A British based company, Chayton Capital says it has invested $ 50 Million (US Dollars) in Zambia’s agriculture infrastructure development and transport.
Company representative, Neil Crowder revealed this in London today during the UK-Zambia Investment Forum attended by Vice-President George Kunda.
He said another $200 Million will be pumped in the Zambian economy in the near future depending on the performance of the company in the country.
Mr Crowder said his company has chosen Zambia for investment because of its high agriculture potential, such as favourable climate, abundant water resources and also its geographical comparative advantage for export into the Democratic Republic of Congo (DRC).
He also said the Zambian government has made agriculture development a priority as evidenced by the reserving of 1 million hectares of land for cultivation and investment.
Mr Crowder further said his company has also been attracted by the country’s good governance record, political stability and property rights, among others.He observed that among the incentives further attracting investment is the reduced duty by the Zambian government on imports relating to agricultural machinery and the farming dividends and profits tax-exempt for the first 5 years of operation.
Others are the 100 per cent tax allowance for outlay on land development, conservation and wear and tear allowance of 50 per cent for the first two years on machinery employed for agriculture.
Mr Crowder further said the 50 per cent depreciation rate, allowing machinery to be written off also contributed to the company’s financial investment in the Zambian economy.
The one-day Forum, whose theme was “Enhancing Economic Growth through Competitiveness, Diversification and Infrastructure Development” was being attended by a high-level Zambian delegation that included Commerce, Trade and Industry Minister, Felix Mutati, His Works and Supply counterpart, Mike Mulongoti, Bank of Zambia Governor, Caleb Fundanga, Finance Bank Chairman Rajan Mahtani, among others.
On the British side were over 100 carefully selected delegates representing UK and European businesses.
ZANIS
In which companies has this same company invested in? I hope it is not just fantacy
Interesting Theres a Zambian Name among the company’s main contacts .
Well, I hope this is true. It will be a shame if nothing comes out of this. Remember the Iranian delegation in 2003 or 2004. George Mpombo then Energy minister, dined with those chaps. they promised Zambia cheap crude oil, set up businesses, build schools and clinics etc. Where is all that? No where. That was where I lost respect for Mpombo. He behaved like a nincompoop.
# 2 well observed, there is a Mubita Lubinda on the management of this company. He is most likely a front for someone.. i dont trust such companies
iyo company yaba kwi?
I am expecting socialist MrK to come and comment on this story. I will check back after maybe 24 hours.
$ 50 Million is a huge sum, lets hope it brings about visible, positive development.
Sounds interesting. They appear to be an asset management firm so it remains to be seen where they choose to invest. I won’t be suprised if they invest in companies that have been left to languish because their viability has been in doubt. One of my bets would be Nitrogen Chemicals.
These tax incentives are too generous IMHO. But then again desperate times call for desperate measures and it seems that’s the only way to get anyone interested.
The only good i can see coming out of this is the creation of employment and a bit of modern equipment. These investors will obviously expect a return on that dosh pretty quickly.
I am of the understanding (courtesy of LT) that the DRC recently signed a significant land lease deal with disillussioned Afrikaner farmers. So they won’t be importing much produce soon..!
# 6 Mr Capitalist Why are u so bothered about what someone else thinks. Tell us what YOU think. Don’t worry about others.
what they will reap will hundred times over,these companies are known to squeeze water out of a stone in the desert,why do you think they are interested in Zambia?50m is a lot of money considering we are regarded as on of the poorest nations on earth,we should take such investments with a pinch of salt.The government should encourage locals to put up such projects and seek funding so we locals can run them.We will be seeing agric products being exported while we starve,the west’s pouplation is booming and they need food so sleepy people will either be kicked out from their lands or just killed just watch….
am a Ugandan but really appreciates Zambia’s steady economic recovery
Thanks , I’ve just been looking for info about this subject for a while and yours is the greatest I have discovered till now. However, what about the bottom line? Are you positive in regards to the supply?|What i do not understood is in reality how you are no longer really a lot more smartly-favored than you might be now. You’re very intelligent.