1. INDUSTRIALIZATION PROCESS IN ZAMBIA Presentation made by Mukula Makasa ZAMBIA DEVELOPMENT AGENCY June 30, 2015 Africa Growth Forum, Addis Ababa, Ethiopia

2. OVERVIEW MAJOR CONSTRAINTS OF PRODUCTIVITY GROWTH IN FARMS AND FIRMS IN ZAMBIA MAJOR DRIVERS OF PRODUCTIVITY GROWTH IN FARMS AND FIRMS IN ZAMBIA POLICY OPTIONS FOR GOVERNMENT TO ENHANCE PRODUCTIVITY IN FARMS AND FIRMS

3. MAJOR CONSTRAINTS OF PRODUCTIVITY GROWTH IN FARMS AND FIRMS IN ZAMBIA Limited economic infrastructure Absence of long-term affordable business finance Skills gap Weak farm extension and BDS systems Unpredictable source and cost of inputs Volatile exchange rate affecting Trade Transport costs affects cost of production Weak business linkages within Trade Ecosystem

4. MAJOR DRIVERS OF PRODUCTIVITY GROWTH IN FARMS AND FIRMS Growth in Infrastructure Sector: Building, Energy, ICT and Transport Growth in Agriculture, Mining, Tourism and Financial Sectors Growing middle class with sizeable buying power Youthful population driving innovation Big Extractive Industry Supply Chain worth US$2-3b/Year Regional Trade through Economic Integration Strong Economic Growth in Sub Region

5. POLICY OPTIONS FOR GOVERNMENT TO ENHANCE PRODUCTIVITY IN FARMS AND FIRMS Invest in Skills Development Scale up expansion of Economic Infrastructure Intensify Regional Economic Integration to optimize regional trade Implement Local Content Framework to enhance Business Linkages Establish TIDF to mitigate affordable long-term business finance Establish sovereign wealth fund to support industrialization Incentivize strategic industrial interventions Harmonize industrial policy development and implementation

6. THE END AMASEGNALU ASANTE SANA MERCI GRACIAS THANK YOU