IN THE ZONE
Special economic zones not only bring capital into countries, but also new technologies. By doing so, these areas have contributed significantly to GDP, increased employment, and supported the adoption of management best practices.
The government of Zambia, in collaboration with the Japan International Corporation Agency (JICA), has been working in what has become known as the Zambia Investment Promotion Project—the Triangle of Hope (ZIPP-ToH). This project aims at creating a more conducive business environment to attract both foreign and local investors and achieve more comprehensive and faster economic development.
The Multi-Facility Economic Zones (MFEZs) have fallen under this initiative, and are designed to promote the creation of a manufacturing sector that increases GDP growth, boosts trade, and has other knock-off effects in transport, agriculture or services.
According to the government, these MFEZs combine the best characteristics of the free trade zones (FTZs), export processing zones (EPZs), and Industrial Parks. Not only do these areas offer investors ready physical infrastructure and access to amenities, they also come with financial incentives. Among these incentives are a zero percent tax on profits for companies working in priority sectors for a period of five years, 50% tax from years 6 to 8 and 75% for years 9 and 10. Additionally, there is a zero percent import duty rate on raw materials, capital goods, machinery and specialized vehicles for five years.
Currently there are six areas that the government has designated as MFEZs or Industrial Parks: Chambishi, Lusaka East, Lusaka South, Lumwana as MFEZs, and Ndola (Sub Sahara Gemstone) and Roma as an Industrial Parks.
CHAMBISHI
According to the Ministry of Commerce, Trade and Industry, this MFEZ is the home to 14 enterprises that injected up to $800 million into the local economy and created more than 5,600 jobs. Infrastructure developments have also exceeded $100 million to provide the area with power and water resources as well as roads and drainage.
LUSAKA EAST
This MFEZ is situated adjacent to the Lusaka International Airport. This area is focused on light manufacturing activities and specializes in services such as hotel accommodations and conference facilities. According to the government's website, investors have already injected more than $5 Million into infrastructure development there.
LUSAKA SOUTH
The Lusaka South MFEZ started operations in 2013 with an area of 2,100 hectares. Dr. Fortune Kamusaki, Managing Director of the Lusaka South MFEZ explained to TBY that they expect up to 400 companies to move into the area, creating 100,000 jobs for Zambians over a period of 20 years, when the area is supposed to be fully developed. So far, the government of Zambia has invested $400 million to provide the area with infrastructure and utility services.
LUMWANA
This MFEZ of 1,300 sq km focuses on light and heavy industries. According to the website of the Ministry of Commerce, Trade and Industry, the master plan for this zone includes $1.2 billion and 13,000 jobs are expected to be created. Some of the sectors in this MFEZ will include the manufacture of explosives, agro processing, horticulture, fisheries, and the like.
NDOLA SUB SAHARA GEMSTONE INDUSTRIAL PARK
This industrial park is a 100-hectare piece of land on the Kabwe - Ndola Road that is being promoted by a Zambian company. According to the government $8 million have been invested to rehabilitate infrastructure and have already attracted three companies, with 20 expected. This Industrial Park has potential to create 4,000 new jobs in the area.
ROMA INDUSTRIAL PARK
This industrial park is located in Lusaka on a 113-hectare piece of land along the Zambezi Road. This park will ultimately accommodate light industries and act as an incubator of micro, small and medium local enterprises. The total investment is estimated at $46 million with the potential to create 2,800 new jobs. Even though MFEZ are widely believed to boost investment, employment, and exports, experts have raised concerns about the subsidized nature of infrastructure, the lack of domestic investors, and environmental issues. A proper cost benefit analysis should always accompany MFEZ policies so that both the government as well as the private sector can take advantage of a win-win situation.
IN THE ZONE
TABLE OF CONTENTS
Guest Speaker
Helen Elizabeth Clark, Administrator, United Nations Development Program
Helen Elizabeth Clark, Administrator of the United Nations Development Program, on the Sustainable Development Goals (SDGs), socio-economic development in Zambia, and the global development agenda for the coming year.
read articleInterview
Kayula Siame, National Coordinator , Private Sector Development Industrialization and Job Creation at the Cabinet Office,
TBY talks to Kayula Siame, National Coordinator of Private Sector Development Industrialization and Job Creation at the Cabinet Office, on the advantages of investing in Zambia and job creation projects.
read articleInterview
Sebastian C. Kopulande, CEO, Zambian International Trade & Investment Centre (ZITIC)
<p style="margin-left: 20px;">TBY talks to Sebastian C. Kopulande, CEO of Zambian International Trade & Investment Centre (ZITIC), on economic zones, PPPs, and how to maximize the benefits for Zambia.
read articleInterview
Siazongo D. Siakalenge, Permanent Secretary, Ministry of Commerce, Trade, and Industry
TBY talks to Siazongo D. Siakalenge, Permanent Secretary for the Ministry of Commerce, Trade, and Industry, on the transformation of investment-related regulation, the role of the MFEZs, and Chinese investment in the country.
read articleInterview
Dr. Fortune Kamusaki, Managing Director, Lusaka South Multi-Facility Economic Zone Limited (LS-MFEZ)
TBY talks to Dr. Fortune Kamusaki, Managing Director of Lusaka South Multi-Facility Economic Zone Limited (LS-MFEZ), on the benefits of the zone and what makes Zambia a great place to do business.
read articleInterview
Hon. Yamfwa D. Mukanga, MP, Cabinet Minister, Government Chief Whip, and Minister, Transport, Works, Supply and Communication
TBY talks to The Hon. Yamfwa D. Mukanga, MP, Cabinet Minister, Government Chief Whip, and Minister of Transport, Works, Supply and Communication, on the status of infrastructure projects within the country, private sector partnerships, and the importance of adopting a multi-modal strategy.
read articleReview: Real Estate
Real & Shine
The combination of a fast-rising population, an expanding middle class, and plenty of space (Zambia is one of the world's twenty most sparsely populated countries), means things are looking good for the real estate sector. The challenge is for it to keep up with demand, particularly for housing.
read articleInterview
The Hon. Given S. Lubinda, Minister , Agriculture and Livestock
TBY talks to The Hon. Given S. Lubinda, Minister of Agriculture and Livestock, on the national Farming Block Development Plan, the commodities with the highest market potential, and the development of the fishing industry.
read articleInterview
Harish J.N. de Silva, Managing Director, Sterelin Medical & Diagnostics
TBY talks to Harish J.N. de Silva, Managing Director of Sterelin Medical & Diagnostics, on the state of national pharmaceutical regulations, challenges facing importers, and the importance of a diversified customer base.
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The Hon. Michael L. Kaingu, Minister , Education, Science, Vocational Training, and Early Education
TBY talks to The Hon. Michael L. Kaingu, Minister of Education, Science, Vocational Training, and Early Education, on the new syllabus, hiring more teachers, and promoting education for adults.
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Dr. Alvert N. Ng'andu, Executive Director & CEO, Zambia Centre for Accountancy Studies (ZCAS)
TBY talks to Dr. Alvert N. Ng'andu, Executive Director & CEO, Zambia Centre for Accountancy Studies (ZCAS), on establishing advance degree programs, the role of international partnerships, and promoting research through the center.
read articlePhoto Essay: Culture
Where The Art Is
“If you want to measure how advanced a country or community is, you should look at its arts. Art is effectively a measure of civilization, and I feel it should be appropriately invested in. Art is central to all communities.”— Pompi, Zambian singer, musician, and entrepreneur.
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