ABOUT 200 jobs will be created at the newly opened US$10 million mobile phone manufacturing plant in Lusaka, President Rupiah Banda has said.

Mr Banda also said the Government was planning to reduce the international gateway fees to bring them down to the regional average as a way of promoting the communication sector.

He said when he officially opened the plant in Lusaka yesterday that M Mobile Telecommunications, which is wholly Zambian, would employ technical staff that include engineers and technicians

Mr Banda said he was happy that the investment came at the time when the global financial crisis had exerted massive pressure on most economies around the world.

He said he was pleased to note that the investment situated along Lumumba Road was aimed at benefiting the people in the country through employment creation, technology transfer and human resource development.

"This is what Zambians should be doing to attract foreign investors. Zambians should themselves lead the way by investing in their country," he said.

The president said keeping Zambia competitive started with making the economy grow and that the economy could only grow when more Zambians invested in business.

He said just as the Government expected the citizens to work hard to drive the economy forward, it was also expected to create a conducive and competitive environment for the private sector to thrive.

Mr Banda said that was why the Government in this year's Budget was working towards reducing the international gateway licensing fees to the regional average.

Mr Banda said the move would be done in an effort to reduce the cost of doing business in the communication sector.

He said the Government was cognisant of the fact that delivering on 'soft aspects' of reducing the cost of communication in Zambia was not enough and it would continue to facilitate the 'hard aspects' such as the actual production of mobile phones.

He said he had no doubt that the booming demand for domestically manufactured mobile phones would be strong given that the phones should be competitive.

Mr Banda said the competitiveness of the locally manufactured mobile phones would not only have a ready domestic market but also regional markets and earn Zambia the much-needed foreign exchange.

Communications and Transport Minister, Dora Siliya said the investment by M Mobile Telecommunication was a sign that Mr Banda was committed to making the private sector grow in Zambia.

Ms Siliya also commended Commerce, Trade and Industry Minister, Felix Mutati for attracting several investments in Zambia during various tours around the globe.

Japanese Ambassador to Zambia, Hideto Mitamura said the investment launched yesterday was as a result of the 'Triangle of Hope' initiative, which promoted economic development.

Mr Mitamura said the company was a showcase for other African countries and urged them to emulate the steps the Zambian Government was taking.

He said the Japanese government partnered with the Zambian Government on the project because of the good cooperation between the two countries.

M Mobile Telecommunication Zambia group Chairman Mohamed Seedat said the company was Zambian registered and met the international standards.

Mr Seedat said the plans to set up the company started in 2006 when the Zambian delegation including him were invited to Malaysia.

He said the plant was set up in Zambia because the market was readily available and that the Government was supportive of the idea.

The plant would be assembling phones ranging from ultra low cost to the state of the art Wi-Fi connectivity phones with television.