The Launch of The Sikute Free Zone
Author: Kopano G. Chipwayambokoma, Pangaea Securities Senior Analyst
On December 14th 2024, His Excellence President Hakainde Hichilema officially launched the Sikute Free Zone, the first phase of the Zambezi Free Zone (“ZFZ” or the “Free Zone”). The launch was hosted by His Royal Highness (“HRH”) Emmanuel Sikute.
The Sikute Free Zone spans 15,000 hectares and will create thousands of jobs upon full development, marking a significant milestone in Zambia’s economic transformation. President Hichilema emphasised the project’s strategic importance: “This project is phenomenal and strategic for our economy. Through public-private partnerships, we aim to create value that benefits Zambians by fostering job creation across the country”.
Figure 1: Source-Zambia News and Information Services
The Zambezi Free Zone: A Visionary Project to Transform Zambia’s Economy
The ZFZ is a groundbreaking initiative poised to reshape Zambia’s investment landscape. It encompasses 30,000 hectares and comprises the Sikute and Mukuni Free Zones. HRH Chief Sikute and HRH Chief Mukuni, along with other prominent individuals, spearhead the project. The ZFZ will seamlessly integrate modern luxury structures while prioritising preserving and enhancing the region’s rich ecosystem.
Figure 2: Illustrative depiction of the sites and development
The Free Zone is strategically located at the crossroads of Zambia, Botswana, Namibia, and Zimbabwe. This offers unparalleled access to regional markets, positioning Zambia as a regional leader.
Figure 3: Source-Zambia News and Information Services
The ZFZ aspires to transform Zambia into a one-stop destination for regional trade, medicine, finance, and tourism. The project envisions world-class educational institutions, luxurious accommodations, thriving residential areas, state-of-the-art medical facilities, and corporate headquarters, all established within the designated Free Zone.
To further entice foreign investment, the Free Zone offers attractive tax benefits, including reduced corporate taxes and customs duty waivers, which streamline import-export processes and enhance profitability.
Individuals and businesses can invest in the ZFZ through various packages. A portion of the investments will be directed toward the Government of the Republic of Zambia, which supports economic and social development initiatives.
These packages cater to various investors, from retirees and employees to high-net-worth individuals and major corporations. This influx of foreign investment will strengthen the Zambian economy and enhance its currency through increased foreign exchange.
The launch of the Sikute Free Zone marks the beginning of a transformative chapter for Zambia. The Free Zone is a testament to the nation’s ability to innovate, integrate, and inspire economic growth on a regional scale. The ZFZ promises to unlock unparalleled opportunities for investment, employment, and prosperity through strategic partnerships, modern infrastructure, and a commitment to sustainability. As Zambia moves forward, the ZFZ is a beacon of progress, charting a path toward a brighter economic future.
Pangaea Securities Limited (“Pangaea”) is proud to be involved in this project. It serves as the financial advisor for Baleya Development Limited, the vehicle incorporated to facilitate the development of the Free Zone.
Figure 4 : Sikute Free Zone Cocktail
Following this momentous occasion, President Hichilema further engaged with the local community by officiating the Lwiindi Cuundu Traditional Ceremony of the Toka Leya people of Kazungula District in honour of HRH Chief Sikute on December 15th, 2024. 63 Zambian traditional leaders were present for the ceremony, which last took place in 2017. The Lwiindi Cuundu Traditional Ceremony is a significant cultural event for the Toka-Leya people. It is a powerful expression of the Toka-Leya people’s deep connection to their land, their ancestors, and the natural world.
