Overview
As the world looks to Africa for new resources, Zambia has become a new frontier for trade and investments. The country is strategically located in southern central Africa and is surrounded by 8 countries with a total area of 752,614 square kilometres and a population of 12.1 million people.

As an economic hub for the southern African sub-continent, Zambia’s economic development benefits from regional integration through two major markets, namely, the Southern African Development Community (SADC) that has a population of 247 million people and a combined GDP of US$431 billion and the Common Market for Eastern and Southern Africa (COMESA) with an estimated population of 400 million and a combined GDP of US$360 billion. It is therefore strategically positioned to provide prospective businesses and investors access to two large regional markets.

Zambia has strong economic ties with the European Union through the Cotonou Agreement and the Everything But Arms Initiative. It also has access to the United States of America under the American Growth and Opportunities Act (AGOA). Additionally, efforts are underway by the Zambian Government to implement similar market access initiatives with Canada, China, Japan, Malaysia and other member states in the Association of South East Asian Nations (ASEAN).

The country’s long term national economic agenda envisages that Zambia will become a prosperous middle income country by 2030. The Vision 2030 document embodies socio-economic justice underpinned by gender responsive sustainable development, democracy and public private partnerships to name a few. Zambia’s GDP growth forecast through to 2012 is expected to be 6.0 percent per annum, supported mainly by new developments in copper production and increased construction activities around the country.

Why Zambia?
After the economic crises of the 70s, 90s and the recent economic downturn, Zambia has successfully turned the corner. Most evident over the last 10 years is the sustained growth, improved prosperity and easier market access for local and foreign investors. During this time, economic growth oscillated between 5.0 and 6.0 percent, spurred by the expansion of the country’s mining, construction and service industries.

With good governance and a vigorous pursuit of sound macroeconomic policies, Zambia’s economy is stable and considered to be one of the most favourable in the region with structural changes relating to trade facilitation, public financial management, debt and aid management and financial sector deepening. All of which have culminated in a significant reduction in the cost of doing business. Other key strengths that make Zambia an attractive investment destination include:

• An abundance of natural resources and manpower
• Political stability since attaining its independence in 1964
• The abolition of controls on prices, interest rates, foreign exchange rates and free repatriation of debt repayments
• 100% repatriation of net profits
• Guarantees and security for investors with legislated rights to full market value compensation
• Banking, financial, legal and insurance services of international standard as well as a well-developed Stock Exchange
• Double Taxation Agreements with a number of European, North American, African and Asian countries
• The establishment of Multi Facility Economic Zones (MFEZs) for investors to benefit from tax breaks, the provision of infrastructure and a lax regulatory climate in which to operate
• The acquisition of land by foreign entities facilitated by the Zambia Development Agency

Incentives
All investment promotion and facilitation for the Government of Zambia and private entities seeking joint ventures are undertaken by the Zambia Development Agency (ZDA). The ZDA exists to assist foreign investors to set up their business operations as well as acquiring primary and secondary licences. Under the ZDA Act of 2006, investors benefit from a wide range of incentives such as allowances, exemptions and concessions for prospective investors, however:

1. Any investments valued at not less than US$10 million are entitled to negotiations with the Government for other incentives in addition to those they are eligible for under the Act.
2. Investments of at least US$500,000 in Multi Facility Economic Zones (MFEZ) or in a priority sector are entitled to general incentives as well as a zero percent corporate tax on profits for 5 years from the first year profits were declared.

Investment Opportunities
The Government is committed to diversifying the economy away from the mining sector while increasing the number of Public Private Partnerships (PPPs), improving the country’s infrastructure and public sector delivery. The PPP Act was enforced in August 2009 under which the Government also encourages and accepts unsolicited bids from investors in any area of investment in all aspects of the economy. In addition, the Government seeks strategic partners in ICT, telecommunications, road and rail, power generation, tourism, waste management and water supply projects. Some key projects earmarked for development as PPPs are:

1. Lusaka Multi Facility Economic Zone (LsMFEZ)
2. Zambia International Trade Fair
3. Livingstone Convention Centre (Tourism and Business facilitation)
4. Kasaba Bay Resort (Tourism)
5. Nansanga Farm Block (Commercialised Farming)
6. Cotton Cluster
7. Lusaka International Airport and Air-cargo Hubs
8. Development of Railway projects

The Zambian Government is aggressively marketing these projects through its Embassies and Missions abroad. As such, in April 2009, the High Commission of the Republic of Zambia was opened on a residential basis in efforts to attract investments and market business opportunities to member states in the ASEAN. Organisations such as The Malaysia South-South Association (MASSA), the ASEAN Retail Chains Federation (ARFF), Chambers of Commerce and Industry and similar establishments in the region are encouraged to contact the High Commission for detailed information on business opportunities and investments in projects earmarked for strategic partnerships with the Zambian Government.

For more information, please contact:

The High Commission of the Republic of Zambia
Suite C, 5th Floor Menara MBF, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.
Tel : +603 2145 3619 Fax : +603 2145 3619
The Economics Department:
1. Mr. Humphrey Chibanda, Counsellor at humphrey.chibanda@zhckl.com.my or
2. Ms. Nyeji Chilembo, First Secretary Economics at nyeji.chilembo@zhckl.com.my

The Zambia Development Agency
PO BOX 30819, Lusaka.
Tel : +260 211 220177 / 223859 Fax : +260 211 225270
Mr. Noah Ndumingu, Senior Investment Promotion Officer at nndumingu@zda.org.zm