John Paton, Page 2 Author

The British High Commission, in association with the UK Law Society and British Expertise, presented a one-day training workshop on PPPs on 27 July at the Intercontinental Hotel. This was part of a regional programme that included Mauritius, South Africa, Zimbabwe and other countries, as well as Zambia.

The title of the presentation was “Understanding PPP and the globally competitive market”. The pressing need for infrastructure development and services across the African continent has focussed increasing attention on the use of PPP models to secure investment and expertise. Successful PPP requires an adequate legal and regulatory framework, risk profiles and a realistic understanding of the market. This course was designed for policy makers, legal practitioners, procurement specialists and private sector participants.

The programme provided those attending with a good understanding of what they need to know to take an active role in effective PPP projects. It was designed by some of the most experienced practitioners in the world. The programme utilised case studies from Europe, South America and Africa to facilitate discussion and suggested lessons that can be learned from past projects to improve future PPP planning and implementation.
The programme covered many aspects of dealing with PPPs, including the objectives of PPPs, key definitions, features of typical PPPs, UK experience over the past several decades, the contractual framework, managing risk and many others – all of which can be found in his presentation.

A useful case study was given by the Southern African Regional Manager of Mott MacDonald, in which useful practical lessons, successes and failures, were discussed and provided a useful perspective from one of the world’s largest engineering practices.

The trainer, Malcolm Dowden, himself a solicitor in the UK with over twenty years expert experience in PPPs, presented his material in a way that was easy to understand by experts and layman alike.

A copy of his presentation is available to download.: PPP ZA

On 23 July 2015 the British Chamber of Commerce in Zambia hosted an event on Regional Trade – Where are we now with a Free Trade Area and how can we increase our trade in the region?
Over 80 members, their guests and others attended this event at the Taj Pamodzi hotel in Lusaka. A panel comprising Mrs Lillian Bwalya, Director of Foreign Trade at the Ministry of Commerce, Trade and Industry; Mr Jonathan Simwawa, Director of Export Promotion at the Zambia Development Agency; Mr Fudzi Pamacheche, Tripartite FTA Coordinator at COMESA and Ms Rachel Kamigisha, Senior Trade Expert at COMESA, made highly informative and useful presentations. These were followed by a lively discussion with those attending.
Mrs Bwalya gave a summary of changes to GRZ’s trade policy in recent years and detailed the numerous trade policy measures and action the MCTI has implemented – all anchored successive national development plans. These include focus on industrialisation and job creation; expanding markets, expansion of the services sector, transport corridors; a simplified COMESA trade regime; pursuing bi- and multi-lateral trade agreements and increasing public- private dialogue.
Mr Pamacheche outlined the progress of the Tripartite Free Trade Area (comprising COMESA, SADC and the East African Community), culminating in a heads of government meeting in Sharm el-Sheikh in June 2015, when 16 out of 26 eligible countries signed the Agreement.
Ms Kamigisha provided useful further detail on the three pillars of the Agreement: infrastructure, industrial development and market access and made specific mention of the COMESA Business Council, easing the movement of business persons and various trade facilitation measures.

Mr Simwawa provided a wealth of information on what the ZDA is doing to promote regional trade and provided extensive data on current trade patterns and on the constraints to the expansion identified through the ZDA’s most recent Exporter Audit.
Mr Simwawa’s presentation is available to download, below.

ZDA Presentation at BCC – July 2015

At a British Chamber event on 25 June 2015, Emily Hamilton and Michael Phiri from KPMG Zambia made a thought provoking wake-up call for guests on double taxation tax treaties, specifically the now ratified one between Zambia and the UK.

Their presentation (available as a download on this page) covered key aspects, including:

• UK-Zambia double tax treaty: what it is and why we should car and how does the new UK-Zambia treaty changes matters.
• Different types of business arrangements:
  • Zambian businesses looking to import goods and services from the UK
  • Zambian businesses looking to export goods and services to the UK
  • UK businesses operating in Zambia
• Tax issues for individuals moving between the UK and Zambia and a number of practical issues.
  The presentation reminded us of the different corporate types, the changes to treatment of dividends and the need to consider liability for withholding taxes and obligations such as NAPSA, PAYE, etc.

While the presentation raised as many questions as it answered, and the general discussion that followed covered a number of points, it is clear that companies, as well as individuals, need to make sure that they are compliant and to seek professional advice, whether from KPMG or their own advisers – and if you don’t have one now is the time to get one!

Download the presentation: KPMG-BCC UK-Zambia Tax Issues.

The first issue of the British Chamber of Commerce Newsletter is out.

In this issue we cover

The British Chamber of Commerce in Zambia held its inaugural CEO’s lunch on 15 April 2015 at the Taj Pamodzi hotel. This was attended by 63 members and guests, including the UK High Commissioner, HE James Thornton, the Chamber board and senior executives from about 50 companies from Zambia and from the UK. It provided an excellent opportunity for them to meet and network, and to learn more about the Chamber. The next lunch will be on 20 May 2015 – watch this space for details and for information on forthcoming events.

Launched in February 2015, the Chamber sets out to support members in their business activities in Zambia, the region and with the UK, through the provision of information, speaker and other events, networking opportunities and linkages to other members in Zambia and in British Chambers elsewhere in Africa and the world.

The British High Commissioner James Thornton last evening launched the British Chamber of Commerce in Lusaka. Mr Thornton said:

I want to mention three things: what the British Government is doing to promote the private sector; the role of the Zambian government in that; and the role of the British Chamber of Commerce, that we are here to launch.

First, the British Government. We are very keen to promote UK-Zambia trade. Five months ago the British Government’s trade and investment agency, UKTI, put an officer in the High Commission for the first time for many years. We held successful trade missions here in October and November last year.
I am very pleased that UK business interest in Zambia is growing. The Zambia Development Agency tells us that, for the last year for which it has data, more foreign investment in Zambia came from the UK than from any other country. And various more British companies hope to do business here in future.
And the programme run by our Department for International Development here in Zambia has an increasing focus on promoting economic growth.

For more information on what we are doing, follow the High Commission on social media. My Twitter account name is UKThornton, and the High Commission’s Facebook account is UKinZambia and the Twitter account is UKinZambia.

Second, the Zambian government obviously has a key role in promoting trade and investment. They understand that. President Lungu, in his inauguration speech, appeared to be pinching my lines. He spoke about balancing the interests of Zambia with the interests of investors – that’s one of the things I talk about! And he referred to the need for predictable, consistent policies – exactly what I hear from businesspeople such as yourselves.

I welcome the fact that, by various accounts, the President is now engaging directly with the mines. I hope that will lead to agreement on the best way forward for the industry. Such an agreement will be really important for the way that Zambia is perceived abroad as a place to invest.

And of course the President has appointed Mrs Mwanakatwe as his Commerce Minister. Honourable Minister, I am sure that you will be the voice of the private sector within the government.

Lastly, let me say something about the new British Chamber of Commerce. I am really excited about its launch. I think it can do great things. It will clearly act as a meeting place for likeminded businesspeople. I hope that it will also act as a catalyst for more trade between the UK and Zambia. I particularly hope that the Chamber will articulate what it is that business needs to thrive here, and establish an ongoing dialogue with the government on that.

I am sure that the Chamber will want to work closely with other trade bodies, including the American Chamber.

I expect to work closely with the Chamber. But it will be independent. To flourish it will need active support from businesses such as yours. I hope that you will be able to pay the subscription and join. I also hope you will offer the Chamber some of your time, energy and vision. You can help shape it so that it really responds to your needs and interests.

I would like to thank those who have already given so generously of their time, energy and vision to get the Chamber to where it is now. These include the interim board of the Chamber: its Chairman, Tim Ware of Knight Frank; Mark O’Donnell of Union Gold; Sixtus Mulenga of Musamu Resources Limited; and Daniel Rea of Grindrod Rail; Others include Andrew Okai and Christine Matambo from Standard Chartered. I am also deeply grateful to John Paton, the Chamber’s Chief Executive, who has been working for the organisation since last September.

Source: Gov.UK

PLANS to set up a British Chamber of Commerce that will be a catalyst for investments in Zambia have advanced, High Commissioner James Thornton has disclosed.

Mr Thornton said the British Chamber of Commerce, to be established soon, will create a platform for existing British companies operating in Zambia and new companies looking for business opportunities.

He said this when he met a business delegation from the United Kingdom led by the UK Trade and Investment yesterday.

The purpose of the trade mission is to identify, establish and grow business opportunities in Zambia as well as identify business partners and meeting potential buyers.

Mr Thornton, however, said Zambia should ensure that it becomes competitive if it is to attract more investment.

“Investors will go anywhere in the world where they think it is best for them … Government should make Zambia as attractive as possible so that it competes with other countries for investment,” he said. He said Zambia can remain competitive if it opens its doors to investors.

Mr Thornton said the UK government remains committed to promote trade and investment between Zambia and the UK through various initiatives.

“Britain has a number of commercial and industrial expertise and other services and what you can get from us is quality and I believe that the Zambian government and businesses should take advantage of the initiatives,” he said.

At the same occasion, Minister of Commerce, Trade and Industry Robert Sichinga called for investment partnership with UK companies to enable Zambia achieve her goal of value addition to local products.

“Government has been emphasising value addition as this will create more jobs, so foreign direct investment will assist in achieving value addition,” he said.

Source: Lusaka Voice