DOING BUSINESS IN ZAMBIA
The country’s economy has historically been based on the Copper Mining Industry. However, the Zambian Government is undertaking economic diversification to reduce the country’s reliance on the Copper Industry and exploit other components of Zambia’s rich resource base by promoting Agriculture, Tourism, Gemstone Mining and Hydro Power generation.
Zambia’s macroeconomic objectives include accelerating the diversification of the economy, particularly towards tourism, energy, agriculture and agro- processing as well as creating employment opportunities through accelerated implementation of programmes such as the Industrialization and Job Creation Strategy and the Youth Empowerment Action Plan
Growth is projected to strengthen to above 4%in 2018 and over the medium-term. High international copper prices and improved domestic production from newer and recently refurbished mines is expected to support exports. High copper prices have eased external pressures, leading to a stable kwacha.
Strengths in Zambia favor include abundant natural resources and abundant , cheap manpower, political stability and one of the most liberalized economies that guarantees that foreign investments are safe and that there are no controls on foreign exchange earnings.
ZAMBIA’S INVESTMENT CLIMATE:
Zambia is a multi-party democracy and provides a free market liberalized economic environment in a stable strife-free and multicultural society. The Zambian Government welcomes investors across sectors and the laws relating to investment provide investment incentives and protection, in order to attract increased investment and international trade, as well as increased domestic economic growth.
WHY INVEST IN ZAMBIA?
The country’s land-linked and central location in the region, as well as a combination of the following key strengths, makes it an ideal investment location:
(a) Abundance of natural resources and manpower, which are highly under-utilized.
(b) Political Stability since attaining independence in 1964
(c) No Controls on: prices, interest rates, foreign exchange rates, free repatriation of debt repayments
(d) 100% repatriation of net profits
(e) Guarantees and security to investors with legislated rights to full and market value compensation
(f) Duty Free Access to Regional, wider African and the USA markets under SADC, COMESA/FTA and AGOA (African Growth and Opportunity Act) respectively
(g) Banking, financial, legal and insurance services of international standard as well as a Stock Exchange
(h) Double Taxation Agreements with a number of European, North American, African and Asian countries
(i) Good place to work and live – sub-tropical climate and vegetation with plenty of water. Friendly people, mostly English speaking, with high literacy rate. Educational establishments to University level. Strong religious values. Open-air lifestyle with nature reserves, game parks, rivers, lakes and waterfalls.
Thriving Private Sector: Government has successfully privatized most of the previously state owned enterprises, thus encouraging an entrepreneurial culture.
INCENTIVES FOR INVESTORS:
Investors who invest not less than US$500,000 are entitled to the following fiscal incentives:
Manufacturing incentives only apply to activities located in a Multi-facility Economic Zone, an Industrial Park or a Rural area
Incentives that apply:
(i) Accelerated depreciation on capital equipment and machinery (fixed assets)
(ii)Zero percent import duty rate on capital equipment and machinery for five years.
2.2 PRIORITY SECTORS
Investors who invest not less than US$500,000 in a priority sector are entitled to the following fiscal incentive:
(i) Zero percent import duty rate on capital equipment and machinery for five years.
Investors who invest an amount not less than US$250,000 in any sector or product under the Act is entitled to non-fiscal incentives as follows;
(i)Investment guarantees and protection against state nationalization;
(ii)Free facilitation for application of immigration permits, secondary licenses, land
acquisition and utilities.
USEFUL DOCUMENTS AND RELEVANT LINKS:
KEY CONTACT DETAILS
The Government of the Republic of Zambia has streamlined the various processes that investors would have to undergo upon setting up a business in Zambia. The Zambia Development Agency (ZDA) was established in 2006 under Act No. 11 of 2006. The ZDA is responsible for fostering economic growth and development in Zambia through promoting trade and investment and an efficient, effective and coordinated private sector led economic development strategy. The agency also has the challenge to develop an internationally competitive Zambian economy through innovations that promote high skills, productive investment and increased trade. The ZDA principally furthers the economic development by promoting efficiency, investment and competitiveness in businesses, as well as promoting exports. It also addresses the high cost of doing business in the country by simplifying the processing of various business formalities, such as licensing. ZDA is a one stop shop for all investors and this is evidence that Zambia is open for all to do business.
Zambia Development Agency
Privatisation House, Nasser Road,
P.O. Box 30819
Tel: +260 211 220177 / 223859
Fax: +260 211 225270 / 222509
Patents and Companies Registration Office
Zambia Chamber of Commerce and Industry(ZACCI)
P.O. Box 30844
Useful Downloadale Links: http://www.pacra.org.zm
Trade and Investment Inquiries:
Embassy of the Republic of Zambia
260, Dreve Richelle