The Zambian government has assured Japanese investors that it will not reposes any foreign investment taken into the country, but will support every level of business to boost the country’s economy.
Commerce, Trade and Industry minister, Felix Mutati assured the Japanese business community that the Zambian government has put in place measures to protect foreign investment coming into the country through market support.
Mr. Mutati said through the Tokyo International Conference on African Development, TICAD 1V, Zambia will formulate an instrument that will support investment and minimize the perceived risks of coming into Zambia or Africa.
Speaking when he addressed the Japanese business community in Tokyo today, Mr Mutati added that Zambia had formulated some fiscal incentives such as tax corporate, customs suspension,and capital allowances to attract investors to Zambia.
He cited other non fiscal incentives as being stability measures and investment facilitation by Zambia Development Agency.
Mr. Mutati, however, called on investors and the business community in Japan to shift their support from development assistance to development of infrastructure.
He urged the investors to go beyond the supply of equipment and raise their involvement in Zambia and Africa in general.
Mr. Mutati observed that despite Japan being a strong country economically, its presence in terms of investment was small in Zambia.
Mr. Muati told the gathering that Zambia was rich in natural resources and challenged them to come to Zambia and explore investment opportunities in mining, tourism, energy and agriculture.
“As a country we want to move on and develop, but we are restrained because of lack of infrastructure, hence the need to expand the rail system, roads and routes to airports” said Mr. Mutati.
He cited other areas of investment as mobile service providers, soft ware, internet, manufacturing, vehicle assembling, consumer goods and agro processing.
In mining, Mr. Mutati called for investment in exploration and development of new mineral resources, mineral processing and down stream processing of minerals, especially iron and steel.
Meanwhile, Economic Advisor to the President, Dr Situmbeko Musokotwane assured the Japanese business community that Zambia‘s strongest asset was peace and stability.
Dr. Musokotwane explained that investors were safe in Zambia as the country has known no internal or external conflicts for more than 40 years.
He added that Zambia’s other strongest point was the GDP growth rate which has averaged over five percent in the past six years. He also explained that Zambia’s external debt has been cut to less than $ 1 billion from more than $ 7 billion.
Dr Musokotwane further said export earnings from the traditional copper exports and non copper exports have quadrupled since 2002.
On government policies, Dr Musokotwane said government has formulated more investor friendly policies such as the equity ownership which allows 100 percent foreign ownership for all promoted investment sectors.
He cited another policy as the liberal forex regime where investors are free to make profits and decide to repatriate capital or profits.
And Executive Director for Japan Oil, Gas and Metals National Corporation, JOGMEC, Hisamitsu Moriwaki said JOGMEC recognizes Zambia as one of the most promising countries with various minerals.
He said Zambia is one of the important resource countries which have high potential of various mineral resources.
He said JOGMEC would want overseas partners for the joint venture exploration project in order to facilitate mining investment from Japan to African countries.
[ZANIS]