FREQUENTLY ASKED QUESTIONS (FAQs)

• 1. What is the procedure for investing in Zambia?
• Anyone wishing to apply for an investment licence must proceed to the Zambia Development Agency in Lusaka to submit the following documents:
• - Completed formal application form from the Zambia Development Agency;
• - Certified copy of certificate of Incorporation/Registration;
• - Certified copy of certificate of share capital;
• - Certified copy of a certificate of minimum share capital;
• - Certified copy of an official list of shareholders and/or directors;
• - Business plan or and feasibility study;
• - Verifiable evidence of project finance;
• - Brief resumes/CVs for shareholders and/or directors;
• - Non-refundable application processing fee of K1,280,000 (approx. £193 or U$ 377);
• - Licence fee of K7, 670,000 (approx. £1,200 or US$ 2,255, payable only upon collection of licence);
• - Any promoter seeking approval to establish an enterprise, under the Zambia Development Agency (ZDA) Act No. 11 of 2006, should include in their proposal, a clear and concise statement on how the enterprise, if approved is likely to contribute to the country’s economic growth and development.
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Company registration is carried out by the Patents and Company registration office (PACRO) in Lusaka. Completed application forms are submitted to Registrar of Companies, PO BOX 32020, Lusaka, Mwayi House, Haile Selassie Avenue, Longacres, Lusaka. Information on the fee structure and forms is obtainable from the website www.pacro.org.zm.
 

• 2. Why invest in Zambia?
• There are several reasons to invest in Zambia, amongst them being:
• - Political stability
• - Macroeconomic stability
• - Macroeconomic stability
• - Rapidly growing financial services and banking sector
• - A wide variety of investment opportunities in every sector
• - Duty free access to regional, continental and international trade markets
• - Good investment climate- high return on investments (between 40 -70 percent)
• - 100 percent repatriation of profits
• - Rapidly growing private sector
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• 3. What other incentives are there for one to invest in Zambia?
• Investments valued at a minimum of US$500,000 (approx. £252,400) attract fiscal and non-fiscal incentives:
• Fiscal incentives:
• - Company tax is charged on only 50 percent of profits earned in the first five years of profitability
• - Dividends are exempted from tax for 5 years from the first year of declaration
• - Zero customs duty for 5 years on machinery and equipment
• - 100 percent capital allowances on infrastructure upgrade and improvements
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• Non Fiscal Incentives:
• - Free facilitation for application of immigration permits, secondary licenses, land acquisitions and utilities
• - Investment Guarantees and protection from nationalisation
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• 4. What investment opportunities exist?
• New investments in any area are welcome. The Zambia Development Agency currently facilitates joint ventures between local and foreign investors.
  Various Greenfield projects require strategic partnerships and joint ventures in:
• a) Agriculture - commercial farming
• b) Mining-exploration and smelting where applicable (gold, copper, cobalt, uranium, zinc, nickel, diamonds and emeralds)
• c) Manufacturing- food processing, base metals, minerals and marble processing, cotton ginery etc
• d) Construction-ICT, malls, hotels, housing projects, road and rail networks
• e) Energy- Hydroelectric power generation, bio-fuel production (sugar and sorghum)
• f) Tourism-Kariba Lake Side Golf Estate and Wildlife Sanctuary
• g) Health - Medical Centre/Hospital, Drug Manufacturing
• h) Financial services (Trade Finance, MSME finance, Investment Banking, Commercial Banking, Fund Management, Venture Capital Funds, Hedge Funds, Export Credit Companies etc)
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• 5. How long does it take to obtain an Investment Licence?
• Written notification regarding the approval of the application will be given within 14 working days of submission of your application. If the investor is not content with the outcome, an appeal for reconsideration can be made within two weeks of receiving the notification from the ZDA.
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• 6. What permit will I get as an investor?
• A prospective investment worth US$250,000 (approx. £ 126,300) as a minimum and whose project employs a minimum of 250 people, in technical and managerial positions, is entitled to a self employment permit or can apply for a residence permit. The ZDA will assist the investor to obtain work permits for up to 5 expatriate employees.
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• 7. How long is the investment licence valid for?
• A licence, permit or certificate of registration is valid for 10 years from the date of issue. Renewals can be obtained before the investment licence expires for another 10 years.
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• 8. Import and export tariff Permits?
• Gemstones and minerals require a permit and can be obtained from the Ministry of Mines and Minerals Development. Permits for livestock and agricultural goods can be obtained from the Ministry of Agriculture and Cooperatives
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• 9. What do I have to do to buy land?
• Officials at the ZDA, through the Ministry of Lands, will help an investor identify and apply for a suitable piece of arable land for investment. Land is obtained on a 99 year lease as a maximum. See: www.ministryoflands.gov.zm
•  Useful Links:
• www.times.co.uk
• www.bbc.co.uk
• www.daily-mail.co.zm
• www.postzambia.com
• www.zamnet.zm
• www.zda.org.zm
• www.zra.org.zm