UNCTAD and the Japan Bank for International Cooperation (JBIC) have presented the Vice President of Zambia, Rupiah Bandah, with a 10-point action plan -- called a Blue Book -- to help the country improve its performance in attracting foreign investment.
The Blue Book action plan, presented on 21 March in a ceremony at the Hotel Taj Padmodzi, recommends steps for developing the effectiveness of the newly formed Zambia Development Agency, for reviewing the licencing fees for the country´s "international voice gateway," and for setting up a programme to encourage foreign investors to make greater use of Zambian suppliers.
All 10 measures in the book are designed to be implemented within 12 to 18 months, at little cost to the Government. Taken together, they should help Zambia improve its investment climate, attract more foreign direct investment (FDI), open up opportunities for Zambians, and benefit the national economy.
UNCTAD has announced plans to support four of the measures. These include the organization of an investor forum for Indian pharmaceutical and information and communication technology (ICT) investors, and the provision of training on negotiating bilateral investment treaties. UNCTAD´s support will be financed in part by IrishAid. One of three other measures already being implemented by the Government -- setting up an international trade commission -- has also received UNCTAD assistance.
The Blue Book of Zambia was produced at the request of the Government to support its aim of creating "a vibrant private sector that would be exposed to competitive best practices at the international level". The book complements and supports existing government programmes, and the Government and investors were consulted during the research and drafting stages. The Government has endorsed all of its recommendations.
At the ceremony, Vice President Banda thanked UNCTAD and JBIC for the Blue Book and announced that his Government had committed itself to supporting its outcome and taking ownership of its proposals. Highlighting the importance of the Blue Book´s proposals, he noted:
"It is my belief that the economic benefits of FDI will not be fully realized until foreign investors are fully integrated into our economy and can open new opportunities for Zambian entrepreneurs."
Khalil Hamdani, Director of UNCTAD´s Investment Division, said of the new publication:
"Promoting investment, both domestic and foreign, is key to Zambia´s objective of creating a vibrant private sector. FDI can bring much-needed capital, technology, management techniques, knowledge of foreign markets and new organizational systems. In whichever size or form, from small and innovative software development to world-class manufacturing, it can add vigour to Zambia´s private sector, stimulate local suppliers and help nurture a future generation of Zambian entrepreneurs."
The new Blue Book is the fifth produced by UNCTAD and the JBIC for an African country or region. Previous books were developed for three East African countries (Kenya, Tanzania and Uganda) and Ghana. The incremental nature of the recommendations made have ensured a high rate of implementation in these countries.
The Zambian Blue Book´s 10-point action plan follows.
- Ratify outstanding Bilateral Investment Treaties (BIT) and negotiate new ones
- Set up a Zambia Development Agency
- Train government institutions dealing with investors in client orientation
- Establish a Zambia International Trade Commission
- Promote private sector participation in the operation of the international voice gateway
- Install a computerized investor tracking system
- Organize an investment forum for Asian pharmaceutical companies
- Establish a one-stop border post in Chirundu, Zambia
- Negotiate new double taxation treaties
- Establish a pilot business linkages project in cooperation with five transnational corporations
