BUILDING A BETTER MARKET
TBY talks to Hon. Margaret Mwanakatwe, Minister of Commerce, Trade and Industry, on the FTA with Egypt, the significance of the private sector, and the country's role in international trade.
BIOGRAPHY
The Hon. Margaret Mwanakatwe has been serving as the Zambian Minister of Commerce, Trade, and Industry since her appointment in 2015. Prior to her entry into politics, she occupied several executive positions with Barclays Bank in Zambia, Ghana, Nigeria, and Uganda. She was the first Zambian and first female to serve as CEO at Barclays Zambia, and the first woman CEO in all of Barclays Bank's African subsidiaries at the time. She later joined United Bank for Africa (UBA) as the Director of Business Development. She has a degree in business administration from the University of Zambia and is a certified chartered accountant.What is your assessment of the meetings in Egypt recently regarding the Tripartite FTA (TFTA)?
The launch and signing of the TFTA agreement signify an important political milestone toward the establishment and operation of a fully fledged free trade area. It represents free movement of goods and services from the Cape to Cairo, bringing together a market of over 625 million people, living in one of the highest growth areas of the world with a booming middle class in 26 countries and a combined GDP of USD1.3 trillion, about 60% of the African continent's GDP. For Zambia, the TFTA represents a significant market for Zambian goods and services once effectively exploited. Total merchandise exports by TFTA members was USD145 billion and merchandise imports of USD211 billion as of 2014. This is a massive market for our finished and semi-processed goods and gives us the market access to our producers, which are struggling to secure a share in developed markets due to non-tariff barriers. The establishment of the TFTA will undoubtedly boost trade among the participating countries as a result of market expansion and contribute to the African Union Agenda of boosting intra-Africa Trade.
What is the status of the 11 bills presented to parliament to consolidate private-sector participation?
The 11 bills represent my ministry's aggressive agenda to reform the business environment. The bills relate to strengthening intellectual property rights, trade facilitation, re-engineering of the national quality infrastructure; aligning company law to international best practices and expanding access to finance for micro, small, and medium enterprises. The bills are at different stages in the legislative process. Most of these bills have been approved by the cabinet and are now undergoing legislative drafting.
How do you expect international trade to evolve in Zambia in the next five years?
The evolution of Zambia's trade in the next five years will be dictated by regional integration. The phase II negotiations under the Tripartite FTA framework and the Continental Free Trade Area negotiations will change the trade arena in Africa. Zambia needs to position herself to capitalize on this expanded market. If we do not position our industry to become a key regional player, we will be faced with high levels of imports into our country, which can lead to the death of local industry. We are confident that our experiences with COMESA and SADC FTA's have made us stronger. At the international level, the Economic Partnership Agreements with the EU and the implementation of the trade facilitation agreement present new challenges we must be prepared for even as we consolidate ourselves as a middle-income country.
What are the comparative advantages of Zambia over neighboring countries and why should an investor choose Zambia?
Zambia's comparative advantages lie primarily in its abundant resources. It has vast land, 752,614sqkm, with a population of approximately 15 million people, with over 70% of the population below the age of 40. We have vast natural resources in terms of minerals, tourist sites, water, and land for agriculture. The country has had a stable economy with growth averaging 6% over the last decade, stable inflation averaging 7% over the last five years, as well as a stable political and social environment since the country gained independence in 1964. In terms of doing business, we are ranked fifth in Sub Saharan Africa and third among the SADC countries, fourth in COMESA, and eighth in the whole of Africa, pointing to the conduciveness of our business environment over most of our neighbors. We share borders with eight countries, making us land-linked. The country's central location in the region gives it a competitive market. Zambia has no controls on prices, interest rates, or foreign exchange transactions, free repatriation of earnings and repayments, as well as security and guarantees of full and fair compensation for investors.
BUILDING A BETTER MARKET
TABLE OF CONTENTS
Year In Review
What A Year
Zambia has long been a bastion of stability in Southern Africa, and while its economy has been rocked in recent years by the falling value of copper prices, a devaluating kwacha, and high inflation, through the Economic Recovery Program the government has bold ambitions to right the ship.
read articleReview
Convoke, Confound & Collect
Squeezed between a rock and a rather hard place by the slowdown in Chinese demand for copper, by far Zambia's biggest export and government-revenue generator, President Lungu has been forced to get creative in his country's alliances to broaden revenue streams and lessen its dependence on the vagaries of one foreign market.
read articleGuest Speaker
Dr. Stergomena L. Tax, Executive Secretary, Southern African Development Community (SADC)
TBY talks to Dr. Stergomena L. Tax, Executive Secretary of the Southern African Development Community (SADC), on regional economic development, boosting pan-continental free trade agreements, and improving security through mutual development.
read articleInterview
Susan Sikaneta, Ambassador, Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa
TBY talks to Susan Sikaneta, Ambassador of Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa, on championing peace across the continent, advancing women's rights, and promoting Pan-Africanism.
read articleInterview
Sebastian C. Kopulande, CEO, Zambian International Trade & Investment Centre (ZITIC)
TBY talks to Sebastian C. Kopulande, CEO of Zambian International Trade & Investment Centre (ZITIC), on taming austerity, stimulating sustainable growth, and creating the framework to support entrepreneurship
read articleFocus: Zambia Plus
Adding it All Up
On October 20, 2016, at the 2017 Budget Address, Finance Minister Felix Mutati launched the government's economic recovery program, christened "Zambia Plus." The program is designed to spur domestic productivity, through strengthening ties and collaborating with external donors and developers.
read articleReview: Banking
Macroeconomics Rule the Roost
In its ongoing efforts to diversify away from one principal commodity, copper, the government fosters the development, standardization, and efficacy of the private sector. In doing so the systematic support of the financial universe, especially banks, is vital, as is the goal of financial inclusion.
read articleFocus: SME Growth
IMF support program
An IMF support program stands to provide Zambia with some much-needed discipline on its expenditure and operational efficiencies; however, many caution the need for Zambia to determine what it wants to achieve and how the program will benefit the country.
read articleInterview
Christabel M. Banda, Executive Director, Insurers Association of Zambia (IAZ)
TBY talks to Christabel M. Banda, Executive Director of Insurers Association of Zambia (IAZ), on the evolution of the local insurance landscape, raising awareness, and tackling challenges in the sector.
read articleFocus: Solar
Sunny Side Up
As power demand continues to rise and power production continues to fall behind, it's the same old story for Zambia, still wrestling with an ongoing energy crisis. Public- and private-sector drives are seeking to mitigate this deficit by activating the country's solar industry.
read articleInterview
Margaret K. Chalwe-Mudenda, Director General, Zambia Information and Communications Technology Authority (ZICTA)
TBY talks to Margaret K. Chalwe-Mudenda, Director General of Zambia Information and Communications Technology Authority (ZICTA), on new projects, the ZNDC, and expectations for the year ahead.
read articleInterview
Hon. Dora Siliya, Minister, Agriculture
TBY talks to Hon. Dora Siliya, Minister of Agriculture, on the investments being made in agriculture to enable agricultural households, diversifying Zambia's basket of produce, and making international markets more accessible for local producers.
read articleInterview
Hon. Charles R. Banda, Minister, Tourism and Arts
TBY talks to Hon. Charles R. Banda, Minister of Tourism and Arts, on the wealth of tourism destinations within Zambia, efforts to bring more visitors to the country, and what the Tourism Development Fund will contribute to developments.
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