Bank of China links Zambian public and private entities to potential investors for industrial growth 

Thu, 04 May 2017 10:41:38 +0000

By SHEILA SAKUPWANYA

PARTNERSHIPS of local and foreign investors are important because they facilitate the growth of domestic companies and bring advanced technology as well as expertise needed for the production of quality goods and services.

They can also help a country to establish viable and productive companies capable of contributing to the country’s gross domestic product, revenue base as well as job creation that would improve people’s standard of living.

In order to achieve this government in conjunction with other stakeholders has to create a conducive environment for the existence of such relations and make deliberate efforts needed to link our local entrepreneurs to the foreign ones so that sustainable economic partnerships could be forged.

Recently, the Bank of China (BoC) Zambia Limited, invited the Zambian public and private companies to the 11th China Henan Industrial and Commercial Enterprises Cross-Border Investment and Trade Fair held in Zhengzhou under the theme “Walking to Africa, Zambian Introduction and Marketing”.

The purpose of the trade fair was to enable Zambian companies establish partnerships not only with the Chinese investors but also those from different parts of the world who operated in the same sector for the formation of productive industries that could positively contribute to the economic development of the country.

The 2017 trade fair focused on modern agriculture, equipment manufacturing, bio-pharmaceuticals, information technology, energy saving and environmental protection, and tourism.

Speaking at the official opening of the trade fair, Zambian Ambassador to the People’s Republic China Winnie Chibesakunda said the event was important to the Zambian government as it reaffirms its mandate to tap into the Chinese industrial over capacity for the country’s economic development.

Ms. Chibesakunda said once partnerships were formed, the government and the people of Zambia would be assured of the establishment of sustainable and productive industries that would create jobs and contribute to the economic development of the country.

“We have also started talks with the provincial leadership on the Chinese side and they are enthusiastic to partner with us in various economic activities. Our goal is to ensure that each province in Zambia has one viable industry that would employ the local people because development has to trickle down to the indigenous people,” she said.

Ambassador Chibesakunda disclosed that government had submitted a number of economic projects to the Chinese government expected to be funded under the US$ 60 million Forum on China – Africa Cooperation (FoCAC) this year.

She said her government was also encouraging the Chinese partners to generate power for use in these provincial industries considering the power challenges the country was currently facing.

Meanwhile, Zambia Development Agency director of investments Matongo Matamwandi presented a paper highlighting the various investment opportunities that were a priority to the Zambian government such as the infrastructure, energy, tourism, manufacturing, and agriculture sectors.

Mr Mwatamwandi said that the demand for electricity in 2017 in Zambia was expected to exceed 2000MW domestically and 80,000MW regionally while the demand for petroleum would exceed 52 million litres per month.

He told the investors that the huge energy deficit that Zambia had meant that the market was readily available for the investors to flourish in the business.

Mr Matamwandi called on investors to invest in the various sectors of the economy and assured them of huge market opportunities domestically and regionally.

“Zambia become the 17th country to sign the COMESA-EAC-SADC Tripartite Free Trade Area Agreement (TFTA) in June 2016  which implies that there is an integrated market of 26 countries with a combined population of 632 million people which is 57% of Africa’s population for an investor in the country,” he said.

He said ZDA would facilitate the exportation of surplus energy to the regional markets like SADC, COMESA and the EAC for the investors.

Mr Mwatamwandi further disclosed that Zambia had vast hectares of land both in the urban and rural areas that could be utilized for agriculture and manufacturing industries.

“Zambia has a total land area of about 752, 614 km2, of which 58% is arable land but only 14% is currently being utilized. It also has farm blocks with 100,000 hectares in the ten provinces with the total irrigation potential of 2.7 million hectares yet only 6% is currently being utilized,” Mr Matamwandi said.

He said the investment potential in Zambia was supported by abundant raw materials, qualified labor force, abundant land, water and rich minerals.

“There are also investment opportunities in the agro processing of edible oils, food processing, and mineral processing of copper, cobalt, gemstones as well as light engineering of agriculture equipment,” Mr Matamwandi said.

Speaking at the same function, Bank of China (BoC) President Chen Siqing said his bank was devoted to pushing the development of international trade through foreign direct investments.

Mr Chen said BoC had helped enterprises break geography, language, cultural estrangements, achieve market connections as well as transfer technology, talent and capital contacts across the globe.

“Since 2013 Bank of China has been the first one to provide cross border matching  service  by building database, customer matching, internet meeting, face to face meeting, onsite visitation and financial services through it six step procedure.” Mr Chen said.

He said BOC had so far held 29 cross border trade fairs attracting about 20,000 enterprises from over 70 countries and regions across the five continents.

“Bank of China has had 29 cross border affairs attracting 20,000 enterprises across the globe so as to help companies achieve trade, investment and bring technology through cross border cooperation and many companies have benefited from it,” said Mr Chen.

He pledged the banks support in fulfilling perfection in cross border matching with a view to sharing the benefits of globalization.

“In future Bank of China will continuously use the over capacity advantage to serve overseas to help fulfill perfection of cross  border matching platform and play its important role of bridging enterprises together and support more companies enter into the global market, and support the entry of more foreign companies in Henan Province to share the benefits of globalization.

Mr Chen observed that the world economy was confronted with slow recovery yet many enterprises had advanced technologies and management experience although they were limited by their sluggish domestic market conditions, higher labor  costs despite wanting to enter Chinese markets.

“China has become the engine of the world economy and the demand of Chinese companies willing to enter into the global market and be part of the world industrial chain, and value chain was growing,” he said.

And Henan Province Governor Chen Runer said the trade fair would promote industrial development through technology transfer and business opportunities.

“The trade fair will help our business enterprises find business partners globally, develop international markets, technological transfer, promote industry transformation and upgrade,” said Mr Chen.

He noted that the trade fair would also help enterprises worldwide to carry out cross border technology cooperation and get integrated into the worldwide value chain.

“Henan is the main birthplace of Chinese nation and Huaxia Civilization. Henan has been the country’s political, economic and cultural center for up to 3,000 years and a total of more than 20 dynasties established their capitals here.

Henan people has constituted over a half of celebrities in China in past years,” he said.

The Henan Industrial and Commercial Enterprise cross border investment and trade fair is an annual event sponsored by the Bank of China, the people’s government of Henan province, and the Ministry of Industry and Information Technology of China.

The Henan provincial leadership brings investors from across the world every year in that forum to explore investment opportunities through business to business linkages.

The 2017 Henan trade fair attracted more than 600 Chinese enterprises and more than 200 overseas companies from 20 countries in Europe, America, Australia, South East Asia and Africa.

Zambia was represented by the Zambia Development Agency, Ministry of Commerce Trade and Industry, Zambia Consolidated Copper Mines, Nitrogen Chemicals of Zambia, Medical Stores Limited, Zambia Forestry and Forest Industries Corporation, Zambia Chamber of Commerce and Industry, Zambia China Business Association as well as other public and private companies.