One of the
3 Biggest falls in the world,
"Victoria Falls"



Energy Sector  

Investment Opportunities

Electricity contributes to the export earnings of Zambia with demand growing from neighbouring countries.  The Zambian Power system is interconnected at a high voltage to the North of Botswana and Namibia.  These countries form potentially large export markets.

Potential opportunities identified in this sector are Kafue Gorge Lower HydroElectric Project, Itezhi-tezhi HydroElectric Project, Zambia-Tanzania Interconnector and Zambia-Namibia interconnector.

Exploration potential for hydrocarbons (oil and gas) is one area that has not been tapped fully—hydrocarbon source rocks are proven and are preserved in all basinal areas of Zambia.  Government welcomes active participation from prospective investors with modern technological expertise.  

Energy Incentives

The fiscal incentives have been devised to increase electricity generation and transmission capacity in Zambia to provide for a competitive environment comparable with other developing countries seeking private power investment. 

The following fiscal incentives may be allowed:

- Private power generation and transmission companies may be exempt from corporate income tax on incomes earned from sale of or transportation of electricity for a period of 10 years from the commercial operations date.
- The companies are allowed to import all types of plant and equipment for generation, transmission and distribution without payment of customs duties, VAT and other surcharges.
- Power generation and transmission to be declared an industry and the companies to be eligible for all other concessions available to industrial projects.
- Orders received by local engineering and manufacturing companies from private power companies will be treated as an export for refinance as may be available under the rules for export.
- Although the government encourages participation of local investors in the power sector, it is not mandatory and foreign companies/investors are free to set up projects without local partners.
- Withholding tax on dividends on shares of a company shall be payable to shareholders of the private power companies from any withholding tax in excess of 7.5%.



Agriculture Sector 

Agriculture Facts on Zambia
Area:  752,614 km2
Mean Altitde:  1200m above sea level
Rivers:  Zambezi, Kafue, Luangwa, Chambeshi and Luapula rivers
Lakes:  Tanganyika, Bangweulu, Mweru-wa-Ntipa, Kariba
Climate:  Tropical with clearly separated dry and raily season influenced by the south to north movement of the Inter tropical Convergence Zone (ITCZ)
Average annual rainfall:  1,000mm
Land use distribution: 
Arable land    47%
Forests        9%
National parks,
Game management Areas    30%
Hills, Escarpments,
Swamps    12%
Urban Development    2%
Vegetation:  Savannah type and other woodlands type mainly found on plateau.
Energy:  In abundance: 4 major hydro power stations and various smaller power stations.

Investment Opportunities

Government is putting emphasis on agriculture to be the main stay of the economy, diversify away from dependency on copper and help alleviate poverty. Opportunities exist in production of:

- Food crops such as maize, beans, potatoes, wheat and rice.
- Cash crops such as coffee, tea, sugarcane, sisal, paprika, cotton, malt and barley.

- Game Ranching

Horticulture:  Opportunities exist for cut flowers, fresh beans, mushrooms and citric fruits

Agriculture support:  Construction of dams and boreholes, installation of irrigation systems and extension services

Agro-processing:  Import substitution for edible and other oils such as butter, margarine, sunflower, and cottonseed.

Poultry Products:  Hatcheries for the production of chicken for both domestic and regional consumption are under exploited.

Fisheries:  Zambia’s abundant fresh water and rivers provide vast fishing and fish farming potential.

Leather and leather goods:  Production of finished leather.

Livestock:  Non conventional livestock farming e.g. crocodile farming represent an exciting new opportunity.

Agriculture Incentives
Income received from farming—15%

Income Tax Allowances
∙Wear and tear allowance of 50% per year on machinery used for farming;
∙Capital expenditure allowance of 20% per year for the first five years on farming improvements;

∙Capital expenditure allowance on the growing of coffee, tea, bananas, citrus fruits or similar plants qualife for a development allowance of 10% per year up to the second year of production;

∙Farm work allowance of 100% for expenditure on farm land such as stumping, clearing prevention of soil erosion, boreholes, wells water conservation and aerial or geophysical survey;

Income Tax on Dividend from Farming
Income received by way of dividend declared from farming shall be exempt from tax for the first 5 years of operations.

Customs Duty
∙Customs duty exemption on most capital machinery and equipment for agriculture;
Reduced duty on/duty free imports

Reduced duty on/duty free imports of certain raw materials.

Import VAT Deferement
Import VAT deferement on eligible plant/machinery and raw materials.



Mining Sector

Investment Opportunities

Zambia’s amazingly wide spectrum of mineral resources spans a range of metals, gemstones, a variety of industrial minerals and potential energy resources—uranium, coal and hydrocarbons.  Ranging in size from world-class operating mines to small prospects, the multiplicity and variety of resources demonstrate clearly the opportunities for further exploration and exploitation.

-Copper and Cobalt
Apart from the currently producing mines of the Copperbelt large portions of Zambia Constitute attractive exploration targets.

-Lead and Zinc
As with copper, a number of known deposits can be found, the important ones being at Chipirinyuma near Nyimba with 2Mt at 4% Zinc, and the Lusaka-Mumbwa-Kabwe triangle.

-Nickel and Platinum Group Elements
A small but significant sulphide deposit occurs in the east and south of Lusaka.  Minor platinum group elements are produced as a by-product of copper-refining.

-Tin and Tantalum
Recorded tin areas include the Central and Eastern part of the country in Serenje, Mumbwa and Chama.

Substantial resources of iron have been identified in central and western Zambia.  Total resources of more than 900Mt with an iron content greater than 50% have been provisionally estimated, with some individual deposits up to 200Mt in size.

Only small quantities of gold have been mined and the interest is growing.  A total of 2000kg of gold has been produced from 20 deposits since 1906 and does not include gold produced as a by product of the copper recovery.

Alluvial diamonds have been reported throughout much of northern, north-eastern and western Zambia and in many places are accompanied by indicator minerals.

Zambia produced about 20% of the world’s emeralds and they are much sought after due to their deep green colour.  The gemstones are recovered exclusively from the Ndole Rural area of the southern Copperbelt.

-Industrial Minerals
Zambia boasts of a wide range of industrial minerals capable of underpinning the anticipated growth in the mining, manufacturing and agricultural sectors.

-Energy Minerals
Energy minerals of Zambia include coal, uranium, geothermal and possibly hydrocarbons.  Work in all these fields is in progress in the form of research, evaluation and exploitation.

Mining Incentives
The Mines and Minerals Act of 1995 offers a wide range of incentives which include:

Income Tax Allowances
Buildings for Mining enjoy an initial 10% and an annual 5% wear & tear Allowance of the cost.

Relief from Income Tax
Any investment in mining, including prospecting, attracts deductions from income tax on capital expenditure and other allowable mining expenses.

Relief from Other Surcharges
A holder of a mining right is exempt from customs, excise and VAT duties in respect of all machinery and equipment (including specialized motor vehicles) required for exploration or mining activities.






Manufacturing Sector

Investment Opportunities
The raw material base largely determines the development potential of the manufacturing sector.  The processing of agricultural products has great potential because of favourable conditions for agricultural production itself.  In addition, deposits of base metals, a variety of industrial, precious and semi-precious minerals and metals exist in many parts of the country.

Agriculture-based industries such as sugar, food processing, cotton spinning and weaving, etc. are good examples favoured also by domestic demand factors.  Other industries with good potential are cement, copper products, wood products, gemstone cutting & polishing, leather etc.

Engineering, Textiles, Wood & Wood Products, Building Materials, Processed Foods, Chemicals, Leather and Leather Products and Handicrafts also offer potential opportunities.

Textiles and Apparels
Textile, Garment and apparel manufacturing has a very high potential in Zambia.  Investment opportunities exist under manufacturing under bond scheme (MUBS) and in the export processing zones for production of products such as yarn and garments.  Zambia qualifies for the African Growth Opportunity Act (AGOA) and Zambian textile already enters the American market.

Wood processing
Currently Zambia exports raw timber which would otherwise be processed into finished wood products.  In this regard, there is potential to set up wood processing plants for manufacture of consumer and industrial products.  The best natural timber species are found in Zambia.

Metal and Engineering works
Zambia has a variety of minerals which are exported as raw materials. 
At present there is very little value addition being made to these mineral exports.  Hence there are investment opportunities in processing copper and other minerals into intermediate and finished goods.
Zambia imports all major spare parts required for machinery.  Investment opportunities exist to see up engineering works that can manufacture the much needed spare parts for various industrial machinery.

Vehicle Parts and Assembly
Zambia’s motor industry imports almost all motor vehicles and all automobile spares.  Demand is every increasing as new and second hand vehicles flood the country.  Opportunities exist in the assembly and manufacture of motor vehicles and spares.  Seeking joint ventures could possibly be the best way of accomplishing this.

Manufacturing Incentives
Income Tax Allowance
∙Buildings for manufacturing enjoy an initial 10% and an annual 5% wear & tear allowance of the cost.
∙Machinery for manufacturing qualify for wear & tear allowance of 50% per annum for the first two years.

Customs Duty
∙Customs duty exemption on most capital machinery and equipment for manufacturing.
∙Reduced duty on, or duty free imports of certain raw materials.   

Import VAT Deferement
Import VAT deferement on eligible plant/machinery and raw materials.



Tourism Sector 

Investment Opportunities

Potential of Zambia as a “one-stop” destination offers excellent prospects for advancement of this highly under-developed sector.  With 19 National Parks, 23 Game Management Areas, the largest Water Fall in the world, and 23 million hectares devoted to the conservation of spectacular variety of animals, the scope for an integrated quality tourism related investment is very attractive.

Opportunities to promote adventure holidays—white-water rafting, canoeing, rock-climbing, hang-gliding, fishing, bungi-jumping at Victoria Falls including its unique walking safaris offer excellent tourism potential.

Accommodation and conference amenities
The shortfall of quality vacation accommodation of all types presents the largest single investment opportunity, as well as development of low-cost lodges for local tourists.

Opportunities arising from water reserves
The great expanses of open water provide many opportunities for development.  These include development of marinas and sailing schools, as well as the establishment of activities such as boat charter services, cruises, sailing, water-skiing, canoeing, and whitewater rafting.

Organised tour excursions
There is great scope for organised day trips and extended tours or safaris to sites of scenic, cultural and historic interest.

Adventure enterprises
National parks are open as locations for such enterprises, with opportunities including managed safaris, as well as game fishing, photographic or hunting safaris in designated areas, and various adventure activities such as bungi jumping, rockclimbing, hang-gliding and orienteering.

Outdoor sports development
Zambia’s climate is ideal for the development of tennis and equestrian facilities, as well as for holiday packages based on sports.

Cultural heritage exploration and tourism

The variety of traditional cultures and festivals is the least developed of the country’s fascinating tourist assets.

Infrastructure and transport services
Heavy investment is required especially for tourist access roads and aerodromes. Unmet demand exists for transport services such as helicopters or small aircraft, water transport (including vessels), and car hire operations.

Tourism Incentives
The Investment Act of 1993 (amended 1st April 1996) offers a wide range of incentives which include:

Income Tax Allowances
∙Hotels enjoy an initial 10% and an annual 5% wear & tear allowance of the cost.
∙Machinery for tourism qualify for wear & tear allowance of 50% per annum for the first two years, and thereafter.

Customs Duty
∙Reduced duty on/duty free imports of certain raw materials.
∙Customs Duty on intermediate Goods 15% and Finished Goods 25%.

Institutions for Investment, Industry and Trade Support
The Zambia Privatisation Agency (ZPA), formed in 1992, is an autonomous Agency of the Government of Zambia. The function of the Agency is to plan, implement and control the privatisation of State-owned enterprises in Zambia.
The Zambia Investment Centre was established under the Investment Act of 1991 as part of the government strategy for economic reform. The Centre is an autonomous institution that promotes both local and foreign direct investment, facilitates the investment process and monitors the implementation of projects. It also issues the formal Investment Certificates that serve as the official recognition of one's investor status in the country.
The Zambia Association of Chambers of Commerce and Industry (ZACCI), the Zambia Association of Manufacturers (ZAM) and the Zambia National Farmers Union (ZNFU) officially represent the business community.


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