A Country Overview
Zambia is a landlocked southern African country. Its neighbours are the Democratic Republic of Congo, Tanzania, Malawi, Mozambique, Zimbabwe, Botswana, Namibia and Angola. Its abundant natural and land resources make it a country with excellent potential for investment.

Although Zambia is geographically located within the tropics, its high altitude has an enormous influence on its climate. The weather here is defined by three distinct seasons: the cool season, starting from April to August, with temperatures ranging from 10 to 26 degrees Celsius; the hot & dry season from August to November (with temperatures during this period reaching up to mid 40s degrees Celsius) and the warm & wet season from November to April. Zambia has abundant annual rainfall averaging between 508 and 1270mm.

A former British colony, Zambia attained independence and became a republic in 1964. Today, Zambia has a population of 11.5 million people with over a million of them living in the capital of Lusaka, a sprawling modern city and the commercial hub of the country. Other notable Zambian cities are Ndola and Kitwe. Zambia has one of the highest urban population rates in the African continent with 38% of the people living in urban areas. Zambia’s official language is English, although it is said that more than 80 languages are spoken across the country. The main religions practised here are Christianity, Islam and Hinduism.

Arguably the most popular tourist attraction in Zambia is Victoria Falls – one of the greatest natural wonders of the world – located along the Zambesi River at the southern border of Zambia.

Travelling to Zambia is easy and convenient as the Lusaka International Airport receives regular flights from Johannesburg, Nairobi and London. Principal airlines which ply the Zambian route are Air Zambia and South African Airways. There is also another international airport in Livingstone.

There are a number of international hotels in Lusaka which offer world-class business and conference facilities. The eclectic selection of restaurants found here also reflects the city’s diversity. With its varied cultural and leisure offerings, the city provides the perfect backdrop to investors from all over the world. Other investor-friendly aspects of Zambia are good energy resources and an adequate transportation network.

The Zambian Economy
Zambia has an open, market-based economy and an active private sector. As part of the government’s economic reform programme, various initiatives have been put in place to encourage private participation in the economy and improve the country’s investment climate. Continued efforts in the last decade to strengthen the country’s finances have also contributed to improved economic stability and growth.

In 2004, Foreign Direct Investment (FDI) reached a total of US$123 million. Zambia’s Gross Domestic Product (GDP) in 2005 was estimated at US$10.63 billion and the GDP per capita then was US$900. It also registered an economic growth (GDP real growth rate) of about 5% in that year.

Mining is the most important industry sector in the Zambian economy and represents the largest share of the country’s total GDP and 75% of export earnings. Agriculture also contributes significantly to the country’s economy as it accounts for over 80% of employment.

Current Export & Import Activities
Although the mining sector is the backbone of the Zambian economy and the major source of foreign exchange, other non-traditional local industries have emerged and contributed to growth, jobs and income in rural and semi-urban areas. These include construction, foodstuffs, beverages, chemicals, textiles, fertilisers and horticulture.

The country’s main exports are copper and cobalt, electricity, tobacco, flowers and cotton. Major export partners include Switzerland, South Africa, the United Kingdom, the Democratic Republic of Congo, Tanzania and Zimbabwe. Zambia’s major import partners are South Africa, UK and Zimbabwe. Machinery, transportation equipment, petroleum products, electricity, fertilizer, foodstuffs and clothing are among the key items that are imported into the country.

Currently, Malaysian exports to Zambia comprise electrical & electronic products, rubber products, manufactures of metal, chemicals & chemical products, manufactures of plastics and palm oil.

The local agriculture products grown in Zambia are corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca), coffee, cattle, goats, pigs, poultry, milk, eggs and animal hide.

Business and Investment Opportunities
The Zambian government encourages private investment in all major industry sectors including mining, agriculture, manufacturing, tourism and energy. The open market trade and investment conditions offer a great investment environment for Malaysian investors. There are various investment and tax incentives to attract investors, some of which are sector-specific. In 2006, all agencies involved with the promotion of investment and trade support in Zambia were brought under the authority of a one stop-shop for investors: the Zambia Investment Center (ZIC). Investors will be able to find abundant investment opportunities in industries such as agriculture, manufacturing, services, tourism, mining and construction, among others.

Some examples of investment opportunities based on specific industry sectors are in the Agro-industry: horti-floriculture, tobacco-processing, cotton-ginning, crop production for the processing industries; Manufacturing: consumer goods; and Tourism: holiday accommodations, managed safaris and organised adventure tours like white-water rafting.

At a recent MIDA & MASSA seminar held in conjunction with the visit of a high level Zambian delegation led by Hon. Dr Situmbeko Musokotwane, the Deputy Cabinet Secretary, Government of Zambia and Chairman of the Presidential Steering Committee of “Triangle of Hope”, potential investment projects in the following sectors were highlighted, i.e:- Agriculture, Tourism, Transportation, Finance, Education, Manufacturing, Mining, Services, Energy and Construction.

Members who are keen to know more about investing in Zambia can contact MASSA at:
mail@massa.net.my. Alternatively, log on to www.zic.org.zm

Sources: Government of Zambia
Zambia Investment Centre,
World Bank