MASAITI TOWN COUNCIL

INVESTMENT PROFILE

Table of Contents Investment Overview ...... 2 1.0 PART I ...... 4 1.0 INTRODUCTION ...... 4 1.1 Geographical ...... 4 1.2 District Council and Political System ...... 5 1.3 Demography ...... 5 1.4 General Physical Characteristics ...... 7 1.5 Climate and vegetation ...... 7 1.6 Vision and Mission ...... 8 1.6.1 Mission Statement ...... 8 1.6.2 Investment Policy ...... 8 2.0 THE ECONOMY OF THE DISTRICT ...... 8 3.0 REASONS TO INVEST IN DISTRICT ...... 9 4.0 PART II ...... 10 4.0. MAIN INVESTMENT OPPORTUNITIES AND AREAS ...... 10 INTRODUCTION ...... 10 4.0 PROFILE AND MAIN AREAS OF INVESTMENT OPPORTUNITIES ...... 10 4.1. DRY PORT ...... 10 4.2 AGRO-PROCESSING INDUSTRIES ...... 10 4.3 LAND ALLOCATED FOR HOUSING ESTATES AND COMMERCIAL COMPLEX ...... 11 4.4 INFRASTRUCTURE DEVELOPMENT ...... 12 4.4.1 Transportation network ...... 12 4.4..2 Roads ...... 12 BUS TRANSPORT ...... 12 4.5 CHANKUTE AND CHIWALA INDUSTRIAL AREA ...... 13 5.0 PART III ...... 16 5.0 INVESTMENT POLICY AND INCENTIVES ...... 16 5.1 Investment Incentives ...... 16 5.2 Investment Under The Development Agency Act ...... 16 5.3 Incentives Available To Foreign Investors ...... 17

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Preface

Masaiti Town Council aims at providing high quality service to its people. And this can be done through facilitating and coordinating maintenance of peace, order, and provision of high quality socio-economic services to its people sustainably in a participatory manner which are derived from participatory approach, democracy, good governance and rule of law and through the use of opportunities and proper use of available and future resources so as to improve the quality of the life and increased income by 2030. To achieve this aspiration, the Council is aiming at facilitating the utilization of investment resources so as to be able to generate revenues to finance services. In essence, the investments will create employment opportunities around invested areas.

Therefore the investment profile document is prepared in order to inform all potential investors on the types, potential market and land available for investments in the Town. Despite the fact that the Council has many potential opportunities for investments, but still focus on small and medium scale processing industry and agriculture.

Other potential areas for investments include food and cash crops production, beekeeping and fruit production. There is reliable market for these products mainly available in the copperbelt region and other corners of Zambia and abroad. The council is developing a system which will enable the investor to obtain all necessary information regarding investments, facilitation in land acquisition as well as procedures for obtaining license.

Investment Overview This profile identifies investment opportunities available to local and foreign investors in Masaiti Town Council. The opportunities identified are arable land for seasonal agriculture and irrigation farming (suitable for cultivation of paddy, sunflower, maize, millet, sorghum, cassava, sweet potatoes, ), Minerals (Limestone , cooper), surveyed land for hotels, camp sites, industries, education institutions, hospitals.

The profile is divided into three parts. The first introduces the General information of Msaiti Town Council (Location, latitude, size of the Town Council and Population Density, Divisions in terms of Wards). The second part introduces opportunities for investment and third part describe Policy and incentives available to investors (Availability of Telecommunication, social services, road networks, legal framework.

This investment profile is a public document prepared as a guide and available to all interested parties wishing to know the investment opportunities in Masaiti Town Council. The Council

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heartily welcomes all investors both local and foreign with the hope that investments will foster economic expansion, diversification and integration; create social benefits.

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1.0 PART I

1.0 INTRODUCTION

1.1 Geographical Masaiti is a District situated on the of Zambia. The District was created from the Rural District under Statutory Instrument No. 30 of the Local Government Act No. 22 of 1997. Ndola Rural District was split into three districts namely; Lufwanyama, and Masaiti Districts. The district shares borders with six other districts – and Ndola districts in the north, in the South East, District in the south, in the south west and in the west. The district also shares an international boundary with the Democratic Republic of Congo (DRC) in the east. The District covers a total area of about 5,383 km2. Map of Zambia showing position of

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1.2 District Council and Political System The Masaiti Council is comprised 17 elected Councillors and three Chiefs namely; Senior Chief Chiwala, Senior Chief Mushili and Chief Nkambo. Out of all the 17 wards there are 94 Polling Districts in total in Masaiti.

1.3 Demography Masaiti has a total population of 103,857 people of which 51% are male and 49% female, and the annual population growth rate is 0.8%.The district has 20,511 households of which 4,466 are female headed and the average household size being 5.1 persons per household. Masaiti being a rural district has a very small urban population of only 2,A people with only

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405 households out of which 95 are female headed. The district is well endowed with labour supply about, 50% of the population is in the productive age group. (CSO: Census 2010).

Population Distribution in Kafulafuta Constituency by Ward Number of No. Ward Households Females Males Total 1 Mwatishi 1,990 2,902 2,846 5,748 2 Majaliwa 1,352 3,465 3,427 6,892 3 Chondwe 1,884 4,637 4,709 9,346 4 Mutaba 1,261 3,404 3,393 6,797 5 Miengwe 1,661 4,370 4,360 8,730 6 Ishitwe 935 2,434 2,299 4,733 7 Katonte 119 434 389 823 Totals 8,402 21,646 21,423 43,069

Population Distribution in Masaiti Constituency by Ward No. Ward Number of Male Female Total Households 1 Chinondo 610 1,713 1,660 3,373 2 Luansobe 989 2,834 2,709 5,543 3 Kashitu 1,482 3,789 3,731 7,520 4 Shimibanga 1,408 3,474 3,629 7,103 5 Chilulu 694 1,620 1,698 3,318 6 Miputu 986 2,276 2,229 4,505 7 1,111 2,850 2,824 5,674 8 Masangano 1,856 4,535 4,538 9,073 9 Mishikishi 1,184 2,928 3,171 6,073

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10 Lumano 1,789 4,352 4,228 8,580 Total 12,109 30,371 30,417 60,788

1.4 General Physical Characteristics

Relief and Drainage

Masaiti is part of the African High Plateau, specifically the Central African plateau, just like the rest of Zambia. Hence, Masaiti is generally a plateau and most of the areas are in the Highveld or land above 1,200 metres above sea level. There are some hills that rise above this Highveld such as those in the Fiwale and Kashitu areas. Lowlands are mostly rivers and lake valleys.

The district lies in the river basin and has three major rivers, that is, Kafue, Kafubu and Kafulafuta Rivers. makes the northern boundary with . It runs in the south-western direction into Kafue River. It is the source of water supplied to Masaiti Council Township and several farmers that live along its banks.

Kafulafuta River runs almost through the middle of the District, flows in the western direction into Kafubu River. It however forms part of the district boundary with Mpongwe district. It is the main source of water for the Boma Township and Ibenga area in Mpongwe.

A number of perennial rivers and streams are also found in the District. One of these is Lwankuni stream, which makes boundaries with Mpongwe District and flows in the south- western direction into Kafulafuta River. Others are Munkulungwe waba Mushili and Munkulungwe waba Koba Rivers which flow into Kafubu River.

The District also has a small natural sunken lake called Chilengwa sunken Lake which in the eastern part of the district in Chiwala area. This is a natural wonder and if nurtured can be a tourist attraction in the district.

1.5 Climate and vegetation

The District lies in the tropical grassland region and experiences the savanna type of climate just like the rest of Zambia. The climate is characterized by three distinct seasons namely hot-wet (rainy) season (November to April), cool dry season (May to July), and hot-dry season (.August to October).

The District is in Region III of Agro-Ecological Zones of Zambia with an average annual rainfall of 1,100 mm. The length of the growing season is about 150 days. The average start of the growing season is usually mid-November and ends in late March to early April. The relative

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humidity is approximately 45% for many months, rising to 80% or more between December and February.

The annual mean maximum temperature is 29.5 Celsius and the annual mean minimum temperature is 12.1 degree Celsius.

The wind speeds appear to average about 3 knots over the year and therefore seems little potential for wind-powered generators or windmills.

The predominant vegetation type generally consists of deciduous woodland forest and savannah grasslands. There are various species of vegetation peculiar to the Savannah. However, the indiscriminate cutting of trees for charcoal and timber pause a great threat of deforestation and general environmental degradation which would upset the hydrological cycle and soil fertility and structure.

1.6 Vision and Mission The vision: is to ensure improved standard of living for all the people of Masaiti by the year 2030’. maximum utilization of investable resources in Masaiti District for wealth creation and uplifting the quality of life in Masaiti and Zambia as a whole within The vision of Masaiti District Council is to improve the quality of life and accessibility to public services in order to uplift the standard of living in the District.

1.6.1 Mission Statement To improve the standard of living for all the people in Masaiti District by providing effective, efficient and sustainable public services in a transparent and accountable manner.

1.6.2 Investment Policy The Investment Policy Objective of the District Council is;

Attract investors to ensure their maximum utilization and development of Masaiti District, to reduce poverty within the communities.

2.0 THE ECONOMY OF THE DISTRICT

THE Livelihoods and the economy of Masaiti District is dominated by agriculture and natural resource based activities like forestry, fishing and Limestone mining.

Agriculture has been the predominant economic activity of the district for so long not until in recent years. The majority of farmers in the District are small to medium scale farmers engaged in crop production, poultry ,livestock and fish farming. The main crops grown are maize, sorghum, groundnuts, sweet potatoes, beans and cassava. There are few established large scale

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farmers in the district. Notable among them are Quick Save and Miengwe Farms which are both into ranching and meat processing.

In the past four years the district has undergone massive industrialization, mostly in lime and cement manufacturing. There are also some sand and stone quarrying and stone crushing activities in the District..Masaiti is witnessing enormous economic growth as a result of mineral deposits such as limestone which the rural Copperbelt is endowed with. Over the past five years the district has attracted a number of companies that have set base in the area. Such firms include Nigerian conglomerate Dangote industries which commissioned a us$ 400 million cement plant, neelkanth lime limited and handymans paradise which produce lime..

3.0 REASONS TO INVEST IN MASAITI DISTRICT The District has a relatively well developed agricultural base of intensive small holder production of food crops. It has economic advantages from its location in terms of transport, communications and power supply corridor linking Masaiti Town to other urban centers in Zambia . The District is rich in natural resources such as limestone and vast Agriculyural land . The people of MASAITI have industriously used their resources to provide food, fuel and other raw materials to neighboring districts and regions as well. The natural resource and location advantages need to be put in us for alleviation poverty and fostering socioeconomic development of a growing population. Appropriate investments are necessary to achieve economic growth, improve house hold incomes and the well being of people.

Masaiti Town Council seeks to assert Masaiti District’s role as an engine of economic growth. The main purpose of Masaiti Town Council is to deliver development and socio-economic services that will raise income per capita and empower Masaiti population through better use of locally available resources. Its mission is to assist investors in their investment activities. An emerging “public private partnership” in development underpins its economic emergence . More investment is the instrument for consolidating and strengthening this process. The investment opportunities and specific projects in various sectors are as follows:

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4.0 PART II

4.0. MAIN INVESTMENT OPPORTUNITIES AND AREAS

INTRODUCTION

The availability of diverse natural resources, good transportation infrastructure, connection to the national power grid, cheap and plentiful labour supplies and the location of Masaiti District between the major commercial and industrial areas of copperbelt and central provides many opportunities for investments in economic activities. In particular, the fertile soils and favorable climates and the availability of plenty of water and irrigation potential provides several opportunities to further expand and diversify the district’s agricultural economy. The conditions to expand beef ranching and dairying are also favorable.

This chapter identifies the main investment opportunities and areas in Masaiti district. These bus transportation and storage of goods; dry port , agro processing industries , honey processing and marketing, cement production ; limestone mining and industrial minerals, development of hotels.

4.0 PROFILE AND MAIN AREAS OF INVESTMENT OPPORTUNITIES

4.1. DRY PORT Transportation and Storage of goods

Proposed Products Construction of dry Port

Potential target areas/Locations Available land at Chankute The area has potential for a construction of a Regional Port

Ancillary Investment - Accessible by road which connected to the high ways in neighboring districts . Electricity from the national grid is available

4.2 AGRO-PROCESSING INDUSTRIES Proposed Products Establishment of processing plant for agriculture products Potential target areas/Locations Available land in Chief Mushili’s Area

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4.3 LAND ALLOCATED FOR HOUSING ESTATES AND COMMERCIAL COMPLEX Product Construction of housing estate or commercial complex Potential target areas The area is located in Chankute Township which. The total area of Chankute is 3000 hector and has been zoned for industrial, commercial , residential and other special user stands. The area is located 35km from Ndola City and is easily accessible by road. Market situation Masaiti is a growing Town with high demand of accommodation. Target market Employees from different institutions, individuals, Future expectations Demand will tend to be high due to various offices to be opened and operated in Masaiti and this is due to various economic potentials available. This investment will then solve to some extent problem of housing (accommodation) in Masaiti.

Energy and communication The site has all necessary facilities including electricity, road and water. There also available communications (telephones). Quality demands Expecting to deliver services with high quality which will meet International standards of real estates Other expected investment To improve availability of other services like Internet café, shops/markets and communication services Type of investor Strategic Investor with capital to construct housing estate/commercial complex, experience and operational strategy

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4.4 INFRASTRUCTURE DEVELOPMENT

Masaiti Town Council is one of the rural areas on the copperbelt ,. Infrastructure to reach the council is below standards and is an impediment to growth in the area.

4.4.1 Transportation network

There is 1 mode of transport serving the area of Masaiti Town Council which include:- roads.

4.4..2 Roads

The transport system has failed to meet the demand of the Town Council and has contributed a lot to slow development of the area. Currently there is on going initiatives to upgrade tarmac roads linking Masaiti to the Ndola via the Lusaka – ndola dual carriage way .

BUS TRANSPORT Product Developing infrastructure and facilities for passengers and other passenger users including bank services, hotels and shops Potential target areas The area is located in Chankute Township which. The total area of Chankute is 3000 hector and has been zoned for industrial, commercial , residential and other special user stands which includes space for a bus terminus. The area is located 35km from Ndola City and is easily accessible by road. Market situation There will be a high demand of such facilities because currently there is no such services Energy and communication The site has all necessary facilities including electricity, road and water. There also available communications (telephones).this site is adjacent to main road (Ndola – Kabwe road). There is opportunity of producing electricity from other sources like gas and diesel rather than the electricity produced by ZESCO.

Target Market Demand for newly constructed stand facilities will be high and the target group are passengers, people around drivers and other workers of the buses. Market imperfection There are several expenses required to initiate the development of the infrastructure and facilities supporting the stand

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Quality demands High quality Hotel services with International standards, peace and security Type of investor Strategic Investor with capital to construct housing estate/commercial complex, experience and operational strategy

4.5 CHANKUTE AND CHIWALA INDUSTRIAL AREA 4.5.1 INDUSTRY – CEMENT FACTORY.

Product The area is suitable for establishment of small industries for production of different goods like clothes, oil, food storage etc and Cement for construction

Potential target areas The area is part of the planned industrial area located at Chankute and Chiwala areas . It is located about 35 km and 10 km from Ndola City centre respectively . It occupies about 678 Ha and 103 Ha planned commercial and industrial area respectively. Land for investment in cement peoduction is readily available through his royal highness Chief Chiwala who is a partner in the development of the district and has opened up his chiefdom for such kind of investment as the Dangote industries is hosted in his chiefdom. Energy and communication The site has all necessary facilities including electricity, road . There also available communications services (telephones and internet).

Target Market The Market situation Markets for cement and lime are available; for government/private institutions/ individuals and for export. The target market is the population of Masaiti city, neighboring Districts and Regions including Democratic Republic of Congo. Transport Easy Transportation of goods and resources due to availability of good road network,

Quality demands Quality goods which meet International standards of the goods produced

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Type of investor Private sector with capital to invest in Industrial business is invited ,Recommended Investors with enough capital and experience with the industry; interested investors should also be able to provide social services, and environmental protection

NEW TOWNSHIP LAYOUT PLAN CHANKUTE LAYOUT PLAN

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4.6 HONEY PROCESSING

Bees The availability of varieties of bees in the area of Masaiti District is potential. Beekeeping is one source of income for the people in the Council, yet this opportunity is not well exploited. Efforts have been made by the Council to educate the community on the importance of beekeeping in order for them to utilize this opportunity as income generating activity. The potential areas for beekeeping areForest for bee keeping at Kansamfu in chief Chiwala’s area,Katanino in chief Nkambo’s areaand Miengwe forests.

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5.0 PART III

5.0 INVESTMENT POLICY AND INCENTIVES The central government and the Town Council are keen to promote local and foreign investment to stimulate economic growth, reduce poverty and obtain more social and economic benefits, especially in the rural areas where most people live. These areas describe investment incentives that have been adopted, and there are policies, management procedures and a legal framework to facilitate investors and economic activities in Masaiti Town Council.

5.1 Investment Incentives Zambia has now opened the doors for foreign investment both in terms of foreign direct investment and portfolio investment. In line with the economic reforms, Zambia is encouraging private investment in all major productive sectors including agriculture, mining, manufacturing, tourism and energy. It has introduced new economic policy measures, liberalised open market trade and investment conditions. Export processing zones have been established and applications for zoning are being encouraged. Zambia also has numerous opportunities for investment in the agro-industry (horticulture and floriculture, tobacco-processing, cotton-ginning, crop production for the processing industries); in industry (consumer goods); in tourism (holiday accommodation, managed safaris, licensed hunting safaris and organised holidays).

5.2 Investment Under The Zambia Development Agency Act Zambia has now opened the doors for foreign investment both in terms of foreign direct investment and portfolio investment. In line with the economic reforms, Zambia is encouraging private investment in all major productive sectors including agriculture, mining, manufacturing, tourism and energy. It has introduced new economic policy measures, liberalised open market trade and investment conditions. Export processing zones have been established and applications for zoning are being encouraged. Zambia also has numerous opportunities for investment in the agro-industry (horticulture and floriculture, tobacco-processing, cotton-ginning, crop production for the processing industries); in industry (consumer goods); in tourism (holiday accommodation, managed safaris, licensed hunting safaris and organised holidays).

In a bid to encourage investment in Zambia, the Parliament has enacted a number of statutes that are meant to facilitate and promote investment within the Zambian economy. The primary legislation for investment in Zambia is the Zambia Development Agency Act, No. 11 of 2006 (ZDA Act).

The ZDA Act provides for the establishment of the Zambia Development Agency (the Agency). The Agency is pivotal to the economy in that it functions to foster economic growth and

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development by promoting trade and investment in Zambia, through an efficient, effective and coordinated private sector. The ZDA Act also aims at streamlining bureaucratic procedures and requirements faced by investors. It facilitates industrial infrastructure development and local services as well as, promotes greenfield investments through joint ventures and partnerships between local and foreign investors. The Agency also ensures that the private sector takes advantage of the benefits from international and regional trade agreements.

The incentives are broadly standardized to avoid the high administrative costs associated with a large number of incentives differentiated by activities and sectors. They are also performance based depending on sector and thus will be available to investors subject to the satisfaction of performance criteria. This performance will largely be reflected in the investment plans submitted by the investor and agreed upon with ZDA

5.3 Incentives Available To Foreign Investors In a bid to promote investment in Zambia, the ZDA Act provides for a number of substantial incentives available to both local and foreign investors. These incentives are valid for a period of five years from the time the licence or permit is granted by the Agency. The first form of incentive given under the Act involves taxation; an investor who invests not less than US$ 500,000 or the equivalent in convertible currency, in a priority sector or product, is entitled to incentives as specified by or under the Income Tax Act, Cap. 323 or the Customs and Excise Act, Cap. 322. Furthermore, any machinery or equipment acquired by a business enterprise conducting operations in a priority sector, priority products, or a rural enterprise will be entitled to exemption from customs duties as specified by the Customs and Excise Act.

Where a major investment occurs, the Finance minister may specify additional incentives for investment in an identified sector or product of not less than US$10,000,000, or the equivalent in convertible currency, in new assets that qualify for those incentives.

Masaiti Town Council has complied with the provision of the Urban and Regional Planning Act No. 3 of 2015 whereby development consent and Building Permit are issued within the application period. The land allocated to any developer under the statutory right at occupancy may be revoked under the following groups; upon breach of terms and condition subject to which any right of occupancy has been granted. Renovation for the

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public interest, the may acquire any land for the public interest.

Masaiti Town Council is committed to attract and support investments by foreign and local investors and has identified several types and areas for investment in the Council. It adheres to the national programmes, incentives and procedures to attract, facilitate and manage investments and has also adopted some local incentives to complement them, especially in the allocation of land, access to infrastructure and information. It is also committed to improving the infrastructure and the development of education services to support investments in economic activities.

Thus, investors from within Zambia and all over the world are warmly welcomed and encouraged to Invest in Masaiti Town Council area

Important Contact Details;

Council Secretary,

P. O. Box 50, Luanshya Mpongwe Road.

Tel: +260 977891010

Email: [email protected]

District Planning Officer

P. O. Box 50, Luanshya Mpongwe Road.

Tel: +260 976824200

Email: [email protected]

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