ZAMBIA TRADE MISSION TO USA; WHICH WAY FORWARD? - PART 2

MEETING WITH THE MINORITY BUSINESS DEVELOPMENT AGENCY (MBDA) – WASHINGTON DC

The Zambian Trade delegation also met with the Minority Business Development Agency (MBDA), a part of the US Department of Commerce committed to wealth creation in minority communities.

The delegation had heard that the Agency’s mission “is to actively promote the growth and competitiveness of large, medium and small minority business enterprises (MBEs)”. MBDA’s vision is economic prosperity for all American business enterprises .

In this regard, Zambia’s position was to seek a two way trade and investment partnership as well as to increase business transactions between the Zambia and the US.

The delegation had expressed the need to corporate with MBDA in developing its MSMEs sector in particular skills transfer, business incubators and industrial clusters.

MEETING AT AFRICARE – WASHINGTON DC

Africare’s programs focus on Food Security, Water, Health and Emergency Responses. It was therefore timely that the Trade mission held discussions with leaders of Africare to exchange views, especially on the operations  of  Africare- Zambia.

It was heard that Africare-Zambia currently provides assistance to Zambians through nine donor supported projects including Maternal and Child Health, HIV/AIDS awareness and prevention, Gender Based Violence, Youth Livelihoods, Water provision and Sanitation Promotion as well as appropriate technology in Water Management.

Acknowledgement was made to the effect that Africare – Zambia runs ten project offices, distributed throughout seven of Zambia’s nine provinces and collaborates with national, provincial and local partners to contribute to Zambia’s development priorities.

MINISTER SICHINGA – SENATOR BOBBY RUSH MEETING – WASHINGTON DC

Commerce Minister Sichinga also held bilateral talks with Senator Bobby Rush, a US Democratic Party Representative as well as a member of the Congressional Black Caucus (CBC) and a very strong supporter of the Africa Growth opportunity Act (AGOA).

The talks centered mainly on the extension of the Third Fabric Provision beyond September 2012, more so that Zambia is in the process of revamping the cotton and textiles industry. The other point of discussion was the need that the Third Country Fabric should not only run concurrently with AGOA but should be integrated within the AGOA framework for all AGOA beneficiary countries. Against this back ground, there was need on the importance of extending AGOA beyond 2015.

CINCINNATI US-AFRICA BUSINESS CONFERENCE

In Cincinnati, Ohio, National Airports Corporation (NAC) Limited Managing Director, Robinson Misitala was talking  “expansion programs for Zambia’s airports” where he first revealed that 19 bids from International and local companies had  been received by his organization for the replacement of out dated infrastructure at the four International airports in Zambia.

In his presentation on a panel discussion titled ‘AVIATION: SAFE SKIES FOR AFRICA SPACE INTEGRATION’, Mr. Misitala said great business opportunities in infrastructure development now existed

He said the Kenneth Kaunda International airport would be  under- going the most extensive expansion that would be phased over the next few years.

The Kenneth Kaunda International airport would become a major business and cargo port because of its geographical position in the Southern African Development Community (SADC) region.

“Lusaka is destined to become the center of trade for Southern and Central Africa because of its central proximity in the sub region,” he added.

The Harry Mwaanga Nkumbula International airport, which is the gateway to the Victoria Falls, would  have a share of its construction program with a new concourse, a new international arrivals terminal, a drop off zone and walkways.

Meanwhile, the Simon Mwansa Kapwepwe International in Ndola  had seen a growing number of passengers and mining related cargo.

He added,” There is a growing interest from regional airlines to tap into the growing numbers at the Simon Mwansa Kapwepwe International airport stimulated by the mining activity on the Copperbelt.”

He had stated that under the proposed master plan, the National Airports Corporation will invest about US$25 million in a new passenger terminal.

As for Mfuwe International airport, there was great need to upgrade the airport owing to its potential as an eco tourism destination and its proximity to  the Luangwa National park.

Plans would be under way for a new flexible open terminal which is designed to specifically present the “right atmosphere” to arriving tourists.

I Mr. Misitala had concluded by telling his audience that  there had been an increased interest in the use of Zambia’s International Airports by a number of International Airlines and that an increase in traffic had been recorded.

MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT)  - BOSTON

In Boston, Minister Sichinga once again echoed his desire for American Industries to actively participate and enter into business ventures with their Zambian counterparts.

He made a presentation at the Massachusetts Institute of  Technology  Legatum Center for Development and Entrepreneurship , a privately owned research university dedicated to advancing knowledge and educating students in science and technology, at which he said Zambia needed investment in all sectors including technology, science and communication.

 “ We hope that through our visit here we will strengthen economic and commercial ties in all sectors and we look forward to building up our contacts with reputable and experienced businesses,” he added

Mr. Sichinga told invited guests that his delegation comprising government officials and the private sector was in the United States of America with the objective to capitalize on the interest generated about Zambia’s potential for investment.

Later, taking the floor, Coordinator-Private Sector Development Reform Program (PSDRP) Kayula Siame said Zambia strongly believed that the private sector participation in the economy was key to economic growth and that through the private sector, jobs could  be created.

She told the audience that Zambia was recognized as one of the top 10 global reformers, in Africa as 7^th and in the Common Market for Eastern and Southern Africa (COMESA) at number 3 position in the ‘Way of Doing Business’ according to the 2011 World Bank Report.

Ms Siame then observed that Zambia had introduced policy legal regulatory and institutional reforms that govern business one way or the other. She had added that the Public Private Partnership (PPP) policy frame work were in place for private sector investment in public infrastructure and service providers.

She had said through the various business reforms,  Zambia had continued focus on ensuring that the business environmental obstacles and impediments were addressed and that the “business environment remains conducive and the cost of doing business reduced.”

On his part, President of the American Chamber of Commerce in Zambia Mr. Greg Marchand observed that Sub-Saharan Africa was an investment destination that could no longer be ignored by the United States of America regardless of the sector in question.

He had said the challenge was to operationalize the opportunities that Africa afforded, to develop specific strategies and instruments to promote US business engagement throughout Africa or “risk being left behind.”

Marchand  had added,” We should encourage the US and African governments to pursue policies that foster foreign direct investment, facilitate US trade with African countries and expose US and African companies to vast economic opportunities.”

Specifically referring to Zambia, Marchand had said he, as an American investor had invested in the country the last 7  years  with the full understanding of the risks involved noting that he did not seek what he termed as “episodic and short term investment”, but instead a shared vision and in working in long term partnership to contribute to the building of the economy of Zambia.

On his part, Founder and Director of the Legatum Center for Development and Entrepreneurship at the Massachusetts Institute of Technology (MIT), Professor Iqbal Quadir  had invited would be students from Zambia to “sign up” for seed grants for enterprises in their country.

He said his organization administers programs and convenes events that promote and shape discourse on bottom-up development.

Professor Quadir had noted that the Center had awarded more than 100 Legatum seed grants to assist students in developing profit enterprises in countries such as Ghana, Nigeria and Kenya.

Other speakers on the platform had included Florence Mumba who is Director at the Zambia Development Agency (ZDA), Abel Ng’andu Managing Director of Ng’andu Consulting and  Warren Bacon who is Project Director, Minority Business Development Agency.

Later, Mr. Sichinga and his delegation had made a presentation at EMC Consulting, a company that provides information infrastructure technology and solutions before departing for Houston, Texas for the next leg of the trade mission.

HOUSTON BUSINESS MEETINGS

In Houston, Texas, the delegation was on a busy schedule with a visit to the General Electric Company and a series of presentations by the Tagos Group of Companies. Tagos provides expertise in Supply Chain Optimization, Operational Excellence and is also involved in Energy Transformation, Rail Construction Mining , integrated Technology and Supply as well as Housing.

In 2011, during the AGOA meeting in Lusaka, Tagos signed a Memorandum of Understanding (MOU) with the North West Railway Company (NRW) for the implementation of a 405 kilometer rail project at a cost of US$500 million.

Another MOU was signed with the National Housing Authority (NHA) of Zambia for the construction of 1,000 housing units.

ATLANTA – MEETING WITH AGCO SENIOR MANAGEMENT

To conclude his six city trade mission to the United States of America, Minister Sichinga visited and held a meeting with AGCO Corporation, a Duluth, Atlanta based tractor manufacture. The company in early June 2012 launched a 371 acre farm in Zambia to help teach local farmers and those in the region how to boost food production.

Welcoming Mr Sichinga and his delegation, AGCO’s Director of Africa and the Middle East  Nuradin Osman, first stated that AGCO was committed to growing its presence within Africa by investing in distribution infrastructure and new training sites.

He told Mr. Sichinga and his delegation that AGCO had planned to invest US$100 million in Africa over the next few years, positioning itself for a wave of mechanization driven by population growth and the need for greater agricultural efficiency across the continent.

He added that small to medium scale farmers with limited access to modern farming will benefit from training courses ranging from basic agronomy to general mechanization and that large scale farmers will be offered training on high specification tractors and harvesting equipment, including precision farming technology.

“The centrality of Zambia’s location and sound investment policies will make this institution well positioned to effectively serve the local farmers and the rest of the surrounding region, “ he added

The facilities that will be completed by mid 2013 will include a range of classrooms as well as a number of trouble-shooting and service areas, all well equipped with the latest technology.

In response, Mr. Sichinga said Zambia’s population was estimated at 13 million with the majority being in rural areas where the main economic activity is agriculture.

“It is in this light that we welcome the presence of AGCO in Zambia,” he said.

Mission accomplished, it was time for Minister of Commerce, Trade and Industry, Robert Sichinga  and his delegation to depart for Zambia for  yet another mission – The Zambia International Trade Fair.

As for me, I got back to Washington DC  to review and analyze if the mission to strengthen the trade and investment relationship between the United States of America and Zambia would be realized would bear fruit.

Building on this platform, the mission did seek to increase trade, skills transfer, foreign direct investments not to mention forging of partnerships through joint ventures, innovation and economic growth.

The writer is Deputy Chief of Mission at the Embassy of the Republic of Zambia in Washington DC.