Southern African- Zambia + Mozambique Åsa Jarskog, President of SSACC asa@jarskogkonsult.se www.ssacc.se Introduction SSACC Doing Business in Africa Facts About SADC Mozambique Zambia Questions?
Din Affärspartner i Södra Afrika Your Business Partner in Southern Africa SSACC is a member based private (non-profit) Chamber of Commerce, registered in Sweden in 2014 Scope: Southern African region (SADC) Mission: Promote business relations, trade and investment between Sweden and SADC Key Stakeholders: Swedish & Southern Africa Private Sector Members: Swedish companies www.ssacc.se Network throughout SADC So far 11 MOU:s in 7 countries representing over 2000 business.
Some tips on doing business in Southern Africa Do your homework or don t do it: Socio-economy: Do no harm, Brand protection Market: 1 market or 54? Preferences? Infrastructure: DIY (power, water, road, transportation, sewage, fuel ) Cell phones, cash, talents.. Relations stronger than Institutions: Find the right partners and treat them well. Business Culture Sustainable business Socially, Environmentally and Financially
SADC ECONOMIC & POLITICAL BACKGROUND Established in 1992 economic development Peace and security Inclusive growth & quality of life Big market: 15 countries ca 300 million people 4-5% GDP growth since 2000 36% of total Africa GDP (2003-2012) Peace and Security GDP (US$ billions) Population (millions) GNI/capita (US$) South Africa 350.1 54 6,800 Angola 138.4 24.23 640* DRC 33.12 74.88 380 Tanzania 48.06 51.82 920 Zambia 27.07 15.72 1,680 Mozambique 15.94 27.22 600 Botswana 15.81 2.22 7,240 Zimbabwe 14.2 15.25 840 Namibia 13 2.403 5,630 Mauritius 12.63 1.261 9,630 Madagascar 10.59 23.57 440 Malawi 4.258 16.7 250 Swaziland 4.413 1.269 3,550 Lesotho 2.181 2.109 1,330 Seychelles 1.423 0.1 14,100 * Angola - 2002
SADC FDI FLOWS Approx US$ 16 billion, 30% of total Africa inflows (2014) South Africa still most attractive investment destination in SADC and Africa as a whole. Other high rankers in region: Zambia, Botswana, Mozambique and Namibia. Zambia highest increase in FDI inflows (in SADC) during 2014 (US$1.8 bio to US$2.5 bio) Mozambique, Tanzania and DRC largest inflows of FDI (2015) of all least developed countries Sectoral FDI inflows into SADC - order of importance Coal, Oil and Natural gas Metals Real estate Communication Alternative/Renewable energy Building and construction materials Automotive original equipment manufacturer Financial Services
SADC Industrialisation Strategy 6 Quantitative Goals for: Industrialisation Competetiveness Regional Integration Challenges Infrastructure -> Energy: generation, distribution, efficiency, alternative energy -> Transport: expansion, upgrading, interconnection (road, rail, air & ports) -> ICT -> Water: Skills Development Financing = opportunities for Swedish businesses
Mozambique GDP US$15.94 billions Population 27.22 million GNI/capita US$600 fast growing economy among non-oil exporting countries (7.6% last decade) Doubled GNI/capita between 2006 2016 Growth sectors: agro, tourism, fisheries communications, banking, construction, energy CPI website
Mozambique Mining KEY SECTORS Power generation: expansion plan of 3700MW. Mozambique is a net exporter of energy but the main constraint to unlocking all the energy potential is the lack of adequate transmission infrastructure Energy Infrastructure Renewable Energy Logistics/Transport infrastructure Agro-Business ICT Forestry Tourism Renewable energy potential sums to 7100MW Hydro(small) 4700MW Wind Power 1100MW Solar Power 1200MW Biomass Power 130MW Geographic location potential in logistics and transport Only 20% of fertile land is cultivated processing needs in: (i.) Maize (ii) Peanuts, (iii) sesame (iv) Cassava (v) Beans, (vi) vegetables, (vii) cashew nuts, (viii) Cotton, (ix) tobacco, (x) Wood, (xi) tropical fruits, especially bananas and mangoes Efficiency in ICT 8 out of 10 mobile users use 2-3 mobile network providers (simultaneously) Tourism potential is huge with 2700km of unexploited pristine beaches, but it is not only accommodation it is the need for Creative Industry
W h y Z a m b i a? GDP US$27.07 billions Population 15.72 million GNI/capita US$1680 Zambia GDP growth last decade 6-7% GDP growth 2015 down to 4.6% GDP per capita - more than doubled since 2006 Large and growing middle class ZIA website
Investor Concerns In which areas do Zambians invest? Why? What are the growing industries/sectors in Zambia? What industries/sectors NEED investment in Zambia? KEY SECTORS Mining Agriculture Manufacturing Tourism Thoughts to a Swedish investor Questions to ask yourself What are the Opportunities & Risks?
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