili traders began exploring the region. However,
the ancestors of most of Zambias current ethnic groups arrived
from present-day Angola and the DRC between the 16th and
18th centuries.
Zambias national bird, the Fish Eagle - Photo courtesy: Zambia Tourism Board
Elephants in the river - Photo courtesy: Zambia Tourism Board
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Trade with both the Atlantic and Indian Ocean coasts was
fruitful, and brought the frst European visitors to the area
sometime during the 18th century Portuguese explorers
following the trade routes from the coast into the interior. The
frst half of the 1800s saw successive upheavals in southern
Africa, with many refugees resettling in Zambia. These included
the Nguni, who fed Shaka and the mighty Zulu nation's
difaqane (forced migration). At much the same time the Kololo
arrived in Zambia and settled in Lozi territory on the Zambezi
River.
In 1851 David Livingstone, the celebrated Scottish doctor,
explorer and missionary, frst arrived in the region now known
as Zambia, searching for a route into the interior. A ferce
critic of the slave trade, Livingstones efforts attracted other
missionaries, who were later followed by a stream of European
prospectors and hunters.
In the scramble for control of Africa in the late 19th century,
Zambia eventually came under the jurisdiction of the British
South Africa Company (BSAC), which administered the region
after signing treaties with several African leaders, including
Lewanika, the Lozi king. The area became Northern Rhodesia
in 1911. In 1924 the British took over the administration of the
protectorate.
Massive copper ore deposits were discovered in the north-
central region in the 1920s, and the large-scale mining of
copper and lead began in earnest over the following two
decades. Mining operations in the Copperbelt area attracted
a variety of European administrators, technicians and skilled
labourers. However, it was largely local Africans who worked
the mines, often under appalling conditions, in order to pay the
hut tax introduced by the colonial administration.
By 1910 some 1 500 Europeans had settled in the country,
and by 1958 this number had grown to about 72 000. With the
indigenous peoples experiencing increasing white domination,
a rising tide of African nationalism led to strikes and protests.
In 1948 the Northern Rhodesia African Congress was formed,
giving a formal voice to the countrys disenfranchised majority,
whose opposition to colonial rule continued to mount over the
next decade.
In 1953 the Federation of Rhodesia and Nyasaland,
encompassing Northern Rhodesia (Zambia), Southern
Rhodesia (Zimbabwe) and Nyasaland (Malawi), was created
by the British government, to protests locally and abroad. The
United National Independence Party (UNIP), formed in 1959
by Kenneth Kaunda, was at the forefront of calls to end British
rule, and in 1964 the federation was dissolved. On 24 October
1964 Northern Rhodesia became the independent Republic of
Zambia, taking its name from the Zambezi River. Kaunda was
elected Zambia's frst president, and was re-elected in 1968 and
1973, eventually serving for a total of 27 years.
The 1970s and 1980s were turbulent decades. Problems at
home were exacerbated by falling copper prices and rising
fuel costs. Together with much of the rest of the world, Zambia
imposed sanctions on Ian Smiths white-ruled Rhodesia in
1965, but not without consequences. Retaliation took the form
of raids by the Rhodesian army, which targeted Zambias
infrastructure, as well as the disruption of traditional trade
routes through Rhodesia to the coast. These problems were
alleviated somewhat by the building of a petroleum pipeline
between Dar-es-Salaam and Ndola in 1968, and the opening of
a railway line between Zambia and Tanzania in 1975.
By the mid 1980s President Kaunda was forced to introduce
economic austerity measures as a condition for aid. The
ensuing food shortages and unemployment led to rioting and
strikes, intensifying the mood for political change and the
abolition of Zambias one-party state. In 1991 the constitution
was amended, opposition parties legalised, and full elections
held in October 1991.
Zambia has been a parliamentary democracy since 1991,
and the current ruling party is the Movement for Multiparty
Democracy (MMD). Elections are held every hve years, with
the president serving a maximum of two hve-year terms.
A decisive victory was won by trade unionist Frederick Chilubas
Movement for Multiparty Democracy (MMD) on the promise
of both economic and political reform. The MMD set about
reforming the civil service as well as privatising a number of
government enterprises; moves which saw relations with the
International Monetary Fund (IMF), World Bank and private
investors improve substantially.
Elected in December 2001, Chilubas successor Levy
Mwanawasa of the MMD took over one of the most broad-
based democratic parliaments ever seen in Zambia, with
healthy opposition from other parties, including the United Party
for National Development and United National Independent
Party. President Mwanawasa ran for a second term in the 2006
elections, in which the MMD retained power.
President Rupiah Banda - Photo courtesy: Ren Hartslief
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Important steps taken under President Mwanawasas New
Deal Administration included the launching of a far-reaching
anti-corruption campaign in 2002 as well as a comprehensive
constitutional review process begun in 2005 in order to
strengthen governments political accountability.
Levy Mwanawasa served as President of Zambia from January
2002 until his untimely death in August 2008 following a
stroke. Mwanawasas Vice-President, Rupiah Banda, became
acting President and, as the candidate of the governing MMD,
narrowly won the October 2008 presidential election.
THE PEOPLE
Zambia is known as one of the safest countries in Africa and is
proud of its friendly and hospitable people. About 98 percent
of the countrys inhabitants are African, the main ethnic groups
being Bemba, Nyanja, Lozi, Luvale and Tonga, with the
remaining 2 percent comprising those of Asian and European
origin.
English is the offcial language and is widely spoken throughout
the country. There are 70 indigenous languages, including
Bemba, Nyanja, Tonga, Lozi, Kaonde, Luvale and Lunda.
While Zambia is a Christian country (around 60 percent of
the population), there are also a number of indigenous beliefs
as well as religions such as Islam, Buddhism and Hinduism,
although these are in the minority.
Census 2010
According to the ffth national census conducted in 2010, the
countrys population had risen to 13 046 508 by October 2010
from 9 885 591 in 2000, representing an annual growth rate of
2.8 percent. Of the total population, 49 percent are male and
51 percent female.
The regional distribution of the population shows some 61
percent reside in rural areas and 39 percent in urban areas.
At the provincial level, Lusaka had the largest population with
2 198 996, followed by the Copperbelt with 1 958 623, the
Northern province with 1 759 600, Eastern province with
1 707 731 and Southern province with 1 606 793. The North-
Western province has the lowest population, with just 706 462,
followed by Western province with 881 524 and Luapula
province with 958 976.
MAIN CENTRES
Zambia has one of the lowest population-to-land ratios on the
continent just over 13 million people in a country half the size
of Europe. It nevertheless has a large urban population due
to migration from rural to urban areas as a result of greater
employment opportunities in the mines and other industries post
independence. The countrys industrial and mining base, the
prosperous Copperbelt Province, has the highest population
density.
LUSAKA: Situated in the southern part of the country,
approximately 100 kilometres from the border with Zimbabwe,
Lusaka lies abut 1 300 metres above sea level and enjoys
a pleasant climate, with clear, mild winters and warm and
sunny summer days. Zambias capital since 1935 when it
replaced Livingstone as the capital of Northern Rhodesia
(as the country was then known), Lusaka grew rapidly in the
post-Independence copper boom. Today this commercial,
administrative and fnancial hub is one of Africa's fastest-
growing centres, welcoming visitors from across Africa and the
globe.
In this city of contrasts, colonial architecture and broad tree-
lined streets give way to a bustling central business district,
dusty markets and sprawling informal settlements. Cairo Road
is Lusakas principal thoroughfare, and the central business
district and main shopping area line its wide double carriageway
westwards for several blocks. Many of the citys residents work
as informal traders in busy marketplaces where stalls stock
everything from fruit and vegetables to second-hand clothing
and engine spares.
Lusakas central business district - Photo courtesy: Ren Hartslief
Lusaka City Council Civic Centre - Photo courtesy: Ren Hartslief
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The two main markets are Kamwala Market on Independence
Avenue and Lusakas largest market, the colourful New City
(Soweto) Market, along Lumumba Road. There are also some
good shopping malls such as Manda Hill on the Great East
Road, the nearby Arcades (which has more of an entertainment
focus), and the Downtown Shopping Centre on Kafue Road.
Smaller suburban complexes include Crossroads in Leopards
Hill and Kabulonga, which is situated at the corner of Kabulonga
and Chindo roads.
Lusaka National Museum on Independence Avenue explores
Zambias cultural history, focusing on contemporary art,
ethnography and archaeology; there is also a shop and snack
bar. Other historical attractions include the house of Zambias
frst president, Kenneth Kaunda, at number 394 Chilenje
Township, and Freedom Statue near the National Museum.
Exhibitions of local art and handicrafts take place at the Henry
Tayali Visual Arts Centre and Namwane Art Gallery. Original
artworks and souvenirs may also be found at Kabwata Cultural
Centre on Burma Road, the Dutch Reformed Church Market,
Northmead Market, and at the Arcades. Specialist curio stores
include Ababa House, Kubu Crafts at Manda Hill and Optimana
at Kabulonga.
There are a number of places worth visiting in and around
Lusaka. Following a programme of refurbishment, Munda
Wanga Environmental Park is one of Lusakas foremost
attractions. It comprises an Environmental Education Centre as
well as a purpose-built wildlife park and sanctuary specialising
in native Zambian species and including lions, elephants,
African wild dogs and primates. The botanical gardens, which
contain over 1 000 plant species, have been redeveloped and
are a good spot for picnicking.
The water theme park and recreation centre of Adventure
City has waterslides, rock pools and a large jungle gym.
Kalimba Reptile Park & Family Centre is home to some of the
continents most unusual chameleons as well as indigenous
snakes, crocodiles, tortoises and the rare African slender-
nosed crocodile. In the surrounding countryside there are game
drives, hikes or horseback trails through game farms such as
Lilayi Game Ranch or the excellent Chaminuka Private Game
Reserve.
KITWE: Centrally positioned on the Copperbelt about 60
kilometres west of Ndola, Kitwe is the countrys second largest
city, having expanded rapidly over the past several years
with the renewed prosperity of the copper mining industry. In
addition to those associated with mining, secondary industries
such as food processing and furniture, clothing and cement
manufacturing have been established here.
The main market is situated near the Edinburgh Hotel alongside
the railway line. Chisokone Curio Market at the end of Obote
Avenue sells a variety of curios and souvenirs, with the
emphasis on copper handicrafts. Places of interest near Kitwe
include the crocodile ponds at Chililabombwe, Mindolo Dam
and Chembe Bird Sanctuary, which is set in a woodland reserve
around a small lake.
Kitwe Public Library - Photo courtesy: Ren Hartslief
Lusaka International Airport - Photo courtesy: Ren Hartslief
Local arts and crafts - Photo courtesy: Ren Hartslief
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NDOLA: Zambias third-largest population centre, Ndola is
situated some 320 kilometres north of Lusaka. The town is
the gateway to the Democratic Republic of Congo (DRC)
and Northern Zambia, as well as being the commercial and
industrial capital of the Copperbelt. Manufacturers here operate
in support of the mining industry, and the refnery is the end
point of the oil pipeline which runs from Dar-es-Salaam in
Tanzania. Ndola is also home to the Copperbelt University, The
Times of Zambia newspaper and the large Mosi brewery. The
provincial administration offces are situated here, as well as
hospitals and private clinics.
The towns tree-lined streets and well-developed central
business district belie its industrial roots. There are some low-
key attractions, including the Copperbelt Museum, the Slave
Tree in Makoli Avenue, and the Dag Hammarskjoeld Memorial
commemorating the United Nations secretary-general who was
killed here in a plane crash in 1961. Further afeld, the popular
Nsobe Game Camp and sunken lakes of Chilengwa and
Kashiba are well worth a visit.
LIVINGSTONE: Zambias tourism capital, the town of
Livingstone was established in 1905 and takes its name from
the Victorian missionary and explorer, David Livingstone.
Situated about 300 kilometres southwest of Lusaka and
11 kilometres northeast of the Victoria Falls, this vibrant town
is now the destination of choice for more and more travellers
and makes an excellent base from which to explore the Victoria
Falls as well as the surrounding countryside.
Livingstones business district lies along the towns principal
thoroughfare, Mosi-oa-tunya Road, sections of which are lined
with classic colonial buildings with spacious wooden verandas
and iron roofs. Livingstone is also witnessing a great deal of
construction and development, and the impressive Zambezi
waterfront complex is becoming one of the most exclusive
destinations in southern Africa.
The town's fascinating history is refected in the number and
quality of museums here, from the renovated Livingstone
Museum, with exhibits covering local and prehistoric culture
as well as David Livingstones personal possessions, to the
Railway Museum with its beautifully preserved old steam
locomotives and memorabilia. Directly across from the falls
entrance, the Field Museum gives a good overview of the falls
and their interesting geology, and there is also an excellent craft
and curio market here. Other markets may be found at Mukuni
Park in town, which has a good selection of curios, wooden
carvings and baskets, and the colourful Maramba Market, which
sells everything from fresh produce to hand-crafted furniture.
Traditional villages such as Mukuni, Simonga and Songwe
afford a close-up view of local culture.
Activities on offer in and around the falls include helicopter or
micro-light fips, white-water rafting, kayaking or jet boating in
the Batoka Gorge below the falls, or leisurely breakfast, lunch
or sunset cruises on the Zambezi. There are wilderness safaris
in the Mosi-oa-tunya National Park, which stretches from the
Victoria Falls up the Zambezi River for about 12 kilometres. The
short steam train ride from Livingstone Station to the beautiful
Victoria Falls Bridge provides excellent photo-opportunities.
SOLWEZI: Situated some 180 kilometres west of Chingola,
Solwezi is the capital of the North-Western Province. The past
40 years have seen this busy centre evolve from a small village
to a thriving town. Much of this growing prosperity is due to
Solwezis proximity to First Quantums Kansanshi Mine as well
as Equinox Minerals open-pit Lumwana Mine (which contains
one of the worlds largest copper deposits) some 65 kilometres
away.
The presence of these thriving copper mines has led to huge
infrastructure investments in the region, such as new roads,
Tourists enjoying the top of the falls - Photo courtesy: Ren Hartslief
Royal Livingstone Hotel, one of the many hotels in Livingstone - Photo courtesy: Ren Hartslief
Pyramis Plaza, Ndola - Photo courtesy: Ren Hartslief
13
utilities, business and recreational facilities. There are also
plans to open a Multi-Facility Economic Zone (MFEZ) here to
attract private sector investors and provide sustainable and
integrated opportunities for growth. Places of interest in the
vicinity include Kifubwa Stream Rock Shelter, which harbours
engravings dating to the late Stone Age, and Mutanda River,
which boasts some attractive rapids in the Mutanda Falls about
35 kilometres out of Solwezi.
CHIPATA: Formerly known as Fort Jameson, Chipata was the
capital of North-Eastern Rhodesia until 1911, and is today the
capital of Zambias Eastern Province and the gateway to South
Luangwa National Park. This busy town has around 320 000
inhabitants and is just 30 kilometres from the Malawian border
and just an hour and a half from Lilongwe. Chipata has been
a busy trading post for over a century, and today its colourful
markets and Down Shops sell everything from fruit and
vegetables to clothing and curios. While the town itself holds
few attractions, save the beautifully adorned Central Mosque,
the cultural festivals of Ncwala (during February) and Kulamba
(held during August) are a tourist drawcard.
KASAMA: The regional capital of Northern Province, Kasama
is a busy town situated on the Great North Road as well as the
TAZARA Railway Line, and boasts many amenities and services
as well as an airport. It is a good base from which to explore the
surrounding attractions, which include the Chishimba Falls and
excellent rock paintings dating back some 2000 years.
KABWE: Kabwe lies about 140 kilometres north of Lusaka
on the Great North Road. The town was called Broken Hill
during the colonial era, and in 1921 an almost complete
prehistoric human skull (known as Broken Hill Man or the
Kabwe Cranium), estimated to be over 200 000 years old, was
unearthed here during mining operations. A popular stopover
between Zambias capital and the Copperbelt, Kabwe is also
a good base from which to explore the surrounding attractions
such as Mulungushi Dam and the Mulungushi and Lunsemfwa
river valleys.
CHINGOLA: Chingola is located about 50 kilometres north-
west of Kitwe, along the road which runs either north across
the border and on to the town of Lubumbashi in the Democratic
Republic of Congo or west towards Solwezi. The famed
Chimfunshi Wildlife Orphanage 60 kilometres west of Chingola
is the largest chimpanzee sanctuary and rehabilitation centre
in the world, and is home to over 100 orphaned chimpanzees.
Other places of interest include Hippo Pool, which is a national
monument and popular picnic spot.
LUANSHYA: Established over a century ago following the
opening of Zambia's frst copper mine the Roan Antelope
Mine Luanshya is situated some 34 kilometres from Ndola,
and makes a good stopover when travelling through the
Copperbelt. Today the Collier Monument commemorates the
site where William Collier discovered copper while hunting a
roan antelope.
SIAVONGA: Set on the northeast shore of Lake Kariba in
Southern Province, Siavonga is just a two-and-a-half hour
drive from Lusaka and is a popular conference destination.
ts situation on Lake Kariba, famed for its fshing and boating,
is another obvious drawcard. Leisurely lake and sundowner
cruises are offered, as well as fshing trips and houseboat
accommodation. Siavonga has two private crocodile farms, and
some 40 kilometres to the north there are Stone-Age artefacts
as well as fossilised trees at Chirundu Fossil Forest.
Luanshya Civic Centre - Photo courtesy: Ren Hartslief Local craftsman - Photo courtesy: Ren Hartslief
Border Bridge - Photo courtesy: Ren Hartslief
14
Zambias investment climate has improved tremendously
in the past decade, despite the temporary reduction in
investment infows in the wake of the global fnancial crisis. The
liberalisation of trade has been a key factor in supporting private
sector growth and export competitiveness, with the country
actively participating in regional and international trade fora.
In 2010, Zambia recorded a growth rate of 7.6 percent in its
Gross Domestic Product (GDP), from 6.4 percent in 2009.
Furthermore, according to a forecast by The Economist in
January 2011, it ranks 9th among countries worldwide expected
to have the highest GDP growth rate over the next fve years,
with annual average growth of 6.9 percent expected between
2011 and 2015.
Zambias external sector has also strengthened. It has had a
trade surplus since 2004, which reached a peak of 16 percent
of GDP in 2010 due to rising copper and cobalt prices and
production. While this has been offset by large proft repatriation
by foreign mining companies, the country has achieved balance
of payments surpluses in most years due to high foreign direct
investment (FD) infows. As such, gross external debt ratios
remain low. A high proportion of private foreign debt is FDI
related and therefore less costly. A free foating exchange rate
helps the balance of payments adjustment to commodity price
shocks.
In line with improvements in the global economic environment,
world trade volumes are projected to increase by 11.4 percent
by the end of 2010, and by 7 percent in 2011. This increase will
most likely be driven by the continued expansion of emerging
economies.
Zambias principal export destinations include China, Saudi
Arabia, Democratic Republic of the Congo (DRC), South Korea,
Egypt, South Africa and India. The most successful exports
are metals and minerals (in particular copper and cobalt), a
situation which looks set to continue due to the recovery in
international commodity prices. Other important exports include
electricity, tobacco, fowers and cotton.
There is renewed focus on expanding non-traditional exports
(NTEs) such as cotton, tobacco and vegetables, as well as
cement and textiles, in order to help diversify the economic
base. NTEs have grown by an average of 14.2 percent over
the past 9 years. The outlook for 2010 remains bright, with
growth projected at 8.2 percent to US $973.7 million. Increased
earnings from the export of products such as maize, sugar,
tobacco, cotton, copper wire and gemstones will drive this
growth.
The countrys main import partners are South Africa, the
United Arab Emirates (UAE), China and DRC. The most
important import commodities include machinery, transportation
equipment, petroleum products, electricity, fertiliser, foodstuffs
and clothing.
TRADE & INVESTMENT CLIMATE
Zambias political stability, rich natural resources and central
location in central and southern Africa are a drawcard for
investors. Surrounded by eight neighbouring countries and in
close proximity to the large market of South Africa, it enjoys
preferential market access through active participation in the
Southern African Development Community (SADC) trade
protocol and the Common Market for Eastern and Southern
Africa (COMESA) free trade area.
Ports most frequently used include Durban in South Africa, Dar-
es-Salaam in Tanzania and Walvis Bay in Namibia (the shortest
route), with the route to the port of Beira in Mozambique being
another option. The upgrading of 8 000 kilometres of road and
rehabilitation of 600 kilometres of rail track along the North-
South Corridor, one of the continents major trade routes, is a
joint COMESA-EAC-SADC initiative. This is serving to reduce
the time and costs of surface transport and open up new
business opportunities in Tanzania, DRC, Zambia, Malawi,
Botswana, Zimbabwe, Mozambique and South Africa.
The frst one-stop border post to be upgraded opened at
Chirundu, between Zambia and Zimbabwe, in December
2009, and is expected to cut the time it takes to cross the
Zambia-Zimbabwe border from three days to three hours.
Four additional one-stop border posts will be created along
the North-South Corridor by 2012, signifcantly reducing
transactions costs for cross-border trade.
Trade & Investment
Trade and investment
opportunities in this
peaceful and democratic
nation are backed by
strong macroeconomic
fundamentals, including an
average growth rate of
6.3 percent since 2006.
15
Zambia boasts a Westminster-style government and sound
governance structures based on the rule of law and respect for
private property. There is an independent judiciary and strong
anti-corruption measures have been instituted.
Competitive production costs, incentives, and reforms have
also enhanced the business climate for both local and
foreign investors. Steps have been taken to streamline the
establishment of new businesses and the process of acquiring
visa and work permits as well as land. Tangible results arising
from these initiatives include faster registration of companies,
which has been reduced to one day, with registration for VAT
reduced to three days from 21 days and various processes re-
engineered to cut time.
There is no legal distinction between foreign and domestic
investors, except in the case of the retail sector. Foreign
investment on the Lusaka Stock Exchange (LuSE) is not
restricted, and the privatisation process is likewise open to
foreign bidders. While there are no requirements for local
content, equity, fnancing, employment or technology transfers,
companies seeking licenses or concessions, or investors
bidding for privatised companies, are encouraged to commit to
local participation.
Rebounding investment
Propelled by interest in the countrys manufacturing, agro-
processing and mining sectors, investment pledges for the
year 2010 more than doubled to US $4 791.6 million from
US $2 008.4 million recorded in 2009 an increase of 138.6
percent. The pledges are expected to generate 22 532 jobs.
Investors are free to repatriate capital investments as well as
dividends, management fees, interest, proft, technical fees and
royalties. Foreign nationals may transfer/remit wages earned
in Zambia with ease. There is no exchange control in Zambia
for anyone doing business as either a resident or non-resident.
Additionally, there are no restrictions on non-cash transactions.
Customs and excise
Important customs and excise developments in the 2011 budget
include:
ncreasing the threshold at which an individual requires the
use of a clearing agent for customs clearance purposes from
US $500 to US $2 000.
Removing the requirement for importers to apply to the
Commissioner-General for entry of goods for pre-clearance.
mplementation of reforms to improve customs clearance at
Zambias borders, such as requiring commercial importers to
register their entries and provide supporting documentation to
the Zambia Revenue Authority at least seven days before the
goods arrive at the border or within 24 hours when the goods
are accompanied by the importer.
Review of the Duty Drawback Scheme to implement simplifed
procedures for exporters.
INVESTING IN ZAMBIA
Investments are protected and private property rights
guaranteed through the Zambia Investment Act of 1993, as
amended in 1996, which states that investments may not be
expropriated unless parliament passes an act relating to the
compulsory acquisition of that property, in which event full
compensation at market value and free transfer of the funds in
the currency in which the investment was made is guaranteed.
Furthermore, investors are guaranteed that investments will not
be adversely affected by any changes to the Investment Act for
a period of seven years.
Zambia belongs to the Multilateral Investment Guarantee
Agency (MIGA) and has signed multilateral, regional and
bilateral investment protection agreements with a number of
countries. Investment in the stock market is protected by the
Securities Act of 1993 and enforced by the Securities and
Exchange Commission.
Incentives for investors
The standard corporate tax rate is 35 percent. All mining is
16
taxed at a rate of 30 percent, with mineral royalty of 3 percent,
while income from farming is taxed at 15 percent (excluding
cotton exports), as is income originating from the export of non-
traditional products, including fertilisers. Rural manufacturers
are taxed at 30 percent for the frst fve years of operation.
There are reduced tax rates for companies listed on the Lusaka
Stock Exchange (LuSE), and manufacturers operating in the
Multi-Facility Economic Zones.
Zambia Development Agency
Established in 2006 following the merger of the Zambia
Privatisation Agency, Zambia Investment Centre, Export Board
of Zambia, Zambia Export Processing Zones Authority and the
Small Enterprise Development Board, the Zambia Development
Agency (ZDA) became operational on 7 July 2007.
A one-stop-shop for investment and trade matters, the ZDA
is tasked with promoting growth and investment in Zambia.
Government, through the ZDA, has committed itself to creating
a business environment that benchmarks Zambia as the best
among dynamic developing economies. Such an environment is
critical in attracting additional foreign and domestic investment.
Business reforms have helped ZDA to make great strides in its
mandate of investment promotion. Following the establishment
of the agency, FD rose drastically, and within the frst two years
of operation ZDA had attracted more than US$ 11.4 billion in
FDI compared to the US$ 3.9 billion that had been brought
in between 1993 and 2006. This infow is projected to have
translated into the creation of more than 52 000 direct and
indirect job opportunities in various sectors of the economy.
The ZDA promotes development by providing effective and
comprehensive business facilitation and aftercare services.
It also provides business development services and market
information in order to promote Zambian exports. The
agency additionally supports greenfeld investment through
joint ventures and partnerships between local and foreign
investors, as well as ensuring speedy approval of licences by
all government agencies. It further assists in obtaining land
for economic projects and helps expatriate staff to obtain work
permits.
ZDA is also mandated to support the growth of the Micro
and Small Enterprises (MSEs) sector in an effort to shift the
emphasis of economic development, which has hitherto been
geared towards the promotion of medium and large-scale
enterprises, mainly in the mining and manufacturing sectors.
Current development trends show that MSE involvement in the
economy has become essential. Thus, ZDA creates market
linkages for MSE players with transnational corporations to
enable them to realise meaningful profts from their economic
activities.
Export earnings are another crucial stimulant in propelling
Zambias economic development, and the agency thus markets
Zambias exports abroad to increase earnings from the sector.
It promotes export and competitive international trade, and
assists Zambian businesses and entrepreneurs in accessing
new markets and expanding existing ones within the region and
beyond. The agency also helps entrepreneurs to source inputs
at competitive rates.
The ZDA undertakes research on what different markets offer
Zambian exporters, and subsequently advises the Minister
of Commerce, Trade and Industry on matters relating to
International Trade and Development through the export of
goods and services. The agency largely utilises market access
offers received from trading partners under COMESA, SADC,
the European Union (EU) and other regional trading blocks, as
well as national initiatives and the World Trade Organisation
(WTO).
The agency promotes investment in order to strengthen the
growth of domestic industries and thereby enhance export
earnings. Accordingly, Zambia has formulated an industrial
policy vision that embraces the promotion of investment into
zoned areas for industrial parks. The ZDA promotes both FDI
and DDI (domestic direct investment) in different sectors of the
economy. Specifcally, ZDA establishes Multi-Facility Economic
Zones (MFEZs) to enhance FD and DD infow.
The MFEZ programme serves as a catalyst for Zambias
industrial and economic development through facilitation of
investment in these zones, with the objective of stimulating the
manufacturing sector to enhance both domestic and export
oriented business. The zones provide an environment that is
competitive enough for a manufacturer to process within the
borders of Zambia with relative ease.
Lusaka Stock Exchange - Photo courtesy: Ren Hartslief
17
The MFEZ programme has several incentives that are meant to
attract investors in the zones. These include exemption from tax
on dividends for fve years from the frst year of declaration, and
a corporate tax of zero percent for the frst fve years from the
frst year profts are made, among many others.
INVESTMENT OPPORTUNITIES
The restructuring of the economy has opened up new horizons
for investment, with an increasing number of sectoral and
privatisation investment opportunities being generated every
year. While mining has been the anchor of the countrys
economy since the privatisation of the industry some years ago,
efforts are being made to diversify the economic base, focusing
specifcally on the agricultural, manufacturing and services
sectors, with FD infows through privatisation and Public-
Private Partnership (PPP) arrangements.
PPPs have emerged as an important modality for fnancing
large infrastructure projects. Successful partnerships include
the Kasumbalesa border post, which is expected to signifcantly
reduce transaction costs for cross-border trade. PPPs
planned for 2011 including the building of 12 000 houses, the
conversion of the Kitwe-Chingola-Kasumbalesa road into a dual
carriageway, and construction of the Kafue Gorge Lower and
Kabompo Gorge power projects.
Growth sectors
Prime growth sectors for investment include manufacturing,
agriculture and agro-processing, tourism and mining.
Investment opportunities are also available in construction,
transportation, energy, telecommunications and IT services.
There is good arable land for both extensive and intensive
cultivation of various crops in all provinces of the country.
The country also has a good climate and lays claim to about
40 percent of the water resources in the southern African
region, thereby creating huge irrigation potential. Agri-business
investment opportunities are focused on the Nansanga
Farming Block, and there are also opportunities to develop beef
production for export, with specifc areas having been zoned for
such activities.
The agro-processing industry is also important in adding
value to locally produced primary products. This includes the
processing of crops such as tobacco, coffee, tea, soy beans,
maize, sunfower and cottonseed, in addition to the production
of fruit juice, as well as the expansion of sugar production
facilities.
Zambia is a major source of minerals such as copper, zinc,
lead, cobalt, uranium and precious metals and stones, with
investment opportunities available in the processing and mining
of these minerals, as well as the polishing and processing of
gemstones. In addition to the traditional minerals, the mining
of semi-precious stones such as amethyst and emeralds also
holds potential. The extraction and processing of marble,
granite and other stones used in the building industry is largely
untapped, and there are further prospects for minerals used
in agriculture and manufacturing, such as clay, limestone and
gypsum for cement production, not to mention exploration for
exploitable oil deposits.
Manufacturing activity is led by the private sector, with
government playing a proactive, facilitative role, as evidenced
by the creation of Multi-Facility Economic Zones. An important
sector as regards Zambias macroeconomic strategy for
encouraging broad-based economic growth, manufacturing
accounts for a substantial part of the countrys GDP and is a
major employer. Important investment areas include wood and
leather products, food processing, textile manufacture, steel
production, vehicle parts and assembly, and mineral products.
Another area of interest to investors is energy, with rising
demand across the whole of southern and eastern Africa.
Alternative sources of energy are being sought while at
Cotton - Photo courtesy: Ren Hartslief
Ndola Lime Company - Photo courtesy: Ren Hartslief
Copper cable, ZAMEFA - Photo courtesy: Ren Hartslief
18 18
the same time the capacity of existing hydroelectric power
stations is being expanded, with installed capacity far below
Zambias hydropower resource potential of an estimated 6 000
megawatts.
Government is presently promoting the entry of independent
power producers to the sector, for the generation of electricity
and the production of bio-fuels, with the latter having been
included in the national fuel mix following the development of
standards. Furthermore, amendments to the ZDA Act mean
that all types and sizes of power plants (hydro, thermal or solar)
qualify for tax concessions. Previously this only applied to Mini
Hydropower Plants.
The tourism sector is already one of the largest foreign
exchange earners in Zambia, despite the fact that only
a small proportion of these assets have been exploited
so far. Opportunities exist in the provision of high quality
accommodation for international visitors as well as budget
lodges for local tourists, game ranching, transport services,
adventure holiday packages, organised tours and outdoor
sports facilities.
Strong growth in the construction sector over the past
several years, with increases in cement sales and quarrying
as well as public and private sector construction works,
refects heightened investment in infrastructure development
precipitated by Zambias expanding economy. The road
network is especially critical for Zambia, considering trade
links with SADC and COMESA, which depend on an effective
regional and national road network. Rural areas are also
seeing extensive infrastructure programmes in the form of
roads, bridges and dams. Opportunities are to be found in
road maintenance and rehabilitation, development of harbours,
construction of railway lines, rehabilitation of hydropower
stations, construction of residential and commercial properties,
development of mining infrastructure as well as irrigation and
water utilities infrastructure.
The ZDA and the PPP unit have earmarked Njanji
Commuter Services (NSC), a 13.5 kilometre intra-city urban
railway line in Lusaka, for private sector investment.
Road construction, Ndola - Photo courtesy: Ren Hartslief
Tourism, the Royal Livingstone Hotel - Photo courtesy: Ren Hartslief Hydropower - Photo courtesy: Ren Hartslief
Rail network - Photo courtesy: Ren Hartslief
19
PRIVATISATION
Begun in the early 1990s, Zambias privatisation programme
is acknowledged as being one of the most successful in terms
of the World Banks Poverty Reduction Growth Facility. The
process of privatisation in a country such as Zambia, in which
some 80 percent of the economy was once state-owned, has
had far reaching consequences and has been integral to private
sector development.
Privatisation methods have differed according to the type of
company being sold, with smaller companies going under public
tender and some larger organisations being publicly foated.
Other options have included the Management Buy-Out (MBO)
system. The establishment of the Zambia Privatisation Trust
Fund (ZPTF) paved the way for ordinary Zambians to invest
in state-owned enterprises by buying shares on the stock
exchange, with some 60 percent of companies and units having
been sold to Zambians.
From a modest start, which focused on local investment,
Zambias privatisation programme expanded to attract
international companies from Europe, Asia, South Africa and the
United States. Initially involving the divesture of approximately
150 state-owned enterprises, this number increased to 284
as many of these enterprises were split and their operating
units sold independently. Initially overseen by the independent
Zambia Privatisation Agency (ZPA), the privatisation programme
is presently being guided by the Zambia Development Agency
(ZDA).
In 2010, government divested 75 percent of its equity in the
Zambia Telecommunications Company Limited (Zamtel),
which was sold to Lap Green of Libya. Once the company
becomes sustainable and successful, government will consider
divesting the remaining 25 percent through the sale of shares
on the Lusaka Stock Exchange. This will go a long way toward
improving the quality of service and reducing high costs in the
telecommunications sector.
Also in 2010, NAVA Bharat Singapore Private Limited took over
the operation of Maamba Collieries Limited (MCL) following
the acquisition of 65 percent of its shares. While no specifc
enterprises are mentioned in the 2011 budget, the ZDA and
government have indicated the possibility of divesting some of
their investments, and there is external interest in both Nitrogen
Chemicals of Zambia and ndeni Refnery.
TRADE AGREEMENTS
The promotion of trade is crucial to the country in its efforts
to fnd additional regional and international markets for its
products. While Zambia is a key player and pioneer in various
regional initiatives, there is a need for Zambian products to
achieve further penetration in global markets such as the USA
under the African Growth and Opportunity Act (AGOA), the
EU under the Everything but Arms (EBA) Initiative, as well the
Chinese, Canadian and other markets.
Zambia is a member of the Southern African Development
Community (SADC), a grouping of 15 countries with a
combined population of some 257.7 million and a cumulative
GDP of US $471.1 billion. SADC launched a Free Trade Area
(FTA) in 2008 involving zero tariff levels for 85 percent of all
goods traded among member states. Liberalisation of tariffs on
the remaining 15 percent of goods, considered to be sensitive
products, is expected to be completed in 2012. This is one of
the frst milestones of the SADC Regional ndicative Strategic
Development Plan, and is to be followed by a Customs Union
and Common Market.
Zambia is also a member of the Common Market for Eastern
and Southern Africa (COMESA), which promotes regional
economic integration through trade and investment. In 2008,
COMESAs 19 member states had a population of 430 million,
annual import bill of around US$ 152 billion and export bill of
over US$ 157 billion, making it a major marketplace for both
internal and external trade.
The COMESA Free Trade area (FTA) came into being in
the year 2000, whereafter intra-COMESA trade expanded
enormously due to the removal of tariffs among member states.
The launch of the Customs Union in June 2009 should deepen
integration in the region, harmonise policies regarding external
tariffs, classifcation and regulations, and enable the creation of
more effective trade agreements.
COMESA headquarters, Lusaka - Photo courtesy: Ren Hartslief
Zamtel - Photo courtesy: Ren Hartslief
20
Economic diversifcation and private sector development remain
key to enhancing the Zambian business climate. Government is
presently focusing on a broader spectrum of reforms which will
help enhance the prosperity of Zambians by encouraging more
productive enterprises, diverse industries and the creation of
jobs.
The Private Sector Development Reform Programme has
resulted in signifcant progress being made in reducing the
cost of doing business. In the past few years, this initiative
has seen the creation of the Zambia Development Agency
(ZDA) and the Citizen Economic Empowerment Commission
(CEEC), as well as the introduction of a policy on Public-Private
Partnership (PPP) to speed up the pace of development in large
infrastructural projects.
Currently, Zambia ranks among the top 10 countries worldwide
that have improved the ease of doing business for local
frms, according to the annual Doing Business Report for
2011 released by the World Bank and International Finance
Corporation (IFC). Zambias position rose by eight spots
between 2010 and 2011 as a result of reforms which have
been undertaken, such as eliminating the minimum capital
requirement, computerising customs declarations and
introducing an electronic case management system in courts.
Considerable growth has been seen in the fnancial sector
following its liberalisation in 1991, while the establishment of
the Lusaka Stock Exchange and the repeal of the Exchange
Control Act have strengthened capital markets. The Financial
Sector Development Plan (FSDP) aims to achieve a stable,
sound and market-based fnancial system that supports the
effcient mobilisation and allocation of resources necessary
to achieve economic diversifcation, sustainable growth and
poverty reduction. Developments on this front include the
establishment of a credit reference bureau, the National
Payment Systems Act (2007) and an increase in microfnance
institutions.
The National Payment Systems Act of 2007 has facilitated
the availability of new and innovative hnancial services,
such as mobile and Internet banking services.
The Zambian fnancial sector emerged relatively unscathed by
the credit crunch, as refected in the continued stability of the
domestic banking sector, with most banks being adequately
capitalised and the inter-bank market operating normally.
This was mainly due to the sectors limited integration with
international fnancial markets. However, the subsequent global
economic recession did lower foreign capital infows and bring
about a loss of foreign exchange reserves.
While domestic infation rose in 2008/09 as a result of the
Kwachas depreciation against major currencies, it had fallen to
single-digit fgures once more by the end of 2009. Zambia's low
infation may be attributed to:
Appropriate Monetary Policy
Prudent Fiscal Policy
Relative Stability of the Kwacha exchange rate
Bumper maize harvests maintaining food prices at low levels
Government continues to promote the stability of the sector
through monitoring fnancial institutions and ensuring
compliance with prudential regulations. During 2011 the
spotlight is on initiatives such as the establishment of an
independent Financial Intelligence Unit, creation of a national
switch to facilitate interbank sharing of Automated Teller
Machines (ATMs) and Point-of-Sale terminals, creation of a
deposit protection scheme, and the development of a fnancial
sector contingency plan.
Credit rating
Refecting the marked improvement in Zambia's economic
performance since 2003, international ratings agency Fitch
Ratings in February 2011 gave Zambia long-term foreign and
local currency Issuer Default Ratings (IDR) of B+ with a stable
outlook. Fitch has also assigned a short-term rating of B and a
country ceiling of BB-.
These ratings take into account accelerating growth in 2009 and
2010 and comfortable external and public debt ratios, which
deteriorated only slightly in 2009 before recovering in 2010.
Looking ahead, the increase in the tax-revenue ratio through
higher mining tax revenue as the 100 percent capital allowance
is written off earlier than anticipated as a result of higher
Business & Finance
Supported by economic and
business reforms, business
prospects in the resource-
rich country of Zambia
have improved dramatically
over the past decade,
driven by privatisation,
market liberalisation and
deregulation.
21
metal prices will help strengthen debt tolerance, improving
creditworthiness.
The BB- rating for Zambias country ceiling, a notch above
the long-term foreign currency DRs, refects the absence of
exchange controls for two decades and reliance on foreign
investment which reduces the likelihood of controls being
introduced.
THE BUSINESS ENVIRONMENT
Zambia is one of the most attractive investment locations in
sub-Saharan Africa, and both local and foreign companies are
able to take advantage of the many and varied benefts to doing
business here. With the global economic recovery now well
under way, continued positive growth is expected for 2011 and
2012.
nvestors face no restriction on the amount of interest, proft,
dividends, management fees, technical fees and royalties
that they are allowed to repatriate. Income earned by foreign
nationals may also be externalised without diffculty. There is no
distinction in law between foreign and domestic investors, and
while companies seeking licenses or concessions, or investors
bidding for privatised companies, are encouraged to commit to
local participation, this is not compulsory. Businesses setting
up in Zambia now enjoy faster company registration, which has
been reduced to just one day, while registration for VAT can
now be completed in three days.
Enhancing competitiveness
The drive towards economic diversifcation is being undertaken
through targeted fscal interventions as well as structural
reforms to unshackle current constraints to doing business.
Most recently:
To reduce the cost of doing business, regulatory reforms in
2010 saw amendments to the Companies Act which removed
the minimum paid-up capital requirement when registering a
business. A total of 38 licences were eliminated and
procedures for a further ten, with government expecting to
eliminate an additional 132 licences in 2011.
A legal framework for Public-Private Partnerships has been
developed to facilitate partnerships in key areas such as
infrastructure development.
Electricity tariffs have been revised to allow for cost
recovery, thus attracting investment in the energy sector while
ensuring improvement in service delivery levels.
The liberalisation of the international telecommunication
gateway is expected to lead to lower costs.
To reduce inland transport costs, inter-regional transport
routes are being enhanced through projects such as
Kazungula Bridge (Botswana), Mwinilunga-Jimbe Road
(DRC), Mongu-Sikongo Road (Angola) and Great East Road
(Malawi/Mozambique).
22
With the high cost of borrowing particularly for Small and
Medium Enterprises (SMEs) having been identifed as a
constraint to economic growth, government is working with the
Bank of Zambia to reduce the spread between the borrowing
and lending interest rates. This should help make cheaper
fnance available for development within the sector.
Business development institutions
The frst Zambian chamber of commerce and industry was
established in Lusaka in 1933. Since then there has been a
national body of chambers of commerce and industry under a
variety of names.
The Zambia Association of Chambers of Commerce and
Industry (ZACCI) is a national body representing the interests
of the private business sector in Zambia. The mission of
ZACCI is the promotion and development of trade, commerce
and industry, and the association acts as a link between like
organisations, the private sector and government.
Among ZACCIs many successes are improved advocacy
programmes with members of parliament and government
ministries, the introduction of cleaner production to local
industries and the training of over a thousand small and
medium business entrepreneurs in various business skills.
An autonomous corporate body under the Ministry of
Commerce, Trade and Industry, the Zambia Competition
Commission (ZCC) was established in May 1997 under the
Competition and Fair Trading Act. The act was developed in
order to encourage competition within the economy, protect
consumer welfare, strengthen the effciency of production and
distribution of goods and services, secure the best possible
conditions for the freedom of trade and expand the base
of entrepreneurship. The ZCC has a wide range of powers
of enforcement and investigation under the act, and the
commission has achieved success in dealing with a variety
of market distortions, protecting the competition process and
thereby rendering the Zambian market more attractive to
investors.
The world's leading inspection, verifcation, testing and
certifcation company, SGS Inspection Services Limited has
been operational in Zambia since 1998, and is recognised
as the global benchmark for quality and integrity. It has an
administrative offce in the Copperbelt city of Ndola, a minerals
and oil testing laboratory in Kalulushi, and an operational
presence in Kitwe, Chambeshi, Chingola, Kabwe and
Mpulungu, as well as Lusaka when needed. Services in the
following areas of business are offered to government and
industry:
Agriculture
Fumigation & Pest Control
Collateral Management
Oil, Gas & Chemicals
Government & nstitutions (including pre-shipment inspection)
Geochemical Laboratory
Minerals & Trade
Oil Condition Monitoring
Continuing the work of the Small Enterprise Development
Board (SEDB), following its amalgamation under the Zambia
Development Agency, the Small and Medium Enterprises
(SME) Division is charged with analysing the needs of
businesses and developing products and services, particularly
for small and medium sized enterprises, to be delivered
nationally and at regional level. It also monitors the overall
effectiveness of local business programmes and manages
programmes such the Trade and Industrial Development Fund.
Close liaison is maintained with relevant partners, including
small business associations and NGOs involved in the SME
sector.
The importance of the SME sector to job creation and wealth
distribution cannot be overemphasised, and government
23
continues to work diligently with institutions supporting business
management and entrepreneurship skills in order to ensure
that Zambians are suffciently qualifed to undertake business
ventures at small-scale level.
Small businesses which lack adequate collateral now have
access to loans using a credit guarantee scheme set up
through the Development Bank of Zambia.
Economic empowerment
The Citizens Economic Empowerment Act of 2006 resulted in
the establishment of the Citizens Economic Empowerment
Commission (CEEC) and the Citizens Economic
Empowerment Fund (CEEF). Particular focus is on those who
have been marginalised or disadvantaged and whose access
to economic resources and development capacity has been
constrained due to factors such as race, sex, educational
background and disability.
In the 2011 budget, government allocated K76 billion to
empowerment funds. Of this amount, K40 billion has been set
aside for the CEEF, K10 billion to the youth and K26 billion
to women. Government has put in place tailor-made training
in access to fnance and markets for SMEs, which is being
facilitated through the Business Linkages programme.
The National Savings and Credit Bank (Natsave) has
adopted a group lending microfnancing scheme as a pilot
project in Luanshya and Petauke. The programme is meant to
promote accessibility to fnance by SMEs, which usually face
challenges in raising collateral and diffculties in the preparation
of fnancial statements.
A K 349 million loan portfolio has been created, with no
delinquencies recorded. Customers undergo an eight-week
training programme on fundamentals in business management
prior to being granted a loan. During 2010, the programme was
rolled out to Natsaves 27 other branches across the country.
TAXATION
Tax policy and administration has been signifcantly modernised
in the past few years in order to expand the tax base and
increase revenue productivity while at the same time ensure
the equity and simplicity of the system. Established in 1994, the
Zambia Revenue Authority (ZRA) assesses and collects taxes
and duties on behalf of government, facilitates international
trade and advises government on aspects of tax policy. General
information on taxation is available from the ZRA Advice Centre.
All individuals receiving an income from a source within
Zambia, whether they are resident or non-resident, are liable
to pay tax. A foreign resident business undertaking pays tax
only if business is conducted in Zambia through a permanent
establishment. A company is resident in Zambia for tax
purposes if the company is incorporated or formed in Zambia or
the central management and control of the companys business
or affairs is exercised in Zambia. Companies are taxed on
trading profts as well as interest and dividends, if those
dividends are paid in Zambia.
In partnerships, the taxable income of the partnership is
frst determined on the basis that it is a separate, taxable
person. After income has been apportioned among the
24
partners according to the partnership agreement, partners
are individually assessed on their respective share of the
partnership income.
The annual non-taxable income threshold was increased to
K12 000 000 for 2011/12 from K9 600 000 for 2010/11 to
provide further relief to workers. Personal tax rates for the year
to 31 March 2012 are as follows:
First K12 000 000 per annum zero percent
Next K8 819 988 per annum 25 percent
Next K29 579 988 per annum 30 percent
Above K50 400 000 per annum 35 percent
Other developments in the 2011 budget include an increase
in the the exempt portion of income paid at termination of
employment from K25 million to K35 million, and an increase in
the tax credit for differently-abled persons from K1.92 million to
K3.0 million per annum. In addition, the requirement for SMEs
to submit audited accounts to the ZRA has been removed.
In order to mitigate the revenue loss as a result of
personal income tax relief, the income tax structure for the
telecommunication sector has been aligned with that of the
banking sector. Furthermore, the property transfer tax rate
has been increased from 3 percent to 5 percent, and interest
payable on mortgages for residential property has been made
non-deductible for tax purposes.
As such, the following company tax rates now apply:
Standard rate 35 percent
Mining 30 percent
Farming (local) 15 percent
Farming (export of cotton) 35 percent
Rural manufacturers 30 percent for frst fve years
Non-traditional exports 15 percent
Banks & telecommunication (income not exceeding
K250 million) 35 percent
Banks & telecommunication (income in excess of
K250 million) 40 percent
Value Added Tax
The Value Added Tax (VAT) system was introduced in July 1995
to replace a manufacturing and retail Sales Tax. VAT is invoice-
based and operates on the destination principle, where goods
and services are taxed in the country of consumption and not of
origin. The VAT standard rate was reduced from 17.5 percent to
16 percent at the beginning of April 2008.
Special tax refunds are granted to tourists and commercial
exporters, and a range of favourable incentives to investors.
Qualifying goods do not pay import VAT, and the VAT Deferment
Scheme on capital goods and specifed raw materials allows the
payment of import VAT to be deferred and offset against input
tax due on those items. It is possible to recover tax on capital
purchases before trading commences through monthly VAT
returns, and excess input tax over output tax is not held as a
credit against future liabilities, but is repaid.
In order to broaden the VAT base and generate more revenues,
property and casualty insurance were standard-rated for VAT
purposes in the 2011 budget, as were fee-based banking
services, such as managers/bank cheques, drafts and transfers,
and excess withdrawal fees.
THE FINANCIAL SECTOR
Confdence in Zambia's fnancial sector continued to grow
during 2010, with most banks being well capitalised and
having ample liquidity. The Bank of Zambia (BoZ) is intent on
promoting fnancial sector stability through monitoring fnancial
institutions and ensuring that they comply with prudential
regulations.
Private sector credit returned to pre-crisis levels in nominal
terms, despite an increase in non-performing loans (although
these do not represent a systemic threat) and still-high real
lending rates. Following the BoZs action to mop up excess
liquidity to fend off infationary pressures, reserve money growth
slowed to 10 percent (on an annual basis) through February
2011.
According to the International Monetary Fund (IMF), Zambias
fnancing needs are becoming more acute with regard to
addressing growth-critical infrastructural requirements, and
increased but prudent reliance on non-concessional fnancing
is appropriate given the challenges in identifying additional
concessional resources and the countrys moderate external
debt levels. However, it is vital that non-concessional fnancing
remain strictly directed to growth-critical spending that provides
high economic returns.
Monetary policy is aimed at maintaining single-digit
inhation, with a target of 7 percent by the end of the 2011.
Interest rates
Low interest rates reduce the cost of investment and encourage
investments in key sectors of the economy. Zambias interest
rates have come down, with banks weighted lending base rate
at 19.4 percent in December 2010 from 46.7 percent in 2001.
The overall reduction is not in tandem with a fall in infation and
government securities.
Measures which have helped to reduce interest rates include
reduced statutory reserve ratios (to 8 percent from 14 percent
in 2007); containing infation to single digits; establishment of a
credit reference bureau; a prudent fscal policy by government.
Financial Sector Development Plan
n recognition of the strategic importance of the fnancial sector
to the countrys economic development and poverty reduction
efforts, the Zambian government launched the Financial Sector
Development Plan (FSDP) in 2004 to address weaknesses that
had been identifed in the sector. The FSDP is a comprehensive
strategy aimed at achieving a fnancial system that is sound,
stable and market-based, and able to support the resource
mobilisation necessary for economic diversifcation and
sustainable growth. A key motivator behind the plan was the
changing profle of the fnancial services sector and a pressing
need to develop effective means of supervising the different
sectors.
A number of activities have been undertaken under the FSDP,
such as the establishment of a credit reference bureau.
Similarly, policies and legal and regulatory frameworks
have been developed to take into account the evolving
fnancial environment. These developments have resulted
in a considerable increase in the number of banks and other
fnancial service providers in the country.
26
In January 2010, government extended the implementation
of the FSDP by three years to December 2012. The second
phase of the plan will predominantly focus on enhancing market
infrastructure, increasing competition and access to fnance.
This includes extending banking sector coverage to the rural
areas and addressing any possible systemic fnancial risks.
The plan will also deal with longer-term issues, including the
harmonisation of fnancial sector laws, the full establishment
of an independent Financial Intelligence Unit and the
implementation of a national switch. The national switch is a
payments system innovation that allows banks to share facilities
such as ATMs and Point-of-Sale terminals, thus offering
customers wider access to fnancial facilities.
Government is also enhancing fnancial safety nets by
implementing a deposit protection scheme and strengthening
the lender of last resort framework. This framework will enable
the Bank of Zambia to assist solvent fnancial institutions
that may encounter temporary liquidity stress. In addition,
important strides have been made in designing a fnancial
sector contingency plan that provides a framework for resolving
fnancial crises.
Access to fnancial services is key to empowering local
entrepreneurs to better contribute to economic development.
Recent data shows that access to fnancial services rose
between 2005 and 2009. With the fnancial sector becoming
increasingly competitive, it is expected that more and more
Zambians will have access to fnancial services. Government
remains committed to providing a platform for fnancial service
providers to embrace new technologies that increase access to
such services.
BANKING & FINANCIAL SERVICES
The fnancial sector in Zambia comprises banks and non-
bank fnancial institutions (NBFs) which are regulated and
supervised by three agencies; namely, the Bank of Zambia
(BoZ), the Pensions and Insurance Authority (PIA), and the
Securities and Exchange Commission (SEC). The Banking and
Financial Services Act was amended in 2005.
According to 2011 BoZ fgures, there are 18 commercial banks
in Zambia. NBFs comprise the leasing and fnance companies
(12), building societies (three), microfnance institutions (24),
one development fnance institution (Development Bank of
Zambia) and one savings and credit institution (the National
Savings and Credit Bank). There are also 49 Bureaux de
Change, as well as a relatively recent entrant to the fnancial
sector: Credit Reference Bureau Africa Limited.
The overall fnancial performance and condition of the banking
sector during 2010 was satisfactory. In the main, the sector was
adequately capitalised with a satisfactory liquidity position and
earnings performance despite the deterioration in asset quality
as a result of an increase in the level of non-performing loans
following the adverse impact of the global fnancial crisis in
2009.
Bank of Zambia
Zambia's banking and fnancial system has undergone a
process of modernisation and streamlining, with the countrys
central bank, the Bank of Zambia (BoZ), having improved
both supervision and regulation of the sector. During 2010,
amendments to the Bank of Zambia Act were underway to give
more operational autonomy to the bank.
The BoZ recognises that fnancial stability is essential for
strong macroeconomic performance and execution of monetary
policy. This entails ensuring that fnancial service providers are
adequately capitalised and have appropriate risk management
systems. In 2006, the Capital Adequacy Regulations of 1995
were amended to provide for a tiered capital structure to
encourage entrants into the fnancial sector.
Bank of Zambia - Photo courtesy: Ren Hartslief
28
The bank has over the years made progress in modernising
the payment system in line with improvements in information
technology. The National Payment Systems Act No.1 (NPSA) of
2007 saw BoZ designating players wishing to provide payment
services such as money transfer services and mobile banking,
as well as the introduction of a tax payment stream on the Real
Time Gross Settlement (RTGS) system.
As part of ongoing efforts to improve payments systems,
the BoZ has introduced a cheque imaging system to allow
for electronic submission of cheques for clearance. This will
substantially reduce the time taken for cheque clearance.
Action taken to prevent money laundering includes the
Prohibition and Prevention of Money Laundering (PPML) Act
2001, which criminalised money laundering and provides for
the forfeiture of property by offenders. Furthermore, to limit
the potential threats posed by money launderers, BoZ issued
directives to all regulated fnancial institutions on combating
money laundering and has also developed a supervisory
framework aimed at conducting targeted inspections to ensure
banks and NBFIs are complying with the anti-money laundering
legislation and directives.
The bank has been reviewing its monetary policy framework.
The initial focus has been on the link between changes in
Central Bank interest rates and commercial bank lending rates.
In this regard, BoZ consulted stakeholders to identify concrete
steps that need to be taken to reduce interest rate spreads.
A number of factors have contributed to these high spreads,
such as limited information on the creditworthiness of
borrowers; high loan default rates; high operating costs of
commercial banks; high costs associated with legal processes;
and the lack of effective competition. The Bank of Zambia is
addressing these issues under the FSDP.
The Credit Data (Privacy) Code and the Credit Reference
Services (Licensing) Guidelines were issued to facilitate the
establishment of credit reference bureaux. Subsequently, the
Credit Reference Bureau Africa Limited (CRBAL) was formally
launched in January 2007. This is allowing for increased
credit extension because of better risk profles; reduced credit
processing costs and times as well as loan write-offs; lower
borrowing costs; and an enhanced credit culture.
All commercial banks have since signed the Service Level
Agreement (SLA) with CRBAL. The Banking and Financial
Services Act (Provision of Credit Data and Utilisation of Credit
Reference Services) Directive was issued in December 2008.
All banks and NBFIs are required to use the services of the
credit reference agency before granting credit to a customer.
The establishment in 2007 of Zambia's hrst credit reference
bureau has been instrumental in lowering commercial bank
interest rates and charges.
In order to enhance the market for government securities, BoZ
has introduced a formalised set of rules and regulations to
facilitate secondary market trading of government securities.
The development of a more liquid and active secondary market
for such securities will deepen the fnancial sector and support
the ability of the private sector to raise fnance.
COMMERCIAL BANKS
The Zambia National Commercial Bank now known as
Zanaco was established by government in 1969 to foster
national development. It is the countrys largest bank in terms
of outreach and, according to fndings in the FinScope survey, it
also has the largest market share in terms of accounts held.
Zanaco partnered with Dutch bank Rabo Bank, a highly
credible bank with a triple AAA rating, in April 2007. Under this
partnership, Zanaco has designed broad-based, affordable
banking services for its retail customers and structured
innovative fnancial solutions for large corporations, agri-
business and the public sector, and has invested substantially
in a versatile banking information technology platform. Zanaco
currently has 450 000 customers, strong product innovation
(having been the frst bank to introduce ATMs and mobile
banking), 57 branches and agencies and in 2011 partnered with
Zampost to increase its presence country-wide.
Finance Bank Zambia (FBZ), one of the leading and largest
private banks in Zambia, has operated in the country for almost
23 years. During this time it has registered strong performance
and growth, from an initial single branch operation in Lusaka to
an impressive network of over 50 outlets strategically positioned
Finance Bank - Photo courtesy: Ren Hartslief
29
30
in major commercial and agricultural centres across the
country. Key directorates and divisions are: fnance, operations,
credit, institutional/corporate banking and marketing, treasury,
international banking and products, information systems, and
audit and compliance.
Ecobank Zambia is a full-service bank, providing a broad
range of products and services to government, fnancial
institutions, multinationals, international organisations, SMMEs
and individuals. The bank aims for a balanced business mix of
retail, wholesale and investment banking activities.
Ecobanks parent company, Ecobank Transnational
Incorporated (ETI) was incorporated in 1985 and has its
headquarters in Lome, Togo. Ecobanks vision is to build
a world-class pan-African bank and to contribute to the
economic and fnancial integration and development of the
continent. Owned by more than 180 000 local and international,
institutional and individual shareholders, Ecobank has over
11 000 employees from 29 different countries in over 700
branches.
Ecobank Zambia opened its doors to the public on 24 August
2009. ts head offce is located at the Arcades roundabout in
Lusaka, with two additional branches opened in the capital
during 2010, as well as a branch in Kitwe.
Founded in 1996, Investrust Bank Plc is a listed bank on the
Lusaka Stock Exchange and has branches in Lusaka, Chipata,
Luangwa, Kitwe, Chililabombwe, Solwezi and Livingstone.
Furthermore a branch has been opened in the mining town of
Lumwana, making nvestrust the frst wholly indigenous bank to
establish a fully fedged branch here. As at December 2010, its
assets totalled approximately US $135 million.
NON-BANK FINANCIAL INSTITUTIONS
Non-bank fnancial institutions (NBFs) include all fnancial
institutions that are not classifed as commercial banks, and
include leasing and fnance companies, housing fnancial
institutions (building societies), savings and credit institutions,
development fnance institutions, microfnance institutions
and bureaux de change. NBFIs present an opportunity for
transforming the fnancial sector in Zambia through their role in
long-term lending and provision of fnancial services to under-
served rural consumers and small businesses often ignored by
traditional banks.
Development Finance Institutions (DFIs) were originally
established and funded by government under separate statutes.
The only remaining DFI is the Development Bank of Zambia
(DBZ), which provides medium to long-term development
fnance. DFs were brought under Bank of Zambia (BoZ)
supervision after the amendment to the Banking and Financial
Services Act (BFSA) in 2000, with DBZ restructured in 2002.
The DBZ is currently governed by the Development Bank of
Zambia (Amendment) Act of 2005.
DBZ has relaunched its Enterprise Development Projects multi-
purpose credit facility. Originally launched in 2003, it comprises
an investment credit line for supporting capital investments and a
short-term credit line for fnancing export pre-shipment activities.
Under BoZ supervision since the early 1990s, leasing
companies are commercial ventures established under the
Companies Act, and their principle activity is the provision of
asset-based fnance.
Housing Finance Institutions (HFIs), which traditionally provide
banking services and mortgage lending, have tended to take
two major forms namely, building societies and employer-
sponsored housing loan schemes. Building societies are
governed by the Building Societies (Amendment) Act of 2005.
The countrys three building societies are deposit-taking
institutions and include Finance Building Society, Pan African
Building Society and Zambia National Building Society (ZNBS).
Rural banking and microfnance institutions deal directly
with the public, take deposits and make loans to individuals.
Established under various pieces of legislation, such as the
National Savings and Credit Bank (NSCB) Act, Cooperatives
Act and Societies Act, the NSCB and microfnance institutions
were brought under BoZ supervision following amendments
to the BFSA in 2000. In 2005, amendments were made to the
NSCB Act.
Bureaux de change deal in foreign exchange, particularly the
British Pound, US Dollar and South African Rand, although
those established by major banks transact in many other
convertible currencies. The sector is governed by the Banking
and Financial Services (Bureau de Change) Regulations, which
were amended in 2006.
Pension funds
Pension scheme management became more challenging in
the wake of the global fnancial crisis, with the decline in stock
market valuations having negatively affected the provision of
pensions worldwide. Pension funds in Zambia have not been
spared the crisis, with a total holding of more than 70 percent of
the total market capitalisation on the Lusaka Stock Exchange.
There are several types of pensions on offer in Zambia
personal pensions, group occupational pensions and public
pensions. Unlike the National Pension Scheme, which is
compulsory and is designed to provide social security in the
form of a basic pension, occupational group pensions are
supplementary schemes sponsored by private sector employers
and employees.
The National Pension Scheme is run by the National Pension
Scheme Authority (NAPSA). Other major pension funds
comprise the Public Sector Pension Fund (PSPF) and Local
Authorities Superannuation Fund (LASF). The Association of
Pension Fund Managers (APFM) represents the combined
interests of these pension funds, as well as some smaller ones.
The cumulative number of NAPSA members registered since its
inception in 2000 is slightly above 900 000, with about 600 000
active members and 18 000 employers registered.
In 2011, government allocated K358.6 billion to the Public
Service Pension Fund to help ease the hnancial challenges
faced by the institution and reduce waiting periods for
public service retirees before they obtain their pension
benehts.
Under the Financial Sector Development Plan (FSDP), pension
scheme legislation is being updated and harmonised. The
Pension Scheme Regulation Act of 1996, which provided for
the administration and regulation of all pension schemes with
32
the exception of the National Pension Scheme (governed by
the National Pension Scheme Act), has been replaced with the
Pension Scheme Regulation (Amendment) Act, which came into
effect during 2006. Draft legislation to harmonise the industry
has been submitted to the Ministry of Finance and National
Planning.
The FSDP also recommends enhancing tax incentives for
pension funds; effecting consumer education programmes;
conducting a study on viability of personal pension plans;
training local actuaries and establishing investment guidelines.
Measures to build capacity at the Pensions and Insurance
Authority (PIA) have been put in place, with the programme
having included setting up systems and manuals as well as
seminar participation.
PIA has been involved in the formulation of the National Social
Security Bill under the Ministry of Labour and Social Security,
which seeks to bring NAPSA under the supervision of the
Registrar of Pensions and Insurance at PIA. Proposals to
amend the provision in the Pension Scheme Regulation Act,
which exempts NAPSA from supervision, have been submitted
to government.
The insurance industry
The insurance industry consists of insurers, re-insurers,
brokers, assessors, adjustors and policy-holders. In 1970 the
Government of Zambia formed the monopoly Zambia State
Insurance Corporation (ZSIC) in order to provide low cost
insurance to indigenous Zambians. This state of affairs existed
until the liberalisation of the industry in 1992.
The Insurance Act of 1997 is the principal piece of legislation
governing the supervision and regulation of the insurance
industry. As an insurance supervisor, the Pensions and
nsurance Authority (PA) is tasked with maintaining an effcient,
fair, safe and stable insurance market for the beneft and
protection of policyholders.
A number of local insurers have since emerged and competition
has increased; however, the market is still relatively small. The
The Zambia State Insurance Corporation - Photo courtesy: Ren Hartslief
34
ZSIC currently has the broadest distribution network, which
covers all nine provincial centres and some critical districts.
The corporation has launched an aggressive marketing drive to
promote its agricultural products in rural areas.
The Insurance Act was amended in 2005 under the FSDP to
include:
Compulsory local shareholding in insurance companies
Exhaustion of local capacity prior to carrying out reinsurance
Fostering investment of insurance funds in Zambia
Revisiting insolvency requirements and investment guidelines
Asset management
Madison Asset Management Company Limited (MAMco) is a
newly established investment management company licensed
by the Securities and Exchange Commission to provide
investment advisory and fund management services. MAMco
is a 100 percent subsidiary of Madison Financial Services
Company Limited (MFSL), which is a respected fnancial
services group in Zambia, having 100 percent shareholding
in leading insurance companies Madison General Insurance
Company Zambia Limited and Madison Life Insurance
Company Zambia Limited.
LUSAKA STOCK EXCHANGE
The Lusaka Stock Exchange began operations on 21 February
1994 and presently operates from the 3rd Floor of Farmers
House, Central Park, along Lusakas Cairo Road. 2011 marked
the exchanges 17th year of trading.
LuSE is an effcient, orderly and transparent market for shares
and bonds (GRZ Bonds and Corporate Bonds). To achieve this
effciency, transparency and orderliness, LuSE is structured
as a modern stock exchange, conforming to world standards.
The LuSE has automated its Trading and Settlement systems.
Brokers are able to trade in the comfort of their offces. As a
contingency measure, the LuSE has other onsite computers
which brokers can use. This was necessitated by the power
outages the country was experiencing. LuSE invested in a
generator to curb this problem.
LuSE does not issue physical certifcates, instead keeping
shares in a Central Share Depository (CSD). This allows for
more effcient trading, with transactions settled within three days
(T+3). Settlement involves the verifcation and confrmation
of the trade and the movement of funds from the buyer to the
seller and shares from the seller to the buyer.
LuSE has scored a number of successes in the 17 years
of its operation. It boasts 21 listed stocks spread across 20
companies and eight quoted stocks covering a broad section
of sectors, which include hotels, manufacturing, agriculture and
processing, banking, mobile telecommunication, oil marketing,
retail trading, investment and property. The quoted tier is for
companies which do not meet all the listing requirements.
The two major purposes of a stock exchange are to facilitate
the raising of cheaper capital for business as well as allowing
the secondary trading of securities, thereby creating liquidity for
investors. More and more Zambians are becoming shareholders
in the companies trading on LuSE. While at inception there
were only a few domestic individual shareholders, this number
has risen to over 30 000.
Overall, the stock exchange has been performing well despite
the diffcult state of the economy. The Stock ndex (with a base
year of 1997) was at 2 794.89 points at the beginning of 2010
and was at 2 969.15 points by 23 September 2010. Clearly
investors in the market are experiencing some capital gains.
Although listings have slowed down, the exchange is working
on a platform for small and medium enterprises (SMEs) to raise
capital, and also encouraging the public sector to raise funds for
various developmental projects through corporate bonds.
Visit: www.luse.co.zm for more information
35 35
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Mining & Copperbelt
Rich mineral resources, in particular copper and cobalt mines,
have attracted much-needed foreign exchange earnings to
Zambia. Privatisation of the formerly state-owned mines, along
with several years of high demand and commodity prices for
copper, has seen a great deal of investment in the industry and
an expansion in mineral production, with the establishment
of new mines and the recapitalisation of existing ones. The
Copperbelt is the epicentre of the mining industry as well as the
vast majority of the countrys industrial activity.
As Africas largest copper producer, Zambia is looking to
diversify its copper-dominated mining industry by encouraging
investments in exploration and mine developments in other
minerals, such as cobalt, zinc, manganese, uranium, precious
metals and gemstones. The country also possesses potentially
exploitable oil reserves, and presently stands on the threshold
of a new era for its mining sector.
The path to growth
The mining sector has substantially recovered from the
economic crisis of 2008 and subsequent drop in metal and
mineral prices worldwide. Although a number of factors
challenged the industry during 2009, various others supported
its growth, particularly the commencement of commercial
copper production at Lumwana mine and improving metal
prices in global markets.
From a low of just US $2 812 per metric tonne in December
2008, the average price of copper on the international
market rose to US $7 202 per metric tonne between January
and September 2010. Furthermore, with the resumption of
production at a number of copper mines and new investments
boosting production levels at others, copper output rose by
17.7 percent in 2010, reaching a record high of 820 000 metric
The mining sector is
expected to be one of the
main catalysts for economic
growth during 2011, with the
coming on stream of major
new copper projects and
increased production from
other ventures.
38
tonnes. Copper exports for 2010 were forecast to increase to
US $4 612 million from US $3 179 million in 2009.
On an annual basis, cobalt output at 8 781.85 metric tonnes
was 49.4 percent higher than the 5 879.14 metric tonnes
produced in 2009. The improvement in output was due to the
resumption of production at Konkola Copper Mines (KCM) and
Chambishi Metals Plc.
Future prospects
Economic diversifcation efforts notwithstanding, the mining
sector is still considered by government to be crucial to national
development. Furthermore, despite the setbacks experienced
following the crisis in global markets, Zambia remains a favourable
destination for investment, with its abundance of minerals and
exceedingly rich copper deposits rendered even more attractive
by the countrys political and macroeconomic stability.
In 2011, the outlook for copper prices continues to be bright,
with the metal having reached new highs of US $9 002 per
metric tonne in May 2011. With the start of production at the
Konkola Deep mining project, copper output is projected to
increase to 1 million metric tonnes per annum by 2012. Cobalt
production rose to 2 236 tonnes in the frst quarter of 2011 from
1 989 tonnes in the same quarter of 2010.
Revenue from mining tax is budgeted at K1 858.4 billion
in 2011, of which K404.7 billion will come from Mineral
Royalty Tax and K554.8 billion from Mining Tax Arrears.
MINERAL POLICY & DIRECTION
The Ministry of Mines and Minerals Development enacts
mineral policy with the assistance of the departments of
Geological Survey, Mines Development and Mines Safety.
Government adopts a purely regulatory and promotional role
with regard to mining activities. Minerals in the ground are
vested in the President on behalf of the state, with the right to
explore or produce minerals authorised by a licence granted
under the Mines and Minerals Act.
n promoting the growth and diversifcation of the mining
industry, the Zambian government is committed to continue:
Promoting exploration in the hope that more new mines will be
opened by 2015
Creating a special status for non-traditional mineral exports,
such as nickel, uranium, gold and platinum, and declaring
them priority minerals under the Zambia Development Agency
Act
Promoting large investments in the mining sector which have
a transformational impact on Zambia in terms of job creation,
export earnings, supply and contracting by the Zambian
business community
Encouraging value addition within Zambia, mainly involving
copper, cobalt and gemstone products
In order to encourage Zambian ownership of part of the
operating entities, government is working out measures to
ensure that, where possible, mining companies operating in
39
The Scaw Metals Group (Scaw) is an international group, manufacturing and or distributing a diverse range of steel
stranded and wire products. Its principal operations are located in South Africa, South America, Canada and Australia.
Smaller operations are in Namibia, Zimbabwe and Zambia. Scaws Specialist cast products manufactured for mining,
railways and engineering industries include:
Afrope Zambia Ltd in proud association with Scaw Metals South Africa
Scaw Metals is trading by the name of Afrope Zambia Ltd
(African Wire Ropes).
Scaw has produced these products for these industries
since 1921 and is a technological leader in this eld and
manufactures to national and international standards.
Scaw supplies globally and also offers nationwide distribution
in South Africa through its strategically located branches
throughout Southern Africa.
KITWE
Tel: +260 212 210622 / 212174
Fax: +260 212 216468
E-mail: afrope@microlink.zm / sales@afrope.co.zm
Website: www.scaw.co.za
Liltinq equiment Yale roducts
Reliance attachments
Rolled steel
wire roe and strand
Chain roducts
Cast alloy iron roducts
Forqed and cast steel qrindinq media
Steel and alloy castinqs
Fibre roducts
hiqh tensile wire roducts
FC strand and wire roducts
Mild steel commercial wire and roducts
Screen mesh
Roe and chain slinqs
Ndola Lime Company Limited (NLC) is a subsidiary of ZCCM-IH. The Company was founded in 1931 as Northern Rhodesia Lime Company Limited. Initial lime
burning trials were carried out in woodfred, hollowed-out anthills at Misundu 16 km North of Ndola close to the Congo border.. The results were encouraging and
this led to the construction of underground pot kilns. A second quarry was opened in the late 1930s at Chipulukusu before the company moved to its present
location at Mwatesi in 1962.
MAJOR USES OF LIMESTONE
Metallurgical Operations
Used as neutralizing agent for PH control in the mining industrys metallurgical processes. Flux Stone (10mm to dust) and kilnstone (10-35mm) is used in
Smelters to fux the metal ores to form slag.
Glass Manufacturing
Limestone improves properties of calcium silicate products such as tumblers, glasses and bottles. Limestone inhibits chemical attack, makes it less brittle and
stronger but improves appearance and heat shock of glass.
Building Industry
n building industry fuxstone is used to produce concrete blocks (both load bearing and non-load bearing building blocks). 10 to 19 mm aggregates from lime
works is extensively used in both the foundation and slab of buildings.
Coal Mining
To enhance mine safety, pulverised limestone is applied on working areas in order to dilute the highly combustible and explosive coal dust.
Cement Manufacture
Limestone constitutes over 80 % of material needed for cement manufacture.
Sugar Rening
n the production of sugar from both cane and beets, the crude sugar juice (sucrose) is treated with lime. This forms insolubles that are fltered to remove
phosphatic materials and organic acids. The resulting juice is further treated to achieve greater purity of sugar solution which is ultimately crystallised and
packaged.
Water Treatment
Hydrated Lime is mixed with other coagulant aids in water purifcation to achieve a clear suspension and serve as a flter aid. Lime also assists in removal of
bacteria and temporary hardness due to the presence of bicarbonates.
Leather Tanning
Lime suspensions are used for de-hairing and plumbing hides preparatory for leather tanning.
Salt Production
Hydrated Lime is used by salt producers in the purifcation of sodium chloride brines in order to produce good grade salt.
Sewage Treatment
Lime is used as a sanitation aid in sewage treatment. Application is extended for use in septic tanks and pit latrines to remove the stench. When employed with
other chemicals lime conditions sewage sludge for effcient disposal.
Sterilization
Due to its high PH value, resulting caustic alkalinity of Hydrated Lime has useful germicidal properties which destroys most pathogens.
Animal Dips
Lime stabiliser is used in animal dipping. The lime stabiliser which contains 23% hydrated lime stabilises the dip in the dip tank by reducing the acidity level.
Bleach Chicken Litter
Hydrated lime is applied on foors of poultry houses which are covered with a loose litter material of straw, hay or saw dust which when wet, soggy and matted,
tend to harbour coccidiosis and parasitic poultry diseases.
Fertilizer Manufacture
n mixed fertilizer manufacture, some hydrated lime is added in the process to make the fertilizer more free fowing (less caking), reduces bag rotting by
neutralising minute traces of free acid still present in the super phosphate and contribute a valuable plant nutrient magnesium to the mix.
Lime Mortar
Hydrated Lime can be used alone or mixed with sand or cement as a mortar/plaster. Lime improves the plasticity of the mix and eliminates the need for
rewatering, resulting in well flled water tight and faster bricklaying.
White Washing
Lime is used for white washing of buildings. Salt, aluminium sulphate and pigments are also added to achieve desired colour shades.
Tel: +260 212 612002/043
Fax: +260 212 612063/615275
PO Box 70057, Ndola
1523 Depot Road, Ndola
E-mail: sales@ndolalime.co.zm
Road Construction
Due to its plasticity nature, Hydrated Lime is used in road construction as a binder or stabilizer.
Other Uses
Hydrated lime is also utilised in the paint, explosive and varnish manufacture to mention but a few.
Ground lime rock is used increasingly by farmers as Agriculture lime, for neutralizing acidic soils and
improving workability of soil.
CORPORATE SOCIAL RESPONSIBILITY
As a way of supporting the community, Ndola Lime Company Limited has taken up various community
development, empowerment and other activities in the country. Among them is construction of Yengwe
Market in Northrise, providing two way communication radios to Zambia Police as well as fnancial and
material support to the community at large. Sponsorship of Lime Hotspurs Football Club is another
responsibility that the NLC has taken up.
RECAPITALISATION OF LIME PLANT PROJECT
Ndola Lime Company Ltd, will install a new production line, consisting of a new Crushing and Screening
plant complete with associated conveyors, 500 tonnes per day (TPD) state-of-the art Vertical Kiln, Coal
Handling and Pulverizing plant, 15 TPH Hydrating plant, a Packing plant, weigh bridges and a new
33/11kV substation and interconnecting substations and all support infrastructure. The entire Project
was estimated at US$74million. In addition to the installation of the new plant, NLC has embarked on
revamping the existing plant to improve its effciency and reduce on maintenance costs.
NEW VERTICAL KILN
A new state-of-the art vertical kiln for quicklime production at 500 tpd has been purchased and will
begin its installation in the fnal quarter of this year, 2011. This dual fred kiln will run on both HFO and
a relatively cheap fuel source, coal. By comparison, this plant is noted for its lower fuel consumption
and more effective heat utilization at a higher quicklime output. Operation of this kiln in conjunction
with refurbished existing plants will not just push annual quicklime output from the current 170,000
tonnes to excesses of 300,000 tonnes but will also mean excellent quality of quicklime to fully beneft
customers.
NEW HYDRATING PLANT
A new fully automated hydrating plant supplied by Cimprogetti (Italy) to replace the current plant is
currently being installed and is earmarked for completion by October 2011. This new technology will
run more effciently and produce hydrated lime of better quality. Like the new vertical kiln, this plant will
meet and exceed the applicable statutory and regulatory limits on dust emissions.
RECAPITALISATION PROJECT CONSTRUCTION SITE
ELECTROSTATIC PRECIPITATOR
RADIOS HANDOVER
EUCALYPTUS SEEDLINGS
ISO 9001:2008
FM 525785
42
Zambia list their shares on the Lusaka Stock Exchange (LuSE).
Companies are encouraged to work closely with the Citizens
Economic Empowerment Commission (CEEC) so as to
maximise benefts to Zambians through targeted joint ventures.
Tax rates
Mining tax is 30 percent: this rate has been extended to all
mining companies, not just those involved in copper and cobalt
production. Taxable income above 8 percent of gross income is
taxed at 15 percent and mineral royalty attracts tax of 3 percent.
The capital allowance rate for capital equipment is 100 percent.
MINING OPERATIONS
World-renowned mining companies are involved in mining
and prospecting operations on the Copperbelt as well as in
Central, Western and North-Western provinces, with existing
prospecting licences and new applications encompassing
roughly 50 percent of the Zambian land mass.
Formerly one of the principal players in the Copperbelt mining
industry, Zambia Consolidated Copper Mines (ZCCM) Limited
was formed in 1982 with the merger of Roan Consolidated
Mines and Nchanga Consolidated Copper Mines. Until 31
March 2000, ZCCM Ltd was a 60.3 percent state-owned mining
company in which Zambia Copper Investments Ltd (ZCI), an
associate company of Anglo American Plc, held 27.3 percent
of shares, with the balance of 12.4 percent held by private
investors.
As part of the privatisation process, ZCCMs mining assets were
unbundled and sold off to the private sector in order to promote
diversity of ownership and minimise political and economic
risk. Its successor, ZCCM Investments Holdings Plc (ZCCM-
IH), is an investment holdings company with the majority of its
investments held in the Zambian copper mining sector. The
companys shareholders are the Zambian government with
87.6 percent and private equity holders with 12.4 percent.
Created from the privatised assets of ZCCM, Konkola
Copper Mines (KCM) is one of the largest mining and metals
43
companies in Zambia. Vedanta Resources Plc, a London listed
FTSE 100 metals and mining group, owns 79.4 percent of the
share capital of KCM.
KCM comprises mines at Konkola (copper), Nchanga (copper
and cobalt) and Nampundwe (pyrite). There is a tailings leach
plant at Nchanga and a smelter at Nkana. Overall copper
cathode production increased to 507 000 metric tonnes in the
2010 fnancial year.
The Konkola Deep Mining Project (KDMP) involves expanding
the production of copper ore at the Konkola mine in
Chililabombwe from 2 million tonnes per annum to 7.5 million
tonnes per annum by accessing the rich ore body that lies
beneath current operations. The mid-shaft loading station
at KDMP was commissioned in March 2010 as scheduled.
Construction work on the bottom shaft sinking is progressing
well for completion by the end of 2011. The cost of the KDMP
project has been revised upward from US $674 million to
US $973 million.
Nchanga Mine near Chingola consists of a number of open pits,
with mining currently concentrated on the main Nchanga pit as
well as an underground mine that accounts for around
45 percent of the total copper produced at Nchanga.
The Nchanga process plants comprise two concentrators, which
separately treat ore from the open pit and the underground
mine, as well as a tailings leach plant producing copper
cathodes, an acid plant and a state-of-the-art smelter with a
capacity of 300 000 tonnes per annum. The smelter was built
to handle not only the increased output from KDMP but also
concentrates from other mines in Zambia.
Glencore International AG and First Quantum Minerals (FQM)
Limited acquired the Mufulira and Nkana divisions of ZCCM
through Mopani Copper Mines (MCM) in 2000. Shareholding
is 73.1 percent Glencore, 16.9 percent FQM and 10 percent
Newly commissioned electrostatic precipitator - Photo courtesy: Ndola Lime Company
Gomes is a private company limited by shares and wholly owned by Zambian shareholders. The company
is wholly owned by the Gomes family of Ndola. The companys main business is transportation and
construction.
The current main business lines of the company are listed below:
- Transportation of 98% sulphuric acid
- Road construction and other civil works, and
- Small scale minerals mining and processing
- Real estate investment
- General contracting
Transport Business
The company has grown to become the biggest transporter of 98% sulphuric acid on the copperbelt and in
Zambia as a whole. Gomes currently operates 105 trucks, tankers and trailers. Of these, 95 are acid trucks
and tankers which transport acid to various clients in Zambia, Malawi and the DRC. This feet is planned to
increase to 105 tankers by December 2010.
Our clients in this business are mining companies that use acid in Zambia and the DRC. We have been able
to handle at least 25,000 tons of acid per month and are planning to increase capacity to 35,000 per month
by 31 December 2010.
Construction Business
The construction business has particularly grown signihcantly and the company is fully qualihed to handle
road construction assignments of any value both for public and private sectors. The company has recently
acquired more construction equipment to strengthen the construction division. We are still in the process
of expanding this business line in order to meet the increasing demand for construction works both on the
copperbelt province and countrywide.
Under this business we handle various construction assignments including but not limited to: road construction,
civil structures construction, bush clearing and earth works and geo-technical assignments.
We have on going projects at Chambishi Copper Smelter Ltd (CCS), NFC Africa Mining Ltd (NFCA), Zambia-
China Trade & Economic Co-operation Zone, and construction of a Shopping Mall in Ndola, in addition to
various government jobs.
Equipment Hire Business and General Contracting
Gomes has a strong earth moving assets base. In the low seasons, we sometimes hire out some of this
equipment especially to mining companies, but also to other transporters.
Gomes also does other construction works such as dam construction, leach pads and ponds, and land
clearing. All the above business lines are currently active and fully operational.
Gomes has the hnancial strength to support the assignments we may agree to do for you. The companys
shareholders have a shared vision for the growth of the company and are committed to its continued
leadership and success in the chosen business helds and/or markets.
Millennium Shopping Mall Ltd
This company is the managing company for the Millennium Shopping Mall in Mitengo housing area in
Ndola. The mall is currently under construction and is expected to cost US$15m. Millennium Shopping
Mall Ltd is a subsidiary of Gomes Haulage Ltd. The mall is being constructed by Gomes Haulage
Ltd.
Capability and Experience
Gomes is the largest local construction company operating on the copperbelt and has been a
contractor of choice for most mining companies on the copperbelt both local and international.
GOMES HAULAGE LTD
For Transport, Roads and Civil Structure Construction,
Mining and Minerals Processing, and
General Contracting Businesses
For these clients, we have done assignments ranging from road construction, mining
area earth works and preparations, civil construction, and general earth works
assignments.
In addition, Gomes has unequalled capacity on the copperbelt to transport acid from
various production sites to any place in Zambia and the region. Backed by over 10
years of experience and a fat management structure the company offers fexible and
client specihc solutions to acid transportation problems faced by its clients. Gomes
are very experienced in transportation and logistics for acid and we guarantee safe
and timely delivery of the acid to all our clients in Zambia and the region. We currently
transport acid for most mines in Zambia and are also serving other countries in the
region especially the DRC and Malawi.
Gomes policy is to exist as a law abiding corporate entity. Therefore all its tankers
are licensed by the Environmental Council of Zambia (ECZ) in accordance with the
environmental regulations contained in the Laws of Zambia. Our sources of acid are
good corporate citizens of the local community and ensure that their operations are
strong on safety and environmental friendliness.
Gomes has a good safety record in so far as acid transportation and accident recovery
are concerned. While it is not possible to completely avoid road accidents, Gomes
have managed to keep accidents to a very low level mainly due to careful recruitment
of drivers and mechanical staff, and attention to safety.
Gomes has a rapid recovery team equipped to neutralize acid spillages and repair or
recover tankers in transit.
Operations
Gomes has over 15 years experience in the construction industry. The company has
performed high prohle contracts and is fully registered with NCC to handle large
contract assignments. We are therefore able to handle large contracts for both
government contracts and private sector contracts.
Our New Crusher Plant
Gomes has recently acquired a mobile crusher plant with a capacity of crushing
80 tons of material per hour. The plant will mainly be based in Ndola but may be
moved easily to new areas depending on the business needs of the company in this
regard. Currently the plant is deployed to the border post construction project in
Kasumbalesa.
Mining Projects
Gomes has secured over 7 prospecting and mining licences for copper and cobalt
and tungsten directly or indirectly. We are currently prospecting for minerals on all
of them. However one of them has already been substantially completed and we are
planning to invest around US$2m in concentrating copper sulphide from this mine
in Solwezi area on a small scale basis. The output from this mine will be supplied to
foreign or local buyers.
PO Box 71827, Ndola, Zambia
Tel/Fax: +260 212 650160
Tel: +260 212 650452
E-mail: l.gomes@gomeshaulage.com
46
ZCCM-IH. Mopani has output capacity of 250 000 tonnes of
copper a year and 2 200 tonnes of cobalt, making it Zambias
second-largest miner by installed capacity.
Mopanis operations consist of four underground mines, a
concentrator and a cobalt plant in the town of Kitwe and an
underground mine, concentrator, smelter and refnery in the
town of Mufulira. The capacity of the Mufulira Copper Smelter
is being expanded in phases to 870 000 tonnes of concentrate.
The company also has four SXEW plants (Solvent Extraction
and Electro-winning), two at Mufulira and two at Nkana. In
2010, MCM commenced plans to undertake feasibility studies
on sinking shafts at Nkana mine to access further copper ore
resources and extend the life of the mine.
First Quantum Minerals (FQM) owns 80 percent of the
Kansanshi open pit copper mine in Solwezi, North-Western
Province. Gold is also produced. Kansanshi has the capacity to
continue producing oxide until about 2035. The mine produced
230 800 tonnes of copper in 2010 compared with 244 979
tonnes in 2009. Over the same period, gold production rose to
109 600 ounces from 99 936 ounces.
Phase one of a two-phase project to expand Kansanshis
annual copper production capacity from the current 250 000
tonnes to 400 000 tonnes by 2015 is underway. This initial
47
phase, which should be completed by the end of 2011,
is expected to increase annual production capacity to
approximately 285 000 tonnes. It focuses on expanding the
annual treatment capacity of the oxide circuit and will include
the use of relocated equipment from the recently closed Bwana
Mkubwa copper SX/EW plant as well as new installations.
Construction of phase two is expected to start in the second
half of 2012, with commissioning targeted for the frst half
of 2014. This phase will focus on the construction of a new
concentrator, and has a capital budget projected in the range of
approximately US $350 million.
Furthermore, a major programme of resource development and
exploration drilling is underway at Kansanshi. This includes
140 000 metres of core drilling focused on extensions of the
current Kansanshi resource around the Main Pit and Northwest
Pit as well as resource defnition on the Southeast Dome
prospect and a series of systematic regional drill traverses over
the entire Kansanshi Dome (approximately 10 x 6 kilometres).
Large scale mining licenses for the development of FQMs
Trident project, which comprises the Sentinel copper deposit
and the Enterprise and Intrepid targets, were obtained in April
2011, giving the company the exclusive rights to carry out
mining operations here for a period of 25 years. Based on
an internally-generated resource estimate, the company is
proceeding with the design of a project that will initially produce
150 000 tonnes of copper in concentrate annually, rising to at
least 300 000 tonnes.
One of the worlds largest copper mines to be developed
over the last decade, the Lumwana open pit mine in North-
Western Province, situated some 220 kilometres northwest of
the Copperbelt and 65 kilometres from the provincial capital of
Solwezi, is 100 percent owned by Equinox Minerals Limited.
Lumwana comprises two major deposits, Malundwe and
Chimiwungo, and has a 37-year mine life. Other metals such as
gold, cobalt, silver and uranium are also present.
Lumwana, which started commercial production at the end of
2008, positions Equinox as one of the worlds top-20 copper
producing companies. At initial design capacity, Lumwana is
processing about 20 million tonnes of ore per year. Growth
opportunities include phased expansions of the mine and plant
to increase process throughput rates to 24 million tonnes per
annum by the end of 2011 and potentially 35-45 million tonnes
per annum thereafter.
Equinoxs investment of some US $762 million in the project is
the biggest single investment in Zambias history. Over 2 500
jobs were created during the construction phase, and more than
1 000 permanent jobs now production has begun.
Lumwana mine produced 33 939 tonnes of copper in
concentrate during the fourth quarter of 2010, with production
for the full year totalling 146 690 tonnes and thus exceeding the
mines full-year production target of 135 000 tonnes. Production
targeted for 2011 is 145 000 tonnes copper in concentrate.
Equinox has been mining high-grade uranium zones at its
Lumwana Mine, and uranium ore stockpiles are being built up
on site. The company continues to assess the possibility of
48
developing a uranium process plant at Lumwana, subject to
offtake, marketing and fnancing arrangements.
Luanshya Copper Mines (LCM) comprises one of Zambias
oldest mines, the Baluba copper and cobalt mine which,
along with Luanshya Mine, was originally operated by the now
defunct Roan Antelope Mining Company of Zambia (RAMCOZ).
Reopened in 2004, Baluba Mine has a lifespan of over 20 years
and contains cobaltiferous ore and total reserves estimated at
32 500 000 metric tonnes grading 2.48 percent copper and
0.17 percent cobalt.
China Non-Ferrous Metals Corporation (CNMC) has a majority
stake in LCM, having bought it in June 2009 from former
owners JW Holdings, who had placed Baluba on care and
maintenance at the beginning of 2009. Underground expansion
had resumed by the end of 2009, with CNMC investing
US $74 million in rehabilitating and replacing mining equipment
and machinery. CNMC plans to spend a total of US $400 million
on developing Baluba underground mine and the Muliashi
copper project, with US $300 million set aside to develop the
latter.
Construction of Muliashi Copper Mine, which is an open pit
unit, started at the beginning of 2010. Production is expected to
start in 2013 with 60 000 tonnes of copper per year and 1 500
tonnes of cobalt.
Current copper production capacity at Chambishi Metals Plc
is 25 000 tonnes per annum of blister grade copper. Situated
near Kitwe, Chambishi is also a substantial producer (one of the
largest in the world) of cobalt, with the capacity to produce
6 000 tonnes per annum of refned cobalt metal.
Eurasian Natural Resources Corporation (ENRC) Plc has
entered into a conditional agreement to acquire 100 percent
of Enya Holdings BV, which holds a 90 percent interest in
Chambishi Metals (ZCCM owns the remaining 10 percent).
It is the intention of the management of ENRC to combine
Chambishi with the groups existing operations in the
Democratic Republic of Congo (DRC), with ENRC planning
to invest approximately US $80 million in new and upgraded
production facilities at Chambishi by the end of 2011. The
investment should increase Chambishis copper production
capacity to 55 000 tonnes per annum of Grade A copper
cathode.
Chambishi Mine, which has copper reserves of approximately
33 million metric tonnes, is operated by NFC Africa Mining
Plc (NFCA), a joint venture between CNMC, with 85 percent
shareholding, and ZCCM Investment Holdings Limited
Introduction
Chambishi Copper Smelter Limited Company is a copper processing company, which was registered in Zambia on July 19,
2006. The Company was commissioned by the Republican President Mr. Rupiah Bwezani Banda on 19th October, 2009.
The total investment into the Company was three hundred million dollars ($300,000,000) for a designed annual output of
150,000 tonnes of blister copper and 300,000 tonnes of sulphuric acid as a by-product. It is so far the largest Zone enterprise
within Zambia China Economic and Trade Cooperation Zone (ZCCZ) and the largest project China has invested in Zambia and
the largest copper smelter the Asian country has invested in a foreign country.
The Company is heavily jointly invested by China Nonferrous Metal Mining Group Company Limited (CNMC) with 60% shares
while Yunnan Copper Industry Group Company Limited (YCIGC) has invested 40% shares. It has ve directors who are
entrusted with the responsibility of running the affairs of the company; Tao Xinghu, Yang Chao, Huang Shanfu, Zan Baosen
and Yu Zhongqin.
We attribute our success to excellent skills and the extensive knowledge of our employees. The strategic intent of the Company
is to produce good grade copper blisters as well as sulphuric acid to meet the needs of our customers. We combine our
innovative and proactive approach to the efciency of the company. The number of employed local staff stands at 932 and
additional jobs are expected to be created once the expansion of the smelter is completed. The company produces blister
copper ingot, bagged cobalt-copper alloy shots and sulphuric acid.
Sources of Material (i.e. concentrates)
Lumwana, Kansanshi, NFCA, Chibuluma South, Luanshya Copper Mines.
Support Services: Power Plant, Water Treatment Plant, Oxygen Plant, Analytical Laboratory, Engineering Services, Engineering
Equipment, Production/Technology.
Services: Administration, Human Resources, Finance, Supply/Logistics, Marketing, Safety/Health/Environment.
Technology
ISA technology for the production of copper (Smelter Plant) and acid (Acid Plant): top submerged oxygen enrichment smelting
process, electric settling furnace, PS converter blowing process.
The Companys mission statement is to operate as an effective and competitive company enterprise to meet the expectations
of shareholders through committed professional staff. While its vision is to operate as a viable and harmonious enterprise of
premiership in the Mining industry with sustainability and competitiveness. Its core values are; honesty, respect, integrity,
excellence, accountability, condentiality, impartiality, loyalty, responsibility, hardworking and professional management.
Safety, Health and Environment (SHE)
Chambishi Copper Smelter Limited which produces copper blister and acid is committed to achieving the highest performance in
Health and Safety with the aim of creating and maintaining a safe and healthy working environment throughout its business.
Safety Policy Statement
CHAMBISHI COPPER SMELTER LIMITED
seeks to create an accident-free environment
through management and employees working
as a team to remove the causes of accidents
at work.
Corporate Socio Responsibility
The Company is committed to address challenges
facing people in communities in which the
company operates and the country at large.
PO Box 23558, Kitwe, Zambia
/i\xU>\x
E-mail: dennis20106@hotmail.com
51
(15 percent). With proven reserves of 5.01 million tonnes at an
average grade of 2.19 percent copper, the mine was reopened
in 2003, currently produces about 24 000 tonnes of copper per
annum and employs 2 000 Zambians.
In December 2010, production commenced at Chambishi
Mines West Orebody Project. The West Orebody is expected to
produce 1 million tonnes of copper ore per year over a period of
25 years. Total reserves are estimated at 45 million tonnes with
a copper grade of 2.25 percent. The project will provide 1 500
new job opportunities. There are plans to develop the South
East Orebody, which would see a doubling of production output.
The commissioning of the Chambishi Copper Mine West
Orebody Project in 2010 brings total investment in Zambia
by China Non-Ferrous Metal Mining Company (CNMC) to
more than US $2.5 billion. Local employment opportunities
created by the company will total 20 000 by 2013.
Some US $340 million has been invested in the Chambishi
Copper Smelter, which is owned by CNMC (60 percent) and
Yunnan Copper Industry (Group) Co. Ltd (40 percent), the
latter being Chinas third largest copper producer and smelter
operator. This should double annual production capacity to about
300 000 tonnes of blisters and 340 000 tonnes of sulphuric acid.
The Chambishi Smelter is part of the US $900 million
investment in the Chambishi Multi-Facility Economic Zone,
which is expected to house 50 to 60 enterprises with the
capacity to employ 6 000 Zambians when the project is
completed in 2014.
A number of other companies mine Zambias rich copper and
cobalt reserves. Owned 85 percent by Metorex Limited, the
Chibuluma Mine is situated on the Copperbelt near the town
of Kalulushi. It consists of the Chibuluma West and Chibuluma
South sites, with ore treated at the Chibuluma South concentrator.
Increased production from the new mine at Chibuluma South
has replaced the depleted Chibuluma West mine.
52 52
Production at Chibuluma South has increased steadily. From
2006, when 363 311 tonnes of copper was milled, tonnage
rose to 571 090 in 2010, with the full impact of the expansion
programme becoming apparent and the copper head grades
having also improved, from 2.7 percent in 2006 to 3.4 percent in
2010. The mine produced 17 729 tonnes of copper in 2010.
Also owned by Metorex, the Sable Zinc operation near the
town of Kabwe in Central Province was commissioned in 2006.
The plant comprises a modern solvent extraction electro-
winning plant and an acid plant, and processes third party ores
from various suppliers in Zambia as well as Ruashi in the DRC.
It has a capacity of 12 000 tonnes of copper cathode a year and
1 100 tonnes of cobalt carbonate.
In view of the challenge of sourcing ore from the DRC,
production throughput is expected to remain constrained.
However, strategies to fnd additional local Zambian ores
and continued efforts to source DRC ores are starting to pay
dividends. Sable produced 4 050 tonnes of copper in 2010 and
42 tonnes of cobalt.
Munali Nickel Mine in Mazabuka was offcially re-opened
on 26 March 2010, after having been put under care and
maintenance in 2009 as a result of falling nickel prices. The
mines reactivation follows an investment of US $37 million in
Albidon Zambia Limited by Jinchuan Mining Group of China,
which owns 49.9 percent of Albidon with an option to acquire up
to 74 percent.
An upgrading programme is to increase production from
950 000 to 1.2 million tonnes of ore per annum by 2012.
Furthermore, the number of employees will be increased from
the current 345 to 450 by the time the mine is fully upgraded.
Nickel prices doubled between April 2009 and April 2010 and
have remained relatively stable ever since, at around
US $25 000-26 000 per tonne. Albidon expects to produce
56 000 tonnes of nickel concentrate in 2011. Furthermore, it
anticipates that a cash surplus of between US $291 million and
US $412 million will be realised over the seven to eight year
lifespan of the mine.
Exploration in the Siavonga area has been carried out by
Canadian-based Denison Mines Zambia Limited and Australian
company Africa Energy Resources (AER) Limited, with both
companies geared for full-scale uranium mining. AER Limited
controls more than 200 kilometres strike-length of prospective
rocks in Kariba Valley, and plans to begin production in early
2012, mining about 1.4 million pounds of uranium per year.
Emerald mining is concentrated in the Ndola Rural Emerald
Protected Area, with several large open-pit mines actively
worked by international companies. Zambian emeralds
comprise 20 percent of the world supply and are much sought
after because of their unique deep green colour.
London-listed Gemfelds Resources, which is part of
Pallinghurst Resources, owns a majority stake in Kagem
Mining Limited, the largest emerald mine in Zambia and one
of the most attractive emerald assets in Africa. While Kagems
licence area is extensive and includes fve emerald-bearing
belts, production to date has focused on a single open pit lying
on the Fwaya-Fwaya belt. Gemfelds also owns the Mbuva-
Chibolele and Kamakanga emerald mines, which lie on the
same Fwaya-Fwaya belt.
The global market for gemstones deteriorated markedly in
2008. Given the level of uncertainty prevailing in international
markets at the time, Gemfelds took the decision early in
2009 to reduce the scale of mining at Kagem, while improving
operational effciencies. Operating costs for the period of US
$189 per tonne of ore have remained below the historic average
of US $244 per tonne, and combined with cautious plans to
increase the scale of mining operations in the near term, further
effciencies continue to be sought.
Kagems unaudited total operating costs for the six months
ending 31 December 2010 totalled US $6.6 million, implying an
average production cost during the period of US $0.35 per carat
of emerald and beryl (compared with US $0.73 per carat for
year ending 30 June 2010). Production reached 109 438 carats
in the six-month period ending 31 December 2010, versus
34 463.37 carats in the six months to June 2010. In February
2010, a massive 6 225-carat rough emerald was discovered at
Kagem.
Other emerald producers on the Copperbelt comprise Grizzly
Mining, which is located about 50 kilometres south-west of
Kalulushi in the Lufwanyama Emerald Restricted Area (also
known as Ndola Rural Emerald Protected Area). The company
mines A-grade emeralds in vast quantities for export to markets
in America, Europe, the Middle East and Asia. Incorporated in
1997, the company has grown at a steady rate of 10 percent
per annum.
Photo courtesy: Grinaker
53
Grizzly owns the largest facility for washing gemstones in the
mining area (capable of washing 120 tonnes per hour), and
employs over 500 workers, 80 percent of whom come from the
local community. More than US $10 million has been invested in
modern machinery as well as human resources since 1999. In
2009 Grizzly acquired the neighbouring Chimpundu mine.
In addition to emeralds, Zambia possesses a number of other
precious stones, such as amethyst, of which the country boasts
the largest deposits in Africa. Gemfelds owns 50 percent of the
Kariba Amethyst Mine, which continues to deliver noteworthy
production volumes despite a heavy rainy season. Demand for
amethysts is stable in China and is growing steadily in India.
ncreased fnancial commitment by Gemfelds to further growth
and development at Kariba depends on the success of the
proposed acquisition by Gemfelds of a further 25 percent stake
in Kariba from the Zambian government.
Zambias only producer of lime, the Ndola Lime Company
(NLC) on the Copperbelt, produces limestone, quicklime and
hydrated lime. Most of its market demand comes from the
mining industry, followed by the construction sector. The
US $74 million recapitalisation programme underway at NLC
is set to increase production capacity and improve export
prospects of lime products to markets such as the DRC, Angola,
Malawi and Tanzania, where there is a growing demand for
hydrated lime.
NLC recorded quicklime production of 173 669 tonnes for the
fnancial year ended March 2011 the highest production
achieved since 1996/97 when output was 198 535 tonnes.
The 2010/11 fgures represent an increase of 25 percent
on 2009/10, and may be attributed to improved operations
following refurbishment of the Rotary Kiln Electrostatic
Precipitator (ESP) at a cost US $3.75 million. With the dust
abatement unit fully restored, the Rotary Kiln can be operated
for longer campaigns without environmental concerns. Work
was also undertaken on the Vertical Kiln.
Maamba Collieries Limited (MCL) is Zambias largest coal
supplier (some 80 to 85 percent of the countrys coal needs)
and currently mines two open cast mines in the Kanzize and
Izuma basins in Southern Province. Total reserves are
78.2 million tonnes of coal, out of which 60.2 million tonnes is
proven and 18 million tonnes is probable. The lifespan of the
mine is more than 70 years at a projected rate of production of
1 million tonnes of coal per annum.
In January 2008 the Zambian government transferred its
100 percent stake in MCL to ZCCM-IH Plc in order to revamp
operations at the coal mine, transform it into a viable business
entity and improve coal supply for enhanced industrial
production. At the end of 2009, equity partner Nava Bharat
Singapore Private Limited purchased a 65 percent stake in MCL
at a cost of US $26 million.
MCL is being redeveloped at an estimated cost of
US $93 million, with a new coal handling and washing plant
to be built. A further US $420 million is being invested in a
270-megawatt coal-fred power plant, which will feed into the
ZESCO grid, and is expected to be commissioned by 2014.
Maamba is expected to produce 360 000 tonnes of run of mine
coal in 2011, and should ramp up production to 1 million tonnes
per annum at peak production. At full production, MCL will
employ a total of 750 employees (compared with the current
labour force of 598), 300 of which will be employed at the
thermal power plant.
COPPERBELT BUSINESS
Synonymous with Zambias mining industry, the Copperbelt is
where most of countrys mineral wealth and the majority of its
mines are situated. Their location here is hardly surprising, as
the Copperbelt has the worlds highest-grade copper and cobalt
deposits, with tailings dumps often containing grades greater
than those of most hard rock mines.
The region has historically received the bulk of investment in
the mining industry, and is worked by numerous international
mining companies. It is also the location of several industries
involved in the downstream processing of minerals, and attracts
further exploration for new mineral deposits. The only major
copper mines outside the Copperbelt comprise Lumwana and
Kansanshi in North-Western Province.
In addition to the processing of copper and cobalt, production
on the Copperbelt comprises wood products, chemicals, bricks
and tiles, pipes, tyres, soap and sugar. Ndola is the centre of
many important industries and manufacturing concerns, with
activities including cement and lime production, cotton spinning,
and the refning of petrol. A number of manufacturers operate in
support of the mining industry, and are involved in construction,
gas supply, explosives, engineering, energy and transportation,
as well as producing heavy machinery.
The Chambishi Smelter has the capacity to produce fertiliser,
and this may be considered in future if there is enough market
for the commodity. Other recent Copperbelt industries include
Mukuba Breweries.
Chambishi Copper Smelter - Photo courtesy: Chambishi Copper Smelter
Open pit mining - Photo courtesy: Ren Hartslief
54
Agricultures contribution to Zambias Gross Domestic Product
(GDP) is around 23 percent, according to the Food and
Agriculture Organisation (FAO). Farming is also the source
of more jobs than any other sector in the country, providing
employment for some 85 percent of the workforce. Moreover,
agricultural activities are the main source of income for rural
Zambian women; a group that not only constitutes nearly two-
thirds of the rural population, but is also among the countrys
most impoverished and vulnerable inhabitants.
In what has been largely a challenging decade for agriculture,
the performance of farmers in the past two years has been
exceptional, and prospects for this promising sector have
never looked better. According to fgures from Zambia's Central
Statistical Offce, while overall growth in the Agriculture,
Forestry and Fishing sector has been good, rising from
-2.6 percent in 2001 to 6.6 percent in 2010, growth in the
Agriculture subsector has been extraordinary, with growth rates
catapulting from -6.0 percent in 2001 to 12.4 percent in 2009
and 12.9 percent in 2010.
Sustained growth over the past two years culminated in
a historic maize harvest of 2.8 million metric tonnes in
the 2009/10 season, along with increased output of other
major crops and livestock. In addition to favourable weather
conditions, much of this may be attributed to the positive
outcome of government initiatives, such as doubling the number
of benefciaries under the Farmer nput Support Programme
(FISP). In addition to better extension services and more
affordable inputs, higher Food Reserve Agency (FRA) producer
prices contributed to the rising food crop output.
In the wake of the huge advances made in arable agriculture,
government is intent on extending these gains to areas such
as livestock and fsheries by encouraging increased output
and greater productivity. As such, the allocation for agriculture
and livestock was increased to to K 1 231.6 billion in the 2011
budget from the K1 139 billion allocated in 2010.
Zambias 2009/10 agricultural harvest was the highest ever
recorded, having produced over 2.8 million metric tonnes
of maize, and forecasts in May 2011 put the 2010/11 harvest
at over 3 million metric tonnes.
AGRICULTURE IN ZAMBIA
Zambia has good arable land for both extensive and intensive
cultivation of crops, with about 34 percent of total land classifed
as agricultural. The country also has a pleasant climate and
contains around 40 percent of the water resources of the
southern African region, thereby creating huge irrigation
potential.
Maize is Zambias dominant food crop and is produced by the
majority of smallholder farms, with larger agricultural concerns
given over to cash crops such as cotton, sugar and tobacco.
While small-scale production for subsistence is widespread,
some of the smaller farms focus on both food and cash crops.
The livestock sector, while not as important as arable farming,
has expanded in recent years. In view of aims to diversify
agricultural production, it is hoped that Zambia may, like some
of its neighbours, successfully develop a vibrant livestock
industry to supply both the domestic and export markets.
Challenges to the sector
Historically, Zambias agricultural sector has faced a variety
of challenges, despite the sound fundamentals of its large
and fertile tracts of arable land and climate that is conducive
to agricultural development. Although agriculture and agro-
processing together make up around 40 percent of Zambias
GDP and roughly 12 percent of national export earnings, they
have not contributed proportionately to aggregate growth.
Primary agriculture employs some 67 percent of the labour
force, and produces only about 20 percent of GDP.
Less than one-sixth (14 percent) of Zambias total arable land
is under cultivation, and most agriculture remains small-scale
and labour-intensive, with the majority of farmers working two
hectares or less. Commercial agriculture tends to be confned to
a small number of large and medium-size farms. Only about
3 percent of agricultural land is irrigated.
AGRICULTURAL POLICY & PROGRAMMES
The National Agricultural Policy 2004-2015 also focuses on
crop diversifcation and the opening up of new agricultural
production areas, providing agricultural support services,
Agriculture & Fisheries
Agriculture remains at
the centre of Zambias
development and
diversifcation efforts,
as a valuable source
of raw materials for the
manufacturing industry as
well as a vital component of
poverty reduction and job
creation initiatives.
ZAMBIA NATIONAL
FARMERS UNION
ZAMBIAN AGRICULTURE: OPPORTUNITIES, CHALLENGES
AND FUTURE PROSPECTS
Time evolves, so are the challenges. But as time moves on, we have come to discover at age 105 as a
Farmers Union that: we are actually, still tackling the same old agricultural challenges, but only from
different angles. We now understand fully the meaning of the word experience, but in a different
paradigm: that we have to realize with time, not to do things in the same way we did in the past and
failed. The comfort of being the oldest Farmers Union in Zambia is that: we are able to learn from
the library of past mistakes, upon which we are able, as a Union to base our judgment and strength in
tackling: the same old challenges, but each time, DIFFERENTLY.
For the Union, and the farmer membership in general, the future of the Zambian Agriculture lies in
improved Productivity, Competitiveness and Market Development. These words are certainly not new
to us, but what may be required is the new strength and new angle in which the issues of productivity,
competitiveness and market development should be pursued. We must not pursue these issues as mere
catch-phrases, but with the goal in mind. It is important that all membership is unanimous in pursuit of
this goal, which must be clearly defned and understood by all in the agricultural sector. Farmers must
comprehend and agree to the goal as to why that goal must be pursued. Government must understand,
believe, agree and provide requisite leadership towards the goal. Put simply all stakeholders must identify
with this goal and resolve to pursue the goal and achieve it resoundingly.
What is our Goal?
You may wish to agree that the Goal being pursued is the establishment or development of markets for
agricultural commodities outside Zambia particularly in the region for it has become apparent that our
countrys population can no longer support any further agricultural growth and expansion. Unless we all
agree to this goal, and harness all our collective capabilities and capacities, we cannot reach that goal.
The future of the Zambian Agricultural sector depends on what we collectively do today. The Union
believes that market development is a process which must be vigorously pursued with conviction that
achievements do not come easily.
The development of markets (local and export) is a product of many aspects and ingredients, and
certainly productivity and competitiveness are part of that list of many aspects and ingredients.
Agricultural productivity is measured as the ratio of agricultural outputs to agricultural inputs. While
individual products are usually measured by weight, their varying densities make measuring overall
agricultural output diffcult. The productivity of a country`s farms is important for many reasons. Aside
from providing more food, increasing the productivity of farms affects the countrys prospects for growth
and competitiveness on the agricultural market, income distribution and poverty reduction.
It has been proven that as a countrys farms become more productive, its comparative advantage in
agricultural products increases, which means that it can produce these products at a lower opportunity
cost than can other countries in the region. Therefore, the country becomes more competitive on the
local, regional and world markets, which means that it can attract more consumers since they are able
to buy more of the products offered for the same amount of money. However, it is not only the people
employed in agriculture who beneft from increases in agricultural productivity. Those employed in other
sectors also enjoy lower food prices and a more stable food supply. At the same time, they may see their
wages rise as well.
In recent years, the concept of competitiveness has emerged as a new paradigm in economic development.
Competitiveness captures the awareness of both the limitations and challenges posed by global
competition, at a time when effective government action is constrained by budgetary constraints and the
private sector faces signifcant barriers to competing in domestic and international markets. While the
Union appreciates the budgetary constraints, the Government as one of the major stakeholders must rise
to the occasion to provide practical and verifable enabling policy framework that will ensure that the
Zambian agricultural commodities are competitive on the markets particularly in the region.
With this understanding the Union is convinced that Productivity, Competitiveness and Market
Development is what Zambia should be focusing on as a country if our todays action are to be relied
upon as relevant and employable experience for the Zambian agricultural sector in future.
ZNFU Head Ofhce
Farmers` Village, Tiyende Pamodzi Road, Showgrounds PO Box 30395, Lusaka 10101, Zambia
Tel: 0211 252649/255769/257958/254431 Fax: 0211 252648
E-mail: znfu@zamnet.zm Website: www.znfu.org.zm
56
reducing dependence on rain-fed agriculture and increasing
the effciency of irrigation techniques, as well as expanding
markets.
The goal for Zambias agriculture sector under the Sixth
National Development Plan is to increase and diversify
agricultural production and productivity so as to raise the share
of its contribution to GDP by 2015. For 2011, governments
main policy focus is on expanding areas under cultivation
and irrigation, promoting the use of better seed varieties and
improving linkages between research and extension services.
Farmer support programmes
Government has for some years encouraged food production by
subsidising farming inputs like fertiliser, seeds and chemicals for
small-scale farmers. This was initially undertaken through the
Fertiliser Support Programme (FSP), which was renamed the
Farmer Input Support Programme (FISP) in 2009 following a
review of the programme.
Subsequently the number of farmers beneftting from the
programme more than doubled to 534 000 in 2010, thereby
vastly increasing the FSP's coverage. Effciency of distribution
has also been improved through using institutions at the
agricultural camp level rather than at the district level, and
through the increased participation of community organisations.
Drawing on the successes of the FISP in 2010, the allocation to
the programme increased to K485 billion in 2011 from
K435 billion in 2010. With agricultural extension workers
providing frontline support to farmers, government continues
to focus on making extension services more accessible. In
2011, K13.3 billion was set aside for the construction and
rehabilitation of camp houses and accelerated efforts to
increase farmer training and improve the mobility of extension
workers.
Infrastructure development
In order to boost investment and productivity in the sector, the
development of farm blocks, typifed by large and small-scale
operations coexisting in a symbiotic relationship, is being
stepped up. The 155 000-hectare Nansanga Farm Block in
Serenje District has been set up as a model of agricultural
development in Zambia. It has been modelled on Nakambala
Sugar Estates although ten times the size with large estates
and small-scale farmers located in close vicinity to one another.
The Nansanga Farm Block has been completed and is being
promoted to investors as a Public-Private Partnership (PPP).
Signifcant interest has been seen from both domestic and
international investors.
A similar infrastructure development was begun at Luena Farm
Block in Kawambwa district during 2010. To pave the way
for major works to commence in 2012, government allocated
K1.5 billion for the construction of an access bridge and further
preparatory works in 2011. This is an area with vast potential for
the development of the sugar industry.
In addition, dams have been rehabilitated in the following
locations:
Muyembe in Luapula Province
Mzewe and Kayimbonya in Eastern Province
Kasiya in Southern Province
Improving market access
Increasing crop yields alone is not enough to improve the
incomes of farming populations. While the FRA is a major
marketing agent for small-scale farmers, it is important that
an effective and sustainable crop marketing institution is
established in order to enhance earnings.
Bumper harvests such as those recorded in 2009/10 require
strengthened marketing arrangements to avoid possible
wastage and losses to farmers. n a region where food defcits
are common, Zambia has an opportunity to realise its full
potential through the export of surplus production.
Irrigation projects
Zambias crop production is largely rainfall dependent with a
distinct production season running from November to April.
Rainfall is the major determinant of crop performance in any
given year, and with changing weather conditions more likely
in the face of global warming, government is emphasising
decreased dependence on rain-fed agriculture.
Year-round agricultural production and better access to markets
will help to reduce rural poverty levels, bringing the rural
economy into the mainstream economy and thereby reducing
the poverty gap between urban and rural populations. Currently,
less than one percent of Zambias arable land is under
irrigation.
Irrigation - Photo courtesy: Ren Hartslief
Lamb - Photo courtesy: Ren Hartslief
57
In April 2011 the World Bank approved a US $115 million credit
for the Irrigation Development and Support Project (IDSP) to
enable Zambia to overhaul its irrigation subsector. This project
aims to bring together smallholders and agri-business investors
in shared irrigation schemes with complementary roads and
power, contracted irrigation management, and professional
guidance to smallholders, in order to increase yield per hectare
and value of diverse products marketed by both small and
large-scale farmers.
The IDSP is expected to be implemented over seven years,
with a completion date of 15 June 2018 and a closing date of 15
December 2018. It has four components:
Irrigated Agricultural Support Services will provide
knowledge and skills and strengthen the capacity of
benefciaries to prepare and operate medium to large-size
smallholder irrigation schemes on a sustainable commercial
basis through partnership agreements between the
government, communities and the private sector.
Public Infrastructure will provide bulk water supply and
associated infrastructure required to establish irrigation
schemes under partnership arrangements.
Private and Cooperative Investment will take place in
productive equipment and assets in and around irrigation
schemes, thereby also stimulating the establishment of small-
scale enterprises.
Management and Coordination will provide funding for
project management, support to policy and institutional
framework, and monitoring and evaluation to ensure effcient
and timely delivery of project resources.
Efforts by government to bring more land under irrigation
in 2011 saw K37.2 billion allocated for the construction
of dams, irrigation projects and training for small-scale
farmers.
Water conservation
A number of programmes are looking at methods of conserving
water. Through its Conservation Farming Unit, the Zambia
National Farmers Union (ZNFU) is helping farmers dig
water harvesting basins, a simple and cheap technique for
collecting excess water for drinking or irrigation. The water is
usually retained in small dams, manually-dug basins or huge
underground storage tanks.
In southern Zambia, the Water Harvesting Project is
encouraging livestock farmers in Choma to dig ditches that
collect rain runoff from roofs and result in water reservoirs.
Another technology, sand dams, is being advocated by the non-
governmental organisation Sahelian Solutions. Sand dams are
created by blocking a dry river bed through the construction of a
concrete dam. Over time sediment accumulating in the bottom
of the dam helps catch rain water during the rainy season and
prevent evaporation during the dry season.
Livestock and sheries initiatives
The livestock and fsheries subsectors play an important role
Maize - Photo courtesy: MRI Seed
58
in improving the livelihoods of not only small-scale farmers but
the population at large. The creation of a specialised Ministry of
Livestock and Fisheries Development should ensure that this
vital subsector receives focused attention. Some K261.8 billion
has been earmarked for livestock and fsheries programmes in
2011. Focus in the sector will be on animal disease prevention
and control, and fsheries development.
The tackling of livestock diseases is given priority to enable
Zambian meat products to meet demand in local markets as
well as satisfy the stringent requirements of export markets
such as the EU and elsewhere. Through these interventions,
it is hoped that beef will become second only to copper as a
foreign exchange earner.
In an effort to reduce the incidence of animal disease through
the creation of disease-free zones, during 2011 government
is building livestock service centres in fve districts in Northern
Province, four districts in Southern Province, two districts
each in Central and Western provinces, and one each in
North-Western and Eastern provinces. In addition, disease
checkpoints will be constructed across the country and more
vaccines procured. K26.6 billion has been allocated for these
activities in 2011.
Under fsheries development, the key strategy is to ensure
compliance with fsheries regulations so as to reduce the
depletion of fsh in Zambia's main water bodies. Aquaculture
development, especially by women, is being encouraged, and
aquaculture centres are being constructed for the breeding of
fngerlings that will be used for restocking. K21.8 billion has
been provided for fsh breeding and aquaculture extension
services in 2011.
ZAMBIA NATIONAL FARMERS UNION
The Zambia National Farmers Union (ZNFU) promotes and
protects the interests of its members farmers, individuals,
corporations/companies and other organisations involved in the
business of farming in order to achieve sustainable economic
and social development.
ZNFU is one of the oldest associations in the country, and has
existed under various names almost since the frst large-scale
farms were established in Zambia in the early 1900s. Before
independence in 1964, the ZNFU was called Rhodesia National
Farmers Union. After independence, the name became
Commercial Farmers Bureau. By 1992, this name had become
outdated and misleading, as many small-scale farmers had also
joined the union. Subsequently, it changed its name to Zambia
National Farmers Union in 1992.
ZNFU is linked to southern region farmers unions through the
Southern African Confederation of Agricultural Unions (SACAU).
It is also a member of the Paris-based International Federation
of Agricultural Producers (IFAP), which unites farmers
organisations worldwide.
Types of ZNFU membership currently consist of large and
small-scale farmers associations, with district farmers
associations made up of predominantly small-scale farmers,
and just ten district farmers associations made up of both large-
scale and small-scale farmers, comprising Choma/Kalomo;
Mkushi; Chisamba; Mazabuka; Chongwe River (Lusaka East);
Copperbelt East; Zimba/Livingstone; Kabwe; Copperbelt
West and Lusaka West. There are also corporate members,
commodity or specialised associations, the Agribusiness
Chamber and associate members.
INVESTMENT OPPORTUNITIES
Of all of Zambias economic sectors, agriculture is thought to
hold the most promise for growth and development, as well
as the potential to reap signifcant foreign exchange earnings.
Production must be stepped up to meet the growing demand
in expanding local, regional and international markets. This
calls for substantial private sector investment to transform
uncultivated arable land, privatised state land and traditionally
cultivated farmlands into productive commercial concerns.
Climatic factors, such as rainfall, temperature, sunshine and
the different types of soils, provide the country with three
major agro-ecological zones suitable for a wide range of
crops, livestock, fsh and forestry products. The different zones
range from a vast, temperate plateau region to the north, to
subtropical valleys around the Zambezi River to the south.
One of Zambias most important natural resources is its arable
land, with over half the country's land classifed as having
medium to high potential for agricultural production, and a
substantial percentage of the land available for agriculture
situated near urban areas. Rural areas possess arable land for
cultivation as well as pastureland for livestock farming.
Another plentiful resource is water, with Zambias mean annual
rainfall around 1 400 millimetres in the northern region and
700 millimetres in the southern, eastern and western areas. In
addition to rivers and lakes, there are groundwater resources.
Untapped potential exists in the irrigation of farmland, with tax
incentives for producers who invest in farming equipment.
Favourable investment opportunities exist in:
HorticuIture & oricuIture The production of cut fowers,
wheat, soybean, cotton, tobacco and sugar.
Livestock Non-conventional livestock farming, such as
crocodile or ostrich farming.
Poultry products Hatcheries for the production of chickens
for both domestic and regional markets.
Fisheries Zambias abundant fresh water and rivers provide
vast fshing and fsh farming potential.
Agricultural support services This includes the
construction of dams and boreholes, installation of irrigation
systems and extension services.
Cattle - Photo courtesy: Ren Hartslief
59 59
Agricultural inputs Fertilisers, farm equipment and animal
feed also have signifcant potential, as does the packaging of
agricultural produce for export.
Both traditional and non-traditional agricultural exports have
historically been exported in their raw, unprocessed form,
and there is a great deal of potential in the downstream
processing of agricultural produce. Private enterprise is able
to take advantage of the gap that exists in the market through
investment in processing plants, either as stand-alone units or
in conjunction with agricultural initiatives.
In addition to a reduced tax rate of 15 percent on income from
farming (except cotton for export, which is taxed at 30 percent),
government provides a number of incentives and allowances
for agriculture. In 2009, government revisited its VAT policy on
agriculture. As a result, selected agricultural equipment and
accessories were zero rated for VAT purposes. Hammer mills,
which are used to turn maize into mealie-meal, have been
included on the list of agricultural equipment that is zero-rated
for VAT.
AGRICULTURAL SUBSECTORS
Zambia produces a variety of crops, livestock, fsh and agro-
forestry commodities. In addition to maize, the staple food,
other crops produced include wheat, cassava, millet, sorghum,
rice, soybeans, groundnuts and mixed beans. Cash crops such
as cotton, tobacco, sugar cane, coffee, tea, seeds, fowers and
high-value horticultural produce are becoming increasingly
important as foreign exchange earners. Cattle are the
predominant livestock, while pigs, poultry, sheep and goats are
also farmed. Fresh water fsh production occurs around areas
with rivers and lakes.
Cassava: One of Zambias staple crops, cassava is produced
in Northern and Luapula provinces, which contribute about
70 percent to national output, followed by Western Province
at 16 percent and Southern Province at less than 1 percent.
As part of its emphasis on decreasing dependence on rain-
fed crops, Zambias government has spotlighted cassava
production as a means to improve food security.
Wheat: Two crops per annum of wheat are produced due
to rotation with cotton and soybeans. Greater focus is being
given to the production of irrigated winter wheat, with national
consumption having increased tremendously in recent years.
Wheat output rose 13.7 percent in the 2009/10 season to
216 000 tonnes from 190 000 tonnes in the 2008/09 season
thanks to favourable policies. This surpasses domestic
consumption (210 000 tonnes in 2009), making Zambia the only
southern African nation to be self suffcient in wheat. Wheat
production fell to as low as 30 000 tonnes a year in the 1990s,
but in the last fve years annual average output has been about
130 000 tonnes.
Millet: A staple food grown mainly by small-scale farmers for
subsistence, millet is also used locally in the brewing of beer.
Northern Province accounts for over 50 percent of national
production. There is presently limited demand for millet and
production levels have thus remained low. Output declined by
22 percent between 2009/10 and 2010/11.
Sorghum: Sorghum is grown in Southern, Western and North-
Western provinces. Like millet, production levels remain low
due to low demand. Nevertheless, yield increased from 0.5 to
0.9 metric tonnes per hectare between 2007/08 and 2009/10.
Rice: About half of Zambias rice is produced in Northern
Province, followed by Western and Eastern provinces.
Production levels have increased greatly along with area
planted, and national consumption of rice rose from
31 248 metric tonnes in 2007 to 54 000 in 2009. However, in the
2010/11 season, the country recorded a decrease of
4 percent in rice production, with fgures standing at 49 410
metric tonnes compared to the 52 937 recorded in the 2009/10
farming season.
Nuts and beans: Peanuts (groundnuts) are predominately
produced in Eastern and Northern provinces. Due to their great
popularity on the export market there is ample room to expand
local production and processing of this lucrative product. There
are also opportunities to increase production of cashew nuts,
which are presently grown in Western Province. Production
of groundnuts declined by 15 percent between 2009/10 and
2010/11.
Around 60 percent of soya-beans are produced by commercial
farmers in Central, Lusaka, Copperbelt and Southern provinces.
Oil from processed soya-beans and sunfower seeds is in
demand both in the local market and further afeld. The main
production area for mixed beans is Zambias Northern Province,
which is responsible for around 70 percent of national output.
Output rose in the 2010/11 farming season driven by the
increase in soya prices and demand during 2010.
Sugarcane: Sugar is one of the countrys most valuable export
commodities, and is processed for the domestic market as
well as being exported to regional and international markets,
in particular the EU. The local sugar industry has been
successfully privatised, an initiative led by Zambia Sugar Plc,
which is majority-owned (81.6 percent) by South Africas Illovo
Ltd, Africas biggest sugar producer.
Producing some 89.6 percent of the countrys sugar, Zambia
Sugar is based at the Nakambala Estate in the Mazabuka
District of the Southern Province. Combined with good climatic
and soil conditions, the companys cane growing operations are
signifcantly enhanced by access to water from the Kafue River
for full-scale irrigation of the crop, resulting in excellent cane
yields and high sucrose content in cane. Approximately
Crocodiles; unconventional livestock farming - Photo courtesy: Ren Hartslief
60
60 percent of cane throughput for the factory is provided
by these operations, with the balance supplied by private
outgrowers. The sugar produced from cane supplied by local
small-scale cane farmers and exported to the EU benefts from
fnancial incentives granted under the 'Fairtrade' label.
The company has the capacity to produce 450 000 tons of
high-quality sugar per annum. About 41 percent of current
production is sold to domestic consumer and industrial markets,
with the balance exported to preferential markets in the EU and
to regional markets. The company also manufactures a range
of sugarbased specialty products. Molasses, a by-product of the
sugar milling operation, is sold mainly as stock feed into both
local and regional markets. Zambia Sugar currently employs
around 2 000 permanent employees and just over 4 000
seasonal workers at peak periods.
The agricultural operations incorporating Nanga Farms
produced a record cane crop of 1.7 million tonnes in 2009/10,
compared with 722 000 in the previous season. Outgrower
deliveries amounted to approximately 910 000 tonnes of cane,
bringing total cane production to 2.6 million tonnes, an increase
of approximately 1 million tons compared to 2008/09.
In 2009/10, the company produced 315 043 tonnes of sugar,
representing a 62 percent increase in tonnage compared to the
previous season (193 880 tonnes), and sold 305 973 tonnes
(2009: 192 826 tonnes). Record cane and sugar production
following the completion of Zambia Sugars major expansion
project in 2009 resulted in the operating proft doubling from
K78 billion in the previous year to K159 billion in 2009/10.
Kafue Sugar, operated by Consolidated Farming Limited
(CF), is the second largest sugar manufacturer in Zambia,
contributing about 9.8 percent towards national production at its
estate and mill in the Kafue fats. Kalungwishi Estates Limited
of Kasama accounts for the remaining 0.60 percent. Currently,
Kafue Sugar produces 23 000 tonnes of sugar per year and
Kalungwishi Estates Limited some 1 400 tonnes per year.
Cotton: Since the initiation of major agricultural reforms and
privatisation of the industry in the early 1990s, cotton production
and processing has grown rapidly. Some 80 percent of
Zambias cotton is produced in Eastern Province, with Central
and Southern provinces accounting for 11 percent and
8 percent respectively.
As cotton is largely a smallholder crop its potential role in
poverty alleviation and food security is huge. Cotton now ranks
as one of the most important sources of crop income among
small-scale farmers and agribusiness frms. Production is
largely undertaken by out-growers and the subsector is led by
two companies.
A subsidiary of Dunavant Enterprises Inc, Dunavant Zambia
Limited is a privately owned cotton merchandising company and
Zambias leading cotton ginner, supporting small-scale cotton
farmers through guaranteed pre-planting prices, credit fnanced
crop inputs, technical support and marketing. Cargill, which
has been active in Zambia since its 2006 acquisition of Clark
Cotton, has around 800 employees based in Chipata.
The past few seasons have seen a decline in cotton production
in Zambia, with national cotton production only 71 000 metric
tonnes of seed cotton in 2009/10 compared to 106 000 metric
tonnes the previous season and 198 000 metric tonnes in the
2005 harvest. However, sustained increases in the price of
cotton, which were at a 15-year high in late 2010, should see
cotton production rebounding.
Tobacco: Zambia produces high quality and full-favour fue-
cured Virginia, dark fre and burley tobaccos, with Central and
Eastern provinces being the most favourable for the crop. Some
83 percent of Burley tobacco is grown in Eastern Province. Out-
grower schemes have increased commercial production, and
there is scope for small, medium and large-scale production.
In 2010, at least 39 million kilograms of tobacco was produced
by 18 000 farmers, from 30.4 million kilograms in the previous
season.
Coffee: Coffee is grown in the Zambian highlands. The main
markets are Japan, the United Kingdom (UK), South Africa,
USA, Dubai and Germany. While the country is a relatively
small producer, demand has been increasing due to the high
quality of Arabica coffee produced, and there is scope to
increase production to service niche markets in Europe.
HorticuIture and oricuIture: Both foriculture and horticulture
do exceedingly well in Zambias temperate climate. Production
of fresh vegetables and fowers, mainly for the export market,
recorded signifcant growth during the early part of the decade,
when foriculture became one of Zambia's leading NTEs. As
both subsectors are highly labour intensive, they are promoted
as part of governments poverty reduction programme in
agriculture.
Sugarcane - Photo courtesy: Ren Hartslief
Tobacco - Photo courtesy: Ren Hartslief
61
Development in the subsector has been marked by investment
in year-round irrigated production by medium and large-scale
farmers, as well as expanding out-grower schemes. Zambia
produces more than 60 varieties of cut fowers, with one of the
prime areas of expansion being the growing of roses, which
are exported to the EU, in particular the Netherlands. Other
important markets are the UK, Germany and South Africa.
Tropical fruits and fresh vegetables also feature prominently,
and the UK, South Africa, Germany, the Netherlands, Australia,
New Zealand, Norway and France are the main importers of
Zambias horticultural produce. The pre-packing of vegetables
adds value to exports.
Seeds: Encompassing all public and private activities in plant
breeding, variety development, seed production and distribution,
the seed industry in Zambia includes formal and informal
sectors. The Seed Control and Certifcation nstitute (SCC) is
the seed certifcation authority in Zambia, providing seed quality
control services to private seed companies, seed programmes,
NGOs, seed traders and farmers. The Zambia Seed Trade
Association (ZASTA) is the national seed association that looks
after the interest of all players in the countrys seed trade.
The seed industry has registered increased participation by
the private sector, with research being concentrated on maize,
soybeans, wheat and cotton, and the emphasis on commercial
crop production. While seeds once had to be imported, an
increasing number of companies have set up in Zambia and
are developing and producing local varieties. These include
Seed Co International Zambia Ltd, MRI Seed and Zambia Seed
Company.
Livestock: The livestock industry includes the production of
beef, poultry, pork, mutton and lamb. A large proportion some
80 percent of the industry remains at the smallholder level,
with many beef and dairy cattle raised solely for domestic
use. While grazing conditions suit a variety of livestock,
distribution is uneven and some areas are subject to tsetse
fy. The eradication of livestock diseases is a top priority, and
steps have been taken to educate farmers about the dangers
of moving animals from one area to another. The restocking of
affected herds is ongoing.
Zambeef Products Plc is a regional leader in cropping
operations, production, processing, distribution and retailing
of beef, chicken, pork, eggs, milk, dairy products, edible oils,
leather and industrial footwear. Other beef producers include
Keembe Meat Corporation, Realmeat and Galaunia Holdings.
The Zambeef Products Plc Group is one of the largest
agri-businesses in Zambia and the region, involved in the
production, processing, distribution and retailing of beef,
pork, chickens, eggs, milk, dairy products, edible oils,
hour and bread throughout Zambia and West Africa. The
company is also one of the largest cropping operations in
Africa with approximately 5 000 hectares under irrigation.
The Group is in the process of rolling out a 20 000 hectare
palm plantation.
The poultry subsector has grown tremendously in the past
decade, although a shortage of day-old chicks has constrained
to some extent further expansion in the market. In addition
to Zamchick, producers include Hybrid Poultry Farms, Ross
Breeders, Nulaid and Yielding Tree.
Dairy: Dairy farming is carried out by commercial, semi-
commercial and traditional farmers, and is a subsector with
considerable growth potential. Over 90 percent of processed
milk is produced by commercial dairy farmers. This is usually
pasteurised and packaged, as well as being made into yoghurt,
cheese and fermented milk. Processors in Zambia include Zam
Milk, which is part of the Zambeef group, Finta, Parmalat and
Diamondale, among others.
Fisheries: Fish is a major source of protein for many Zambian
households on the subsistence level and is also able to provide
cash income. Commercial production of fresh water fsh occurs
in the northern, western and southern parts of the country as
well as along major rivers and lakes. Development programmes
are focused on conservation and research in order to improve
yields, with private sector involvement comprising fsh farming,
marketing and distribution.
While fsh is traditionally sold in its dried form, large amounts
are now being frozen due to improvements in transportation
and refrigeration facilities. While the contribution of fsh farming
is relatively insignifcant, exports of fsh products to regional
markets have been on the increase.
Tropical fruit - Photo courtesy: Ren Hartslief
School pupils enjoying Parmalat products - Photo courtesy: Parmalat
64
65
MT ripping by tillage service providers is gaining ground in Zambia and within the next 5 years we
expect to see around 200 operators doing about 50,000 to 60,000 hectares of land prep for small and
medium scale clients. The 20 or so operators already providing this service cannot keep up with the
demand. This is no surprise because its cheaper than hiring in oxen to plough, you can plant on time
- a huge plus, break up compact layers - less crop stress in dry periods, and if you are a hoe farmer
benet from a massive reduction in labour inputs.
The same benets apply to ox farmers who convert from ploughing to MT ripping. It takes about 14
hours to plough 1 hectare and about 4 hours to rip the same area. MT ox service provision is another
growth area with customers reaping similar benets. Combining the proper use of herbicides with
MT land prep confers further advantages including the opportunity to increase area occupied by
alternatives to Maize!
CF is all about reducing costs and labour inputs, making more efcient use of purchased and on-farm
inputs while increasing yields. In a word its about productivity, about what all farmers strive for.
P. J. Aagaard CFU Zambia February 2011.
66
Growth in the manufacturing sector, which accounts for around
10 percent of Zambias Gross Domestic Product (GDP), has
fallen below trend levels in recent years. However, following two
strong crop harvests and sustained mining production, growth
is expected to receive a boost as a result of increased food and
copper processing activities.
The expansion of manufacturing activities will, over the medium
term, improve Zambias growth prospects and competitiveness
and reduce its dependence on imports through a wider
base of locally produced goods and services. However, the
manufacturing base needs to see further diversifcation if a
wide variety of high-quality, value-added intermediate and fnal
products are to be produced, principally for export.
For this reason, government continues to place emphasis on
the construction of arterial infrastructure and the development
of Multi-Facility Economic Zones (MFEZs). Furthermore,
the processes and procedures for doing business in the
manufacturing sector are being enhanced through regulatory
and other reforms relating to the cost and conduct of business,
with the Zambia Development Agency (ZDA) helping to facilitate
investment.
Current trends in manufacturing performance
Despite the many challenges raised by market liberalisation,
the manufacturing sector has performed relatively well over
the past decade, becoming an important catalyst for private
sector development in Zambia. However, the events of the
global economic crisis in the latter part of 2008 saw growth in
the sector slow due to factors such as more expensive imported
raw materials (due to the depreciation of the Kwacha), a decline
in export demand and continued stiff competition from cheaper
imports.
Manufacturing grew by 1.8 percent in 2008 and 2.2 percent in
2009. Nevertheless, in 2010 growth started to pick up again,
with preliminary fgures from Zambia's Central Statistical Offce
putting growth for the year at 4.4 percent.
AGENCIES FOR GROWTH
Zambias industrial policy supports small and medium-
scale businesses, with the focus on quality control and
standardisation of industrial products. There is renewed
emphasis on value-added linkages that will maximise the use
of local materials and develop inter-sectoral relationships, with
particular interest in the contributions of small-scale businesses.
The Zambia Development Agency (ZDA) came into being
at the beginning of 2007. Institutions within the ZDA assisting
in the development of the manufacturing sector include the
Multi-Facility Economic Zones Division, Investment Promotions
and Guarantees Division, Export Promotions Division, State
Enterprise Restructuring, Monitoring and Privatisation Division
and the Small and Medium Enterprises Division. The ZDA is
discussed in greater depth in the Trade & Investment chapter.
The Zambia Bureau of Standards (ZABS) publishes national
standards, operates a limited metrology laboratory and
provides product certifcation services, offering assistance to
both producers and consumers. The objectives of ZABS are
to improve the competitiveness of Zambian products in local
and international markets through the creation of standards in
commerce and industry, as well as through quality awareness
programmes, which help to improve manufacturing processes,
products and materials.
INVESTMENT INCENTIVES
Over the past several years, government has increased its
efforts to provide an enabling environment for growth, and offers
manufacturers a number of incentives. Specifc incentives are
detailed on the Zambia Development Agencys website: www.
zda.org.zm.
In the 2011 budget, government continued in its efforts to
ensure that tax policy promotes local manufacturing, in line
with diversifcation objectives. As a result of increased local
production capacity, customs duty of 15 percent was introduced
on cold-rolled coils, and 25 percent on deformed bars and
galvanised cold-rolled coils.
Multi-Facility Economic Zones
Exhibiting the best features of Free Trade Zones, Export
Processing Zones and Industrial Parks, Multi-Facility Economic
Manufacturing
Zambias manufacturing
sector is primed for
investment, having all the
vital elements in place, such
as raw materials, labour
force, abundant land and a
good banking and fnancial
system.
67
Zones (MFEZs) comprise specifc geographic areas for both
export and domestic-oriented industries with high quality
physical and social infrastructure in order to attract investment
in the manufacturing sector and act as engines of economic
growth.
Zambias MFEZs accommodate not only industries but a variety
of other amenities such as recreation centres, shopping malls,
centres of excellence for higher learning and health facilities.
Business regulations inside the MFEZs are suffciently fexible
to provide an investment environment comparable to the best in
the world. Specifc incentives include:
Zero percent tax rate on dividends for companies operating in
the priority sector and/or MFEZ under the ZDA Act for a period
of fve years from the year of frst declaration of dividends
Zero percent on profts made by companies operating in
the priority sector and/or MFEZ for a period of fve years from
the frst year profts are made. For years six to eight, only
50 percent of the profts should be taxed and for years nine
and ten, 75 percent of profts should be taxed
Zero percent import duty rate on raw materials, capital goods,
machinery including trucks and specialised motor vehicles for
fve years for enterprises operating in the MFEZ
Deferment of VAT on machinery and equipment including
trucks and specialised motor vehicles imported for investment
in MFEZ and/or priority sector
The development of MFEZs and Industrial Parks continued
during 2010. The Chambishi Multi-Facility Economic Zone now
has 13 enterprises, with an investment of more than US $550
million. A total of 3 500 jobs were created in the zone during the
year, with more expected in 2011. Chambishi has the capacity
for around 60 enterprises, with a job creation potential of 6 000
by 2014. One of the major investors in the zone is China Non-
Ferrous Metals Mining Corporation (CNMC), which has invested
heavily in the Zambian-China Economic and Trade Cooperation
Zone (ZCCZ).
Construction of the Lusaka South Zone was begun during 2010,
while the development of implementation plans for Lumwana
and Lusaka East zones were also initiated. There are also plans
to create industrial parks in Lusaka and Ndola.
EXPORT DEVELOPMENT
The work of the Export Board of Zambia (EBZ) was taken
over by the Zambia Development Agencys Export Promotions
Divisions in 2007, with the aim of expanding Zambias export
industry through product and market development. The new
Parmalat products - Photo courtesy: Ren Hartslief
68
division supplies the necessary support and trade information
services to business enterprises about international markets,
liaises with trade associations, provides training for exporters
and gives government input on market access offers and the
challenges and opportunities these pose for Zambia.
Downstream processing is seen as one of the best
methods of achieving value-addition in Zambias exports.
Non-Traditional Exports
The signifcance of non-traditional exports (NTEs) to Zambia's
economy cannot be overstated. Reducing the economys
reliance on traditional mineral exports such as raw copper and
cobalt, NTEs are vital in increasing economic diversifcation
and promoting growth. Zambias most important NTEs include
tobacco, fowers and cotton.
While NTE earnings dropped in 2008 as a result of reduced
global demand for commodities as well as supply constraints,
earnings rose once more in 2009, with a weaker Kwacha
offering improving export competitiveness. According to the
Bank of Zambia, NTEs increased by 32.3 percent to
US $1 190 million in 2010. Overall, they have expanded by an
average of 14.2 percent per annum over the past decade.
NTEs accounted for 23 percent of all exports in 2009 compared
with 18.3 percent in 2008 and 20.7 percent in 2007. In 2010,
NTE earnings dropped in terms of percentage contribution to
total export earnings due to the resurgence in traditional (metal)
exports.
Special incentives are offered to exporters of non-traditional
products, such as reduced corporate tax of 15 percent.
Exemption from duty and sales tax on imports and machinery is
offered to exporters of non-traditional products with net foreign
exchange earnings.
The Duty Drawback Scheme introduced in the 1990s to make
exporters more internationally competitive is being reviewed to
simplify procedures for exporters.
PRIORITY INVESTMENTS
Investment opportunities in the manufacturing sector are
presently centred on the production of engineered products and
agro-processing, which includes crops such as tobacco, coffee,
tea, soya-beans, maize, sunfower and cottonseed. Another
particular area of interest is the recycling of waste and the
production of steel suitable for manufacturing equipment.
The Food, Beverages and Tobacco subsector grew by
7.5 percent in 2010.
Opportunities are available in the following priority areas, which
also attract fscal incentives:
Agro-processing, including fertilisers, soil conditioners,
pesticides and herbicides
Processing of food, beverages and forest products
Cotton yarn, fabric and garments
Leather and leather products
Wood and wood products, paper products and packaging
Processing of metals, including the smelting and refning of
copper
Machinery, iron and steel products
Electrical and electronic products, including CT and transport
equipment
Processing and polishing of gemstones and jewellery making
Plastic, glass and rubber products
Pharmaceuticals and related products
Professional medical and scientifc products and measuring
devices
Chemicals and petrochemicals
Cement and explosives
69
Processed and rened foods and beverages
Zambias most important manufacturing subsector, food
processing and refning covers both large and small-scale
industries. The premier export earner in this sector is the sugar
industry, with other important industries involved in grain milling
(both maize and wheat), carbonated soft drink production, clear
and opaque beer brewing and the production of cooking oil.
Adding value to locally produced products, the agro-processing
sector is a key linkage to primary sectors like agriculture. Crops
such as tobacco, coffee, tea, soy beans and maize require large
processing plants to be made into fnished commodities that
have more value added to them, while import substitution for
edible oils such as butter, margarine, sunfower and cottonseed
also offers attractive opportunities for investment.
Fresh produce currently being processed includes tomatoes,
beans, pineapples, sweet corn, onions and mangoes, among
others. The production of tropical fruit juice through the
processing of locally grown tangerines, mangoes, pineapples,
oranges, papaya, guavas and bananas, is another potentially
lucrative avenue.
The downstream processing of livestock produce has potential,
particularly in the beef and dairy subsectors. There are also
indications that fsh processing could gain momentum, provided
refrigeration and storage facilities are expanded, or further
processes such as canning developed to add value to the
fsh product. The processing of grocery items such as cold
meats, biscuits, tinned food, jam and cheese is also largely
underexploited.
The Zambeef Products PLC Group is one of the largest
agri-businesses in Zambia and the region, involved in the
production, processing, distribution and retailing of beef, pork,
chickens, eggs, milk, dairy products, edible oils, four and bread
throughout Zambia and West Africa.
Pineapples - Photo courtesy: Ren Hartslief
70
The former Kasama Coffee Company has been
recapitalised and opened as Northern Coffee Corporation
Limited (NCCL) in Kasama in March 2011, creating 300 jobs
for local people and boosting economic development in the
Northern Province.
Zambian Breweries
Following governments privatisation of Zambian Breweries
Plc (ZB) in the 1990s, the company has been transformed into
a modern, dynamic industry which is today one of the largest
industrial companies in Zambia. This transformation has been
characterised by signifcant investment in infrastructure and
human capital: over US $120 million in the last fve years to
extend and modernise production capacity. This includes new
reverse osmosis water treatment plants at Lusaka and Ndola,
brewing equipment, fermentation cellars, refurbishment of
packaging lines and back-up power generators, among others.
Over US $2 million has been spent since 2006 in training staff
to effectively operate the new technology.
ZB also supports the local economy by encouraging ancillary
industry to develop capacity to supply ingredients and raw
materials, and has been instrumental in encouraging the local
production of quality barley, maize, sorghum and sugar. ZB
has empowered people in the retail and wholesale sectors,
and has engaged individuals to distribute its products through
the Business-Linkages Initiative overseen by ZDA and the
International Labour Organisation (ILO).
Today, ZB is Zambias largest beverage company, employing
over 1 000 people directly and many more in its upstream and
downstream supply chains. The company is also one of the
largest tax payers, with combined tax fgures standing at some
US $55 million in 2009.
Business growth prospects have been given a huge boost by
the reduction in excise duty, as this now levels the playing feld
in the beer market at regional level. ZBs continued growth will
also be supported by the growth and relative stability of the
Zambian economy. Recent reductions in interest rates, Treasury
Bill rates and commercial bank base-rates have provided an
opportunity to source money at competitive rates, which will
allow the establishment of productive capacity ahead of the
anticipated growth in domestic demand.
In 2010, production of clear beer at 727 191.0 hectolitres was
27.6 percent higher than the 569 771.0 hectolitres produced
in 2009. Similarly, output of soft drinks at 561 910.0 hectolitres
was 49.1 percent higher than the 376 747.0 hectolitres
produced in 2009.
Textiles and clothing
Cotton is grown, ginned and spun in Zambia at industrial sites
boasting state-of-the-art spinning, weaving and processing
factories as well as warehouses. Products include cotton yarn
and grey cloth of world-class quality, as well as garments.
The textile industry in Zambia has historically been one of the
principal contributors to economic growth in the manufacturing
sector, producing internationally competitive products from
abundant raw material. However, the competition brought on by
the liberalised economy has seen the industry dwindle in size.
Nevertheless, as a labour-intensive industry, the production
of textiles and clothing has the potential to contribute greatly
to the Zambian economy by way of employment creation and
increased export earnings. Modern processing technologies
allow for increased production capacities and the variety of
products which are able to meet additional demand for capacity
and range in the international market.
Zambia Breweries - Photo courtesy: Ren Hartslief
Production at Zambia Breweries - Photo courtesy: Ren Hartslief
71
Mineral processing
Government incentives support new businesses that process
copper rather than exporting raw copper bars. Copper wire and
other copper products, such as copper plate and tubing, are
an area of growth, with copper rod and cables generating a
sizeable proportion of Zambias non-traditional export earnings.
The small-scale cutting and polishing of gemstones as well
as local jewellery manufacture is gaining ground since the
establishment of the gemstone exchange and a number of
government initiatives supporting minerals sector diversifcation.
Chemical products
Zambias substantial resources of agricultural minerals such
as peat and limestone deposits are used to manufacture soil
conditioners, while phosphates are used in the production of
fertilisers.
Nitrogen Chemicals of Zambia manufactures explosive grade
ammonium nitrate, chemical fertilisers and industrial chemicals.
Government is presently looking for a local partner from the
private sector to help run the company. The Chambishi Smelter
also has the capacity to produce fertiliser.
Ndola Lime Company Limited produces limestone, quicklime
and hydrated lime, with copper mines presently accounting
for over 90 percent of the sales volume. With the companys
production capacity set to double by 2013, export prospects for
lime products to markets such as the DRC, Angola, Malawi and
Tanzania, should increase.
Minerals are also used in the development of other chemical
products, such as cement, adhesives and glass. Products
manufactured for export include argon gas, sulphuric acid,
detonators, automotive batteries, paints, cosmetics, soaps and
detergents.
Lafarge Cement Zambia Plc, formerly Chilanga Cement Plc, is
engaged in the manufacture and sale of cement, and has two
operating facilities: Chilanga Plant near Lusaka and Ndola Plant
in Ndola. The new Chilanga plant was commissioned in March
2009, with output subsequently rising substantially. Lafarge also
owns 14 percent of Mbeya Cement Company Limited.
Cement is also produced by Zambezi Portland Cement (ZPC),
which operates a US$ 40 million cement plant in Ndolas light
industrial area and has a capacity of 330 000 tonnes of cement
per year.
Total output of cement for 2010 at 1 126,728 metric tonnes was
37.9 percent higher than the 817 223.0 metric tonnes produced
in 2009. In the fourth quarter of 2010, cement production at
Lafarge Cement and Oriental Quarries rose by 14.9 percent
and 2.3 percent to 251 505.0 metric tonnes and 16 295 metric
tonnes respectively. Zambezi Portland Cement also increased
its output of cement by 18.1 percent to 92 166.0 metric tonnes.
Leather products
By-products of the livestock industry include large quantities
of hides and skins, which fnd both regional and international
markets, as well as fnished leather products such as bags,
footwear and leather garments. While predominantly cattle
hides are tanned, the industry also utilises hippopotamus and
crocodile skins.
Zamleather Limited, a wholly owned subsidiary of Zambeef, is
involved in the tanning of hides for export to the Far East and
Europe as well as the production of fnished leather, shoes
and industrial footwear, mainly for the domestic and regional
markets.
Cow hide - Photo courtesy: Ren Hartslief
Transporting of copper at Zamefa - Photo courtesy: Ren Hartslief
Lafarge Cement Zambia Plc - Photo courtesy: Ren Hartslief
Lamasat opened in 2002 as a company manufacturing pipe
and polypropylene bags. Since then the company has grown
progressively. The manufacturing facilities, comprising an
ultra modern factory and warehousing, have an installed
capacity of about 1,000 tonnes of plastic products. Lamasat
currently employs close to 600 employees.
Manufacturing Facilities
Lamasat has modern facilities spread over an area of
50,000m
2
comprising factory and warehousing facilities.
There are production lines for pipes, pp bags, blow flm,
pp bag and plastic printing and water tanks.
The company maintains high standards in its manufacturing
plant and has been accredited with the South African
Bureau of Standards (SABS). The companys products are
manufactured in compliance with the applicable product
standards.
Lamasats range of products are available in a full range of
sizes and specifcations. These include:-
PVC cable trunking
PPR pipes and fttings for hot and cold water
PVC pipes
HDPE pipes
PVC fexible hoses
Suction and delivery hoses
UPVC pressure valves and fttings
Compression fttings
Cast iron and epoxy coated gate valves
Sewer fttings
Soil and waste fttings
Nylon insert fttings
Water tanks
Guttering systems
HDPE and UPVC fabricated fttings
BUTT welding
PVC plumbing fttings
Clamp saddle and pp fttings
Construction of houses and fats
Water Tanks
The company manufactures water tanks ranging
from 200 litres to 12,000 litres for domestic and
industrial use.
Polypropylene (PP) Bags
Lamasat manufactures Polypropylene bags used
for packaging of cement, animal feeds, fertilizer
and other agricultural purposes. There is an
installed capacity of 125,000 bags a day. For
specialised use such as fertiliser packing, bag
liners are also provided.
Aluminium
Products include the manufacture of aluminium
products including doors, windows, partitions,
kitchen and offce furniture.
PVC Strapping
Lamasat manufactures PVC strapping used for
many packaging requirements. The company serves
customers in the agricultural, mining, manufacturing,
telecommunications and the construction sectors. HDPE
pipes and fttings are specially needed by the mining
industry, where as large agricultural companies require
irrigation systems.
Lamasat has created successful business relationships with
many companies outside of Zambia thus sourcing and
providing most pipe requirements at competitive rates.
Construction of block of ats
Kitchen Unit
THE DIRECTORS
Mohammed Ahmed - Chairman
Mohammed Ahmed founded Lamasat International
in 2003 and is the driving force behind the company.
Mohammed was involved in the promotion of Lamise,
one of the leading biscuit manufacturers in Zambia. He
was also involved in the early public private partnerships
(PPP) supported by the Government of the Republic of
Zambia through the development of the multimillion
Town Centre Market. He continues to provide the vision
and strategic direction of Lamasat International.
Mahmoud Ahmed - Managing Director
Mahmoud Ahmed promoted a Tanzanian company
manufacturing biscuits and household plastic products.
Today that company is a leader in its feld. Subsequently,
Mahmoud promoted businesses in South Africa, Malawi,
Zimbabwe and Angola. His leadership at Lamasat
International has seen the business grow fourfold over
the past 7 years.
Lamasat's water tanks
Polypropylene (PP) bag making
Pipe making in all sizes and specifcations
Further enquiries:
Lamasat International Limited
PO Box 34033
Plot No. 397/1/0, Chipewenupwenu Road
Off Kafue Road, Makeni
Lusaka, Zambia
Tel: +260 211 273 142/5, 272 333, 273 640
Fax: +260 211 273 141
Ahmed A Ahmed
Operations Director
Cell: +260 977 771 144, +260 966 771 144
Tel: +260 211 272 614
Fax: +260 211 273 141
Direct: +260 211 273 146
E-mail: ahmed@lamasat.co.zm
sales@lamasat.co.zm
Ebrahim Summil
Assistant Operations Director
Cell: +260 966 849 548
Tel: +260 211 272 614
Fax: +260 211 273 141
E-mail: ebrahim@lamasat.co.zm
74
According to the Forestry Department of the Food and
Agriculture Organisation (FAO) in their Global Forest Resources
Assessment 2010, almost two-thirds of Zambia is covered
in forests. Zambias total land area is 74 339 000 hectares,
comprising 49 468 000 hectares of forests and some 6 075 000
hectares (8 percent) designated Other Wooded Land. Between
1990 and 2010, Zambia lost an average of 166 600 hectares, or
0.32 percent, of forest cover per year: in total, 6.3 percent of its
forest cover around 3 332 000 hectares.
Out of the total forest area of 49 968 000 hectares, forest
plantation is estimated to be about 62 000 hectares. Natural
forests cover 49 908 000 hectares, and are designated as:
reserve (6.5 percent), national parks (9.1 percent), natural
monuments (0.3 percent); habitat management (5.5 percent),
multipurpose (16.9 percent) and production (23.7 percent).
About 23 percent of the forests (11 478 840 hectares) have a
management plan.
Compared to the rest of Sub-Saharan Africa, Zambia still has
a relatively large proportion of its land under forest cover.
However, deforestation and forest degradation, soil erosion
and fertility loss, watershed degradation and loss of biological
diversity are ever-present challenges. Forests face immense
pressure from the extensive practices of shifting cultivation
and slash and burn, ever-increasing demands for wood-based
energy (frewood and charcoal), unsustainable commercial
utilisation of indigenous tree species, overgrazing and forest
fres.
FORESTRY ASSETS
Forests in Zambia consist of both indigenous and exotic
timber. Indigenous trees comprise Mukusi (also known as
Zambian Teak), Mupapa, Muwaka, Musompa, Kayimbi, Mululu
and Mukwa. Hardwood trees, such as Mukusi, Muwaka and
Kayimbi, are used to make railway sleepers, while Mukwa is the
main wood used in furniture and is found mainly in the Western
Province. Indigenous hardwoods are also used in building and
construction, as well as bee keeping, the collection of forest
products, and traditional medicines and herbs.
Exotic softwood trees, which are used in construction, mining
and furniture-making, comprise tropical pine and gmelina.
Plantations may be found near Ndola, Kalulushi, Mufulira,
Choma, Samfya, Kabwe, Chisamba, Lusaka and Chipata. Most
commercial plantations are located on the Copperbelt and
support the mining industry.
The privatisation of Zambia Forest and Forestry Industries
Limited (ZAFFICO) has opened up the market for softwood,
while the privatisation of Zambezi Sawmills has seen increased
private sector participation in the hardwood sector. Adding value
to exports, processed timber is promoted ahead of raw timber
produce, with export products including plywood, furniture,
carvings and curios.
The performance of the forestry sector has shown consistent
but slow progression in the past decade. There has been a
marked increase in the production of wood and wood products
as well as paper and paper products, underlining the growing
importance of timber processing to Zambias non-traditional
exports. Certifcation of Zambia's forests is vital if forest
products are to penetrate the lucrative markets of the European
Union.
The production of paper and paper products grew by a
massive 22.8 percent in 2010.
Forests also play an important socioeconomic role in supporting
the livelihoods of rural communities. Wood fuel is critical for
domestic energy needs, particularly in rural areas. Furthermore,
farmers depend on local woodlands for the gathering of foods,
bushmeat, medicinal plants and household materials, often
obtaining signifcant income from non-wood forest products
such as honey, beeswax and edible caterpillars.
Managing forestry resources
The state owns all land, woodlands, forest stands and trees
outside forests. The new National Forest Policy of 1998 and the
Forest Act No. 7 of 1999 are the policy and legal instruments
that guide forest administration in the country.
The Lands Act of 1995 recognises customary land as eligible
for state registration; thus citizens are able to acquire leasehold
Forestry & Timber
Zambias forestry products
consist predominantly of
soft and hardwood timber
harvested from natural
forests and commercial
plantations, with small
quantities of honey and
beeswax also produced.
75
title on customary land. This prevailing land tenure system
notwithstanding, permits could be granted for harvesting of
forest resources by private commercial enterprises or by the
local community for domestic consumption, under prescribed
circumstances.
The Forestry Department operates under the Ministry of
Tourism, Environment and Natural Resources and is charged
with the protection of Zambias forests. The main duties of the
Forestry Department are to enforce government regulations for
the protection of woodland areas and to train forestry offcers.
The department also educates the population on the importance
of forests and the dangers of deforestation.
Lack of capacity within the Forestry Department has, however,
hampered its ability to control forest exploitation or to assist
local communities effectively in the sustainable management of
natural resources. The transformation of the department into a
semi-autonomous and self-fnancing statutory body, the Zambia
Forestry Commission, should help to improve matters.
The Forest Act of 1999 gives effect to the National Forest
Policy and makes legal provision for the involvement of non-
government stakeholders, especially local forest-adjacent
communities. The Act also provides for the transformation of the
Forestry Department into the Zambia Forestry Commission.
The parastatal Zambia Forestry and Forest Industries
Corporation (ZAFFICO) was formed from the Industrial
Plantations Division of the Zambia Forest Department with
the help of a World Bank loan in 1982. Based heavily on
plantations, ZAFFICO was established to help meet the
increasing demand for timber in Zambia and to complement
supplies from indigenous forests, which were being
overexploited.
ZAFFICOs duties include:
Planting new trees to prevent soil erosion
Carrying out research on how best to develop Zambia's
forests
Educating the population on the importance of forests
Replacing forests that have been destroyed by deforestation
The Copperbelt University (CBU) and ZAFFICO have signed
a 10-year memorandum of understanding to enhance
business and training opportunities between the two
parties, which will see the establishment of a training
facility in the Chati area plantation. Students will be trained
in forestry practices and sustainable forestry management.
Ndola Lime Green Solutions
In December 2010, Ndola Lime Company undertook a
forestation exercise involving the planting of 1 300 indigenous
and exotic trees, namely acacia and eucalyptus, within its mine
license area. The exercise was conducted in conjunction with
Forestry Research under the Ministry of Tourism, Environment
and Natural Resources. The essence of the project is to create
a forest buffer by planting fast-growing trees on the windward
side of the plant that will act as a natural flter for fugitive dust
emissions emanating from the kilns and hydrating plant.
The role of eucalyptus forest plantations is fundamental to the
companys efforts to neutralise the effects of greenhouse gases
responsible for warming the earth. Eucalyptus trees generally
grow easily and can grow to heights of over 50 feet in a very
short time. This property will enable the trees to create a forest
buffer able to trap dust at such elevated heights and helps to
absorb carbon dioxide from the atmosphere while returning
oxygen.
In addition, 800 Acacia trees were planted at the site. Acacia, as
the most dominant tree species at the Ndola Lime plant, is likely
to grow well here in its natural habitat. The umbrella shape of
the tree, which has many small leaves, makes it very effcient at
trapping dust. Acacia trees also have fowers which will improve
the natural scenic beauty of the plant site.
THE TIMBER INDUSTRY
The Copperbelt Province and the southwest of the country is
at the heart of commercial timber exploitation in Zambia. The
timber industry has been in a state of transition over the past
several years, with government trying to reduce its role by
privatising some of the state-owned mills. Challenges, such as
illegal utilisation of forest resources and inadequate supervision
of concession holders, have been addressed through the Forest
Policy of 1998.
Plantation development
Forest plantations date back to 1963, when the Forestry
Department started a pilot project to plant exotic species. In
1967 this was expanded to 55 000 hectares of plantations
under a World Bank assisted project. In addition, a further
10 000 hectares was developed in other provinces to meet local
demand.
Timber plantation - Photo courtesy: Ren Hartslief
78
Today, Zambias plantations consist almost entirely of pine
(40 000 hectares) and eucalyptus (10 000 hectares) with a
total standing volume of around 12 million cubic metres. Their
rotations vary from 15 to 25 years. Pine is utilised for the
construction industry and for furniture manufacture, and gum
poles are processed for the mining industry.
Zambia Forest and Forestry Industries Limited (ZAFFICO) is the
largest timber producer in the country, managing a total area of
approximately 48 000 hectares of exotic plantations. Some
1 092.3 and 873.3 hectares is under lease management to
Ndola Pine Plantation Ltd and Copperbelt Forestry Company
Ltd respectively.
ZAFFICO manages all the commercial plantations on the
Copperbelt, with estimated wood volume of over 12 million
cubic metres and an annual allowable cut of approximately
half a million cubic metres.
The corporation is the major supplier of saw logs for sawmilling
frms, meeting the current annual round wood demand of
about 380 000 cubic metres. Some of this timber is sold to the
Copperbelt Forestry Company for use in the manufacturing of
electricity poles, which are supplied to ZESCO.
Booming construction in Zambia has pushed up the demand for
timber in recent years, and although the current wood supply
may be adequate to meet domestic needs, the rising global and
regional timber demand is putting pressure on the countrys
existing plantations. In order to combat this, greater investment
is needed to recapitalise ZAFFICO as well as involve the private
sector in plantation management and large-scale reforestation
projects through favourable government incentives. Woodlots
and outgrower schemes also have the potential to supplement
forest resources.
The current annual replanted area of 500 hectares needs to
gradually increase to over 3 000 hectares per year in the next
decade in order to accommodate future wood requirements
and economic development. ZAFFICO has thus embarked on
a programme to expand its plantations from 50 000 hectares
to 85 000 hectares by 2020. As such a programme may be
diffcult to implement on the Copperbelt due to high levels of
encroachment, it is focusing on opening up new plantations
in the North-Western, Northern and Central provinces. Joint
ventures with the private sector are being sought in this regard.
In 2011, it was ZAFFICOs stated aim to raise about 5 million
seedlings annually to avoid the defcit experienced in the past.
The corporation has also targeted the replanting of about 3 000
hectares of land in 2012, with more than 1 500 hectares of land
having been replanted so far.
Processing plants
Under Zambias privatisation initiative, ZAFFICO had sold off
all its processing plants by February 2002 and is currently only
involved in the management of plantations, with the harvesting
of timber in its forests contracted out to private harvesting
contractors.
Kafubu processing unit, a gum pole treatment plant, sawmilling
and joinery operation based at Kalulushi some 40 kilometres
from Kitwe, was sold by ZAFFICO to the Copperbelt Forestry
Company (CFC). Kafubu has the capacity to handle 70 percent
of Zambias timber production and is located in an area in which
80 percent of the countrys eucalyptus is grown.
ZAFFICOs Kalibu mill and wood processing operation
10 kilometres east of Kitwe was also sold to CFC. Kalibu
sawmill has the capacity to process 20 percent of the countrys
timber, and draws its raw material from the nearby Ndola pine
and eucalyptus plantation. CFC operates two main production
lines comprising gum pole treatment and sawmilling, with the
latter including the joinery division which manufactures furniture.
Another ZAFFICO processing unit, the Dola Hill Sawmill, which
has the capacity to process 10 percent of Zambias total timber
production, was sold to Wood Processing Industries (WPI)
Limited. A leading manufacturing company in the forestry and
wood products sector, WP also owns FSC certifed sustainable
pine plantations and is an important supplier to the local
building and furniture industries as well as being a leading non-
traditional export earner.
Situated in Western Province, the former parastatal Zambezi
Sawmills, consisting of sawmill plants in Mulobezi and Sesheke,
has been sold and renamed Zambezi Sawmills 2005 Ltd. The
resuscitation of the timber industry in the area is of strategic
importance to the hardwood sector, considering the presence of
commercially viable tree species such as Zambezi Teak.
Timber associations
The Lumber Millers Association of Zambia (LUMAZ) represent
business specialising in the production of sawn timber and
manufactured products, utilising non-threatened species such
as African (Rhodesian) Rosewood, Teak and Mahogany.
Timber processing - Photo courtesy: Ren Hartslief
Timber planks - Photo courtesy: Ren Hartslief
79
Although some members have their own concessions, logs are
also outsourced to concession owners operating under Forestry
Department licenses.
All materials purchased by LUMAZ members are logged and
managed sustainably in line with the Forest Act of 1999. Under
this Act timber is harvested to a management plan approved
by the Forestry Department and all logs are inspected, certifed
and tracked by forestry offcers in the respective concession
areas.
Having already received EU assistance to develop their
business to a level where they can process timber to
internationally acceptable standards, LUMAZ is looking to
establish a joint initiative with other companies or organisations
which would lead to the implementation of verifable forest
certifcation and chain of custody.
Other organisations involved in the industry include the Timber
Producers Association of Zambia (TPAZ). The association
has 13 members who export timber to South Africa. Currently
alternative markets are being explored in the Middle and Far
East.
The future of the timber industry
Government is seeking private sector investment to develop
an expanded plantation-based timber industry, with promising
opportunities for increasing timber exports to South Africa,
currently Zambias main export market for its timber. As such,
the sale of up to 20 000 hectares of ZAFFICO plantations has
been proposed a move that would also generate revenue
for the plantation expansion and recapitalisation programme.
Furthermore, a Forest Industry Credit Facility targeted at rural
populations provides US $500 000 each year for plantation
development.
There are also a number of investment opportunities in wood
processing. Currently most timber is exported in its raw form,
which could otherwise be processed into fnished consumer
and industrial wood products. While government is currently
targeting secondary investment in the timber industry, there
is also an opportunity for processors to be involved in the
harvesting of timber.
NON-WOOD FOREST PRODUCTS
Non-wood forest products (NWFP) are biological products
other than wood, gathered from a range of forest environments,
wild or plantation, including agro-forestry schemes and other
wooded land. NWFPs comprise food and food additives
(edible nuts, mushrooms, fruits, herbs, spices and condiments,
aromatic plants, game), fbres (used for construction, furniture,
clothing or utensils), resins, gums, and plant and animal products.
The majority of Zambians depend on NWFPs for self-
consumption, although the sale of bee products, mushrooms,
baskets and caterpillars also provides much needed income for
rural communities. Trade in honey, beeswax and mushrooms,
which fnd markets both locally and internationally, is the most
lucrative.
The processing of forest products has been identifed as a
priority sector for investment and is therefore entitled to fscal
incentives. Government supports the sustainable management
of indigenous forests, especially for increased production
of Non-Traditional Forest Products such as honey.
An important agro-food system, the honey subsector affects the
livelihoods of more than 15 000 beekeeper households, most
of whom live in the North-Western Province. The government
honey factory in Kabompo, which was privatised in 1987
as North Western Bee Products Ltd (NWBP), is a certifed
alternative trade organisation specialising in organic forest bee
products.
Zambia exports 1 200 tonnes of quality honey to the
United States and European markets annually, and honey
producers anticipate an increase to 5 000 tonnes of honey
by 2015.
The Zambia Honey Council (ZHC) was formed in 2003 to
provide a forum for honey producers, processors and buyers
to discuss issues pertinent to the honey sector. Initially named
the Zambia National Bee Keepers Association, the organisation
changed its name to ZHC to incorporate all stakeholders in the
sector.
Operations are currently confned to three main districts:
Kaoma, Kapiri Mposhi and Kabompo. ZHC works with 4 000
individual honey producers and plans to reach 10 000
producers by the end of 2011. Members will beneft from
training and market brokering/linkage activities undertaken by
ZHC.
Zambia is expected to increase its exports of honey to United
States and European markets in the next few years. In 2010,
export earnings from honey showed signs of surging to over
US $4.8 million, a fgure which is much higher than the previous
years.
There is also a robust trade in traditional medicine, with over 78
plant species of medicinal value. However, the over-exploitation
of medicinal plants through the removal of bark or roots has
seen the depletion of some of these species, while supplies of
herbal medicine are also affected by timber logging. There is
a good market for colourants taken from specifc tree species,
and tannins are used both at the local and national levels.
NWFPs such as bamboo are widely used in traditional crafts
such as basketry, which is an important small-scale industry,
with over half of forest-based enterprises manufacturing
baskets, mats or hats. Basketry and mat making is carried out
on a semi-commercial scale in western Zambia. Reeds are
also widely used for basketry, mat making and thatching in the
vicinity of rivers. Fibres are used for rope and/or string making,
with the end product employed in hut construction, tying of
bundles and for basketry in some instances. Rattan products,
where available, are also used for thatching, mat-making and
basketry.
Pine cones - Photo courtesy: Ren Hartslief
80
Known for its unspoiled national parks and game management
areas, which are home to a great diversity of wildlife and fora,
Zambia also has scenic attractions such as Africas Great
Rift Valley, an abundance of lakes and rivers, and the world-
renowned Victoria Falls. Assets such as a stable political
backdrop, mild climate, fascinating cultural and heritage sites
and plethora of adventure and leisure tourism prospects add to
the countrys appeal as a tourism destination.
Growth in the tourism industry over the past decade has been
signifcant. This has been supported by investments in tourism
facilities, such as hotels, lodges and safari operations, road
rehabilitation projects, the upgrading of the countrys four
international airports to international standards, expanded fight
schedules and intensifed marketing initiatives. The Zambia
Development Agency (ZDA) provides a one-stop-shop for
investors and licensing procedures have been streamlined.
Government is also facilitating the entry of tourists into Zambia
through simplifying border formalities.
The years of positive growth notwithstanding, tourism was one
of the sectors hardest hit by the global economic slowdown in
2009, with the number of international tourists visiting Zambia
declining sharply in the frst half of that year. n 2010, however,
there has been a signifcant rebound in tourist arrivals, a
development that may be attributed to both the recovery in
global economic activity and the 2010 FIFA World Cup in
South Africa. As a result of these favourable developments,
the tourism sector is expected to grow by 25 percent in 2010,
compared to a contraction of 13.4 percent in 2009.
On an annual basis, international arrivals at the countrys
four international airports went up to 679 172 passengers
in 2010 from 438 788 passengers in 2009, representing an
increase of 20.27 percent.
Prospects remain bright for the tourism sector over the
medium-term, in line with a projected upswing in global tourism.
In 2001/12, the main focus of the sector will be to take full
advantage of the recovery in global tourism and reposition
Zambia as a premier nature, wildlife and cultural tourism
destination. The 2011 budget allocation for the tourism sector is
K63.3 billion.
STRATEGIES FOR GROWTH
The tourism policy is based on the goal of sustainable growth
and development. The Tourism and Hospitality Act of 2007
provides for the development of the tourism industry through
enhanced tourism planning, management and coordination.
In this regard, government is establishing the Tourism
Development Fund for purposes of product development,
marketing, training and research, as well as to support
participating local councils in developing tourism-related
infrastructure. A tourism levy will become a major source of
fnancing for the sector.
Infrastructure development
The rehabilitation of infrastructure such as roads, airports and
communications facilities is at present one of the top priorities in
the tourism sector. Infrastructure upgrading is taking place with
assistance from Zambias Cooperating Partners, and studies
are being undertaken to determine the optimal development
strategy.
New areas continue to be opened up wherever there is
potential, in particular the Northern Tourism Circuit, covering
tourist attractions in Northern and Luapula provinces. Other key
interventions include the recapitalisation of the Zambia Wildlife
Authority (ZAWA) and enhancement of park management in
order to increase animal species and reduce poaching, as well
as improving park facilities and infrastructure especially the
Kafue and Lower Zambezi national parks.
To support development of the northern tourism circuit, projects
such as the rehabilitation of Kasaba Bay airport, construction of
the terminal building at Mbala airport, electrifcation of Kasaba
Bay and rehabilitation of the Mbala-Kasaba Bay road were
included in the 2010 budget. By the time of the 2011 budget,
some 70 percent of earthworks on the extension of the runway
at Kasaba Bay airport were complete, while works on the
Mbala-Kasaba Bay road had begun. Electrifcation works are
underway, and will be completed during 2011.
Tourism
Zambias exceptional
tourism asset represents
a key source of
jobs, prosperity and
competitiveness, particularly
in rural areas.
81
With the completion of the Mbala-Mpulungu road, the focus
is now on completing the Mbala-Kasaba Bay road and the
terminal building at Kasaba Bay airport during 2011, with
K38.6 billion allocated for these initiatives.
Road infrastructure programmes focus on rehabilitating rural
and feeder roads so as to facilitate access to tourist attractions
and national parks, as well as to link the national transport
network with regional transport corridors. In view of the fact that
roads in some national parks become impassable during the
rainy season, a rehabilitation programme is underway.
Some K37.7 billion was allocated in 2011 for the development
of roads and infrastructure in the Kafue National Park, the
development of Lusaka National Park, and the creation of a
Tourism One-Stop Shop facility which will provide a single
window licensing platform for tourism operators. In addition,
K1.1 billion has been allocated to upgrade permanent
exhibitions at the Lusaka National Museum.
Tourism marketing and training
Development programmes aim to improve the Zambia brand,
both locally and internationally, as well as improve standards in
hospitality, accommodation and related service industries. The
2011 national budget makes provision for tourism marketing
activities in the amount of K12.8 billion.
The Tourism Council of Zambia (TCZ) and Zambia Tourism
Board (ZNTB) have partnered with the United Kingdom based
Cornell University School of Hotel Administration in order to
re-brand and market Zambia. This is expected to raise the
country's profle among traditional and emerging tourism and
hospitality markets across the world, putting Zambia on the map
as a preferred destination in Africa.
Held annually in Lusaka, the Zambia International Travel Show
(ZITS) is a business-to-business exhibition that enables the
international travel trade industry to meet, network, negotiate
and conduct business. It also complements efforts by the
Ministry of Tourism, Environment and Natural Resources and
ZTB to raise the country's profle internationally.
TOURISM BODIES
Government regulates and monitors the tourism industry
through the Zambia National Tourist Board (ZNTB), an
autonomous statutory body that implements all government
policies on tourism. The board was created for the purpose
of promoting Zambia as an attractive tourist destination and
also facilitating and coordinating development activities at the
national level.
Representing the various tourism organisations that are part of
the industry, the Tourism Council of Zambia (TCZ) has the
goal of facilitating growth through the creation of an enabling
environment. The council is involved in creating the tourism
policy; identifying strategic issues infuencing tourism and
developing proposals to address these issues; providing a
single national voice for the industry in addressing government
and the general public; and collaborating with government to
improve quality and service standards in the industry.
The Zambia Wildlife Authority (ZAWA) acts to conserve
the countrys precious wildlife resource through promoting
the appreciation and sustainable use of wildlife resources.
This is achieved by facilitating the active participation of
local communities in the management of the wildlife estate,
promotion and development of tourism, ensuring that the
economic value of wildlife resources is recognised by public and
private stakeholders and educating the general public.
The National Heritage Conservation Commission (NHCC),
which assists the ZNTB in promoting Zambias national
identity and protecting its diversity, is charged with looking
after objects and relics of archaeological, aesthetic or scientifc
interest as well as managing and maintaining a wide range
of heritage sites and structures. These include rock art sites,
traditional shrines and burial sites, as well as over 600 sites
of architectural or historic importance, comprising buildings,
monuments and ruins, and more than 60 recorded engineering
heritage sites.
RESOURCES & INVESTMENT
Zambia has a large tourism resource base, with the following
attractions making up its main assets:
Wildlife: Comprising one of the largest concentrations of
game in Africa, Zambias national parks boast lion, elephant,
buffalo, cheetah, zebra and giraffe as well as many rare
species and superb birdlife.
Scenic attractions: These encompass waterfalls, rivers,
lakes and mountains, as well as the renowned Victoria Falls,
Kuomboka ceremony - Photo courtesy: Zambia Tourism Board
Ncwala ceremony - Photo courtesy: Zambia Tourism Board
82
which is one of the seven natural wonders of the world as well
as being a world heritage site. Kalambo Falls to the north is
the second highest uninterrupted waterfall on the continent.
Kariba Dam is the worlds second largest man-made lake and
Lake Tanganyika the second deepest natural lake. The vast,
grassy plains of the Zambezi and Luangwa valleys form part
of Africas Great Rift Valley.
Heritage & history: There are sites of geological and
ecological importance, such as a fossil forest and botanical
reserves, and several areas have been declared national
monuments as well as archaeological heritage sites.
Adventure tourism: This spectacular landscape with its
lakes, mountains and rivers provides opportunities for white-
water rafting, canoeing, abseiling, bungi jumping, climbing,
horse riding and even elephant-back safaris.
Environment & climate: Despite its location in the tropical
zone, Zambia has a temperate climate that makes it pleasant
to visit all year round. As it is not as commercialised as
many other safari destinations, there are a variety of unspoilt
wilderness environments.
Tourism has been singled out by government as one of the
priority sectors for investment because it is a labour-intensive
industry and has numerous linkages to other sectors of the
economy. While only a small proportion of tourism assets
are presently exploited, the sector is nevertheless already a
signifcant foreign exchange earner.
The tourism capital of Livingstone near the Victoria Falls serves
as a growth point for development activities. Sites with attractive
natural settings are also readily available in national parks and
game management areas, with the Kafue National Park the
largest potential tourism resource in the country. Other areas
earmarked for development include Lower Zambezi (Siavonga,
Luangwa district), Lusaka and surrounds (for conference
tourism and sports) and South and North Luangwa national
parks and surrounding game management areas.
Investment opportunities exist in:
Transport services and tours, including luxury coaches, air
charters and car hire operations. Organised tours to a variety
of attractions by car, plane, horseback or boat. Game fshing,
photographic or hunting safaris in wildlife areas and national
parks.
The provision of high quality accommodation for international
visitors, conference facilities, and budget lodges for local
tourists, with attractive sites in natural settings readily
available.
Developing cultural heritage sites, including museums, theme
parks and art galleries.
Adventure tourism such as climbing, bungi jumping and hang-
gliding.
Water sports activities on Zambia's many lakes and rivers
sailing, waterskiing, canoeing, white water rafting, boat charter
services and cruises.
Other sporting activities, such as horse riding, golf and tennis,
are well suited to local conditions, with the compilation of
sports-based holiday packages a possibility.
Investment at waterfall sites
Echoes of Zambias unique past can be found in its heritage
sites. Apart from the learning experience, there is much to
do and see for young and old alike, with a variety of activities
allowing visitors a chance to relax in peaceful surrounds, away
from the hustle and bustle of town life.
Hardly a decade ago, Zambia was among the ranks of
Africas less-known tourism destinations, despite its numerous
attractions which range from cultural to natural phenomena.
Today Zambias tourism sector and heritage sites are a beacon
Wild dogs - Photo courtesy: Zambia Tourism Board
Canoeing - Photo courtesy: Zambia Tourism Board
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of hope and number among the sectors attracting the most
exciting developments country-wide.
Zambias waterfalls are prime targets for investment, and
particularly lucrative opportunities exist at the waterfalls
of Sioma Ngwezi, Kabwelume, Kundalila, Ntumbachushi,
Chishimba or Lumangwe. Some 30 metres high and spanning
a breadth of 100 metres, the grand Lumangwe waterfall in
Northern Province is fed by the Kalungwishi River. With a
pleasant sandy beach lying beneath the falls, it is little wonder
this beautiful site is dubbed the miniature Victoria Falls. The
Kundalila Falls, where the Kaombe River plummets some
65 metres into a smouldering cauldron veiled in mist, boasts
great scenic beauty and is famed for its wildfowers.
The National Heritage Conservation Commission (NHCC) is
ready to assist investors wishing to develop any of these sites
into a destination of choice.
PARKS, GAME RESERVES & TOURIST ATTRACTIONS
Zambia has some of the biggest game reserves in the world
and one of the richest wildlife resources on the continent. Most
tourism is concentrated in the more developed parks, which
comprise Kafue, Lochinvar, South Luangwa, Lower Zambezi,
North Luangwa, Kasanka, Mosi-oa-tunya and Sumbu, with the
other parks being more remote and undeveloped. All the main
national parks are accessible by car and plane, and park gates
are generally open from 06:00 to 18:00 daily.
Day or night safaris with experienced guides who have an
extensive knowledge of the fora and fauna are a popular way
of seeing the magnifcent wildlife. While game viewing is most
commonly undertaken from comfortable, open-topped vehicles,
Zambia is also renowned for its walking safaris, not to mention
the novelty of a horseback or even elephant-back safari, or by
canoe or motorised boat.
Professional hunting companies offer safaris, and fights in light
aircraft to the various camps provide splendid photographic
opportunities. Zambias wildlife encompasses excellent bird
watching as well, with over 740 different species. The bigger
national parks (South Luangwa, Lower Zambezi and Kafue)
offer some of the best bird watching opportunities.
The best time for viewing wildlife is during the dry season,
which lasts from May to October, as there is less vegetation
and the animals tend to gather around water holes. The
rainy season sees a dramatic increase in the bird population,
especially during November and December, as well as
spectacular changes to the landscape. While all the major
national parks may be reached by car or plane, some are
inaccessible to motor vehicles during the wet months.
The Victoria Falls
Situated approximately 11 kilometres southwest of Livingstone,
the Victoria Falls are one of the most spectacular waterfalls
in the world and the highest in Africa, at almost 2 kilometres
across and over 100 metres high. During the rainy season over
fve million litres of water surge over the falls every second, and
the clouds of spray can be made out more than 30 kilometres
away. While the falls were called Victoria after the then Queen
of England, their indigenous name is Mosi-oa-tunya the
smoke that thunders. The falls are easiest to view from the
Zambian side, and travellers are able to explore via three
different paths one which leads upstream, another that follows
a cliff path opposite the falls and then across a bridge, and yet
another that descends to the base of the falls.
The town of Livingstone was established in 1905 and takes
its name from the Victorian missionary and explorer, David
Livingstone.
Victoria Falls - Photo courtesy: Zambia Tourism Board
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National parks and game reserves
Part of the Great Rift Valley, South Luangwa National Park is
about 250 kilometres northeast of Lusaka and just 20 kilometres
from Mfuwe International Airport. Bordered by the Muchinga
escarpment to the west and the mighty Luangwa River to
the east, this premier park offers exceptional scenery and an
immense variety of wildlife. Elephant and other mammals such
as leopard, buffalo, zebra, impala and lion gather around the
Luangwa River which is itself home to some of the largest
concentrations of Nile crocodiles on the continent. Cooksons
wildebeest and Thornicrofts giraffe are indigenous to the park,
and there are over 400 species of birds to be found here.
The remote yet game-rich North Luangwa National Park is
situated upstream of the South Luangwa National Park and to
the west of the Luangwa River. In addition to the wildlife species
found in South Luangwa, the park also contains hartebeest,
reedbuck and statuesque eland, with birds such as the giant
owl, crested crowned crane and bee-eater. The beautiful
woodlands are criss-crossed with rivers, including the Mwaleshi
River, which traverses the escarpment in a series of waterfalls.
The park offers a genuine wilderness experience, with access
restricted to the few companies permitted to conduct walking
safaris.
Located between Lusaka and Livingstone, Kafue National
Park is an easy-to-reach yet still wild and remote destination.
The largest national park in southern Africa, Kafues vast
grassland plains and unique ecosystems are home to the
second greatest variety of large mammals after Chobe National
park in Botswana, including lion, leopard, elephant, buffalo,
rhino and cheetah, as well as the unique Kafue lechwe.
The park stretches from the untouched Busanga Plains and
wetlands in the north to the Itezhi Tezhi Dam in the south,
traversed by the Kafue River which fows through the heart of
the park.
Situated on the Kafue River's foodplain, the national parks of
Lochinvar (a Wetland of International Importance) and Blue
Lagoon are known for their vast herds of Kafue lechwe a
small Zambian antelope as well as the great variety of migrant
birds which visit the rain-swollen lagoons around April and May.
The Ngwisho Hot Springs near the edge of Lochinvar are one of
the oldest archaeological sites in Africa.
There are wilderness safaris in the Mosi-oa-tunya National
Park, which stretches from the Victoria Falls up the Zambezi
River for about 12 kilometres. Wildlife here includes antelope,
zebra, wildebeest, giraffe, warthog, elephant and the only white
rhinos in Zambia, and there are safaris on horseback or
elephant back, for the more adventurous as well as game
drives, fshing excursions and rhino walks here.
Lying across from the famous Mana Pools Reserve in
Zimbabwe, the Lower Zambezi National Park is an untouched
wilderness dominated by the presence of the great Zambezi
River, which acts as a magnet for wildlife. Game viewing can be
done on a canoe safari or game drives and walks, with anything
from elephant and hippo to lion and leopard to be seen. Fishing
and bird watching are also popular.
Zambia's frst privately-managed reserve, Kasanka National
Park may be one of the smaller parks, but its diverse vegetation
from lush wetlands and papyrus swamps to evergreen forests
harbours a great variety of unusual birds and mammals.
Millions of fruit bats congregate here towards the end of every
year in a spectacular display.
Situated close to the Angolan and Namibian borders, Sioma
Ngwezi National Park has a wildlife population including
elephants and giraffe that roams freely between the unfenced
park, the surrounding game management area and the Zambezi
River. Guided safaris are recommended.
Liuwa Plains National Park situated in the remote western
region is the location for one of the great spectacles of
the African continent the migration of vast herds of blue
wildebeest. Liuwa is also home to black-maned lion and wild
dog, and has abundant birdlife, including secretary birds,
crowned and wattled cranes, fsh, tawny and Marshall eagles,
woodland kingfshers and white-bellied bustards.
Elephant walk - Photo courtesy: Zambia Tourism Board
National Heritage Conservation Commission (NHCC) is a statutory body under the Ministry of Tourism, Environment and Natural Resources Charged with
the responsibility of conserving Zambias natural and cultural heritage for research, sustainable tourism development, education and enjoyment of all the
people now in the future.
The National Heritage Conservation Commission is one of the oldest Government Grant Aided Statutory Bodies.
1912 Bushmen Relics Proclamation Act
1930 Protection of Archaeological Objects Ordinance
1948 Commission for the Preservation of Natural and Historical Monuments and Relics Act
Over all these years the cardinal function has been the conservation of heritage as defned in the laws.
1989 Heritage Act was repealed to the current one Cap 173 (National Heritage Conservation Commission Act) it led to redefning the mission of the
Commission by making it more responsible to the prevailing socio-economic, cultural, political and environmental expectations both at national and local
levels.
Following this in 1997 NHCC went a step further by decentralizing its operations to the creation of four cost centres namely East-Central Region-Lusaka,
Southwest Region-Livingstone, Northwest Region-Solwezi and Northern Region-Kasama. The Headquarters are in Lusaka. The four regions are
strategically located to ensure effective and effcient heritage conservation by cost effective management and implementation of conservation programmes,
full geographical coverage and increased documentation and management in each.
Since the NHCC was created by the Natural and Historical Monuments and Relics Act, Cap. 266 of the Laws of 1948, which succeeded the Bushmans
Proclamation of 1912, It is therefore one of the oldest Statutory Bodies in Zambia, with the following powers and functions enshrined in the Act:
a) To preserve, protect and manage Zambias natural and cultural (i.e. the prehistoric, historic and contemporary monuments and relics) heritage.
At present there are over 3,600 such sites recorded and hundreds of thousands of such relics inventoried, all of which are protected. Declaration
of some of this heritage as national monuments ensures that they are protected in perpetuity. There are so far over 70 declared in monuments,
and many more are due for declaration. Listing, recording and inventorying of this heritage is an on-going activity of the National Heritage
Conservation Commission.
b) To present Zambias heritage to the public, this means to develop and provide facilities at national monuments for tourist purposes.
c) To encourage and promote the preservation and protection of that heritage so as to create a more likely awareness of the public of the
irreplaceable value of their heritage and the grave dangers which threaten it;
d) To erect commemorative plaques and standard monuments at certain spots or places of importance in the nations history, giving information
about historic events which occurred at such places.
e) To purchase or otherwise acquire any monument or relic if it is in the best national interest for its preservation;
f) To assume guardianship of any monument or relic if so requested by the person owning or controlling such a monument or relic and as trustees
for the government to accept any such monument or relic which the owner desires to give or has bequeathed to the government;
g) To control the movement and export of heritage objects (relics) and to lend or donate such objects to any museum or public institution for the
purpose of displaying to the public and preservation; and,
h) Finally to co-ordinate all activities in connection with monuments and relics in order that monuments and relics are restored and exhibited to the
public as tokens of the past and may serve as an inspiration for the future.
The organization structure of the National Heritage Conservation Commission comprises of Headquarters and Four (4) Regions.
The Headquarters is created to manage and monitor Finances, Human Resources, Planning and Provision of Specialized and technical support
services as well as production and dissemination of information to Regions.
The Four (4) Regions are core components of the structure in as far as conservation and protection of Zambia's Heritage is concerned.
Executive Directorate: - This offce is responsible for planning, organizing, directing, coordinating and controlling the activities of the Commission.
Conservation Services Department: - This department is responsible for managing the Heritage Planning and provision of Technical as well as
conservation services in order to facilitate the smooth operation of the Regions.
Human Resources and Administration Division: - The purpose of this division is to manage the provision of Human Resources and Administration
services in order to promote smooth operations at both headquarters and Region levels.
Finance Division: - The Division is created for the purpose of managing the Finance resources in order to facilitate the operations of the Commission.
nformation and Public Relations Division: - The purpose of the Division is to manage the information and public relations services as well as
disseminating heritage information to staff and public in order to promote public awareness on the value and need to conserve Zambias heritage.
Audit Unit: - The unit's purpose is to plan, implement and control audit programmes in order to ensure that funds warranted to the Commission are
being used in accordance with Finance Regulation.
Regional Directorate: - The Regional Directorate is the feld operational Directorate of the Commission. They are responsible for development,
implementing and evaluating heritage conservation programmes related to:-
i. dentifying and assessing the signifcance of unprotected heritage;
ii. Recommending research on heritage;
iii. Carryout research on heritage
iv. Identifying, recording and evaluating documenting protected heritage;
v. Conducting regional law enforcement and compliance programmes;
vi. Protecting Heritage from detrimental effects and conserving heritage for the future generation.
Cultural Heritage Division: - The purpose of this Division is to supervise coordinate and
control the cultural conservation functions in order to facilitate and ensure effective
mplementation of the Heritage Conservation programme
At Headquarters this Division initiates the development of corporate plans, policies, standards, guidelines, regulations and legislation relating to Cultural
Heritage in order to promote effective sustainable heritage management.
Natural Heritage Division: - The purpose of this Division is to supervise, co-ordinate and control the Natural Conservation functions in order to facilitate
and endure effective implementation of the Regional Conservation Programmes.
At Headquarters, the division develops corporate plans, policies, guidelines, regulations and legislation relating to National Heritage in order to promote
effective and sustainable heritage management
Human Resources and Administration Unit: - This Unit is there to provide all Human Resources and Administration Support services to the Region in
order to facilitate the smooth running of the Regional Directorate.
Accounts: - This Unit is there to provide all the Financial resources to the Regions in order to facilitate the smooth running of the Regional Directorate.
Survey Unit: - This Unit is for the purpose of providing Land Survey and Cartographic Services in the Region in order to facilitate the conservation
protection of Heritage.
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Hugging the shoreline of Lake Tanganyika, Sumbu National
Park provides a haven for hippo, crocodile, famingo and other
water birds. A motorboat on the lake is a great vantage point
from which to watch the variety of birdlife and game, which
includes buffalo, lion, antelope, zebra and leopard.
The beautiful montane highland area of Nyika Plateau
National Park is located at the eastern-most tip of Zambia on
the Malawian border and is a great area for hiking. Grasslands,
valleys and masses of wildfowers cover its 2 000-metre high
plateau. Game viewing includes a number of buck species in
particular the rare red duiker as well as zebra, warthog and
leopard. The Chisanga Falls are a short hike away.
The famed Chimfunshi Wildlife Orphanage 60 kilometres
west of Chingola was founded in 1983 by David and
Sheila Siddle and is the largest chimpanzee sanctuary and
rehabilitation centre in the world. Home to over 100 orphaned
chimpanzees, many of whom were confscated from poachers
or rescued from dilapidated zoos and circuses, this non-proft
refuge also cares for a host of other sick, wounded or unwanted
animals.
Transfrontier conservation areas
Currently under development, the Malawi/Zambia transfrontier
conservation area (TFCA) includes the Nyika TFCA, which
is centred on a high, undulating montane grassland plateau
rising over 2 000 metres above the bushveld and wetlands of
the Vwaza Marsh. A joint law-enforcement project operating as
a single unit across international borders to combat poaching
has been deployed with resounding success in the Nyika TFCA
since 2005. Thanks to this, a wildlife restocking programme for
Nyika National Park and Vwaza Marsh Wildlife Reserve was
begun in 2007.
The Kavango-Zambezi (KAZA) TFCA is situated in the
Okavango and Zambezi river basins where the borders of
Angola, Botswana, Namibia, Zambia and Zimbabwe converge.
It is set to become the worlds biggest conservation area and
will eventually span an area of approximately 287 132 square
kilometres, taking in the Caprivi Strip, Chobe National Park,
the Okavango Delta (the largest Ramsar site in the world) and
the Victoria Falls. Kavango-Zambezi promises to be southern
Africas premier tourist destination, with the largest contiguous
population of African elephant (approximately 250 000) on the
continent.
The Lower Zambezi-Mana Pools TFCA between Zambia
and Zimbabwe lies in the Zambezi Valley, which has for
millennia been used by wildlife as a thoroughfare between the
escarpment and the Zambezi River. Mana Pools is a World
Heritage Site based on its wildness and beauty, wide range of
large mammals, over 350 bird species and aquatic wildlife, with
hippopotamus, crocodile and many different types of aquatic
birds also associated with the pools.
The Liuwa Plain-Mussuma TFCA between Angola and Zambia
protects the third largest migratory population of blue wildebeest
in Africa. Every year massive herds of blue wildebeest migrate
from Zambia to Angola and back again, traversing the plains in
their thousands and very often mingling with zebra along the
way.
Hippo watching - Photo courtesy: Zambia Tourism Board
89
Physical Infrastructure
Reliable and affordable utilities as well as modern and effcient
communications and transport systems are essential for further
private sector investment. The focus is currently on building and
rehabilitating roads and bridges, as well as electricity generation
projects, schools and hospitals, among others.
Following the development of a policy and corresponding legal
framework, Public-Private Partnerships (PPPs) have emerged
as an important modality for fnancing large infrastructure
projects. Such partnerships enable government to raise
additional resources to fnance large investment initiatives,
while also allowing the private sector to participate in projects
that may have been unviable without government participation.
For 2011, the continued revival of the transport and
communication sectors is anticipated, as well as further
growth in the construction sector.
CONSTRUCTION
The construction sector has a major infuence on Zambia's
development, as the countrys economic activity depends to a
large extent on the state of infrastructure, particularly the road
network. Despite a slight drop in 2008 on account of shortages
in the supply of cement and other materials, the sector has
performed well over the past few years, driven by commercial
and residential buildings and the development and construction
of new mines. Although the industry was expected to operate
somewhat below par in 2009 in the wake of the global fnancial
crisis, construction activities remained robust, with growth rising
to 9.5 percent.
The sector is projected to record growth of 10 percent in 2010
on account of the continued strong demand for residential,
commercial and public infrastructure construction projects
across the country. The expanded production of cement by local
manufacturers has also aided growth.
Continued expansion is anticipated for 2011, when the sector
will be boosted further by residential and commercial property
development as well as large public expenditures in the roads
sector. In addition, construction works at the Kafue Gorge
Lower hydropower project and various mini-hydro projects will
begin during the year.
Property development initiatives
Zambias construction boom is evident in the many new
commercial, residential and industrial property developments
in progress. This is particularly evident in Lusaka, where
numerous offce blocks, shopping complexes and hotels have
sprung up in the past few years.
The US Embassy in Lusaka recently completed a multi-building
offce complex to the tune of US $126 million. Another high
profle offce project is to be located at the Embassy Park in
Lusaka. In addition, construction work has begun on the
US $200 million Jewel of Lusaka at Levy Junction. Being
developed by Liberty Properties on behalf of the National
Pensions Scheme Authority (NAPSA), it will include retail,
offce, hotel and residential facilities.
A US $100 million expansion project has been completed
at the Manda Hill Shopping Complex. Further afeld, the US
$160 million Copperbelt City in the Copperbelt town of Kitwe,
a mixed-use development venture between Zambias Phoenix
Materials and HBW, will comprise a shopping mall and hotel.
The Zambia Development Agency (ZDA) has signed a deal
with Protea Hotels Zambia worth US $90.3 million to facilitate
the expansion and construction of 15 new hotels in Zambia.
Furthermore, plans are well advanced for TAJ Hotels group
to begin building a fve-star hotel in Livingstone. n addition,
Intermarket Securities Limited (ISL) is to develop a three-star
hotel, business park and other infrastructure such as student
hostels and staff houses at the University of Zambia under a
PPP arrangement at a cost of somewhere between
US $60-90 million.
Launched in April 2011, Roma Park is a new multi-million dollar
development by CDP Properties, and is situated 6 kilometres
from Lusakas central business district. The 104 hectare
development will include mixed-income residential, commercial
and industrial properties, with a shopping centre, big-box retail
space, restaurant and conferencing facilities, warehousing,
manufacturing and offces. To be developed in two phases over
fve to seven years, it is the frst private commercial property to
be zoned as an Industrial Park in Zambia, under the ZDA Act of
2006.
Infrastructure development
in particular roads and
energy remains one of
governments top priorities
in the quest to raise
Zambias growth potential
and improve economic
diversifcation.
92
A new 50 000-seater stadium is being built in Lusaka alongside
the rehabilitation of the historic Independence Stadium, while
work on a 45 000-seater stadium worth some US $65 million is
underway in Ndola, and should be completed before the
end of 2011. These works are being undertaken by Shanghai
Construction of China and Anhui Foreign Economic
Construction Corporation, respectively.
Housing
In view of Zambias rapid population growth and rural-urban
migration, housing is a top priority. Positive developments in
the fnancial sector, particularly with respect to home loans,
along with increasing incomes of Zambian over the past few
years, have made property ownership more affordable to many
citizens. As the existing housing defcit is too large for the state
to deal with alone, there is a need to integrate government and
private sector efforts.
In 2011, a total of 12 000 houses will be built in Southern,
Lusaka, and the Copperbelt provinces under the PPP
framework.
Some success has been achieved through the National
Housing Authority (NHA), which has schemes in Kabwata
Estates, Woodlands Extension, Nyumba Yanga and on the
Copperbelt, for executive, high cost, medium cost and low cost
housing. NHA is also involved in the upgrading of unplanned
settlements, employment creation for unskilled as well as
skilled labour in the construction-related areas of engineering,
architecture and surveying, and the promotion of local building
materials and technology.
In 2010, the NHA secured a K6.5 billion loan from Shelter
Afrique for the construction of housing units countrywide. The
authoritys vision is to build 1 000 housing units in all the 72
districts by 2015.
The building of 264 housing units by the NHA under the NAPSA
project in Nyumba Yanga in Lusaka is in progress. Furthermore,
NAPSA is presently constructing housing units in Kalulushi.
In order to deal with unplanned urban settlements, integrated
development plans are being developed, with those for
Lumwana, Lusaka and Solwezi already complete.
TRANSPORTATION
Zambias road, rail and air transport networks are critical to
national and regional development. In addition to facilitating
the infux of business people and leisure tourists, an effcient
transport infrastructure is pivotal to trade. Road and rail
transport are traditionally the most widely used transport
modes, although inland water transport is also used.
Mpulungu harbour on Lake Tanganyika sees shipments
of cement, sugar, pharmaceuticals, steel and many other
products. Trans-shipping for both imports and exports includes
the ports of Durban (South Africa), Dar-es-Salaam (Tanzania),
Walvis Bay (Namibia) and Beira (Mozambique).
Growth in the transport, storage and communications sector
rose to 14.9 percent in 2010 compared to 7.6 percent in 2009.
This increase was mainly due to very good performance in
the air and rail transport sectors, which both rebounded from
negative growth the previous year.
Regional transport corridors
One of the most important determining factors in export
competitiveness is the cost of transport. In this regard,
government is working to reduce the presently high inland
transportation costs by improving regional transport links both
road and rail. Current projects include:
The recently completed Chipata-Mchinji railway line (Malawi,
Mozambique)
Rehabilitation of the Mwinilunga-Jimbe Road (DRC)
Rehabilitation of the Mongu-Sikongo Road (Angola)
mprovements to the Great East Road (Malawi, Mozambique)
Construction of the Kazungula Bridge over the Zambezi River,
which will replace the existing ferry (Botswana, Zimbabwe)
Road infrastructure
In order to improve the state of Zambias road infrastructure,
government, with the help of the international community and
cooperating partners, developed the Road Sector Investment
Programme (ROADSIP). At the beginning of ROADSIP Phase I
in 1997, less than 10 percent of the paved road network was in
good condition. The programmes target was to improve at least
50 percent of the paved road network in the country to good
condition. At the completion of ROADSIP I in 2002, this target
had been exceeded, with 59 percent of paved roads in good
condition. ROADSIP Phase II is running from 2005 to 2013.
Road user charges are one of the main sources of fnancing
for road maintenance under ROADSIP. Current charges are,
however, too low to meaningfully contribute to the cost of
road maintenance. As such, the motor vehicle licence fee was
increased by 50 percent at the beginning of 2011. In addition,
the boards of the Road Development Agency and National
Road Fund Agency have been reconstituted to enhance
operations and inter-agency coordination.
While government has invested heavily in the construction and
rehabilitation of roads across the country in the past fve years,
much more needs to be done, particularly with regard to rural
roads. There have subsequently been signifcant increases in
resource allocations for road infrastructure development, with
the budget more than doubling between 2010 and 2011 from
K1 461.9 billion to K3 098 billion. Of this, K2 881 billion is being
spent on road construction and rehabilitation, and K150.8 billion
on the building and maintenance of bridges.
The following major roadworks are being undertaken in 2011:
Mongu-Kalabo
Kalabo-Sikongo (Angola Border)
Sesheke-Senanga
Landless Corner-Mumbwa
Kabompo-Chavuma
soka-Muyombe
Chipata-Mfuwe
Chipata-Lundazi Lot 2
Mukuku Bridge-Samfya
The 'Bottom Road' from Siavonga to Sinazongwe.
The conversion of the Kitwe-Chingola-Kasumbalesa road
into a dual carriageway was to commence in 2011.
Furthermore, government will continue with its programme of
constructing and rehabilitating rural feeder roads. For this, each
provincial rural roads unit received K6 billion in 2011. Roads are
also being rehabilitated in the urban areas of Lusaka, Chingola
95
and Chipata, among others, while bridges are being constructed
across the country at Mufuchani, Sioma, Lufubu and Chiawa.
Transport companies
Specialising in bulk transportation of both dry cargo and
petroleum products, Keren Motors Limited is a long-established
company with a solid client base. The company has in recent
years diversifed into mining operations, which are undertaken
on a contract basis for Lafarge Cement Zambia Plc.
Wet cargo is transported on contract arrangements with local oil
marketing companies, overseas clients and the government of
Zambia. Transportation of dry cargo, which comprises foodstuffs
and other commodities, is undertaken on a contract basis
for the World Food Programme, UNICEF, the Food Reserve
Agency and local mining companies, among others.
Air transport
Zambia has four international airports; namely, Lusaka,
Livingstone, Mfuwe and Ndola, with several secondary airfelds
and airstrips in Chipata, Kitwe, Kasama, Mongu, Solwezi and
Mansa. Situated 24 kilometres from the centre of Lusaka
city, Lusaka International Airport is Zambias main airport and
connects the country with the rest of the world.
Following the liquidation of the state-owned Zambia Airways
in 1995, the air transport sector was liberalised to encourage
private sector participation. In the ensuing years, a number
of private local airlines arose to fll the gap left by the national
carrier, and various Bilateral Air Services Agreements have
been signed with other states whose airlines were interested in
operating routes into Zambia and vice-versa.
Rehabilitation work in the past few years has included
improvements to the runway and buildings at Lusaka
International Airport. Chipata Airport has been rehabilitated
and reopened, and the length of the runway at Livingstone
International has been increased from 2.3 to 3 kilometres to
facilitate long-haul fights. For 2011, there is an allocation of
K28.4 billion for the rehabilitation and upgrading of airports and
airstrips, including those at Kasaba Bay, Mansa, Kasama and
Mongu.
Rail transport
Zambias rail networks have for many years been controlled
by Zambia Railways and the jointly-owned Tanzania-Zambia
Railways (TAZARA). The Zambia Railways network links
Zambia to the DRC and Angola in the north and Zimbabwe and
South Africa in the south, while the TAZARA network links into
the line at Kapiri Mposhi and runs to the port of Dar-es-Salaam
in Tanzania.
As part of governments privatisation policy, Zambia Railways
was concessioned during 2003 to Railway Systems of
Zambia (RSZ), a consortium comprising New Limpopo Project
Investments (NLPI) and Spoornet, both of South Africa. The
objectives of the concession were to allow the private sector to
inject capital into the company to improve its competitiveness
and help divert traffc from roads back to rail, thereby reducing
overall transport costs. The concession is a long-term
agreement, comprising a 20-year lease period. By 2011, 17
locos and 600 wagons had been overhauled.
96
Further liberalisation within the transport industry has seen
the private sector involved in the construction of a number of
railways on a build, operate and transfer basis. The opening of
mines in the North-Western Province particularly the massive
Lumwana mine is also spurring infrastructure development.
The recently completed Chipata-Mchinji railway line has given
Zambia its shortest sea route to the Indian Ocean port of
Nacala in Mozambique.
Having obtained a soft loan from China, TAZARA is set to
receive six locomotives and 90 copper wagons in November
2011, which should help to boost its haulage capacity and
complement the feet of 11 engines that the company already
operates. TAZARA has the potential to haul over 5 million
metric tonnes of cargo annually, but only managed to transport
about 460 000 metric tonnes in 2010. Meanwhile, TAZARA has
entered into partnership with RSZ, which will help to ferry cargo
bound for Dar-es-Salaam in order to meet increased demand
from the mines.
COMMUNICATIONS
Since the liberalisation of the communications sector, many
positive developments have taken place in telecommunications,
broadcasting and information communications technology
(ICT), such as the provision of mobile telephony services
and internet facilities, with deregulation, privatisation and
wireless technologies having opened up new areas of potential
investment.
In December 2009, the Communications Authority of Zambia
(CAZ) announced the change of its name to the Zambia
Information and Communications Technology Authority (ZICTA).
This was as a result of the operationalisation of the Information
and Communications Technology (ICT) Act of 2009.
The name change is in line with the convergence of
technologies in what used to be different sectors; namely,
telecommunications and information technology (internet).
These formerly distinct segments have now become one in
terms of both the delivery of infrastructure and consumer
gadgets. A unifed licensing regime will enable more competition
in all market sectors from existing and new players.
The ICT Act, the Electronic Communication and Transactions
(ECT) Act and the Postal and Courier Services Act were
also operationalised in 2009. ZICTA thus also regulates
postal and courier services, a former function of the
Ministry of Communications and Transport. Additionally,
electronic transactions have been legalised and regulated.
The high cost of the international telecommunications gateway
licensing fees has been cited as one of the main reasons
for Zambias expensive communications. For this reason,
government liberalised the international telecommunications
gateway in 2010, a move which resulted in a 97 percent
reduction in charges, from US $12 million to US $350 000.
97
Within days of this development, mobile operators reduced
tariffs on international calls by up to 70 percent.
In 2011, the income tax structure for the telecommunications
sector was aligned with that of the banking sector, with profts
of K250 million or below taxed at 35 percent and profts above
K250 million attracting a tax rate of 40 percent.
ICT infrastructure and services
Fibre optic cables, which are used for fxed and mobile
telecommunication as well as the internet, provide access to
high speed broadband width for data transmission. All nine
provincial centres are now connected to the fbre optic network.
The second phase, which will see the linking of districts, is
currently in progress. Zambia has also been connected to the
undersea cable.
The Zambia Telecommunications Company Limited (ZAMTEL),
the countrys national telecommunications service provider,
has historically owned the monopoly on fxed lines and
the international telecommunications gateway. It provides
approximately 90 000 fxed lines throughout the country and
also operates Cell-Z, one of Zambias three mobile operators.
In order to improve the quality of service and reduce costs in
the telecommunications sector, government has divested
75 percent of its equity in ZAMTEL to LAP Green Networks of
Libya, which has already injected US $64 million for operations
and has committed to invest an additional US $75 million.
ZICTA has begun the process of setting up ICT access facilities
in rural areas and commissioned the frst such centre in Mongu.
Mobile telephony
The provision of mobile telephony services is seeing
remarkable growth, with improvements in extension of
coverage and service quality. Zambia's leading cellphone frm
is Zain (formerly Celtel), which has a market share of around
75 percent, followed by MTN (formerly Telecel) from South
Africa. Cell-Z is ZAMTELs cellular service. Bharti Airtel of India
purchased majority shares in Zain during 2010.
The communications sector is expected to be a strong driver
of growth in 2011 following the launch of third generation
mobile services in the country. This technology allows for the
provision of high-speed internet services in areas that are
currently unserviced by traditional internet service providers,
revolutionising the industry as did the innovation of mobile
banking. In addition, recently announced reductions in call
tariffs are expected to further boost growth.
Developments during 2010 saw mobile service providers
teaming up with banks, broadcasting stations, farmers
organisations and other service providers for short message
98
system (SMS) initiatives and solutions. Furthermore, MTN
launched its Blackberry services and continued to expand its
network during the year.
WATER SUPPLY
Zambia is blessed with abundant water resources, which cover
some 11 890 square kilometres of the countrys total area.
Water resources comprise lakes particularly Lake Tanganyika,
Kariba Dam, and lakes Bangweulu and Mweru as well as a
number of rivers. Kariba Dam, a major supplier of Zambias
water needs, is 280 kilometres in length, has a surface area of
5 580 square kilometres and holds 185 billion cubic metres of
water.
While the country has suffcient water resources, factors
such as urbanisation as well as demands from mining and
manufacturing industries have increased pressure on water and
sanitation services, which need to be developed more effciently
for sustainable and environmentally safe usage. Increasing
access to clean water and sanitation continues to be a major
goal of government, not least in order to prevent water-borne
diseases, and Zambia is committed to achieving the target of
74 percent access to safe drinking water by 2015 in line with the
UNs Millennium Development Goals.
Budget resources allocated to this key sector increased by
28 percent to K555 billion in 2011. This will be used to construct
boreholes, repair water reticulation systems and provide pit
latrines. Out of this allocation, K179.3 billion goes towards
the National Rural Water Supply and Sanitation Programme,
with K135.8 billion being used to construct boreholes and
water points in rural areas, and K6 billion to provide sanitation
facilities at the district level.
At the same time, urban and peri-urban water and sanitation
programmes have received a budgetary allocation of
K166.3 billion. Of this, K110.1 billion went to support the Nkana
Water and Sewerage Company to extend water and sanitation
facilities to additional households in Kitwe, Chambeshi, and
Kalulushi. K56.2 billion will be used to improve other water
supply and sanitation facilities under the National Urban and
Peri-Urban Water Supply and Sanitation Programme. An
additional K98.3 billion has been allocated to water supply
and sanitation programmes in Eastern, Luapula and Northern
Provinces.
ENERGY
Zambia has an abundance of energy resources, the most
important being hydroelectric power, with an estimated
hydropower capacity of 6 000 megawatts. Peak demand
currently stands at about 1 580 megawatts, while available
generation capacity is some 1 401 megawatts and installed
capacity around 1 739 megawatts just 30 percent of total
potential capacity. The two main hydropower stations are
Kafue Gorge (990 megawatts) and Kariba North Bank (600
megawatts).
Hydropower stations supply the national grid while diesel power
generating plants supply isolated loads, mainly in remote
areas not connected to the grid. There are inter-connectors to
Zimbabwe and the Democratic Republic of Congo (DRC), which
are the two most important electricity export grids.
Alternative sources of energy are presently being sought, such
as solar power, bio-fuels and thermal power generation, while
the capacity of existing hydroelectric power stations is being
expanded. Intrinsic to this process is the raising of electricity
tariffs to make investment in new capacity proftable and to
attract private interest. Another pressing need is to ensure the
security of supply of petroleum products.
Government approved a new multi-year tariff adjustment
framework in 2009. To ensure that tariffs allow for cost recovery,
an average increase of 25.6 percent in electricity prices was
approved in July 2010.
In the 2011 budget, the customs duty of 15 percent on
imported electricity was removed.
Electricity regulation and supply
The Zambian power sector is governed by three pieces of
legislation:
The Energy Regulation Act (1995), which established the
Energy Regulation Board (ERB)
The Electricity Act (1995), which abolished the statutory
monopoly of ZESCO in the power sector and provided for new
entrants
The Rural Electrifcation Act (2003), which aims to facilitate
expanded electrifcation in rural areas and established the
Rural Electrifcation Authority (REA)
The ERB is responsible for the licensing, monitoring and
supervision of operators in the energy sector, as well as
the approval of electricity tariffs. In consultation with other
statutory bodies like the Zambia Competition Commission, the
board monitors and promotes competition within the energy
sector, while minimising the environmental impact of the
production and supply of energy and storage and use of fuels in
conjunction with the Environmental Council of Zambia.
The major distribution network falls under the Zambia
Electricity Supply Corporation (ZESCO), the national
electricity utility, which was successfully commercialised in
2005. The corporation operates and maintains a high voltage
transmission system, is responsible for all electrical power
imports and exports in the country, and provides retail services
to all but the largest mining customers on the Copperbelt.
Copperbelt Energy Corporation (CEC) is the sole distributor
of electricity to the major mines in Zambia. Currently, CEC buys
electricity from ZESCO under a bulk supply agreement that
expires in 2020.
Based in Kabwe, independent power producer Lunsemfwa
Hydro Power Company generates 48 megawatts of power that
it sells to ZESCO under a power purchase agreement.
Current infrastructure development
ZESCO faces a number of challenges in meeting the nations
demand for electricity, and Zambia was signifcantly affected
by load shedding in 2007 and 2008. Subsequent measures
undertaken to increase power generation capacity are adding
210 megawatts of electricity to the national grid in the short
term. The frst of these projects, involving the upgrading and
rehabilitation of generation infrastructure at Kafue Gorge, has
already added an additional 90 megawatts.
99
Several projects are taking place under the PPP framework in
the energy sector. When completed (between 2013 and 2015)
they will add an additional 1 085 megawatts to the national grid.
Impressive progress is being made on the US $430 million
Kariba North Bank Extension Project, which is on track to
commence operations in 2013. This will bring the total installed
capacity at the power station to 1 080 megawatts.
The 120-megawatt Itezhi-Tezhi hydropower plant is being
developed by Itezhi-tezhi Power Corporation (ITPC), a company
jointly owned by ZESCO and TATA Africa of South Africa. Set
to begin in 2011, the project will cost approximately US $230
million and should be fnished by 2015.
Work on the 700-megawatt Kafue Gorge Lower hydropower
project is expected to commence in mid-2011 and be completed
by mid-2016. One of Africas largest energy sector PPPs,
the project will cost in the region of US $1.5 billion and is
being developed by ZESCO in partnership with Sino Hydro
Corporation of China.
CEC is to spend US $120 million on the development of the 33-
megawatt Kabompo Gorge hydroelectric project on Kabompo
River in North-Western Province. The project is earmarked
for commissioning by 2015. The 218-megawatt Kalungwishi
hydroelectric project, which is being built by Zambian company
Lunzua Power Authority, will cost in the region of US $641
million. Construction is scheduled to begin in 2011 for both
projects.
The ERB has also approved the construction of a 50 megawatt
heavy fuel oil (HFO) powered thermal plant by Ndola Energy
Company (NEC) at an estimated cost of US $65 million. In
addition to stabilising voltage on the Copperbelt, the NEC plant,
which will be adjacent to NDEN Petroleum Refnery in Ndola,
will address the storage capacity challenges INDENI has had in
stockpiling HFO.
There is also an urgent need to improve the supply of electricity
in the most remote areas of Zambia. Given the high cost of
building lengthy distribution networks, government has begun
to develop a number of mini-hydro projects aimed at supplying
smaller local areas with electricity.
These projects are taking place through the Rural Electrifcation
Programme, for which K314.3 billion has been set aside in
2011, compared with K234.7 billion in 2010. This should help
government attain the Sixth National Development Plan (SNDP)
target of increasing access to electricity from 3 to 15 percent of
the rural population by 2015.
Zambia is also pursuing the development of transmission
inter-connectors with neighbouring countries. One such project
is the Zambia-Tanzania-Kenya power inter-connector. Other
investment opportunities in electricity transmission include the
Zambia-Malawi inter-connector; Zambia-DRC inter-connector;
and Solwezi-Kolwezi inter-connector.
Petroleum supply and storage
The nations strategic fuel reserve capacity has been enhanced
by the completion of the 40 million litre diesel tank in Ndola.
Furthermore, government has temporarily leased the CECs
diesel storage tanks at Luano in the Copperbelt.
A Zambian hrm - Basali Ba Liseli Resources - is to
construct a US $1.5 billion oil pipeline from New Lobito Oil
rehnery in Angola to Kapiri Mposhi in Zambia to provide
a reliable and sustainable supply of hnished petroleum
products.
100
The Sixth National Development Plan (SNDP) launched in
January 2011 focuses on access and participation, quality and
relevance, and effciency and effectiveness in the education
sector. It emphasises expanding access to high school and
tertiary education. Zambias government envisages innovative
and productive life-long education and training for all by 2030.
The role of the private sector particularly in the case of Public-
Private Partnerships (PPPs) is becoming ever more important
in developing educational infrastructure.
The 2011 budget saw the allocation of K3 828.8 billion,
or 18.6 percent of the total budget, to education and
skills development. This is 15.3 percent higher than the
allocation for 2010.
Over the past past fve years, government has followed a
dual strategy of accelerating infrastructure development while
ensuring requisite staffng of facilities.This will continue in 2011
and over the SNDP, with additional emphasis on upper basic,
secondary and tertiary education.
PRIMARY & SECONDARY EDUCATION
The introduction of free primary education in 2002 saw the net
primary school enrolment rate increasing dramatically from 68.1
percent in 2000 to 92.3 percent in 2006. There has also been
an increase in school completion rates at grade seven, from
81.6 percent in 2005 to 91.7 percent in 2009. The pupil-teacher
ratio for grades one to four improved from 80.6 percent in 2005
to 75.6 percent in 2009.
While secondary school enrolment has not been as successful,
school completion rates have risen from 63.6 percent in 2000
to current fgures of close to three-quarters of enrolled pupils
completing their secondary school education.
The provision of free primary education and the re-entry policy
have given many more pupils access to education, although
secondary education continues to be limited, with rural
Zambians having far less access to either primary or secondary
school education than their urban counterparts.
In 2010, efforts to recruit and train new teachers at primary
and secondary school levels resulted in 2 500 new teachers
entering the educational system. In 2011, government will
recruit 5 000 teachers, for which a provision of K131.6 billion
has been made. Another K46.4 billion has been provided for the
procurement of desks and learning materials, and K159 billion
towards the settlement of personnel-related arrears.
Between 2009 and 2010, 5 027 classrooms were constructed
in basic schools with community input. In addition, 51 basic
schools were completed using contractors. To help accelerate
the infrastructure development programme, government set
aside K444.2 billion in 2011 for the following projects:
Copperbelt: The construction of one basic school was
completed, while the construction of fve high schools is
ongoing
Lusaka: Four basic schools have been completed, while
construction of seven high schools is ongoing
Luapula: One boarding high school and six basic schools were
completed, while construction of three high schools is ongoing
Eastern: Two high schools and six basic schools were
completed, while the construction of one high school and four
basic schools is ongoing
Northern: One high school was completed, while the
construction of four high schools is ongoing
North-Western: Three basic schools were completed, while
construction of fve high schools and two basic schools is
ongoing
Southern: Seven basic schools have been completed, while
the construction of fve high schools and one basic school is
ongoing
Western: Two high schools and two basic schools were
completed, while construction of three high schools and 17
basic schools is ongoing
Central: The construction of seven high schools is ongoing
Under the community mode of construction, an additional
2 019 classrooms and 369 teachers houses is ongoing
TERTIARY EDUCATION
In addition to the drive to put more government-sponsored
students in universities and colleges, there has been a
substantial increase in both PPPs for funding higher education
as well as the number of private institutions of higher learning
in the country. For 2011, the government has provided K36.5
Education & Training
Covering a wide spectrum
of formal, non-formal,
private and community-
based initiatives, Zambias
education systems is aimed
at enhancing access to
educational facilities and
improving the standard of
education for learners at
every level.
101
billion for the construction and rehabilitation of training institutes
and research centres across the country.
Technical and vocational education and training
Technical education and vocational training produce the skilled
labour needed to run the machinery, equipment and other
products of science and technology that are essential for
national development as well as poverty reduction. Following
the Technical Education, Vocational and Entrepreneurship
Training (TEVET) reforms of 1994, the sector has been guided
by the TEVET policy under the aegis of the Ministry of Science,
Technology and Vocational Training (MSTVT).
In order to contribute to education for all by 2015 as well as
poverty reduction, the MSTVT has set a target of increasing
access to TEVET from 30 000 to 50 000 by 2013. A number
of strategies have been developed, including: construction of
new infrastructure; expansion and improvement of existing
infrastructure; promotion of distance learning; increased
provision of bursary support to vulnerable students; recruitment
and retention of qualifed staff in MSTVT institutions.
Universities
Founded in 1966, the University of Zambia (UnZa) is the
largest university in the country, with a student population of
about 6 000. Its main campus is located on the Great East
Road, about 7 kilometres from Lusaka. Offering diploma and
degree courses in education, the humanities, engineering, law,
medicine, veterinary sciences, mineral technology, agricultural
and natural sciences, UnZa also provides a number of
postgraduate programmes. A Consultancy and Training Unit
supplies information technology services to the business and
CT community in Zambia and further afeld.
The Copperbelt University (CBU) was established in
December 1987, and today comprises six schools and a
directorate, with schools of The Built Environment, Business,
Mathematics and Natural Sciences, Natural Resources,
Technology and Graduate Studies. CBUs programmes attract
over 5 000 applications for the 1 200 places available each
year. The university has been engaged in a vigorous
infrastructure development programme, encompassing
upgrading and expansion of the School of Business, School of
Technology and Centre for Lifelong Education.
The former National College for Management and Development
Studies in Kabwe, Mulungushi University (MU) was
established as Zambias third public university during 2008. The
government of Zambia amended the countrys University Act
to facilitate the establishment of a PPP with Konkola Copper
Mines (KCM). MU comprises two campuses: the Great
North Road Campus, located 26 kilometres North of Kabwe;
and the Kabwe Town Campus. MU offers a wide range
of degree, diploma and certifcate programmes in its nine
academic faculties. It also offers distance and lifelong learning
programmes, short courses and evening classes.
Infrastructure development is being executed jointly between
government and KCM, with the two parties having invested
a total of US $35 million. Begun in 2008/09, building projects
for student hostels, a library, lecture theatre and cafeteria
continued through 2010.
In 2010 the Zambian Communications Authority provided
K430 million to connect the three public universities to
the national optic hbre network, facilitating e-learning and
distance education.
Government has allocated K30 billion towards the construction
of a new university in Chinsali, Mulakupikwa, which commenced
in 2011. The university, which will cater for teachers of
mathematics and science, aims to improve the academic
competencies of teachers of the two subjects.
102
In recent years government has stepped up its commitment
to bring quality health services to all its citizens. For 2011 the
focus of the health sector is on primary health care, particularly
maternal and child health.
Health statistics
Life expectancy at birth is estimated at 51.3 years (2010),
according to the latest socioeconomic indicators released by
Zambia's Central Statistics Offce. While this is higher than
many neighbouring countries, it is still substantially below the
world average.
Key health indicators, such as maternal and under fve mortality
rates and incidence of malaria have all declined since 2002.
While HIV/AIDS is arguably among the greatest threats to
Zambians health and wellbeing, HIV infection rates have been
dropping not only in specifc 'high risk' groups but also in the
general population, where it stands at just over 14 percent, with
national antenatal HV fgures remaining around 20 percent
(Zambia DHS 2009). Antiretroviral (ARV) coverage is well
above the African average, with the number of HIV-positive
people accessing ARVs having increased from approximately
3 000 in 2004, to 325 000 in 2011.
The Health Sector in 2011
For 2011, government increased the allocation of domestic
resources to the health sector by 30.1 percent. A total of
K1 772.9 billion (8.6 percent of the budget) was allocated to
health compared with K1 362.5 billion in 2010.
In addition, K37.5 billion was set aside for the procurement
of medical equipment, while K117.8 billion went towards the
procurement of essential drugs and medical supplies, of which
K23.1 billion is for antiretroviral medication and K11.5 billion for
vaccines and immunisations.
During 2010 government made strides in improving health
infrastructure throughout Zambia, as evidenced by the
construction, expansion and rehabilitation of 26 hospitals
and 125 health posts in all the provinces. For 2011, some
K152.4 billion is being spent on infrastructure development in
the sector. These resources are being used to construct and
rehabilitate district hospitals, health centres and nurses' fats in
various parts of the country.
District hospitals are being built in Samfya, Chadiza,
Lufwanyama, Chiengi, Chongwe and Lusaka, while six
health centres are under construction in Northern and
Luapula provinces. Lusaka General Hospital was scheduled
to be completed in early 2011. Furthermore, governments
programme of building, rehabilitating and upgrading rural health
posts and urban health centres continues, and nine mobile
hospitals are to be procured to increase access to health
services in rural areas.
In 2011 government engaged 1 700 doctors, nurses and other
essential medical personnel, at a cost of K 52.7 billion. Incentive
programmes are being put in place to improve retention of
medical personnel in rural areas. Plans to rehabilitate and
expand all 27 training schools for health care personnel
are underway with a view to increasing enrolment and thus
mitigating the shortage of frontline health care workers. In
2010, a new Magnetic Resonance Image (MRI) scanner and a
Computerised Tomography (CT) scanner were purchased for
the University Teaching Hospital.
HEALTH POLICY & PROGRAMMES
The Fifth National Development Plan (2006-2010) provided
strategies for achieving the UNs Millennium Development
Goals on HIV and AIDS, malaria and other related diseases by
2015. Zambia saw a decline in the prevelance of HIV/AIDS from
16 to 14 percent during the FNDP period.
After revelations of fnancial mismanagement within the Health
Ministry in 2010, government implemented the frst phase
of a joint action plan developed with stakeholders. It then
embarked on a full systems audit within the department. The
results of this audit will be used as a blueprint for strengthening
fnancial management across government operations. n
2011 government intends to roll out the use of Public-Private
Partnerships (PPPs) with the aim of accelerating the provision
of social infrastructure.
The Zambia Integrated Health Programme (ZIHP) provides
a platform for ongoing partnerships between government,
Health
There have been a number
of positive developments
in Zambias health sector
over the past decade, with
improvements having been
seen over a broad cross-
section of health statistics.
Momentum Zambia Ltd is a
medical aid administration
company established in
2006 in Zambia.
For more information phone us on: 0211 236 217/8 or 0978 770 901
or visit: www.wanthanzi.com
5th Floor, Mukuba Pensions House, Dedan Kimathi Road, Lusaka
Momentum Africa is a wholly-owned subsidiary of the Momentum Group
Momentum Zambia is part of the Momentum Group, which has
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tencies are Medical Aid administration and Health Risk Man-
agement, led by an excellent team that boast of management
experience of over 100 years collectively, most of the experi-
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Momentum Zambia manages an open medical aid scheme
called the Wanthanzi Health Plan which was launched in Au-
gust 2006. Momentum Zambia also offers Third Party Admin-
istration or Managed Funds.
Wanthanzi Health Plan which has hve (S) beneht options
with different benehts and contributions enables corporate
organizations an opportunity to join the scheme where their
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employees will then have access to the various hospitals and
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For some options, the members will be eligible for treatment
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104
public and private institutions, USAID and other international
organisations and agencies to address the countrys health
problems as well as continuing with the reform of the health
care system. A wide range of health issues are tackled
through communication/behaviour change interventions,
building community and private sector partnerships, improving
health worker performance, strengthening non-government
organisations (NGOs) and system support.
Despite recent fgures suggesting incidence declines, malaria
continues to be a serious public health threat, resulting in over
50 000 deaths a year. The Roll Back Malaria initiative provides
a platform for a united effort against malaria and includes the
efforts of the ministries of Health and Education as well key
partners such as UNICEF and the World Health Organisation
(WHO).
The integrated management of childhood illnesses has
remained a prime focus of the Primary Health Care Programme.
While recent statistics show great success in controlling
preventable diseases through the immunisation programme,
malnutrition remains a challenge for government. Prior to 2003,
measles was one of the fve major causes of childhood illness
in Zambia. During that year, an immunisation campaign cut the
number of measles cases to zero.
HIV/AIDS IN ZAMBIA
AIDS is the leading cause of death after malaria, and 2010
UNICEF statistics put the proportion of adults (15-49 years)
living with HIV at 13.5 percent. Around 120 000 children aged
0-14 are estimated to be HIV-positive, while HIV-prevelance
among young people (15-24 years) is 8.9 percent for females
and 4.2 percent for males.
In Zambia, unlike the situation in many other developing
countries, HV/ADS has not been confned to specifc segments
of the population; such as the poor and uneducated, women,
adolescents, etc. Infection rates are very high among wealthier
and more educated segments of society. HIV is most prevalent
in urban centres such as Lusaka and in the Copperbelt,
rather than in poorer rural populations. All areas of the public
sector and the economy have been weakened and national
development efforts have been constrained.
HIV/AIDS programmes
The majority of Zambias donor funding (50 percent) comes
from the US through the Presidents Emergency Plan for AIDS
Relief (PEPFAR), followed by the Global Fund and the World
Bank.
During 2011, more than 325 000 people were receiving Anti
Retroviral Therapy (ART) at over 1 400 counselling and
testing sites across Zambia. Of these, approximately 96 percent
are on the frst-line antiretroviral (ARV) regimen. n March 2011
government announced that it would also provide free third-line
ARV drugs, which are used when patients develop resistance
and stop responding to frst- and second-line regimens. t is
expected that the drugs will be available by mid-2011.
Approximately one in fve pregnant women in Zambia is infected
with HIV. In the absence of intervention, around 40 percent of
babies would contract HIV from their mothers each year. This
risk can be reduced substantially with antiretroviral drugs.
The simplest intervention used in Zambia is single dose
nevirapine (SDNVP), which can reduce mother-to-child
transmission by nearly half. Use of more effcacious regimens
during pregnancy, including Zidovudine (AZT) and triple-drug
combination therapy (HAART), can reduce transmission rates to
two percent or less. In 2009, more than 95 percent of pregnant
women were tested for HIV and some 69 percent were on
ARVs.
The Ministry of Health has adopted option A of the 2010 WHO
Prevention of Mother-to-Child Transmission (PMTCT)
recommendations:
HV uninfected women tested every three months for the
duration of pregnancy through the breastfeeding period
HV infected women with CD4>350 begin AZT prophylaxis at
14 weeks gestational age
HV-infected pregnant women with CD4 > 350 or WHO
Stage III/IV begin HAART as soon as possible, regardless of
gestational age
All HV-infected pregnant women receive cotrimoxazole
prophylaxis after the frst trimester through six weeks post-
delivery regardless of CD4 count
HV exposed infants whose mothers are on HAART receive
NVP prophylaxis daily from birth until six weeks of age
HV exposed infants whose mothers are not on HAART
receive NVP prophylaxis daily from birth until one week
after cessation of breastfeeding, while infants of mothers not
breastfeeding receive NVP prophylaxis daily from birth until six
weeks of age
Since 2001, the Centre for Infectious Disease Research in
Zambia (CDRZ) has scaled up its technical and fnancial
support to over 330 sites in the Eastern, Lusaka and Western
provinces of Zambia. As of February 2011, CIDRZ had
supported the Zambian government in delivering PMTCT
services to more than 1 081 137 women country-wide.
Photo coutesy: Ren Hartslief
105
Useful Information
Location: Southern Africa
Capital: Lusaka
Border countries: Angola, Botswana, Democratic Republic of
Congo, Malawi, Mozambique, Namibia, Tanzania, Zimbabwe
Total area: 752 614 square kilometres (2.5 percent of the area
of Africa), comprising 740 724 square kilometres (land) and
11 890 square kilometres (water)
Highest point: Mafnga Hills (2 301 metres)
Lowest point: Zambezi River (329 metres)
Climate: Subtropical with three distinct seasons. May to August
is cool and dry, September to October is hot and dry and
November to April is warm and wet
Population: 13 046 508 (October 2010 National Census)
Ethnic groups: 98 percent African (Bemba, Nyanja, Lozi and
Tonga), with the remaining 2 percent comprising Asian and
European
Religions: Christianity (60 percent), Islam, Hinduism, traditional
beliefs
Languages: English (offcial); indigenous African languages, of
which there are more than 70, include Bemba, Kaonda, Lozi,
Lunda, Luvale, Nyanja and Tonga
Weights and measures: Metric system
Electricity: Local current is 220v, 50Hz, and plugs are square-
pinned.
Time difference: GMT +02:00
Currency: Zambian Kwacha (ZMK); 1 kwacha = 100 ngwee,
with notes in denominations of 50, 100, 500, 1000, 5000,
10 000, 20 000 and 50 000. Smaller notes are rarely used and
coins are obsolete.
Business hours: Weekdays 08:00 - 17:00, Saturdays 08:00 -
13:00. Most banks open from 08:30 - 14:30 on weekdays, 09:00
- 11:30 on Saturdays. Many shops stay open later.
Foreign exchange: Travellers cheques, dollars or pounds may
be exchanged at any authorised bank or bureau de change
in the main towns. Travellers cheques attract a commission.
To avoid additional charges, travellers are advised to take
travellers cheques in US Dollars, Euros or Pounds Sterling.
Credit cards & ATMs: Accepted by most hotels, restaurants,
travel agencies and the larger stores. There are ATMs in Lusaka
as well as the larger towns.
VAT: Value Added Tax is 16 percent. VAT refunds are offered
to tourists, who are issued with an export tax invoice (VAT 263)
when purchasing goods, both of which must be presented at the
designated exit points of export for verifcation.
Duty Free: The following items may be imported into Zambia
without incurring customs duty: 400 cigarettes or 500g of
tobacco; one bottle of spirits/wine and 2.5 litres of beer; 1 oz
bottle of perfume.
Visa requirements: Visitors must have a valid passport.
Visas are required, except for citizens of countries which have
visa abolition agreements with Zambia and citizens of some
Commonwealth countries. Please confrm with Zambia's
embassies or high commissions abroad.
Health: Anti-malarial medication should be taken, especially if
visiting the national parks. While tap water in the major towns is
purifed and safe to drink, elsewhere ensure that water is either
borehole water, fltered or bottled. As in many other African
countries, the HIV/AIDS pandemic is of major concern, and
visitors should observe standard prevention measures.
Transport
Road Traffc keeps to the left and the general speed limit
is 100 kilometres on main routes and 65 kilometres in built-up
areas unless otherwise indicated. Visiting drivers must hold an
International Drivers Licence. SADC licences are also valid. A
person driving into the country on business can have their car
admitted without having to pay duty, provided they will not use
it for hire or commercial purposes. Coach travel is available
to a variety of regional destinations, while long range buses
106
frequently leave from Lusaka to all the main towns and mini-
buses and taxis are available for local transport. Road borders
are open 24-hours a day, with the exception of Chembe,
Kazungula, Kariba and Chirundu, which are open from 06:00 to
18:00 hours. Victoria Falls Bridge is open until 20:00 hours.
Air Four international airports, namely, Lusaka, Livingstone,
Mfuwe and Ndola, with several secondary airfelds and airstrips
in Chipata, Kitwe, Kasama, Mongu, Solwezi and Mansa.
Rail Zambia has three main internal train lines, from Lusaka
to Livingstone, Lusaka to the Copperbelt, and from Kapiri
Mposhi to the northern border with Tanzania. Main train station
in central Lusaka, Dedan Kamathi Road.
Telecommunications: Telecommunications are among the
best in Sub-Saharan Africa. There are three mobile telephone
operators Zain (formerly Celtel), MTN (formerly Telecel) and
Cell Z (the mobile division of Zamtel).
Dialling code: Direct dialling to Zambia +260 followed by
area codes: Lusaka, Kafue (01); Chingola, Kitwe, Ndola (02);
Livingstone (03); Kasama (4); Kabwe (05);etc, plus subscribers
number. Direct dialling to neighbouring countries requires
four sets of numbers: frst the international prefx 00, then the
country code, the city code, and the number.
Internet: With the continuing roll-out of the fbre optic network
across the country, internet connectivity and speeds have
improved tremendously, and there are a number of internet
cafs in the main centres.
Television: Zambia National Broadcasting Corporation (ZNBC)
the national broadcaster, with a single channel of news, sport
and some leisure programmes. The satellite channel, DSTV, is
also available and has over 50 channels.
CONTACT DETAILS
Government Ministries
Agriculture and Cooperatives
PO Box 50197, Lusaka, Tel: 254661, 256698, Fax: 254083
Commerce, Trade and Industry
PO Box 31968, Lusaka, Tel: 228301/2/3/4/5/6/7/8/9,
Fax: 226673,
Tel/Fax: 226727 Minister, E-mail: comtrade@zamnet.zm
Communication and Transport
PO Box 50065, Lusaka, Tel: 251444, Fax: 251795
Education
PO Box 50093, Lusaka, Tel 250558, Fax: 253502,
E-mail: cmzulu@moe.gov.zm
Energy and Water Development
PO Box 36079, Lusaka, Tel: 252589, Fax: 252589
Finance and National Planning
PO Box 50062, Lusaka, Tel: 253398/2505441/252146,
Fax: 254335
Foreign Affairs
PO Box 50069, Lusaka, Tel: 252698, Fax: 250240
Health
PO Box 30205, Lusaka, Tel: 252989, 253040/5, Fax: 253344
Lands
PO Box 50694, Lusaka, Tel: 252288, 252323, 252320,
Tel/Fax: 251927 for Permanent Secretary
Local Government and Housing
PO Box 50027, Lusaka, Tel: 253077
Tourism
PO Box 34071, Lusaka, Tel: 225463, Fax: 222189
Mines and Minerals Development
PO Box 31969, Lusaka, Tel: 235323
Works and Supply
PO Box 50236, Lusaka, Tel: 252366, Fax: 254108
Business and Government Agencies
Anti-Corruption Commission
PO Box 50486, Lusaka, Tel: 252722, 253256, Fax: 251397,
255376, E-mail: accspd@zamnet.zm
Bank of Zambia
PO Box 30080, Lusaka, Tel: 228888, 228903-20, Fax: 221767,
237070, E-mail: pr@boz.zm
Copperbelt Energy Corporation
PO Box 20819, Kitwe, Tel 244556, Fax: 244040
Export Board of Zambia
PO Box 30819, Lusaka, Tel: 228106/7, Fax: 225270,
E-mail: ebz@ebz.co.zm
Lusaka Chamber of Commerce and Industry
PO Box 37887, Lusaka, Tel: 224114, Fax: 224134
Lusaka Stock Exchange
PO Box 34523, Lusaka, Tel: 228391, Fax: 225969
Patents and Companies Registration
PO Box 32020, Lusaka, Tel: 255127, 255151, Fax: 255426,
Website: www.pacro.org.zm
Tourism Council of Zambia
PO Box 32020, Lusaka, Tel: 290439, E-mail: tcz@zamnet.zm
Women Entrepreneurs Development
PO Box 30495, Lusaka, Tel: 236140, E-mail: wedaz@zamnet.zm
Zambia Association of Chambers of Commerce and
Industry
PO Box 30844, Lusaka, Tel 255046, Tel/Fax 253020, 252369,
253007, 252483,
E-mail: zacci@zamnet.zm / secretariate@zacc.co.zm
Zambia Bureau of Standards
PO Box 50259, Lusaka, Tel: 227075, Fax: 238483,
E-mail: zabs@zamnet.zm
Zambia Communications Authority
PO Box 36871, Lusaka, Tel 246702, Fax 246701,
E-mail: caz@zamnet.zm, info@caz.gov.zm
Zambia Competition Commission
PO Box 34919, Lusaka, Tel: 222787, Fax: 222789,
E-mail: zcomp@zamtel.zm
Zambia Consolidated Copper Mines
PO Box 30048, Lusaka, Tel: 221023, Fax: 220654,
E-mail: corporate@zccm-ih.com.zm
Zambia Electricity Supply Corporation
PO Box 33304, Lusaka, Tel: 361111, Fax: 222753,
E-mail: zesco@zesco.co.zm
Zambia Export Growers Association
PO Box 31705, Lusaka, Tel: 271166 (main offce), 271080
(technical offce), 271081 (warehouse), Fax: 271167, 271080,
E-mail: zega@zamnet.zm
Zambia Federation of Employers
PO Box 31941, Lusaka, Tel: 295541/82, Fax: 295582,
E-mail: zfe@zamnet.zm
Zambia International Trade Fair
PO Box 71058, Ndola, Tel: 651514, Fax: 651704,
Website: www.zitf.org.zm
Zambia Investment Centre
PO Box 34580, Lusaka, Tel: 250048, Fax: 252150,
E-mail: invest@zamnet.zm, Website: www.zic.org.zm
Zambia National Farmers Union
PO Box 30395, Lusaka, Tel: 252649, Fax: 252648
Zambia Tourist Board
PO Box 30017, Lusaka, Tel 229087, Fax 225174,
E-mail: zntb@zambiatourism.org.zm, Website: www.
zambiatourism.com
Zambia Revenue Authority
PO Box 35710, Lusaka, Tel: 226227, Fax 222717,
E-mail: advice@zra.org.zm
Zambia Telecommunications Company (Zamtel)
Zamtel House, Church Rd, PO Box 37000, Lusaka, Tel: 333152
107
108
Index to Advertisers
AEL Zambia ................................................................................38
Afgri Corporation ................................................ inside back cover
Alfred H Knight ........................................................................... 37
Andrews Motel ............................................................................ 85
Barclays ........................................................................................5
Barloworld Equipment ................................................................ 51
Blu Rock Mining Services ........................................................... 47
Business Connexion ................................................................... 25
C&H Erectors..............................................................................93
Castle Lead Works ..................................................................... 42
Chambishi Copper Smelter Ltd .................................................. 49
COMESA ....................................................................................15
Conservation Farming ...........................................................62-65
Diamond General Insurance Ltd................................................. 22
Drillafrica .....................................................................................43
Egyptair ......................................................................................95
Finance Bank........................................................................21, 23
Flame Arab Contractors Ltd........................................................ 91
Flame Promotions ...................................................................... 90
Freeworld Plascon ...................................................................... 69
Genesis Finance......................................................................... 26
GeoHydro Consulting Services Ltd ............................................ 47
Gomes Haulage................................................................. 44 & 45
Grinaker ......................................................................................36
Grizzly Mining ............................................................................. 50
Hill & Delamain ........................................................................... 99
ICC - Industrial Credit Company................................................. 35
International Commercial Bank .................................................. 28
Keren Motors ........................................................................42, 96
Lamasat International ........................................................ 72 & 73
Layne Drilling .............................................................................. 48
Lusaka Stock Exchange ............................................................. 34
Madison Life Insurance Company ...................................... 32, 101
Mint Lounge Caf ....................................................................... 88
Momentum................................................................................103
Morganite Zambia Ltd................................................................. 46
MRI Seed....................................................................................57
MTN Business ............................................................................ 97
Nampak ......................................................................................68
National Airports Corporation Ltd ............................................... 94
National Heritage Conservation Commission .................... 86 & 87
National Savings & Credit Bank ................................................. 31
Ndola Lime Company ........................................................ 40 & 41
Ox Drilling ...................................................................................46
Parmalat .....................................................................................67
Protea Hotels ..............................................................................33
Scaw Metals ...............................................................................39
SGS Inspection Services Ltd ...................................................... 48
Shamilimo Lodge ........................................................................ 51
Southern Sun................................................................................9
Stanbic Bank ..............................................................................29
Sun International ................................................ inside front cover
Toyota .........................................................................................95
Zambia Development Agency....................................................... 3
Zambia Forestry & Forest Industries Corporation Ltd ....... 76 & 77
Zambia National Farmers Union ................................................ 55
Zambia Tourism Board ............................................................... 83
Zambia Wildlife Authority ............................................................ 84
ZAMEFA .......................................................................................7
Zanaco........................................................................................27