“Zambia and China have great potential to deepen cooperation in smart agriculture... ”

AMBASSADOR: The bilateral relations between the People’s Republic of China and the Republic of Zambia have been cordial, mutually beneficial, and characterised by mutual respect and trust. The People’s Republic of China was among the first countries that the Republic of Zambia established diplomatic relations with after attaining independence in October, 1964. In this regard, the Government of the Republic of Zambia has always supported the One China Policy, and has been collaborating with the Government of the People’s Republic of China on several matters of significance to the stability of the international community.

In the same vein, the People’s Republic of China was among the first countries that supported Zambia’s development ambitions immediately after the country gained independence. In particular, the People’s Republic of China supported the Republic of Zambia and the Republic of Tanzania in the construction of the Tanzania-Zambia Railway Authority (TAZARA) railway line which allowed Zambia to access the sea for its imports and exports. The TAZARA railway line has continued to be a key infrastructure for Zambia which the country utilises for transportation of a significant portion of its imports and exports.

The People’s Republic of China has continued to support the development of infrastructure in the Republic of Zambia. Most of the major infrastructure development projects in the Republic of Zambia, including airports and roads, have been undertaken with the assistance of the Government of the People’s Republic of China.

Since the establishment of bilateral relations between the two (2) countries, the Heads of State of the People’s Republic of China and the Republic of Zambia have undertaken State Visits to the other’s country. This was a precedent set by our founding fathers, Chairman Mao Zedong and President Kenneth Kaunda, and has been continued by our current Presidents. His Excellency President Hakainde Hichilema has visited the People’s Republic of China twice since becoming President of the Republic of Zambia in 2021. During President Hichilema’s visit to China in September, 2023, he held bilateral engagements with His Excellency President Xi Jinping, and the two Heads of State agreed to elevate the bilateral relations between the People’s Republic of China and the Republic of Zambia to a comprehensive strategic cooperative partnership. In the same vein, in September, 2024, President Hichilema and President XI, together with Her Excellency Ms. Samia Suluhu Hassan, President of the United Republic of Tanzania, signed a Memorandum of Understanding to revitalise the TAZARA railway line.

In addition, the People’s Republic of China has for a long time been among the key trading partners of the Republic of Zambia.  It is the second largest overall trading partner of in the Republic of Zambia. Accordingly, Zambia is among the countries that supply key raw materials for some of the industrial processes in China, including minerals such as copper, manganese and cobalt as well as agricultural products such as tobacco, cotton, and honey. In addition, China has been among the major sources of foreign direct investment for Zambia. Chinese businesses have been investing in various sectors of the Zambian economy such as mining, manufacturing and agriculture.

Apart from the areas I have mentioned, the People’s Republic of China and the Republic of Zambia have also enhanced people-to-people exchanges. This can be seen in the establishment of the Confucius Institute at the University of Zambia in Lusaka, as well as the decision by the Government of the Republic of Zambia to waive visa requirements for Chinese nationals visiting the Republic of Zambia. In addition, the Governments of the two (2) countries have continued to undertake exchange programmes aimed at sharing experiences and cultures of the two (2) countries. 

In a nutshell, I would say that the bilateral relations between the People’s Republic of China and the Republic of Zambia are indeed comprehensive and strategic in line with the agreement signed by President Hichilema and President Xi in 2023. In addition, the two (2) countries perceive and treat each as other equal partners in development.

AMBASSADOR: Zambia has earned itself a reputation as a peaceful nation with political stability that has been maintained since its post-colonial transition. This augments other advantages that the country enjoys for attracting investment, such as:

i. The country has over 20 Double Taxation Agreements signed with other countries. This helps to reduce the tax burden on foreign businesses and plays an important role in attracting Foreign Direct Investment (FDI). 

ii. As a land-linked country with 8 neighbouring countries, plus Burundi which is linked by an inland water body. Zambia is strategically located for trade opportunities with access to a regional market and the wider Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA). 

iii. Zambia’s high population of youth provides skilled and affordable manpower for various sectors. The prioritised health and education sector investment by the Government has further elevated Zambia’s human capital in the short, medium and long-term future. 

iv. On-going policy reform creates a conducive investment environment aimed at restoring macroeconomic stability for sustainable growth. This in turn encourages inclusive and diverse sector growth which improves and accelerates stable economic performance.

v. With the nation’s abundant natural resources, the country has made concerted efforts to make environmental sustainability a priority. 

vi. The presence of an investment promotion agency – the Zambia Development Agency (ZDA) - provides access to tailor-made solutions that include the development of investment promotion portals, detailed assistance with investment opportunities and easier access to information on necessary procedures and policies.

vii. Zambia has progressive banking and financial sector with international and domestic banks that are supported by a robust legal framework, stock exchange and insurance service sector. The country has a reputation for being a safe environment for conducting business. In addition, it has attractive fiscal incentives such as competitive marginal effective tax rates (METRs) and exemptions for qualifying capital inputs in certain assets across various industries.

AMBASSADOR: Zambia runs a private sector led economy. Chinese companies have invested in Zambia in mining, cement production, farming and many more. Zambia has also been trading with China through the importation of equipment and export of copper and agriculture produce. Chinese companies have participated in large scale projects such as road construction, construction of power generation plants, among others. Chinese businesses have also worked with the Zambian Government to develop Special Economic Zones such as the Lusaka East Economic Zone. All these are due to the larger friendship framework that China shares with Zambia. Chinese investment in Zambia have performed well and most of the Chinese business are expanding their operations in Zambia. You may wish to note that the relationship between China and Zambia was elevated to that of a Comprehensive Strategic Cooperative Partnership reflecting the strong bond between the two countries in all areas.

AMBASSADOR: Zambia’s priority sectors for investment are informed by the country’s National Industrial Policy which is also aligned to the Eighth National Development Plan as well as emerging issues of national and global interest. The priorities for foreign investment include:

i. Agro Processing;

ii. Engineering Product;

iii. Leather and Leather Products;

iv. Pharmaceuticals;

v. Textiles and Garments;

vi. Wood and Wood products; and

vii. Mineral beneficiation.

Supportive sectors to these priority sectors include Energy, ICT, Agriculture, Construction, Tourism, Education and Health. In the highlighted areas, the policy seeks to achieve Value addition, Diversification, Export growth Technology acquisition, Local content, Public and private investment, Use and growth of domestic capacities, Quality and innovation. However, with the drought that was experienced in the 2023/24 rainy season the country experienced food shortages. Further, due to an energy mix that is predominantly hydro, about 85 percent, the drought meant poor generation capacity which also led to a critical shortage of electricity. Automatically food and electricity became investment priorities for the country. Further, the need for creating employment for the youth and the population has also enhanced the need to create jobs. Sectors that can guarantee jobs have also become priority for the country. Therefore, in addition to the priorities in the NIP infrastructure, energy, agriculture and tourism are among the priority sectors. 

AMBASSADOR: Zambia and China have great potential to deepen cooperation in smart agriculture, innovation and technology, particularly in renewable energy, digital infrastructure and e-commerce. 

One key area for cooperation is agricultural modernization and technology transfer. Zambia's agricultural sector, a major contributor to its Gross Domestic Product and a source of livelihood for many Zambians, faces challenges such as drought and manual farming practices. China's expertise in irrigation systems, high-yield seeds, smart farming techniques, and rural development models offers a benchmark for Zambia to enhance productivity, ensure food and nutrition security, and create jobs. Explicitly, Zambia seeks to mechanise its agriculture as a way to improve productivity. Agriculture mechanisation is one way the two countries can collaborate. Cooperation in this area is underway with the signing of a Memorandum of Understanding (MoU) on Agricultural Technology Cooperation among Zhongyang Holdings Group, University of Zambia and Ministry of Agriculture on the Agricultural Technology Demonstration Center, focusing on seed resource conservation, agricultural technology research and application, product processing, soil improvement, and specialized breeding techniques.

Despite Zambia possessing abundant solar resources, with an average of 2,000 to 3,000 hours of sunshine per year, solar energy accounts for a relatively small portion of the country's energy mix, offering vast opportunities for Chinese enterprises to invest in solar power, off-grid energy systems and digital connectivity in rural areas, while exploring joint research and development partnerships with Chinese tech hubs and universities. 

This can be done through technology transfer initiatives, technical training and exchange programmes as this would build local capacity in digital marketing and e-commerce platforms. In the digital sector, Zambia is also open to collaboration on smart city solutions and e-learning platforms, drawing on China’s advances in 5G and artificial intelligence.

AMBASSADOR: The Government of Zambia has undertaken a range of investor-friendly reforms, including streamlining business registration, enhancing public-private partnerships with the creation of institutions like the Presidential Delivery Unit (PDU) and Public-Private Dialogue Forum (PPDF), providing tax incentives in priority sectors and establishing the Zambia Development Agency (ZDA) as a one-stop platform for investment facilitation. Furthermore, Zambia continues to promote political stability, policy consistency, infrastructure development and ensuring stable macroeconomic fundamentals to create a conducive investment environment. The promotion and creation of Multi-Facility Economic Zones (MFEZs) provide ‘plug and play’ infrastructure to attract investors who do not want to waste time looking for land. The Government also tax breaks and other incentives for investors in MFEZs, both private and government, and rural areas. The government also regularly hosts investment forums and has signed bilateral agreements to protect and promote foreign investments. 

AMBASSADOR: Zambia is endowed with rich cultural diversity and breathtaking natural beauty, including the UNESCO World Heritage Site Victoria Falls (Mosi-Oa-Tunya), twenty (20) national parks, thirty-six (36) Game Management Areas and a vibrant calendar of traditional ceremonies all year round. As a peaceful and welcoming country, Zambia offers unique experiences for tourists seeking adventure, wildlife safaris and cultural immersion. The government continues to promote Zambia as a premier destination for eco-tourism and cultural exchange.

For example, tourists can experience the Kuomboka Ceremony of the Lozi people or visit the Victoria Falls. Zambia’s South Luangwa and Lower Zambezi National Parks are also among Africa’s top safari destinations, offering exceptional wildlife viewing in unspoiled landscapes.