© 2009. Synovate Ltd. All rights reserved. The concepts and ideas submitted to you herein are the...

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The concepts and ideas submitted to you herein are the intellectual property of Synovate Ltd. They are strictly of confidential nature and are submitted to you under the understanding that they are to be considered by you in the strictest of confidence and that no use shall be made of the said concepts and ideas, including communication to any third party without Synovate’s express prior consent and/or payment of related professional services fees in full.

Steadman now Synovate

Zambia Business Leaders Confidence Index

Survey Conducted:

1st – 30th November 2009

Presentation Date:

10th December 2009, Golfview Hotel, Lusaka

2INSERT FILE PATH© Synovate 2009 Steadman now Synovate

Introduction

The Business Leaders Confidence Index collects information on business leaders’ perceptions towards the economy in general and their sectors specifically across selected African countries.

Research Methodology

Target group

•100 MDs, Directors, CEOs drawn from cross section of sectors in Zambia

•Self – completion Questionnaire Data collection dates 1st - 30th November 2009

•The study is also carried out in Kenya, Uganda, Tanzania, Ghana and Nigeria

Data Collection

Africa Coverage

Sample Structure

Sector Respondents (November)

1 Agriculture 11

2 Automotive 9

3 construction 9

4 Financial Services 13

5 Hotel & Tourism 10

6 ICT/Media/Telecommunication 10

7 Manufacturing 13

8 Services 15

9 Others (Energy& Mini 10

TOTAL 100

Computing BLCI

BLCI is a composite index calculated from 3 key indicators;

•Current economic conditions vs. 6 months ago

•Economic expectations 6 months ahead

•Own industry expectations 6 months ahead

The percentage of Respondents in each Sector

Base = 100 respondents Base = 80 respondents

Zambia’s Economic Conditions

Current Economic Conditions

Base = 100 respondents

44% of the respondents rated the economic conditions in Zambia to be moderately & Substantially better than they were 6 months ago compared

to 29% in last survey. However

25% still think the economy will remain the same.

How would you rate the economic condition in Zambia today as compared to 6months ago?

Future Outlook

53% of the Business Leaders, foresee Zambia’s economy improving in the next 6 months,

Compared to 49% in the last survey.

However 27% still think it will remain the same.

How do you expect Zambia’s economy to perform in the next 6 months?

Economic Conditions of Zambian Sectors

Current Economic conditions in Zambia (Sector)

62% of the Business Leaders are of the view that their industry performance is better . This is a significant increase from the same

view held in July: 32%.

How would you rate the current overall performance of your industry or sector as compared to 6months ago?

Future Outlook for all sectors

62% of the Business Leaders are optimistic that the performance of their own industry will be better in the next 6months. Last survey

only 32% held this view .

How do you expect your industry to perform in the next 6months?

Business Leaders Confidence Index – Zambia

Construction sector; which registered the highest index points

stands at 11.45 points higher than the overall index while Automotive sector, which registered the lowest index points stands at

14.48 points below the overall confidence index.

Zambia BLCI Index – Trend BLCI Zambia Trend

Zambia’s Business Confidence

Index has gained more than 10 points in the past 3months (last Survey conducted in July). It is however below level registered in July-07.

Global Economic Crisis - Mitigation Strategies

•Cost cutting remains the preferred strategy at

81% (last survey 71%).

• Expansion into new

LOCAL markets 55% (last survey 49%)

• Launching of new products and services

45% (last survey 50%).

As a result of the global economic turmoil, which of the following, if at all, have you done to mitigate this turmoil’s impact on your Company performance?

July November

Attractiveness as an Investment Destination for Foreign Investors

Attracting Foreign Direct Investors (FDIs)

How attractive is Zambia today as an investor destination to foreign investors?

July November

Business Leaders maintain their high level of confidence, that Zambia is an attractive destination for foreign investors

Factors that determine Foreign Investment in Zambia

Factors attracting foreign direct investment in Zambia

Top of the list in terms importance of determining FDI in Zambia is domestic economic situation, at

35% followed by economic policy and tax investment incentives. The domestic economic situation include currency stability, inflation, prices etc.

Impact of Politics on Zambia’s Business Environment

Politics – Impact on Business Environment

Base = 100respondents

Looking at the political landscape in Zambia at the moment, to what extent do you think its conducive for doing business?

Political climate remains moderately conducive for doing business.

The Citizen Economic Empowerment Fund

The Impact of the Citizen Economic Empowerment Fund

61% - Impact of Economic Empowerment Fund is viewed as beneficial to Zambia’s overall business environment.

The concepts and ideas submitted to you herein are the intellectual property of Synovate Ltd. They are strictly of confidential nature and are submitted to you under the understanding that they are to be considered by you in the strictest of confidence and that no use shall be made of the said concepts and ideas, including communication to any third party without Synovate’s express prior consent and/or payment of related professional services fees in full.

Steadman now Synovate

Thank You

Our Curiosity Is All Yours.

© 2009. Synovate Ltd. All rights reserved. The concepts and ideas submitted to you herein are the...

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