INVEST IN

ZAMBIA
INVEST IN THE HEART OF AFRICA
 PREFACE
This guide was developed by Zambia Development Agency(ZDA) with the support of
COMESA Regional Investment Agency (RIA). The investor guide contains an overview of
doing business in Republic of Zambia. It aims to help both current and potential investors
with facts on investing in the country. The guide contains information on the investment
climate, taxation regime (income tax, value added tax, double taxation agreements and
other significant taxation issues), investment incentives, exchange control regimes, sector
overviews and other information pertinent to investing in Republic of Zambia.

4 Investor’s Guide to Zambia

INVESTOR’S GUIDE TO ZAMBIA
In the preparation of this guide, every effort has been made to offer current, correct and
clearly expressed information. However, the information in the text is intended as a general
guideline only. This publication is shared with the understanding that COMESA RIA is not
responsible for the result of any actions taken on the basis of information in this publication,
nor for any errors or omissions contained herein.

Investor’s Guide to Zambia 5

 ARE YOU SEARCHING FOR A DYNAMIC MARKET TO
INVEST IN?
LOOK NO FURTHER…….

If you are looking for a safe and robust investment, there are plenty
of good reasons why Zambia should be your preferred destination.

Apart from its radiant beauty and friendly people, Zambia has
abundant and lucrative investment opportunities in all sectors of
the economy. Since independence, the country has been steadfast
in strengthening its political, economic, and social frameworks,
which have contributed to establishing the country as a preferred
investment destination in Africa.

With a stable political foundation characterized by governance

through democratically elected representatives of the people, the
country has become a beacon of peace, stability, and rule of law
on the continent. Strong political will and Government’s efforts
to facilitate the realization of the dreams of its citizens through
appropriate policies has remained the cornerstone of private sector
development.

We are cognisant of the need to sustain macro-economic stability if we

are to achieve sustainable economic and social development for our
people. Through the development of a robust monetary regulatory
framework, the banking system has become as sophisticated as any
world-class system in the world, offering numerous packages and
financial instruments tailor made to the needs of investors.

Sitting at the heart of Africa, Zambia offers access to vast markets

within and beyond its borders through various bilateral and multilateral
agreements as well as its membership of regional economic blocs
such as the Tripartite Free Trade Area, (TFTA) Southern African
Development Community (SADC), the Common Market for Eastern
and Southern Africa (COMESA), and the African Continental Free
Trade Area (AfCFTA).

The national development agenda is premised on meeting the needs

of the current generation without compromising the ability of future
generations to meet their needs. In that regard, Zambia takes its
commitment to the sustainable management of natural resources
very seriously, as shown in national documents such as the National
Environmental Policy, National Biodiversity Strategy, and National
Policy on Climate Change.

In the recent past, doing business in Zambia has been made easier
as a result of various reforms aimed at streamlining regulation and
business registration procedures. Consequently, the country’s ease
of doing business ranking has been steadily improving compared to
most of its peers in Africa.

Look no further. We are open for business.

6 Investor’s Guide to Zambia

 CONTENTS
1 AT A GLANCE 9
2 A COUNTRY OVERFLOWING WITH OPPORTUNITIES FOR BUSINESS 13
3 ECONOMIC GROWTH AND STABILITY - CATALYSTS FOR INVESTMENT AND DEVELOPMENT 17
3.1. Investment Profile 19
3.2 Main FDI Investors 19
3.3 Main FDI Sectors 19
4 INVESTMENT OPPORTUNITIES IN PRIORITY SECTORS 22
4.1 Mining 22
4.2 Agriculture 23
4.3 Manufacturing 24
4.4 Tourism 26
4.5 Energy 27
5 ADDITIONAL INFORMATION 31
5.1 Investment Incentives 32
5.2 Attractive Tax Environment 32
5.3 Banking and Finance 32
5.4 Licences/Permits 34
5.5 Leisure and Entertainment 34
6 APPENDIX 37
6.1 Appendix 1 – Steps when Starting a Business 38
6.2 Appendix 2: Application for a ZDA Certificate 39
6.3 Appendix 3: Procedure for MFEZ Licence, Industrial Cluster or Rural Area Permit 40
6.4 Appendix 4 – Useful Contacts 41

Investor’s Guide to Zambia 7

8 Investor’s Guide to Zambia
01
AT A GLANCE

Investor’s Guide to Zambia 9

 1. AT A GLANCE
Zambia is a vibrant middle-income country at the heart of Africa, and one that is rich in history and natural resources. It
is one of the friendliest places in the world for adventure or for living in and working from. Its rich cultural and religious
diversity has made it a home for people of different ethnic backgrounds and lifestyles. The tranquil environment and the
existence of quality social, education, and health services has made Zambia a preferred home-away-from-home.

Location South-Central Africa with 8 neighbouring countries.

Capital City Lusaka, a growing cosmopolitan city and seat of

COMESA.

Climate Sub-tropical climate with 3 seasons - rain, winter, and

summer.

Population Fast-growing population - 18.82 million people.

Government A republic with multi-party democracy and parliamentary

system of representation.

Languages English (official), with native languages such as Nyanja,

Bemba, and 71 others.

Religion Christianity is the largest religion. Others include Islam,

Hinduism, Sikhism, Judaism, and Baha’i Faith.

Time Zone Greenwich Mean Time (GMT) +2 hours.

Currency Zambian Kwacha (ZMW)

10 Investor’s Guide to Zambia

 11

Investor’s Guide to Zambia 11

12 Investor’s Guide to Zambia
02
A COUNTRY OVERFLOWING
WITH OPPORTUNITIES FOR
BUSINESS

13

Investor’s Guide to Zambia 13

 2. A COUNTRY OVERFLOWING WITH OPPORTUNITIES FOR BUSINESS

Beyond its rich natural heritage and scenic beauty, Zambia offers lucrative and safe investment opportunities through a
unique blend of market access, abundant and affordable factors of production, competitive investment incentives, and
ease of doing business, to mention a few.

Private sector reforms aimed at streamlining business registration and regulation have made doing business in Zambia
easier, as shown by Zambia’s notable improvement in the World Bank’s Ease of Doing Business Rankings since 2015.
Coupled with other initiatives being implemented by Government, these reforms have created a dynamic business regu-
latory framework that is responsive to the needs and expectations of investors.

Zambia offers preferential access to vast international markets within and beyond the continent. It is bordered by eight
countries and is a member of the 16-member SADC regional trade bloc and the 19-member COMESA bloc, with popu-
lations of 364 million in 2022 and 560 in 2022 respectively. Trade and investment has been enhanced by bilateral and
multilateral agreements such as the Tripartite Free Trade Area (TFTA), the African Growth and Opportunity Act (AGOA),
and the Everything But Arms (EBA) Initiative, which have enhanced duty and quota-free market access to the region as
well as America and Europe.

Other notable factors include:

• No controls on prices, interest rates, and foreign exchange rates;
• Free repatriation of debt repayments;
• 100% repatriation of net profits;
• Guarantees and security for investors;
• Availability of world-class banking, financial, legal, and insurance services;
• Access to a wide range of investment incentives;
• Expansive road, rail, and air transport infrastructure connecting the country to ports all over the world;
• Double Taxation Agreements with 23 countries; and
• No restrictions on entry to and exit from any commercial sector of the economy

1st in Africa for 7th in Africa for 10th in Africa and 69 in the
th

Ease of getting credit Ease of doing business. world for Peace and security.
Zambia is placed 1st in Africa Zambia is ranked 7th in Africa Zambia is ranked 69th out of 163
and 3rd in the world out of 190 and 85th in the world out of 190 countries in the Safety and Secu-
countries in the World Bank’s Ease countries in the World Bank’s Ease rity Global Peace Index.
of Doing Business rankings. of Doing Business rankings.

14 Investor’s Guide to Zambia

 15

Investor’s Guide to Zambia 15

16 Investor’s Guide to Zambia
03
ECONOMIC GROWTH AND
STABILITY - CATALYSTS
FOR INVESTMENT AND
DEVELOPMENT

17

Investor’s Guide to Zambia 17

 3. ECONOMIC GROWTH AND STABILITY - CATALYSTS FOR INVESTMENT AND
DEVELOPMENT
Zambia has a well-developed market economy. Its strong rates. Price stability also contributed to the enhanced
economic performance over the years is testimony to the competitiveness of exports. The Central Bank has
nation’s open, outward-oriented development strategy. maintained inflation in single digits, with the exception
Like most global economies, Zambia’s was not immune of 2016 when the country faced energy and agriculture
from the negative effects of the COVID -19 global shocks due to drought.
pandemic and other external shocks such as volatile
commodity prices emanting from disruptions in global The Country has continued to enjoy increasing investment
supply chains. However, GDP rebounded to positive that has continued to be above the Sub-Saharan average.
figures yielding 3.6% growth in 2021. Having said that, Zambia’s prospects for continued growth
and stability are bright and will be realised through the
Notwithstanding volatile global markets, the economy continued implementation of reforms and policies aimed
registered stable macroeconomic indicators in areas at private sector development.
such as inflation, currency exchange rates, and interest

GDP Growth (%)

7.6
8 5.6
6 5.1 4.7
3.8 3.5 4 3.6
4 2.9
4.1
2
0
-2 -2.8
-4
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Zambia SSA
Source: World Bank, 2022

PER CAPITA INCOME (CURRENT US$)

2000
1500
1000
500
0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Zambia SSA
Source: World Bank, 2022

FDI as a percentage of GDP

FDI as a % of GDP

9
6.8 Zambia
4.5 SSA

2.3
0
2009 2011 2013 2015 2017 2019

Source: World Bank, 2021

18 Investor’s Guide to Zambia

3.1. Investment Profile

FDI Inflows (millions of USD)

Year 2016 2017 2018 2019 2020
FDI Inflows 662.9 1,107.5 408.4 548.0 234.0
Source: United Nations Conference on Trade and Development, World Investment Report 2021 & Zambia Development Agency (ZDA).

FDI Outflows (millions of USD)

Year 2016 2017 2018 2019 2020
FDI Outflows 176.7 (72.0) 32.2 696.2 133.4
Source: United Nations Conference on Trade and Development, World Investment Report 2021

FDI Inward Stock (millions of USD)

Year 2016 2017 2018 2019 2020
FDI Inward Stock 18,855.1 19,866.5 20,435.4 19,134.3 19,368.3
Source: United Nations Conference on Trade and Development, World Investment Report 2021 & Zambia Development Agency (ZDA).

FDI Outward Stock (millions of USD)

Year 2016 2017 2018 2019 2020
FDI Outward Stock 1,625.0 1,553.0 1,585.2 2,169.9 2,303.3
Source: United Nations Conference on Trade and Development, World Investment Report 2021 & Zambia Development Agency (ZDA).

3.2. Main FDI Investors

USA UAE Norway India PR China

USD 48.16 million USD 13.84 million USD 11.36 million USD 11.21 USD 8.32 million
Source: Bank of Zambia, 2022

3.3. Main FDI Sectors

Mining and Quarrying Manufacturing Wholesale and Retail Trade

USD 8,513.5 million USD 2,824.41 million USD 959.22 million
Agriculture, forestry and fishing Deposit taking corporations Real estate activities
USD 879.26 million USD 735.8 million USD 622.5 million
Source: Bank of Zambia, 2022

19

Investor’s Guide to Zambia 19

20 Investor’s Guide to Zambia
04
INVESTMENT
OPPORTUNITIES IN
PRIORITY SECTORS

21

Investor’s Guide to Zambia 21

 4.INVESTMENT OPPORTUNITIES IN PRIORITY SECTORS
No matter which sector you want to invest in, you are guaranteed to win when you invest in Zambia.

4.1. Mining

Zambia is the world’s eighth largest producer of copper. It produced 797 metric tonnes in 2019 and holds six percent
of the world’s known copper reserves. Copper and cobalt, the country›s traditional exports, account for well over 70
percent of export earnings. Zambia’s copper mines are concentrated in the Copperbelt Province, although over the
past decade, mines have been established in other parts of the country such as the North-Western Province. Other
mineral endowments include gold, zinc, lead, iron ore, manganese, nickel, feldspar, sands, talc, barite, apatite, limestone,
dolomite, uranium, coal, and gemstones (e.g. diamonds, emeralds, aquamarine, topaz, opal, agate and amethysts).
Notably, Zambia produces over 20 percent of the world’s emeralds and has the capacity to increase its production. This
extensive range of mineral resources, including a variety of industrial minerals and energy resources such as uranium, coal
and hydrocarbons, presents investors with excellent opportunities, especially in the area of extraction and processing.
Zambia’s endowment of mineral resources is substantial, although the full potential of known deposits is yet to be
realized. A 2013 World Bank geological analysis suggested that Zambia’s copper deposits were larger than previously
estimated, signalling massive exploration potential. This potential is starting to be realized through recent exploration
for oil and gas. Since the privatization of the mines ended in 2000, approximately $17.50 billion has been invested in the
sector by about 278 enterprises.

Large-scale copper mining accounts for more than 90 percent of these investments. In 2019, mining accounted for 9.9
percent of GDP, 26.7 percent of Government revenue, 2.4 percent of direct employment and 77 percent of exports.
Even with so much investment in the sector, existing mines have only scratched the surface of the mineral wealth that lies
underneath the ground.

Government policy is tailored to the promotion of value addition to minerals such as copper through the introduction
of incentives such as a preferential corporate tax rate of 15 percent for companies that add value to copper cathodes,
compared to the standard 35 percent for other non-incentivized firms.

Copper Production
Please align all graph

900000
to the middle

450000
0
2014 2015 2016 2017 2018 2019 2020
Raw Copper Copper Cables

Source: World Mining Data, Reuters 2022

The illustration above indicates that a tremendous opportunity exists for investment in value addition to mining products
such as copper. As shown, Zambia’s production of raw copper (average of 790,000 metric tonnes per annum) far surpasses
its production of value added copper wires/cables (about 25,000 metric tonnes per annum).

22 Investor’s Guide to Zambia

4.2. Agriculture
Zambia is endowed with a vast arable land resource base of 42 million hectares of which only 1.5 million hectares is
cultivated every year. It has abundant water resources for irrigation, which account for 40 percent of the water resources in
the SADC region. Given this vast resource endowment, Zambia has huge potential to expand its agricultural production.
Its climate follows a similar pattern to that of most Southern African countries, experiencing rainy seasons between
the months of November and April. The dry season is characterized by low humidity between the months of May and
November. The average temperature in the summer is 30°C and gets as low as 5°C in the winter , which suitable for both
traditional and winter crops.

Despite the availability of vast arable land, transport infrastructure, large water resources and cheap labour - the
agricultural sector employs more than half of the total labour force - only 10 percent of arable land is under cultivation. In
that regard, the Government has established farming blocks to facilitate investment in agriculture.

Zambia’s traditional crops include maize, cassava, wheat, sorghum, rice, sunflowers, groundnuts, soya beans, mixed
beans, Irish potatoes, sweet potatoes, and tobacco. A lucrative cashew nut sub sector in has also been built in the
western part of the country. Agriculture plays an important role in Zambia’s economy, contributing about 13 percent to
the country’s GDP. The Government is currently driving the enhancement of value addition by promoting agro-processing
through programmes such as the Zambia Agri-business and Trade Project (ZATP).

Agro-processing opportunities in Zambia are in peanut butter production, cashew nut processing, animal or stock feed
production, cassava processing, grain milling, edible oil production, fruit canning, juice extraction, meat, dairy and leather
production, fish canning, textiles, bio-diesel production, and honey processing, to mention a few.

Net Exports of Agricultural Products

500
Net exports (US$ millions)

375
250
125
0
-125
-250
-375
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Net Exports
Source: UNCTADSTATS and IAPRI, 2022

The above graph indicates that Zambia maintained its status as a net exporter of agricultural products for almost a
decade. As shown by the decline in exports in 2013 and 2017 - 2020 due to drought and the COVID-19 Pandemic, an
opportunity for investment in the production of modern agricultural technologies such as irrigation systems, as well as
research and development in drought-resistant crop breeds exists.

23

Investor’s Guide to Zambia 23

 4.3. Manufacturing
Zambia has a well-developed market economy. Its strong economic performance over the years is testimony to the na-
tion’s open, outward-oriented development strategy. Like most global economies, Zambia’s was not immune from the
negative effects of the COVID -19 global pandemic and other external shocks such as volatile commodity prices emant-
ing from disruptions in global supply chains. However, GDP rebounded to positive figures yielding 3.6% growth in 2021.

Currently, the main manufacturing activities in Zambia are in the following industries: 1) food and beverages; 2) textile
and leather industries; 3) wood and wood products; 4) paper and paper products 5) chemicals, rubber and plastic prod-
ucts 6) non-metallic mineral products; 7) basic metal products; and 8) fabricated metal products.

The top destinations for Zambian exports are China ($2.14bn), India ($719m), South Africa ($486m), United Arab Emirates
($392m), and Belgium-Luxemburg ($297m). Other significant markets outside Africa include Netherlands and Switzerland
as well as Europe and North America through the EBA Initiative and AGOA respectively. Investment in the export sec-
tor attracts both fiscal and non-fiscal incentives. Incentives designed to aid manufacturing enterprises in non-traditional
sectors are being provided through initiatives such as the development of Multi-Facility Economic Zones (MFEZ) and
industrial parks.
These zones are provided with modern infrastructure in order to attract and facilitate the establishment of world-class
enterprises in the country. The MFEZs blend the best features of the free trade zones, export processing zones, and
the industrial parks/zones concept. They apply the administrative infrastructure, rules and regulations that are used as a
benchmark among dynamic economies. The blending of physical infrastructure with an efficient and effective administra-
tive infrastructure has created the ideal investment environment for attracting major world-class investors.

The MFEZ incentives, which are highlighted below, are non-discriminatory and apply fairly to all eligible investors from
either Zambia or abroad.

The Government has to date declared seven (7) areas as MFEZs and /or Industrial Parks namely: Chambishi, Jiangxi
MFEZ, Lusaka East, Lusaka South, Lumwana; and Ndola (Sub Saharan gemstones exchange) and Roma as Industrial Parks.
Source: World Bank, 2021

Manufactures as a percentage of
merchandise trade
77
80
% of merchandise trade

69 68 67 69
63 65 65 65 64
61
60

40

20 15.9 14.4 14
10 11.7 11.7 10.1 10 10.4 10
6.3
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 2020
Exports Imports
Source: World Bank, 2021

The graph above shows that Zambia has traditionally been an importer of finished manufactured commodities and an
exporter of primary commodities.

This points to a deficit of manufactured products within the Country, thereby highlighting opportunities for investment
in sub-sectors such as:
• Agro-processing;
• Pharmaceutical products;
• Assembly of machinery and equipment;
• Cement;
• Packaging materials;
• Fertilizers;
• Textiles; and
• Tobacco products, to mention a few.

24 Investor’s Guide to Zambia

 25

Investor’s Guide to Zambia 25

 4.4. Tourism
The tourism industry has grown steadily over the years, with the establishment of hotels in the major tourist centres such
as Livingstone and Lusaka. There is vast unexploited potential in the sector in Zambia due to its natural beauty, including
its wealth of wildlife and the Victoria Falls, which is one of the most renowned Seven Natural Wonders of the World. Other
waterfalls include Kalambo, Ngonye, Chishimba,Chipempe, and Ntumbachushi.

Zambia has 20 national parks and 34 game management areas, with a total of 23 million hectares of land set aside for
wildlife conservation. Also, the country has numerous museums that house priceless historical artifacts such as the Lusaka
National Museum, Moto-Moto Museum, and Livingstone Museum. Another attraction is the traditional ceremonies that
take place at different times of the year where the country’s rich cultural heritage is displayed. Lastly, the beautiful scenery
and abundant wildlife have led to the growth of a tourism sub-sector in the film industry. Concessions are provided to
movie production companies for shooting films or documentaries.

In order to support the tourism sector, Government has continued to build supporting infrastructure such as roads,
railways, and bridges, and to facilitate the expansion of the service industry. Since this is a priority sector, investment
attracts both fiscal and non-fiscal incentives.

# of Tourist Visits
Number of Tourist Visits (thousands)

1300 1266
1083 1072
975 932 956

650

325

0
2015 2016 2017 2018 2019 2020
Source: World Tourism Organization, 2021

The illustration above shows that Zambia has been gradually strengthening its status as a preferred tourist destination in
Africa. With an increase in tourist visits from about 900 thousand in 2013 to over 1,000 thousand in 2019 before a sharp
decline in 2019 which was due to the global pandemic COVID - 19. Therefore, the bulk of investment opportunities in
the sector are in services offered to tourists such as accommodation, restaurants, entertainment facilities, sports facilities,
and safaris/game watching, to mention a few.

26 Investor’s Guide to Zambia

4.5. Energy
Of the installed 2,898MW electricity generation capacity of Zambia, hydro power is the most important energy source
with 2,398MW (83 percent), followed by diesel and coal. Zambia has about 6,000MW of unexploited hydro power
potential due to its abundant water resources, providing an opportunity for investment in hydro power generation. The
demand for electricity has been growing at an average rate of 4 percent per annum, mainly due to economic activity
overall but particularly in the agriculture, manufacturing, and mining sectors. The country’s growing population has also
led to an increase in the demand for other sources of energy such as petroleum and solar energy for transportation and
domestic use, especially in rural areas. The state-owned ZESCO Ltd is the only entity that generates and transmits power,
while companies such as the Copperbelt Energy Corporation (CEC) procuring power from ZESCO to sell to the mines.
The energy sector is regulated by the Energy Regulation Board (ERB).

Government is working to close the power deficit, especially in rural areas, by facilitating the availability of affordable
energy in all parts of the country using programmes such as the Rural Electrification Programme which is spearheaded
by the Rural Electrification Authority (REA). In addition to water resources, Zambia has abundant renewable and non-
renewable resources including: 1) industrial minerals such as coal; 2) agricultural land to support bio-fuels; 3) ample
forests for bio-mass; 4) abundant wind; 5) sunlight for solar power; 6) abundant hot springs for geothermal energy; and
7) uranium for nuclear power.

per capita electric power consumption

1200
consumption (KWH per capita)

1000

800

600
per capita electric power
consumption
400

200

0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014

Source: World Bank, 2021

The table above shows that as Zambia’s population has gradually increased, its generation of electric power has not
increased proportionately. As a result, the per capita consumption of electricity has been gradually declining from over
1,100 KWh per capita in 1980 to only 715 KWh per capita in 2014. This clearly speaks to an energy deficit that presents
opportunities for profitable investments in the sector.

Zambia also presents potential for oil and gas drilling as shown by the massive exploration missions which are currently
taking place in Northern and Luapula provinces. Though Zambia does not currently produce oil, soil samples from the
aforementioned provinces which were tested in top laboratories in Europe showed good traces of crude oil. Investment
in this sector attracts fiscal and non-fiscal incentives espoused in the ZDA Act.

27

Investor’s Guide to Zambia 27

 Total Primary Energy Supply (TPES) by Source* Zambia 1990 - 2019
500000

375000

250000

125000

0
1990 1995 2000 2005 2010 2015 2019
Coal Hydro Biofuels and weste Oil Units

Source: International Energy Agency, 2022

From the graph above, the main sources of Energy have been Hydro, Biofuels, Coal, and other Oils. These sources are
inadequate to meet Zambia’s energy deficit which is estimated by the International Growth Centre to be about 34% of
demanded electricity. Therefore, investment opportunities exist in hydro power generation as well as renewable sources
such as solar, wind, geo-thermal, bio-fuels, and nuclear.

28 Investor’s Guide to Zambia

 29

Investor’s Guide to Zambia 29

30 Investor’s Guide to Zambia
05
ADDITIONAL INFORMATION

31

Investor’s Guide to Zambia 31

 5.ADDITIONAL INFORMATION

5.1. Investment Incentives

1. Investors in Priority Sectors of investment not less than $500,000 by a foreign Investor and $50,000 by a local investor in
MFEZs, Industrial Parks, or in a Rural Enterprise, are entitled to the following:
• Accelerated depreciation on capital equipment and machinery (fixed assets)
• Zero percent import duty rate on capital equipment and machinery for five years
• Zero percent corporate income tax on profits made on exports by companies in MFEZs, IPs and rural areas for a period
of 10 years; and
• Zero percent tax on dividends declared on profits made on exports by companies operating in MFEZs, IPs and rural areas
for a period of 10 years.

2. Investment of not less than $250,000 by foreign investors in any sector not classified as a priority sector or product under the
Act are entitled to non-fiscal incentives as follows:
• Investment guarantees and protection against expropriation
• Facilitation of the acquisition of land, water, electric power, transport, and communication services required for their in-
vestments
• Facilitation of immigration permits and other secondary licences/permits
• Provision of any other after-care assistance that may be required.

In addition, Investors who invest in Zambia enjoy the following guarantees:

• Free repatriation of profits and dividends
• Protection against non-commercial risks, as Zambia is a signatory of Multilateral Investment Guarantee Agency (MIGA) and
Africa Trade Insurance Agency
• Impartial forum for resolving disputes
• Special bilateral Investor Protection Agreements

5.2. Attractive Tax Environment

• 10 percent corporate tax rate for companies in the agriculture sector and agro-processing
• 15 percent corporate tax for firms adding value to copper cathodes and manufacturing fertilizers
• 30 percent corporate tax for non-incentivized sectors
• Import duty of 25 percent on finished products, 15 percent on intermediate goods, and 0-5 percent on raw materials.
• 4 percent on business turnover below K800,000/year IS THIS KWACHA AS BELOW IT IS LISTED AS ZMW, NOT K
• 16 percent VAT
• 20 percent Withholding Tax Rate on dividends, interest, and branch profit remittances
• Graduated Pay As You Earn rates from 0-37.5 percent
• 10 percent and 15 percent export duty on leather hides and precious stones, respectively.
• 5 percent import duty on copper and cobalt cathodes
• 15 percent export duty on precious metals and stones
• Pay As You Earn Threshold at ZMW 4,000

5.3. Banking and Finance

Zambia is served by a number of domestic and international banks, which are playing a positive role in its economic de-
velopment. The commercial banks have a well-distributed network of branches with automated teller machines (ATMs)
across the country.

All major credit cards are accepted in urban areas. Visitors with VISA and VISA Electron cards can draw cash from VISA
ATMs in Zambia. Traveller’s cheques (TC) and hard currency bank notes can be cashed at banks, large hotels or bureaux
de change. (Note: proof of purchase of TCs is a prerequisite for cashing them in at these outlets).
There are no restrictions on the importation of foreign currency into Zambia but all cash and travellers’ cheques should
be declared on Customs Form T2 available from customs officers at the port of entry.

32 Investor’s Guide to Zambia

The following is a summary of Zambia’s financial sector:
• 18 registered commercial banks with over 382 branches countrywide
• A range of non-bank financial institutions, which include
o 3 building societies, 1 credit reference bureau,
o 1 development finance institution,
o 8 leasing and finance companies,
o 1 savings and credit institution, 34 microfinance institutions, and
o 74 bureaux de change
• Lusaka Stock Exchange with 25 listed companies and a market capitalization of about $6 billion
• Yields of up to 26 percent and 20 percent on Government bonds and treasury bills, respectively
• Lending rates averaging 26.7 percent in 2019

The Government of Zambia aims to create a vibrant and globally competitive financial sector that drives high levels of
investment into the country and boosts Zambia’s position as a regional financial services hub.

List of Banks Registered in Zambia

NO BANK NAME SHORT NAME CITY TELEPHONE

1. AB Bank Zambia Limited AB BANK LUSAKA +260 211-220835/36/38/40

2. Access Bank Zambia Limited ACCESS LUSAKA +260 211-227956/222341

3. African Banking Corporation Zambia Limited ATLASMARA LUSAKA +260 211-257970-6

4. Bank of China (Zambia) Limited BOC LUSAKA +260 211-292159/238686

5. Absa Bank Zambia PLC ABSA LUSAKA +260 211-366100-147

6. Cavmont Bank Limited CAVMONT LUSAKA +260 211-360057

7. Citibank Zambia Limited CITIBANK LUSAKA +260 211-44492/3

8. Ecobank Zambia Limited ECOBANK LUSAKA +260 211-367340/250056

9. First Alliance Bank Limited FAB LUSAKA +260 211-229303

10. First Capital Bank Zambia FCB LUSAKA +260 211-368750-770

+260 211-366800/
11. First National Bank Zambia Limited FNB LUSAKA
366827/366847

12. Indo-Zambia Bank Limited INDO - ZAMBIA LUSAKA +260 211-224955/225080

13. Investrust Bank PLC INVESTRUST LUSAKA +260 211-294682/5

14. Stanbic Bank Zambia Limited STANBIC LUSAKA +260 211-370021/23

15. Standard Chartered Bank PLC STANCHART LUSAKA +260 211-225018/222046

33

Investor’s Guide to Zambia 33

 5.4. Licences/Permits
The Patents and Companies Registration Agency (PACRA) is the first port of call for local and foreign investors as it issues
companies with certificates of incorporation. Thereafter, ZDA issues certificates of registration and provides investment,
export, and enterprise development incentives and guarantees. All companies in Zambia are expected to be assigned
Tax Payers Identification Number (TPIN) Certificates, which are issued by the Zambia Revenue Authority (ZRA) upon reg-
istration. Other sector-specific licenses and permits include:
• Immigration and work permits for foreign investors, which are issued by the Immigration Department.
• Investments in a Game Management area require a permit from the Zambia Wildlife Authority.
• Enterprises in the Tourism sector require a licence from the Zambia Tourist Board. The Ministry of Tourism, through
the Hotels Board, issues hotel licences.
• Mining permits and licences are issued by the Ministry of Mines and Mineral Development. These include licences
for large-scale and small-scale mining, prospecting licences and permits, retention licences, gemstone licences,
gemstone sales certificates, artisan mining rights and reconnaissance permits.
• Banking and other financial sector licences/permits issued by the Bank of Zambia
• Aviation and road licences issued by the Department of Civil Aviation and the Road Transport and Safety Agency
(RTSA), respectively.
• Licences issued by the Energy Regulation Board (ERB) for investments in the Energy sector.
• Medicines and Food & Drug safety licences issued by the Zambia Medicines Regulatory Authority (ZMRA) and the
Food and Drugs Board respectively.
• Radio and Telecommunications licences issued by the Zambia Information Communication Technology Authority
(ZICTA).
• Environmental licences issued by the Zambia Environmental Management Agency (ZEMA).
• Wholesale, Manufacturers, and Agents licences, which are issued by the local councils.

5.5. Leisure and Entertainment

Zambia is regarded as one of the most beautiful, friendly, and multi-cultured countries on the African continent. Apart
from the majestic Victoria Falls, Zambia has more natural water resources than any other Southern African country, in-
cluding a myriad of other waterfalls spread across the country. It also has the famous Zambezi River. All of these lend
themselves to adventure sports and water-based tourist activities. Other tourist marvels include its vast lakes, rich rivers,
museums, and game parks. Popular facilities include sports clubs, shopping malls, and camp sites.

For the young at heart, cosmopolitan cities such as Lusaka, Kitwe, Ndola, and Livingstone offer an unforgettable night life
experience with their world-class hotels, cinemas, theatres, casinos and nightclubs, which host dancing, live music and
floorshows, particularly during weekends.

34 Investor’s Guide to Zambia

 35

Investor’s Guide to Zambia 35

36 Investor’s Guide to Zambia
06
Appendix

37

Investor’s Guide to Zambia 37

 6.1. Appendix 1 – Steps when Starting a Business

1. Patents and Companies Registration Agency

• Certificate of Incorporation

2. Zambia Revenue Authority

• Tax Payers Identification Number
(TPIN) Certificate

4. Utilities and Secondary Licences such as:

3. Zambia Development Agency

• Investment Certificate

ZESCO Ltd Zambia Environmental

• Electricity Management Agency
• Enviromental licenses

Immigration Department Zambia Information

• Immigration/work Permits and Communications
Technology Agency
• Telecoms Licences

Local authorities National Pensions Scheme

• Business Pemits/Land Authority
• Social security

38 Investor’s Guide to Zambia

6.2. Appendix 2: Application for a ZDA Certificate

Step 1: Consultation

Investment Promotion officer

reviews documents and
Investor prepares necessary advises if there are any missing
documents and submits to documents. For complete
General consultation through a ZDA officer applications, investor proceeds
meeting with a ZDA officer
to the next step

Step 2: submission of application Investor pays processing fees

and brings a receipt to the
ZDA officer

Officer files the application on the

system server

A senior investments officer screens the Application is processed and

application and checks for suitability recommended for approval

Approval letter is issued Certificate processing

Signing of the Certificate by the Signing of the Certificate by the Board

Director General Secretary/Legal Counsel

Step 3: issuance of ZDA

CoR within 30 days Certificate of Registration is issued to
the investor

39

Investor’s Guide to Zambia 39

 6.3. Appendix 3: Procedure for MFEZ Licence, Industrial
Cluster or Rural Area Permit

How does a company qualify to develop an MFEZ? How does a company qualify to operate in an MFEZ?

Company identifies land for the development of the Investor engages with Zone Developer or Zone
MFEZ and seeks approval in principle from ZDA for an Management Entity for leasing of land
area that is suitable

Once approval of suitability is obtained, Company Investor enters into Lease Agreement with Zone
prepares a master plan of the MFEZ Developer

Company submits application for MFEZ Development Zone Developer or Zone Management Entity
Permit to ZDA. Application must demonstrate that the recommends to the ZDA that the Investor be issued with
project will generate an investment of not less than an MFEZ Permit to operate in the Zone/ Industrial Park
US$500,000

ZDA scrutinizes the application with a multisectoral

Company submits application for an MFEZ Operator
team of local experts, in consultation with the applicant
Licence, accompanied by the following documents:
company
• Certified copy of company registration/incorporation
• Certified copy of certificate of share capital
The application is then submitted to the ZDA Board for • Certified copy of the list of shareholders and/or
approval directors
• Business plan and/ or feasibility study
• Verifiable evidence of project finance
• Brief resumés/CVs for shareholders and /or directors
• Letter from MFEZ Developer welcoming the project to
Once the application is approved, ZDA recommends to
be located in the MFEZ/industrial cluster or rural area
the Ministry of Commerce that it should issue a Statutory
• Clear statement on how the project, if approved, will
Instrument for declaring the MFEZ
contribute to the country’s economic growth and
development.

Company pays K100 (US$10) upon collection of MFEZ

The projects located in the MFEZ that will qualify for
operator licence. which takes approximately 10 days
incentives are those with investments of US$500,000
from date of application
or more. They must be engaged in production of the
following products in priority sectors:
• Manufacturing
• Floricultural and horticultural products
• Processed foods
The application is then submitted to the ZDA Board for
• Beverages and stimulants – tea and coffee
approval
• Textiles – cotton, cotton yarn, fabrics and garments
• Engineering products – copper products, iron ore,
steel and cobalt
• Leather products Once application is approved, the ZDA Board issues
Applicant with an MFEZ Licence

40 Investor’s Guide to Zambia

6.4. Appendix 4 – Useful Contacts

GOVERNMENT AGENCIES
10. National Pension Scheme Authority
1. Bank of Zambia
Levy Business Park
P.O. Box 30008, Lusaka
Cnr of Church and Kabelenga Roads
Phone: +260 211 22888820-228903/
P O Box 51275, Lusaka
Fax No: +260 211221767-
Tel: +260 211 2280468/, Fax: +260 211 221195
Email: pr@boz.zm
Email: infor@napsa.co.zm
2. Zambia Environmental Management Agency Website: www.napsa.co.zm
P.O. Box 35131, Lusaka
Tel: +260 211 2541301/
Fax: +260 211254164-
Email: zema@zema.org.zm
Website: www.zema.org.zm
3. Immigration Department
Kent Building
P.O. Box 50300,
Lusaka
Tel : +260 211252650-
Fax :+260 211254393/252008-
4. Lusaka Stock Exchange
P.O. Box 34523 Lusaka
Tel: +260 211 228537/ 228391
Fax: +260 211225969-
E-mail: luse@zamnet.zm
5. Ministry of Commerce, Trade and Industry
P.O. Box 31968, Lusaka
Phone: +260 211 2283019-
Fax: +260 211 226984
Email: mcti@gov.co.zm
Website: www.mcti.gov.co.zm
6. Patents and Companies Registration Agency
P.O. Box 32020, Lusaka
Tel: +260 211255127255127/
Fax: +260 211 255426
Email: pro@pacra.org.zm
Website: http://www.pacra.org.zm
7. Zambia Development Agency
P O Box 30819 Lusaka
Tel: +260 211220177223859/
Fax: +260 211 225270
E-mail: info@zda.org.zm Website: www.zda.org.zm
8. Zambia National Tourist Board
P.O. Box 30017 Lusaka
Tel: +260 211 222714, Fax: +260 211 225174
E-mail: zntb@zamnet.zm,
www.zambiatourism.com
9. Zambia Revenue Authority
P.O. Box 35710, Lusaka
Tel: +260 211 223754/ 2292148-
Email: advice@zra.org.zm
Website: www.zra.org.zm

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Investor’s Guide to Zambia 41

 BUSINESS ASSOCIATIONS
1. Zambia Association of Chambers of Commerce & Industry
P.O. Box 30844, Lusaka
Tel: +260 211 252369, Fax: +260 211 252483
E-mail: zacci@zamnet.zm

2. Zambia Association of Manufacturers

P.O. Box 31992, Lusaka
Tel: +260 211 229364/ 222709
Fax: +260 211 229371
E-mail: zam@zamnet.zm

3. Zambia Business Forum

Plot 4 United Nations Ave. Long Acres, P.O. Box 37202, Lusaka
Fax: +260257167-211-

4. Zambia Export Growers Association

P.O. Box 31705, Lusaka
Tel: +260 211 221895, Fax: +260 211 221895
E-mail: zega@zamnet.zm

5. Zambia Federation of Employers

P.O. Box 31941, Lusaka
Phone: +260 211 29554182/,
Fax: +260 211 295582
Email: zfe@zamnet.zm

6. Zambia National Farmers Union

Showgrounds
P.O. Box 30395 Lusaka
Tel: +260 211 223222, Fax: +260 211 222736
E-mail: znfu@zamnet.zm

42 Investor’s Guide to Zambia

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Investor’s Guide to Zambia 43