Tokyo, 2nd August 2024— Minister of Commerce, Trade and Industry Hon. Chipoka Mulenga has called on the Japanese business community to consider Zambia as an investment destination of choice for a vehicle and vehicle parts assembly and manufacturing plant.
Hon. Mulenga said the market is readily available not only locally but at regional level through SADC, COMESA and the wider continent.
He said this during the Japan-Zambia investment promotion webinar marking the 60th anniversary of the establishment of diplomatic relations.
The Minister said the task of transforming the Zambian economy remains Government’s top priority and acknowledged the important role that collaborations with strategic partners such as Japan play in supporting the agenda.
He explained that the Government’s current policy direction is to accelerate the creation of a diversified and resilient economy driven by value addition to the abundantly available raw materials.
“The country is endowed with abundant raw materials such as copper, nickel, manganese and therefore opportunities abound in adding value to our raw materials to produce finished products for the domestic and international markets. Opportunities also available in the assembly of light industrial equipment, processing of timber into furniture, processing of hides and skins into leather and manufacture of textile and garments,” he added.
Hon. Mulenga said other sectors open for investment and trade include agriculture and agro processing, mining and mineral processing including the Electric Vehicle Battery value chain and manufacturing.
He noted that to ensure value addition becomes a reality, Government has put in place fiscal and non-fiscal incentives that promote value adding activities with special Economic Zones being promoted as major drivers to attracting quality investment and accelerating the creation of a diversified export market.
“To ensure that investments are spread throughout the country including far flung areas, we have also provided fiscal incentives for investments made in rural areas,” he added.
Hon. Mulenga encouraged private investment in the sector to improve the current energy mix, particularly, in light of the energy deficit that the country is facing owing to dependence on hydropower in order for manufacturing activities to be supported by a stable supply of energy.
He urged investors from Japan to play a part in the ambitious developmental agenda that and invest in Zambia, in all sectors.
The Minister further encouraged the creation of joint ventures and partnerships between the Japanese and Zambian business community.
Zambia’s Ambassador to Japan Dr. Tobias Mulimbika underscored the importance of the Japanese Government’s resolve to revise its mineral resources diplomacy, identifying Zambia as a strategic partner among the global South.
Ambassador Mulimbika said the collaboration will consolidate bilateral relations especially in the area of critical minerals to support Japan’s decarbonisation transition.
Zambia Development Agency (ZDA) Director General Mr. Albert Halwampa revealed that Zambia has investment opportunities in the Electric Vehicle and market growth.
Mr. Halwampa said Zambia’s active vehicle population is currently about 700,000 units with only around 100 electric vehicles which makes Zambia an excellent opportunity to become an EV battery and assembly hub.
He said there is an opportunity to leverage on the MoU signed between Zambia and DRC on their critical minerals to set up Africa’s biggest EV battery industry.
The investment promotion webinar was organized by the United Nations Industrial Development Organization (UNIDO), the Embassy of the Republic of Zambia in Tokyo and the Embassy of Japan in Zambia.
