According to vice-president Michel Wormser, Miga currently insures Zambian projects worth nearly $125mn in total: the majority (US$80mn) relating to the agricultural sector.
‘We expect US$40mn more of projects which will take place in Zambia based on requests we have already received from investors, ‘ Wormser said at a briefing in Lusaka in August.
According to a Miga spokesperson, the actual investment amount will likely be higher, and that support for one project has already been agreed, with another in the pipeline.
A 15-year $26.6mn guarantee has been issued in support of the Chobe Agrivision project on behalf of Chayton Africa, involving the acquisition of an existing wheat and maize mill in Zambia’s Copperbelt province.
Another project, as yet undisclosed, will fall under Miga’s master reinsurance programme with the Overseas Private Investment Corporation (Opic). ‘In terms of trade, the focus is currently on local consumption in Zambia as demand is outpacing supply,’ the spokesperson said. ‘However, the government would like to increase agricultural productivity to become an exporter.’
At the briefing, Wormser emphasised the importance of diversifying the country’s exports. ’80 per cent of exports out of Zambia are from the mining sector yet the sector only accounts for 1.7 per cent of the jobs created,’ he said. ‘Rural growth is important and farming is one of the areas that can support development.’
Zambia’s economy is heavily reliant on the mining of copper. According to the World Trade Organisation, the resource accounts for 60 per cent of the country’s exports. The country produces 70 per cent of the total copper production in Africa.