The Zambia Development Agency – ZDA has called on local businesses seeking Joint Venture (JVs) partnerships with foreign investors to visit the agency. This is in a quest to market the country’s various investment opportunities to attract Foreign Direct Investments (FDIs), Local Direct Investments (LDI) and Re- investments.
The Agency reveals that at least US$ 707 million is estimated to have been invested through JV partnerships from 2016 when JVs when first launched. In line with global trends, there has been a notable increase in JV investments since its establishment.
The Agency has since placed emphasis on the importance of forming partnerships between foreign investors and local players in an effort to create sustainable investments, enhance technical exchanges, reduce exposure of Zambian firms to market shocks, and increase the participation of Zambian firms in local and foreign markets.
Facilitating partnerships and JVs by encouraging co-financing between local and foreign business entities is a key strategy used by the agency to spur industrialization and job creation, ZDA Director General, Perry Mapani has said.
Through local fora such as provincial investment expos as well as international missions, the Agency facilitates match-making, among like-minded investors that aim to enter and/or increase their access to domestic and global value chains. Match-making involves the provision of market information to firms seeking partnerships, and the subsequent provision of aftercare services.
The Energy sector is the largest contributor to JV investments with an estimated investment of at least US$ 483 million since 2016. The Mining sector was the second largest source of JV investment with at least US$ 224 million since 2016.
And since 2016, at least 2,100 jobs have been created through JV partnerships. The Energy sector is the largest contributor with about 1,497 jobs while the Mining sector produced about 606 jobs through JVs, the agency has reviewed.
A report by the International Labor Organization – ILO indicated that some Multi-National Corporations (MNCs) especially those operating in the Mining sector, face challenges in finding local partners with the ability to comply with the scale and quality of services required. In that regard, ZDA now calls on local enterprises to sign up and get information and certification that would help them attract foreign partnerships.
“JV partnerships remain an important strategy for private sector development, job creation, and technical progress through technological exchanges. Since, ZDA is the official contact partner for foreign companies looking for qualified Zambian-based manufacturers and service providers, firms that are interested in JV partnerships are encouraged to contact the Agency,” Mapani said.
India and China are the largest sources of JV partnerships mainly in the Energy and Mining sectors, respectively, and ZDA plans to extend these relationships to other key sectors and companies in Zambia.
