The Zambia Development Agency (ZDA) was established in 2006 `under Act No. 11 of 2006 and became operational in January 2007 after the amalgamation of five statutory bodies that previously operated independently. The primary objective of the Agency is to foster economic growth and development by promoting trade and investment in Zambia through an efficient, effective and coordinated private sector led economic strategy.
Its mandate includes facilitation of the economic development of Zambia by promoting investment and competitiveness of businesses and promoting exports from the country. It has the task of working with relevant authorities to reduce the cost of doing business in the country by simplifying the process of various formalities such as licensing.
The Agency’s aspiration is derived from the Government’s long term vision of creating a prosperous middle income nation by 2030 that feeds into the Agency’s goal of contributing to the creation of wealth and one million jobs by 2020. In other words, the Zambia Development Agency is the gate way to the Zambian economy.
The business environment in Zambia is almost second to none in the sub region of Southern Africa with vast investment and trade opportunities across sectors.
In addition, Zambia has been a peaceful and democratic country for more than 50 years and has enjoyed both social and political stability as well as a healthy macroeconomic environment, with economic growth averaging around 6 percent per annum since 2003 which is another hard to beat record in the sub-region.
In terms of the business environment, Zambia has been ranked favorably by different international ranking institutions as a result of the various business reforms that the country has implemented.
Notable rankings in 2016 include the World Bank which ranked Zambia 5th in COMESA in the easy of doing business, the World Economic Forum ranked the country 11th most competitive country in Africa, the Africa Investment Index by Quantum Global Research ranked Zambia 5th most attractive economy for investments flowing into the African continent and Forbes ranked the country 9th best country among 54 African countries in doing business.
In addition to the favorable business environment, Zambia has unlimited investment opportunities in the identified priority sectors which are agriculture and agro processing sectors, tourism, manufacturing, energy and infrastructure development sectors. Other productive sectors presenting investment opportunities are mining, information communication technology and real estate development. The country also has investment opportunities in other sector sectors such as education, health, service, finance and transport.
And government through the ZDA provides fiscal and non-fiscal incentives to investors that invest in the priority sector and located in either a Multi-facility economic Zone, a rural area or an industrial park. The investment should be above the minimum threshold of US$ 500,000.
The fiscal incentives include zero percent tax on profits made by companies in the priority Sector for a period of 5 years and zero percent tax rate on dividends of companies operating in the MFEZ and in a priority sector for a period of five years from the year of first declaration of dividends.
And lastly for the fiscal incentives, there will be Zero percent import duty rate on capital equipment for five years.
The non-fiscal incentives include the Investment Promotion and Protection Agreement (IPPA) where the ZDA guarantees investments on behalf of government and offers free facilitation of permit application as well as investment licenses, land acquisition and other utilities.
Beyond the vast investment opportunities, Zambia has a vast market base for its produce which include the Southern Africa Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), the Tripartite Free Trade Area which represents an integrated market of 26 countries with a combined population of approximately 632 million people which is 57% of Africa’s population. The European Union and the American markets through the Africa Growth Opportunity Act (AGOA).
The favorable business environment, the unlimited investment opportunities, fiscal and non-fiscal incentives, the ever growing domestic and regional market and more just makes Zambia the best destination for your investment in the Africa.
I trust you will find our Honorary Consulate’s newsletter on Zambia’s investment climate very informative.
Patrick D. Chisanga
Director General
ZAMBIA DEVELOPMENT AGENCY
Its mandate includes facilitation of the economic development of Zambia by promoting investment and competitiveness of businesses and promoting exports from the country. It has the task of working with relevant authorities to reduce the cost of doing business in the country by simplifying the process of various formalities such as licensing.
The Agency’s aspiration is derived from the Government’s long term vision of creating a prosperous middle income nation by 2030 that feeds into the Agency’s goal of contributing to the creation of wealth and one million jobs by 2020. In other words, the Zambia Development Agency is the gate way to the Zambian economy.
The business environment in Zambia is almost second to none in the sub region of Southern Africa with vast investment and trade opportunities across sectors.
In addition, Zambia has been a peaceful and democratic country for more than 50 years and has enjoyed both social and political stability as well as a healthy macroeconomic environment, with economic growth averaging around 6 percent per annum since 2003 which is another hard to beat record in the sub-region.
In terms of the business environment, Zambia has been ranked favorably by different international ranking institutions as a result of the various business reforms that the country has implemented.
Notable rankings in 2016 include the World Bank which ranked Zambia 5th in COMESA in the easy of doing business, the World Economic Forum ranked the country 11th most competitive country in Africa, the Africa Investment Index by Quantum Global Research ranked Zambia 5th most attractive economy for investments flowing into the African continent and Forbes ranked the country 9th best country among 54 African countries in doing business.
In addition to the favorable business environment, Zambia has unlimited investment opportunities in the identified priority sectors which are agriculture and agro processing sectors, tourism, manufacturing, energy and infrastructure development sectors. Other productive sectors presenting investment opportunities are mining, information communication technology and real estate development. The country also has investment opportunities in other sector sectors such as education, health, service, finance and transport.
And government through the ZDA provides fiscal and non-fiscal incentives to investors that invest in the priority sector and located in either a Multi-facility economic Zone, a rural area or an industrial park. The investment should be above the minimum threshold of US$ 500,000.
The fiscal incentives include zero percent tax on profits made by companies in the priority Sector for a period of 5 years and zero percent tax rate on dividends of companies operating in the MFEZ and in a priority sector for a period of five years from the year of first declaration of dividends.
And lastly for the fiscal incentives, there will be Zero percent import duty rate on capital equipment for five years.
The non-fiscal incentives include the Investment Promotion and Protection Agreement (IPPA) where the ZDA guarantees investments on behalf of government and offers free facilitation of permit application as well as investment licenses, land acquisition and other utilities.
Beyond the vast investment opportunities, Zambia has a vast market base for its produce which include the Southern Africa Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), the Tripartite Free Trade Area which represents an integrated market of 26 countries with a combined population of approximately 632 million people which is 57% of Africa’s population. The European Union and the American markets through the Africa Growth Opportunity Act (AGOA).
The favorable business environment, the unlimited investment opportunities, fiscal and non-fiscal incentives, the ever growing domestic and regional market and more just makes Zambia the best destination for your investment in the Africa.
I trust you will find our Honorary Consulate’s newsletter on Zambia’s investment climate very informative.
Patrick D. Chisanga
Director General
ZAMBIA DEVELOPMENT AGENCY
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