Zambian Vice President Lupando Mwape Wednesday called on Chinese companies in the country to consider setting up processing plants so as to add value to the country's abundant raw materials.

Officially launching the Association of Chinese Corporation in Zambia (ACCZ), the vice president said Zambia has got vast natural resources which can be transformed into serious economic ventures.

"This potential lies in the mining, agriculture and tourism to name but a few. Government's desire is to see the establishment of processing plants which will add value to the raw materials," said Mwape.

He also urged Chinese companies to increase their investment in Zambia and also to expand to other areas of the country outside the line of rail.

China and Zambia have seen booming economic cooperation in recent years within various fields such as mining, agriculture, telecommunication, construction and services. So far, more than 160 Chinese companies have invested in Zambia with a total investment up to 316 million US dollars, making China the third largest foreign investor in the southern African country. In 2005 alone, 12 Chinese-funded projects have been launched in Zambia, of which investment stands at 41.4 million dollars.

"The establishment and operation of ACCZ is an evidence that Chinese investment in Zambia has reached a higher level and mounted up to a new stage," said Zhao Zhanbin, Charge d'Affaires of the Chinese Embassy.

Zhao said the formation of the association will enhance communications between the Chinese companies and the local society and promote the interactivity among Chinese enterprises as well.

Source: Xinhua