Asia investment in Zambia has significantly increased over the last decade, with China accounting for US$6.1 billion, Zambia Development Agency Director for Export Promotion and Market Development, Glyne Michelo has said.

Speaking at the Asian Marketing Seminar organised by ZDA and Market Access Trade and Enabling Policies (MATEP) programme in Lusaka on February 5, 2010, Mr. Michelo said Chinese investment amounted to US$377 million between 1993 and 2006, and the inflow shot up to US$6.1 billion in the last two years.

Asia is among the top sources of foreign direct investment in Zambia, accounting for 20 percent of total investment the country recorded for the period 1993 to 2009.

Mr. Michelo said government had made serious efforts to build stronger ties with Asian partners.

Chambishi Multi-Facility Economic Zone (MFEZ) was one of the major investment projects from China under the China Africa Economic Assistance programme. Chambishi was the first economic zone to be built in Zambia.

“The Chambishi MFEZ has an investment of more than US$800 million while the Lusaka sub-zone is expected to bring in investment of up to US$100 million,” he said. The projects are expected to generate up to 6,000 jobs over time.”

Meanwhile, Mr. Michelo has said Zambia’s international trade profile and export markets have greatly changed in the past decade with SADC, COMESA and Asia emerging as important trading partners for Zambia.

He however, said the European Union which was Zambia’s top export destination for Zambian exports had declined from a share of around 60 per cent in 2000 to less than 12 per cent in 2008.

In 2008, Zambia imported a total of US$1.3 billion of mainly mineral fuels, nuclear reactors and electrical and electronic equipment from Asia, and in turn exported a total of US$763 million to Asia with the main products being copper and gemstones.

Zambia’s main export destinations for non copper-cobalt exports were India with US$33.5 million and China with US$19 million.

Mr. Michelo said ZDA planned to co-ordinate the participation of Zambian companies in specific sectors and specialised exhibitions in Hong Kong and China to promote local products.

He said the Agency planned to undertake specific sector studies to identify markets for Zambian products in expectation of volume growth in trade between Zambia and Asia.

And MATEP chief of party, Dr. Scott Simons said MATEP was a result-oriented project that was intended to make exports happen.

Dr. Simons said growth rates in China and other East Asian countries remained comparatively stronger during the recent financial turmoil in the world and appeared likely to accelerate again, hence the need to pay attention to the region.