ZAMBIA HAS become a new African hot spot for SA exports, according to deputy minister of trade and industry, Dr Rob Davies. He told the Zambian Business Opportunities and Investment Conference recently that increased exports in the first quarter had seen Zambia overtake both Zimbabwe and Mozambique, and become SA’s largest export market in the Southern African Development Community (SADC) - excluding the four Southern African Customs Union (Sacu) partners – and 12th largest in the world. But there’s a glaring trade imbalance between the two countries – with Zambia only SA’s 44th largest import source. This highlighted the need to enhance the bilateral relationship between the two countries – with the promotion of investment a way to overcome the trade imbalance, said Davies. “More significantly, investments can enhance the productive capacity of countries of destination,” he said, “and thereby strengthen the capacity to export.” Since 1994 SA has emerged as one of the largest sources of foreign investment in the African continent, with investments in Zambia, for example, jumping from R21.76-million in 2004 to R63.93-m in 2005. While foreign investment is largely based on decisions taken by the private sector, Davies assured the conference that the government was ready to play a facilitating role. It has at its disposal various agencies such as the Industrial Development Corporation (IDC) and the Export Credit Agency (ECA) that provide services for strategic investments in neighbouring states. The 14 SADC member states are Angola, Botswana, the Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, SA, Swaziland, Tanzania, Zambia and Zimbabwe. The five Sacu members are: SA, Botswana, Lesotho, Namibia and Swaziland.
