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China Zambia Park: Building the Belt and Road Initiative with friends from afar
Seetao 2022-04-29 10:15
  • China-Zambia Cooperation Park promotes the development of Zambia's cotton industry
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Zambia is one of the important partners in the construction of the Belt and Road Initiative and an active participant of the Forum on China-Africa Cooperation. Zambia Agricultural Products Processing Cooperation Park is both a participant and a beneficiary of China-Zambia cooperation. The park not only promotes the development of Zambia's cotton industry, but also provides sufficient employment opportunities for the local people with significant social benefits. It has become a bridge between China and Zambia, deepened the cooperation between China and Zambia, and set an example for Chinese enterprises to develop in Africa.

In April 2015, the Zambian Agricultural Products Processing Cooperation Park officially started construction, with a total area of 642,000 square meters, divided into two areas: Chipata Park and Petuk Park. The cumulative investment is currently about 28.5 million US dollars. After several years of construction, the infrastructure of the park has been gradually improved, with a construction area of about 20,000 square meters including workshops, warehousing, offices, and living rooms. And provide information consultation, operation management, property management, emergency response and other services for the settled enterprises. The most important thing is that the park has stable cotton purchase and sales channels, and the agricultural resources available to the settled enterprises can meet the needs of the park's sustainable development, processing and trade. At present, 5 agricultural product production and processing enterprises have settled in, mainly involving the cotton processing industry.

Judging from the local situation, the Zambian government welcomes foreign investment and has formulated a set of incentive policies to create a favorable investment environment and promote domestic economic growth. Zambia encourages exports, implements zero value-added tax on all agricultural products, and can enjoy certain export tax rebates; for imported materials, especially agricultural machinery and accessories, you can enjoy import tax rebates below 15%.

From the perspective of market breadth, Zambia is adjacent to 9 countries including Zimbabwe and Tanzania, and is also a member of the Southern African Development Community (SADC), which allows settled enterprises to better access other African markets. The park could serve as a springboard for Chinese investors to enter other markets. Both the EU and the US can import goods from Zambia other than 5G products under corresponding agreements in the Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa/Free Trade Area (COMESA/FTA) and the African Growth and Opportunity Act (AGOA). Chinese companies investing in Zambia can gain access to the European and American markets. At the same time, Zambia has banking, financial, legal and insurance services that implement international standards, as well as a stock exchange, and has signed double taxation agreements with many countries in Europe, North America, Africa and Asia. Keywords: One Belt One Road, One Belt One Road News, One Belt One Road Project

In 2020, the new crown pneumonia epidemic has caused the park's investment promotion work to stagnate, and most of the settled enterprises have stopped production. Chinese employees are less willing to work in Zambia due to the limited local sanitation and medical standards. In addition, the epidemic has led to restrictions on international flights, soaring shipping costs, and problems such as backward agricultural irrigation infrastructure, difficult personnel management, and cultural differences in African countries. Domestic companies lack confidence in investing in Africa, slowing down the pace of park construction. But on the whole, as the first country in southern Africa to establish diplomatic relations with the People's Republic of China, Zambia has now become an important development fulcrum to promote the construction of the Belt and Road. Once the epidemic is under control, the Zambian Agricultural Products Processing Cooperation Park will have more prominent advantages and continue to play an important role in the construction of the Belt and Road Initiative.Editor/XuNing

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