Asians invest $6bn in Zambia 05.02.10
By Business ReporterASIAN investments in Zambia have risen significantly over the recent years with Chinese investment rising to US$ 6.1 billion for the period
1993 to 2009.
Between 1993 and 2006, Chinese investment in Zambia
amounted to $377 million.
Zambia Development Agency (ZDA) director of export promotion and market development Glyne Michelo said Asia was among Zambia’s top sources of foreign direct investment accounting for about 20 per cent
of the total investments.
He said this in Lusaka yesterday when he officiated at the Asian Marketing Seminar hosted by the Market Access, Trade and Enabling Policies Project (MATEP) in partnership with ZDA.
Zambia’s international trade profile had changed in the past decade saying there had been a significant shift in its export markets over
the past decade.
MATEP is a five-year United States Agency for International Development (USAID) economic growth project designed to increase Zambia’s exports of agricultural and natural resource products into
regional and international markets.
Mr Michelo said the Southern Africa Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and Asia had in recent years emerged as important trading partners for Zambia.
The European Union (EU) which was Zambia’s top export partner as a destination for Zambian exports had declined from a share of around 60 per cent in 2000 to less than 12 per cent in 2008.
Mr Michelo said Zambia and Asia had an inseparable relationship which dated several years back with Asia emerging recently as Zambia’s top source of investment capital and one of the country’s leading export
destinations among developing countries.
“We import a huge amount of equipment and machinery, especially from China. In 2008, Zambia imported a total of $1.3 billion of mainly mineral fuels, nuclear reactors and electrical and electronic equipment from Asia.
In turn, we exported a total of $763 million to Asia with the main products being copper and gemstones.
Main export destinations for non copper-cobalt exports were India with $33.5 million and China with $19
million,” he said.
The Zambian Government had been making efforts aimed at building stronger ties with Asian partners.
Some of the major investment projects from China include the recently established Chambeshi Multi-facility Economic Zones (MFEZs) which is the first Zone being built under the China Africa Economic Assistance Programme.
There was urgent need for Zambia to deepen the South-to-South cooperation by expanding market access in the Asian nations in view of the global economic crisis that affected Zambia and Asia.
Mr Michelo said ZDA was currently coordinating the participating of Zambian companies in the forthcoming World Expo to be held in Shanghai, China from May to October 2010.
MATEP chief of party Scott Simons said his
organisation was a results-oriented project that was intended to make exports happen.
Dr Simons said growth rates in China and other East Asian countries remained relatively strong during the recent financial turmoil in the world and appeared likely to accelerate again.
“So as a large and growing market for Zambia, we need to be paying attention to Asia,” Dr Simons said.
He said a Zambian Export Brochure and a new commercial window of the ZDA website were being organised by MATEP and the agency and were expected to be launched next week on Thursday.
[Times of Zambia]
