DESPITE the global economic crisis that has led to many company closures the world over and left many people jobless, some companies have remained unshaken.
Recently, three local companies announced their investment in various sectors of the economy to the tune of US$90 million which is expected to create job opportunities and add to economic development.
The three local investments were granted Government protection and assurance after signing the Investment Protection and Promotion Agreement (IPPA) with the Zambia Development Agency (ZDA).
The companies include ETC Bio-Energy Limited, with an investment of $56 million in the establishment of a vertically integrated bio-diesel operation by growing jatropha in Mpongwe on the Copperbelt.
Others are JJ Transport, with an investment of $16 million dollars to operate a fully-fledged modern and efficient transport company with quality assurance technology, including satellite tracking facilities in conformity with modern technology and Progressive Poultry Limited, with an $18 million investment for the establishment of a modern broiler breeder farm and hatchery.
The biggest of all these investments, despite their complementary contribution and importance to the country’s economy is ETC Bio-Energy Limited, a subsidiary of Export Trading Company, which marks yet another milestone in the history of the company and the country at large.
This is because the company has diversified and increased its investment in the production of bio-diesel from the jatropha plant despite the prevailing global economic crunch that has led to the closure of some companies, especially in the mining sector.
The investment and diversification is also in tune with Government’s investment and diversification policies aimed at further growing the economy and cushioning the country from the effects of the world financial crisis.
ETC Bio Diesel country manager Ashok Arora says the company intends to invest $56 million in the bio-energy project and will create many jobs.
The company acquired the land previously owned by Mpongwe Development Company in October 2006.
The land consists of three title deeds on 46,000 hectares and is approximately 90km south of Luanshya town on the Copperbelt.
“We will invest $56 million in the bio-energy project and create employment in excess of 2,500 jobs for Zambian nationals at various levels,” Mr Arora said.
He further explained that Mpongwe estate was used mainly to produce food crops on the 10,500 hectares.
Seven per cent of the estate was developed for housing, storage, processing, and infrastructure while the rest of the estate, which accounts for 70 per cent, was left undeveloped.
He said ETC Bio-Diesel Limited bought Mpongwe Development Company for the sole purpose of developing the estate over the next 10 years.
The planned developments include increasing the land cultivated under food production from 10,500 to 11,500 hectares.
Other projections include increased food production capacity by boosting irrigation from 2,700 to 3,000 hectares to enable two food crops production cycles per season on the same land.
The company further intends to develop 12,000 hectares of unused land on the estate by planting oilseed bearing trees like jatropha for the production of bio-fuel and bio-mass electricity.
This includes stimulating growth in the community by commencing a Jatropha out-grower programme up to 4,000 hectares and build processing and storage facilities on the estate for making bio-fuel and electricity.
The investment in bio-diesel is timely as Zambia has continued to import thousands of litres of diesel.
The production of bio-diesel will not only result in immediate benefits such as employment opportunities but in many other benefits.
Mr Arora observed that Zambia was expected to witness a reduction in diesel imports as it was expected to supply the entire Copperbelt Province and sustain the operations of the company once the company is in full operation.
“Once the company begins full operations in three years time, we will be producing a total of 25 million litres of bio-diesel per year.
“This amount of production is expected to save the country’s foreign exchange reserves up to $8 million per year.”
Commerce, Trade and Industry Minister Felix Mutati is cheered by this prospect and pledges Government’s total support by providing appropriate and specific incentives for the growth of such ventures.
Mr Mutati said the Government is committed to ensuring that investments in the country are protected and secured.
He said Zambia has remained a prime destination for direct investment despite the harsh global economic trends that have impacted negatively on most economies in the world.
“Despite the current economic difficulties, we are ahead of other countries in terms of attracting investments.
“And I wish to assure all our investors that we shall not waver in creating conditions ideal for investment in Zambia,” he said.
Like other countries in the world, Zambia has not been spared from the harsh effects of the global economic crisis that has resulted in job cuts as companies, especially the mines, struggle to survive.
However, the Government has continued to provide a favourable investment environment to encourage investment in various sectors of the economy.
This is also aimed at promoting diversification as a long-term measure to cushion the effects of the financial crisis and create more jobs.
The initiative by ETC Bio-Diesel Limited to invest in the agriculture sector with the aim of producing bio-diesel from jatropha is a product of the various measures the Government has put in place to mitigate the effects of the global economic crunch.
The company has given hope to many families whose bread winners might have lost jobs on the Copperbelt as it creates over 2,500 jobs and also provide wealth creation opportunities for small-scale farmers that will engage in the planned jatropha outgrower scheme in Mpongwe.
Zambia Development Agency (ZDA) executive director Glyne Michelo says the prevailing investment climate in the country will continue to attract investors.
He said the signing of the IPPAs between the ZDA and the three investors is testimony of the good investment climate in the country despite the global financial meltdown.
“Zambia has continued to receive investments despite the prevailing global economic crisis, this is a sign of better things to come,” Mr Michelo added.
He further said that the three investments could complement one another because their products and services are complementary in delivering the final product.
Since ETC Bio-Diesel Limited will supply bio-diesel, it is expected that JJ Transport Zambia Limited and Progressive Poultry Limited will buy off the fuel and likewise, all the three companies will have an integrated relationship.
“So, you can see that there is a ready market for all their products,” Mr Michelo said.
The establishment of ETC Bio-Diesel Limited for the extraction of bio-fuels from jatropha is indeed a milestone and a solution to Zambia’s economic challenges and environmental concerns that are posed by the current conventional fossil fuels which are said to contribute to global warming.
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