Zambia

Zda Spotlight Development

Agency

Issue 10 January 31 2010

Inside this issue:
ZDA Sets Roadmap for
the Year
ZDA Targets US$1 Bil-
lion FDI in 2010
Africa to Register 4.3%
Economic Growth
Zambia, Tanzania and
Kenya to Build Power
Link
JPA: Zambia’s EU/ACP
Co-Chair
ZDA Facilitates SME-
Pamodzi Hotel Busi-
ness Linkage
Points of Interest
• “Empowering small farmers
to increase productivity,
improve crop quality and
access reliable markets are
critical to addressing global
hunger and poverty.”
• “Zambia’s economic policies
and business reforms
helped the country to attain
6.3 percent growth last year
amid the economic crisis as
well as achieving a single
digit inflation of 9.9 percent
last month.”
M-Mobile Injects US$10m into Expansion
2
tect M-Mobile’s investment
through the signed IPPA
3 and will use the company
as a point of reference to
attract and convince other
investors to invest in the
4 country.
And Mr. Mutati said govern-
5 ment was this year target-
ing US$200 million invest-
ment inflow into the coun-
try through the Triangle of
5 Hope (ToH) initiative under
the theme “Let’s score for
Zambian Investment , Let’s
6 score for Zambia for Eco-
L-R: M-Mobile Chairman Mr. Muhammad Seedat, Mr. Felix Mutati and nomic Growth.”
ZDA Chairman Mr. Luke Mbewe during the signing of the IPPA to guar-
antee M-Mobile’s US$10m Investment in its Expansion Plan. Meanwhile, M-Mobile chair-
person Mr. Muhammad
Government, Zambia Develop- Mr. Luke Mbewe signed for Seedat commended gov-
ment Agency and M-Mobile the Agency and M-Mobile ernment for creating an
Telecommunication Zambia chairman Mr. Muhammad environment that promotes
Ltd have signed a US$10 mil- private sector development
lion Investment Promotion and Seedat signed for M-Mobile.
under the ToH business
Protection Agreement (IPPA) to
Speaking during the signing reforms.
guarantee the company’s ceremony, Mr. Mutati said
investment in its plant expan- government was determined to “The support from govern-
sion project. ensure that investors thrive ment through the Triangle
and share knowledge with of Hope initiative has
Minister of Commerce, Trade helped us to set up the
and Industry, Felix Mutati local people to stimulate long
term economic growth and plant and has encouraged
signed on behave of govern- us to invest more through
ment, Zambia Development job creation.
this expansion pro-
Agency (ZDA) chairperson He said government will pro- ject,” (Cont’d on Page 3)

• “We continue to ramp up

the Lumwana operation and
while we still expect chal-
lenges ahead, improvement
in mine and plant productiv-
ity should continue into the
2010 dry season, delivering
our production target for
2010 of 135,000 tonnes of
copper in concentrate.”
Quote
“Don’t wait for extraordinary
opportunities. Seize common
occasions and make them
great.” - Orison Swett Marden
Japanese Firm to Set up Automobile Spares Plant
A Japanese company, Hitachi
Construction Machinery Com-
pany Ltd has said it will setup
an automobile spare plant in
Lusaka worth US$10 million
in the second half of this year.
Hitachi General Manager for
the African Department of
Sales and Marketing, Hi-
demi Murata said Zambia
offered substantial business
opportunities that Hitachi
wanted to utilise to enhance
the economic status of citi-
zens of both countries.
Mr. Murata said recently
Lumwana Mine ordered
machinery from Hitachi and
about 100 technical staff
from the company are in the
country to assist the mine
with setting up and operat-
ing the equipment.
“Hitachi has a lot of equip-
ment in Zambia. For in-
stance we supplied 100
pieces of mining equipment
to Lumwana Mine, while
Konkola Copper Mines and
Kansanshi also purchased
equipment from us,” he
added.
(Cont’d on Page 2)

1
PAGE 2
ZDA Sets Roadmap for the Year
ZDA Director General, Andrew Chipwende
has said the main focus of the Agency in
2010 will be improving service delivery
especially for micro and small enterprises
(MSEs) as well as pursing result oriented
investment and export promotion and
market research strategies.
In his keynote speech at a ZDA retreat
held in Siavonga on January 15 – 16,
2010, Mr. Chipwende said under the
MSE Division the Agency would work
closely with the Investment Promotion
and Privatisation Division to improve
MSEs’ capacities to engage in supply
systems linked to multi-nationals and
other bigger companies.
Mr. Chipwende said the division should
aim at improving the quality of prod-
ucts and services offered by SMEs. He
added that ZDA should further identify
specific sectors or top performing SME
companies that ZDA could work with to
promote growth.
Mr. Chipwende said the Investment
Promotion and Privatisation Division
should focus on sensitizing the public
on procedures and guidelines for in-
vestment, especially for Multi-Facility
Economic Zones (MFEZ), investment
licence procedures and accessing in-
centives.
On Export Promotion and Market Re-
search more efforts will be directed at
developing new products in the non-
traditional sector and identifying new
markets. “For instance there is high
demand for goats in like Saudi Arabia,
which needs to be explored further,”
Mr. Chipwende said.
He urged ZDA to enhance collaboration
and networking with both the private
sector and government agencies like
Patents and Companies Registration
Office (PACRO) and Citizens Economic
Empowerment Commission (CEEC) to
improve on service delivery and jointly
provide required services to the private
sector and the general public.
Zambia Targets Indian Conclave,
Shanghai Expo
Zambia will participate in this year’s
sixth Conclave on India Africa Project
Partnership scheduled for 14 – 16th
March 2010.
The Conclave presents an ideal forum
for business interaction with potential
investors and renowned Indian compa-
nies interested in business
Partnerships. Zambian government offi-
cials and representatives from the pri-
vate sector will be in attendance.
Zambia Development Agency in conjunc-
tion with the Ministry of Commerce,
Trade and Industry, has since invited the
Zambian business community to be part
of the delegation.
The delegation will be led by Minister of
Commerce, Trade and Industry Felix
Mutati.
Participants are expected to contribute a
participation fee of US$100 and meet
their travel and accommodation costs.
Meanwhile, Zambia will also participate
at this year’s Shanghai Expo which will
be held in Shanghai, China from May 1 –
October 31 2010.
The Shanghai Expo is the scheduled
World Exposition in the grand tradition of
international fairs and expositions under
the theme: “Better City – Better Life.”
The Expo signifies Shanghai’s new
status in the 21st century as a major
economic and cultural centre.
The 2010 Expo is expected to generate
the largest number of Trade visitors in
the history of the world’s Trade Fairs and
Expositions.
The main objective of Zambia’s partici-
pation at the event is to give an opportu-
nity for Zambian companies to showcase
their products to Chinese importers from
all over the world, as well as establish
business links with prospective buyers.
Zambia Development Agency is coordi-
nating the participation of Zambian com-
panies to the event in conjunction with
the Ministry of Commerce, Trade and
Industry. The Agency is thus extending
an invitation to Zambian companies
wishing to participate at the Expo.
Four Bidders Still in Zamtel Race
All the four companies and consortia that
submitted first round bids on 23rd Decem-
ber 2009, for up to 75% stake in Zamtel,
have successfully gone to the second
round of bidding.
The bidders who shall proceed to the
next round are Bharat Sanchar Nigam
Limited (BSNL) of India, LAP Greencom
Ltd/LAP Green Networks of Libya,
Unitel /Angola Cables of Angola and
Altimo Holdings/Vimpel Com of Russia.
The ZDA Board approved the recom-
mended shortlist on January 11, 2010
2
IS SUE 10
after a detailed analysis conducted by
an Evaluation Committee.
Commenting on the shortlist at a press
briefing to announce the successful
bidders, Director Investment Promotion
and Privatisation Muhabi Lungu said he
was happy with all four participants who
have gone through to the next stage of
the process. “The bids submitted were
compelling, and set the stage for an
exciting next phase,” he added.
The four bidders will now be invited to
participate in the next round of bidding
and will be given details of the require-
ments and timing for the next phase of
the process. Details of the bids will not
be disclosed at this stage as doing so
would prejudice future phases of the
privatisation process.
Japanese Firm to Set up Automo-
bile Plant in Lusaka
From Page 1
He said the plant to be established by
Hitachi will be manufacturing spare
parts and other components for differ-
ent automobiles.
Mr. Murata said setting up the plant
would reduce the cost of accessing
spare parts for Japanese vehicles that
many Zambians own.
Hitachi was one of the 12 Japanese
companies that were part of the Japa-
nese Trade and Investment Promotion
mission that visited Zambia to explore
business opportunities in the country
from January 25 to 28, 2010.
The mission comprised 50 representa-
tives from the private sector as well as
the Ministry of Foreign Affairs, Ministry
of Economy, Trade and Industries and
Japan External Trade Operation.
The main focus of the 12 companies
included mineral resources exploration,
infrastructure development, energy,
information, communication technolo-
gies (ICTs), rural development and agri-
culture.
The mission is a follow-up activity of the
fourth Tokyo International Conference
on African Development, which was held
in May 2008, at which the Japanese gov-
ernment committed itself to efforts of
doubling Japanese investment to Africa.
The team visited Lusaka and met many
government officials and later visited the
mines on the Copperbelt before pro-
ceeding to Mozambique for further
exploration of business opportunities.
 IS SUE 10
ZDA Targets US$1 Billion FDI in
2010
Zambia Development Agency is target-
ing to attract about US$1 billion foreign
direct investment (FDI) into the country
this year, Agency Director General An-
drew Chipwende has said.
And Mr. Chipwende has said the South-
to-South Corridor initiative is vital to
increase investment inflows into Zambia
through improved infrastructure devel-
opment.
Mr. Chipwende was speaking during an
Economics Association of Zambia (EAZ)
– Zambia Development Agency Japa-
nese Business Seminar held at Taj
Pamodzi Hotel in Lusaka on January 26,
2010. Mr. Chipwende said with the busi-
ness reforms the country was imple-
menting and the economic stability re-
corded in the last few years, ZDA was
confident of recording increased FDI
inflows this year.
He said following the FDI trends into
Zambia since 2000 and after the burst-
ing of big economies out of the reces-
sion that withered FDI inflows last year
and part of 2008, the Agency was confi-
dent to meet the one billion dollar target
this year.
Mr. Chipwende said the business re-
forms the country was pursuing mainly
under the Triangle of Hope initiative was
putting the country on higher leverage in
the region, a situation ZDA aimed to
utilise to attract more FDI into Zambia
from all over the world.
“Zambia’s economic policies and busi-
ness reforms helped the country to at-
tain 6.3 percent growth last year amid
the economic crisis as well as achieving
a single digit inflation of 9.9 percent last
month,” Mr. Chipwende said. “The
growth achievement was the highest
among the many economies in Africa
and developed countries.”
He said more reforms in the energy and
telecommunications sectors as well as
the revision of the Companies Act were
being undertaken to further Zambia’s
attractiveness to FDI and improves its
ranking on the Doing Business radar.
Meanwhile, Mr. Chipwende said infra-
structure development beyond the Zam-
bian borders through the South-to-South
Corridor will make the country more
attractive as it will reduce the cost of
transportation of goods to the sea.
He said improving infrastructure in the
country alone would still disadvantage
Zambia in terms of attracting investment
due to its dependency on neighbouring
countries’ infrastructure for transporting
goods to sea ports.
Mr. Chipwende said the initiative to build
one-stop-border posts under the private-
public-partnership (PPP) would reduce
the cost of doing business in the country
and hence improve Zambia’s attractive-
ness as an investment destination.
Zambia Tipped….
World Bank Country manager Dr. Kapil
Kapoor has said Zambia has many
growth prospects in the agriculture sec-
tor that require an enhanced policy envi-
ronment to ensure that the majority of
Zambians surviving on the sector benefit
from economic growth.
Dr. Kapoor said the World Bank was
focusing its efforts on Zambia’s long
term development challenges that are
meant to help the country create an
environment that would accelerate
growth and help empower the Zambian
people to participate in that growth.
He said the Bank had in recent years
dedicated itself to analysing the agricul-
ture sector, surveying the cost of doing
business and making recommendations
to make Zambia more competitive re-
gionally and globally.
Dr. Kapoor said the rationale of such
focus was to ensure that the policy envi-
ronment was responsive to economic
growth and citizen empowerment.
Meanwhile, Dr. Kapoor said Zambia was
relatively affected by the global financial
and economic crisis, which affected
major economies in the Western world
and whose secondary effects impacted
on developing countries.
“Many countries suffered adversely from
the protracted effects of the global finan-
cial crisis last year. But although the price
for Zambia’s principal export, copper, col-
lapsed and its currency depreciated sig-
nificantly during the early stages of the
financial crisis, the country experienced
a sharp recovery,” he observed. Zanis
ZDA Partners with BoZ, CSO on PCF-
IP Survey
Zambia Development Agency has signed
a Memorandum of Understanding on
Foreign Private Capital Flows and Inves-
tor Perception (FPC-IP) with the Bank of
Zambia and Central Statistical Office,
aimed at creating a reliable information
system to bridge the gap of lack of con-
sistent information on FPC-IP for policy
formulation.
3
PAGE 3
ZDA director of investment promotion
and privatisation Muhabi Lungu said a
reliable information system was cardinal
for designing appropriate policy re-
sponses that enhance macroeconomic
stability hence the signing of the memo-
randum of understanding (MoU).
Mr. Lungu said foreign private capital
has become a major source of capital
for economic development thus a reli-
able information system on investor
perceptions was key to help government
design policies attract more investments
into the economy.
The MoU, signed on January 14, 2010,
is intended to foster co-operation among
the balance of payments technical com-
mittee institutions in their execution of
various responsibilities necessary for the
collection of various balance of payment
statistics which includes conducting
FPC–IP surveys.
It will also formalise the roles which
individual member institutions are sup-
posed to play in monitoring and analys-
ing Foreign Private Capital Flows and
Investor Perception in Zambia.
Accurate and reliable data on private
capital investment is vital for under-
standing current developments in the
economy. Thus adequate and consistent
information on FPC-IP will also serve as
a warning system for Government on
potential international financial crises
and other external shocks.
M-Mobile Injects US$10m into Ex-
pansion
From Page 1
said Mr. Seedat. “Such business reforms
are crucial for sustainable private sector
led development.”
He said ToH initiatives played a critical
role in the creation of a favourable busi-
ness environment in Zambia. Mr.
Seedat said M-Mobile came into Zam-
bia under the ToH through which Zambia
was marketed in Malaysia.
And Zambia Development Agency chair-
person Mr. Luke Mbewe said the setting
up of the first mobile phone assembly
plant in the country by M-Mobile opens a
new window of technological sharing
into the Zambian market especially
among local entrepreneurs.
Mr. Mbewe said Zambia Development
Agency was satisfied with the opera-
tions of M-Mobile and was hence ready
to support the company’s expansion
project even beyond Lusaka.
 Regional Spotlight
ISSUE 10
Zimbabwe Projects 7% Economic
Growth this Year
Zimbabwe’s economy will grow by 7 per-
cent and capacity utilisation, revenue col-
lection and foreign investment will rise,
Finance Minister Tendai Biti has said.
Mr. Biti added that Zimbabwe has been
put back on the path to economic recov-
ery after years of decline.
And the World Bank has forecast a 7.1
percent 2010 gross domestic product
growth rate for Zimbabwe in line with the
Finance Minister’s projections of 7 per-
cent made in the budget statement pre-
sented in December 2009.
Mr. Biti has added that growth could rise
by as much as 15 percent in 2010 as
the country aims to fully utilise its pro-
ductive capacity and sell-off state as-
sets. He noted that the Zimbabwe Stock
Exchange, which opened earlier this
year, was one of the fastest growing in the
world and said the withdrawal of the worth-
less Zimbabwean dollar from circulation
early this year had breathed new life into
the economy, which once battled world
record-beating inflation. Reuters
Mozambique Approves US$800 mil-
lion Coal Mine
Mozambique has approved the construc-
tion of an US$800 million coal mine north-
west of the country by an Australian mining
firm.
The mining company Riversdale plans to
produce 20 million tonnes a year from
the cooking and thermal coal project
and will also build a 2,000 megawatt a
day power plant.
Riversdale predicts that the project will
produce some of the lowest-cost cooking
coal in the world. The mine’s initial re-
serves is estimated at 273 million ton-
nes, 181 million tonnes of proved re-
serves and 92 million tonnes of prob-
able reserves. Riversdale holds a 65
percent stake in the mine and Indian
firm Tata Steel 35 percent.
The two companies plan to develop the
project in three stages, beginning pro-
duction at 5 million tonnes per year and
ramping up to 20 million tonnes as Mo-
zambique's transportation infrastructure
improves.
Riversdale said Mozambican environ-
mental authorities had approved all
three stages of the project. Mozam-
bique’s northwest province of Tete is
one of the world’s last great unexploited
coal reserves. Sapa-AFP
Ghana Investment Inflow Rises… as
Economic Crisis Slackens
Ghana registered a total of US$267.25
million investment inflow in the third quar-
ter of 2009, compared to US$111.67
million recorded in the second quarter of
this year.
Ghana Investment Promotion Centre
(GIPC), CEO George Aboagye said the
new investment represented a signifi-
cant increase of 139.32 percent over
figures of the previous quarter, despite a
1.22 percent drop in the number of in-
vestments recorded.
China topped the list of countries with
the highest number of projects while
South Africa topped the list of countries
with the largest value of investment.
Fifty of the projects, representing 61.73
percent were wholly owned foreign enter-
prises with a value of US$94.7 million
while 31 percent constituted joint ventures
between Ghanaians and their foreign part-
ners. The joint ventures recorded 64 per-
cent of the total estimated value of pro-
jects while the wholly owned entities had
36 percent. dailyguideghana.com
Coca-Cola to Empower 50,000
Farmers in Kenya, Uganda
Coca-Cola Company, non profit TechnoS-
erve, and the Bill & Melinda Gates Founda-
tion have launched a partnership to enable
over 50,000 small fruit farmers in Uganda
and Kenya to increase their productivity
and double their incomes by 2014.
The US$11.5 million four-year partner-
ship will enable mango and passion fruit
farmers to participate in the company’s
supply chain for the first time. With a
US$7.5 million grant provided by the
Gates Foundation to TechnoServe, US$3
million provided by the Coca-Cola Com-
pany, and US$1 million by bottling part-
ner Coca-Cola Sabco, the project aims to
create new market opportunities for
local farmers whose fruit will be used for
Coca-Cola's locally-produced and sold
fruit juices.
TechnoServe will train participating farm-
ers in improving quality, increasing produc-
tion, getting organised into farmer groups,
and will facilitate access to credit. The
project will be implemented in close col-
laboration with the governments of Kenya
and Uganda, given its significance in the
context of their poverty reduction strate-
gies. It is intended to produce lasting
benefits for participating farm communi-
ties, enabling them to benefit from im-
proved livelihoods for many years to
come. afrircangoodnews.com
4
PAGE 4
Africa to Register 4.3% Economic
Growth
African economies are expected to register
a combined 4.3 percent economic growth
this year, a big leap from the combined
growth of a modest 1.6 per cent in 2009, a
senior Economic Commission for Africa
(ECA) official has said.
ECA Senior Economic Affairs Officer,
Adam Elhira ika has said the growth
which is expected to be powered by ris-
ing commodity prices and positive im-
pact of stimulus financial interventions
put in place to defeat the world reces-
sion, would have an overall positive ef-
fect on African economies. From a nega-
tive growth of 2.2 percent last year, the
world economy is expected to grow by 2.4
percent this year, which the ECA official
said would strongly stimulate demand for
most African exports, particularly com-
modities. Hard hit by the global recession
which caught most African countries off-
guard and ill-prepared to deal with its con-
sequences, the continent posted com-
bined economic growth of a modest 1.6
percent. pana
Mauritius’s Economy to Grow Over
Next Three Years – IMF
The IMF has said Mauritius' economy
would expand over the next three years
and said the Indian Ocean Island’s mone-
tary policy appeared appropriate.
"Economic growth is projected to in-
crease to 5 percent per year by 2011,
reflecting a reversal of the growth con-
traction in the EU, Mauritius' main mar-
ket for exports and tourism," the IMF
said in a statement. "With inflationary
pressures subdued, and the economic
outlook uncertain, the monetary policy
stance appears appropriate." Reuters
Angola, India Ink Oil Exploration
Deal
Angola and India’s state oil companies
have signed a memorandum of under-
standing (MoU) to boost co-operation in
exploration and refining of oil in the two
countries and beyond.
The MoU was signed in Luanda by An-
gola’s Sonangol Company Chairman
Manuel Vicente and R.S. Sharma, chair-
man of India’s Oil and Natural Gas Cor-
poration. The MoU signified a big step
forward in India’s efforts to enter the
Angolan market, where Western coun-
tries and China are currently the main
players in Africa’s largest oil producer,
said Mr. Sharma. Sapa-AFP
ISSUE 10
Zambia, Tanzania and Kenya to
Build Power Link
Zambia, Tanzania and Kenya will next
year start work on a 400 MW power line
to boost trade in electricity among them
and ensure security of supply.
Ministry of Energy and Water Develop-
ment Permanent Secretary Teddy
Kasonso has said officials in the three
countries were preparing formal propos-
als for funders and donors for the pro-
ject, which would begin in 2011.
Mr. Kasonso said other energy ministers
from Kenya and Tanzania had been
authorised to sign the Heads of States
Agreement and letters of introduction to
formally present the project to potential
lenders and donors.
He said commissioning of the inter-
connector, initially planned for next year,
had now been pushed to 2014 due to
delays caused by slow government ap-
proval procedures in Kenya and Tanza-
nia.
Mr. Kasonso added that letters to poten-
tial lenders and western donors, which
were initially drafted in 2007, also
needed to be revised, taking into ac-
count new requirements.
"Our current estimates, which will need
revising, are that this project will cost in
the region of US$860 million," he said.
The project would enhance trade in elec-
tricity between the Southern African
Power Pool (SAPP) and the East African
Power Pool (EAPP), including Ethiopia
and Sudan.
"The project may also benefit the three
countries by carrying a fibre optic cable
thereby opening up an information high-
way," Mr. Kasonso said. “It will also help
in addressing the problem of power
shortage which has been precipitated by
the high demand for power in Africa due
to increased economic activities.”
Mr. Kasonso said the project company
and project management unit with staff
drawn from all the three countries
(Zambia, Tanzania and Kenya) would be
established in Lusaka this year.
The 400 Mega Watts (MW) of power line
would run from a sub-station in central
Zambia through Kasama in the Northern
Province to Mbeya and then Arusha in
Tanzania en route to Nairobi.
Mr. Kasonso said the project would en-
courage investment in new hydropower
generation projects in Zambia because
surplus power could be exported to East
Africa. Reuters
BoZ Projects 8% Growth in 2010
Bank of Zambia (BoZ) governor Dr. Caleb
Fundanga has projected that the country
will attain between 7 to 8 percent gross
domestic product rate this year, which will
help create more wealth for the people.
In his 2009 fourth quarter media brief-
ing recently, Dr. Fundanga indicated that
the central bank had projected further
continuous dropping of the inflation
rates to single-digit levels this year.
He further projected an increase in cop-
per production and investment inflows in
the mining sector, which will help create
new wealth for the majority of Zambians.
“Zambia’s achievement of a single-digit
inflation in December last year was a
positive development for the growth of
the national economy compared to the
16 percent that the country recorded at
the beginning of 2009,” he said. “This is
significant given that we are back to
single digits. The Minister of Finance
targeted inflation rate at 10 percent,
then it was revised to 12 percent last
year, so this means we have gone over
the revised rate. This is something to
celebrate about.”
JPA: Zambia’s EU/ACP Co-Chair
Zambia will use its co-presidency of the
EU/ACP Joint Parliamentary Assembly (JPA)
to enhance regional integration, the wel-
fare of developing countries and relations
with the European Union.
Zambia won the right to the rotational
co-leadership of the EU/ACP JPA in An-
gola recently.
Zambian Ambassador to the EU and the
African Caribbean Pacific (ACP), Mrs.
Sheila Siwela said Zambia’s co-
Presidency to JPA was for the benefit
and great good of developing ACP coun-
tries.
Mrs. Siwela said the hard work of the
Zambian missions abroad especially
those in Brussels and Angola contrib-
uted to ensuring that the country ob-
tained the co-leadership of the JPA as its
influence in geo-politics could not be
denied.
Zambia’s National Assembly has nomi-
nated Luena Member of Parliament, Mr.
Charles Milupi as Zambia’s representative
to the EU/ACP august Assembly which
rotates among member states in Europe
and ACP counties for two years. The EU
is represented to the co-Presidency by the
immediate past European Commissioner
for Development Mr. Louis Michel.
5
PAGE 5
Lumwana Mines Increase Copper
Production
Lumwana Copper Mines has said it pro-
duced more than 109, 000 tonnes of cop-
per concentrate last year and targets to
increase the production level to 135, 000
tonnes this year.
According to Equinox Minerals’ prelimi-
nary production results for the quarter
ended December 31 2009, copper con-
centrate production for 2009 amounted to
109,413 tonnes. Lumwana Copper Mines
is wholly owned by Equinox Minerals.
“Production in the fourth quarter contin-
ued the trend of quarter-on-quarter im-
provement throughout 2009, with Lum-
wana delivering annual production for
2009 of 109,413 tonnes of copper in
concentrate. This is a commendable
performance from the Lumwana team.
We continue to ramp up the Lumwana
operation and, while we still expect chal-
lenges ahead, improvement in mine and
plant productivity should continue into
the 2010 dry season, delivering our
production target for 2010 of 135,000
tonnes of copper in concentrate,” Equi-
nox President and CEO, Craig Williams
said. Mr. Williams said meeting the tar-
get was dependent on a range of factors
including performance of the mine and
mill during the wet season which the
company expects to particularly impact
the first quarter of 2010, improvement
in the availability and utilisation of the
mining fleet and performance of the
processing plant. equinoxminerals.com
Kwacha to Gain 3.1% against Dollar
in 1st Quarter
Standard Chartered Bank Plc has pre-
dicted a 3.1 percent gain of the Zambian
kwacha against the US Dollar by the end of
the first quarter as improved copper prices
boost the country’s export revenue.
“The powerful upswing in copper prices
is beginning to translate into higher
earnings and remittances for Zambia,”
Robert Minikin, a senior currency strate-
gist at Standard Chartered has said.
“That underlines our improved profile for
modest short-term strength in the kwa-
cha.” According to the Bank’s January
highlights, copper which rallied at about
145 percent since the start of last year
due to speculation demand for the metal
used in electrical wiring will gain as
manufacturing recovers in China, Europe
and the U.S. “Shipments of the metal ac-
count for almost 75 percent of Zambia’s
export earnings and about 30 percent of
the country’s GDP,” the Bank estimated.
 Zambia Development Agency
DECEMBER DECEMBER
P.O Box 30819 SELECTED ECONOMIC INDICATOR
2008 2009
Nasser Road
1. Inflation rate (%) 16.6 9.9
Lusaka, Zambia 2. Average Treasury bills rate (%) 16.0 10.1
3. GRZ Bond Yield Rate: (24-month) (%) 16.6 15.9
4. Average Lending Rate (%) 29.6 29.2
Tel: 260-211-220177 5. Exchange Rates: (ZMK/foreign cur-
rency)
Fax: 260-211-225270 US$ 4,880 4,550
EURO 6,400 6,900
E-mail: zda@zda.org.zm
BPS 7,300 7,700
Website: www.zda.org.zm RSA 490 630
6. Agriculture Commodity Prices:
(US$/MT)
Maize N/A 319
Wheat N/A 375
Soya beans N/A 370
7. Capital Market Activity
Equity trading:
Number of Trades 508 474

Volume of Trade 19,797,000 17,103,000

Turnover (US$) 5,045,000 1,850,000

Foreign Portfolio Investment:
(US$)
Inflows (Buying) (US$)
Promoting Economic Growth 77,500 135,000
Outflows (Selling) (US$) 4,641,000 334,000
and Development Net Position (US$) 4,563,000 199,000
Source: BoZ, CSO, LuSE, Zamace

Zambia Development Agency

Lusaka South MFEZ Road works to
Begin
China Jiangxi has been awarded a con-
tract to design and construct the 2.4 km
Chifwema Road and some 50km inter-
nal road network in the Lusaka South
Multi-Facility Economic Zone (MFEZ) in a
joint venture with BICON Zambia Lim-
ited.
The Zambia Public Procurement Author-
ity (ZPPA) through the Central Tender
Committee Meeting that was held on
December 21, 2009 granted authority to
China Jiangxi Corporation for Interna-
tional Economic and Technical Coopera-
tion in association with BICON Zambia
Limited to undertake the project for
more than K47 billion.
Chifwema Road is one of the main ac-
cess roads that will connect the Lusaka
South MFEZ to Leopards Hill Road.
Other access roads according to the
MFEZ master plan will connect Mosi-O-
Tunya Road, Kafue Road and to the
Lusaka Park, a Game Management
Area.
China Jiangxi
Inflation in joint
Drops venture with BICON
by 0.3%
Zambia is currently mobilising to start
The annual inflation
construction works.rate
Theforproject
the month
is ex-
January
pected tohasbedeclined by 0.3
completed percentage
within twelve
points from 9.9 percent in December last
months.
year to 9.6 percent.
The Central Statistical Office (CSO) at-
tributed the decrease to continued re-
duction in prices of some food stuffs.
According to the CSO monthly release,
the inflation rate dropped for food, bever-
ages, tobacco, clothing, footwear, furni-
ture, household goods, medical care,
transport and communications. Food prod-
ucts reduced by 3.6 percent, while non-
food products by 6.0 percent on the con-
sumer price index (CPI)
Meanwhile, CSO indicated that the an-
nual inflation rate increased for rent,
fuel and lighting.
The Statistical Office further noted that
the recent increase in fuel prices was
announced after the January statistics
were collected hence the increase in the
commodity will be reflected in the Febru-
ary consumer price index.
ZDA Partners with Taj Pamodzi on
Business Linkages
of
In a bid to facilitate business linkages
between small-scale entrepreneurs and
large national and trans-national compa-
nies, ZDA’s Micro and Small Entreprise
(MSE) Division in conjunction with Interna-
tional Labour Organisation (ILO) has under-
taken a programme aimed at building the
capacity of micro, small and medium en-
terprises (MSMEs) to be suppliers for the
Taj Pamodzi Hotel.
The capacity building programme focuses
on improving operational efficiency, busi-
ness skills and creating employment op-
portunities for the MSME sector. To this
effect, ZDA and ILO organized training from
Janaury 25 – 29, 2010 for 17 MSMEs
drawn from various sectors. The majority of
the participants were farmers wishing to
supply the hotel with vegetables. Others
were looking at possibilities of supplying
electrical fittings, laundry services and
servicing of computers. The training will
culminate in the signing of a cooperation
agreement with Taj Pamodzi aimed at
fostering involvement of local MSMEs in
the value chains of large companies.