zambia country implementation plan - united states …

Southern Africa Trade and Investment Hub FY2020 Work Plan 1

ZAMBIA COUNTRY

IMPLEMENTATION PLAN COUNTRY BACKGROUND

Zambia had one of the world’s fastest growing economies for ten years up to 2014, with real GDP growth

averaging roughly 6.7% per annum. Due to falling copper prices, reduced power generation, and depreciation of

the kwacha, growth slowed during 2015 to 2017. Zambia’s lack of economic diversification and dependency on

copper, made it vulnerable to fluctuations in the world commodities market and prices turned downward in

2015, due to declining demand from China. In addition, Zambia was overtaken by the Democratic Republic of

Congo as Africa’s largest copper producer. In 2017, GDP growth picked up as mineral prices rose.

Despite recent strong economic growth and its status as a lower middle-income country, widespread and extreme

rural poverty and high unemployment levels remain significant problems; made worse by a high birth rate, a

relatively high HIV/AIDS burden, market-distorting agricultural and energy policies, and growing government

debt. World Population Prospects (2019 Revision) indicates that Zambia's population is currently growing at a

rate of 3.2% per year and the country has one of the highest fertility rates in the world at 6.2 births per woman.

While the HIV prevalence in Zambia has declined, it is still around 13.5% among adults.

Zambia raised $7 billion from international investors by issuing separate sovereign bonds in 2012, 2014, and

2015. Concurrently, it issued over $4 billion in domestic debt and agreed to Chinese-financed infrastructure

projects, significantly increasing the country’s public debt burden to more than 60% of GDP. The government

has considered refinancing $3 billion worth of Eurobonds and significant Chinese loans to cut debt servicing

costs (CIA, 2019).

Zambia’s exports under AGOA have grown from $1.818 million in 2016, to $7.176 million in 2017 to $88.885

million in 2018. This has been led by minerals and metals products, followed by agricultural products and

miscellaneous manufacturers (USITC).

PROGRESS TO DATE

HUB ACHIEVEMENTS TO DATE IN ZAMBIA

The Hub has been actively working in partnership with the Zambia Development Agency (ZDA), a trade and

investment agency in Zambia as well as with the Ministry of Commerce Trade and Industry (MCTI) and the

private sector. The Hub work in Zambia has been three pronged. First, there was support to Zambian companies

for them to export to the United States under AGOA, working in partnership with the ZDA. Second, the Hub

supported Zambian companies to export to other African markets including South Africa with a focus on

promoting regional food security. Third, the Hub has a standalone Zambia Buy-in activity to improve the trade


enabling environment in Zambia. The technical assistance from the Hub on the Zambia Buy-in focuses on

supporting Zambia on its efforts to comply with World Trade Organization (WTO) Trade Facilitation

Agreement (TFA) commitments. The activity is a demand driven approach which seeks to enable Zambia to

create a demonstration effect for other countries in the region.

The overall performance to date is indicated in the table below.

Zambian Companies Performance with Hub Support

Exports to the United States Exports in Southern Africa Investments in Southern Africa

US$ US$ US$

$200,231.20 $170,000.00 $17,676,666.45

Companies Companies Deals

Number of Companies: 2 Number of Companies: 1 Number of Deals: 4

In addition, the Hub facilitated a total of four investment deals worth $17.6 million in Zambia as shown in the

table below:

Investee

Country

Investee

Name

Sector Investor

Country

Investor

Name

Investor

Type

Amount

Zambia Capital

Fisheries Fish

South

Africa

Exeo Capital

Vvia Agrivie

Fund II

Private

Equity Firm $6,346,666.45

Zambia Social

Enterprise Groundnuts Zambia Comaco

Private

Enterprise $350,000

Zambia Get Bucks Specialty Foods United

Kingdom TLG

Private

Equity

Company

$8,000,000.00

Zambia Finca

Zambia Micro-Financing

United

States

Developing

World

Markets

Private

Equity

Company

$2,980,000.00

Total $17,676,666.45

As a member of the WTO, Zambia ratified and started implementation of the TFA in 2015, which is vital for

improved trade and the investment environment. In the same year, the Zambian and U.S. governments signed an

MOU to increase bilateral trade between the two countries. The MOU placed emphasis on four main areas: trade

facilitation, SPS measures, technical barriers to trade and policies which promote regional trade and attract

investments. To support the Government of Zambia in meeting the requirements of these two agreements, the

Hub focuses its support around five main areas: supporting the Government of Zambia’s compliance with WTO

and Trade Facilitation Agreements; assisting the private sector to increase their awareness of and compliance

with international SPS standards; assisting the Zambia Revenue Authority (ZRA) to improve coordinated border

management; developing agricultural information management systems; and assisting the Government of

Zambia to develop and operationalize a trade information portal.

The hub has made significant progress helping the Government of Zambia increase compliance with the TFA

requirements by assisting with the development of the TFA roadmap with a comprehensive matrix of priority

areas and mitigation measures. The National Trade Facilitation Committee (NTFC) has been strengthened with


the Hub support in collaboration with additional support from the World Bank trade activity. This support has

seen the inclusion of six private sector organizations in the NTFC’s membership base, which was previously

only reserved for government agencies. The hub has assisted the Government of Zambia with socializing trade

facilitation reforms among many private sector traders at several border posts. In order to improve coordinated

boarder management, the hub has helped ZRA draft the coordinated boarder management policy which will be

shared with trade regulatory agencies for further validation. In addition, the Hub helped ZRA review its current

training curriculum and developed five priority modules which the organization intends to use in its future staff

training. These modules are now under final review by ZRA senior management and once approved will be a

major tool in improving staff capacity in facilitating trade in Zambia. Through the Zambia Agricultural Research

Institute (ZARI), the hub also assisted the Government of Zambia to develop and launch the Plant Information

Management System (PIMS) and is currently supporting the Ministry of Commerce and Industries (MCTI) with

the development of the Zambia Trade Information Portal. The hub has already collected over eighty percent of

the required data sets and will soon start uploading it on the World Bank tool kit in preparation for its launch in

Q1 and 2. Despite the challenges of funding resources, the commitment and involvement from both the

Government of Zambia and the ZRA is very high, indicating the need for continued Hub support.

CURRENT STATUS

Going forward, the Hub will focus on the following four objectives in Zambia:

1. Increased Exports to South Africa from Zambia

2. Increased Investment (capital and technology) out of South Africa to Zambia

3. Sustainable utilization of AGOA

4. Improved Zambia’s Trade Enabling Environment (Zambia Buy-in)

Zambia has developed an AGOA Utilization Strategy (with the support of the Hub). The AGOA strategy 2018 -

2025 and Work Plan has been prepared as one of the tools that the Government will use to not only assist policy

makers in their day to day planning and evaluation of Zambia’s utilization of preferences under AGOA, but also

to assist the private sector to create business linkages and enhance their capacity to export value added, quality

products into the United States and regional markets.

The Hub will support companies in Zambia to export to South Africa to meet that country’s import

requirements. The Hub is targeting products that have regional processing linkages into South Africa, such as

groundnuts, sauces, macadamia nuts, moringa, soya beans, honey, sugar beans and fish. The products were

determined through an analysis of the growth in imports into South Africa from respective Hub targeted

Southern African countries including Zambia. Several food products or ingredients that constitute specialty

foods such as honey, moringa, herbs, sauces, cashew nuts, macadamia nuts have seen growing regional and

international export market demand. In some cases, the imported products are inputs to South African processing

companies that re-export the products into the Southern African region or to other export destinations such as the

United States, Europe or the rest of the world.


TARGETED SECTORS

There are several products that Zambia has export competitiveness to increase their exports. In addition, South

Africa has a much more developed manufacturing sector than can procure raw materials from targeted Southern

African countries for processing and re-export. We have identified eight specific products that are in demand in

South Africa which Zambia has potential to supply, namely groundnuts, sauces, macadamia, soya beans, honey,

sugar beans, fish, moringa. A detailed description of the sectors and the opportunities in each of the targeted

sectors, leading exports to South Africa, is presented below.

Groundnuts

For Zambian groundnuts, the market compound annual growth rate (CAGR)1 is 53% and continues to grow

positively. With a competitive advantage for soils and climate, a number of companies supported by the Hub

have attempted to enter the South Africa export groundnut market in the past, but their lack of experience and

expertise in conducting due diligence and negotiating terms and conditions, particularly payment terms, caused a

significant loss of revenue in prior years. However, they have proven that they are able to deliver according to

market specifications. Hub support is critical to build the companies’ capacity successfully and to sustainably

export to South Africa. It is especially important for next year, since large groundnut deficits in South Africa are

predicted. This offers an excellent opportunity to shift regional groundnut sourcing away from international

markets (Argentina, Brazil and India) and towards regional suppliers. Sustained exports to South Africa will also

motivate Zambian companies to scale up their raw material procurement and processing capacity.

In FY19, the Hub identified potential market channels for groundnut products in South Africa and the capacity

support needs, particularly in technical assistance for contracting and payment negotiations as well as access to

finance. Support from the Hub will enable Zambian companies to export up to 1,000 MT of groundnuts and to

sustain sales between Zambia exporters and South African buyers. Work in this sector will support a significant

increase in the groundnut export business.

Soya beans

Major investments in terms of soya crushing capacity have been done with new mills like Global (Walmart

owned)100,000-ton capacity, Mount Meru-50,000-ton capacity having been established in Zambia. The total

crushing capacity has more than trebled presenting opportunities for soya meal and soya-based animal feed

products for exports. Due to good prices and income farmers have made from soya in previous production

seasons, production is expected to increase to 400,000 tons this season, if there is a normal rainy season.

Sauces

The demand for table sauces in South Africa has more than doubled in last 10 years presenting an opportunity

for Zambian companies to export tomato paste for production of tomato-based products in South Africa. In

addition, the presence of South African supermarket chains such as Shoprite and Pick n Pay (PnP) provides an

opportunity for engagement with Zambian tomato paste suppliers to export to South Africa to meet this unmet

demand.

1 Compound annual growth rate (CAGR) is the rate of return that would be required for an investment to grow from its

beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment's

lifespan.


Honey

Zambia is an exporter of honey with exports having doubled in the last couple of years. In addition, the Zambian

government identified honey as a priority sector to diversify the economy, which presents a host of new income

opportunity for small businesses through market linkages and export opportunities.

Sugar beans

The common bean market is large and growing on the back of population growth. Overall, improved varieties

occupy 46% of the bean area, which is equivalent to 1.4% annual growth in area planted with improved

varieties. South Africa produces only 75% of the dry beans consumed in the country with balance being

imported mainly from China (88%). The CAGR for imports to South Africa from 2013 to 2018 is 24%.

Macadamia

Exports of macadamia trees to Zambia from South Africa have the potential to increase and contribute to the

number of businesses growing this AGOA eligible product through market linkages. The macadamia sector is

increasingly becoming a very important sector in South Africa’s agriculture industry as market prices soar amid

increasing global demand. The Global Trading & Agency (GTA) estimates South Africa’s macadamia crop

production to be approximately 58,000 tons in 2019. Around 98% of South Africa’s crop is exported with very

little local consumption compared to countries like Australia who consume 30% of their crop. There is potential

increased demand due to increased local consumption and demand from the export market. About 50% of South

African macadamia are sold nut in shell (NIS) to Asia, mainly China while the remainder is processed to kernel

for the U.S., Canada, Europe, Japan and the Middle East. South Africa's macadamia NIS import represented

1.9% of world imports during 2016 and ranked 4th in the world macadamia nuts imports (Department of

Agriculture, Forest & Fisheries, South Africa, 2017). In Zambia, Red Sun Hortitech (a South African company)

has partnered with a macadamia tree nursery, North Route Nursery, to supply Zambian commercial and small-

scale growers with the highest quality macadamia trees available.

Moringa

The global market for moringa is growing fast due to various identified uses for the products ranging from

cosmetics, human consumption and animal feed. Moringa is now available in health shops in South Africa –

although consumption has yet to take off to the extent that it has in other markets. The Hub has an existing

relationship with moringa producers in Zambia such as Moringa Initiative and Zamroot. Zambia firms sell

processed/ packaged moringa as powder, seeds, oil, tea and animal feed products. Moringa Initiative has been

exporting to South Africa while Zamroot exports to the United States under AGOA, and both companies are

looking to expand production and exports to the South African market. Zamroot is reported to have exported a

total of $353,000 worth of Moringa products to the United States in the third and fourth quarters of FY2019. In

addition, through its participation at both the 2019 Summer Fancy Food Show in New York and the Institute of

Food Technologists show supported by the Hub, the company met several buyers who need certified organic

moringa leaf powder. This resulted in Zamroot implementing an organic certification process; hence, it now

anticipates exporting another $350,000 to the United States in the next 12 months and about $175,000 to South

Africa.

Potential opportunities for the Hub involve supporting buyer linkages between South African buyers and

Zambian producers and processors; assisting in developing the understanding and infrastructure for establishing

food standards and labelling which meet South African requirements and working with BMOs and other

aggregators to ensure that sufficient volumes of production can be met. Opportunities for linking technology

providers from South Africa with traders and bulk buyers in Zambia provide significant scope to increase trade

and market linkages in this sector; including for processing and value addition. Some of the interventions will

include grading, cleaning and sorting technologies to enhance trade in sugar beans that meet South African


market specifications and standards. Zambia has the capacity to supply South African market with the above

products. These opportunities will be the focus for Hub support in FY20.

ZAMBIA EXPORT PIPELINE

The below provides examples of potential exporters from Zambia and potential buyers in South Africa, within

the priority sectors.

Company name Products Potential buyers in South Africa or

United States

Jungle Beat, COMACO, New Rotations

Zambia, Good nature Seed and

Stewards Globe

Groundnut and peanut butter products Tiger Brands, GWK, ARC, RE- Evans,

Snack factory, Global trader, P-Farm

(Golden Peanuts), Olam, Global trader,

food corp, Trader, Senwes, Triotrade,

Thusano Product, Triotrade, Kalinda

Trading

Mount Meru, Louis Dreyfus Zambia,

Global, Novatek, Tiger Feeds, National

Milling

Soya Bean, Meal and animal feed Meadow Feed, Tiger feeds, Novatek,

AFGRI, Foodcorp, Nutrifeeds

Forest Fruits, Luano honey , Adcoms

Investments Ltd, Bana Tandizo

Foundation, Chakwankwa Farms,

COMACO, Mearsheles Enterprises

Ltd, Safari Bee, Wuchi Wami Ltd

Honey Pick N Pay, Shoprite, Spar,

Woolworths, Dischem

North Route Nursery Macadamia Redsun Hortitech

Yalelo Limited Fish TBD

Zaamroot, Moringa Initiative Ltd, JDF

Farm,

Moringa products TBD

Forest Fruits Ltd Certified Organic products: forest

honey, propolis extract, beeswax, and

hand dipped beeswax candles

TBD

COMACO Organic/natural products (missing

certification)

Honey

TBD

Moringa Initiative Limited Moringa teas, Moringa powder,

Moringa capsules, Moringa pet food

supplement

TBD

Mama Buci Organic, pure, cold filtered, Zambian

wildflower bush honey free from

additives, preservatives, or adulterants

TBD

260 Brands, Seba Foods Zambia Ltd Health foods, soy food products TBD

Sylva Foods Solutions Ltd Indigenous nutritious vegetables:

soups, moringa soup

moringa nutri-cereal,

moringa teabags,

TBD


Company name Products Potential buyers in South Africa or

United States

dried leaves (woman-owned)

ZA Co. Ltd Grain Trade TBD

Zdenakie Ltd Grain Trade Agri Supply TBD

INVESTMENT LANDSCAPE

Over the last three years, the Hub managed to facilitate $17.68 million in private sector investment ($6.69

million in agriculture and $10.98 million in non-agriculture sectors) in Zambia. In Year 4, the Hub will target

equity and debt capital providers from South Africa to support capital flows to Zambia. The financial flows will

be for both equity and debt with accompanying technology transfers from South Africa.

Based on our experience, we know that there are different types of investors that are interested in investing in the

region from South Africa. The Hub has developed an Investor database and a Trade Finance Provider database

of more than 250 investors and financial service providers of different types. The supply of capital in this market

formed the focus of a rapid market assessment conducted by the Hub through desk top research, interviews

stakeholders and a co-creation process. The assessment built off the existing knowledge of the private equity

landscape to understand what trade finance providers exist in the market. One hundred interviews were

conducted with trading enterprises, trade finance providers and other related market actors in South Africa,

Malawi and Zambia. Stemming from this process, the Hub developed a database of 170 trade finance providers

operating in or interested in operating in the region. About 45% of these are banks with median deal sizes of

$15-25 million – considerably beyond the reach or needs of small and medium enterprises (SMEs) in the market.

The Hub also has a database of investors developed over the past three years in South Africa and elsewhere.

In a capital mapping exercise conducted by the Hub (CrossBoundary) in 2017, Zambia was characterized as a

frontier country for investment in the region based on feedback from the investors that were interviewed and

given the growing and significant population. The local financial system is thin. According to the Global

Competitiveness Report (WEF, 2019)2, Zambia’s overall financial system is ranked 121st out of 141 nations in

comparison with South Africa ranked at 19th. Domestic credit extension to private sector is very low at 15.5% of

GDP (123rd out of 141) and financing of SMEs was ranked 121st of 141 countries. This is consistent with the

observations from the trade finance mapping study which found that banks have low capital adequacy, poor

incentives for investing in private sector given government borrowing and resultantly very high costs of credit.

Zambia was ranked 87th out of 190 countries in terms of the ease of doing business (2018)3.

According to the Southern Africa Venture Capital Association Survey (2018), Southern Africa’s private equity

industry, (including private sector and government funds), had R171 billion in funds under management (FUM)

in December 2018, representing a compound annual growth rate of 9.3%, since 1999 when it’s annual survey

first began. Of this, R16.9 billion was available for future investments in pan-Africa (including the mandate to

invest in Southern Africa). Southern African private equity (PE) ended the 2018 calendar year with a

considerable increase in investment activity. The value of new investments and follow-on investments reached a

record high of R35.4 billion in 2018, compared to an annual average of R15.2 billion over the preceding 10

2 http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf 3 https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-

version.pdf

http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf

https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf

https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf


years. The total number of investments reached 818 in 2018, compared to an annual average of 584 over the

preceding 10 years. Total funds raised increased by 71.6% in 2018. This is an impressive figure, given the

relatively downbeat macroeconomic climate in South Africa (real GDP was recorded at a mere 0.8% in 2018).

Of the R12.8 billion raised, 55.7% stemmed from South African sources and 10% from the United States.

South Africa’s relatively competitive financial sector represents a clear opportunity for increasing investments

into Zambia whether in the form of PE, trade finance or other debt instrument.

Some specific examples of the investments that have been facilitated by the Hub so far are indicated in the table

below.

ZAMBIA INVESTMENT PIPELINE

Investment Opportunity

Type (debt or equity)

Financing need Status

Savenda Capital Group Combination Project finance to develop the infrastructure and operations of a Fresh Produce Market in Lusaka. Require $15.5 million (phase 1) and $16 million (phase 2).

NDA signed, Information Memorandum reviewed and feedback provided, deal note drafted, introduction to relevant capital providers underway.

Zdenakie Long term debt and/or equity

Zambian commodity trading company seeking capital to expand processing capacity

Investment teaser prepared; potential capital provider identified.

COMACO Long term debt/ blended capital

Zambian aggregator and processor which works with 179,000 smallholder farmers in soy, honey, maize, mushrooms and wheat. Requires $2-3mill to expand transport and processing capability and for working capital.

Potential capital provider identified.

STRATEGY

In the sections below, we provide details of how the Hub will meet the four Hub objectives in Zambia: (a)

increased exports to South Africa from the region; (b) increased investment (capital and technology) out of

South Africa to the region; (c) sustainable utilization of AGOA; and (d) improve the trade enabling environment

in Zambia.

The specifics are provided for each of the objectives and are aligned with the overall Hub implementation

approach laid out in our Annual Workplan.

OBJECTIVE 1: INCREASED EXPORTS TO SOUTH AFRICA FROM ZAMBIA

Opportunities: South Africa is a large market. The Hub’s objective is to promote exports from the Southern

Africa region to South Africa is informed by the trade dynamics between South Africa and the rest of the sub-

region. South Africa’s GDP is four times larger than that of the other seven target Southern African countries

combined4. In 2017, SADC countries accounted for 22.8% of South Africa’s total exports and a mere 6.7% of its

total imports. We believe there is scope to increase the intra-SADC trade inflows into South Africa.

The South African market is dominated by a few large market actors. The food manufacturing sector is a key

demand growth driver that fits well with the Hub’s mandate. The food manufacturing sector is dominated by five

major companies that control 75% of the market. These comprise Tiger Brands, Pioneer Foods, AVI, RCL

4 South Africa’s 2017 GDP was $349. 5 million compared to $82.5 million for the other seven target countries. SADC, 2017


Foods, and Nestle (Greenberg, 2017)5. The retail outlets are also dominated by a few major players such as

Shoprite, Pick N Pay, Spar, Massmart, and Woolworths. The food processing segment is similarly structured

with large players such as KFC, Spur and Nando’s dominating the industry. The implication of this industry

structure is that the Hub will need to identify and work with competitive and reliable supply chains within the

region including Zambia, a more structured and industry led approach driven by buyers, to promote meaningful

export linkages. Given the high industry concentration levels in the south African market, we will work with the

buyers to better understand the opportunities for market penetration to enable supply chain access for regional

exporters. The growth of supermarkets in the Southern African region also offers an opportunity for Zambian

companies to supply South African supermarkets with products in Zambia as well as export to South Africa.

Specific examples of market opportunities include:

• Groundnuts have seen a growing increase in South Africa imports from Zambia at a CAGR of 53% as

South Africa’s production is dwindling in the face of increasing frequency of rainfall droughts.

• Soya bean is also a growing commodity driven by meat consumption patterns in South Africa. Livestock

is still the largest contributor to agricultural GDP in South Africa. While soya bean accounts for only 2%

of agricultural GDP, it contributes to the competitiveness of other sectors. The demand for soya beans

and the rapid growth in its demand (23% per annum) has been driven by animal feed. It is anticipated

that growth will continue in the next decade but at a slower rate. Soya bean production from the region,

particularly Zambia is a key input to South Africa when the transport cost is cheaper than that of deep-

sea imports. As an example, in January 2017, Argentina soya beans cost about $380 a ton with attendant

transport, insurance and financing costs of $110 a ton landing in Gauteng at $490 a ton. Zambia sold its

soya at $390 a ton and transported at $110 a ton making it uncompetitive. With the utilization of back

haulage transport because of increased exports to Zambia, the soya bean from Zambia could be

delivered at a transport and logistics cost to $40 to $40 a ton making it more competitive for South

African companies to source from Zambia as opposed to deep sea imports. The net effect of such intra-

regional trade efficiencies has a ripple effect on overall economic growth in the region and boost

regional commodity value chains.

Several key technologies, management practices and market access opportunities have been developed with Hub

support working with South African buyers. These market facilitation interventions have had major impact

recorded at small-scale farmer level with indications for major follow on investment recorded and planned.

Groundnuts and peanut butter products for example, there are 5 of companies that are export ready in the sector

and several traders with whom the Hub will work. We will work with 5 exporters, and we expect 3 of them to

successfully export to South Africa.

Challenges: There are several key challenges to successful implementation. These include the high industry

concentration in South Africa and the amount of effort it will take to access the right buyers to trigger the export

deal flow. The Hub will work closely with industry associations and BMOs to gain access to the buyers and

adopt an industry approach to facilitating exports. Another challenge that we foresee is the political economic

tension where some countries may consider value addition a priority as opposed to exports of raw or semi-

processed products to South Africa. The Hub approach to export promotion, both to South Africa and the US,

acknowledges the different realities of the respective countries and firms. For firms with competitiveness to

5 Greenberg, S. (2017). Corporate power in the agro-food system and the consumer food environment in South Africa.

The Journal of Peasant Studies, 44(2): 467-496. http://dx.doi.org/10.1080/03066150.2016.1259223


export finished products, we will work with them to obtain the required product certifications for the South

African and AGOA export markets. For firms, for whom processed products certifications are a much higher

hurdle than the Hub program timeframe allows, we will work with them to meet the minimum requirements to

export to South Africa. In Zambia, there is a higher concentration of SMEs that would constitute tier 2 and 3. A

number of these companies may not be export ready to deliver exports within the Hub implementation

timeframes. The Hub will therefore adopt a two-pronged approach of working with tier 1 and 2 companies that

are export ready or near export ready to build their capacity to export. For the tier 3 companies, the Hub will

work with TPSPs and BMOs to build the service providers’ capacity to continue to offer export facilitation

services beyond the life of the Hub.

Strategic Partners:

The Hub will work with various partners to implement the trade promotion activities.

Strategic partner Category Existing Hub relationship

Proposed partnership

Department of Trade, Commerce and Industry

Government entity Existing relationship WTO TFA Implementation

Zambia Revenue Authority Government entity Existing relationship

Coordinated Border Management

Zambia Development Agency TIPA Existing relationship Convening exporters/AGOA steering committee

Ministry of Agriculture Government entity Existing relationship Export implementation

Zambian International Trade & Investment Centre

TIPA Existing relationship Trade promotion subcontract

Africa Business Incentives TPSP Existing relationship Trade promotion subcontract

Africa House TPSP Existing relationship Trade promotion subcontract

International Trade Projects TPSP Existing relationship Trade promotion subcontract

Grain Traders Association of Zambia

BMO Existing relationship Convening exporters/ dissemination of education

IAPRI Private enterprise Existing relationship Convening exporters/ dissemination of education

Zambia Association of Manufacturers

BMO Existing relationship convene Ning exporters/ dissemination of education

Zambia Chamber of Commerce and Industry

BMO Existing relationship convening exporters/ dissemination of education

Zambia Grain Information System

BMO Existing relationship convene Ning exporters/ dissemination of education

National Trade Facilitation Committees

Private enterprise Existing relationship convening exporters/ dissemination of education

Smart Zambia Initiative Private enterprise Existing relationship convene Ning exporters/ dissemination of education

Lusaka Stock Exchange Private enterprise Existing relationship convening exporters/ dissemination of education

South African Grain Information Service

BMO Existing relationship Capacity building

Business Review and Regulatory Agency

Government entity Existing relationship convene Ning exporters/ dissemination of education

Zambia Export Development Fund

TIPA Existing relationship convening exporters/ Dissemination of education

Delivery Mechanisms: The Hub will achieve the intended objectives in Zambia through the following activities.

The Gantt Chart below includes the detailed description and timing of planned activities. Three key mechanisms

will be deployed to achieve the set objectives.

1. Technical Support to TPSPs: The Hub will provide direct support to exporters and TPSPs to enable

the TPSPs to recruit, screen, support, and report on exporters business deals. The relationship between


the Hub and TPSPs will be that the Hub will sign a service agreement with a TPSP spelling out the

deliverables expected as payment milestones. A TPSP recruits exporters and where technical assistance

is required by these companies, the TPSP reaches out to the Hub for grant support to provide the

technical assistance. For example, when a company requires product certification support, the exporter

must demonstrate to the TPSP that they have raised their co-funding for the TPSP to reach out to the

Hub for the 60% grant support.

2. Cost sharing with exporters: The Hub will cost share with exporters to enable them to access product

certification services.

3. TPSP Led Buyer and Trade Events Support: The Hub will provide cost sharing support to TPSPs to

organize buyer missions and trade events at which exporters will attend at their cost.

The Hub will facilitate nine export deals between Zambia and South African buyers to the value of $1.6 - 2

million.

Activity 1.1 In coordination with TIPAs and BMOs facilitate trade deals between targeted exporters and

identified buyers.

• In Q1, the Hub together with the selected TPSPs (e.g. ZITIC, ABI, Africa House, International Trade

Projects and the ZDA) will work to introduce seven targeted Zambian exporters to identified buyers in

the priority sectors via transaction facilitation support meetings.

• In Q2, the Hub will partner with three BMOs such as Grain Traders Association, Zambia Manufacturers

Association, Zambia Chamber of Commerce and Industry and issue one call for expressions of interest

from Zambian exporters to indicate the products they can produce to meet the expected demand in South

Africa.

• In Q2, the Hub will provide at least one TPSPs responsible for Zambia exports with technical support to

recruit, screen, groom, and support exporters to enter the South African market through pairing

arrangements between the TPSPs staff and Hub staff to transfer knowledge and expertise as well as

networks of relationships.

Activity 1.2 Leverage existing partnerships with TIPAs and BMOs to consolidate understanding of the end

market demand in South Africa for targeted sectors

• In Q1, coach the subcontracted TPSPs to recruit 18 potential exporters to fulfil the identified product

demand in South Africa.

• In Q1, the subcontracted TPSP will enter into partnership agreements with the ZDA and the three

BMOs to work with the Hub for capacity building purposes. The partnership agreements will be in the

form of deal notes that involve the Hub providing technical support to the TIPA and TSPSP partners to

co-implement the trade promotion activities to transfer skills and tools from the Hub to market actors.

• In Q2, the Hub will cost share with the TPSP to support them to refine their business model and fill

their trade promotion capacity limitations, through learning by doing such as recruiting and screening 18

Zambian exporters, linking Zambian exporters to South African buyers and providing exporters with

post deal support.

Activity 1.3 Screen companies and conduct due diligence and capacity assessments of potential exporters

in collaboration with BMOs and TIPAs

• In Q1, work with the subcontracted TPSP to implement their performance-based subcontracts to conduct

due diligence on 18 export companies from the Zambia

• In Q2, the TPSP will undertake 18 exporter capacity assessment and deliver technical assistance to the

potential exporters to enable them to overcome the market entry barriers.


• In Q3, the Hub will provide ongoing support to the TPSP and support them to monitor their exporter

customers performance.

Activity 1.4 Link targeted exporters to sources of trade enhancing services to overcome export barriers

• In Q2, the Hub will work with the subcontracted TPSP to co-develop supplier development strategies

with South African buyers that acknowledge the capacity of the potential exporters. The supplier

development strategies will be specific for each buyer and will focus on what outreach support activities

will be provided to potential exporters from Zambia.

• In Q2, the Hub will provide cost sharing solutions and a grant mechanism at two levels. First, the Hub

will provide service contracts to the TPSPs for them to recruit, develop and support exporters in

predefined services. Second, the Hub will provide grant support to two potential Zambian exporters on a

cost sharing basis for them to acquire the necessary certification to export as dictated by the buyers.

Activity 1.5 Support TPSPs to facilitate inward buyer missions from South Africa and regional trade

events

• In Q2, the TPSP will organize buyer missions to Zambia involving five buyers and 18 potential

exporters.

• In Q2, the Hub will cost share on a 60% to 40% basis with the ZDA and three BMOs (ZGTA, ZMA,

ZNCC) to host five buyers in Zambia to meet their potential suppliers and secure an export deal

pipeline. The three BMOs and TIPA will be central to organizing their member companies to ensure that

as many of those that qualify to exporting to South Africa participate in responding to the identified

pockets of product demand in South Africa.

• In Q3, and Q4, the Hub will provide technical and cost sharing support to the contracted TPSPs for the

latter to support their targeted 18 export companies to enter new markets through three trade promotion

events with a particular focus on events in South Africa such as NAMPO (one of the largest agricultural

exhibitions under private ownership in the southern hemisphere), Source Africa, and the Africa Big 7.

The Zambian exporters will be expected to pay for their attendance at these trade events. The Hub will

provide training support for the selected TPSP on trade event relationships, developing a value

proposition, exporter support before, during, and after the trade event, data collection that is important

for their business, developing relationships with other service providers, etc.

Activity 1.6 Facilitate peer learning and sharing of best practices for TIPAs and BMOs in the region

• In Q2 and Q4, three Zambian exporters to participate in learning events in Johannesburg respectively to

reflect on emerging good practices in promoting trade from regional countries to South Africa.


GANTT CHART OBJECTIVE 1

Activities Q1 Q2 Q3 Q4 Partners Hub Activity

Lead

Expected Output

O N D J F M A M J J A S

Objective 1: Increased Exports to South Africa from Zambia

Activity 1.1 In coordination with TIPAs and BMOs facilitate trade deals between targeted exporters and identified buyers

ZDA, ZCCI,

MCTI,

BMOs

Portfolio

Manager

$1.6-2 million exports

concluded

1.1.1 Introduce targeted Zambian exporters to identified buyers in Honey, groundnuts Soya, Macadamia, Sauces, Fish and Sugar Beans

At least seven exporters

introduced

1.1.2 Issue a call for EOIs to Zambian exporters in response to expressed demand for products in South Africa

18 Zambian exporters

identified

1.1.3 Provide TPSP with technical assistance and support to recruit, groom and support Zambian exporters

Activity 1.2 Leverage existing partnerships with TIPAs and BMOs to consolidate understanding of the end market demand in South Africa for targeted sectors

Portfolio

Manager

9 export deals

concluded

1.2.1 Support TPSP to identify seven Zambian exporters ZCCI,

GTAZ,

MCTI

18 Zambian exporters

identified

1.2.2 Develop deal notes outlining the Hub support to TIPAs and TPSPs in Zambia

At least one deal note

with Zambian TPSP

1.2.3 Support TPSPs and TIPAs to define business models to support target exporters to enter the South African market

At least one business

model defined

Activity 1.3 Screen companies and conduct due diligence and capacity assessments of potential exporters in collaboration with BMOs and TIPAs

Contracted

TPSPs

Portfolio

Manager

1.3.1 Conduct due diligence assessments of six prospective Zambian exporters 18 due diligence

assessments conducted

1.3.2 Conduct capacity assessments of six prospective Zambian exporters 18 capacity

assessments conducted

and gaps identified

1.3.3 Monitor and support TPSPs Regional TPSPs

supported, some of

which will support

Zambian exporters



Lead

Expected Output

Activity 1.4 Link targeted exporters to sources of trade enhancing services to overcome export barriers

Contracted TPSPs, Certification companies

Portfolio

Manager

1.4.1Work with TPSPs to develop capacity in 18 Zambian export firms to meet South African market requirements

18 Zambian exporters receive TA

1.4.2 Certification Two Zambian exporters receive grant support

Activity 1.5 Support TPSPs to facilitate inward buyer missions from South Africa and regional trade events

Portfolio Manager

1.5.1 Arrange buyer mission to Zambia for 5 buyers and 18 potential export firms Contracted TPSPs, ZCCI, MCTI, BMOs

One buyer mission in Zambia

1.5.2 Support nine Zambian exporters to enter the South African market Attend 3 relevant trade shows Nine Zambian firms close deals with South African buyers

Activity 1.6 Facilitate peer learning and sharing of best practices for TIPAs and BMOs in the region

Identified export firms

Portfolio Manager

2 regional peer learning events held

1.6.1 Three Zambian exporters participate in peer to peer learning event in Johannesburg

Three Zambian export firms participate in a learning events and two case studies (success stories) published promoting export collaboration


OBJECTIVE 2: INCREASED INVESTMENT (CAPITAL AND TECHNOLOGY) OUT OF SOUTH

AFRICA TO ZAMBIA

Opportunities: Based on our experience, we know that there are different types of investors that are interested in

investing in the region. The 2018 Deloitte Africa Private Equity Confidence Survey (PECS 2019) shows a strong

interest from capital providers to make new investments and help their portfolio companies to grow. Three

sectors were identified as priority growth sectors: food and beverages, manufacturing and industries, and health

care and pharmaceuticals (Deloitte PECS, 2019). The food and beverages industry is expected to grow by up to

7% by 2020. The average transaction size for most capital providers (70%) was $20 million. Most of the capital

providers manage large funds above $200 million with a number of mid-sized funds of $51 million to $200

million. South Africa remains the largest source of funding for deals in Southern Africa given its mature capital

and debt markets. The funds are sourced from pensions/endowments, government/ Development Finance

Institutions (DFIs) and debt markets.

During Year 4, the Hub will introduce Zambian exporters to South African capital providers, and we expect to

facilitate equity, debt, and technology transfer deals, for seven companies. Potential capital providers include

Sebvest Capital Partners, Neu Capital, Sanari Capital, Exeo Capital, Spear Capital , Barak Fund, African

Development Bank and FMO. Expected total value of investment and trade deals from South Africa to the

Zambia is $3.2 million, based on a ticket size of $2 million per transaction for one long term investment deal and

an average ticket size of $200,000 for six trade finance deals.

Challenges: The first challenge the Hub faces is that of convincing capital providers that are more interested in

equity than debt and seek large deal sizes. Previous interventions in finance and investment were largely subsidy

driven and focused on equity. Capital providers often raise concerns about the high transaction costs and

information asymmetries in less developed markets in the sub-region. The Hub will seek to issue contracts to at

least four financial service providers with whom it will buy down the risks that lead to high transaction costs.

The Hub will provide cost sharing arrangements for bespoke commercial and operational due diligence to

validate investments and identifies key risks and opportunities by aggregating the exporters to reduce the

information search and coordination costs. The aggregation of exporters through their BMOs will also create

trust between counterparties.

The second challenge is that of high transaction costs comprised of the fixed costs investors face when

evaluating frontier market opportunities and the costs faced by local firms when trying to raise capital and

navigate the fundraising process. On the capital provider side, these costs may include deploying a team to

source investment opportunities, conducting on-site due diligence, leading financial analysis, and negotiating /

structuring the investment alongside the targeted firm. On the investee side, costs may include retaining a firm to

evaluate financing needs, developing pitch materials, engaging potential funds and face fixed costs to understand

foreign capital options. Both firms may face additional costs of services, including legal and accounting services.

The third challenge the Hub faces is the lack of investor ready business plans among the exporters. Information

asymmetry impacts engagement between capital providers and capital seekers. In challenging frontier markets

like those in Southern Africa, perceived risk and lack of knowledge often dissuade investors from engaging

opportunities. Outside investors assume they are at a significant operational and informational disadvantage in

African markets. They may also lack expertise, bandwidth, and/or geographic presence with resultant hindrances

to parties overcoming information gaps and initiating, managing, and completing the transaction process. On the

investee side, an information disadvantage tied to a lack of familiarity with the investment process is a key

barrier to firms seeking capital.


Such a situation can lead to a low deal uptake by capital providers. The Hub will provide technical assistance

support to the capital providers to conduct independent feasibility studies on business plans, build financial

models and perform valuations to bridge information and expectation gaps. In that regard, the Hub will also

work with the BMOs and TPSPs to run financial literacy sessions to ensure that the capital seekers have the

necessary background information on capital providers’ requirements from capital seekers. In addition, the Hub

will work with the four contracted capital providers to conduct investment road shows in the seven targeted

countries.

The fourth challenge is that capital seekers lack the network, resources and materials to successfully approach

funders and when they do, they tend to ask for the wrong products or be underprepared. Such a challenge can

negatively influence the SMEs capacity to access capital and potentially discourage capital seekers. The Hub

will ameliorate this challenge by partnering with four capital providers that have an interest in developing their

business portfolios in the sub-region and have the capacity to assess the capital seekers based on key financial

metrics, management strength, and strategic positioning. In addition, the Hub will appoint financial service

providers that provide targeted support and appropriate capital introductions through investor networks.

A fifth challenge relates to the risk/return profiles in frontier markets. A lack of capital risk/return reflects that

challenges in Southern African and other frontier markets are not just unpredictability and inadequate risk

sharing (which is a challenge impeding investment) but is also a fundamental mismatch between the risk/ return

profiles and expectations of available capital. The uncertainty, limited liquidity, and returns of investing in

frontier markets makes it difficult to justify investment and mitigate risk. High perceived risk or genuine

constraints may discourage beneficial transactions. The Hub will seek to de-risk capital providers costs of

evaluating deals and where possible will seek to encourage provision of blended finance through deployment of

catalytic capital from public or philanthropic sources (partner with other bilateral programs providing such

support) to increase private sector investment.

Strategic partners:

The Hub will work with various partners to implement the planned activities. The table below provides a

summary of the key strategic partners, their current relationship with the Hub and the proposed partnership with

the Hub in implementing the three objectives.

Strategic partner Category Existing Hub

relationship


Ministry of Commerce Trade and

Industry

TIPA Existing relationship Convening exporters

Disseminating financial education

solution

African Agri Council TPSP Contact established Transaction advisor

Grain Traders Association of

Zambia (GTAZ)

BMO Existing relationship Convening exporters

Zambia of Chambers of Commerce

and Industry (ZCCI)


Zambia Agricultural Commodity

Exchange for Africa ZAMACE)

Commodity exchange Existing relationship Convening exporters

Banker’s Association of Zambia

(BAZ)

BMO Contact established Disseminating financial education

Convening FSPs

ZANACO FSP Contact established Prospective partner of RSA capital

provider

Delivery Mechanisms: The Hub will achieve the intended objectives through the following activities.

1. Technical Support to transaction advisors: The Hub will sign service provider agreements with three

transaction advisory firms to facilitate linkages between capital seekers in Zambia and capital providers


in South Africa. The transaction advisors will be given performance-based contracts to source deal

pipeline, make introductions between capital seekers and capital providers, developing and sharing

needed information such as investor pitches and business plans and participating in deal preparation

meetings. The transaction advisors will provide financial education (where needed) to capital seekers

helping them meet investor requirements for the appropriate financial products. Services will be

provided on a cost sharing basis.

2. Contracting capital providers (debt and equity): The Hub will contract four capital providers to

deliver debt and equity deals on a success fee basis. Deals take a long time to close and the Hub will

design a graduated payment model where milestones will be paid for as they are accomplished. The four

capital providers will be required to deliver two separate types of deals made up of small transactions

($150- $250,000) and large transactions ($1-5 million) with a pre-set subsidy in place directly

correlated to additionality, deal sizes, volumes and transaction impact in the market. The two types of

deals are structured so that capital providers can target both debt and equity and work with a

combination of exporters and other capital seekers. The contracted capital providers will be required to

implement advisory services that include opportunity validation, market intelligence, fundraising

support, due diligence, financial analysis, structuring, neutral facilitation, and post-investment value

addition planning for both capital providers and capital seekers.

3. Technical assistance to South African FSPs and technology providers: The Hub will provide

technical assistance through market studies, study visits, buyer-seller meetings to support capital and

technology providers to better understand the Zambian market and expand their services.

The Hub will facilitate the closure of seven financial deals in Zambia to the total value of $5 million.

Activity 2.1 Facilitate access to finance and technology between targeted exporters and identified service

providers

• In Q1, the Hub will work with three Zambian capital seekers (Zdenakie, Savenga Group, COMACO)

whose capital and technology requirements the Hub is aware of and such capital seekers have expressed

interest to attract capital and technology. Three transaction advisors will be appointed to conduct

opportunity validation, market intelligence, fundraising support, due diligence, financial analysis of the

target enterprises in Zambia. The three deals will serve as the opening portfolio for the deal pipeline.

• In Q1, the Hub will leverage the existing knowledge and investment incurred by the Hub to date to

benefit businesses in priority sectors which have an existing relationship with the Hub. To fulfil this

activity, the Hub will work with the three contracted transaction advisors to develop a deal pipeline of

equity, debt, and technology seekers. Information sources will be the trade finance database developed

during the trade finance mapping exercise and the investor database identified by CrossBoundary over

the past three years.

• From Q2-Q4, the transaction advisors will develop four additional investment teasers/ information

memorandums/ business plans from businesses seeking capital and technology, identify suitable funders,

introduce the business owners to finance and technology providers and participate in initial meetings to

facilitate the deal assessment and negotiation. This activity hence focuses on bankable/ investor-ready

export companies and other capital seekers who may not necessarily be exporters from within the region

with well-defined capital needs.

Activity 2.2 Recruit targeted financial service providers/investors based on previous market mapping

• Activity not applicable in Zambia unless a local FSP partner is required to work alongside a South

African capital provider. This will be determined after the recruitment of the South African FSP/

intermediary partners.


Activity 2.3 Support financial service providers to enhance the models of debt and equity financing

• In Q2, STTA resources supporting South African FSPs (and intermediary partners) recruited in Activity

2.2, will be deployed to Zambia to conduct market assessments to ensure that the enhancements to FSP

financial models will respond to the needs of targeted export firms.

• In Q3, South African FSPs (and intermediaries) will engage with Zambian BMOs and targeted trading

business to concept test ideas during the design of enhanced business models.

Activity 2.4 Implement and refine debt and equity finance models

• In Q3, supported FSPs (and intermediary partners) will start implementing the enhanced business

models in Zambia.

• In Q4, implementing will continue with continuous, iterative learning and refinement of the business

models being tested.

Activity 2.5 Analyze market for potential technology and service transfer opportunities

• In Q1, identify exporters technology needs within Zambia will be conducted by extracting the

information from export firm capacity assessments already conducted.

• In Q1, the Hub will partner with seven BMOs to work with transaction advisors to conduct their member

technology requirements by designing and asking the BMOs to administer the tool to their members

related to the adoption of the new technology. This assessment will also include defining the financing

requirements to make the technology transfer feasible.

• In Q2, establish technology transfer partnership with a suitable technology partner in Zambia that will

enable the services to meet South African quality standards.

Activity 2.6 Link companies to technology providers to close innovation gaps

• In Q2, the Hub will appoint a transaction advisor to structure a deal between the Zambian technology

partner and prospective South African technology provider for technology transfers.

• In Q2-4, the three transaction advisors will utilize the information generated from the technology market

assessments to make introductions between technology seekers and technology providers and conclude

one technology deals.

Activity 2.7 Work with financial service providers to generate financial education products for businesses

• In Q4, distribute the financial education solution via different strategic partners which work with trading

business including BMOs (e.g. Grain Traders Association of Zambia, ZCCI, Banker’s Association of

Zambia (BAZ)); local financial institutions (e.g. ZANACO, EFC Microfinance, FNB Zambia) and

TIPAs (e.g. MTI).




Lead

Expected Output


Objective 2: Increased Investment out of South African to Zambia

Activity 2.1 Facilitate access to finance and technology between targeted exporters and identified service providers

FSP, COMACO, Zdenakie, Savenga Group, Jungle Beat

Portfolio Manager

Severn deals closed $5 million

Activity 2.2 Recruit targeted financial service providers/investors based on previous market mapping

Not applicable in Zambia

Portfolio Manager

Activity 2.3 Support financial service providers to enhance the models of debt and equity financing

BMOs, FSP Portfolio Manager

Activity 2.4 Implement and refine debt and equity finance models Portfolio Manager

Activity 2.5 Analyze market for potential technology and service transfer opportunities 2.5.1 Consolidate technology needs within Zambia by extracting the information from export firm capacity assessments conducted 2.5.2 Design and conduct a BMO member technology requirement self-assessment tool related to the adoption of the new technology


Portfolio Manager

1 report on technology needs in Zambia I BMO technology self-assessment tool developed and handed over

Activity 2.6 Link companies to technology providers to close innovation gaps 2.6.1 Once the new laboratory is established in Zambia, targeted export companies will be referred for relevant testing services


Portfolio Manager

1 deal structured for prospective technology and service provider

Activity 2.7 Work with financial service providers to generate financial education products for businesses 2.7.1 Develop interactive educational products across different cultural groups to develop the learning solution 2.7.2 Distribute the financial education solution via different strategic partners


Portfolio Manager

1 concept testing workshop with BMOs Financial education solution disseminated


OBJECTIVE 3: SUSTAINABLE UTILIZATION OF AGOA

Opportunities: Opportunities exist for the Hub to transfer existing tools, experience and knowledge to TPSPs to

enhance the sustainability of the AGOA utilization support that the Hub has been providing. The Hub also sees

an opportunity related to preparing AGOA steering committees for the AGOA Forum to ensure maximum value.

There is also the opportunity to develop a harmonized strategy or road map for the region for specific eligible

products enabling greater economies of scale and volumes.

Challenges: The first challenge the Hub faces is redirecting the attention of South African exporters from

markets such as Europe and the EU where they have relative competitiveness than the US market. First is the

challenge of distance and relative cost compared to other exporters from Latin American countries. Second is

South Africa’s more well-developed strategies and partnerships with the European Union (EU) through its

Economic Partnership Agreements, and Everything but Arms (EBA) program). Third is a structural level

challenge where there is generally limited government investment towards AGOA initiatives because of limited

financial resources. The fourth challenge is the sunset clause of AGOA with countries not certain what will

happen beyond the 2025 period. The Hub will provide technical support to host countries to enable them to

understand that AGOA is about building a country’s export competitiveness and profile the attractiveness of the

tariff regime offered under AGOA.

The second challenge relates to the exporters’ limited understanding of the US market. While the Hub has been

active in introducing exporters to the US market entry requirements and taking exporters to trade events in the

US, a more sustainable approach is required. With this recognition, the Hub will engage and capacitate select

TPSPs to work with targeted exporters. Reducing direct delivery by transferring the Hub’s work to market actors

will ensure implementation and sustainable utilization of the AGOA program by the targeted exporters now and

beyond the life of the Hub.

Strategic Partners: The Hub will work with various partners to implement the planned activities. The table below

provides a summary of the key strategic partners, their current relationship with the Hub and the proposed

partnership with the Hub in implementing the three objectives.

Strategic partner Category Existing Hub relationship Proposed partnership

Ministry of Commerce Trade and Investment (MCTI)

Government Entity Existing relationship Trade Promotion

Zambia Development Agency (ZDA)

TIPA Existing relationship Trade promotion

Zambia Association of Manufacturers (ZAM),


Zambia Export Development Fund (ZEDF

TIPA Existing relationship Convening exporters

Zambia Chamber of Commerce

and Industry (ZACCI)


Zambia Bureau of Standards Government Entity Government Entity Product certification

Africa Business Incentives TPSP Existing relationship Trade promotion subcontract

Africa House TPSP Existing relationship Trade promotion subcontract

International Trade Projects TPSP Existing relationship Trade promotion subcontract


Delivery Mechanisms: Capacitate South African (e.g. Zurcom, Africa House, Messe Frankfurt) and Zambian

TIPAs (e.g. MCTI, ZCCI) to provide services currently offered by the Hub to targeted export companies in

Zambia – these include skills and tools related to how to organize trade shows and business to business (B2B)

events, preparing firms for participation in trade shows, supporting firms with follow-up after trade shows and

how to establish export linkages with the U.S. Transfer knowledge about AGOA opportunities and requirements

through dissemination of the AGOA toolkit that is in place through ZCCI and MCTI. Support the development

certification and standards infrastructure and capacity in Zambia as described above.

The Hub will facilitate exports to the value of $1.5 million through supporting at least one TPSP to offer market

linking services on a commercial basis. There will also be an improvement in organizational capacity assessment

of Hub-supported national AGOA steering committees.

Activity 3.1 Support AGOA strategy development and review

• An AGOA Response Strategy for Zambia was completed and launched in June 2018. While there is no

activity under this section, the Hub will continue to support Zambia through MCTI in its efforts to

implement some of the recommendations in the AGOA strategy to facilitate increased utilization of the

of the program to increase exports to the United States.

Activity 3.2 Provide capacity building for AGOA national steering committees

• Based on the Hub’s experience over the past three years, for effective monitoring and evaluation of the

implementation of the AGOA Response Strategy for Zambia, the Hub will propose and support the

setting up of an AGOA Reference Group and Steering Committee consisting of and cochaired private

and public sector. The Hub will also capacitate the AGOA Reference Group and Steering Committee.

Activity 3.3 Engage existing TPSP partners via a competitive process to implement market entry support

services

• Starting in Q1, based on the experience and relationships established with the MCTI, the Hub will work

with two entities to capacitate them to serve as TPSPs. In their role as TPSPs, they will enter into

performance based contracts with the Hub to partner to create awareness on US market entry

requirements, including facilitating FDA certification, regional and international export linkages, buyer

missions, and work with Zambian targeted producers of AGOA-eligible export ready products to

participate at trade events.

• Based on the success and demand of this service from both the service providers and beneficiaries, in Q2

the Hub will consider increasing the number of partner TPSPs to four to ensure that more TPSPs are

involved, to increase competition and ensure that more AGOA-eligible exporters in Zambia are all

reached. This might require recruitment of TPSPs from the region to provider required services.

Activity 3.4 Transfer existing tools, systems and knowledge to strengthen TPSP business models

• Based on previous Hub work and experience of the East Africa Trade and Investment Hub project, in Q1

the Hub will build an AGOA toolkit consisting of existing tools, systems and knowledge to transfer to

the targeted TPSPs to help strengthen their current business models. The existing Hub tools consist of

rapid assessment tool (export readiness tool), trade show on boarding formalities (agreements,

contracts), and guidelines on facilitating logistics of travelling to trade shows (visas/movement of

sampling), The AGOA toolkit will include guidelines on the process of trade show preparation,

participating in trade show and post-show support, Export Training Manual, AGOA 101 briefers, etc. In

addition to making the above tools available to the TPSPs, the Hub will help the TPSPs understand how

to use the tools. The transfer of the above existing Hub tools will involve training, workshops, and

working side by side with TPSPs as they apply these tools. Working with the engaged TPSPs, the Hub


will support 3 targeted companies from Zambia to join other companies from the region to attend the

Summer Fancy Food Show 2020 with at least one of the companies exporting to the US. The Hub will

also partner with TPSPs to access Zambian companies with at least one company being certified on food

safety certification.

Activity 3.5 Support TPSPs to organize buyer missions from the US to targeted countries

• Starting in Q2, the Hub will partner with engaged TPSPs, Fairway Markets buyer missions and trade

events to source from the region schedule for March/April 2020. The Hub will work with the TPSPs to

select Zambian companies to join other companies from the region to attend the in-bound Fairway

Markets buyer mission to source from the region schedule for March/April 2020 with one selected to

participate in the Fairway markets organized event in the US around October 2020. The buyer missions

and trade events will run and coordinated by TPSPs with Hub technical support.

Activity 3.6 Facilitate peer learning and sharing of best practices for TPSPs

• In Q2 and Q4, the Hub will compile and summarize the Zambian AGOA performance information in

partnership with TPSPs, and the Zambian AGOA Steering Committee and organize a regional

workshop to reflect on how Zambia performed against other AGOA eligible countries and share its

success stories and lessons learned from implementing the AGOA strategy. The regional workshop will

also involve Zambia collaborating with other AGOA eligible countries to develop joint AGOA

implementation strategies across countries to encourage regional integration.

Activity 3.7 Support AGOA regional learning event

• In Q2, in preparation for participation at the 2020 AGOA Forum scheduled to take place in Washington,

DC, the Zambia AGOA reference group/ steering committee will be invited to attend a pre-AGOA

Forum workshop in Maputo. The intention is to get the eight respective countries to learn from each

other on their AGOA strategies and initiatives and to produce a regional AGOA related calendar of

activities and priorities leading up to the 2020 AGOA forum in Q3/Q4. The event will enable the South

African AGOA Steering Committee to join other AGOA Steering Committees from the seven other Hub

focus countries to learn from each other and share good practice resulting in a roadmap for effective

participation at the AGOA forum. This event will serve as a precursor to the annual AGOA Forum and

will ensure effective participation at the AGOA Forum by Hub focus countries. The outcome of this

event can be used to lobby the region’s position on proposed expectations at the AGOA forum.



Activities Q1 Q2 Q3 Q4 Partners Hub

Activity Lead

Expected Output


Objective 3: Sustainable Utilization of AGOA

Activity 3.1 Support AGOA strategy development and review Not applicable for Zambia

Portfolio Manager

Activity 3.2 Provide capacity building for AGOA national steering committees

3.2.1 Support the setting up of an AGOA Reference Group and Steering Committee

3.2.2 Capacitate the AGOA Reference Group and Steering Committee

ZCCI, MITC, ZAM, ZDA

Portfolio Manager

AGOA Reference Group and Steering Committee for Zambia set up and capacitated

Activity 3.3 Engage existing TPSP partners via a competitive process to implement market entry support

TBC in competitive process

Portfolio Manager

3.3.1 Capacitate TPSPs to create awareness on market entry requirements

TPSPs capacitated to conduct awareness on market entry requirements 3 Zambian firms to attend US trade events with at least one exporting

3.3.2 Based on the success and demand of the above activity, increase the number of partner service providers to ensure that more TPSPs are involved to increase competition and ensure that more AGOA eligible exporters in Botswana are all reached

Increased number of AGOA eligible exporters ready for the US market

3.3.3 Contract TPSP to support buyer seller linkages with USA in AGOA



Lead

Expected Output

eligible products

Activity 3.4 Transfer existing tools, systems and knowledge to strengthen TPSP business models

Portfolio Manager

3.4.1 Develop AGOA toolkit

3.4.2 Conduct workshop to transfer knowledge and tools At least one Zambian TPSP trained on Hub tools and practices

Activity 3.5 Support TPSPs to organize buyer missions from the US to targeted countries


Portfolio Manager

3.5.1 Identify companies in Zambia to be included in the Fairway Markets buyer Mission to source from the region scheduled for March/April 2020

Three export ready Zambian firms identified with one being selected to attend the Fairways event in the US

3.5.2 TPSPs to conduct promotional launch visit to Fairway stores with selected Zambian exporters

Activity 3.6 Facilitate peer learning and sharing of best practices for TPSPs


Portfolio Manager

3.6.1 Zambian TPSP to participate in peer-to-peer learning event for regional TPSPs

Participate in one regional learning event

Activity 3.7 Support AGOA regional learning event ZCCI, ZDA, MCTI

Portfolio Manager

3.7.1 Preparatory workshop to enable public-private sector dialogue and to identify areas for Hub assistance

Common AGOA calendar developed

3.7.2 Follow-up on agreed preparation

3.7.3 Steering committee participation at the Forum in USA

3.7.4 Feedback on Forum and development of national roadmap with public and private sector

One roadmap


OBJECTIVE 4: IMPROVED ZAMBIA’S TRADE AND ENABLING ENVIRONMENT (ZAMBIA

BUY-IN)

Opportunities: The government of Zambia as a member of the WTO has committed to undertake trade

facilitation agreement reforms in order to promote smooth private sector led trade across its boarders. This

presents a good opportunity for the Zambia buy-in project to collaborate with the government in order to assist it

with compliance with various international trade protocols. As a member of SADC, Zambia also needs to

harmonize SPS protocols as they pertain to regional trade, an opportunity for the Hub to also support this

process.

Challenges: Although the government is committed to see that it is in line with international trade regulations as

stipulated by the WTO, it faces several challenges to support implementation of the WTO protocols. One of the

major challenges has been the lack of funds and technical know-how to develop and operationalize a global

facing trade portal which assists private sector players with easy access to trade information. On the other hand,

Customs officers, who are in the fore front of implementing the TFA require training in modern methods of

border clearance as well as in the use of integrated risk management techniques in order to reduce on time and

cost of doing business.

The main approach to achieving the objective will be to collaborate on existing programs and cost share on

interventions working closely with government especially MCTI, the ZRA and the Ministry of Agriculture.

The Hub will work with MCTI to spearhead all trade related reforms and support the Ministry with an in-kind

grant for the development of the Zambia Trade Information Portal. With the ZRA, the Hub will support

coordinated boarder management activities and enhance capacity building of staff. Working closely with the

Ministry of Agriculture’s ZARI, the Hub will support the implementation of SPS standards in the agricultural

value chains. The Hub will support several socialization workshops and stakeholder involvement sessions,

especially in border posts towns to make sure that different private sector traders are familiar with new trade

reforms.

ONGOING ACTIVITIES TRANSITIONING TO YEAR 4

During the year, the Hub will continue to focus on some key ongoing activities which will include the

development and launch of the Zambia trade portal including several private sector sensitization engagements on

its use. Further, it will also continue to enhance ZRA’s capacity as a lead agency for the coordinated boarder

Management. This will include capacity building of ZRA staff on the revised curriculum and strengthened

cooperation with SARS. To fully understand the time and cost of doing business in Zambia, the Hub will support

undertaking of the Time Release Study (TRS) at Chirundu Border in collaboration with World Customs

Organization (WCO). Regarding SPS standards, the Hub will continue to sensitize traders on the use of the

PIMS data base and support some refresher course to plant health inspectors regarding regular updates of plant

health risk profiles.

Strategic Partners: The Hub will work with various partners to implement the planned activities. The main

Zambian strategic partners for the Improved Zambia’s Trade Facilitation and Enabling Environment (Zambia

Buy-in) objective are the Ministry of Commerce Trade and Industries (MCTI), the Ministry of Agriculture

(MAL) through the Zambia Agricultural Research Institute (ZARI), Zambia Revenue Authority and the Business

Review and Regulatory (BRAA). The table below provides an exhaustive summary of the key strategic partners,

their current relationship with the Hub and the proposed partnership in implementing the fourth objective.






Ministry of Commerce Trade and Industry ( National Trade Facilitation Committee – NTFC)

Government Ministry Existing relationship Implementation of Trade Facilitation Agreement (TFA) measures in Zambia

Zambia Chamber of Commerce and Industries

Business Management Organization (BMO)

Contact established Implementation of Trade Facilitation Agreement (TFA) measures in Zambia

Cross Border Traders Association (CBTA)

BMO Existing relationship Implementation of Trade Facilitation Agreement (TFA) measures in Zambia

Customs Brokers Association of Zambia


Zambia Revenue Authority – Customs Division

Public Agency Existing relationship Implementation of Trade Facilitation Agreement (TFA) measures in Zambia

Zambia Compulsory Standards Agency (ZCSA)


Zambia Metrology Agency Public Agency Existing relationship Implementation of Trade Facilitation Agreement (TFA) measures in Zambia

SMART Zambia Institute (SZI) Public Agency Existing relationship Implementation of Trade Facilitation Agreement (TFA) measures in Zambia

Business Review Regulatory Agency

Public Agency Existing relationship Implementation of Trade Facilitation Agreement (TFA) measures in Zambia

Zambia National Farmers Union (ZNFU)


Zambia Association of Manufacturers (ZAM)


Ministry of Agriculture (Zambia Agriculture Research Institute (ZARI)

Government Ministry Existing relationship Creating SPS awareness Developing SPS inspection procedures Operationalizing PIMS Reviewing SPS legislation Convening exporters

Ministry of Fisheries and Livestock

Government Ministry Existing relationship Creating SPS awareness Developing SPS inspection procedures Reviewing SPS legislation Convening exporters

Ministry of Health Government Ministry Existing relationship Creating SPS awareness Convening exporters Developing SPS inspection procedures Reviewing SPS legislation

Zambia Export Growers Association (ZEGA)

BMO Contact established Convening exporters

Delivery Mechanisms: The Hub will work with the National Trade Facilitation Committee (NTFC) within MCTI

in implementing various measures of the Trade Facilitation Agreement (TFA). In addition, it will provide

technical assistance to various public agencies in Zambia including the Zambia Revenue Authority (ZRA)

Customs Department to support the implementation of modern border procedures. Lastly, the Hub will work

closely with the Ministry of Agriculture to support harmonization of various SPS SADC protocols which

support international trade.


The Gantt Chart below includes the detailed description and timing of planned activities.

Activity 4.1 Strengthen the National Trade Facilitation Committee (NTFC)

The Hub supported the empowerment of the NTFC by engaging various stakeholders in improving agency

coordination and in socializing the Trade Facilitation Agreement (TFA) as well as in implementing some of the

TFA measures and the roadmap. The Hub will continue socialization of the TFA among stakeholders in major

towns and borders throughout FY2020. In addition, the Hub will engage an STTA in Q1 to build capacity in the

NTFC secretariat to Monitor and Evaluate (M&E) the TFA measures that are currently being implemented.

Activity 4.2 Provide technical assistance to the private sector to voluntarily comply with SPS standards

The Hub convened workshops to inform the private sector on best practices in SPS as guided by international standards

and best practices. The Hub will continue to engage the private sector to assist them understand SPS measures and comply

with international SPS requirements. The Hub will also continue to present to key stakeholders the AGOA export

opportunities, successes and support towards utilization of AGOA. This has been achieved through workshop

presentations and provision of AGOA exporter guides, which will continue. These activities will be done in Q2

and Q3.

Activity 4.3 Provide technical assistance to the private sector with SPS testing and inspection services

The Hub has conducted a laboratory gap analysis and needs assessment to understand the testing requirements

for Feed the Future and AGOA priority commodities. This year, the Hub will support validation of the findings

of the gap analysis and needs assessment and will develop concrete action plans/road map for the Zambian

laboratory services market system. Zambian public and private laboratories will play a vital role in ensuring

compliance with requirements imposed by importing countries through credible export certification services.

This activity will be done in Q2 and Q3 and will be done through a series of sensitization workshops conducted

for traders in all border towns. The Hub will further provide support to strengthen the technical capacity in

participating laboratories through competitive matching grants.

Activity 4.4 Support to the domestication of SADC SPS policies

The Hub will support the Zambian SPS authorities with the domestication of the SPS Annex to the SADC

Protocol on Trade. Zambia’s current laws governing SPS need to be reviewed or updated to align them with the

provisions of the SADC protocol. A legal expert has already been engaged (Q1) to conduct a gap assessment of

existing Zambian SPS regulations/policies as they relate to the SADC protocols. Review and drafting of the

legal text will proceed in Q2 and Q3, this activity will be followed by a stakeholders validation workshop.

Activity 4.5 Support Zambia SPS National Enquiry points (NEPs)

The Hub has supported the Zambia Agriculture Research Institute (ZARI) in the Ministry of Agriculture with the

development of the Phytosanitary Information Management System (PIMS). This is a web-based database that

stores plant pest lists, commodity lists, pest distribution data and generate pest reports critical for Pest Risk

Analysis (PRA). Development of the PIMS database for Zambia was in line with the Hub’s Enabling

Environment focus on introducing modern trade facilitation tools aimed at reducing the time and cost of

importing and exporting goods, to increase intra-regional and international trade. Since PIMS was already

launched last year, this year the Hub will continue to support ZARI to ensure that the system is fully

operationalized and utilized by various traders and other stakeholders through undertaking joint follow up visits

to border towns to check on how the trained plant health inspectors are internalizing PIMS in the daily work.

This activity will be undertaken in Q2 and Q3.

Activity 4.6 Strengthen the Zambia National SPS Committee to Domesticate regional protocols

The National SPS Committee monitors Zambia’s capacity to implement SPS measures and makes

recommendations for technical cooperation. However, the National SPS Committee established within the


Ministry of Agriculture has not been fully active and is weak. The Hub intends to support the Committee by

reviewing existing SPS Committee mandate, develop and implement a strategic plan. The Hub will continue to

consult the Ministry of Agriculture and other line Ministries and SPS authorities on how best the Committee can

be supported and/or strengthened. This activity will be done on a continuous basis throughout the year.

Activity 4.7 Support to Zambia Revenue Authority’ Chirundu Border (Customs Procedures) improvement

plans

The Hub completed an analysis of selected projects under the TFA provisions that support trade facilitation

solutions relevant to the Hub at Chirundu border post. The list of measures was closely coordinated with the

NTFC, government and private sector. One major proposal resulting from this process was to analyze border

clearance procedures at Chirundu using the World Customs Organization – Time Release Study (WCO-TRS)

methodology. The Hub will, therefore, support the analysis of border procedures on the Zambian side of the

border through a Time Release Study (TRS) to detect bottlenecks in the clearance chain at Chirundu. The study

will involve both private and public sector stakeholders to ensure buy-in from the business community. This

activity will be done in Q1.

On the other hand, the Hub also intends to engage an STTA to support Zambia Customs in improving their risk

management techniques at border points, an activity which will take place in Q2 and Q3.

Activity 4.8 Review of customs procedures training curriculum

The Hub supported the development of customs curriculum and five priority modules for the Zambia

Customs. The Hub further assisted the customs division with development of a draft coordinated border

management policy. On the other hand, the Hub plans to assist Zambia Customs trainers with skills

development in collaboration with the Customs South Africa (SARS) in Q2 and Q3. The Hub will therefore

facilitate 10 Subject Matter Specialists (SMSs) within the Zambia Customs to gain skills on training new and

existing officers until the Customs administration gains capability to effectively apply the TFA measures that

Zambia has committed to implement.

Activity 4.9 Assessment of Fees and Charges

The Hub supported the MCTI under the Business Review and Regulatory Agency (BRRA) to assess fees and

charges on importation, exportation and when in transit. The fees and charges report was validated and approved

by many stakeholders. The Hub has supported the printing of 400 copies of the report. The report made a good

number of recommendations for Zambia to conform to the WTO-TFA regime on fees and charges. In FY2020,

the Hub will therefore support the dissemination of information on fees and charges to the general trading public

highlighting recommendations and the requirement to abide to the WTO-TFA. This activity will be done

throughout the year to make sure that as many traders as possible are given information on fees and charges.

Activity 4.10 Harmonize SPS Border Inspection Procedures

Hub’s support towards the development of harmonized risked based SPS inspection standard operating

procedures and strengthening inter and intra border coordination to streamline border procedure will

significantly shorten process of clearing products by the different border agencies. The Hub intends to support

the Ministry of Health (the national competent authority on food safety), Ministry of Agriculture (national

competent authority on plant health) and Ministry of Livestock and Fisheries (national competent authority on

animal health) towards the development of harmonized border processes. This activity is planned for Q2 and Q3

of FY2020.


Activity 4.11 Develop resilient value chains through an agricultural information system

The Hub will support Zambian grain industry stakeholders to collaborate and coordinate the establishment of the

Zambia Grain Information System (ZAGIS). ZAGIS will collect, process, analyze, and distribute reliable market

information related to grain and oilseeds trade. The aim of this activity is to develop improved grain trading and

policy predictability to inform regional commodity trading. In addition, this activity is expected to contribute to

transformation of markets through formal trade, benefitting small farmers, enterprises and consumers using a

market systems/ value chain approach. ZAGIS will be benchmarked against the experience of the Grain Market

Information Service in South Africa (www.sagis.org.za). The South African model is widely recognized as a

cost-effective and efficient system, serving as a replicable model for other countries in the SADC region. This

activity will be undertaken throughout FY2020.

Activity 4.12 Support to LuSE and ZAMACE on the merger

The Hub intends to facilitate support to the merger of the Lusaka Securities Exchange with ZAMACE. The

design and delivery of institutional support for LuSE and ZAMACE integration is expected to lead to a

transition to more orderly, stable and structured trading in the grain industry in Zambia. This activity is likely to

take place throughout the year and may be concluded by the Q4.

Activity 4.13 Support the development of the Z-TIP

As part of the WTO-TFA, all member states are required to make trade information readily available. In order to

help Zambia to comply with this requirement, the Hub will assist the government of Zambia with a grant to

acquire the standard World Bank tool kit which will be customized to develop the Zambia Information Trade

Portal. A team of experts already commenced working on the trade portal in Q1 and this activity will continue

into Q2. In addition, the hub will provide support to build capacity of Ministry of Commerce Trade and

Industries (MCTI) and SMART Zambia Initiative (SZI) staff in updating and maintenance of the portal after

official hand over. After the launch, the Hub will assist the MCTI in promotional and advertising activities to

ensure full and sustainable use of the portal by the public.

http://www.sagis.org.za/




Lead

Expected Output


Objective 4: Improved Zambia’s Trade Enabling Environment (Zambia Buy-in)

Activity 4.1 Strengthen the National Trade Facilitation Committee (NTFC)

ZCCI,ZA, CBTAZ, NTFC

Country Rep

NTFC strengthened 3 Training workshops

Activity 4.2 Provide technical assistance to increase compliance with SPS standards

Private sector

Country Rep

150 private sector traders assisted with SPS standards training

Activity 4.3 Provide technical assistance to the private sector with SPS testing and inspection services

Public and private sector

Country Rep

3 laboratories capacitated

/ supported through grants

Activity 4.4 Support to the domestication of SADC SPS policies

Ministries of Agriculture, Health and Livestock

Country Rep

SADC SPS policies

domesticated in Zambia

using STTA of legal expert

Activity 4.5 Support Zambia SPS National Enquiry points (NEPs)

ZARI Country Rep

PIMS sensitized and

strengthened

Activity 4.6 Strengthen the Zambia National SPS Committee to Domesticate regional protocols

SPS Committee / Ministries of Agriculture, Commerce, Health and Livestock

Country Rep

1 National SPS committee

and 3 NEPs supported /

strengthened

Activity 4.7 Support to Zambia Revenue Authority’ Chirundu Border (Customs Procedures) improvement plans

ZRA Country Rep

I Coordinated Boarder

Management policy

reviewed and approved

Activity 4.8 Review of customs procedures training curriculum ZRA Country Rep

Training curriculum of

ZRA customs Reviewed

4 Revised Modules

approved for training

Activity 4.9 Assessment of Fees and Charges Ministry of Commerce / BRRA

Country Rep

Information disseminated

to the general public

Activity 4.10 Harmonize SPS Border Inspection Procedures Ministries of Agriculture, Health and Livestock

Country Rep

2 SPS border inspection

procedures developed &

published



Lead

Expected Output

Activity 4.11 Develop resilient value chains through an agricultural information system

Agribusiness, Ministry of Agriculture, GTAZ, MAZ, ZAMACE

Country Rep

5 private sector

companies participate in

grain Information System

120 individual traders

trained in grain

information system

Activity 4.12 Support to LuSE and ZAMACE on the merger LuSE, ZAMACE

Country Rep

45 traders participate on

LuSE – ZAMACE platform

Activity 4.13 Support the development of the Z-TIP MCTI Country Rep

1 Zambia Trade

Information Portal

developed and launched

Activities Expected Outputs for Year 4

Activity 4.1: Strengthen the National Trade Facilitation Committee Output 4.1: 3 training workshops (including 1 for M&E) for the NTFC

Activity 4.2: Provide technical assistance to increase compliance with SPS standards

Output 4.2: 150 private sector traders assisted with SPS standards training

Activity 4.3: Provide technical assistance to the private sector with SPS testing and inspection services

Output 4.3: 3 laboratories capacitated/supported through grants

Activity 4.4: Support to the domestication of SADC SPS policies Output 4.4: SADC SPS policies domesticated in Zambia using short-term legal expert

Activity 4.5: Support Zambia SPS National Enquiry points (NEPs) Output 4.5: Phytosanitary Information Management System (PIMS) sensitized and strengthened

Activity 4.6: Strengthen the Zambia National SPS Committee to Domesticate regional protocols

Output 4.6: 1 National SPS committee and 3 NEPs supported strengthened

Activity 4.7: Support Zambia Revenue Authority’s Chirundu border (Customs Procedures) to improve improvement plans

Output 4.7: 1 Coordinated border management policy reviewed and approved

Activity 4.8: Review and revise customs procedures training curriculum • Output 4.8a: Training curriculum of ZRA Customs reviewed

• Output 4.8b: 4 revised training modules approved


Activities Expected Outputs for Year 4

Activity 4.9: Assessment of Fees and Charges Output 4.9: Information disseminated to the general public in at least 5 workshops

Activity 4.10: Harmonize SPS Border Inspection Procedures Output 4.10: 2 SPS border inspection procedures developed & published

Activity 4.11: Develop resilient value chains through an agricultural information system

• Output 4.11a: 5 private sector companies participate in grain information system

• Output 4.11b: 120 individual traders trained on grain information system

Activity 4.12: Provide support to the merger of LUSE and ZAMACE Output 4.12: 45 traders participate on LUSE–ZAMACE platform

Activity 4.13: Support the development of the Z-TIP Output 4.13: 1 Zambia Trade Information Portal developed and launched


ZAMBIA INDICATOR TABLE FY2020

Objective Indicators

Reporting Frequency

Related

Objectives

FY2020 Targets

1 EG.3.2-23 Value of targeted agricultural commodities exported

with USG assistance

Quarterly Objective 1

Objective 3

$2,64 million

Region-SA: $1,44 mil

AGOA: $1,2 mil

2 Value of targeted non-agricultural commodities exported with

USG assistance [Custom]

Quarterly Objective 1

Objective 3

$0,66 million

Region-SA: $0,36 mil

AGOA: $0.3 mil

3 Percent of firms/organizations with increased profitability or

increased self-sufficiency [Custom]

Annual Objective 1

Objective 2

Objective 3

25% of assisted firms report increased

profitability self-sufficiency

Outcome Indicators

Reporting Frequency

Related Outputs

FY2020 Targets

4 CBLD-9 Percent of USG-assisted organizations with improved

performance

Annually Output: 1.1, 1.3,

2.1, 2.3, 2.6, 2.7,

3.4, 3.5

70% of agricultural firms expected to apply

improved management practices report

improved performance

5 Percent of USG-assisted non-agriculture organizations with

improved performance [Custom]


2.1, 2.3, 2.6, 2.7,

3.4, 3.5

70% of agricultural firms expected to apply

improved management practices report

improved performance

6 EG.3.1-14 Value of new USG commitments and private sector

investment leveraged by the USG to support food security and

nutrition

Quarterly Output: 2.1, 2.2,

2.3, 2.4, 2.6

$2,4 million

7 Value of new USG commitments and private sector investment

leveraged by the USG to support economic growth in non-

agricultural targeted sectors [Custom]


2.3, 2.4, 2.6

$0,6 million

8 EG.3.2-27 Value of agriculture-related financing accessed as a Quarterly Output: 2.1, 2.2, $1,6 million


result of USG assistance

2.3, 2.4, 2.6

9 Value of non-agriculture-related financing accessed as a result

of USG assistance [Custom]


2.3, 2.4, 2.6

$0,4 million

10 Number of agricultural firms that have applied improved

organization-level technologies or management practices with



2.1, 2.3, 2.6, 2.7,

3.4, 3.5

19 firms

11 Number of non-agricultural firms that have applied improved

organization-level technologies or management practices with



2.1, 2.3, 2.6, 2.7,

3.4, 3.5

5 firms

12 EG.3.2-24 Number of individuals in the agriculture system who

have applied improved management practices or technologies

with USG assistance


2.1, 2.3, 2.6, 2.7,

3.4, 3.5

25 individuals

13 Number of individuals in the non-agriculture system who have

applied improved management practices or technologies with



2.1, 2.3, 2.6, 2.7,

3.4, 3.5

7 individuals

14 Number and value of export deals facilitated [Custom]

Quarterly Output: 1.1, 3.4

10 deals

9 deals: Region-SA

1 deal: AGOA

15 Number and value of finance deals facilitated [Custom]

Quarterly Output: 2.1

7 deals

16 Number of firms receiving USG funded technical assistance

[Custom]


3.4

29 firms

17 Number of individuals participating in USG assisted trade and

investment related programs [Custom]


3.4

38 individuals

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