Zambia - India Relations
 
 
 

1. Political: The leaders of Zambian freedom struggle, such as Dr. Kenneth Kaunda, drew inspiration from India’s struggle for freedom, particularly from Mahatma Gandhi. While India gave support to the economic and technical development of Zambia, the latter reciprocated by supporting India on issues of importance to it, such as India’s nuclear tests in 1998, terrorism, the issue of J&K and India’s admission as a Permanent Member in the expanded UN Security Council.


2. High level visits: During his stay in power, Dr. Kenneth Kaunda paid more than ten visits to India, beginning 1967. From the Indian side Smt. Indira Gandhi, paid three visits to Zambia in 1964 (as Information & Broadcasting Minister), and in 1970 and 1976 as Prime Minister. Presidents V.V. Giri and Sanjiva Reddy visited Zambia in 1974 and 1981 respectively followed by Prime Minister Rajiv Gandhi in 1986 and President Venkataraman in 1989. President Chiluba paid a state visit to India in October 1993.


3. Late President Mwanawasa paid a state visit to India from April 20-25, 2003. Thereafter, several high level visits have taken place from Zambia, which include: Energy Minister George Mpombo in March 2005 to attend the CII Conclave on “India-Africa Project Partnership”; Finance Minister Ng’andu Mgande in September 2005 for the Joint Permanent Commission meeting in New Delhi; visit of the First Lady, Mrs. Maureen Mwanawasa to India from October 8-15, 2005 under ICCR’s Distinguished Visitors’ Programme; Agriculture Minister Mundia Sikatana visited India in March 2006; Lt Gen I.S.A. Chisuzi, Army Commander in May 2006 and the Zambian Parliamentary Delegation led by Speaker of National Assembly in September, 2007 to attend 53rd Commonwealth Parliamentary Conference. In 2008, Mr. Felix Mutati, Zambia’s Commerce, Trade & Industry Minister visited Delhi to participate in CII’s India Africa Conclave, on March 19-21,2008 and again on 17th September, 2008 on way to China. President Rupiah Banda, then in capacity of Vice President, visited India from 4-9th April, 2008, to participate in India Africa Forum summit.


4. The India Africa Forum summit in April, 2008 has given a new thrust to India’s engagement with Africa with increase in existing credit lines to Africa from US$ 2.15 billion to US$ 5.4 billion till 2012; duty free access to 85% of India’s total tariff lines as well as preferential duty access to 9% of India’s total tariff lines by Africa’s 33 LDCs; grant of US$ 500 million to Africa in next 5-6 years and; increase in ITEC training slots from 1100 to 1600 a year to African countries. The Second India Africa Forum Summit (IAFS-II) held in Addis Ababa in May 2011 built upon the foundations of the historical relationship that existed between India and Africa, and designed a new architecture for a structured engagement, interaction and cooperation between India and our African partners in the 21st century. The Summit celebrated our friendship and renewed our commitment to Africa. At the Summit, Prime Minister Manmohan Singh said: “the India-Africa partnership rests on three pillars of capacity building and skill transfer, trade and infrastructure development”. Under the decisions of the IAFS, three institutions viz. a Human Settlement Centre, an Entrepreneurship Development Institute and a Cluster of Biomass Gassifier Systems are proposed to be established in Zambia.


5. In recent years from Indian side, the Speaker of Lok Sabha, Shri Manohar Joshi paid an official visit to Zambia with a 7-member Parliamentary delegation from February 9-13, 2003. During the visit, then Zambian President Levy P. Mwanawasa publicly assured our Speaker on February 13, 2003 that Zambia would support India in her admission as a Permanent Member of the expanded UN Security Council and on the terrorism issue. Smt. Shashi Tripathi, Secretary (West), Ministry of External Affairs paid an official visit to Zambia from February 27-March 1, 2005 for Foreign Office Consultations. During this visit, India and Zambia signed an agreement to institutionalize Annual Foreign Office Consultations. Shri. Suresh Reddy, Speaker Andhra Pradesh Assembly, visited Zambia in January, 2007.

Hon’ble Vice President of India, Shri M. Hamid Ansari, paid an Official visit to Zambia from 5-7 January, 2010. During the visit, Hon’ble Vice President announced a new line of credit of US$75 million for developmental projects in Zambia and a grant of US$5 million for projects in health, education and social sectors. A Loan Agreement between EXIM Bank of India and the Zambian Ministry of Finance and National Planning was signed to extend to Zambia a US$50 million line of credit for the Itezhi Tezhi hydropower project in which TATA and ZESCO are joint venture partners.


6. Ministerial meeting of LDCs in New Delhi: Hon. Fashion Phiri, Deputy Minister of Foreign Affairs, represented Zambia at the Ministerial Meeting of LDCs in New Delhi from 18-19 February 2011. Highlight of this Conference was showcasing by India of its own national instruments of mutually beneficial cooperation that are in the forefront of assisting the LDCs – (i) ITEC, (ii) Duty Free, Quota Free (DFQF) regime for LDC’s exports to India, (iii) E-connectivity Project; and (iv) Government of India’s credit line Programme.


7. Cooperation in Defence field: Several Zambian defence chiefs and about 300 other defence officers have been trained in the Indian defence institutions. Several Indian army and air force training teams were deputed to Zambia in the 1970s and 1980s for training of the Zambian Armed Forces. India had deputed, since 1994, a Military Advisory Team comprising four officers (reduced to three officers in 2008) in Defence Services Command and Staff College in Zambia. This deputation came to an end with the departure of the team in March 2010. In 2006-07, India gave ten training slots, and in 2007-08, seven slots to the Zambian Armed Forces, under the ITEC programme. In 2008-09 two slots were utilized including one course at DSSC, Wellington. In 2009-10 seven slots were utilized and in 2010-11 India offered 16 training slots out of which 9 were utilized. The recent visits by Indian side to Zambia include that of Maj. Gen. R.P.S. Malhan, ADG (Staff Duties) 31st August- 2nd September, 2006; Lt. Gen Susheel Gupta, DCOAS (IS&T) 15-17th March 2007; Major General Vinay Bhatnagar, DG (Staff Duties) 28th November- 1st December, 2007; Lt. Gen SPS Dhillon, Deputy Chief of Army Staff (IS&T) (March 18- 21, 2009); National Defence College (NDC) delegation from 10-15 May, 2009 and; Maj.Gen Chander Prakash, Additional Director General (Staff Duties) from 3-6 June, 2009.


8. Economic cooperation: Over the years, India has provided considerable economic assistance to Zambia. In 1979 and 1982, India extended government and EXIM Bank credits to Zambia totaling Rs. 25 crores. In 1989, India provided railway wagons costing about Rs.8 crores to Zambia under the Africa Fund. Approval of the GoI for the Zambian proposal for a LoC of US$50 million for setting up of pre-fabricated health posts in the rural areas of Zambia has been conveyed to the Government of Zambia in January 2012. Around 2400 civilian Zambians have been trained in India under ITEC in various disciplines so far. In February, 2008 India extended a grant of Rs. 1 crore for flood relief.


9. During President Mwanawasa’s visit to India in April 2003, India extended a credit line of $ 10 million (out of which $ 8.5 million were utilized for purchase of Tata trucks and $1.5 million for procurement of vocational tool kits), grant assistance of US $ 100,000 for donation of anti-HIV/AIDs medicines and another grant of Rs. 25 million for donation of agricultural equipment to Zambia. India also waived off the inter-governmental credit amounting to about $ 3 million outstanding against Zambia. Similarly, it donated 10,000 tons of non-basmati rice to Zambia to alleviate the food shortage. During the visit the number of ITEC slots available to Zambia was increased from 30 to 50. This was further increased to 60 in 2007-08 and subsequent to India Africa Forum summit was further increased to 80 in 2008-09. 75 in 2009-10, 86 in 2010-11, and 91 in 2011-12.


10. Bilateral Trade: India’s exports to Zambia are at US$132.27 million (2007-08), US$ 107.43 million (2008-09), US$ 88.34 (2009-2010) and India’s imports from Zambia are at US$74.84 million (2007-08), US$ 208.40 million (2008-09) and US$102.67 (2009-10). India’s export items include drug and pharmaceuticals, machinery and instruments, transport equipment, cotton yarn and fabrics, plastic, rubber, chemicals, and electronic goods. India’s imports from Zambia include non-ferrous metals, ores (copper and cobalt), semi-precious stones and raw cotton. India and Zambia have set up a Joint Permanent Commission at the Ministerial level, its last meeting was held in New Delhi on September 9-10, 2005.


11. ITPO led the participation of Indian companies in the Zambian Agricultural and Commercial Show in Lusaka in August 2002-2003. Zambia has sent private sector led trade delegations to India to participate in trade fairs. CII Conclaves on India-Africa Partnership have been held in New Delhi, (March 2005); in Lusaka (April 24-25, 2006); in New Delhi (October 9 – 11, 2006); and again in New Delhi on March 19-21, 2008. An UNCTAD-EXIM Bank of India Investment Forum was held in Lusaka on 11-12th June, 2007 on ICT and pharmaceuticals. Subsequently, a CHEMEXCIL delegation visited Lusaka from 11-14th November, 2007 and took part in Buyer Seller Meet along with local chemical industryA 25-member delegation of the Pharmaceuticals Export Promotion Council (PHARMEXCIL), representing 21 pharmaceutical companies visited Zambia from 3 to 6 August, 2009. A Buyer-Seller Meeting (BSM) was held on August 4, 2009 which was inaugurated by Zambia’s Deputy minister of Commerce, Trade and Industry, Mr. Richard Taima. About 30 local companies participated in the BSM. Ms. Esnat Mwape, Director General, Pharmaceutical Regulatory Authority of Zambia and two representatives of pharmaceutical industry, Rakesh N. Shah, MD, Pharmnova Zambia Limited and M. Krishna Swamy, MD, Alliance Pharmaceuticals Ltd. participated in the Indo-Africa Pharma Business Meet held in Hyderabad from September 25-27, 2009 at the invitation of Pharmaceuticals Export Promotion Council.


12. More recently, there has been renewed interest in India for trade and investment with Zambia.

(i) An 18 member business delegation, which included government officials, participated in the 7th CII-EXIM Bank Conclave on India Africa Project Partnership 2011 held in New Delhi from March 27-29, 2011.

(ii) Zambian Government delegation visited India for seeking investments from India under the Public-Private Partnership (PPP) – Zambian government delegation visited India from July 29-August 5, 2010 with the objective of attracting investments from India through the (PPP) concept. The delegation included Deputy Minister of Finance and National Planning David Phiri and Deputy Minister of Commerce Trade and Industry Lwipa Puma. They visited Delhi and Mumbai. Around 30 Indian companies took advantage of the Public Private Partnership concept and entered into various investment portfolios. Deputy Minister of Finance and National Planning David Phiri met Secretary (West) in the Ministry of External Affairs.

(iii) An MoU was signed between Zambia International Trade and Investment Centre (ZITIC), Lusaka and Indo-African Chamber of Commerce & Industries (IACCI) for a working partnership on May 13, 2010, during the Africa Day Symposium organized by IACCI in Mumbai on May 13 & 14, 2010.

(iv) Pan African e-networking project : The e-networking project was completed by the TCIL – Patient End Location (PEL) Centre at University Teaching Hospital, Lusaka and was commissioned on November 05, 2009; Learning Centre at Mulungusi University, Kabwe on November 06, 2009; and VVIP Centre (video conferencing) at State House on November 17, 2009. The Pan-African e-Netowrk Project for Zambia was successfully inaugurated through Video Conferencing at the Mulungushi University in Kabwe on August 16, 2010. Zambian Minister of Communications and Transport, Hon. Professor Geoffrey Lungwangwa interacted with Hon’ble EAM at the Tele-education facility installed under the project at Mulungushi University in the town of Kabwe.

(v) An MoU was signed on October 5, 2009 in New Delhi between the Golden Valley Agricultural Research Trust (GART) of Zambia and the Indian Council for Agricultural Research (ICAR) for professional cooperation and collaboration in Agricultural Research and Education in the field of (a) exchange of scientists and technologists, (b) exchange of germplasma and breeding material (c) exchange of scientific literature information and methodology and (d) exchange of scientific equipment as available and required in the programme of common interest. A four member team from ICAR led by Secretary ICAR proposes to visit Zambia in the first week of June, 2011 to discuss technical programmes of interest of both the countries.

(vi) Hole in the Wall Computer Literacy Project - Under this programme HiWEL, Delhi (Hole in the Wall Education Limited) commissioned two Hole in the Wall learning stations in two schools (Vera Chiluba Basic & Ngwelele Basic School) in Lusaka on December 12, 2008. The expenditure of USD 60,000/- incurred on this project was wholly funded by India. The MoU was signed between GoI and GoZ on Hole – in - the - Wall Project on September 12, 2007.

(vii) An exhibition and seminar on low cost housing was organised by Building Materials and Technology promotion Council (BMTPC), Ministry of Housing & Urban Poverty Alleviation (HUPA), Govt. of India was in Lusaka on 9-10th April, 2008. In December 2010, a detailed questionnaire and a draft MoU was received from BMTPC seeking inputs from the Government of Zambia which was forwarded by the High Commission to Zambian Foreign Office with the request to identify the agency for the said project and also furnish its response on the MoU. A response from the Zambia side is awaited.

(viii) Health Minister, Kapembwa Simbao launched the Vision Care Appasamy Eye Hospital in Lusaka on 25th June, 2009 – a joint venture between Vision Care Centre of Zambia and Appasmy Associates of India. The Hospital provides both minor and major eye services locally.


13. Investments from India

(i) Phase-1 of the Konkola Deep Mining Project (KDMP) and the ultramodern Nchanga Smelter of the Konkola Copper Mines (KCM) were launched by President Rupiah Banda on April 20, 2010 at Chingola. KCM is a subsidiary of the Vedanta Resources group (the parent company M/s Sterlite Industries in India). While Vedanta Resources is India-owned, they are registered in UK. M/s Vedanta Resources, had invested $ 48 million in 2004 in Konkola Copper Mine (KCM) to acquire a majority stake. With the launch of these two projects, KCM aims to reach the target of producing 500,000 tonnes of finished copper per annum by 2013. Their combined investment in Konkola Deep Water Copper Mining Project, Sulphuric Acid plant and new Smelter has touched US$2.2 billion. KCM’s investment is expected to reach US$3 billion in the next three years.

(ii) RJ Corporation, an Indian firm, has pledged to invest US$30 million over the period of six years. The company would spend US$15 million on manufacturing plant for Pepsi in Phase I of the project. In Phase II, the firm would construct another plant for manufacturing fruit drinks at a cost of another US$15 million. President Rupiah Banda, laid the foundation of Pepsi Plant in Lusaka on January 17, 2000 and it started its bottling production in October 2010.

(iii) M/s Nava Bharat Singapore Limited, a subsidiary of Nava Bharat Ventures Ltd. Hyderabad, has purchased 65% equity shares in Mamba Colleries Ltd. Government of Zambia retains the remaining 35% shares through Zambia Consolidated Copper Mine Investment Holdings (ZCCM-IH). Nava Bharat will invest US$108 million in the recapitalization of Mamba Colleries and the installation of the new coal handling and washing plant. Nava Bharat would also develop a coal fired power plant of a minimum generating capacity of 270 megawatts using the low grade coal of Mamba Colleries.

(iv) Taurian Manganese Ltd, one of the group of companies of Dharni Sampada Pvt. Ltd. In India, has invested about US$20 million in 2010 in manganese mining and plans to invest another US$300 million in construction of a manganese processing plant in Serenje district in Central Province. It will be one of the biggest manganese processing plants in Africa.

(v) Bharti Airtel launched its new brand, Airtel Zambia, in November 2010. The new brand comes with a promise to meet the emerging needs of customers with innovative, affordable and relevant solutions to empower consumers and will provide low tariffs and roll out deep in rural areas and bridge the digital divide.

(vi) The other major Indian investments include a joint venture – Indo-Zambia Bank - with 60% equity held by three Indian public sector banks – Bank of India, Bank of Baroda and Central Bank of India – and remaining by the Zambian government.

(vii) EXIM Bank of India has a 34% share in Development Bank of Zambia after a debt settlement agreement with the Government of Zambia, who owed $18.8 million to EXIM Bank. Out of $18.8 million, $9.4 million was written off, $8 million paid by the Government of Zambia in six installments to EXIM Bank and $1.4 million invested in DBZ and EXIM Bank given 34% equity. Now the EXIM Bank’s equity stands at 20%, due to increase in the equity subscribed/paid up by other institutions.

(viii) An agreement was signed by EXIM Bank of India and Indo-Zambia Bank (IZB) in Lusaka under which the former would provide a credit of US$5 million to IZB to be utilized for import of capital goods from India.

(ix) Investments of TATA

a) TATA invested about $8 million in renovation of a five-star hotel called Taj Pamodzi, which is being managed by the Taj Hotels group.

b) In October, 2006 TATA set up a vehicle & bicycle assembly plant in Ndola with investment of US$ 10 million.

c) Zambia Electricity Supply Company (ZESCO) and TATA Africa Holdings have formed a joint venture company called Itezhi Tezhi Power Corporation Limited (ITPC) to carry out Itezhi-Tezhi ($200 million) power project. India has provided a Line of Credit (LOC) of US$ 50 million to Government of Zambia for this power project.

d) TATA is also collaborating with the Copperbelt Energy Corporation (CEC) for 36 MW power project in the Copperbelt.

e) TATA acquired a leather tannery from Zambia Development Agency (ZDA) in February 2009 for US$1.164 million at Kabwe. The company plans to upgrade the tannery with further investment of about US$4 million in the next five years. The Tannery has been operational for 2 years and is making steady progress. The export has doubled in the year 2010-11 and the company is taking aggressive steps to double its production in the year 2011-12 and upgrading the facility to become one of the best in the industry which will result in further increase in investment. The company has invested about $100,000 in the water effluent system and to further equip and upgrade the tannery and are also investing in the samming and splitting machinery which is worth nearly $150,000.

f) Hindustan Syringes and Medical Devices Limited (HMD), one of the largest producers of single use syringes in India, entered into a partnership with TATA-Zambia to promote prevention of Injection safety and Infection prevention by the use of Auto-Disable (AD) Syringes in Zambia. TATA-Zambia have donated 10,000 AD syringes to Ministry of Health to do a field trial as the government is working towards making a policy decision on the use of AD syringes. Tata Consultancy Engineering (TCE) is providing consultancy services to ZESCO for the Kariba North Power Plant.


14. Many persons of Indian Origin, who settled down in Zambia many years back, have taken local nationality and have invested in precious stones mining, agriculture, horticulture and chemicals. President Rupiah Banda on 11thMarch, 2009 inaugurated a US$10 million mobile phone assembly plant in Lusaka of Melcome Group – a company owned by a local Person of Indian Origin. This investment was under Japan’s “Triangle of Hope” initiative, which promoted economic development of third world countries. Trade Kings, a company owned by Zambian Indians, have invested over US$125 million and have set up the first ever integrated steel plant in the country at Kafue.


15. Bilateral Agreements

(i) On 17th August, 2007, India and Zambia successfully concluded review of Convention between India and Zambia for Avoidance of Double Taxation. The draft Agreement has been approved by both sides and is awaiting to be signed.

(ii) Keeping in view the ever growing economic and commercial exchanges between India and Zambia, the increase in volume of Indian investments in Zambia and the continuing efforts by both the countries to further increase these exchanges, India’s Ministry of Finance has proposed to conclude the Bilateral Investment Promotion and Protection Agreement (BIPPA) with Zambia. It has been pending with Zambia since February 2005. Certain amendments proposed by us were under consideration by the Zambian side. However, due to changes/inclusion of articles in the Draft model text necessitated by changes in the global business environment, another Draft model Agreement was submitted by GoZ in May 2008. Another model text was sent to GoZ in December 2010 which is reportedly pending with the Zambian Ministry of Commerce, Trade and Industry for their comments.

(iii) Zambian Minister of Communications and Transport, Prof. Geoffery Lungwangwa attended the 4th Connecting Rural Communities Asia Forum 2011 held in Jaipur in January 2011. During the visit he had meeting with our Ministers of Communications & IT and Transport and also with the Chairman of Telecom Regulatory Authority of India. During the meetings, it was agreed to establish the following MoUs: (a) An MoU between the Ministry of Communications & IT, (GoI) and the Ministry of Communications & Transport (GoZ) for collaboration in e-governance roll out, to share experience and best practices as well as training; (b) An MoU between Telecom Regulatory Authority of India and the Ministry of Communications & Transport (GoZ). Now Zambian Foreign Office requested us through a Note Verbale to inform the appropriate Indian authorities to initiate these MoUs for the consideration of the Government of Zambia. The request was forwarded to MEA.

(iv) The two countries signed an Agreement for Cooperation in Trade and an MOU for Cooperation in Agriculture on April 21, 2003 during the visit of the Zambian President to India. The two countries signed on February 28, 2005 a Protocol for Institutionalization of the Annual Foreign Office Consultations during the visit of Secretary (West), MEA to Zambia. No further meeting has taken place.


16. UNCTAD : A high level meeting on Trade Capacity Building and Competition Policy for African LDCs, under the theme “Competitiveness : Key to economic prosperity” was held in Lusaka on May 10-12, 2010 with the support of UNCTAD, Zambian Ministry of Commerce, Trade and Industry and Indian Ministry of Commerce and Industry. The Indian Delegation made presentations on DFTP, India’s aid for trade profile including technical cooperation and other capacity building programmes, India’s business perspective vis-à-vis LDCs and UNCTAD India Case Study with relevance to African LDCs.


17. Duty Free Tariff Preference Scheme (DFTP) - Zambian Minister for Commerce, Trade and Industry signed the Letter of Intent to utilize India’s Duty Free Tariff Preference Scheme (DFTP) in May 2010. With the signing of this Letter and on completion of documentation, Zambian products will be able to access up to 94 % of the Indian market under this Scheme.

 
 
 
 
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