Multi facility economic zones start signing up tenants

Zambia’s multi facility economic zones – which are designed to attract investment into the country – are starting to sign up tenants. Introduced to Zambia in 2005 by the Japanese Government through Japan International Corporation Agency (Jica), the MFEZs are special industrial zones for both export-oriented and domestic-oriented industries. Infrastructure within the zones is designed to minimise logistics costs. The zones are expected to act as catalysts for industrial development in Zambia and contribute to the achievement of Vision 2030, which aims to make Zambia a prosperous middle-income country by that year. In April this year it was announced that 10 Chinese companies had shown interest in investing into the Chambishi Multi-Facility Economic Zone on the Copperbelt. Making the announcement, ministry of commerce, trade and industry permanent secretary Stephen Mwansa said this brought the number of potential investors into the zone to 30, with each investing between US$300 million and US$400 m. Among them is Chinese logistics provider Sintra. The Zambia Development Agency has granted MFEZ status to developments at Chambishi, Lusaka East, Lusaka South, and Lumwana. Industrial parks are being developed in Ndola Roma in order to support manufacturing. A 2100-hectare MFEZ near the airport in Lusaka (Lusaka East) will include a mix of residential, commercial and business facilities. Logistics has been identified as a key sector for the zone due to the geographic advantages offered by the central position of Lusaka in relation to the region. In June this year the first World Health Organisation (WHO)-certified pharmaceutical plant in southern Africa became the first investor in the zone. MFEZ incentives are nondiscriminatory and can be claimed by all eligible foreign and local investors. INSERT $350m The investment of each potential tenant in the Multi-Facility Economic Zones. CAPTION An efficient logistics system supports this semi-formal manufacturing sector in a Lusaka suburb. The doors, windows and burglar bars are made on site by small manufacturers who purchase materials from suppliers whose warehouses are strategically positioned containers. This keeps logistics costs down as the containers take full truckloads of rods and sheeting. Delivery of the final product is handled by the customers, who include builders and retailers.