TRADE AND ECONOMICS

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 Industrialisation and Job Creation Strategy and the Youth Empowerment Action Plan.

Zambia is a member of the Commonwealth which has a total membership of 53 countries and is supported by a network of more than 80 intergovernmental, civil societies, cultural and professional organisations that together form the Commonwealth family.

There is a favourable business and investment climate in the country, including being ranked among the top-10 best African countries for business out of the 54 nations on the Continent by the world-acclaimed finance and investments news outlet, Forbes report for 2015.

Zambia is ranked among the fastest-growing economies in the world in the last 10 years. The country’s ranking by Forbes is also augmented by the Milken Institute in the 50 per cent globally on the Investment Opportunity Index. Peace and security are assured as the country ranks highly in the community of nations on the peace index.

Strengths in Zambia favour include abundant natural resources and abundant, cheap manpower, political stability and one of the most liberalised economies that guarantee foreign investment is safe and no controls on foreign exchange earnings.

A diverse portfolio of financial, legal and insurance services of international standards makes Zambia an ideal place to do business. The country has also signed double-taxation agreements with some European, African and Asian countries to the benefit of market players.

Zambia’s main export is copper but the country has put up measures to diversify to grow its economy further looking at the recent challenges in the copper prices and other industry dynamics.

Investment opportunities abound in many sectors in Zambia but the priority investment Sectors as directed by Government and mandated to be carried out by Zambia Development Agency are:

• Energy sector- with emphasis on alternative and renewable sources (For too long, Zambia has been dependent on Hydro-electricity and this has caused a challenge in the recent times due to low rainfall resulting in low water levels)
• Infra-structure development (including the ambitious Link Zambia 8000) to open up the country and improve access to markets.
• Agriculture including Agro-processing for value addition of crops
• Tourism- including revamping of infrastructure
• Multi-facility Economic Zones
• The Country has a liberalised trade regime and subscribes to International trading rules and is a member of the World Trade Organisation
• Markets for Zambian goods extend to the COMESA, SADC and the rest of the Southern African region as well as AGOA and bilateral arrangements with countries and markets overseas.

(The 8^TH National Development Plan (8NDP), Diaspora policy, the India-Zambia Double Taxation Agreement, and the ZDA Act 2006 are all attached).

WHY INVEST IN ZAMBIA?

Investment Guarantees and Security

• Investment guarantees and protection against state nationalization through the Certificate of Registration for your investment under the ZDA Act 2006
• Guarantees through Zambia’s participation in the World Bank Group’s Multilateral Investment Guarantee Agency
• Member of the International Convention on the Settlement of Investment Disputes.

Attractive Investment Incentives

• A corporate tax rate of 0% for 5 years following your investments first profitable year
• Taxation on only 50% of profits in year 6 through year 8 following the first profitable year, and only on 75% for years 9 and 10
• 5-year exemption on dividend taxes following the year of first declaration
• 5-year customs duties exemption on imported machinery and equipment
• Improvement allowance of 100% Capital Expenditure on improvements or upgrading of infrastructure.
• Progressive Banking, Legal, and Insurance Services of International Standards.
• Numerous domestic branches of international banks including Barclays, Standard Chartered, CitiBank, and Bank of China
• A well-established English Common Law and Customary Law system with licensed international law firms
• A strong and growing insurance sector for both life and non-life insurance products
• Listing through the Lusaka Stock Exchange established in 1993 and a member of African Stock Exchange Association.

Abundant natural resources

• Extensive mineral resources with at least two billion tons of minerals just within the Copperbelt region alone.
• 752,000 square kilometers of land, of which 58% is arable land.
• Victoria Falls, a UNESCO world heritage site, in addition to 22.4 million hectares of national parks and game management areas.
• Access to Regional, Wider Africa, EU and U.S Markets
• A member state of the Southern African Development Community (SADC)
• Borders with 8 SADC nations; the largest of any SADC country
• A member state of the Common Market for Eastern and Southern Africa (COMESA)
• A country under the Africa Growth and Opportunity Act (AGOA) of the United States allowing for quota preference and duty-free entry to the US market
• A country under the Everything But Arms Initiative allowing for duty-free and quota-free exports to the EU
• Member of the World Trade Organization (WTO) since 1995.