Zambia offers a wide range of investment opportunities in agriculture, tourism, mining, manufacturing and energy. It is one of the best investment destinations in Africa because it has a stable political system, stable macroeconomic environment and investment protection guarantees. It has signed Investment Promotion and Protection Agreements (IPPA) with a number of countries in Europe including Italy, Africa, North America and Asian countries to ensure that all investments are adequately protected. Other agreements signed with other countries towards securing investment include, the double taxation agreement. The government, through the Zambia Development Agency offers a number of fiscal incentives in priority sectors and additional negotiated incentives to strategic investments. The government is committed to developing a private sector driven economy through implementation of policies that encourage local and foreign investment such as deregulation of prices, exchange and interest rates and unrestricted after-tax profit repatriation.
In addition to the conducive investment environment, Zambia provides investors with another added advantage of having free access to the domestic, regional and international markets. The domestic market is rapidly growing with a population of about 13.09 million (2010). Its membership to the SADC and COMESA FTAs gives all products produced in Zambia duty free access to these regional markets with about 380 million people. Further, Zambia benefits from a number of preferential trade initiatives that gives it duty free access to markets of bigger economies such as: Cotonou Agreement (EPAs) to the EU; AGOA Market Initiative to the USA; Canadian Market Access Initiative; Chinese Market Access Initiative; and Japanese Market Access Initiative.
- Zambia Development Agency
- Patents and Companies Registration Office
- Zambia Public Procurement Authority
- Zambia Revenue Authority
- Zambia Coffee Growers’ Association
- Zambia Association of Chambers of Commerce and Industry
- Zambia International Trade Fair
- Zambia National Farmers Union
- Zambia Agriculture and Commercial Show Society
- Zambia Cotton Growers Association
Investment Opportunities by Sector
Investment opportunities exist in Agriculture, Manufacturing, Tourism, Energy and Mining, amongst others. There are also a number of green field investment opportunities in Infrastructure Development, Commercial Building Construction, Transportation, Education, Media and Telecommunication and IT services.
The Agricultural sector provides many investment opportunities in its abundant arable land, only 15% of the 60 million hectares of arable land is currently under cultivation. Surface and underground water for irrigation is readily available. The climate is ideal for growing a wide variety of exportable crops as well as horticulture and floriculture. The agricultural policy aims at increasing private sector participation in production, processing and marketing of agricultural products and commodities. Specifically, there are opportunities in growing of wheat, sugar, coffee, cotton, tobacco, and maize as well as livestock (such as cattle, poultry, goats, sheep, pigs), dairy farming and fisheries.
The manufacturing sector has steadily been growing in Zambia led by the private sector. It still offers great potential for investment to produce a wide variety of high quality intermediate and final products.
The country’s tourism sector provides spectacular scenery, with one of the largest concentrations of wild life in Africa, a colourful cultural heritage and major attractions such as the Victoria Falls and Lake Kariba. It does not only offer opportunities for viewing magnificent sceneries and wild life to tourists but also enormous potential for profitable investment. Opportunities exist in game ranching, provision of high quality hotel accommodation, transport services (road, rail and air), adventure holiday packages, and water related tourist activities.
Zambia is endowed with various mineral resources including copper, cobalt, lead and zinc which are the most developed. Other minerals found in Zambia include: gold, nickel, iron and magnesium. There are also gemstones such as emeralds, amethyst, aquamarine, rubies, garnets and diamonds. The abundance of mineral resources provides great investment opportunities in the mining sector especially in the areas of exploration for new mineral deposits, gemstone cutting and polishing, establishment of new mines, and reclaiming copper from slug tailing dumps.
Construction is another growing sector in Zambia and offers a number of opportunities for investment in the following:
- construction of residential and business houses
- earth works
- bridges and drainage structures
- Irrigation infrastructure
- Water utilities infrastructure
- Road development, rehabilitation and maintenance
Cement production also presents excellent investment given the increase in construction activities in the region and the current deficit of the commodity.
Zambia has enormous energy resources which include coal, hydro-power, woodlands and forests as well as other renewable energy forms such as solar and wind. Zambia’s economy has witnessed increased economic activities which have outstripped the supply of power and creating a power deficit. This has created opportunities in generation and transmission projects. In an effort to resolve the power deficit and ensure security and reliability of supply, Zambia is inviting investors in the development of transmission inter-connectors with neighbouring countries.
Other investment opportunities in electricity transmission include Zambia-Malawi inter-connector; Zambia-DRC inter-connector; Solwezi-Kolwezi inter-connector; and upgrading of large and small existing hydro projects. Investment opportunities also exist in the exploration and production of petroleum resources; coal exploration and mining; and development of renewable energy sources which are supported by the National Energy Policy.
There are a number of areas with investment opportunities in the development and modernization of road, railway and inland waterway transport and telecommunication. Knowledge-based institutions to enhance the quality and diversity of Zambian workforce and management. Investment in environmental protection and natural resource management as well as modern sports and recreation facilities is welcome in Zambia.