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B I L A T E R A L S nical assistance to Some Thoughts for Better entrepreneurs and impleBilateral Relations menting agencies. Policy-makers plan to From time to time, participate in training India and Zambia face courses in project managepractical difficulties in ment and various other implementing certain courses such as agro-proagreements, sometimes cessing, small and medium due to change of leaderenterprises development. ship or financial conThe Ministry of straints within their counCommerce, Trade and tries. This can be ironed Industry is hoping to conout within a certain juditinue working with the cial framework. Indian High Commission The economic condiin Zambia to sign the tion of Zambia during the Investment Promotion and last couple of years has Protection Agreement been volatile. The governbetween Zambia and India. ment took some very bold The ministry is also trypolicy initiatives such as ing to enhance its promotion of ensuring full convertibility of the Tata Zambia Ltd. has submitted establishing joint ventures in the local currency (Kwacha), stability of a proposal to set up a motor manufacture of pharmaceutical exchange rate, market-driven products. Technological upgradation vehicle assembly plant in Ndola exchange and interest rates, estaband transfer of technology would with an initial investment outlay lishment of the Broad-Based Intercontinue to be encouraged through Bank Foreign Exchange Market, of $500,000 and a project to the compilation of project proposals removal of restrictions on imports manufacture bicycles with an by the private sector. and exports, privatisation of various Establishment of common faciliparastatal entities, etc. These changes initial investment outlay of ties that would form a small indushave helped the integration of the $250,000. Tata Zambia also trial area, utilising machinery manuZambian economy into the global plans to manufacture buses factured in India, potential economy. entrepreneurs and industries to be In Zambia, real GDP grew by 5 and trucks. The projects have established will form the list to be percent in the year 2004 as compared the potential to transfer compiled by the ministry prior to the to 4.3 percent in 2003 and 3 percent technology, Investment and Trade Promotion in the year 2002. This expansion in Mission to India.19 growth of real GDP was driven by increase exports, create The Indo-Zambia Bank Ltd. has strong expansion in mineral and opportunities for ancillary been established as a fine example of agricultural production as well as manufacturing industries and a successful joint venture. It enjoys generally favourable external condithe patronage of two friendly tions and was a direct result of the generate employment. republics, the Government of the government’s micro-economic poliRepublic of Zambia and the cies adopted in the year 2004 –– basiGovernment of India. cally of restoring fiscal discipline.20 It has demonstrated how personnel drawn from four difBoth countries must look for an investment promotion ferent institutions can work together as a team and evolve a agreement and should avoid double taxation systems. Another distinct and efficient work culture. Under the present cir- could be setting up of a joint commission that would look at cumstances prevailing in the Zambian market, though all strengthening economic relations across a large number of secbanks are going through a phase of low returns, in view of a tors. Furthermore, the Joint Business Council (JBC) could be strong bottomline of the Indo-Zambia Bank and with built- instrumental in promoting greater cooperation both in trade up reserves at a very sound level, the management of the bank and investments through market forces among businessperis optimistic that the future of the joint venture is extremely sons of the two countries. A strong banking relationship has bright. to be encouraged for trade to flow smoothly through proper The two countries are currently working on the finalisation channels. Better connectivity is required to enhance bilateral of a Bilateral Investment Protection Agreement and a Protocol economic cooperation; air, shipping and telecommunication for Institutionalisation of Annual Foreign Office links need to be improved. Besides, there has to be a strong Consultations. commercial or economic section in the high commissions so

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February-April 2007

AQ-Feb-2007-Apr-2007  

February 2007-April 2007

AQ-Feb-2007-Apr-2007  

February 2007-April 2007

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