Attractive Investment opportunities exist in the hospitality (accommodation) sector in form of hotels, lodges, guesthouses and camps at all levels especially in the above tourism priority areas. Over 7,000 heritage and historical sites catalogued in the country remain unexploited and potential for tourism development. There are opportunities in tour operations and adventure activities in national parks. Investment opportunities also exist in establishing private game ranches. Water resources offer enormous investment opportunities for water related tourist activities such as white water rafting, canoeing and water skiing.
Zambia’s vast expanses of rich undeveloped land with free-flowing and easily accessible water provide extensive potential for agriculture production. This coupled with an ideal climate suitable for the production of exportable crops presents an opportunity for investment. It is estimated that only 15% of the arable land is under cultivation. Investors are invited to invest in the production of cut flowers, wheat, cotton, soybeans, tobacco and sugar; poultry; fisheries; leather and leather products; and agro-processing and ranching (livestock).
Zambia is endowed with various mineral deposits. Copper, cobalt, lead and zinc are the most developed. Zambia has about 6% of the world’s known copper reserves. Other minerals found in Zambia include: gold, nickel, iron and uranium. There are also gemstones such as emeralds, aquamarine, and amethyst. Given the variety of Zambia’s mineral resources, there are immense investment opportunities in the mining sector. These opportunities lie in exploration for new mineral deposits; gemstone cutting and polishing; establishment of new mines; and reclaiming, copper from slug tailing dumps.
The manufacturing sector equally offers tremendous investment opportunities in agro-processing of tomatoes, cheese, fruits and other farm produce. Opportunities also exist in the creation of textiles and motor vehicles, motor cycles and bicycles assembly. Leather processing, wood processing, fish processing are yet other investment opportunities. Cement production also presents excellent investment given the regional deficit of the commodity.
Zambia’s energy sector is endowed with enormous energy resources which include coal, hydropower, woodlands and forests as well as other renewable energy forms such as solar and wind. Zambia has as estimated hydropower capacity of 6,000MW, of which only about 1,640 MW has so far been installed. This represents only 30% of the total capacity. Hydroelectric plants account for 92% of the total installed capacity and 99% of the total electricity generated in the country. So far there are only two important inter-connectors to Zimbabwe and the Democratic Republic of Congo (DRC) which are the most important electricity export grids.
Zambia’s economy has been rapidly growing in the past 5 years and has experienced a power deficit. As such investors are invited to invest in power generation projects. Opportunities for investment exist in electricity generation and transmission projects. In an effort to resolve the power deficit and ensure security and reliability of supply, Zambia is pursuing the development of transmission inter-connectors with neighboring countries. One such project is the Zambia-Tanzania-Kenya power inter-connector. 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 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.
Why invest in Zambia
Zambia is an attractive investment destination offering various lucrative investment opportunities in tourism, agriculture, manufacturing, energy and mining. The investment climate is characterized by a stable macroeconomic environment, stable political system, investment guarantees and security, duty free access to regional, wider Africa and USA markets and unrestricted repatriation of after-tax profits. Zambia has signed double taxation agreements with a number of European, North America, African and Asian countries. Hence investors from such countries are not liable to tax in more than one country or territory. The government offers a well-balanced package of fiscal incentives in priority areas as well as additional negotiated benefits to strategic investments.
Zambia has predictable laws and policies. Local and foreign investors are treated equally. The people are highly peaceful and friendly. The Zambian economy is a well advancing free market economy without price, exchange and interest controls. There is reduced or free import duty on certain raw materials and imports of capital machinery/equipment.
Market to Zambian Products
Zambia has a relatively large domestic market comprising a population size of about 12.2 million (2007 estimate). In the SADC region, Zambia’s major trading partner is South Africa and the Democratic Republic of Congo (Congo DRC) which accounts for about 70% of Zambia’s trade.
Further, Zambia’s central location offers trading opportunities with all the 8 surrounding countries. Huge trade opportunities also exist through agreements/membership to:
- Everything But Arms (EBA) Market Initiative to the EU;
- AGOA Market Initiative to the USA;
- Canadian Market Access Initiative;
- Chinese Market Access Initiative;
- Japanese Market Access Initiative.
P.O Box 1197, Columbia, MD 21044