ls-mfez: Special industrial region
Published On July 15, 2015 » 3113 Views» By Administrator Times » Opinion
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THE Lusaka South Multi-facility Economic Zone (LS-MFEZ) says it expects more than 400 enterprises to set up base in the zone in the next few years.
From the investments, more than 100,000 job opportunities are expected to be created at the facility.
Interestingly, the MFEZ has already received 130 expressions of interest from various companies to invest in the zone.
It is further exciting to note that the LS-MFEZ Board has already approved 16 of the would-be investors for the zone.
The LS-MFEZ is being promoted by the Government of Zambia.
The development of the facility is being undertaken under the Public Private Partnership policy framework.
The construction of the LS-MFEZ, a 2,100-hectare area, is being done in five phases.
Given the projections, what is even more encouraging is that it is only one of the six such facilities in the country!
The MFEZs are being implemented in various parts of Zambia to spur economic development.
According to the Ministry of Commerce, Trade and Industry, the MFEZ programme falls under the auspices of the Triangle of Hope (ToH) initiative, which was introduced to Zambia in 2005 by Japan through the Japan International Corporation Agency (JICA).
To date, apart from LS-MFEZ, the ministry has declared five other areas as MFEZs or Industrial Parks.
These are Chambishi in Kalulushi, Lusaka East in Lusaka, Lumwana in Solwezi, sub-Saharan Gemstones Exchange in Ndola and Roma Industrial Parks in Lusaka.
Developments for these facilities are at different levels with Chambishi being in the most advanced stage.
The Chambishi MFEZ has been undertaken by China Non Ferrous Metal Mining Company Limited.
The zone has already housed many enterprises with a total investment outlay of more than US$800 million.
These enterprises have created thousands of jobs and more are expected.
The Lusaka East MFEZ, which is located adjacent to the Kenneth Kaunda International Airport, is an extension of the Chambishi MFEZ and will focus on light manufacturing activities and services.
The Lumwana MFEZ, which is yet to be developed, will focus on light and heavy industries.
About US$1.2 billion was earmarked for development targeting 13,000 jobs.
The sub-Sahara Gemstone Industrial Park situated in Ndola on the Kabwe – Ndola Highway enjoys developed premises previously owned by Ndola Precious Metals.
The Roma Industrial Park, situated near the Roma residential area, is another Industrial Park which will house light industries, a retail park, office park and warehousing.
The total project cost is estimated at $46 million, targeting to create 2,800 jobs.
These MFEZs are special industrial zones for the manufacturing of goods for the local market as well as for foreign ones.
Considering that the initiative was introduced to achieve economic development by attracting significant domestic and foreign direct investment (FDI), the Government is on the right track in continuing to promote them.
This is because the implementation of MFEZs in Zambia is designed to make the country more competitive through increased activities in the trade and manufacturing sectors.
This, no doubt, will have numerous positive spillover effects on other sectors like utilities, transport, agriculture and services.
Given the well-appointed infrastructure in place, the MFEZs are able to attract and facilitate establishment of world-class enterprises.
Generally, the MFEZs blend the best features of the free trade zones, export processing zones and the industrial parks/zones concept.
The blending of physical infrastructure with an efficient and effective administrative infrastructure will create the ideal investment environment for attracting major world-class investors.
Given the current eroded manufacturing base in the country, we believe that the MFEZs will help to revamp that sector. OPINION

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