District Investment Profile

LUANSHYA DISTRICT INVESTMENT PROFILE

Luanshya District Investment Profile Page i

Luanshya District Investment Profile

Welcome to Luanshya

THE GARDEN TOWN

This Investment profil e gives you an insight of Luanshya District. The district has abundant natural resources, modern infrastructure, social amenities, business houses and skilled labour to suit a variety of industrial, leisure and service opportunities.

Luanshya is a mining town endowed with Copper Ore deposits which has facilitated mining. However, the district is currently working on reducing the dependency on mining as such it is promoting diversification into other sectors especially agriculture sector.

The District has a well connected road network connecting all the built and newly created areas. The local authority is making efforts to extend and improve the road network into the farm blocks to improve accessibility and connect them to the market.

Luanshya District offers a unique advantageous location as a District having been sandwiched between cities and peri - urban districts which offer an attractive wider market option for owned and rental property pulling its clients from its surrounding cities, and , and districts such as Masaiti, Mpongwe and Masaiti. It offers a warm friendly economic option of housing in beautiful neighbourhoods enhanced by its garden city concept.

Luanshya District Investment Profile Page ii

Luanshya District Investment Profile

Therefore, investing in Luanshya is one of the wisest decisions you will make due to its advantageous location and availability of market for goods and services.

NATHAN CHANDA BWALYA LUANSHYA MAYOR

THE VISION OF LUANSHYA DISTRICT

AN INDUSTRIOUS GREEN TOWN

BY 2030

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Luanshya District Investment Profile

TABLE OF CONTENTS

1.0 OVERVIEW OF LUANSHYA DISTRICT ...... 1 1.2 CLIMATIC CONDITIONS ...... 3 1.3 DEMOGRAPHY ...... 3 1.4 MAIN ECONOMIC ACTIVITIES...... 3

2.0 SWOT ANALYSIS………………………………………………………………………………………6

3.0 INVESTMENT OPPORTUNITIES ...... 7 3.1 INFRASTRUCTURE ...... 24 3.2 ABUNDANT NATURAL RESOURCES ...... 7 3.3 TOURISM POTENTIAL...... 8 3.4 LABOUR FORCE ...... 23 3.5 LOCAL AND REGIONAL MARKET ...... 23 3.6 MINING ...... 19 3.7 AGRICULTURE ...... 9 3.7.1 DAIRY FARMING ...... 9 3.7. 2 POULTRY FARMING ...... 13 3.7.3 CROP PRODUCTION ...... 17 3.7.4 FISH FARMING ...... Error! Bookmark not defined. 3.8 MANUFACTURING INDUSTRY ...... 25 4.0 GOODNESS OF INVESTING IN LUANSHYA...... 26 4.1 HEALTH SERVICES ...... 26 4.3 BANKING SERVICES ...... 26 4.4 EDUCATIONAL FACILITIES...... 27

Luanshya District Investment Profile Page iv

Luanshya District Investment Profile

4.6 RECREATION CENTRES ...... 27 4.8 SHOPPING ...... 28 4.9 ACCOMODATION ...... 28 5.0 INVESTMENT INCENTIVE ...... 28 5.1 FISCAL INCENTIVES AND QUALIFYING THRESHOLDS ...... 29 5.2 NON- FISCAL INCENTIVES; ...... 30 6.0 DOING BUSINESS IN LUANSHYA...... 30 6.1 COMPANY FORMATION AND REGISTRATION ...... 30 6.2 THE CERTIFICATE OF REGISTRATION ...... 30 6.3 EMPLOYMENT LICENCES / PERMITS ...... 31 6.4 LAND CONSIDERATIONS ...... 32 6.4.1 LAND ACQUISITION AND TRANSFER...... 33

TABLE OF FIGURES

FIGURE 1: MAP SHOWING THE LOCATION OF LUANSHYA DISTRICT ...... 2 FIGURE 2: MAP SHOWING LAND RESERVED FOR HOUSINGError! Bookmark not defined. FIGURE 3: MAP SHOWING LAND RESERVED FOR AGRICULTURE SECTOR ...... 19

LIST OF TABLES

Table 1: SHOWING THE POPULATION DISTRIBUTION BY SEX FROM 2000-2020 ...... 3

Table 2 POPULATION DISTRIBUTION BY AGE I N FIGURES ...... 5

Table 3: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS ...... 6

Table 4: SHOWING DISTRICT AGRICULTURAL PRODUCTION ...... 17

Table 5: SHOWING FISH PRODUCTION AGAINST THE NATIONAL STANDARDError! Bookmark not defined.

Table 6: SHOWING KEY CONTACTS ...... 34

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SNAPSHOT ON LUANSHYA

Geography Location Neighbours Kitwe City, Ndola City, , and District area 1, 007.6087 km2 Arable Land area 51,000 hectares

Socio-Economic Characteristics Population(2010 census) 153,117 Languages English (official language) ,Bemba, nyanja,lala, Tonga, lozi etc Main Economic Activities Mining, Agriculture

Infrastructure and Strategic Positioning Transport network Road network Airport Few Kilometres from Ndola Airport Communication MTN, Airtel, Zamtel, Internet Website [email protected]

1.0 OVERVIEW OF LUANSHYA DISTRICT

What is present day Luanshya town used to be occupied by dense forests and dambos. Luanshya district is a town in that lies in the . It is 35 kilometres south-west of Ndola, the provincial capital of the Copperbelt Province. It shares its borders with Kitwe city on the west, Ndola city on the north-east, Masaiti district on the south-east, Mpongwe District on the south-west near Kafue River and Lufwanyama District (particularly Chief Lumpuma’s chiefdom) on the north-west. It is also often referred to as the country’s only “garden town.”It lies on an approximate latitude of 130 7’ 59.880”s and longitude 28023’ 60.00”. It has also an altitude of 1257m.

It is one of the urbanized districts in Zambia and boasts of an area of 1, 007.6087 km2, most of it being land reserves and farm land in the peripheries of the District.

Luanshya District Investment Profile Page 1

Luanshya District Investment Profile

FIGURE 1: MAP SHOWING THE LOCATION OF LUANSHYA DISTRICT

Luanshya Wards

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Luanshya District Investment Profile

1.2 CLIMATIC CONDITIONS

The Climate of the district typically comprised of dry, wet and hot seasons during the different times in a year. The hot and wet rainy season lasts between November and April with an average of 1,200 mm rainfall per annum. The rains are usually accompanied by some thunderstorms and lightening. The hot and dry season lasts between August and October. The daily maximum and minimum average temperatures of 27.2ºC and 13.4ºC occur in October and July respectively.

1.3 DEMOGRAPHY

According to the 2010 Population and Housing Census, the total Population of Luanshya is estimated at 153,117 with an average annual population growth rate of 0.3 %. The Population is segregated as 75, 703 Males being 49.4% of the Population and 77,414 Females being 50.6% of the Population (Census, 2010). The table below shows the

breakdown of the population by sex from 2000 to 2019:-

TABLE 1: SHOWING THE POPULATION DISTRIBUTION BY SEX FROM 2000-2020

YEAR MALE FEMALE TOTAL

2000 74,963 72,945 147 908

2010 75,703 77,414 153, 117

2019 87 300 89 498 186 498

2020 87,775 90,159 177,934

NOTE: 2019 2020 population statistics are projections quoted from the Zambia Census Projections 2011-2035

Population growth rate looks at the rate at which the number of individuals in a population Increases per year in a given time period. The population of Luanshya District grew at a rate of 0.3 per annum during the 2000 and 2010 intercensal period and is projected to be growing at a rate of 1.5 per annum during the 2010 and 2020 intercensal period.

Luanshya District Investment Profile Page 3

Luanshya District Investment Profile

FIGURE 2: POPULATION GROWTH IN DISTRICT

Population Growth in Luanshya District

100000

90000 80000

70000 60000 50000

40000 30000

20000

10000 0 2000 2010 2019 2020

MALE FEMALE

(Source: Population and Demographic Projections 2011-2035)

Population Growth looks at the increase in the number of individuals in a population taking into consideration the Birth Rate, Death Rate and Migration. From the above chart, it can be seen that the population growth rate of Luanshya District has grown and is expected to continue growing steadily positive.

Luanshya District Investment Profile Page 4

Luanshya District Investment Profile

FIGURE 3: POPULATION DISTRIBUTION BY AGE

2019 Population Pyramid of Luanshya District

80+ 70 to 74 60 to 64 50 to 54 40 to 44 30 to 34 20 to 24 10 to 14 0 to 4 20.00 15.00 10.00 5.00 0.00 5.00 10.00 15.00 20.00

FEMALE % MALE %

(Source: Population and Demographic Projections 2011-2035)

As of 2019, the population of Luanshya is approximated to be at 176, 798. From the broad base of the above pyramid, it can be said that Luanshya has a high proportion of young people and a low proportion of older people. Furthermore, the steady narrowing shows that more people die at each higher age band.

TABLE 2 POPULATION DISTRIBUTION BY AGE I N FIGURES

AGE MALE FEMALE TOTAL 0-4 12, 701 12, 660 25, 361 5-9 11, 467 11, 30 22, 857 10-14 11, 809 11, 785 23, 595 15-19 11, 679 11, 712 23, 391 20-24 8, 470 8, 651 17, 121 25-29 6, 607 6, 978 13, 584 30-34 4, 372 5, 126 9, 498 35-39 4, 106 5, 245 9, 352 40-44 3, 807 3, 999 7, 807 45-49 3, 431 3, 327 6, 783 50-54 2, 509 2, 417 4, 925

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Luanshya District Investment Profile

55-59 2, 146 2, 107 4, 253 60-64 1, 632 1, 547 3, 179 65-69 1, 085 976 2, 061 70-74 698 700 1, 397 75-79 371 417 788 80+ 412 461 872 (Source: Population and Demographic Projections 2011-2035)

From the above projected figures, the median age for Luanshya in 2019 is approximately 18.54 years. This means that half of the population is aged below 18.54 years and the other half is aged above 18. 54 years. Additionally, the sex ratio is at 97.5, this means that for every 100 females, there are 98 males.

1.4 MAIN ECONOMIC ACTIVITIES

Luanshya’s key economic activities are mining and agriculture. The district is endowed with Copper Ore deposits hence making mining a major economic activity. However, the district is currently working on reducing the dependency on mining as the major economic activity and as such it is promoting diversification into other sectors especially agriculture sector.

2.0 SWOT ANALYSIS

TABLE 3: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS

STRENGTHS WEAKNESSES . Skilled, qualified and experienced . Mono economy (copper mining) human resource. . Encroachment on protected . Relatively good infrastructure (road forests network, schools, electricity, ICT, . High Incidences of casualization hospitals etc.) of the work force . Political stability . Low productivity in goods and . Availability of natural resources (i.e. services forests, minerals, adequate arable land, . Low capacity (technology, streams and a river) transport, machinery etc.) . High population- large market base . Limited access to finances . Banking facilities . Youthful population (labour) at 52% of the total population ,

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Luanshya District Investment Profile

OPPORTUNITIES THREATS . Goodwill (Government, private sector ) . Policy shifts . Existence of conducive government . Climate Change policies i.e. decentralization policy, . Global economic instability Public Private Partnership (PPP) policy, . High cost of borrowing interest etc. rates . Strategically located in relation to . Unstable exchange rate neighbouring districts with huge market . High unemployment levels potential. especially amongst the youths . Favourable weather patterns and conditions

3.0 INVESTMENT OPPORTUNITIES

WHY INVEST IN LUANSHYA DISTRICT???

 Investment Guarantees  Investor Friendly  Market Access  Abundant Natural Resources  Untapped Investment Opportunities  Politically Stable  Advantageous Location

3.1 ABUNDANT NATURAL RESOURCES

Luanshya has abundant natural resources which if sustainably exploited will provide a strong raw materials base.

 River and Streams Kafubu stream, Luanshya stream, Fisansa stream, and Masasa stream. The availability of abundant water sources such as rivers and streams and fertile land presents an opportunity for agriculture and livestock production. With its vast water resources, the district offers abundant investment opportunities for hydro and thermal electricity power generation, supply and distribution.

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Luanshya District Investment Profile

 It has a number of forest reserve namely Masansa forest, Maposa forest, Muva hills and Lufubu botanic reserve. The availability of forest reserve in the district can be explored for investments such as; Beekeeping for honey, wood carving industry, mushroom production, production of game reserves, sporting facility etc.

 The district has abundant land and rainfall of about 1,200 mm per annual enough for commercial agriculture.

3.2 TOURISM POTENTIAL The district has got potential to be developed as a tourists destination. It has a good record of historical sites such as Copper Mines, World War II memorial site, dams such as Makoma.

Makoma Dam.

3.3 AGRICULTURE

The agricultural sector in Luanshya district is powered by a growing number of small scale farmers who mainly participates in livestock farming and crop production. Currently, there are 1286 Small-scale farmers and 7 large scale farmers in Luanshya

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Luanshya District Investment Profile

District. Unlike the surrounding cities whose land resource has become scarce, Luanshya boasts of land resource of approximately 51,000 hectares of arable land which is 63% of the land in Luanshya and is readily available to expand the industry in the district.

VALUE ADDITION

With an increase in the demand for stock feed, Plants like millers have come up to provide machinery and equipment to add value to the farm produces.

WEATHER CONDITION

Perfect climatic conditions provides an excellent environment for the growing of crops such as tobacco maize soya and cassava

READILY MARKET

The town has a ready market for the farm produces from the locals and surrounding towns

3.3.1 FISHERIES AND LIVESTOCK 1.1 Introduction The district is divided into seven veterinary camps through which the departments of livestock development and veterinary services. Dairy farming is predominantly in Fisenge, Kampelembe, Chitwi, Mpata Hills and Kamirendo Veterinary Camps. Below is the map showing the veterinary camps;

Luanshya District Investment Profile Page 9

Luanshya District Investment Profile

3.3.2 SWOT ANALYSIS

Strength

1. Good agricultural conditions favourable for both aquaculture and livestock production, 2. Availability of market for livestock and fish products both within the District and Province and even across boarders into Democratic Republic of Congo through Kasumbalesa Boarder Post, 3. Availability of Agro-Dealers ready to supply in puts required in both livestock and aquaculture production, 4. Availability of good road network in the district making it easy to transport inputs and products for both fish and livestock to the market, 5. The district has low prevalence rates of diseases like tick-borne diseases (East Coast Fever, Anaplasmosis, Babesiosis And Heart Water) with some diseases of economic importance (e.g Contagious Bovine Plural Pneumonia, Anthrax, Foot and Mouth Disease among others) not endemic at all, 6. The district has a vibrant Department of Veterinary Services with suitably qualified personnel to help contain any disease outbreak.

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Luanshya District Investment Profile

Weakness

1. Low staffing levels in the Departments of Fisheries and Livestock Development. This affects quality of extension service delivery to farmers by the Departments. 2. Limited number of aquaculture cooperatives. This creates weakness in marketing. Individual farmers are left to trade individually resulting into weak bargaining power. Furthermore, it creates a challenge in fish aggregation a situation that is difficult to access market with buyers like chain stores that may need the product in large quantities and a consistent supply. 3. Minimum involvement of youths in aquaculture and livestock production. Few youths have ventured into fish and livestock farming, leaving the ventures to people over 40 years of age. 4. Doing aquaculture as part-time. Few people are doing aquaculture as a business. This has a negative effect on production and productivity hence creating a deficit against the demand. 5. Unavailability of Regional Laboratory. The situation impedes the effective and economic control of livestock diseases. 6. Limited livestock diversification. A good number of farmers have concentrated on large animals (cattle especially dairy) leaving out other potential livestock like goats, sheep and poultry which equally have good economic value.

Opportunities

1. Dedicated Ministry of Fisheries and Livestock. The Ministry is dedicated to improving the performance of the sector. This is evident in the implementation of the projects like Zambia Aquaculture Enterprise Development Project (ZAEDP) and Enhanced Smallholder Agri-Business Promotion Programme (E-SAPP) which are empowering aquaculture farmers and Enhanced Smallholder Livestock Investment Programme (E- SLIP) empowering livestock farmers in the area of pasture production. Furthermore, the Ministry through Livestock Development and Animal Health Project (LDAHP) has empowered twenty Livestock Cooperatives in different livestock production areas. Through Citizen Economic Empowerment Commission (CEEC) the Government has a programme of empowering farmers with commercial production of quality fingerings. This is expected to address the problem of inadequate and poor quality fingerings in the district and country over. 2. Grappling mining activities in the district has created a different mindset of people to look into other alternative ventures like aquaculture and livestock production. This even provides for economic diversification and job creation in the district. 3. Governance policy. The devolution policy provides an opportunity to the district to identify sectors of economic value like aquaculture and livestock on which to direct more energy and resources.

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Luanshya District Investment Profile

4. Availability of cooperating partners like Zambaia Dairy Transformation Programme (ZDTP) and TECHNOSERVE. ZDTP is working with dairy farmers to take dairy farming as a business and hence improving production and productivity and quality of milk produced. TECHNOSERVE in conjunction with Musika is working with poultry farmers; creating a marketing system that will stir up production and productivity in the poultry sector.

Threats

1. Should the district fail or take time to bridge up the deficit in aquaculture and livestock production, there is a great of risk for the district to be flooded with imported fish and other livestock products from other districts and even countries. The development may prove detrimental to the sector both economically and job opportunities for local people. 2. Being a good marketing centre and on a transit route, the district risks an introduction of some livestock diseases that are not endemic to the district. This therefore calls for effective control of livestock movement into the district by the Department of Veterinary Services. 3. Climatic changes pose a danger on aquaculture and livestock production with respect to unpredictable rainfall patterns that affect water availability and pastures.

3.3.3 DAIRY FARMING

Dairy farming is the most preferred livestock farming activity among the local farmers. It is mainly undertaken by the women fork through cooperatives. Marketing model is through collection of milk at milk collection centre and sold to processors like Parmalat and Varun Food and Beverages. The district has two Milk Collection Centres currently operating and two more are to start operating which will give a total number of four Milk Collection Centres, in Fisenge, Kafubu block and two in Mpatamato. There about 1700 dairy cattle in the district and milk production on average is 1.2 Million Litres per annum.

The sector is rapidly developing creating a favourable environment for investment especially in milk processing and stock feed processing. The district further has low disease prevalence and is equipped with adequate veterinary staffs to contain any threatening livestock diseases. Market for the produce is readily available within the district and outside the district and indeed across boarders into Democratic Republic of Congo thereby cementing the confidence of business investment into the sector.

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Luanshya District Investment Profile

DAIRY ANIMAL FEEDING AT A FARM

A NEWLY CONSTRUCTED MILK COLLECTION CENTRE IN MPATAMATO

3.3. 4 POULTRY FARMING

Poultry farming is another livestock section the district has on its economic back bone. The sector is well thriving in both local and hybrid chickens. The district has a record of about 30, 000 local chickens. Though this number may be destabilized by occurrence of Newcastle disease during some period of the year, the sector offers great opportunity to the district economy.

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Luanshya District Investment Profile

To enhance its growth the sector calls for investment intervention in the area of marketing system. An established market system that provides ready market to farmers at a pre-determined price will further encourage the local farmers to produce. It would be a good business venture having a processing plant for both local and hybrid chickens adding value and supply to the existing hungry market in the district and across.

In the area of hybrid chicken production, inconsistency supply of day old chicks tends to slow down its growth. And hence having a hatchery to be supplying the farmers with day old chicks would triple the growth of the sector in the district.

A local feed processing plant in the district has potential to reduce costs of production and hence making the venture even more viable. The district is importing all stock feed a situation making costs of stock feed higher. The district has adequate arable land for farming and the current position on field crop production (soya bean, maize, groundnuts sun flower) provides for adequate capacity to feed into the stock feed processing industry.

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Luanshya District Investment Profile

3.3.5 FISH FARMING Fish farming is another sharply upcoming undertaking in the district. It has gained prominence lately due to high demand for fish in the district. The district has 447 fish ponds and 152 farmers. Of the 447 ponds 140 ponds are currently stocked with fish. Below is the table showing aquaculture position in the district; Item Detail of Item Quantity Population District 153, 117 (2010 census) Standard Fish consumption per 12kg person per year (kg) Demand Amount of fish required for 1, 837, 404kg the estimated population (153, 117) per year Current Production level Number of ponds stocked 140 ponds Average kg of fish being 15605.8kg produced per annum Available average amount 1300kg of fish per month (Kg) Average fish per day (kg) 43kg Deficiency/Surplus Amount of fish (kg) per 1,821, 798.2 kg deficit in year aquaculture per annum Current potential of No. of fish farmers in 152 farmers production production with respect to Total number of ponds 447 ponds number of farmers and Average size of a pond 400m2 ponds Average number of 894, 0000 fingerings fingerings to be stocked per year Production potential with 223, 500 kg/annum of fish; respect to fish stocked which would still be deficient with respect to demand.

From the table above the district has a huge deficit of fish supply with respect to the amount demanded. With readily market availability of fish it is eminent that investing into aquaculture is very viable. The district has a good number of streams and dambos with soil profile that supports earthen pond construction.

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Luanshya District Investment Profile

Establishing a fingering hatchery would be a very good investment which will boost the growth of aquaculture in the district. Quality fingerings are always in short supply in the district despite being a vital input into aquaculture farming; one of the factors making not all ponds to be stocked.

With availability of dams with adequate water levels in the district, cage fish farming is one area that needs to be explored to maximize on every water body available for aquaculture production. The district has about four dams.

Establishing of cold chain or fish aggregation point where fish can be processed and/or packaged for onward marketing may provide smooth and reliable market for the local famers. This would create confidence on market and price of fish in farmers which will subsequently improve production and productivity. This may equally work well with an out-grower scheme with aquaculture farmers.

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Luanshya District Investment Profile

Picture depicting aquaculture production in the district

3.3.6 CROP PRODUCTION

With regards to crop production there has been an increase in the growing of maize, groundnuts and soya beans to cope up with the growing demand from the cooking oil industry and manufacturers of livestock feed.

The table on the next page shows the current production of agricultural produce and the districts deficit to meet local demand.

TABLE 4: SHOWING DISTRICT AGRICULTURAL PRODUCTION

ITEM DETAIL OF ITEM CATEGORIES/QUANTITIES Maize Mixed Beans G/Nuts Soya crop Beans Standard Production Per ha 12MT 2MT 3MT 5MT Target Production Per ha 12MT 2MT 3MT 5MT Current Production Per ha 3MT 0.8MT 0.8MT 0.7MT production Optimum Level Production Per ha 10MT 1.5MT 2.5MT 4MT Deficiency Production Per ha 9MT 1.2MT 2.2MT 4.3MT %Production %Production 75% 60% 73% 86% Deficiency Deficiency

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Luanshya District Investment Profile

The government as well as the local authority has introduced deliberate policies to promote agriculture and promote the export of finished goods. The recently elected government has made clear pronouncements to prioritize agriculture to foster sustainable development. For the purpose of a more commercialized agricultural industry, the local authority recently opened up Muva Hill area in the western part of the district specifically for this purpose. Muva Hill was recently degazzeted from forest land to agricultural land making it attractive for agricultural investment due to its virgin land.

Despite the district having potential to produce enough agricultural products, there is a greater need for the creation of Value Chain. This presents opportunity in value addition associated with food crops such as corn, tomatoes, banana, vegetables, and dairy products. On average Luanshya district contributes between 5% to 8% of the total agricultural produce in Zambia and the production is set for further expansion. This is because Republican Government is unfolding a lot of programs to promote diversification into agriculture from the mining industry. In this vain the national budget exempts paying of taxes on agricultural imported goods. This development demands complementing efforts on value chain as there will be growth on agricultural produce.

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Luanshya District Investment Profile

Figure 4: MAP SHOWING LAND RESERVED FOR AGRICULTURE SECTOR

3.4 FORESTRY DEPARTMENT

INTRODUCTION

The forestry department in Luanshya is an important department which plays a vital role in conserving the environment. The goal of the forestry department is to ensure sustainable flow of wood and non-wood forestry products and services while at the same time ensuring protection and maintenance of the biodiversity for the benefit of both the present and future generation through active participation of all stakeholders.

SWOT ANALYSIS Strengths, Weaknesses, Opportunities and Threats

STRENGTHS WEAKNESSES . Skilled, qualified and experienced . Encroachment on protected forests human resource. . High incidence of forest excision and . Abundancy of forestry resources. (wood de-gazetting and Non-Wood) . Low capacity (technology, transport, . High population- large market base for machinery etc.)

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Luanshya District Investment Profile

forest produce and services . Limited access to finances . Banking facilities . Youthful population (labour) at 52% of the total population , OPPORTUNITIES THREATS . Goodwill (Government, private sector ) . High levels of Deforestation and land . Existence of conducive government use changes policies i.e. decentralization policy, . Policy shifts Public Private Partnership (PPP) policy, . Climate Change etc. . Global economic instability . Location of the district. Strategically . High cost of borrowing interest rates located in relation to neighbouring . Unstable exchange rate districts with huge market potential. . Favourable climatic and weather conditions that support forest growth and plantation establishment

NEEDS ( GAPS)

 Encroachment on protected forest areas  Lack of transportation due to limited access to finances

. Low capacity High incidence of forest excision and de-gazetting . Low capacity (technology, transport, machinery etc.)

THE PRODUCTS AND SERVICES

The Forestry Department is one vital sector that aims at conserving and preserving the products and services rendered by the forest reserves. The products serve a number of purposes in maintaining the ecological equilibrium of the environment and its systems. The forest products include both wood and non-wood materials derived for commercial and personal use. These

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Luanshya District Investment Profile products include timber, edible fruits, dyes, caterpillars, paper, medicinal herbs just to mention but a few. The forest products serve a number of purposes in our day to day lives for instance some trees are used as traditional herbs for medicine. Timber which is a major product serve as an important resource in the construction industry. In addition, wood is an important source of energy for cooking and heating and the production of charcoal has become the major activity been engaged into especially by those in the rural settlements.

BENEFITS

There are a number of services derived from the forest products and these include;

Carbon storage

Carbon dioxide is an important greenhouse gas that largely contributes to the scenario of climate change. Forests play a major role in the control of climate change through the sequestration and emission of carbon. Trees are the major sinks of carbon and carbon dioxide. During the process of photosynthesis, trees sequestrate or absorb carbon dioxide from the atmosphere in order to generate their own food which is starch and this reduces on the concentration levels of carbon dioxide in the atmosphere. The Carbon captured is not only stored in tree biomass but also in the forest soils and this helps in controlling the adverse impacts of climate change.

Social and cultural benefits

Luanshya being a developing town, the sustainable conservation of the forests is at the heart of the forestry department. Forests provide the social and cultural benefits such as recreation, traditional resource uses and spirituality. The forestry sector largely attributes to the growth of the tourism industry as the forest products especially the natural vegetation and wildlife contribute to the aesthetic beauty of the environment. Just to add on, the natural resources are used for a number of traditional purposes for instance, during the traditional ceremony of the lozi people water bodies are considered to be sacred and this helps in the sustainable management of these aquatic resources. There is need therefore for the integration of the indigenous and traditional practices with the modern system so as to preserve the natural resources for both the present and future generations.

Source of income

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Luanshya District Investment Profile

The increase in population is calling for more income generating ventures. The forestry sector through the various natural resources generates income for the local people. Bee keeping is one venture that is contributing to the economic growth of Luanshya and the country at large. Most local people have engaged in bee keeping for the production of honey and wax. In addition, the products of the forests such as the caterpillaers and edible fruits have become an income generating venture for most people especially those in rural setups. Forests also largely contribute to the growth of the agricultural sector as most people believe that farming is a major source of income in both urban and rural settlements. Charcoal production is also a source of income especially for the local people. Although charcoal production is key in improving the living conditions of people in rural areas the forest department through the Forestry Act is working towards the effective control of this activity as it contributes to the adverse impacts of deforestation.

PHYSICAL AREAS

The forestry department in Luanshya focuses on the control of the physical areas that are of great importance to the economic and social growth of the district. The physical forest areas under control and in operation include;

 Muva local forest reserve,  Masansa botanical reserve,  Maposa and  Kapululu forest areas.

These reserves serve a number of purposes in the sustainable management of forests for both the present and future needs.

Forests are the major habitats for both plant and animal species. They are a home and source of shelter for wildlife. The forests help in the provision of clean air and water, therefore the investment in the forestry department is an investment in the economic and social development of Luanshya district and the country at large.

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Luanshya District Investment Profile

3.5 MINING

Luanshya is endowed with copper ore deposits which have attracted some investors in the district. It has two mines operating and owned by the giant multi-national mining conglomerate, China Non-ferrous Metal Company (CNMC), which runs the two mines under a company known as Luanshya Copper Mines (LCM). Availability of copper ore deposits presents excellent investment opportunities in the extraction and processing of these minerals in the district.

Luanshya Slag Plant

3.6 LABOUR FORCE

The Zambian government has created an enabling environment for the increased establishment of government and private higher learning (tertiary) institutions which have contributed widely to the country’s skilled labour market. Residents of Luanshya are able to acquire skills in bricklaying from Luanshya Skills and Luanshya Trades and Business Institute who are able to apply themselves in the district’s construction sector.

Luanshya district is endowed with industrious, technically capable and affordable manpower and the population is comprised of skilled and unskilled manpower.

3.7 LOCAL AND REGIONAL MARKET

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Luanshya District Investment Profile

Luanshya town has an established market in the surrounding cities and districts. The Democratic Republic of Congo which borders with the Copperbelt Province has provided an available market for agricultural produce such as livestock, maize and mealie meal. Luanshya has been exporting hundreds of tonnes of Maize products (maize mail, stock feed, maize bran etc).

The district has a comparative advantage of location situated between two big cities of Ndola and Kitwe on the Copperbelt Province. It has a potential to produce goods for consumption in other cities, this is by virtue of it having plenty land for production of food which other cities do not have. Apparently the district is producing eggs, livestock, forest product, fish etc which is relatively not highly produced in other cities. As regards heavy industries, the district happens to be the only one producing Ferrosilicon by mettaloy limited. It supplies a number of steel producing industries in Zambia and South Africa.

3.8 INFRASTRUCTURE

Infrastructure Development plays a key role in the economic growth of a country. It is for this reason that Zambia considers infrastructure development as one of the priority areas. Luanshya district has great potential as an investment location which the Zambian government is committed to unlock through prioritized and strategic infrastructure development.

It has a well connected road network connecting all the built and newly created areas. The local authority is making efforts to extend and improve the road network into the farm blocks to improve accessibility and connect them to the market. The extension of power to farm areas and newly created residential areas is also a programme the government has embarked on with the help of the local electricity companies. It has also energy generation, transmission installations and telecommunication infrastructure.

The availability of strategically located land earmarked for housing development, shopping malls etc or rather reserved for development of a new town. This land is located

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Luanshya District Investment Profile

in a very prime area along Freeway that connects several towns. The same free way connects the entire Copperbelt province with eastern, , southern and other . A few kilometres away from this site earmarked from New Town development is an upcoming Airport which has since attracted new value than never before. The land in question is approximately 7 square kilometres currently planted with tree which is believed will be adopted as part of future development.

Figure 5: MAP SHOWING LAND RESERVED FOR HOUSING

3.9 MANUFACTURING INDUSTRY

Luanshya district is privileged by having a number of manufacturing industries such as -

 Zambia Metal Fabricators (ZAMEFA). ZAMEFA is a multi-national manufacturing company in the mining sector ‘Value Addition Company’ which turns the copper being mined throughout Zambia’s Copperbelt province into finished products for the local and export market such as Bare copper 0.57- 800 sq.-mm, Building Wire 0.75 - 1,000 sq.-mm, LV Power Cable 1.50 - 240 sq.-mm, Telephone Cable 2 - 1,200 pairs, Aluminum Cable 16 -300 sq.-mm and Copper shapes.  Emmans Farming Enterprises process soya beans into cooking oil

Antelope milling Company produces mealie-meal, stock feed, flour, and it has a number of sales outlets within and outside the district.

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Luanshya District Investment Profile

 Mettaloy Limited produces Ferrosilicon  Chat Breweries and Volcanal produces opaque pre-packed bulk beer within and outside the district.

4.0 GOODNESS OF INVESTING IN LUANSHYA

4.1 HEALTH SERVICES

The district has good health services; hence healthy living is assured to investors. It has both government and private hospitals, which are easily accessible. Luanshya has three major hospitals namely Roan Hospital, Luanshya Hospital and Thomson Hospital. The hospitals have qualified personnel and it offers quality services to the population of Luanshya and the surrounding districts. It has 10 Health posts and 17 Health Centres.

4.2 SERVICE STATION

The District has four service stations such as Puma, Oryx, Wada Chovu and lake petroleum

4.3 BANKING SERVICES The District has a number of banks which are playing a very positive role in economic development namely; ZANACO, Barclays, First National Bank, Standard chartered bank, Natsave, Atlasmara (Formerly Finance), Zambia National Building Society. In addition, the town has also a number of financial lending institutions such as such as Bayport, Yes

Cash Zambia, Madison Insurance, G S Cash advance Limited and Unity Finance.

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Luanshya District Investment Profile

ZANACO Bank

4.4 EDUCATIONAL FACILITIES Luanshya has a number of education facilities. The educational facilities are as a follows

 14 Secondary Schools  39 Government Primary Schools  7 Private Primary Schools  Two Universities  Two Private Colleges  Two Government colleges

4.5 TELECOMMUNICATION

The major communication companies are Zamtel, MTN, Airtel.

4.6 RECREATION CENTRES The district has a number of recreation centres which include makoma dam, Golf club, Muva hills, Beraka gardens, Lake Club and Play Parks such as Cheswa park e.t.c

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Luanshya District Investment Profile

Makoma Dam

4.7 UTILITY COMPANIES

Kafubu Water and Sewerage Company provide water and sanitation services to all business and residents of the town whilst ZESCO provides electrical energy to all companies and residents of Luanshya district.

4.8 SHOPPING Luanshya has a number of retail shops such as Pick n Pay, Shoprite, Pep, Jets, Radians, bata e.t.c.

4.9 ACCOMODATION Luanshya is a safe and friendly town where everyone can feel at home and go about their lives in comfort and security. It has a number of lodges such as Lowden Executive Lodge, Pakawama Lodge, Chowa Lodge, Copper Lodge, Mwetete Lodge, Bowas Lodge, Mubende Lodge e.t.c.

Mubende Lodge

5.0 INVESTMENT INCENTIVE

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Luanshya District Investment Profile

Zambia maintains the following agriculture incentives to spur sector investment and growth:  Zero rating agriculture products and supplies when exported  Income Tax rate of 10%  Reduced Customs Duty at 5% on pre- mixes, being vitamin additives for animal feed  Farm improvement allowance at 100% on fencing, brick or stone wall and an allowance of K10, 000.00 for farm occupied by farm workers  Property transfer tax rate on land sales of 5%  Customs duty is not levied on green houses and rose seedlings.  Government has simplified licensing procedures, created favorably investment environment and placed minimum constraints on mining activities.  Duty free importation of most capital equipment for mining sector  100% deduction on capital expenditure on buildings, railway lines, equipment, shaft sinking or any similar works

5.1 FISCAL INCENTIVES AND QUALIFYING THRESHOLDS

The ZDA Act provides for investment thresholds that have to be met to qualify for fiscal and non-fiscal incentives. Projects that qualify may be new or existing ones undergoing expansion or modernization. These are the categories of investors who can be considered under the ZDA Act. 1. Investors who invest not less than US$500,000 in the Multi Facility Economic Zone, an Industrial Park, a Priority Sector and in invest in a Rural Enterprise under the ZDA Act, are entitled to the following fiscal incentives:  Zero percent tax rate on dividends for 5 years from year of first declaration of dividends.  Zero percent tax on profits for 5 years from the first year of operation.

 Zero percent import duty rate on capital goods, machinery including specialized motor vehicles for five years. In addition to fiscal incentives, the above category of investors is entitled to the following

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Luanshya District Investment Profile

5.2 NON- FISCAL INCENTIVES;  Investment guarantees and protection against state nationalization;  Free facilitation for application of immigration permits, secondary licenses, land acquisition and utilities 2. Investors who invest an amount not less than US$250,000 in any sector or product not provided for as a priority sector or product under the Act. This category of investors is entitled to non-fiscal incentives as follows;  Investment guarantees and protection against state nationalization;  Free facilitation for application of immigration permits, secondary licenses, land acquisition and utilities

6.0 DOING BUSINESS IN LUANSHYA

There are a number of requirements for investors to do business in Luanshya; these are as follows-

6.1 COMPANY FORMATION AND REGISTRATION

The Company's Act Cap 388 governs the registration of companies in Zambia. Registration is done at the Patents and Companies Registration Office. Any two or more persons can incorporate a company under the Company's Act. The persons will be required to submit the following documents:  Application for name clearance, in order to avoid use of an existing or similar name  Application for incorporation by subscribing the names of directors and secretaries of the company  Articles of the company  Statutory declaration as to compliance with the Company's Act  Signed consent to act as director or secretary by each person named in the company's application  Declaration of guarantee, if a company is limited by guarantee.

6.2 THE CERTIFICATE OF REGISTRATION

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Luanshya District Investment Profile

The Zambia Development Act No. 11 of 2006 provides for investment incentives and investment guarantees. Applications for a certificate of registration should be submitted to the Zambia Development Agency, a statutory body mandated by government to foster economic development through the promotion and facilitation of investment and international trade. The documents required to support an application for an Investment Certificate include:  Copy of Certificate of Incorporation, issued by the Registrar of Companies  Certificate of Share capital  Official list of shareholders / directors  Proof of finance (audited financial statements, certificate of deposit at bank or latest bank statement)  Detailed Business Plan  Proof of having secured a place / land to operate from (Lease Agreements or Title Deed or Letter of Offer) Applications for a Certificate of Registration in some sectors of the Economy require proof that applications for subsidiary permits from relevant institutions or ministries have been lodged.

6.3 EMPLOYMENT LICENCES / PERMITS

The following employment licenses and permits are required in all sectors of the economy;

a) Investors permit

Immigration Headquarters are responsible for issuance of Investors Permits to deserving foreign investors. An application for the permit should be supported by the following documents:  Two passport-size photos  Bank statement  Valid copy of the company's certificate of incorporation  Copy of the certificate of registration issued by the Zambia Development Agency

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Luanshya District Investment Profile

b) Employment permit

Immigration Headquarters, may issue employment permits after an investor submits the following documents:  Certified copy of the applicant's highest education qualification and any other additional qualifications and certificate of employment from previous employers;  Letter from the prospective employer explaining steps taken to employ Zambian citizens to fill the vacancy

Zambia Development Agency (ZDA): It is the government agency which is responsible for investment promotion in Zambia. It provides information on investment opportunities available, incentives offered and scrutinizes foreign investment offers.

6.4 LAND CONSIDERATIONS

There are two categories of Land in Zambia: These are state and customary land. Land in Luanshya district is State Land which is administered by Luanshya Planning Authority. Luanshya Municipal Council under the Urban and Regional Planning Act of the laws of Zambia (2015) holds delegatory powers to administer all land within the district. However, this excludes land which is administered under the Mines and Minerals Act of Zambia.

There are various categories of land use in the district. These include;

 Mine land, which is administered under the Mines Act by the Mine Authorities in the district. This category is concentrated in Luanshya Central, Mpatamatu and Baluba areas, where most of the mining activities and plants are located.  Residential land; divided into High, Medium and Low Cost  Commercial land; situated in the main CBD and residential neighbourhoods  Industrial land; located 2km from the main CBD  Parks and open spaces; vacant and recreational spaces  Schools; primary, secondary and tertiary  Churches; mainly Christianity

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Luanshya District Investment Profile

 Agricultural land; comprising of gardens, smallholdings and farms most of which are located in the peripheries of the district

6.4.1 LAND ACQUISITION AND TRANSFER

The following are the ways in which land can be acquired and transferred in Zambia

a) Acquisition of State Land by Non Zambians A non-Zambian can acquire land under the following conditions;  He / She is a permanent resident in Zambia  He / She is an investor within the meaning of the ZDA Act or any other law permitting investment in Zambia  In exceptional cases, by Presidential consent in writing  A person registers a company under the Companies Act, with no less than 75% Zambian shareholding.  Title Deed will be issued in the name of the registered company.  Under a short term tenancy of not more than 5 years  If the person is granted concession or right – under the National Parks and Wildlife Act.

Before land can be bought or sold ‘State Consent’ must be obtained. The consent is issued by the Commissioner of Lands on application. If consent is not granted within 45 days of filing the application, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days.

Acquisition of land in an area designated as State Land will require consent of relevant District Council. Land, which does not fall within the jurisdiction of any council, can be alienated upon direct application to the Commissioner of Lands. He will then make a formal offer to the applicant, which will contain similar conditions to those obtaining in the offer made for an application of land situate in the Customary Area (ZDA-Investors Guide, 2013)

c) Purchase of Private Land

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Luanshya District Investment Profile

Land in private ownership can be bought and sold and title deeds issued by the Commissioner of Lands. In all instances ‘State Consent’ will have to be obtained by the vendor before title deeds can pass to the purchaser. Before land can be bought or sold ‘State Consent’ must be obtained. The consent is issued by the Commissioner of Lands on application. If consent is not granted within 45 days of filing the application, the application is deemed to be granted. If consent is refused, the reasons for refusal must be furnished to the applicant within 30 days (ZDA-Investors Guide, 2013)

TABLE 5: SHOWING KEY CONTACTS

S/NO. NAME ADDRESS TELEPHONE FAX EMAIL / WEBSITE 1. Patents and P.O. Box 260-211-255127 260-211- [email protected] Companies 32020, 255426 www.pacra.org.zm Registration Lusaka Agency (PACRA) 2. Zambia P.O. Box 260-211-220177 260-211- [email protected] Development 30819, 293223 www.zda.org.zm Agency (ZDA) Lusaka

3. Ministry of P.O. Box 260-211-256115 260-211- [email protected] Finance 50062, 250886 www.mof.gov.zm Lusaka

4. Ministry of P.O. Box 260-211- 252366 260-211- [email protected] Works 50236, 254108 www.mws.gov.zm and Supply Lusaka (MWS) 5. Zambia Revenue P.O. Box 260-211-223754 260-211- [email protected] Authority(ZRA) 35710, 222717 www.zra.org.zm Lusaka

6. Luanshya P.O Box 260-212-511950 511950 Luanshyamunicipal Municipal 90140 [email protected] Council

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