1. Doing Business in Zambia:
Opportunities and Challenges
for German Entrepreneurs
Durban – Johannesburg, September 2016

2. 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

3. A. Zambia Office of the
Southern African-German
Chamber of Commerce and
Industry

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United Kingdom|Uruguay|USA|Venezuela|Vietnam I Zambia
Support worldwide - 130 locations in 90 countries

5. Zambia Office:
Representation I Trade Promotion I Networking
Services Networking
Trade 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

6. B. Zambia: Economic
Development & Business
Opportunities

7. 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

8. 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

9. 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

10. C. Zambia: Opportunities and Challenges

11. Energy
Business Opportunities in Zambia
Agribusiness
Manufacturing: Food Processing

12. 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

13. 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

14. 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)

15. 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

16. Thank you for your attention!

17. Johannes Kurt
Representative - Zambia Office
Tel. +260974252091
E-Mail: lusaka@germanchamber.co.za
Contact person