The change of the Zambian government in August last year bodes well for the country which is gradually creating a friendlier business environment.According to Duncan Bonnett, a partner at Africa House, there has been a remarkable turnaround in the country since the change of leadership. “Not just in terms of the government’s attitude towards business, but also in terms of the thinking of business and investors.”He said many companies that had no intention of even continuing operations in the country were now talking about expansion, and investment commitments were being made.One example was First Quantum which announced it would invest $1.25 billion to extend the life of its Kansanshi copper mine in Zambia. “This provides a much-needed boost for Zambia, but it also speaks directly to the renewed interest and belief in the country,” Bonnett told Freight News.According to Jonathan Lewis, managing director of NAC2000, the new government has heralded a complete economic transformation for the country. “We have renewed investor confidence from a local and foreign perspective, especially in the mining sector. This is critically important for business as this is where most of our import volumes come from. There is also investment into the agricultural sector which in turn will boost our export volumes. We are extremely optimistic about the developments we are seeing.”He said from a general perspective business morale was higher than it had been in years and the outlook was quite bullish. “The political will and leadership have made a big difference and we are very positive about the developments so far.”Bonnett said while the country was not without challenges, it had introduced several new policies that made it far more business-friendly. “The new government has taken a pro-business stance and is starting to unlock the value that comes with creating an easier business environment. It is not a quick process and it will take time, but Zambia is making inroads in dealing with some of the big challenges it has faced.”The government has undertaken to commit to economic reforms, rework debt with its creditors and improve overall transparency in the country.According to Bonnett, expanding agriculture will go a long way to improving the Zambian economy.“It has huge amounts of land available but it needs the infrastructure to be able to develop this sector. Investments in this regard will go a long way.”Expanding mining is another priority,” he said. “The new government has started to address some of the issues and is implementing new reforms and policies to make it easier to explore Zambia. Many companies have opted away from Zambia and are rather exploring in the DRC where the regulatory regime and the costs of exploring have been better.”
