1.       Over the years, India has provided considerable economic assistance to Zambia. In 1979 and 1982, India extended government and EXIM Bank credits to Zambia totaling Rs. 25 crores. In 1989, India provided railway wagons costing about Rs.8 crores to Zambia under the Africa Fund. Other assistance such as Maruti vehicles were given to the Zambia News Agency and emergency medical supplies to the Zambian Ministry of Health. Over 2200 Zambians have been trained in India under ITEC in various disciplines so far.

2.     During President Mwanawasa’s visit to India in April 2003, India extended a credit line of $ 10 million (out of which $ 8.5 million was utilized for purchase of Tata trucks and the rest of amount was utilized for procurement of vocational tool kits), grant assistance of US $ 100,000 for donation of anti-HIV/AIDs medicines and another grant of Rs. 25 million for donation of agricultural equipment to Zambia. India also waived off the inter-governmental credit amounting to about $ 3 million outstanding against Zambia. Similarly, it donated 10,000 tons of non-basmati rice to Zambia to alleviate the food shortage. During the visit the number of ITEC civilian training slots available to Zambia was increased from 30 to 50 which was further increased to 60 in 2007-08.

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Bilateral Trade

3.     Zambia’s exports to India are at US$ 86.17 million and imports from India are at US$ 108.29 million (2006-07 DGFT Kolkata figures). India’s imports from Zambia include non-ferrous metals, ores (copper and cobalt), semi-precious stones and raw cotton. India’s export items include drug and pharmaceuticals, machinery and instruments, transport equipment, cotton yarn and fabrics, made-ups, plastic and rubber and plastic products, chemicals, and electronic goods.

4.     ITPO led the participation of Indian companies in the Zambian Agricultural and Commercial Show in Lusaka in August 2002-2003. Zambia has sent private sector led trade delegations to India to participate in trade fairs. India and Zambia have set up a Joint Permanent Commission at the Ministerial level. Its last meeting was held in New Delhi on September 9-10, 2005. CII Conclaves on India-Africa Partnership have been held in New Delhi, (March 2005); in Lusaka (April 24-25, 2006); in New Delhi (October 9 – 11, 2006); and again in New Delhi on March 19-21, 2008. A UNCTAD-EXIM Bank of India Investment Forum was held in Lusaka on 11-12th June, 2007 on ICT and pharmaceuticals. Subsequently, a CHEMEXCIL delegation visited Lusaka from 11-14th November, 2007 and took part in Buyer Seller Meet participated by local chemical industry. An exhibition and seminar on low cost housing was held in Lusaka on 9-10th April, 2008.

Investments from India

5.     As of 2004, Indian companies have invested about US$ 106 million in Zambia. M/s Vedanta Resources, (the parent company M/s Sterlite Industries of India) has invested $ 48 million in Konkola Copper Mine (KCM) to acquire a majority stake. Their further combined investment in Konkola Deep Water Copper Mining project, a Sulphuric Acid plant and a new smelter is to touch almost US$ one billion by 2008.  While Vedanta Resources is Indian-owned, they are registered in UK – hence their investment figures are not reflected in Indian investment figures.

6.     The other major Indian investments include a joint venture – Indo-Zambia Bank - with 60% equity held by three Indian public sector banks – Bank of India, Bank of Baroda and Central Bank of India – and the remaining equity by the Zambian government. EXIM Bank of India has a 34% share in Development Bank of Zambia after a debt settlement agreement with the Government of Zambia, who owed $18.8 million of EXIM Bank. Out of $18.8 million, $9.4 million was written off, $8 million paid by the Government of Zambia in six installments to EXIM Bank and $1.4 million invested in DBZ and EXIM Bank given 34% equity.

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7.     TATA has invested about $8 million in renovation of a five-star hotel called Taj Pamodzi, which is being managed by the Taj Hotels group and have in October, 2006 set up a vehicle & bicycle assembly plant in Ndola. Zambia Electric Supply Company (ZESCO) and TATA Africa Holdings have formed a joint venture company called Itezhi Tezhi Power Corporation limited (ITPC) to carry out Itezhi-Tezhi ($170 million) power project. Zambian side has requested for a line of credit and a concessional loan amounting to a total of US$ 80 million for this power project with Indian side. KCM and Tata are also trying to acquire Maamba colliery for thermal power generation.

8.     The ethnic Indians who settled down in Zambia many years back, have taken local nationality and have invested in trading, precious stones mining, agriculture, horticulture and chemicals. Trade Kings, a company owned by Zambian Indians are investing over US$125 million to set up the first ever integrated steel plant in the country.

Contracts to Indian Companies

9.     Several Indian companies have won contracts in Zambia in recent years. M/s Bharat Heavy Electricals Limited of India was awarded two contracts (of $ 21 million) by the Zambian government for rehabilitation of power sub-stations and supply of transformers. M/s CIPLA was given a contract of $ 3 million for supply of anti-retroviral drugs. M/s Central Electronics India Limited was given a small contract for supply of solar equipment for lighting in schools in remote areas. M/s Kalpataru Power, an Ahmedabad based company has executed a $ 15 million contract for setting up of a power transmission line between Chingola and Solwezi. M/s KEC limited of India got a contract worth $ 11 million for setting up a power transmission line between the bordering towns of Zambia and Namibia.

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Bilateral Agreements

10.     The two countries have on 17th August, 2007 successfully concluded review of Convention between India and Zambia for Avoidance of Double Taxation and Fiscal Evasion with regard to Taxes on Income, which was earlier notified by Government of India on 18th January, 1986. The reviewed Convention has received approvals by Cabinet in India and is awaiting similar approval from Zambian side before its signature. The two countries signed an agreement for cooperation in trade and an MOU for cooperation in agriculture on April 21, 2003 during the visit of the Zambian President to India. The two countries have signed on February 28, 2005 a Protocol for Institutionalization of the Annual Foreign Office Consultations during the visit of Secretary (West), MEA to Zambia.

Indian Community/PIOs

11.     There are about 13000 Indians in Zambia. Most of them have taken local or British nationalities and are working in trade sector. During the Chiluba regime, two persons of Indian origin were appointed as the Cabinet Ministers: Mr. Suresh Desai, Minister for Agriculture and Mr. Dipak Patel, Minister of Commerce & Industry. Mr. Patel continued in that post during the first administration of the present President. In the last two years, there has been a visible growth in the number of Indian professionals especially in Indian owned enterprises.

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30th May, 2008

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