SADC – JAPAN INFRASTRUCTURE SEMINAR · west lunga at west lunga river (2.5mw) kasempa chikata...

Zambia: Africa’s New Frontier for Investments and Profits

SADC – JAPAN INFRASTRUCTURE SEMINAR

March , 2012

“Investment Opportunities in Zambia’s Infrastructure”

A presentation of the Zambia Development Agency

Presentation Outline

Why Zambia? Positioning

Investment Opportunities

Investment Framework

Conclusion

Presentation Outline

Why Zambia? Positioning

Investment Opportunities

Investment Framework

Conclusion

Area: 752,614 sq kmCommon borders with 8 (including Mozambique)Population: 13 mil (2010 census)Independence: 1964Religion: Over 90% Christian, Muslim 4%, 1% indigenous

Other market opportunities throughagreements / membership to:

EU through the EBA initiative

USA through AGOA Market Initiative

Canadian Market Access Initiatives

Chinese Market Access Initiative

Japanese Market Access initiative

Zambia in the Region and Beyond



D RCONGO

MOZAMBIQUE

ZIMBABWE

NAKONDE

KASAMA ISOKA

CHINSALI

MPOROKOSO

LUWINGU

MPIKA

PENSULO

SERENJE

CHIPATA

CHIRUNDU

LEOPARDS HILL

KARIBA SOUTH

MUSONDA FALLS(5MW)

LUSIWASI(12MW)

MULUNGUSHI(20MW)

MSORO

LUNDAZI

MFUE

AZELELUNSEMFWA(18MW)

CHISHIMBA FALLS

LUNZUA(0.75MW)

MBALA

SAMFYA

KASHIKISHI

PETAUKE

MOMBUTUTA

CHIENGI

To Sumbuwanga

KALUNGWISHI RIVER

MPULUNGU

NAMIBIABOTSWANA

ANGOLA

KALABO

MONGU

SENANGA

SESHEKE

SOLWEZI

ITEZHI – TEZHI(120MW)

VICTORIAFALLS

(108MW)

MUZUMA

MICHELO

LUANO

KITWE

MAPOSA

KANSUSWA

KABWE

KAPIRIMPOSHI

MPONGWE

LUSAKA WEST

KAFUE WEST KAFUE TOWN KAFUE LOWER(750MW)KAFUE GORGE

900MW(1080MW)KARIBA NORTH(600MW(750MW)

LAKE KARIBA

MAZABUKA

MUMBWA

MANSA

MAMBILIMA

WEST LUNGAat West Lunga River(2.5MW)

KASEMPA CHIKATA FALLS

(3.5MW)

MUFUMBWE

LUKULUKAOMA

220kV

22o East

33.5o East

8o

18oKATIMAMULILO

ZAMBEZI

LUANGWA

132kV

88kV

66kV

330kV

EXISTING POWER¥SUBSTATIONSAND POWER LINES

PROPOSED POWER¥SUBSTATIONSAND POWER LINES

330kV

220kV

132kV

88kV

66kV

HYDRO POWERSTATION

SUBSTATION

DIESEL STATION

PROPOSEDHYDROPOWERSTATION

PROPOSED SUBSTATION

PROPOSEDDIESEL STATION

CHONGWE

CHAVUMA

KABOMPO

MWINILUNGA

KANSANSHI

LUMWANA(Mine)

KAPUTA

NCHELENGE

CHAMA

KUNDABWIKA (101MW)

KABWELUME(62MW)

KAWAMBWA TEA

MBERESHI

LUSIWASIEXTENSION(40MW)

KARIBA NORTHEXTENSION(600MW(750MW)

BATOKA GORGE(800MW)

DEVILS GORGE(800MW)

BWANA MKUBWA

ROMA

COV.

NAMPUNDWE

MAAMBAKATIMAMULILO

KABOMPO Gorge(34MW)

LuangwaBridge

Mkushi

MkushiFarm Block

Mkushi Central

KawambwaTown

Chambasitu

SHANGOMBO

MUYOMBE

ZESCO GRID (66 – 330kV)


“Energy Opportunities would be Underestimated”

Potential Capacity to 6,000 Mw

Abundant investment Opportunities in view of•Huge power deficit in Southern Africa•Vast water resources and Coal reserves

Hydro projects –Private Sector, being considered

Zambia Tanzania Interconnector

Current Installed Cap. 1,970 Mw, Peak 1,600 Mw

East Africa short of power, South Africa running out of Excess Power Growth in demand 150MW – 200 MW

Zambia Namibia Interconnector

Zambia DRC Interconnector

ENERGY INVESTMENT OPPORTUNITIES

• Biofuels Areas - Growing of energy crops, Setting up of Refinery to process the crops and Storage facilities

• Renewable energy opportunities include biomass gasification, biogas, and wind energy for water pumping.

• Manufacture of Solar Components – such as batteries, bulbs, regulators


1,600 KM ZAMBIA-TANZANIA-KENYA POWER INTER-CONNECTOR PROJECT•Construction of a 700 kilometres double circuit 440kV transmission line originating from Zambia and ending in Tanzania•Reinforcement of the Tanzania transmission system by construction a single circuit 400kV line from Mbeya to Arusha •Construction of a 260 kilometres 4000kV transmission line between Tanzania and Kenya.


MUMBOTUTA AND MAMBILIMA HYDROELECTRIC PROJECT (850-1200MW)

Scope of project could include:•301MW hydropower plant•Concrete faced rock fill dam •Surface “open-pit type powerhouse •Development of high voltage transmission line which will include transmission line to connect to the national grid and construction of a Copperbelt to Luapula transmission line



• Biofuels Areas - Growing of energy crops, Setting up of Refinery to process the crops and Storage facilities

• Renewable energy opportunities include biomass gasification, biogas, and wind energy for water pumping.

• Manufacture of Solar Components – such as batteries, bulbs, regulators


Inter-mine railway network covers a total of 199Km:Ndola to Chingola 134Km Luano to Chililabombwe 31Km Spur to Mufulira 34Km

Total projected investment US300 million

“Opportunities in Rail Infrastructure”


Trunk roads comprising (i) Livingstone – Kapiri Mposhi, 678km (ii) Kapiri Mposhi –Nakonde, 808km and (iii) Kapiri Mposhi, 746km

Total projected investment USD2 billion

“Opportunities in Road Infrastructure”


Key Taxes

TAXES GENERAL MINING AGRIC ZDA INCENTIVES

Corporate Tax 35% 30% 10%

0% - for 5years 50% of Tax – year 6-875% of tax – year 9-10

Full tax afterwards

Withholding Tax 15 % ( Except for mining – O%)

Value Added Tax 16%Option to deferment on capital

equipment and machinery

Import Duties

0% on capital goods, machinery and equipment for 5 years

Capital goods and Raw material

0-5%

Intermediate Goods 15%

Finished goods 25%

Dividends Income tax rates applicable 0% for 5 years

A-to-Z information on the Zambian market

Guidance through the entire investment process and aftercare

Provision of matching Zambiapartners and building contact

networks

Global export market information & product development

SME & business development services

Zambia Development AgencyPrivatisation House, Nasser RD

P.O. Box 30819, LUSAKA. ZAMBIA

Tel: +260 211 220177Fax: +260 211 225270

www.zda.org.zm

SADC – JAPAN INFRASTRUCTURE SEMINAR · west lunga at west lunga river (2.5mw) kasempa chikata...

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