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Doing Business in Zambia: Opportunities and Challenges for German Entrepreneurs
Durban – Johannesburg, September 2016
Content
A.Zambia Office of the Southern African German
Chamber of Commerce and Industry
B. Economic Development
C.Business Opportunities and Challenges
D.Outlook and Next Steps
Algeria|Angola|Argentina|Australia|Austria|Azerbaijan|Baltic States|Belarus|Belgium|
Bolivia|Bosnia-Herzegovina|Brazil|Bulgaria|Canada|Central America|Central
Asia|Chile|China|Columbia|Costa Rica|Croatia|Czech Republic|Denmark|
Dominican Republic|Ecuador|Egypt|El Salvador|Estonia|Finland|France
Ghana|Greece|Guatemala|Honduras|Hongkong|Hungary|Iceland|India|Indonesia
Iran|Iraq|Ireland|Israel|Italy|Japan|Kazakhstan|Kenya|Korea|Latvia|
Lithuania|Luxemburg|Macedonia|Malaysia|Mexiko|Morocco|Myanmar|Netherlands|
New Zealand|Nicaragua|Nigeria|Norway|Oman|Panama|Paraguay|Peru|
Philippines|Poland|Portugal|Qatar|Romania|Russia|Saudi-Arabia|Serbia|
Singapore|Slovakia|Slovenia|Southern Africa|Spain|Sweden|Switzerland|
Taiwan|Thailand|Tunisia|Turkey|Ukraine|United Arab Emirates|
United Kingdom|Uruguay|USA|Venezuela|Vietnam I Zambia
Support worldwide - 130 locations in 90 countries
Zambia Office:
Representation I Trade Promotion I Networking
Services NetworkingTrade Promotion
The three pillars of the Chamber
Service provider to companies
Service brand: DEinternational
e.g. Market Studies, Events,
Workshops, etc.
Official representation of
German industry and commerce
Promote interests of German
companies in Southern Africa
Promote, inform about the
German economy
Member Organisation
Collective strength of the members
Over 600 companies are part of our
network
+ link to Development Corperation
Zambia – Macroeconomic Data
Comments GDP - Composition by Sector
Source: GTaI 2015
- GDP: 27,02 Mrd. USD (2015)
- Growth Rates 2005 – 2015: average 6,6 %
- Current Growth: 3,6%
- Growth Projection 2017 – 2018:
4,2 % - 4,6% (EUI)
- Netdebt 2015: 57%
- Inflation (YoY): 21,1 %
- Currency: Kwacha (1 EUR = 11,53 ZMW)
21%
33%
46%
0%
Agriculture Industry Service
SWOT Analysis of Zambia
Above average GDP Growth
Relatively political stable
Good Road Network
Strengths
Land Locked Country far from a harbour
Energy shortages: Problems for energy
intensive industries
Weakness in Administration and Legal
System
Weaknesses
Opportunities
Commodities
Infrastructure Investments
Rising consumption through a growing middle class
Subsidies from development banks
Rising demand for electricity provides
opportunities for renewable energy
Greater demand for import of machinery and
equipment
Threats
Source: GTaI
Economy is to reliant on copper
Energy Shortages
Chicken and Beer Problem
Germany in Zambia
International Treaties Private Sector
25 German Companies in Zambia
Amatheon Agri only FDI
BayWa AG, Munich & Barloworld
Limited, Johannesburg recently
formed a Joint Venture in
Zambia
BASF & Bayer supply Agrisector
Many German Companies operate
out of South Africa: e.g. Endress
& Hauser / Siemens / Bauer
Development Cooperation since 50+ years
• 1974 bilateral Investment
Protection Treaty
• 1975 bilateral Doubetaxation
Treaty
Energy
Zambia waiting for Cost Reflective Energy
Prices – 5,64 vs 11 US-D Cents per kWh
Water Power Companies are Waiting in
Line to realise Projects funded by
Development Banks (KfW/AfDB/EIB)
Huge Potenial for Solar Energy in On-and-
off-Grid Sector: Tenders of ZESCO and
CEC for Solar Power
KfW to support Renewables Sector with
Get-Fit Mechanism
Point of Contact
- Renewables Made in Germany
- KFW Get-Fit Program
- Scalling Up Solar – Worldbank
Agriculture
Vast Agricultural Potential – 13 mio.
Hectar can still be Explored
40 % of Fresh Water Reserves in Southern
Africa
A Number of International Agribusinesses
Already Active in Zambia
700 Commercial Farmers Already active in
Zambia
German Exporters of Agricultural
Equipment can profit of the
mechanisation of the Zambian Agriculture
Point of Contact
• Agricultural Knowledge Training
Center Zambia
• German Pavillion @ AgriTech
Expo
Manufacturing: Food-Processing
Relatively Broad Developed Food
Processing Industry
70 % of the 300 Members of the Zambian
Manufactures Association are into Food
Processing
Power Cuts and Supply Chain Deficits are
Threats to Manufacturing Industry
Push in Modernization can be offered to
through Solutions in Energy Efficiency and
Supply Chain Management
Chicken and Beer Problem
Point of Contact
• Zambian Association of
Manufactures (ZAM)
• Zambian Nationals Farmers
Union (ZNFU)
Why Zambia?
What´s next?
• IMF Package will Bring New
Impulses and Opportunities
• Development Bank Investment
on the Rise
• Busienss Opportunities in
numerous Sectors
• Easy Access via South Africa
• Good network = Good results
German-Zamian Business Forum 2017
Johannes Kurt
Representative - Zambia Office
Tel. +260974252091
E-Mail: [email protected]
Contact person