REASONS TO INVEST IN ZAMBIA
Zambia is a multi-party democracy and provides a market-oriented liberalized economic environment in a strife-free, multicultural society. The Zambian Government welcomes investors across sectors and the laws relating to investment have provided for incentives aimed specifically at increased levels of investment and international trade, as well as increased domestic economic growth.
The central location, coupled with a combination of the following strengths, make Zambia a model investment destination:
Stable Political System
One of the most stable political systems in Africa:
- Completion of Zambia’s 6th peaceful political transition in September 2011.
- 50 years of peaceful democracy and political elections
Positive and Investor Friendly Environment,
Over 10 years of steady GDP growth
- Direct support by an Investment Promotion Officer (IPO) for your investment registration process, and assistance with processes for all other licenses and permissions for your business
- A Private Sector Development and Reform Program (PSDRP) continually streamlining licensing and administrative processes for the private sector
Investment Guarantees and Security,
Investment guarantees and protection against state nationalisation 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.
Access to Markets
- A member state of the Southern African Development Community (SADC)
- Borders with 8 SADC nations; the largest number of bordering countries than any of the SADC countries
- 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 Organisation (WTO) since 1995
Thriving Private Sector
- Continuing of liberal market- led economic policies aimed at facilitating the private sector
- Continuing privatisation of formerly government owned companies with 264 of 288 state owned enterprises having been privatised as of the end of 2011
- Continuing government support and promotion of private sector through all political transitions.
No Exchange Controls
- No foreign exchange controls since their abolishment in 1994
- Free floating currency rates and market set interest rates
- No restrictions on the repatriation of interest, profit, dividends, management fees, technical fees, and/or royalties
Good place to live and work
- One of Africa’s safest nations with a strong rule of law
- Numerous modern shopping centers providing access to a wide range of international consumer goods and entertainment
- A multitude of international schools covering a variety of foreign educational systems and certifications
- Easy access to the natural beauty of Zambia through an abundance of safari reserves and Zambia’s landmark Victoria Falls
Fiscal 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
