Zambia

On 24 October 1964, the British colony of Northern Rhodesian became the independent state of Zambia. For the first thirty years after independence, the government under the leadership of Dr. Kenneth Kaunda, the leader of the United National Independence Party and the first president of Zambia, remained relatively closed to foreign investment as many major industries were nationalized.

However, following the establishment of multi-party democracy, and particularly in the last several years, Zambia has become increasingly open to foreign investment in a variety of sectors. The 2006 Zambia Development Agency Act is a key indicator of this commitment to investment.

Zambia in 2012 is a country of approximately 13 million people in an area of 752,614 square kilometers. It is a landlocked country bordered by Zimbabwe, Mozambique, Malawi, Tanzania, the Democratic Republic of Congo, Angola, Botswana, and Namibia. While a number of different languages are spoken throughout the country, English is the primary language of government and business, making communication easier with the international community.

The Zambian political situation remains stable and infrastructure is improving as the economy further develops. Roads, railways, and airports are being vastly improved, particularly in areas of economic significance like the Copperbelt region, and Zambia is a net exporter of electricity. Cell phones can be used in much of the country, and Internet services have become a competitive market that ensures future upgrades to Zambia’s connections with the outside world. There is no exchange control and while Zambia is labeled in the international community as a “slow to pay country,” banks are reliable and increasingly efficient. All of this growth in infrastructure can be attributed to Zambia’s growing economy.

Potential markets are not just limited to Zambia, however, but rather then entire region through its participation in SADC Trade Protocol and the USA via the Africa Growth and Opportunity Act. Both of these agreements offer preferential tariff arrangements and growing markets.

Opportunities abound in manufacturing, agriculture, mining, tourism, and energy, among others. Many investment projects are eligible for incentives under the Zambia Development Agency Act, in addition to the potential for maximum profit.

FDI in Figures

Foreign investments into Zambia have been constantly increasing in recent years, due to the liberalization of the country’s economy in the 1990s and its expansion. After having reached a record level in 2007, FDI flows have decreased due to the global economic slowdown, but they still remain higher than their level in 2006.

Zambia is a peaceful and democratic country, which has an enormous economic potential due to the richness of its natural resources. In addition, the government offers incentive measures to foreign investors such as freedom to transfer funds and other tax advantages. Nevertheless, corruption and weak infrastructures can be a hindrance to investments.

The mining sector attracts most of the FDI. South Africa, the United Kingdom and Zimbabwe are the main investor countries.

Opportunities

The rising price of minerals, particularly copper, has ensured that the Mining Industry in Zambia is booming. However, it is not just mining companies who are finding Zambia profitable. Adjacent industries such as construction and transport services have also benefited from a strong mining industry, and are in turn popular areas for investments.

Our specialisations at Invest in Zambia include the following sectors, with a particular emphasis on property development. Whether you are looking at a condominium complex in Lusaka or a game farm in South Luangwa, real estate in Africa is guaranteed to only rise in value. We have extensive experience and success in the following sectors:

  • Property Development
  • Agriculture
  • Tourism
  • Manufacturing
  • Aviation
  • Biofuels
  • Mining Support Services