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WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

WORLD HINDU ECONOMIC FORUM. Opportunities for Hindu Businesses in Africa Dato J Jegathesan # CEO : JJ ISHWARA CONNECT – Malaysia # Exco : Malaysia South South Agency (MASSA) # Deputy DG Malaysian Industrial Development Authority (MIDA) ( Rtd )

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WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

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  1. WORLD HINDU ECONOMIC FORUM Opportunities for Hindu Businesses in Africa Dato J Jegathesan # CEO : JJ ISHWARA CONNECT – Malaysia # Exco : Malaysia South South Agency (MASSA) # Deputy DG Malaysian Industrial Development Authority (MIDA) (Rtd) # Sr. Economic Advisor to Japanese Government JICA (Japan International Cooperation Agency) for their Asia Africa Business Linkages strategy: Focus on Zambia) ( 2006 to mid 2012) WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  2. WORLD HINDU ECONOMIC FORUM • What are my credentials to speak about Africa? • 1990 : Set up the Zimbabwean Investment Centre. (4 months) (Re. Commonwealth Sec. London) • 1991 : Set up the Tanzanian Investment Centre. (4 months). (Re. UNDP) • For several years directed by my than PM Dr Mahathir Mohd and other International Agencies I visited and briefed the Cabinets of Governments of Namibia, Uganda, Tanzania, Senegal etc on “Malaysia’s Economic Miracle • 2006 to 2012 : focus on Zambia through JICA WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  3. WORLD HINDU ECONOMIC FORUM • AFRICA IS NOT ONE NATION : IT IS NOT A MONOLETHIC ECONOMIC OR POLITICAL BLOCK. • 54 Nations make up Africa • Many paint Africa with one brush • Only 20% of African Nations are in any conflict the other 80% are stable and wanting to improve the welfare of their Nations • Negative get all the publicity WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  4. WORLD HINDU ECONOMIC FORUM UN Economic Commission for Africa : African Economic Outlook 2013 : The continent’s economic outlook for 2013 and 2014 is promising. Africa’s economy is projected to grow by 4.8% in 2013 and accelerate further to 5.3% in 2014. • The main sources of dynamism : • the expansion of agricultural production • growth in services • rise in oil production and mining. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  5. WORLD HINDU ECONOMIC FORUM • External financial flows into Africa hit a record in 2012 and are expected to top USD 200 billion in 2013. This highlights the growing importance of investment, official development aid and remittances to a continent on the move. Malaysian Media report : 30th July..: “ Malaysians Need to take heed of what’s going on in Africa : Our Companies have sunk US$ 19billion into the continent. World Bank reports “5 out of the 10 fastest growing economies in 2012 were from Africa” WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  6. WORLD HINDU ECONOMIC FORUM • North African countries remain tense, while people in many sub-Saharan states worry about jobs and the cost of living. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  7. WORLD HINDU ECONOMIC FORUM ONE SUCH SUB SAHARAN STATE : ZAMBIA In 2010, the World Bank named Zambia one of the world's fastest economically reformed countries. The Common Market for Eastern and Southern Africa (COMESA) is headquartered in Lusaka WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  8. WORLD HINDU ECONOMIC FORUM WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  9. WORLD HINDU ECONOMIC FORUM Population: 12 million (est. ). 55% living in urban areas. Rural areas are sparsely populated Populationgrowthrate: 3.1 % per annum Languages: English (official language). 7 main out of 73 local languages Currency:Zambian Kwacha ( US$1 = 5.44 Kwacha) Unemployment and underemployment in urban areas are serious problems, while most rural Zambians are subsistence farmers WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  10. WORLD HINDU ECONOMIC FORUM • Zambian politics take place in a framework of a Presidential Representative Democratic Republic, whereby the President of Zambia is both head of state and head of government in a pluriform multi-party system. • 30 years : No conflict. Two years ago elections….Model for Africa on peaceful transition of Power • Zambian Investment Agency : a One Stop help Center for Investors WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  11. WORLD HINDU ECONOMIC FORUM INVESTMENT OPPORTUNITIES IN ZAMBIA • Agricultural Sector : Large Scale Agriculture or Animal husbandry…abundant and fertile land. Cotton, Sugar Cane, many Vegetable products i.e. Sorghum, Wheat, coffee, tea , beans etc • Agricultural LAND in certain areas can be obtained at US$ 100/= per HECTARE WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  12. WORLD HINDU ECONOMIC FORUM 2) Manufacturing Sector : This sector is yet to be developed to it’s full potential…not just for Domestic Market needs But to supply the Regional Common Markets Viz: a) SADAC : Southern African Development Community b) COMESA: Common Market for Eastern and Southern Africa Total Population: 580 million* WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  13. WORLD HINDU ECONOMIC FORUM SADAC The Protocol intends to further liberalise intra-regional trade by creating mutually beneficial trade arrangements, thereby improving investment and productivity in the region. It advocates that Member States eliminate barriers to trade, ease customs procedures, harmonise trade policies based on international standards, and prohibit unfair business practices. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  14. WORLD HINDU ECONOMIC FORUM COMESA: Common Market for Eastern and Southern Africa WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  15. WORLD HINDU ECONOMIC FORUM 3) MANUFACTURING POTENTIAL : Not necessarily Greenfield Manufacturing Projects. Many Indigenous & Indian Zambians have manufacturing operations…BUT much of it is outdated machines and Equipment. Strangely many have little contacts with the Potential that ASIA has to offer. Best bet: Seek out existing Zambian manufacturers seeking to EXPAND, DIVERSIFY OR SET UP NEW PROJECTS and start with them. Same strategy for other African Nations. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  16. WORLD HINDU ECONOMIC FORUM The following incentives are available investors investing not less than $500,000 in approved Priority sector. • A corporate tax of 0% for an initial period of 5 years from the first year profits are made. For years 6 to 8 corporate tax will be paid on 50% of profits and in year 9 to 10 on 75% of the profits. • Dividends shall be exempted from tax for 5 years from the year of first declaration. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  17. WORLD HINDU ECONOMIC FORUM • Capital Expenditure on improvement or for the upgrading of infrastructure shall qualify for improvement allowance of 100% of such expenditure. • Suspended Customs Duty to zero for 5 years on most machinery and equipment. • Import VAT exemptions on imported inputs targeted at production for exports. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  18. WORLD HINDU ECONOMIC FORUM . Tax Incentives to set up value added leather products companies based on either imported hides or locally available hides • Importation of inputs especially chemicals for tanning hides and skins are zero rated…also possibly zero rating importation of shoe components in order to encourage the manufacture of leather goods • Importation of inputs especially chemicals for tanning hides and skins are zero rated WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  19. WORLD HINDU ECONOMIC FORUM • Cotton and Copper : Zambia – a major producer of Cotton and Copper BUT 90 % exported raw in the form of unprocessed Copper (ingots) and Cotton (Lint) • Processing these for exports is a priority and attracts incentives • Likewise…potential for processing of Honey, Neem , Cashew nuts , Ground nuts etc. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  20. WORLD HINDU ECONOMIC FORUM EDUCATION Potential: Made a Priority Economic Sector entitled to Incentives as for Manufacturing. • VISION: to make Zambia a education Hub for Sub Saharan Africa • University Education and Colleges of Education • The demand for admission: Annually about 100,000 pupils complete High School and an additional 300,000 leave the school system at Grades 7, 9 and 12 levels. (This is increasing annually) WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  21. WORLD HINDU ECONOMIC FORUM Of those that completed high school, more than 30,000 obtained the minimum entry requirements of Public Universities … …but these only had a combined absorption capacity of about 16,000 . WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  22. WORLD HINDU ECONOMIC FORUM Technical and Vocational Training In the Technical Education, Vocational and Entrepreneurship Training (TEVET) sub-sector, the annual enrolment capacity is 32,911 . (Slowly increases annually) Out of the 400,000 learners that are eligible to enter TEVET institutions only about 14,000 learners are enrolled annually WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  23. WORLD HINDU ECONOMIC FORUM This gives an absorption rate of only 3.5 percent Access to TEVET services by the potential and eligible population (i.e. labour population in age group 15 to 49 years) is currently at less than 13%, whereas the average range for middle income economies is between 20% and 30% WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  24. WORLD HINDU ECONOMIC FORUM MEDICAL Potential: Made a Priority Economic Sector entitled to Incentives as for Manufacturing VISION : To make Zambia a regional centre of excellence for private sector driven Medical, Pharmaceutical and Dental services WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  25. WORLD HINDU ECONOMIC FORUM • Government spends annually K6 billion (approx US$ 1 billion) for Zambian citizens seeking specialist treatment abroad. • Approx 120 cancer patients and 110 Zambians open heart surgery patients per year await overseas treatment. • South Africa, with the best medical/health facilities/services in the region, is an expensive provider...and those who can afford go to India. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  26. WORLD HINDU ECONOMIC FORUM • There are only 7 pharmaceutical companies producing 5% of the essential drugs locally. 50 trading companies import 95% • Most of the essential drugs are still imported WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  27. WORLD HINDU ECONOMIC FORUM • JNN Newsflash : NRB Pharma Ltd of India has just last month broken ground in Zambia for a US10 /= Pharmaceutical operation • (they did not attend this event…BUT saw the potential) • Health sector made a Priority industry, to help reduce the doctor patient ratio in Zambia (at present it is 1:15,000 as opposed to WHO recommended ratio of 1:5000) WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  28. WORLD HINDU ECONOMIC FORUM The government will be encouraging the following facilities to be set up to make Zambia a centre of excellence for the Medical/Health sector: Surgery Orthopedics, Neurosurgery, Cardiac Surgery, Head and Neck surgery, Plastic Surgery, Minimally invasive surgery/Laparoscopic surgery, Organ Transplant Surgery (Renal Transplant), Traumatology/Emergency Medicine, Paediatric Surgery , Obstetrics & Gynaecology Assisted Reproduction; in-vitro fertilization, Tubo-Plasty, Laparascopic/endoscopic surgery. Obstetric/Maternal Services and Neonatal ICU Medicine Emergency medicine, Renal unit/dialysis, Cardiology, Endocrinology. Respiratory Medicine, Gastro-Enterology/Endoscopy, Neurology WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  29. WORLD HINDU ECONOMIC FORUM Pediatrics Hospital for sick children with Medical and surgical services Rehabilitation Centres Occupational Therapy Physio-therapy Speech therapy Stroke rehabilitation Diagnostic Centers Imaging; CT, MRI, ultrasound, Angiography Laboratory; Haematogy, Biochemistry, HormononalAssay, Serum drug levels, blood gasses, tumour markers, genetic and tissue typing, DNA analysis, Virology, Microbiology WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  30. WORLD HINDU ECONOMIC FORUM The Zambian ministry of health says at least 40,000 nurses are needed but the country has to make do with just half. Malaysian Hospital seeking JV: US$ 15 mill. cost : Seeking 70% Partner (??? Status) WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  31. WORLD HINDU ECONOMIC FORUM SERVICE SECTOR : Potential 1) Super Markets & Department stores: Packed to Capacity BUT every product (mostly from Asia) 3 to 5 times higher than Malaysia. POTENTIAL: for a Major Asian Super Market: direct imports from Asia. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  32. WORLD HINDU ECONOMIC FORUM CONSTRUCTION POTENTIAL : Great Shortage of low cost, medium and high cost homes. MULTI FACILITY ECONOMIC ZONES (MFEZ) Construction of MFEZ and Industrial parks attract same Tax Holiday as Manufacturing. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  33. WORLD HINDU ECONOMIC FORUM Tourism: Hotels , Game Parks and Tourist Resort Complexes: WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  34. NORTH LUANGWA NATIONAL PARK

  35. Example of one Park covers 144,000 km2 of land

  36. WEST LUNGA NATIONAL PARK

  37. Existing Accommodation Facilities in the Parks New Kalala Lodge near Kafue National Park Kasaba Bay Lodge in Nsumbu National Park Hotel Intercontinental - Lusaka Nkamba Bay Lodge – Nsumbu National Park MfuweLodgeinSouthLuangwaNationalPark

  38. Potential for Tourism Development • TATA (Taj) has only One (?) hotel in Africa and it is in Lusaka City. That and other Hotels VERY EXPENSIVE. • Shortage of Hotels and Lodges all over Zambia. • Same Tax Holidays as Manufacturing.

  39. WONDER OF THE WORLD : VICTORIA FALLS

  40. WORLD HINDU ECONOMIC FORUM Potential for Tourist Resort Complex near Victoria Falls An Asian Zambian has a 50 acre site upriver from Victoria Falls . Riverfront of Zambezi River. Two years ago: seeking a JV partner to develop a Tourist cum Education at the site. INTERESTED? Can follow up. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  41. WORLD HINDU ECONOMIC FORUM • RECOMMENDATION TO THE WORLD HINDU • ECONOMIC COUNCIL ORGANIZE A FACT FINDING MISSION TO ZAMBIA. SEE FOR YOURSELVES THE POTENTIAL… JJIC ISHWARA CONNECT : if approached will be prepared to help. WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

  42. WORLD HINDU ECONOMIC FORUM TIME too short for more! Thanks for the Opportunity to share . J. JEGATHESAN (JAGADEESAN) JJ Ishwara Connect - Malaysia E mail: jjegaic@gmail.com Mobile phone in KL : +6 012 321 2030 E mail jjegaic@gmail.com WHEF 2013 @ Bangkok : Strengthening Economy, Shaping Future

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