Local and Foreign Investors to Benefit from Zambia’s Expanded Investment Incentives
The Zambia Development Agency has highlighted that investment incentives provided under the Investment, Trade and Business Development Act No. 18 of 2022 are accessible to both local and foreign investors who meet the prescribed criteria.
The Agency stated that the revised framework is designed to promote a competitive and inclusive investment climate while strengthening local participation and continuing to attract foreign direct investment.
To empower Zambian-owned businesses, the minimum investment threshold for wholly local investors operating in priority sectors has been reduced from USD 500,000 to USD 50,000. The move is intended to remove entry barriers and enhance access to incentives that support industrialisation, business growth, and job creation.
In contrast, the threshold for foreign investors to access the same incentives has been increased from USD 500,000 to USD 1 million. The policy also promotes joint ventures, with varying thresholds based on local shareholding. Citizen-owned companies require USD 100,000, citizen empowered companies require USD 150,000, while citizen influenced companies require USD 500,000.
The incentives available include customs duty exemptions on machinery and equipment for five years, accelerated depreciation on industrial assets, and VAT deferment on selected equipment.
Additional benefits apply within Multi Facility Economic Zones and industrial parks, including zero tax on export profits for ten years, reduced tax rates in subsequent years, and zero tax on dividends from export earnings.
Sector-specific incentives are also available. In the energy sector, investors benefit from customs duty exemptions on infrastructure equipment and VAT claims prior to operations. In mining, incentives include loss carry forward provisions for up to ten years, capital allowances, zero withholding tax on dividends, and VAT relief on exports.
The ZDA further offers non fiscal support such as facilitation of investor permits, assistance with employment permits for expatriates, coordination with government institutions, and aftercare services to resolve operational challenges.
Albert Halwampa, Director General of the Agency, emphasised that access to incentives is based on project viability, sector alignment, and compliance with national regulations.
He noted that Zambia’s investment environment is anchored on inclusivity and competitiveness, encouraging both local and foreign investors to take advantage of the opportunities available.
The Agency reiterated its commitment to fostering sustainable investment, supporting local enterprise growth, and attracting high quality foreign investment that contributes to national development.
Separately, the ZDA also announced the signing of a landmark Memorandum of Understanding with Imbono to unlock multi sector investment opportunities across the country.
