investment opportunities

1INVESTMENT OPPORTUNITIES

Zambia Development Agency

INVESTMENT OPPORTUNITIES Projects Dossier

Promoting Economic Growth and Development

2 INVESTMENT OPPORTUNITIES

ZAMBIA AT A GLANCEThe peaceful and democratic country of Zambia has for many years enjoyed both social and political stability as well as a healthy macroeconomic environment, with economic growth averaging 6 percent per annum since 2003.

Backed by rich natural resources such as copper and cobalt, the minerals sector has for many years been at the forefront of Zambia’s expanding economy. Another prominent sector of the Zambian economy is agriculture, thanks to the country’s good soil and large tracts of fertile arable land. There is also an abundant hydropower resource to be found in the numerous lakes, dams and rivers. Efforts to further diversify the economy mean that increased attention is being given to the manufacturing sector for increased value addition to mineral and agro products and the tourism sector on the backdrop of abundant wildlife, numerous waterfalls and scenic beauty having great potential for further development

.

Foreign Exchange Reserves

• $2.616 Billion (Dec. 2012)Public Debt as a % of GDP

• 31.2% (2012)

Area: 752,614km2 (39th)Population: 14.1 million (71st)

GDP (PPP): $23.68 billionPer Capita: $1,700

GDP Growth Rate 6.6% 2013Trade Export: $8.346bn 2012(f.o.b) Import: $7.279bn

Inflation (CPI): 6.2% (July 2013)Unemployment: 14% (2012)Fiscal Deficit:

• Overall Balance : 4.3% of GDPExternal Debt: $5.445 Billion (2012)

Zambia by Numbers


10 Reasons to Invest in Zambia 1. Stable Political System

2. A Positive and Investor Friendly Environment

3. Investment Guarantees and Security

4. Attractive Investment Incentives

5. Progressive Banking, Legal, and Insurance Services of International Standards

6. Abundant Natural Resources

7. Access to Regional, Wider Africa, EU and USA Markets

8. Thriving Private Sector

9. Repatriation of 100% of Profits and No Exchange Controls

10. Good Place to Work and Live


AGRICULTURE OPPORTUNITIES

No. Project Title Project Summary Estimated capi-tal investment

promoter Project Requirements

1 Nansanga Agri-businss opportunity

Development of agricultural land in a designated farm block in Serenje district. The farm block comprises of a core business ventures (17500 ha land) and more than 350 small and medium farms for out grower schemes. The farm block is located on a 100,000 ha of land. The prospective core venture will be developed as a joint venture between Government and the private sector to undertake primary production, value addition and management of the out grower scheme.

US$230 million Government Equity and/or debt financing

2 Bangweulu Aquaculture project

Establishment and development of an aquaculture cage fish farming busi-ness operations along the shores of lake Bangweulu with a combined area of the lake and wetlands of 15,000m2. The projects entail development of at least 32cages with an estimated annual production of 650MT annually.

US$1.8million Local Community Equity Financing

3 Timber Plantation Development of a commercial exotic plantation of 50,000Ha of land in Mpika (25,000Ha) and Chinsali (25,000Ha) districts for an expansion program

To be deter-mined

ZAFFICO Equity funding

4 Silo storage facilities Development of a 48,000mt steel silo storage facility. 14 members committed to sell their maize (18,000mt), Wheat (32,000mt) and Soya Beans (16,000mt) to the company for value addition in the form of soya oil, soya cake (MES & FFS livestock feed) and wheat flour.

The company is engaged in grain handling, silo storage, soya processing and wheat milling facility based in the Mkushi Farm Block in Central Province.

To be deter-mined

Agric Options Ltd Debt and/or equity financ-ing

5 Mwense Agri-busi-ness opportunity

An agric-business opportunity comprising of 395ha of land base in Mwense for crop production and animal husbandry with processing facilities. This is a green field project.

To be deter-mined

Mr. Reginald K. Mfula Equity Partner (Joint venture )

6 Richpat Farms An Agri-Business opportunity comprising of 1000Ha in Mkushi District. Cur-rently only 260ha is under utilization with rain fed Maize (100Ha) and Soya Bean (160ha). Existing animals on the farm Beef Cattle, Sheep, Goats, pigs etc.

To be deter-mined

Richpat Farms Equity Partner (Joint venture )

7 Savoy Farms Expansion of poultry farming activities through the setting up of cooper-atives involving small scale farmers in areas such as breeders, commercial boilers and layers, processing of feedstock, cropping, fish production etc to achieve the critical mass.

To be deter-mined

Savoy Farms limited Equity Partner (Joint venture )

8 Yatu tea Expansion of production for the 2000Ha tea plantation and currently produc-ing 30ton/month of packaged tea.

To be deter-mined

Yatu Tea Ltd Equity Partner (Joint venture )


TOURISM SECTOR

No. Project Title Project Summary Estimated capi-tal investment


1 Mulungushi International Conference centre redevelopment

Redevelopment of the existing Mulungushi International Conference Centre in Lusaka into an Ultra-modern International Conferencing facility. Infrastruc-ture or works required: refurbishing the existing infrastructure, developing a 5000 capacity Auditorium, Exhibition Centre, Business Park and Office Block, a Five (5) Star Hotel and three (3) Star hotel, Multi-Storey Car Park and nature park

US$400 million MICC limited Equity and/debt Financing

2 Livingstone Hotel and conference center

Development of an ultra-modern multi-purpose conference facility. Infra-structure required include a 3,000 seater convention centre with auxiliary meeting rooms, banquet halls, 5 star hotel, 3 star hotel, shopping arcades, restaurants and entertainment centre with the capacity to host mega events. A 16 hectare site (Government land) has been earmarked for this purpose.

To be deter-mined by the feasibility study

Government Equity and/debt Financing

3 Hotel In Livingstone Development of a family focused 250 room hotel on a 2 hectare site and po-tentially a theme park, with river frontage located in Zambia’s tourism capital and home of the Victoria Falls. The hotel will offer additional services incor-porating appropriate experience adventures in activities.

To be deter-mined

Government Strategic Equity Financing, with management rights

4 Luangwa South National Park Lodge

Development of 100-120 room Lodge located in Zambia’s flagship wildlife safari destination. The location offers walking safaris, has rich flora and fauna with endemic species and there is potential for diversity of activities. Align-ment with the natural environment is a major consideration.

To be deter-mined


5 Kafue National Park Lodge

Development of a 250 beds flagship lodge on the shores of Lake Itezhi-Tezhi, located in Zambia’ largest National Park that boasts around 22,000 square kilometres. It will be a family focused facility and offer additional services incorporating appropriate experience adventures in the activities.

To be deter-mined



CONSTRUCTION AND HOUSING

No. Project Title Project Summary Estimated capital investment


1 Twin –Palm Housing project Development of a mixed use real estate complex comprising of commercial and business hubs with residential units and quality tourism and leisure facilities on a 32ha land located about 9km from the Central Business District of Lusaka city.

Estimated cost of US$120m

ZNBC Equity Partnership

2 Housing and business park (ZAPD)

Development of an office complex and housing complex on the Kabulonga and Emmesdale premises

Estimated cost – US$30million

ZAPD DFBOT

3 Redevelopment of the Zambia International Trade Fair Grounds and mukuba hotel

Redevelopment of the 60hacteres of land into a world class con-ferencing and exhibition facility as well as the expansion, redevel-opment and modernization of existing Mukuba hotel into a five star hotel facility.

To be determined by the feasibility study

ZITF DFBOT

4 Office accommodation Development of a multi storey building for office accommodation to house the Five (5) statutory bodies under the Ministry of commerce, Trade and industry on a Public-private partnership basis. Land in extent of XX is readily available.


Government DFBLT

5 Lusaka South Multi Facility Economic Zone

1. Development of a 2,100 Hectare Multi-Facility Economic zone in Lusaka. Government is seeking potential partners to provide financing, develop and manage the proposed zone. The Zone will provide high class infrastructure and target both export and domestic oriented business to Zambia.

Estimated cost of US$1billion

LS-MFEZ Lim-ited

Master plan complete.

Road infrastructure development going on.


RAILWAY PROJECTS


promoter Project Require-ments

1 Lusaka Mass transit railway

· Development of a modern urban metro mass transit railway line to cater for the growing population in Lusaka and as a way of reducing traffic congestion in Lusaka.


MTWSC/ZDA Feasibility study required

Open for investments

2 Chingola to Jimbe (Border with Angolan) Railway

Expansion of the existing 604km railway line to link with Chingola through Solwezi to the border town of Jimbe to enhance the trans-portation of freight and passenger traffic and other products using Lobito Bay port in Angola

To be determined by feasibility study

Government / MTWSC

No. feasibility studies done.

All projects open for investment

3 Kafue(Zambia) – Ziwa (Zimbabwe) Railway

Linking the Zambia Railway line from kafue (Zambia) to Ziwa (Zimba-bwe) (341km) the way to the Beira Port as the shortest route to the port of Baira in Mozambique.


Government / MTWSC


4 TAZARA Nseluka – Mpulungu port

- The railway lines involves linking Mpulungu Port to TAZARA line at Nseluka (170km) to facilitate the imports and exports from the Great Lakes region to the sea ports on the Indian Ocean


Government / MTWSC


5 M c h i n j i / C h i p a t a Railway

Extension of the existing railway line to TAZARA by 406km- The rail-way line involves linking the Chipata–Mchinji line through Petauke District to the port of Nacala in Mozambique.


Government / MTWSC



ENERGY PROJECTS



1 Kafue Gorge Lower Hydro power stations

· Construction of a new 750 MW power station 10 km upstream of the existing Kafue Gorge Power Station dam

· Market is readily available.

· Infrastructure required include 130m high Concrete Faced Rockfill Dam,Surface powerhouse accommodating 5 x 150 MW machines and 330 kV Switchyard

US$1.6billion ZESCO Strategic equi-ty and/or debt partners

2 Lusiwisi Upper power station

·Construction of a new 15 MW power station 5km upstream of the existing weir and intake structure for the Lusiwasi Power Station. Market readily available.

· Infrastructure required include Run-of-river scheme with weir and intake structure leading into a 4.3km canal, Fore bay and penstock, Surface powerhouse accommodating 3x5 MW machines and 66 kV Switchyard

US$47m ZESCO Debt Financing

3 Musonda Falls Power station

·Rehabilitation and up-rating of existing 5MW plant to 5.8 MW and installing an additional 4.2 unit to give a total installed capacity of 10 MW. Market readily available

· Infrastructure / works required include Rehabilitation of access roads, etc.; Remedial works on water retaining and conveyance structures; New intake structure and penstock; Demolition and reconstruction – fore bay, transfer canal, etc.; Extension to existing surface powerhouse to accommodate 4.2 MW extension and Modification and expansion of 33 & 66 kV Switchyard

US$35m ZESCO Debt Financing

4 Chishimba Falls Power station

·Rehabilitation of existing “B” station 4 x 1.2 units, decommissioning of existing station “A” and construction of a new station “C” with 2 x 5 MW units to give a total installed capacity of 14.8 MW. Market readily available

· Infrastructure / works required include Rehabilitation of access roads, workers compound etc; Remedial works on water retaining and conveyance structures; New intake structure and penstock; Demolition and reconstruction – fore bay, transfer canal, etc; Extension to existing surface powerhouse to accommodate 4.2 MW extension and Modification and expansion of 33 & 66 kV Switchyard

US$ 35 m ZESCO Debt Financing

5 Kapisya Geother-mal Power plant

·Rehabilitation of existing 200kVA plant and upgrading by 2MW. Detailed drilling investigation required to determine exact available potential before implementation. Market readily available

· Infrastructure/ Works required include overhaul existing turbine – generator electromechanical equipment, Re-injection well drilling and associated equipment, Production wells drilling

US$ 15 m ZESCO Debt Financing


MANUFACTURING AND PROCESSING

No. Project Title Project Summary Estimated capital in-vestment


1 Indeni Oil Refinery

Government is divesting 49% of its shares in the refinery to seek a strategic equity partner to facilitate the upgrade of the refinery to enable the company process pure crude petroleum and produce cleaner products as well as for the expansion of the company. Infrastructure / works required include purchase and installation of the Light Gasoline Isommeriser; Gasoil (diesel) Hydrotreater / desulphurization plant; Bitumen Plant; (crude) carbon hydrocracker and plant Rehabilitation

US$467,700 Government Strategic equi-ty partner

2 Mills Balls production

Opportunity to increase capacity for mill ball production. The company seeks to double its production from the current 12,145 tonnes of High Chrome mill balls to satisfy a yawning market and expanding copper industry in Zambia. SCAW is the largest foundry and producer of grinding media (mill balls) and steel alloy castings in Zambia, supplying the copper mining industry.

US$3million Scaw Lim-ited

Equity Funding (Joint Venture)


EDUCATION No. Project Title Project Summary Estimated

capital in-vestment


1 ZAOU – School of Agricultural Science

Establishment of the school of agriculture in Mbala on the available 500ha of land To be deter-mined

Zambia Open Uni-versity

Equity and/or debt financing

2 ZAMSET Uplifting the school of mines at the university of Zambia to address issues of value ad-dition, geological mapping, ground water research and small scale mining. Works re-quired

Infrastructure / works required include enhancement of teaching infrastructure, pur-chase of laboratory and field equipment; construction of a false room and extension of the building to accommodate laboratories, lecture theatres, library and offices

US$2.125 million

University of Zambia – School of mines

Equity and/or debt financing

DFBOT: Design, Finance, build, Operate and Transfer

DFBLT: Design, Finance, Build, Lease and Transfer


By Road

By Air

By Rail

Three Intl. Airports

Organized Regional Roads

Inter-connected railR S A

K E NY A

Strategically Located Strategically Located


SERVICES OFFERED

� Guidance through the entire export and investment process and after care

� Promoting investment competiveness of businesses and promoting exports from the country

� Global export market information and product Development

� Promoting growth of the Medium Small and Micro Enterprise

FOR ENQUIRES CONTACT

Director GeneralZambia Development Agency Privatization House, Nasser Road P.O Box 30819, Lusaka, Zambia

Tel: +260211224790/220177/229240Fax: +260225270Email: [email protected]: www.zda.org.zm

Zambia Development AgencyPromoting Economic Growth and Development

investment opportunities

Documents

ha land

ha of land

investment guarantees

timber plantation development

tourism sector

manufacturing sector

minerals sector

prominent sector