Zambia’s Luapula province is ready for business
For investors who are looking to expand their opportunities in infrastructure, agriculture, mining, energy or hydro power – Luapula province offers real jewels for partnerships. Zambia has a growing economy that for the last four years has relished an average of 7.1 percent GDP growth per annum. Furthermore the size of the workforce and consequently, the domestic markets for all goods and services is projected to grow significantly over the next 5 to 10 years.
In the words of Mrs Joyce B Nsamba, Deputy Permanent Secretary, “The growth opportunity for the country lies in its resources, people and markets. Zambia is a friendly country with the Luapula province being one of ten in the Republic of Zambia – and 7th in size as it accounts for 6 percent of land in the country (or 50, 566km2). Agriculture remains a key avenue for future growth. We have good weather with soils that are rich in minerals that can reap all types of food and we do not struggle with water as we have one of the third largest water resource in Zambia. The investment opportunities are rife and include; agriculture, mining, infrastructure, tourism and fishing, to name a few. Our country has sustainable economic development and we aim to have a poverty free province by 2030.”
“Zambia certainly has promising economic prospects and major opportunities in priority sectors in tourism, power generation and electricity, energy and we have value added raw materials for investors.”
Our country is a key investment destination to take note of as we have a strong support system for investors, whereby we have the Zambia Development Agency Act 11 of 2006 that is able to protect our investors’ interests. Furthermore in relation to key income taxes, if an organisation invests in our country for the first five years there is a zero percentage in income tax and only by the sixth or eighth year will an organisation be required to pay 50 percentage of the income tax, says, Mr Roy Kapembwa, Zambia Development Agency.
In addition, the Luapula Province is a worthy “contender” to the other nine provinces when it came to Zambia’s investment opportunities. According to Daniel Rea, KPMG (Zambia) Senior Manager, “Zambia’s economy has improved largely due to strong foreign direct investment into copper mining, significant opportunities in hydropower generation as well as the agricultural sector. It’s also currently one of the most politically stable countries in Africa. On the backbone that the country has experienced on a national scale that investors are also starting to realise the great opportunities and benefits to investing in Zambia’s Luapula province. The Luapula province is unleashing its potential with a solid GDP and great projects – such the development of the road link 8000 project and North West railway – that will in time make it easy for investors to operate and do business in the province.
The relationship between South Africa and Zambia will enable South African investors – and even foreign investors with operations in South Africa – to become more aware of the vast opportunities in Luapula province. “Though South Africa may no longer be viewed as the only gateway to investing in Africa, the country still has a significant role to play in both engaging and facilitating sustainable investment through trade relations,” says, Mr Anthony Thunstrom, KPMG, Chief Operations Officer for Global Africa Practice.
These were the views and sentiments expressed during the Africa Exchange Country Focus Seminar – focused on Zambia – that was recently hosted at KPMG’s office.
The next seminar will be focusing on Côte d’Ivoire and will be held on the 28th of February 2014.