The reasons to invest to Zambia
The government of Zambia willingly cooperates with investors to increase a level of the international trade relations with other countries and economic growth within the country.
The country is situated in the central part of continent and borders with 8 countries that makes it an ideal center for commerce despite absence of an excess to the sea.
- Huge quantity of natural resources
- Highly skilled labourers
- Political stability during more than 50 years
- Absence of the control over a price level, interest rates, and rates of exchange
- Free repatriation of debts repayment
- 100 % repatriation of net profit
- Guarantee of security and full compensation to foreign investors
- Duty-free access to the markets of Africa and the USA (SADC, COMESA/FTA and AGOA (Africa Growth Opportunity Act))
- Banking, financial, legal, and insurance services of the international standards
- Stock exchange
- Agreements of the double taxation with many European, North American, African, and Asian countries
- The favorable environment for work and residing: a subtropical climate, great stocks of water, friendly English-speaking population with a high level of literacy. In Zambia there are many educational establishments, including universities. High percentage of population is religious people. Zambians lead an active way of life spending time outdoors – in the country there are many natural reserves, game parks, rivers, lakes, and falls
- The prospering private sector – the government of Zambia encourages progress of enterprise culture inside the country
Other possibilities for commerce and investments:
In Zambia the system of private and public healthcare which provides a wide range of medical services is well-developed. The healthcare is the priority sector generously financed by the country.
In the most complex medical cases, patients are sent for «Flying doctor» program treatment in the Republic of South Africa, which covers the remote areas and allows providing transportation and urgent help. Creation of special hospitals for such cases is an excellent but still not investigated possibility for favourable investment.
The government of Zambia actively pursues a policy of stimulation economic growth in sector of manufacturing industry, with an accent on food and textile production. The potential of growth in other branches also is huge. Assistance to the industrial enterprises in nonconventional sectors receives special support.
The government expands industrial base of the country due to decrease in expenses for business within various initiatives. Now the government encourages creation of multi-functional economic zones (MFEZ) by granting tax benefits, maintenance of a qualitative infrastructure, and the favorable legal environment for developers of these zones.
The government of Zambia has started a process of reconstruction of a highway system which covers 38 763 km, 6173 km of which are asphalted roads, 8592 km are gravel roads. Other 23998 km of roads are not classified. Five and ten years' programs on investment of the road sector, estimated approximately of 411 900 000 US dollars and 860 300 000 US dollars respectively, still attract an interest of the multilateral and bilateral organizations, as well as at a private sector.
The railway network remains a dominating type of goods transportation (83,4 %) of local and international routes. However, the infrastructure requires urgent reconstruction.
One of the main railways, connecting Zambia and Tanzania, is in joint ownership of Zambia and Tanzania governments and is managed by Tanzania - Zambia Railway Administration (TAZARA). It is a design stage for The Chipata-Mchinji Railway which will pass through Zambia, Malawi, and Mozambique.
In Zambia there are more than 130 air stations, a third of which are state ones, and the others belong to the private companies. The international airports of Lusaka and Livingstone are the main airports of Zambia, connecting the country with the rest of world. There are also small airports: Ndola – in Copperbelt, and Mfuwe – in Luangwa National Park.
Priority sectors for commerce and investment in Zambia are:
- Heavy industry
- Information and communication technologies
- Infrastructure development
The history of a mining industry in Zambia covers more than ninety years. In the end of 60s the country was the third manufacturer of copper in the world according to its size, after the USA and the former Soviet Union region. This branch has been in the center of Zambia economy and continues to play a key role in social and economic progress of the country.
In Zambia there is a huge quantity of deposits of minerals. The country has 6 % of copper world recourses. Copper and cobalt are main resources. The profit of their sale accounts for 70 % of all incomes of Zambia export. There are also possibilities for use of other minerals, first of all gold and jewels (emerald, aquamarine, topaz, opal, agate, and amethyst). Zambia produces more than 20 % of emeralds in the world.
It is possible to fully open the potential of these and other known deposits of minerals by creating new investigation possibilities.
Zambia’s energy sources include; electricity, petroleum, coal, biomass, and renewable energy. It is only petroleum which is wholly imported in the country, while the country is basically self-sufficient in all the other energy resources, as it has substantial unexploited reserves of these forms of energy.
The country’s economy has been growing at an average of 5 percent per annum over the past 10 years and demand for energy has also been rising. The demand for the most important energy source in the country - electricity has been growing at an average of about 3 percent per annum mainly due to the increased economic activity in the country especially in the agriculture, manufacturing and mining sectors.
Furthermore the country’s growing economy has also lead to an increase in the demand for the other forms of energy such as petroleum and coal, as these are key factors of production and operations in most economic sectors. The demand for renewable energies has also seen significant growth in the recent years as the market explores alternative sources of energy, with renewable energies proving to be a viable alternative.
With its vast water resources and coal reserves, Zambia offers abundant investment opportunities for hydroelectric power generation, supply and distribution. The country has well over 1,750 MW of hydroelectric generating capacity. Proven coal reserves exceed 30 million tonnes and satisfy 9% of energy demand. The sector is regulated by the Energy Regulations Board, a statutory body established by an Act of Parliament. Hydro-electricity is mainly supplied and distributed by the Zambia Electricity Supply Corporation (ZESCO) – a statutory body whose operations were commercialized in 2006.
Zambia’s tourism sector is one of the country’s growth potential areas. It has been given the non-traditional export status and is receiving a lot of support from the Government by way of infrastructure development, promotion of increased private sector participation, as well as attractive tax incentives for all investments in the sector.
The vast potential in the tourism sector in Zambia, with its natural beauty (including the Victoria Falls, which is one of the most renowned beautiful transcendental Seven Natural Wonders of the World) and the wealth of wildlife have yet to be fully exploited. Zambia has 19 national parks and 34 game management areas with a total of 65,000 km2 set aside for wildlife conservation.
The main constraints facing the tourism industry include relatively underdeveloped infrastructure as well as inadequate supply of competitive accommodation. This is one of the areas that offer great potential to investors. The tourism industry has grown over the past 3 years, contributing an average of 2.9 percent to GDP. Increasing interest from foreign investors is evident with the establishment of hotels in the major tourist town of Livingstone and the city of Lusaka.