The Zambia Development Agency (ZDA) has signed an Investment Promotion and Protection Agreement (IPPA) with the Golden Eagle Tobacco (International) Corporation Limited. The company which has committed to invest US$ 45,000,000, sought the IPPA for the purposes of facilitation and protection of a registered investment project to be implemented in the Jiangxi Multi-Facility Economic Zone in Chibombo District in Central Province.
Golden Eagle Tobacco (International) Corporation Limited is a Chinese owned company that was incorporated in February 2020 with a view to cultivating tobacco, processing it and ultimately manufacturing it into cigarettes. The Private Limited Company is owned by Jiangxi International Investment registered in Port Louis Mauritius and China Jiangxi Corporation for International Economic and Technical Cooperation Zambia Limited registered in Zambia.
The company has proposed to implement a local business development programme encompassing contract farming through an Out-Grower Scheme with small scale tobacco farmers in Chibombo, capacity building through skill training of small scale tobacco farmers, climate change support to tobacco farmers, labour sourcing from the local community (planning to create 455 direct jobs for Zambians and over 1, 500 indirect jobs through various forward and backward linkages) and identification of local raw material suppliers and service providers for the project.
Officiating at the IPPA Signing Ceremony held at the Golden Peacock Hotel in Lusaka on Wednesday, ZDA Board Chairperson Bishop David Masupa described the signing of the IPPA with Golden Eagle Tobacco (International) Corporation Limited as a milestone and a positive development in government’s continued efforts to transform the face of the country, by accelerating development efforts towards the Vision 2030.
Bishop David Masupa commended the tobacco firm for coming up with a comprehensive local area development programme, saying it will help alleviate poverty levels in Chibombo District.
He observed that the future growth of Zambia’s economy depended on increased investment and trade in the priority sectors identified by government.
“Flourishing trade and investment will create new jobs and raise the quality of life for people in Chibombo and the country at large,” observed Bishop Masupa. “I also believe that this agreement assures other investors that together we share a stake in fostering a better future for Zambia and that the government will stand by them and help them as they set up businesses in the country.”
And speaking at the same event, ZDA Director General Mr. Mukula Makasa explained that the Government of the Republic of Zambia through ZDA was open to signing an IPPA with any company operating within Zambia that invested over US$ 10 million in any sector of the economy.
Mr. Makasa added that the IPPA was married to the validity of the Certificate of Registration issued to the company.
He further explained that the intention of an IPPA was to protect an investment from state nationalization.
Mr. Makasa disclosed that ZDA certified that the company signing an IPPA was eligible for tax and duty exemptions under Part VIII of the ZDA Act and other provisions of the law.
He also disclosed that through an IPPA, ZDA committed to assisting a company to obtain expeditiously all permits required in relation to the project, facilitating applications for work permits, employment passes, visas, travel authorizations, rights of entry and residence and other permits as necessary for individuals involved in the development project.
Mr. Makasa revealed that government signed an IPPA with a company on condition that it adhered to all the Zambian laws and regulations including standards and practices concerning the protection of health and safety in the environment of operation.
He said the other conditions under which government signed an IPPA with a company was the company employing qualified Zambians, observing labour laws and putting in place a local business development programme to benefit the local Zambian community.
Meanwhile, Golden Eagle Tobacco Corporation Limited Chairman Charles Ye expressed gratitude to ZDA for facilitating the tobacco cultivation, processing and cigarette manufacturing investment in the country.
Mr. Ye pledged his company’s commitment to working with ZDA, Tobacco Board of Zambia, Ministry of Agriculture and other stakeholders in helping accelerate development efforts through job creation and uplifting the livelihoods of the Zambians.
