Name of project: Chirundu shopping complex
Location of the project: The site is 5km away from the Chirundu border, an area ideal for a clearing port.
Project description
The objective is to build a shopping complex with a fee paying parking lot for trucks and cars, and lodging facilities to cater for transporters who spend about one to four days clearing their goods at the border. Statistics show that the Zambia Revenue Authority clears an average of 400 trucks per day.
Available land: There is land reserved for this project along the main road valued at US$5 million, whose lease rights can be seeded to a guarantor as part of collateral.
Cost of investment: The estimated cost of the investment is US$ 10 million. A minimum income of US$760,000 per annum on car port and lodging facilities at 60% occupancy rate would be
realized. This does not include other value added services which may be integrated into the project.
Market analysis: The target market for this project will include road users and the local population in surrounding areas including Zimbabwe.
Availability of inputs: Inputs for this Greenfield investment can be sourced locally and internationally.
Expectations of promoters: Promoters seek equity investment of US$10 million. This investment will comprise 70% of the total equity. There is also room to negotiate with potential investors to obtain maximum benefit from management skills and technology. Detailed project plans are available, though the promoter is open to new ideas.
Licenses needed: Local Authority
For further information and available incentives contact the Zambia Development Agency.
Key contact:
Florence Mumba
Director: Investment Promotion and Privatisation
Zambia Development Agency
Email: fmumba@zda.org.zm
