‘Tourism, agriculture, manufacturing, energy, mining attractive investment areas for Korean companies’

By Publisher Lee Kyung-sik with Business Editor Kim Tae-moon, Reporter Sua Kim

“The Republic of Zambia is an attractive investment destination offering various lucrative investment opportunities in tourism, agriculture, manufacturing, energy and mining,” said Ambassador Wylbur Chisiya Simuusa of Zambia in Seoul at a recent inrterview with The Korea Post media (established in 1985), which now own and operate 3 English and 2 Korean-language news publications.

Ambassador Simuusa then stated that the investment climate in his country is characterized by highly friendly and peaceful stable macroeconomic environment, stable political system, investment guarantees and security, predictable laws and policies, duty free access to regional, and wider Africa and USA markets and unrestricted repatriation of after-tax profits. Zambia has signed double taxation agreements with a number of European, North America, African and Asian countries, said Ambassador Simuusa.
Ambassador Simuusa discussed a wide range of topics with The Korea Post media, which included specific areas of investment for Korean companies, the Head of Government of Zambia, Korean companies actively engaged in economic cooperation and volume of trade with Korea. Details of the interview follow:

Question: Please specify the areas attractive to [prospective Korean investors in Zambia.
Answer: Here are the attractive areas for the Korean companies:

Agriculture: Zambia’s vast expanses of rich undeveloped land with free-flowing and easily accessible water provide extensive potential for agriculture production. With a population of only 15million and large landsides of 752,000 sq.km, coupled with an ideal climate suitable for the production of exportable crops, presents a huge opportunity for investment. It is estimated that only 15% of the arable land is under cultivation. Investors are invited to invest in the production of cut flowers, wheat, cotton, soybeans, tobacco and sugar; poultry; fisheries; leather and leather products; and agro-processing and ranching (livestock). Investment opportunities also exist in agro-processing of tomatoes, cheese, fruits and other farm producer.

Tourism: Attractive Investment opportunities exist in the hospitality (accommodation) sector in form of hotels, lodges, guesthouses and camps at all levels especially in the above tourism priority areas. Over7, 000 heritage and historical sites catalogued in the country remain unexploited and potential for tourism development. Zambia hosts the famous Victoria falls which presents opportunities in tour operations and adventure activities in national parks. Investment opportunities also exist in establishing private game ranches. Water resources offer enormous investment opportunities for water related tourist activities such as white water rafting, canoeing and water skiing.
Mining: Zambia is endowed with various mineral deposits. Copper, cobalt, lead and zinc are the most developed. Zambia has about 6% of the world’s known copper reserves; and is currently one of the largest copper producers in Africa. Other minerals found in Zambia include: gold, nickel, iron and uranium. There are also gemstones such as emeralds, aquamarine, and amethyst. Given the variety of Zambia’s mineral resources, there are immense investment opportunities in the mining sector. These opportunities lie in exploration for new mineral deposits; gemstone cutting and polishing; establishment of new mines; and reclaiming copper from slag tailing dumps.

Manufacturing:
The manufacturing sector offers tremendous investment opportunities in the production of inputs required for the mining sector and infrastructure development. Opportunities exist in the creation of textiles and motor vehicles, motor cycles and bicycles assembly. Leather processing, wood processing, fish processing are yet other investment opportunities. Cement production also presents excellent investment given the regional deficit of the commodity.
Energy:
Zambia’s energy sector is endowed with enormous energy resources potential which include coal, hydropower, woodlands and forests as well as other renewable energy forms such as solar and wind. Zambia has as estimated hydropower capacity of 6,000MW, of which only about 1,948 MW has so far been installed. This represents only 32.5% of the total capacity. Hydroelectric plants account for 92% of the total installed capacity and 99% of the total electricity generated in the country. So far there are only two important inter-connectors to Zimbabwe and the Democratic Republic of Congo (DRC) which are the most important electricity export grids.
Zambia’s economy has been rapidly growing in the past 5 years and is currently experiencing a power deficit. As such, investors are invited to invest in power generation projects. Opportunities for investment exist in electricity generation and transmission projects. In an effort to resolve the power deficit and ensure security and reliability of supply, Zambia seeks more investment power generation, alternative energy sources and upgrading of large and small hydro projects.
Investment opportunities also exist in the exploration and production of petroleum resources; coal exploration and mining; and development of renewable energy sources which are supported by the National Energy Policy.

Q: Nowadays, economic cooperation is very important between the countries. Who are the major Korean companies actively engaged in bilateral economic cooperation? Please introduce them in detail in the order of size and scale of business activities.
A: Zambia and Korea established their diplomatic relations on 4th September 1990. From 1987 through 2015, Korea has granted $6.6 million of official development assistance to Zambia covering public health, aquaculture, capacity building and technical assistance.
Currently, Daewoo E&C was awarded the Kazungula Bridge Project contract for the construction of the Kazungula Bridge across the Zambezi River between Botswana and Zambia. The project commenced in December 2014 at a total cost of about US$234 million, which also includes the construction of border facilities. This is a major project which will greatly enhance trade and co-operation in the whole of Southern Africa Region.
Samsung began its operations in Zambia in October 2010. Due to its positive performance, Zambia has become a regional hub. As a branch, Samsung Zambia oversees operations in Zambia, Zimbabwe, Mozambique, and Malawi. This alone indicates the significance of the Zambian operation/business for the company.
However, trade between Zambia and Korea is still relatively low and there is need for more companies, trade and investment.

Q: What is the present volume of bilateral trade, its outlook in the next 12 months?
A: As of 2015, the trade volume between Zambia and Korea amounted to US$377,781. As indicated from the figures, Zambia is currently a marginal trade partner for Korea. The government and Embassy of Zambia in Korea and co-operating partners are working hard to ensure that the low trade volume that exists between the two nations is corrected and we see the trade volume increasing.

Q: What are your competitive products and/or services attractive to Korea and what are the Korean products and services that your country might wish to note?
A: Some of the things that Korea would find competitive and attractive in Zambia would be:
Very good investment incentives
Strategic market access
Minerals especially Copper, Cobalt, Manganese
Coffee, Mangoes, Avocado
Korea has made an amazing transformation from aid-recipient country to donor country in a mere 50 years. It's worth emphasizing that this development success story has been underpinned by strong investments in science, technology and innovation. Korea's remarkable technological advancements and industrialization has allowed Korea to produce increasingly advanced equipment. One of the main attractions of Zambia from Korea are Knowledge Sharing Programs (KSP) and Technology Transfer.
Attractive products are Motor Vehicles, Machinery, Electronic goods, Energy efficient products like LEDs, solar.

Q: Please introduce your Head of Government in detail, including major achievements. Also, please introduce the Minister of Foreign Affairs and the Minister in charge of economic cooperation with countries like Korea.
A: H.E Edgar Chagwa Lungu (born 11th November 1956) has been the 6th Republican President of Zambia since January 2015. H.E. Edgar Chagwa Lungu was sworn in as President of the Republic of Zambia on 25th January 2015 at the National Heroes Stadium in the capital Lusaka. Under 5th Republican President H.E. Michael Chilufya Sata, H.E. Edgar Chagwa Lungu served as Minister of Justice and Minister of Defense. Following the death of H.E. Michael Chilufya Sata in October 2014, H.E. Edgar Chagwa Lungu was adopted as the candidate for the ruling Patriotic Front(PF) party, for the January 2015 presidential by-election which he won to assume the Republican Presidency.
H.E. Edgar Chagwa Lungu is married to First Lady Mrs. Esther Lungu and has six (6) children.

One of the major achievements of President Lungu and the ruling Patriotic Front(PF) Party has been infrastructure development which has included roads, bridges, schools and hospitals. By building infrastructure, Zambian citizens now have better access to services and facilities. Under the road sector, the Government has been implementing an 8000km road construction programme and other road projects aimed at transforming Zambia into a land-linked country. Apart from creating jobs, the road projects have been instrumental in contributing to the opening up of new business opportunities in the country. In the health and education sectors, there has been unprecedented infrastructure development with the commissioning of several hospitals, clinics, universities and schools.
The others notable achievements have been efforts towards E-Government systems and Good Governance structures.
Zambia has completed development of its next medium-term national development plan named the Seventh National Development Plan (7NDP). Anchored on Zambia’s long-term development strategy, the Vision 2030, Zambia aspires to become a prosperous middle-income country by 2030. The 7th NDP will guide Zambia’s development strides between 2017 and 2021.
The Minister of Foreign Affairs is Hon. Joseph Malanji, MP. The Ministry of Commerce, Trade and Industry (MCTI) is Zambia’s principal government body responsible for administering trade policies as well as regulating activities in the commercial, trade and industrial sectors in order to enhance sector performance and promote sustainable socio-economic development and growth of the economy. Major economic sectors of the Zambian economy include mining, agriculture, tourism, manufacturing and Energy. The Ministry is headed by Hon. Christopher Yaluma.MP

Q: Please add whatever other details that Your Excellency might consider to be important.
A: Historic: Zambia has one of the famous sites of the early stone age settlers in Africa known as “Ingombe Ilede” and other world heritage historic sites. Very significant.

Q: Please introduce your Head of Government in detail, including major achievements. Also, please introduce the Minister of Foreign Affairs and the Minister in charge of economic cooperation with countries like Korea.
A: H.E Edgar Chagwa Lungu (born 11th November 1956) has been the 6th Republican President of Zambia since January 2015. H.E. Edgar Chagwa Lungu was sworn in as President of the Republic of Zambia on 25th January 2015 at the National Heroes Stadium in the capital Lusaka. Under 5th Republican President H.E. Michael Chilufya Sata, H.E. Edgar Chagwa Lungu served as Minister of Justice and Minister of Defense. Following the death of H.E. Michael Chilufya Sata in October 2014, H.E. Edgar Chagwa Lungu was adopted as the candidate for the ruling Patriotic Front(PF) party, for the January 2015 presidential by-election which he won to assume the Republican Presidency.
H.E. Edgar Chagwa Lungu is married to First Lady Mrs. Esther Lungu and has six (6) children.
One of the major achievements of President Lungu and the ruling Patriotic Front(PF) Party has been infrastructure development which has included roads, bridges, schools and hospitals. By building infrastructure, Zambian citizens now have better access to services and facilities. Under the road sector, the Government has been implementing an 8000km road construction programme and other road projects aimed at transforming Zambia into a land-linked country. Apart from creating jobs, the road projects have been instrumental in contributing to the opening up of new business opportunities in the country. In the health and education sectors, there has been unprecedented infrastructure development with the commissioning of several hospitals, clinics, universities and schools.
The others notable achievements have been efforts towards E-Government systems and Good Governance structures.
Zambia has completed development of its next medium-term national development plan named the Seventh National Development Plan (7NDP). Anchored on Zambia’s long-term development strategy, the Vision 2030, Zambia aspires to become a prosperous middle-income country by 2030. The 7th NDP will guide Zambia’s development strides between 2017 and 2021.
The Minister of Foreign Affairs is Hon. Joseph Malanji, MP. The Ministry of Commerce, Trade and Industry (MCTI) is Zambia’s principal government body responsible for administering trade policies as well as regulating activities in the commercial, trade and industrial sectors in order to enhance sector performance and promote sustainable socio-economic development and growth of the economy. Major economic sectors of the Zambian economy include mining, agriculture, tourism, manufacturing and Energy. The Ministry is headed by Hon. Christopher Yaluma.MP

Biography of Ambassador Simuusa:
Date of Birth: 09 September 1962
Marital Status: Married: Two sons
Education: MBA, Edinburgh Business School-UK Heriot Watt University (in progress)
Master in Science-2004
South Dakota Schools of Mines and Technology(SDSMT)
Bachelor in Mineral Science-1986
University of Zambia (UNZA)
Post & Experience: Ambassador of the Republic of Zambia to the Republic of Korea (20 Dec 2017- current)
Member of Parliament (2015-2016)
Member of Parliament/Minister of Agriculture, Livestock & Fisheries (2014-2015)
Member of Parliament/Minister of Foreign Affairs (2013-2014)
Member of Parliament/Minister of Lands, Natural Resources & Environment Protection (2012-2013)
Member of Parliament/Minister of Mines, Natural Resources & Environment Protection (2011-2012)
Member of Parliament -Nchanga Constituency (2007-2011)
CEO & Acting Managing Director / MAAMBA COLLIERIES LTD. (2004-2007)
Mining Engineer & Project Manager/ ZCCM INVESTMENT HOLDINGS PLC CONSULTING (2003-2004)
Senior Mining Engineer& Project Manager/ KONKOLA COPPER MINES LTD. (1992-2003)
Mine Planning Engineer/ ZAMBIA CONSOLIDATED COPPER MINES LTD. (1986-1990)
Participation & Major Activities: Founder, Managing Director, Senior Partner / WCS MINING, LTD. Chingola, Zambia
Chairman/ Chingola Community Roads Repair Initiative
Residence Development Committee (RDC) – Kabundi
Charter & Committee Member -LIONS International Club, Nchanga, Chingola, Zambia
Chairman/Transport Association, Chingola, Zambia
Professional Body Membership
Engineering Institute of Zambia (EIZ)
Society of Mining Engineers (SME)
Zambia Chamber of Commerce and Industry (ZACCI)
LIONS International
Political Involvement: Constituency Chairman–Nchanga Constituency (Heritage Party)
Adopted and contested as Parliamentary Candidate for Nchanga Constituency-
2001 on Heritage Party Ticket. Came second (runners up) to ruling party. Have since changed parties and now working with the Patriotic Front (PF).
November 2007 By Election – Elected Member Of Parliament--Nchanga Constituency PF).
Nominated Member Of the Central Committee (MCC) – Chairman Mines and Mineral Development for Patriotic Front (PF).
Languages: English, Tonga, Bemba, Nyanja
Hobbies: Playing Guitar, Listening to Music, Weight Lifting, Mechanics