Lusaka Economic Zone garners $1.4 billion investments in 3 years, laments cost of doing business

A total investment worth US$1.4 billion has been recorded at the Lusaka South Multi-Facility Economic Zone (LS-MFEZ) from 2019 to date, driven by increase in investors in the area.

Kennedy Mwila, LS-MFEZ Managing Director, made this announcement in his presentation on Friday during a zone’s visit by the Cabinet and made available to the media on Monday.

Mwila stated that the total investment indicated an increase of 311.7 percent over three years from 2019 to date.

During the presentation, Mwila highlighted that 102 investors were on their list, with 21.6 percent operational, 33.3 percent at construction stage, and 45.1 percent new investors yet to commence construction.

“We have seen a sharp increase in investment value of about 311.7 percent in three years. Similar rise in employment numbers from 3, 100 in 2019 to 33, 280 in 2023, 206 percent increase in number of investors in the same period,” he said.

On financials, he reported “305.3 percent revenue increase since 2019. 275.4 percent increase in profitability. Declared dividends for both 2021 and 2022.”

He also took the opportunity to highlight some of the challenges being faced by the economic zone.

Mwila highlighted property rates to be among the challenges faced by the zone, indicating that over K3.0 million had been paid since 2022, making the cost of doing business at the Zone high.

Developer incentives were also highlighted as part of the challenges by the Managing Director.

He stated that over K7.0 million had been paid in taxes over two years limiting capacity to invest in infrastructure.

He, however, mentioned that this was no longer a challenge after 2024 national budget presentation.

Another challenge was insufficient water which Mwila stated saw a rise in “demand of 7, 000 cubic meters of water against capacity 5, 400 cubic, stopping some investors from producing optimally.”

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