The Zambia Development Agency (ZDA) has signed an Investment Promotion and Protection Agreement (IPPA) with Jiangxi United Limited relating to the operation and construction of a Multi-Facility Economic Zone (MFEZ).
Speaking during the IPPA Signing Ceremony held in Chibombo on March 8, 2021, ZDA Board Chairperson Bishop David Masupa said the Agency was pleased to witness the development of a $600 Million MFEZ in Chibombo District that had potential to generate up to 20,000 jobs at full capacity.
Bishop Masupa commended Jiangxi United Limited for coming up with a local area development programme that included the establishment of a skills training institute, a service centre for use by the surrounding small and medium enterprises (SMEs), and c a clinic and police station amongst other infrastructural developments.
“We are excited that that FOCAC 2018 in Beijing Memorandum of Understanding between the Ministry of Commerce, Trade and Industry and the Jiangxi Province of the People’s Republic of China was not in vain but being actualized,” he said. “Further, as ZDA we are impressed with your investment which touches on pertinent subsectors of the economy contributing to the country’s economic transformation and industrial agenda of the vision 2030.”
Bishop Masupa added that he was impressed with the investment in agriculture in the MFEZ, as it was one of the country’s key priority sectors.
“It is good to see the tobacco plantation and the curing of tobacco by the Golden Eagle Tobacco Corporation Limited one of the companies operating in the zone. The company recently signed an IPPA with ZDA,” he said.
Bishop Masupa reiterated Government’s desire to see the actualization of pledged investments.
And speaking at the same event, ZDA Director General Mukula Makasa noted that the Agency was delighted with the gesture by Chibombo MFEZ of investing in the Zambian Economy.
Mr. Makasa said the gesture will not only attract more investments in the country but will also boost investor confidence.
He said China had remained an all-weather friend to Zambia and that Zambia would continue looking up to China for more investment.
“We are convinced that this investment will profoundly contribute to accelerating industrialization and to spur economic diversification so that the country transitions to a prosperous middle income economy by 2030,” said Mr. Makasa.
Meanwhile, Jiangxi MFEZ General Manager Xu Jianfeng said by September 2020, Jiangxi United Limited had signed five agreements with investors whose total investment was approximated at US$160 million.
Mr. Jianfeng stated that the investors included Golden Eagle Tobacco with planned investment of US$100 million in tobacco processing, Jiangxi Xinyu Iron and Steel Group with USD 20 million pledged investment for building a steel processing plant, Jiangxi Electric Porcelain Chamber of Commerce with USD 5 million on electrical porcelain factory, V.L Pharmaceutical Investment Group with USD 30 million on medical equipment factory and Sun Line International Logistics with USD 5 million on logistics service centre. “Once the five investors start their business operations, it is envisaged that 1, 800 jobs will be created for the local people. So far, the tobacco plantation/ processing and the concrete making station are already under operation and about 200 jobs have been created for the locals,” said Mr. Jianfeng.
