The Laws of Zambia

REPUBLIC OF ZAMBIA

THE INVESTMENT ACT

CHAPTER 385 OF THE LAWS OF ZAMBIA

CHAPTER 385 THE INVESTMENT ACT

THE INVESTMENT ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

Section
1. Short title
2. Interpretation
3. Non-derogation from any other law

PART II
INVESTMENT CENTRE AND BOARD

4. Constitution of Investment Centre

5. Functions of Centre
6. Establishment of Board
7. Functions of Board

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PART III
PROCEDURES FOR INVESTMENT IN ZAMBIA

8. Investment Certificate
9. Application for Investment Certificate
10. Issue of Investment Certificate
11. Appeal from decision of Board
12. Condition of Investment Certificate
13. Variation of Investment Certificate
14. Extension and surrender of Investment Certificate
15. Transfer of Investment Certificate
16. Amendment of Investment Certificate
17. Suspension or cancellation of Investment Certificate

PART IV
GENERAL INCENTIVES

18. Qualifications for general incentives

19. Income tax of non-traditional products
20. Income tax on non-traditional products
21. Income tax on rural enterprises
22. Income tax allowances
23. Income tax deductions
24. Income tax exemption on dividend from farming
25. Double taxation agreements
26. Income tax on mining
27. Bonded factory
28. Economic development zone or export processing zone
29. Small scale and village enterprises
30. Immigration

PART V
SPECIAL INCENTIVES

30A. Repealed by Act No. 5 of 1996

31. Savings for holders of investment certificate issued before 27/01/96 and small
scale enterprises

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PART VI
SERVICES

32. Land
33. Water, electricity, transport, etc.
34. Registration and licensing

PART VII
INVESTMENT GUARANTEES AND GENERAL

35. Protection from acquisition

36. Transfer of funds
37. Transitional provisions
38. Regulations
39. Repeal of Act No. 19 of 1991 and savings

FIRST SCHEDULE-Investment Board

SECOND SCHEDULE-Specified Industries

THIRD SCHEDULE-Part I: Application forms

Part II: Investment Certificate

CHAPTER 385

INVESTMENT Act No.

39 of 1993
13 of 1994
An Act to revise the law relating to Investment in Zambia so as to provide a 26 of 1995
comprehensive legal framework for investment in Zambia; to repeal the 5 of 1996
Investment Act, 1991; and to provide for matters connected with or incidental
to the foregoing.

[8th September, 1993]

PART I

PRELIMINARY

1. This Act may be cited as the Investment Act. Short title

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2. In this Act, unless the context otherwise requires- Interpretation

"Board" means the Investment Board of the Centre established by section six;

"bonded factory" means a factory which is a warehouse, bonded and licensed in Cap. 322
terms of section fifty-five of the Customs and Excise Act, in which goods
may be lodged, kept and secured without the payment of duty or until the
requirements of that Act have been satisfied, and includes any store,
house, shed, yard, or other place in which goods are so lodged;

"business enterprise" includes any undertaking, carrying on business in the field of

manufacturing, agriculture, transport, communications, construction,
tourism and services or know-how;

"Centre" means the Investment Centre constituted under section four;

"Chairman" means the person elected Chairman of the Board;

"Commissioner" means the Commissioner of Taxes appointed under the Income Cap. 323
Tax Act;

"Controller" means the Controller of Customs and Excise appointed under the Cap. 322
Customs and Excise Act;

"Director-General" means the chief executive officer of the Centre appointed by the
Board;

"economic development zone or export processing zone" means any area

declared to be an economic development zone or export processing zone
under section twenty-eight;

"foreign investment" means investment brought in by an investor from outside, and

invested in Zambia;

"investment" means constribution of capital, in cash or in kind, by an investor, to a

new business enterprise, to the expansion or rehabilitation of an existing
business enterprise or to the purchase of an existing business enterprise
from the State;

"investor" means any person, natural or juridical, whether a Zambian citizen or not,
investing in Zambia in accordance with the provisions of this Act;

"Investment Certificate" means a certificate issued by the Board under section ten;

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"manufacturing" means the transforming, on a commercial scale, of raw materials

into finished or semi-finished products, and includes the assembling of
inputs into finished or semi-finished products, but does not include mining;

"member" means a member of the Board;

"mineral" shall be construed in its general, extensive and comprehensive sense Cap. 198
and shall include ore and mineral products, any substance whether in solid,
liquid or gaseous form occurring naturally in or on the earth but shall not
include public and private water when used for a primary, secondary or
tertiary use as defined in the Water Act;

"mining" means the winning of any mineral;

"non-traditional products" means products other than raw copper, lead, zinc or
cobalt;

"rural area" means any area in Zambia other than Kabwe Urban District, Kafue
Township, Livingstone District, Lusaka Urban District and the Copperbelt
Province excluding therefrom Ndola Rural District;

"Secretary" means the Secretary to the Board.

3. This Act shall be cumulative and in addition to, and not in derogation from, any Non-derogation from
other written law. any other law

(As amended by Act No. 26 of 1995)

PART II

INVESTMENT CENTRE AND BOARD

4. Notwithstanding section thirty-nine, the Investment Centre as constituted under Constitution of

the Investment Act, 1991, shall continue to exist as if constituted under this Act. Investment Centre
Act No. 19 of 1991

5. (1) The functions of the Centre shall be to promote, co-ordinate Government Functions of Centre
policies on, and facilitate, investment in Zambia, so as to provide a one-stop support
facility to investors.

(2) Notwithstanding the generality of subsection (2) the functions of the Centre shall
be to-

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(a) promote investment in Zambia;

(b) monitor the performance of enterprises approved by it and enforce

compliance with the terms and conditions of investment certificates
approved under this Act;

(c) establish and maintain institutional liaison arrangements;

(d) assist in securing from any Ministry, government department, local authority
or other relevant body any permission, exemption, authorisation, licence,
bonded status, land and any other thing required for the purpose of
establishing or operating a business enterprise;

(e) keep records of all technology transfer agreements relating to investments

under this Act;

(f) provide consultancy services to investors;

(g) collect and disseminate information on relevant laws and regulations, and
technical matters, including applicable standards, specifications and quality
control procedures;

(h) undertake economic and sector studies, including market surveys, with a
view to identifying investment opportunities;

(i) register investors;

(j) implement decisions made by the Board;

(k) exercise all functions and powers and perform all duties which under or by
virtue of this Act or any other written law are, or may be, vested or
delegated to it; and

(l) do all such things as are necessary or incidental or conducive to the

functions specified in this Act.

6. (1) There is hereby established the Investment Board of the Centre which shall Establishment of
be a body corporate with perpetual succession and a common seal, capable of suing and Board
of being sued in its corporate name and with power, subject to the provisions of this Act, to
do all such acts and things as a body corporate may by law do or perform.

(2) The provisions of the First Schedule shall apply as to the constitution of the
Board and otherwise in relation thereto.
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7. (1) Subject to the other provisions of this Act, the Board shall be responsible for Functions of Board
the affairs of the Centre.

(2) Notwithstanding the generality of subsection (1) the Board shall-

(a) implement investment policies;

(b) formulate investment promotion strategies;

(c) establish investment guidelines for the Centre;

(d) issue investment certificates; and

(e) do all such things as are necessary or incidental to the better carrying out of
the functions specified in this Act.

PART III

PROCEDURES FOR INVESTMENT IN ZAMBIA

8. Any person investing in a business enterprise may apply for an Investment Investment Certificate
Certificate under this Part:

Provided that in respect of the industries specified in the Second Schedule, the
Board shall not issue an Investment Certificate to an investor until the investor obtains the
necessary licences, authorisations, or permits from the relevant ministry or body.

9. (1) An application for an Investment Certificate in the form set out in the Third Application for
Schedule shall be made to the Director-General and shall be accompanied by a Investment Certificate
non-refundable fee determined by the Board.

(2) The Director-General shall, on receipt of an application for an Investment

Certificate, submit the application to the Board for its consideration at the next meeting of
the Board.

10. (1) The Board shall, within six weeks of receipt of an application for an Issue of Investment
Investment Certificate issue an Investment Certificate, with general or special incentives, Certificate
as the case may be, in the form set out in the Fourth Schedule, if-

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(a) the application is in accordance with the provisions of this Act; and

(b) the activity planned to be undertaken by the business enterprise does not
contravene any laws and regulations in force in Zambia.

(2) A decision of the Board in respect of an application for an Investment Certificate

shall be communicated to the applicant, in writing, within fourteen days of the Board's
decision:

Provided that a decision of the Board rejecting an application shall be accompanied

by the reasons for the rejection.

11. Any applicant for an Investment Certificate who is aggrieved by a decision of Appeal from decision
the Board rejecting the application may appeal to the Minister subject to a further appeal of Board
to the High Court.

12. An Investment Certificate issued under section ten shall- Condition of

Investment Certificate
(a) authorise the holder thereof to make all necessary arrangements for the
commencement of the business enterprise described therein;
(b) contain terms and conditions of the certificate and any general or special
incentives given; and
(c) have unlimited period of validity, subject to it being utilised within twelve
months from the date of issue.

13. (1) The holder of an Investment Certificate may at any time during the validity of Variation of
the certificate, apply to the Board for variation of the terms and conditions of the Investment Certificate
certificate, the incentives granted thereunder or any matter relating to the certificate.

(2) The Board shall consider the application referred to in subsection (1) and may
after negotiations, if any, grant or refuse such application.

14. (1) Where the holder of an Investment Certificate is unable to commence Extension and
operations within twelve months from the date of issue, he shall, at least sixty days before surrender of
the expiry of his certificate, apply to the Board for an extension of that period, giving Investment Certificate
reasons thereof; and the Board shall, if satisfied with the reasons, extend the validity for
such period as he may consider reasonable.

(2) Where the holder of an Investment Certificate decides not to continue with any
project to which the certificate relates, he shall so notify the Board in writing and shall
agree with the Board the terms and conditions of the surrender of the certificate with
particular reference to anything done or any benefit obtained under the certificate.

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(3) Where the period of twelve months from the date of issue of an Investment
Certificate has expired without the holder of the certificate commencing business
operations and no application for its extension has been made in accordance with
subsection (2) the certificate shall lapse and shall, subject to section seventeen, be
cancelled and the holder of the licence shall cease to be entitled to any benefits
obtainable under the certificate.

15. (1) An Investment Certificate shall not be transferred to a third party without the Transfer of Investment
prior approval of the Board but such approval shall not be unreasonably withheld. Certificate

(2) Every application for approval to transfer an Investment Certificate shall be

made to the Board and the Board may, within thirty days of the application, approve the
application, in accordance with this Act.

16. The Board may amend an Investment Certificate- Amendment of

Investment Certificate
(a) where some other person has succeeded to the interest in the business
enterprise belonging to the holder of the Investment Certificate, by
substituting for the name of the holder the name of the successor, or
(b) where the name of the business is altered, by substituting the name so
altered.

17. (1) Subject to the other provisions of this Act, the Board may suspend or cancel Suspension or
any Investment Certificate if the investor- cancellation of
Investment Certificate

(a) obtained the Investment Certificate by fraud, deliberate or negligent

submission of false information or statements;

(b) transfers or otherwise assigns an Investment Certificate without the prior

approval of the Board;

(c) contravenes this Act or any terms and conditions of the certificate issued to
him; or

(d) fails without reasonable cause to establish the business enterprise within
the time stipulated in the certificate or any extension thereof.

(2) The Board shall, before suspending or cancelling an Investment Certificate in

accordance with subsection (1), give its written notice to the investor of its intention to
suspend or cancel the Investment Certificate and the grounds for the suspension or
cancellation and require the investor to show cause within a period of not more than thirty
days why the certificate should not be suspended or cancelled.

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(3) The Board shall not suspend or cancel an Investment Certificate under this
section if the investor takes remedial measures to the satisfaction of the Board within the
period of thirty days referred to in subsection (2).

(4) If the Investor notified under subsection (2) fails to show cause to the satisfaction
of the Board or does not take remedial measures to the satisfaction of the Board within
the time specified in that subsection, the Board may suspend or cancel the Investment
Certificate.

(5) Where an Investment Certificate is suspended, the holder of the certificate shall
cease to be entitled to the rights and benefits conferred under this Act for the period of the
suspension.

(6) Where an Investment Certificate is cancelled the holder of the certificate shall
cease to be entitled to the benefits conferred under this Act with effect from the date of
such cancellation and shall return the licence to the Director-General.

(7) Any person who is aggrieved by any decision of the Board under this section
may appeal to the Minister subject to further appeal to the High Court.

PART IV

GENERAL INCENTIVES

18. The general incentives provided in this Part shall apply to any investor Qualification for
investing in a business enterprise under this Act. general incentives

19. An investor shall be taxed on that portion of income which is determined by the Income tax of
Commissioner as originating from the export of non-traditional products at a rate of fifteen non-traditional
per centum. products

20. An investor shall be taxed on that portion of income which is determined by the Income from
Commissioner General as originating from the export of non-traditional products at a rate non-traditional
of fifteen per centum. products

21. An investor shall be taxed on income received from a rural enterprise for each Income tax on rural
of the first five charge years for which such business enterprise is carried on, reduced by enterprises
such amount as is equal to one-seventh of that tax which would otherwise be so
chargeable on such income.

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22. (1) An Investor shall be entitled to capital allowances which shall be deducted in Income tax allowances
ascertaining the gains or profits at the following special rates:

(a) buildings used for manufacturing, or hotels qualify for a wear and tear
allowance of five per centum per year of the cost, plus an initial allowance
of ten per centum of the cost in the year in which the building is first used;

(b) implements, machinery and plant used exclusively for farming,

manufacturing or tourism qualify for a wear and tear allowance of fifty per
centum per year of the costs in each of the first two years;

(c) capital expenditure on farm improvements qualify for a farm improvement

allowance of twenty per centum of such expenditure for each of the first five
years.

(2) An Investor who incurs capital expenditure on the growing of tea, coffee, or
banana plants, citrus fruit trees or other similar plants or trees, shall be entitled to a
development allowance of ten per centum of such expenditure which shall be deducted in
ascertaining the gains or profits of that business enterprise for the charge year up to the
first year of production.

(3) An Investor is entitled to a farm works allowance of one hundred per centum in
respect of expenditure on farming land in his ownership or occupation, and for the
purposes of farming, or stumping and clearing, works for the prevention of soil erosion,
boreholes, wells, aerial and geophysical surveys, and water conservation.
(As amended by Act No. 26 of 1995)

23. An Investor shall be entitled to the following deductions in ascertaining gains or Income tax deductions
profits:
(a) any loss incurred by an investor, in any charge year shall be deducted only
from the income of the investor from the same source as that in which the
loss was incurred; such loss shall be deducted from his income of the
following charge year, and so on from year to year;
(b) any payments made for the purpose of technical education relating to a
business enterprise or for the purposes of obtaining further experience,
training or qualifications, relating to that business enterprise;
(c) any expenditure, not being expenditure of a capital nature, incurred by a
business enterprise during a charge year on experiments or research
relating to that business enterprise.
(As amended by Act No. 26 of 1995)

24. Income received by way of a dividend declared from farming shall be exempt Income tax exemption
from tax for the first five years of operations. on dividend from
farming

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25. Where a double taxation agreement exists between Zambia and another Double taxation
country, foreign tax payable by an investor to the other country in respect of any foreign agreements
income shall be allowed as a credit for that investor against Zambian tax in respect of that
foreign income.

26. Repealed by Act No. 26 of 1995.

27. An Investor may apply to be appointed and licensed by the Controller to Bonded factory
establish and operate a bonded factory under section fifty-five of the Customs and Excise Cap. 322
Act.

28. The Controller shall, after consultation with the Minister, licence an area as an Economic
economic development zone or export processing zone under section fifty-five of the development zone or
Customs and Excise Act. export processing
zone
Cap. 322

29. A small scale enterprise or a village enterprise registered under the Small Small scale and village
Industries Development Act, shall be entitled to the following incentives: enterprises
Cap. 425
(a) exemptions from payment of tax on income for-

(i) the first three years of operations for an enterprise operating in an

urban area;

(ii) the first five years of operations for an enterprise in a rural area;
(b) operation of a manufacturing enterprise for the first five years without a
manufacturing licence required for such an enterprise under any law;
(c) for an enterprise with an investment in plant and machinery of less than five
million kwacha, exemption from the payment of licensing fees required for
such an enterprise under any law; and
(d) exemption from the payment of rates on factory premises for the first five
years.

(As amended by Act No. 5 of 1996)

30. (1) Notwithstanding the provisions of the Immigration and Deportation Act, an Immigration
investor who invests a minimum of two hundred and fifty thousand United States Dollars Cap. 123
or the equivalent in convertible currency and who employs a minimum of ten persons shall
be entitled to a self employment permit or resident permit.

(2) The Centre shall assist an investor who meets the requirements of subsection
(1) to obtain work permits for up to five expatriate employees.

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PART V

SPECIAL INCENTIVES

30A. Repealed by Act No. 5 of 1996.

31. (1) Any investor who has been issued with an investment certificate with special Savings for holders of
incentives before the 27th of January, 1996, shall continue to enjoy such incentives. investment certificate
issued before 27/01/96
and small scale
enterprises

(2) A small enterprise registered under the Small Enterprises Development Act Cap. 425
before the 27th January, 1996, shall be entitled to exemption from customs duties and
value added tax payable on imported equipment to be used in the enterprise if such
equipment was ordered but not imported before the 27th January, 1996.

(As amended by Act No. 5 of 1996)

PART VI

SERVICES

32. (1) The Centre shall assist an investor in identifying suitable land for investment Land
and shall assist the investor in applying to the responsible authorities for the land in
accordance with established procedures.

(2) Where an application is made under subsection (1) and the land has been
demarcated for the purpose applied for and such land has not been allocated to any other
person, body or authority, the authority responsible for the allocation of land shall, upon
payment, by the investor, of the prescribed fees, charges, or rates, allocate the land to the
investor and the officer responsible for the registration of such land shall make such
entries in the appropriate register and shall issue to the investor a certificate of title in
respect of the said land.

33. The Centre shall assist an investor in obtaining water, electric power, transport Water, electricity,
and communication services and facilities required for the investment. transport etc

34. The Centre shall assist an investor in obtaining any licence permit, registration Registration and
or authorisation for the purpose of commencing or operating the business enterprise. licensing

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PART VII

INVESTMENT GUARANTEES AND GENERAL

35. (1) No property of any description shall be compulsorily acquired, and no Protection from
interest in or right over property of any description of an investor shall be compulsorily acquisition
acquired, except for public purposes under an Act of Parliament relating to the compulsory
acquisition of property which provides for payment of compensation in respect thereof.

(2) Any compensation payable under this section shall be made promptly at the
market value and shall be fully transferable at the applicable exchange rate in the
currency in which the investment was originally made, without deductions for taxes, levies,
and other duties except where those are due.

36. Notwithstanding the provisions of any other written law relating to Transfer of funds
externalisation of funds, a foreign investor who has registered foreign capital with the
Bank of Zambia, shall be entitled, in respect of a business enterprise to which the
Investment Certificate relates, to transfer out of Zambia in foreign currency and after
payment of the relevant taxes-
(a) dividends or after-tax income;
(b) the principal and interest of any foreign loan;
(c) management fees, royalties, and other charges in respect of any
agreement; or
(d) the net proceeds of sale or liquidation of the business enterprise.

37. An investor who, immediately prior to the commencement of this Act, holds- Transitional provisions

(a) a valid investment licence or permit, certificate of incentives or certificate of Act No.
registration under the Investment Act, 1991; or 19 of 1991

(b) any other valid certificate or licence issued under any other written law with
respect to a business enterprise recognised by the Board;

shall give written notice to that effect to the Board within six months after the Act No.
commencement of this Act with a certified copy of the licence, permit or certificate, as the 19 of 1991
case may be, and the rights and benefits accruing to the holder of such licence, permit or
certificate shall continue in accordance with the provisions of the Investment Act, 1991.

38. (1) After consultation with the Board, the Minister may, by statutory instrument, Regulations
provide for-

(a) anything which by this Act is required or permitted to be prescribed;

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(b) the collection of industrial data and the procedure for such collection; and

(c) such other matters as are necessary or conducive to the better carrying out
of the purposes of this Act.

(2) The Minister may, upon recommendation by the Board, by statutory instrument,
amend any form set out in the Schedules to this Act.

39. (1) Subject to subsection (2), the Investment Act, 1991 is hereby repealed. Repeal of
Act No.
19 of 1991 and
(2) Notwithstanding the repeal of the Investment Act, 1991- savings
Act No.
19 of 1991

(a) any agreement executed under that Act shall continue in force as if made
under this Act;

(b) any applications pending before the Investment Board under that Act shall
be deemed to have been made to the Board under this Act;

(c) any registration done, any other right or benefits accruing, or any liabilities
suffered under that Act, other than those specified in section thirty-seven,
shall continue in accordance with this Act:

(d) any regulations made or directions given under that Act shall, unless
contrary to this Act, continue in force until revoked, as if made or given
under this Act.

FIRST SCHEDULE

(Section 6)

INVESTMENT BOARD

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1. (1) The Board shall consist of-

Composition of Board
(a) a representative of a senior rank from each of the Ministries responsible for finance, commerce and industry,
legal affairs, land, home affairs, tourism and agriculture;
(b) a representative of the National Environmental Council;
(c) four persons, one each from-
(i) the chambers of commerce and industry;
(ii) the farmers;
(iii) Non-governmental Organisation Coordinating Committee; and
(vi) the agencies promoting small scale industries.
(d) three reputable private businessmen appointed by the Minister:

Provided that, notwithstanding section thirty, the persons appointed as members of the Investment Board under the Act No
Investment Act, 1991, except the Director-General, shall continue to hold office as members of the Board until the Minister 19 of 1
appoints the members under this Act.
(2) The members referred to in items (a), (b), and (c) shall be nominated by their respective institutions and the
Minister shall appoint those nominated persons as members of the Board.
(3) The Chairman and the Vice-Chairman shall be elected by the Board from amongst its members:
Provided that the members appointed under items (a) shall not be elected as Chairman or Vice-Chairman.
2. (1) The members referred to in paragraph 1 shall hold office for a period of three years from the date of
appointment and may be re-appointed upon the expiration of that term.

Tenure of office and vacancy

(2) A member referred to in items (b), (c), and (d) of sub-paragraph (1) of paragraph 1 may resign upon giving one
month's notice in writing to the institution which nominated him and to the Minister.
(3) The office of a member shall become vacant-
(a) upon his death;
(b) if he is absent without reasonable excuse from three consecutive meetings of the Board of which he has had
notice;
(c) on ceasing to be a representative of the organisation which nominated him;
(d) if he is an undischarged bankrupt; or
(e) if he fails to disclose his interest as required by paragraph 7.
3. (1) The seal of the Board shall be such device as may be determined by the Board and shall be kept by the
Secretary

Seal of Board
(2) The Board may use a wafer or rubber stamp in lieu of the seal.
(3) The affixing of the seal shall be authenticated by the Chairman or the Vice-Chairman and the Secretary or one
other person authorised in that behalf by a resolution of the Board.
(4) Any contract or instrument which, if entered into or executed, by a person not being a body corporate, would not be
required to be under seal, may be entered into or executed without seal on behalf of the Board by the Secretary or any
other person generally or specifically authorised by the Board in that behalf.
(5) Any document purporting to be a document with the seal of the Board or issued on behalf of the Board shall be
received in evidence and shall be deemed to be so executed or issued, as the case may be, without further proof, unless
the contrary is proved.

4. A member of the Board or any committee of the Board shall be paid such remuneration and allowances as the Remun
Board may determine. and
allowan

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5. (1) Subject to the other provisions of this Act, the Board may regulate its own procedure. Procee
(2) The Board shall meet for the transaction of business at least once in very three months at such places and at such Board
times as the Chairman may decide.
(3) Upon giving notice of not less than fourteen days, a meeting of the Board may be called by the Chairman; and
shall be called if not less than five members so request in writing:
Provided that if the urgency of any particular matter does not permit the giving of such notice, a special meeting may
be called by the Chairman, upon giving a shorter notice.
(4) Nine members shall form a quorum at any meeting of the Board.
(5) There shall preside at any meeting of the Board-
(a) the Chairman; or
(b) in the absence of the Chairman, the Vice-Chairman; or
(c) in the absence of the Chairman and the Vice-Chairman such member as the members present may elect for
the purpose of that meeting.
(6) The Board may invite any person, whose presence is in its opinion desirable, to attend and to participate in the
deliberations of a meeting of the Board but such person shall have no vote.
(7) A decision of the Board on any question shall be by a majority of the members present and voting at the meeting
and, in the event of an equality of votes, the person presiding at the meeting shall have a casting vote in addition to his
deliberative vote.
(8) The validity of any proceedings, act or decision of the Board shall not be affected by any vacancy in the
membership of the Board or by any defect in the appointment of any member or by reason that any person not entitled so
to do took part in the proceedings.
(9) The Board shall cause minutes to be kept of the proceeding of every meeting of the Board and of every meeting of
any committee established by the Board.

6. (1) The Board may, for the purpose of performing its functions under this Act, establish committees of members of Commi
the Board and delegate to any such committee such of its functions as it thinks fit. Board
(2) The Board may appoint the Director-General as a member of a committee established under subsection (1).
(3) Subject to any specific or general direction of the Board any committee established under subsection (1) may
regulate its own procedure.
(4) A committee may invite any person, whose presence is in its opinion desirable, to attend and to participate in the
deliberations of a meeting of the committee but such person shall have no vote.

7. (1) If any person is present at a meeting of the Board or any committee of the Board at which any matter is the Disclos
subject of consideration and in which matter that person or his spouse is directly or indirectly interested in a private interest
capacity that person shall, as soon as practicable after the commencement of the meeting, disclose such interest and shall
not, unless the Board otherwise directs, take part in any consideration or discussion of, or vote on, any question touching
such matter.
(2) A disclosure of interest made under this section shall be recorded in the minutes of the meeting at which it is
made:

8. No action or other proceedings shall lie, or be instituted against any member or member of a committee for or in Immun
respect of any act or thing done or omitted to be done in good faith in the exercise or purported exercise of his functions membe
under this Act.

9. (1) The Board shall appoint, on such terms and conditions as it may determine, a Director-General who shall be the Directo
chief executive officer of the Centre, and who shall be responsible for the administration of the Centre and the Genera
implementation of the decisions of the Board.
(2) The Director-General may, subject to the approval of the Board, establish such organisational structures for the
Centre as he may consider necessary for the discharge of the functions of the Centre.
(3) The Director-General shall attend meetings of the Board and may address such meetings, but shall not vote on
any matter:
Provided that the person presiding at any meeting of the Board, may for good cause, require the Director-General to
withdraw from such meeting.
(4) Paragraph 7 shall apply, with the necessary modifications, to the Director-General.

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 The Laws of Zambia

10. (1) There shall be a Secretary to the Board who shall be appointed by the Board on such terms and conditions as Secreta
the Board may determine. other s
(2) The Secretary shall be responsible for the day-to-day affairs of the Board under the general supervision of the
Director-General.
(3) The Board may appoint, on such terms and conditions as it may determine, such other staff for the Centre as it
considers necessary.

11. (1) No member of the Board or employee of the Centre, or any person invited to attend a meeting of the Board or Prohibi
committee shall, without the consent in writing given by or on behalf of the Board, publish or disclose to any person, publica
otherwise than in the course of his duties, the contents of any document, communication or information whatsoever, which disclos
relates to, and which has come to his knowledge in the course of, his duties under this Act. informa
(2) Any person who knowingly contravenes the provisions of sub-paragraph (1) shall be guilty of an offence and shall
be liable, upon conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding
three years, or to both.
(3) If any person having information which to his knowledge has been published or disclosed in contravention of
sub-paragraph (1) unlawfully publishes or communicates any such information to any other person, he shall be guilty of an
offence and shall be liable, upon conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a
term not exceeding three years, or to both.
(As amended by Act No. 13 of 1994)

12. (1) The funds of the Board shall consist of such moneys as may- Funds
(a) be appropriated by Parliament for the purposes of the Board; Board

(b) be paid to the Board by way of grants or donations;

(c) be paid to the Board by way of certificate fees; and
(d) vest in or accrue to the Board.
(2) The Board may-
(a) accept money by way of grants or donations from any source in Zambia;
(b) raise money by way of loans or otherwise from any source in Zambia and, subject to the approval of the
Minister, from any source outside Zambia, such moneys as it may require for the discharge of its functions;
and
(c) charge and collect fees in respect of programmes, publications, seminars, consultancy services, and other
services provided by the Centre.
(3) There shall be paid from the funds of the Board-
(a) the salaries, allowances and loans to the staff of the Board;
(b) such reasonable travelling, transport and subsistence allowance for members or members of any committee of
the Board when engaged on the business of the Board at such rates as the Board may determine; and
(c) any other expenses incurred by the Board in the performance of its functions.
(4) The Board may invest in such manner as it thinks fit such of its funds as it does not immediately require for the
performance of its functions.

13. The financial year of the Board shall be the period of twelve months ending on 31st December, in each year. Financ

14. (1) The Board shall cause to be kept proper books of account and other records relating to its accounts. Accoun
(2) The accounts of the Board shall be audited annually by independent auditors appointed by the Board.
(3) The auditor's fees shall be paid by the Board.

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 The Laws of Zambia

15. (1) As soon as practicable, but not later than six months after the expiry of the financial year, the Board shall submit Annual
to the Minister a report concerning its activities during that financial year.
(2) The report referred to in subsection (1) shall include information on the financial affairs of the Board and there shall
be appended to the report-
(a) an audited balance sheet;
(b) an audited statement of income and expenditure; and
(c) such other information as the Minister may require.
(3) The Minister shall, not later than seven days after the first sitting of the National Assembly next after the receipt
referred to in sub-paragraph (1), lay it before the National Assembly.

SECOND SCHEDULE

(Section 8)

Specified Industries

1. Any industry manufacturing arms and ammunition, explosives, military vehicles and equipment, aircraft and any
other military hardware.
2. Any industry manufacturing poisons, narcotics, dangerous drugs and toxic, hazardous and carcinogenic
materials.
3. Any industry producing currency, coins and security documents.

THIRD SCHEDULE

(Section 9)

Investment (Cap. 385 of the Laws of Zambia)

APPLICATION FOR AN INVESTMENT CERTIFICATE

The Director-General

Investment Centre

P.O. Box 34580

Lusaka

Application is hereby made under the provisions of the Investment Act for the grant and issuance of an

Investment Certificate and the following information is submitted in support thereof:

1. (a) Full name of enterprise ............................................................................................................................................

(b) Plot No. ............................................................. Street/Road ..................................................................................
(c) Address ....................................................................................................................................................................
(d) Province: ................................ District ........................................... Telephone No. ................................................
(e) Date of incorporation or registration of business name ............................................................................................
2. State whether your enterprise is: Mark 'X' where applicable.

(a) Sole Ownership: ........................................................................................

(b) Partnership: ...............................................................................................
(c) Private Company .......................................................................................
(d) Co-operative Society .................................................................................
(e) Public Company ........................................................................................
(f) Parastatal: ..................................................................................................
(g) Other: .........................................................................................................

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 The Laws of Zambia
3. Particulars of Ownership/Directors:
Name and Full Equity Amount Foregin equity Foreign
Address Nationality % K contribution investment

4. Brief details of the:

(a) Project: ......................................................................................................................................................................................
(b) Products: ...................................................................................................................................................................................
5. Finance:
Foreign Local Total
Equity capital .........................
Loans and banks ..................
Suppliers credit .....................

6. Employment and Training:

Category Number to be employed
Zambia Non-zambia
Management
Technical
Operatives
Other (Specify)
Total

7. List all technological management agreements.

Please give brief details:

1. ....................................................................................................................................................................................

2. ....................................................................................................................................................................................

3. ....................................................................................................................................................................................

4. ....................................................................................................................................................................................

5. ....................................................................................................................................................................................

6. ....................................................................................................................................................................................

(You may use a separate sheet)

FOURTH SCHEDULE

(Section 10)

INVESTMENT CERTIFICATE

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 The Laws of Zambia

This is to certify that the investors in this certificate has/have been duly registered under the Investment Act, 1993, in the
business enterprise specified hereunder:

Name of Investor ....................................................................................................................................................

Business Enterprise ................................................................................................................................................
Investment Certificate number ................................................................................................................................

Date ..................................................... day of ................................................................ 19.............

OFFICIAL STAMP:
..................................................................................
Investment Board

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