The European Delegation launched an EU Investment Mapping Study with the following objectives:
• To identify the main EU firms established or trading with Zambia.
• To identify their impact, barriers and requests for support.
• To feed the EU-Zambia public-private dialogue and PS-related and governance programmes.
• To frame the agenda of the post-elections EU-Zambia investment dialogue.
The survey was finalized with 107 responses received representing 46% of the estimated 233 EU companies present in Zambia.
Some highlights from the survey include:
• 70% of the firms work in services, 19% in manufacturing and 17% in agriculture.
• The EU firms in Zambia are concentrated in: energy (16%) and construction (12%). Fresh agro products gather 10% of the EU investors.
• In terms of size, 25% are micro (>10), 37% are small (>50), 17% are medium (>250) and 21% are big (<250).
• The EU firms consulted have already invested $1.8Bin Zambia and foresee to invest $756M more in the next 5 years.
• At least 73% of the firms estimate that the Zambian market has potential for growth in the next 5 years. This positive outlook is stable in the 3 sectors of the economy: manufacturing, agro & agro-processing and services.
• The firms consulted reported to pay €133M on taxes annually, the taxes paid are low.
• The consulted firms decreased their annual turnover by almost 24% due to COVID. This sharp fall especially occurred in the agriculture sector.
• The consulted EU companies create 13,000 direct jobs and have 13,000 local suppliers. 91% of their employees are local posts employing Zambians.
• While firms in the service sector have an average of 87 employees per firm, the agro sector has 253 and Women hold an estimate of 26% of the jobs created by EU firms in Zambia
• On average, an EU firm organized 73 corporate social responsibility. Overall, they organize 447 social actions, 444 environmental actions and 352 training and R&D actions per year, spending a total budget of $ 1,305,000.
To see in full the impact of EU private sector investment study in Zambia Click:
• Brochure (link)
• ITALY country-specific results (link)
