| From an underdeveloped African nation, Zambia over | | | | promote foreign direct investment (FDI) in the |
| time has metamorphosed into an open economy | | | | country. |
| characterised by macroeconomic stability. The | | | | This has created abundant opportunities of trade and |
| Zambian economy has recorded a modest growth | | | | investment for Indian SMEs engaged in various |
| with the country's real Gross Domestic Product | | | | sectors. Agricultural equipment, tourism, |
| (GDP) rate touching 5.8% in 2008.Retail, construction, | | | | manufacturing, mining, telecommunications and |
| mining, manufacturing and tourism are some of the | | | | transport are some of the major industries that are |
| key drivers of the Zambian economy. These drivers | | | | drawing investors from different parts of the world. |
| have served to maintain a sustained growth over the | | | | Indian SMEs can look at tapping in to Zambia's rich |
| past few years. | | | | mineral resource base for undertaking small projects |
| Encouraged by the investment-friendly conditions | | | | that are mutually beneficial. Likewise, Zambia's tourism |
| prevailing in Zambia, a large number of Indian SMEs | | | | industry offers long-term growth opportunities for |
| are turning towards this African country to capitalize | | | | small and mid-sized Indian players, especially in the |
| on its largely untapped market potential. | | | | field of outdoor sports amenities, holiday resorts, and |
| Trends in bilateral trade | | | | game ranches. |
| Although bilateral trade between India and Zambia | | | | Other areas that can be explored by Indian SMEs for |
| has progressed at a rather slow pace, in recent times | | | | trade and investment include education, transport, |
| both countries have aggressively pursued measures | | | | banking, construction and healthcare. |
| to facilitate increased trade and investment. | | | | Efforts undertaken |
| As a result, today India is considered as one of the | | | | To attract Indian SMEs in the country, the Zambian |
| major exporting destinations for non-traditional | | | | government has implemented various regulations that |
| Zambian products. Significantly, total trade volume | | | | would prove highly beneficial to the small and |
| between India and Zambia stood at around $207 | | | | mid-sized players in the long run. The Zambia |
| million in 2007-08. | | | | Development Agency (ZDA) has established a |
| Zambia imports fabrics, semi-furnished iron and steel, | | | | multi-facility economic zone targeted mainly at the |
| leather goods, electronics, organic and inorganic | | | | Indian SMEs. This economic zone was set up to |
| chemicals, metals, cotton yarn, tea and coffee from | | | | enable Indian SMEs establish their manufacturing units |
| India. Alternatively, Zambia exports commodities like | | | | in Zambia. |
| wood and wood products, crude minerals, gold and | | | | Furthermore, in an attempt to encourage increased |
| silver, precious and semi precious stones and scraps | | | | Indian SME participation in the Zambian economy, the |
| to India. | | | | Small and Medium Enterprises Development Chamber, |
| Untapped market | | | | India and the government of Zambia have recently |
| In the past few years, the Zambian government has | | | | signed a Memorandum of Understanding (MoU). |
| taken a number of significant measures to privatize | | | | Through this MoU, the Zambian government is looking |
| the major sectors in the country. Several export | | | | at facilitating technical cooperation and future |
| processing zones have been set up and | | | | collaborations between Indian and Zambian SMEs. |
| non-regulatory programs have been initiated to | | | | |