Zambia, just like the rest of the world has been making efforts to overcome challenges posed by the global economic meltdown that has left severe economic impact not only on developing countries but the developed economies too.

The mining sector, which has been the major source of Foreign Direct Investment (FDI) in Zambia, suffered the most from the economic crisis as mine owners withdrew or slowed down production due to dwindling copper prices on the global market. A comparison of statistics of pledged investment in 2008 and 2009 indicates a drastic hold back in investment in the mining sector. In 2008 the mining sector accounted for the highest FDI with U$7.4 billion from a total of U$10.4 billion of planned investment. But the figure fell to only U$182 million of investment recorded for the mines from a total of U$1.8 billion in 2009.

With such a scenario in Zambia and the rest of the world, government in collaboration with regional bodies such as the Common Market for Eastern and Southern Africa (COMESA) has come up with reconstructive initiatives and efforts to save the country and the region at large from such economic shocks by marketing other key economic investment opportunities in the region.

Member Countries of COMESA have reaffirmed the significance of sustaining economic growth and development in all member states through joint efforts in liberalising trade and promoting intra-COMESA trade and investment flows to enhance economic cooperation and development. By establishing the COMESA Investment Area, the regional bloc committed to working together in order to enhance COMESA’s attractiveness and competitiveness as a whole to promote direct investment.

Direct investment is an important source of finance for sustaining the desired pace of economic, industrial, infrastructural and technological development, hence the need to attract higher and sustainable level of direct investment flow in COMESA. Thus, member states have agreed to encourage and facilitate private investment flows into COMESA by according fair and equitable treatment of private investors, adopting a programme for the promotion of cross-border investment and maintaining a predictable, transparent, and secure investment climate.

It is against this background that COMESA Regional Investment Agency (RIA) organised a mission to the Gulf region from 10th to 19th December, 2009 with an objective of introducing the COMESA countries as a destination for investment to the business community in the Gulf States. RIA’s mission is to transform COMESA into an internationally competitive investment area, which allows free movement of capital, labour, goods and services across borders of member States and thereby facilitate sustainable growth of private domestic and foreign investments in the region.

The delegation that went on the mission to the Gulf included COMESA Assistant Secretary General, Mr. Stephen Karangizi, officials from member states among them Zambia, Zimbabwe, Uganda, Kenya, Swaziland, and Botswana. Representing Zambia was the Minister of Commerce, Trade and Industry, Mr. Felix Mutati, Zambian Ambassador to Egypt and ZDA Zambia Development Agency (ZDA) officials. The countries visited included Saudi Arabia, Bahrain and United Arab Emiates. The objective of the mission was to introduce the COMESA countries as a destination for investment to the business community in the Gulf States.

The COMESA delegation first visited Saudi Arabia, which has an oil-based economy with strong government controls over major economic activities. It possesses more than 20% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Here meetings were held with the Islamic Development Bank (IDB) and the Jeddah Chamber of Commerce and Industry (JCCI).

Presentations on investment opportunities available in COMESA were made by country representatives. For Zambia, Minister Felix Mutati said that the visit was exploratory and hoped that concrete opportunities could be pursued at a later stage. He highlighted Zambia’s investment climate including political stability, fiscal incentives and other opportunities available. Memorandums of Understanding (MoU) were signed between COMESA and the two institutions. The MoUs established a relationship for mutual cooperation in matters relating to investment in COMESA.

The Islamic Development Bank is a bank that fosters socio-economic development in member countries and Muslim communities in non member countries, individually as well as jointly in accordance with the principals of Shariah law. JCCI is a non-profit organization that looks after the commercial and industrial interests of business owners and has the vision of being the main channel for economic growth and development of the business community in Jeddah.

The second visit was to Bahrain were a series of meetings were held. With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years.

At a meeting with the Bahrain Chamber of Commerce and Industry (BCCI), lessons learnt from the global financial crisis were highlighted. Honourable Mutati presented the objectives of the visit, saying COMESA wanted to underscore the importance it attached to protection of property rights, which was not communicated to the Gulf States and also learnt from Bahrain’s liberal business climate; adding that COMESA wanted to provide an opportunity for diversity in terms of return on investment, which was higher in the COMESA region.

And the BCCI pointed out potential of investment finance was high with Bahrain being the financial centre in the Gulf and proposed economic biannual collaborative forums to sustain the dialogue between COMESA and BCCI.

The COMESA delegation also visited Bahrain’s International Investment Park, an area of 2,470,000 meters designed to attract export oriented companies in manufacturing and internationally traded services with high value projects that will contribute to creating quality local employment.

A framework for future collaboration was established through the MoUs signed between COMESA RIA and various Chambers of Commerce and Industry in the Gulf. The mission to the Gulf was fruitful though there should be more and better communication if the opportunities in Africa were to be tapped.