INVESTMENT STRATEGY Our approach toward investment commitments is geared toward maximizing investment returns for our stake holders. Managing and balancing risk is a cornerstone of any investment decision. We employ  objective and diligent stress tests in identifying gaps and inconsistencies. We combine our human resource talent with the most advanced research methodology tools in the global playing field. In addition to our in-house resources, we also have a network of specialized partners in the market segment. We like to think of our strategy as a bottoms up approach leaving no stones unturned.The investment outlook in Zambia is robust and thriving. The return on investment is extremely competitive with good planning and execution. AGRICULTURE The agriculture sector in under utilized and not fully capitalized with only 15% of the 60 million hectors of arable land under cultivation. AFG has identified this area as the biggest underutilized sector with windfall potential.  We are targeting export commodity oriented farming commodities.

BANKING INDUSTRY AFG country bank analysis found the banking industry in Zambia fairly liberalized, transparent and the flow of capital is transparent with no constraints or restrictions. Foreign capital is available on the open market and operates on a floating mechanism. The principal monetary institution is the central bank called the Bank of Zambia, the bank overseas & implements overall fiscal monetary policy and monitors commercial banking activity. AFG identified several commercial banking institutions, a mixture of foreign and locally owned. AFG was able to identify an increasing number of non-traditional lending institutions mainly involved in micro-lending operations, savings banking, development banking and currency exchange provisions. The bank of Zambia regulates all these entities through the Banking and Financial Services Act of 2000. The market also recently saw the entry of Capital trading markets in the form of the Lusaka Stock Exchange (LUSE), the stock exchange has been relatively progressing well and has seen an increasing number of listed companies Liberalization and opening of the banking sector has naturally fostered competition in the industry as the lending institutions vie for the same customer base, this has manifested in reduced borrowing interest rates, while the rates are still comparably high from a regional standpoint, the rates have been declining which is a good indication of confidence and optimism in the market as a whole. Current borrowing interest rates range between 20 - 30 % which is still on the high end especially when compared or pegged against inflation rates which register between 8 - 9 %. The gap between inflation rates and bank borrowing rates is obviously still too wide and the gap needs to be bridged to materialize meaningful economic growth within the middle 70% population group, an ideal or target rate differential generally should be about 5%. This baseline differential provides for  a capacity of borrowers to achieve reasonable savings while paying back interest and principal payments on their loans

TOURISM SECTOR Our assessment of the tourism sector indicated that while the tourism industry is on the rise, there is a lot more unexplored potential still at hand. While commendable developments have taken place in southern province, AFG has identified various other untapped gems within this sector. MANUFACTURING Despite making some positive strides over the past few years, AFG identified this sector as underutilized. The sector has registered a positive growth for five consecutive years. In 2008, the growth rate was 3.6% compared to 3% in 2007. Zambia is well positioned to become a regional entity in Southern  and possibly Eastern Africa. The manufacturing industry compliments well with mining industry which is a capital intensive area relying on tertiary supply components.   AFG views this as an area of opportunity. The Copper Belt in particular is poised for resurgence as a manufacturing regional base, this development is inevitably contingent of mining activities in the region. Recent measures by the government to establish commercial trading zones are a testament to the potential, other initiatives such as the Multi-Facility Economic Zones (MFEZ), Duty Drawback Schemes (DDS) and so forth have been implemented. MINING The predominant economic activity and mainstay of the Zambian economy is mining. Zambia is Africa’s largest producer of copper it is mineral rich and fortunate to be endowed with large mineral reserves, the industry alone accounts for over 70% of Zambia’s exports. Other prominent economic sectors are Agriculture, Manufacturing and Tourism. The Zambian economy over the last several years has sustained robust growth and resilience, the economy has experienced growth rates in excess of 6% and single digit inflation rates for the first time in many years have been attained. The country has also experienced massive direct foreign investment particularly in the Copperbelt mining district and the North Western province where new copper and uranium reserves are in progress to be mined under what will be Africa‘s largest copper mine under Lumwana Project.

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Tourism Views

Economy perspective

Financial perspective & outlook

Construction industry views

AKAPELWA FINANCIAL GROUP