Country Snapshot
Population (2019, millions)¹ | 17.86 |
Population Projections (2030, millions)¹ | 24.32 |
Economically active population in agriculture (as % of Economically active population)¹², 2019 | 64.7 |
Capital | Lusaka |
Surface Area (km²)² | 752,610 |
Weather¹¹ | In Lusaka: Hottest month, October, 18-31°C; coldest month, July, 9-23°C (average daily minimum and maximum); driest month, August, 0 mm average rainfall; wettest month, December, 231 mm average rainfall |
Languages³ | Official: English – Others: Bembe, Nyanja, Tonga, Lozi, Chewa, Nsenga, Tumbuka, Lunda (North Western), Kaonde, Lala, Lamba, Luvale, Mambwe, Namwanga, Lenje, Bisa and others |
Main Religions³ | Main: Protestant and Roman Catholic – Others: Muslim Buddhist, Hindu, Baha’i and none |
Time⁴ | Central Africa Time (CAT) +0200 UTC |
Driving Orientation⁵ | Left Side |
Internet Country Code⁶ | .zm |
Country Calling Code | +260 |
Plug, Socket and Voltage⁷ | Type C, D and G – 230V/50Hz |
Currency | Zambian Kwacha (ZMK) – 1/100 = Ngwee |
Exchange Rate (As of 17 February 2019, per USD)⁸ | 11.87 (buy rate) |
GDP at Market Prices (2018, current, billions of USD)⁹ | 26.72 |
GDP Growth (2018, annual %)⁹ | 3.39 |
Average GDP Growth (2014-2018, annual %)⁹ | 3.71 |
GDP per Capita, PPP (2018, current international $)⁹ | 4,216 |
Inflation, Consumer Prices (2018, annual %)⁹ | 7.49 |
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 9.97 |
Total Reserves in Months of Imports (2018)⁹ | 1.77 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Bank of Zambia. ⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socioeconomic Database.
Reasons to Invest in Zambia
- Zambia has vast resource endowment in terms of land, labour and water, indicating the high potential to expand and/or excel development.
- Zambia stands out as one of the prime tourism destinations in Africa offering a wealth of natural tourism assets – waterfalls, lakes and rivers holding about 40% of Southern Africa’s water, ‘wildlife protected areas’ occupying about 10% of the country’s total land area, and a tropical climate.
- Being a member of a number of regional and international groupings, make Zambia strategic both in its location and abundance in natural resource. These include the Common Market for Eastern and Southern Africa (COMESA), which is currently a customs union, and the Southern Africa Development Community (SADC) Free Trade Areas (FTA).
- Zambia is also a member of COMESA-EAC-SADC Tripartite Free Trade Area Agreement (TFTA). TFTA is an intergrated market of 26 countries with a combined population of 632 million people which is 57% of Africa’s population.
Source: Zambia Development Agency – ZDA Online Portal
Population
Population Projections (millions)
Population (2019) | 17.86 |
Population Projections (2030) | 24.32 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 44.07 |
Percentage of Population Residing in Urban Areas (2030) | 50.47 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes | 92.09 |
Youth Literacy Rate, Population 15-24 Years, Female | 91.62 |
Youth Literacy Rate, Population 15-24 Years, Male | 92.55 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
Unemployment, Total | 7.2 |
Unemployment, Female | 6.94 |
Unemployment, Male | 7.45 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+)
Labour Force Participation Rate, Total | 75.18 |
Labour Force Participation Rate, Female | 70.75 |
Labour Force Participation Rate, Male | 79.79 |
Labour Force, Total (number) | 7,183,708 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 27.15 | 21.15 | 20.95 | 25.86 | 27.72 |
GDP Growth (annual %) | 4.69 | 2.91 | 3.75 | 3.40 | 3.79 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
Indicator | 2018 | 2019 |
Agriculture | 8.40 | 8.00 |
Manufacturing | 9.00 | 9.23 |
Industry | 42.68 | 42.95 |
Services | 67.92 | 68.05 |
Construction | 11.85 | 12.28 |
Electricity, gas and water | 3.64 | 3.91 |
Mining and quarrying | 18.19 | 17.52 |
Education | 9.32 | 9.35 |
Finance, real estate and business services | 13.07 | 13.34 |
Public administration and Defense | 5.46 | 5.38 |
Health and Social Work | 1.58 | 1.60 |
Other services | 1.05 | 1.01 |
Transport, storage and communication | 8.67 | 8.86 |
Wholesale and retail trade, hotels and restaurants | 28.77 | 28.53 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 8,743,863 | 8,508,280 | 7,538,333 | 7,983,284 | 9,461,739 |
South Africa | 2,808,118 | 2,619,550 | 2,418,927 | 2,457,474 | 2,726,786 |
Congo DR | 1,337,463 | 953,320 | 988,654 | 1,012,481 | 1,393,726 |
China | 795,878 | 693,617 | 600,007 | 1,121,235 | 1,290,683 |
United Arab Emirates | 229,385 | 175,970 | 316,736 | 468,048 | 595,662 |
India | 377,616 | 366,078 | 316,681 | 246,259 | 442,583 |
Source: COMTRADE Statistics.
Export Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 8,870,290 | 7,037,729 | 6,508,418 | 8,006,790 | 9,052,165 |
Switzerland | 3,019,192 | 2,786,745 | 2,485,776 | 3,542,071 | 3,808,387 |
China | 1,363,442 | 992,686 | 1,208,581 | 1,329,585 | 1,307,810 |
Singapore | 350,098 | 550,128 | 368,776 | 493,961 | 699,742 |
Congo DR | 615,049 | 451,327 | 351,165 | 435,404 | 686,646 |
South Africa | 579,164 | 501,301 | 362,140 | 390,634 | 437,056 |
Source: COMTRADE Statistics.
Zambia’s Top Import Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 8,743,863 | 8,508,280 | 7,538,333 | 7,983,284 | 9,461,739 | |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 1,187,399 | 962,222 | 836,162 | 1,130,273 | 1,389,831 |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 1,314,665 | 1,666,738 | 1,670,863 | 1,340,717 | 1,339,757 |
26 | Ores, slag and ash | 1,307,533 | 616,920 | 701,738 | 949,660 | 1,271,425 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 726,435 | 549,163 | 434,248 | 481,016 | 803,435 |
85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 846,641 | 841,865 | 865,899 | 444,426 | 589,145 |
Source: COMTRADE Statistics.
Zambia’s Top Export Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 8,870,290 | 7,037,729 | 6,508,418 | 8,006,790 | 9,052,165 | |
74 | Copper and articles thereof | 6,594,543 | 5,193,686 | 4,555,866 | 6,158,724 | 6,807,039 |
28 | Inorganic chemicals: organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes | 267,891 | 84,032 | 64,160 | 96,209 | 200,213 |
49 | Books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans | 25,584 | 54,572 | 67,654 | 120,855 | 191,855 |
25 | Salt; sulphur; earths and stone; plastering material, lime and cement | 125,661 | 105,262 | 179,375 | 157,236 | 190,543 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 115,544 | 68,470 | 102,226 | 79,927 | 126,413 |
Source: COMTRADE Statistics.
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 662.9 | 1,107.5 | 408.4 | 548.0 | 234.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 176.7 | (72.0) | 32.2 | 696.2 | 133.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 18,855.1 | 19,866.5 | 20,435.4 | 19,134.3 | 19,368.3 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outward Stock | 1,625.0 | 1,553.0 | 1,585.2 | 2,169.9 | 2,303.3 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
South Africa, China, UK, India, Canada, United States, Botswana, Australia, Togo, and France.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Metals, Financial Services, Food and Tobacco, Communications, Business Services, Industrial Machinery, Equipment and Tools, Chemicals, Building and Construction Materials, Transportation, and Renewable energy.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Konkola Copper Mine, First Quantum Minerals, First National Bank Zambia, Ecobank Zambia, Liquid Telecom Zambia, BancABC Zambia, MTN Zambia, Pick n Pay, Shoprite, and China Nonferrous Metals Mining (CNMC).
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 85/190 |
2019 | 87/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 117/190 |
Procedures (number) | 7 |
Time (days) | 8.5 |
Cost (% of income per capita*) | 34.0 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 280
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 17/190 |
Payments (number per year) | 11 |
Time (hours per year) | 158 |
Total Tax Rate (% of profit) | 15.6 |
Profit Tax (% of profit) | 2.0 |
Labor Tax and Contributions (% of profit) | 10.4 |
Other Taxes (% of profit) | 3.1 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 155/190 |
Time to Export: Border Compliance (hours) | 120 |
Cost to Export: Border Compliance (USD) | 370 |
Time to Export: Documentary Compliance (hours) | 96 |
Cost to Export: Documentary Compliance (USD) | 200 |
Time to Import: Border Compliance (hours) | 120 |
Cost to Import: Border Compliance (USD) | 380 |
Time to Import: Documentary Compliance (hours) | 72 |
Cost to Import: Documentary Compliance (USD) | 175 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – The Zambia Development Agency (ZDA) Act of 2006.
Key guarantees in terms of investment protection include:
- Investors are given protection against state nationalization
- There are no controls on the transfer of capital in and out of Zambia and no exchange controls as well.
- Guarantees for rights of repatriation with respect to profits, debt service, fees, royalties and disinvestment proceeds.
- For dispute settlement, investors can choose between using an internal institutional arbitrage or institutional arbitration under the rules established by the ICSID
Source: United Nations Conference on Trade and Development, iGuide Zambia.
Investment Incentives
General Incentives
- Import VAT relief for VAT registered businesses on imports of eligible capital goods (i.e. VAT deferment).
- Zero rate of VAT on export of taxable products.
- Guarantee of VAT refund within 30 days of adequately supported claims.
- Relief of VAT on transfer of a business as a going concern.
- Equal treatment of services for VAT irrespective of domicile of the supplier (i.e. reverse VAT).
- Cash accounting for VAT for members of the Association of Building and Civil Engineering Contractors.
- Voluntary VAT registration for company businesses whose turnover is below ZMW 800,000 per annum subject to the conditions stated above.
- Registered businesses allowed to reclaim 20% of input VAT paid on petrol.
- Exemption of interest component of finance leases from VAT.
- VAT relief on input tax paid for purchases made by registered suppliers.
- Income from non-traditional exports is taxed at a reduced rate of 15%.
Capital allowances
- Capital expenditure deductions for mining equipment, plant, machinery and other capital expenditure will be claimed at the rate of 25% per annum. The deductions will only be available from the year that the asset is brought-into-use.
- Farm works and improvements allowance (100%) – clearing, prevention of soil erosion, farm dwellings with an original cost of no more than ZMW 10 million and other permanent works.
- Improvement allowance under ZDA Act – 100%.
- Accelerated capital allowances – 50% per annum on machinery, plant and equipment used exclusively for farming, manufacturing, and tourism or leasing.
- Plant, machinery and commercial vehicles – 25% per annum based on the original cost.
- Leased plant, machinery and implements – 50%.
- Non-commercial vehicles – 20% per annum.
- Initial development allowance (10%) – growers of tea, coffee and banana plants, citrus fruit trees, rose bushes and other similar plants or trees.
- Investment allowance – 10% for capital expenditure on industrial buildings used for manufacture.
- Industrial building allowance (10% initial for first year and 5% annual allowance). Applies to hotels and buildings used for manufacturing purposes.
- There is an exemption from customs duties for mining machinery imported by the holder of a mining right. This is only available on application to the Minister of Mines and Minerals. Moreover, customs duty is suspended on machinery and equipment used for the manufacture of trailers.
- Carry forward of losses for tax purposes – holders of large-scale mining licences are allowed to index their Kwacha-denominated losses and capital allowances with a factor based on the movements in exchange rates.
Agriculture
- Income taxed at a reduced rate of 10% (except for cotton lint).
- Dividends paid out of farming activities exempt from tax for the first five years from commencement of business.
- VAT deferment on importation of some agricultural equipment and machinery.
- No import duty on irrigation equipment and reduced duty rates on imports of other farming equipment.
Manufacturing
- Refund of Zambian VAT on export of Zambian products by non-resident businesses under the Commercial Exporters Scheme.
- Zero import duty rate capital goods and machinery (including trucks and specialized motor vehicles) for the first five years for companies with a ZDA Certificate of Registration
- Guaranteed input tax claims are granted for two years before the commencement of production
- Income from chemical manufacturing of fertilisers is taxed at a reduced rate of 15%
- Import duty is suspended (no time limited provided) on machinery, equipment and capital goods for the assembly of motor vehicles, trailers, motorcycles and bicycles.
Tourism
- A refund of VAT is granted for non-resident tourists and visitors on selected goods
- No import VAT applies on goods temporarily imported into the country by foreign tourists.
Source: Zambia Development Agency (ZDA).
Country Snapshot
Population (2019, millions)¹ | 17.86 |
Population Projections (2030, millions)¹ | 24.32 |
Economically active population in agriculture (as % of Economically active population)¹², 2019 | 64.7 |
Capital | Lusaka |
Surface Area (km²)² | 752,610 |
Weather¹¹ | In Lusaka: Hottest month, October, 18-31°C; coldest month, July, 9-23°C (average daily minimum and maximum); driest month, August, 0 mm average rainfall; wettest month, December, 231 mm average rainfall |
Languages³ | Official: English – Others: Bembe, Nyanja, Tonga, Lozi, Chewa, Nsenga, Tumbuka, Lunda (North Western), Kaonde, Lala, Lamba, Luvale, Mambwe, Namwanga, Lenje, Bisa and others |
Main Religions³ | Main: Protestant and Roman Catholic – Others: Muslim Buddhist, Hindu, Baha’i and none |
Time⁴ | Central Africa Time (CAT) +0200 UTC |
Driving Orientation⁵ | Left Side |
Internet Country Code⁶ | .zm |
Country Calling Code | +260 |
Plug, Socket and Voltage⁷ | Type C, D and G – 230V/50Hz |
Currency | Zambian Kwacha (ZMK) – 1/100 = Ngwee |
Exchange Rate (As of 17 February 2019, per USD)⁸ | 11.87 (buy rate) |
GDP at Market Prices (2018, current, billions of USD)⁹ | 26.72 |
GDP Growth (2018, annual %)⁹ | 3.39 |
Average GDP Growth (2014-2018, annual %)⁹ | 3.71 |
GDP per Capita, PPP (2018, current international $)⁹ | 4,216 |
Inflation, Consumer Prices (2018, annual %)⁹ | 7.49 |
Average Inflation, Consumer Prices (2014-2018, annual %)⁹ | 9.97 |
Total Reserves in Months of Imports (2018)⁹ | 1.77 |
Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, “Worldwide Driving Orientation by Country”.
⁶Wikipedia, “List of Internet top-level domains”; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Bank of Zambia. ⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
¹²AFDB Socioeconomic Database.
Reasons to Invest in Zambia
- Zambia has vast resource endowment in terms of land, labour and water, indicating the high potential to expand and/or excel development.
- Zambia stands out as one of the prime tourism destinations in Africa offering a wealth of natural tourism assets – waterfalls, lakes and rivers holding about 40% of Southern Africa’s water, ‘wildlife protected areas’ occupying about 10% of the country’s total land area, and a tropical climate.
- Being a member of a number of regional and international groupings, make Zambia strategic both in its location and abundance in natural resource. These include the Common Market for Eastern and Southern Africa (COMESA), which is currently a customs union, and the Southern Africa Development Community (SADC) Free Trade Areas (FTA).
- Zambia is also a member of COMESA-EAC-SADC Tripartite Free Trade Area Agreement (TFTA). TFTA is an intergrated market of 26 countries with a combined population of 632 million people which is 57% of Africa’s population.
Source: Zambia Development Agency – ZDA Online Portal
Population
Population Projections (millions)
Population (2019) | 17.86 |
Population Projections (2030) | 24.32 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Population Residing in Urban Areas (%)
Population Projections (2019) | 44.07 |
Percentage of Population Residing in Urban Areas (2030) | 50.47 |
Source: United Nations Population Division, Department of Economic and Social Affairs.
Youth Literacy Rates (2017, %)
Youth Literacy Rate, Population 15-24 Years, Both Sexes | 92.09 |
Youth Literacy Rate, Population 15-24 Years, Female | 91.62 |
Youth Literacy Rate, Population 15-24 Years, Male | 92.55 |
Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.
Labour
Unemployment (2018, % of Total Labour Force)
Unemployment, Total | 7.2 |
Unemployment, Female | 6.94 |
Unemployment, Male | 7.45 |
Source: World Bank, World Development Indicators 2019.
Labour Force (2017, % of Ages 15+)
Labour Force Participation Rate, Total | 75.18 |
Labour Force Participation Rate, Female | 70.75 |
Labour Force Participation Rate, Male | 79.79 |
Labour Force, Total (number) | 7,183,708 |
Source: World Bank, World Development Indicators 2019.
Economy Overview
GDP
2014 | 2015 | 2016 | 2017 | 2018 | |
GDP at Market Prices (current, billions of USD) | 27.15 | 21.15 | 20.95 | 25.86 | 27.72 |
GDP Growth (annual %) | 4.69 | 2.91 | 3.75 | 3.40 | 3.79 |
Source: World Bank, World Development Indicators 2019.
Value Added by Sector (% of GDP)
Indicator | 2018 | 2019 |
Agriculture | 8.40 | 8.00 |
Manufacturing | 9.00 | 9.23 |
Industry | 42.68 | 42.95 |
Services | 67.92 | 68.05 |
Construction | 11.85 | 12.28 |
Electricity, gas and water | 3.64 | 3.91 |
Mining and quarrying | 18.19 | 17.52 |
Education | 9.32 | 9.35 |
Finance, real estate and business services | 13.07 | 13.34 |
Public administration and Defense | 5.46 | 5.38 |
Health and Social Work | 1.58 | 1.60 |
Other services | 1.05 | 1.01 |
Transport, storage and communication | 8.67 | 8.86 |
Wholesale and retail trade, hotels and restaurants | 28.77 | 28.53 |
Source: AFDB Socio Economic Database.
Trade Profile
Import Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 8,743,863 | 8,508,280 | 7,538,333 | 7,983,284 | 9,461,739 |
South Africa | 2,808,118 | 2,619,550 | 2,418,927 | 2,457,474 | 2,726,786 |
Congo DR | 1,337,463 | 953,320 | 988,654 | 1,012,481 | 1,393,726 |
China | 795,878 | 693,617 | 600,007 | 1,121,235 | 1,290,683 |
United Arab Emirates | 229,385 | 175,970 | 316,736 | 468,048 | 595,662 |
India | 377,616 | 366,078 | 316,681 | 246,259 | 442,583 |
Source: COMTRADE Statistics.
Export Partners (USD ‘000)
2014 | 2015 | 2016 | 2017 | 2018 | |
World | 8,870,290 | 7,037,729 | 6,508,418 | 8,006,790 | 9,052,165 |
Switzerland | 3,019,192 | 2,786,745 | 2,485,776 | 3,542,071 | 3,808,387 |
China | 1,363,442 | 992,686 | 1,208,581 | 1,329,585 | 1,307,810 |
Singapore | 350,098 | 550,128 | 368,776 | 493,961 | 699,742 |
Congo DR | 615,049 | 451,327 | 351,165 | 435,404 | 686,646 |
South Africa | 579,164 | 501,301 | 362,140 | 390,634 | 437,056 |
Source: COMTRADE Statistics.
Zambia’s Top Import Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 8,743,863 | 8,508,280 | 7,538,333 | 7,983,284 | 9,461,739 | |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 1,187,399 | 962,222 | 836,162 | 1,130,273 | 1,389,831 |
27 | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes | 1,314,665 | 1,666,738 | 1,670,863 | 1,340,717 | 1,339,757 |
26 | Ores, slag and ash | 1,307,533 | 616,920 | 701,738 | 949,660 | 1,271,425 |
87 | Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof | 726,435 | 549,163 | 434,248 | 481,016 | 803,435 |
85 | Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | 846,641 | 841,865 | 865,899 | 444,426 | 589,145 |
Source: COMTRADE Statistics.
Zambia’s Top Export Products (USD ‘000)
Chapter | Description | 2014 | 2015 | 2016 | 2017 | 2018 |
All products | 8,870,290 | 7,037,729 | 6,508,418 | 8,006,790 | 9,052,165 | |
74 | Copper and articles thereof | 6,594,543 | 5,193,686 | 4,555,866 | 6,158,724 | 6,807,039 |
28 | Inorganic chemicals: organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes | 267,891 | 84,032 | 64,160 | 96,209 | 200,213 |
49 | Books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans | 25,584 | 54,572 | 67,654 | 120,855 | 191,855 |
25 | Salt; sulphur; earths and stone; plastering material, lime and cement | 125,661 | 105,262 | 179,375 | 157,236 | 190,543 |
84 | Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | 115,544 | 68,470 | 102,226 | 79,927 | 126,413 |
Source: COMTRADE Statistics.
Investment Profile
FDI Inflows (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inflows | 662.9 | 1,107.5 | 408.4 | 548.0 | 234.0 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outflows Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outflows | 176.7 | (72.0) | 32.2 | 696.2 | 133.4 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Inward Stock | 18,855.1 | 19,866.5 | 20,435.4 | 19,134.3 | 19,368.3 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Outward Stock (millions of USD)
Year | 2016 | 2017 | 2018 | 2019 | 2020 |
FDI Outward Stock | 1,625.0 | 1,553.0 | 1,585.2 | 2,169.9 | 2,303.3 |
Source: United Nations Conference on Trade and Development, World Investment Report 2021
FDI Inflows Main Source Countries (in terms of number of projects)
South Africa, China, UK, India, Canada, United States, Botswana, Australia, Togo, and France.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Sectors (in terms of number of projects)
Metals, Financial Services, Food and Tobacco, Communications, Business Services, Industrial Machinery, Equipment and Tools, Chemicals, Building and Construction Materials, Transportation, and Renewable energy.
Source: Financial Times, fDi Markets, 2018
FDI Inflows Main Companies (in terms of number of projects)
Konkola Copper Mine, First Quantum Minerals, First National Bank Zambia, Ecobank Zambia, Liquid Telecom Zambia, BancABC Zambia, MTN Zambia, Pick n Pay, Shoprite, and China Nonferrous Metals Mining (CNMC).
Source: Financial Times, fDi Markets, 2018
Doing Business
Overall Doing Business Ranking
2020 | 85/190 |
2019 | 87/190 |
Source: World Bank, Doing Business, 2020
Starting a Business
2020 Rank | 117/190 |
Procedures (number) | 7 |
Time (days) | 8.5 |
Cost (% of income per capita*) | 34.0 |
Paid-in Minimum Capital (% of income per capita*) | 0.0 |
*GNI per capita used: USD 280
Source: World Bank, Doing Business, 2020
Paying Taxes
Paying Taxes
2020 Rank | 17/190 |
Payments (number per year) | 11 |
Time (hours per year) | 158 |
Total Tax Rate (% of profit) | 15.6 |
Profit Tax (% of profit) | 2.0 |
Labor Tax and Contributions (% of profit) | 10.4 |
Other Taxes (% of profit) | 3.1 |
Source: World Bank, Doing Business, 2020
Trading Across Borders
2020 Rank | 155/190 |
Time to Export: Border Compliance (hours) | 120 |
Cost to Export: Border Compliance (USD) | 370 |
Time to Export: Documentary Compliance (hours) | 96 |
Cost to Export: Documentary Compliance (USD) | 200 |
Time to Import: Border Compliance (hours) | 120 |
Cost to Import: Border Compliance (USD) | 380 |
Time to Import: Documentary Compliance (hours) | 72 |
Cost to Import: Documentary Compliance (USD) | 175 |
Assumptions
- It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
- It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
- A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
- Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
- If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
- Time is measured in hours, and 1 day is 24 hours.
- Costs do not include tariffs.
Source: World Bank, Doing Business, 2020
Investment Regime
Legal Framework
Investment Code – The Zambia Development Agency (ZDA) Act of 2006.
Key guarantees in terms of investment protection include:
- Investors are given protection against state nationalization
- There are no controls on the transfer of capital in and out of Zambia and no exchange controls as well.
- Guarantees for rights of repatriation with respect to profits, debt service, fees, royalties and disinvestment proceeds.
- For dispute settlement, investors can choose between using an internal institutional arbitrage or institutional arbitration under the rules established by the ICSID
Source: United Nations Conference on Trade and Development, iGuide Zambia.
Investment Incentives
General Incentives
- Import VAT relief for VAT registered businesses on imports of eligible capital goods (i.e. VAT deferment).
- Zero rate of VAT on export of taxable products.
- Guarantee of VAT refund within 30 days of adequately supported claims.
- Relief of VAT on transfer of a business as a going concern.
- Equal treatment of services for VAT irrespective of domicile of the supplier (i.e. reverse VAT).
- Cash accounting for VAT for members of the Association of Building and Civil Engineering Contractors.
- Voluntary VAT registration for company businesses whose turnover is below ZMW 800,000 per annum subject to the conditions stated above.
- Registered businesses allowed to reclaim 20% of input VAT paid on petrol.
- Exemption of interest component of finance leases from VAT.
- VAT relief on input tax paid for purchases made by registered suppliers.
- Income from non-traditional exports is taxed at a reduced rate of 15%.
Capital allowances
- Capital expenditure deductions for mining equipment, plant, machinery and other capital expenditure will be claimed at the rate of 25% per annum. The deductions will only be available from the year that the asset is brought-into-use.
- Farm works and improvements allowance (100%) – clearing, prevention of soil erosion, farm dwellings with an original cost of no more than ZMW 10 million and other permanent works.
- Improvement allowance under ZDA Act – 100%.
- Accelerated capital allowances – 50% per annum on machinery, plant and equipment used exclusively for farming, manufacturing, and tourism or leasing.
- Plant, machinery and commercial vehicles – 25% per annum based on the original cost.
- Leased plant, machinery and implements – 50%.
- Non-commercial vehicles – 20% per annum.
- Initial development allowance (10%) – growers of tea, coffee and banana plants, citrus fruit trees, rose bushes and other similar plants or trees.
- Investment allowance – 10% for capital expenditure on industrial buildings used for manufacture.
- Industrial building allowance (10% initial for first year and 5% annual allowance). Applies to hotels and buildings used for manufacturing purposes.
- There is an exemption from customs duties for mining machinery imported by the holder of a mining right. This is only available on application to the Minister of Mines and Minerals. Moreover, customs duty is suspended on machinery and equipment used for the manufacture of trailers.
- Carry forward of losses for tax purposes – holders of large-scale mining licences are allowed to index their Kwacha-denominated losses and capital allowances with a factor based on the movements in exchange rates.
Agriculture
- Income taxed at a reduced rate of 10% (except for cotton lint).
- Dividends paid out of farming activities exempt from tax for the first five years from commencement of business.
- VAT deferment on importation of some agricultural equipment and machinery.
- No import duty on irrigation equipment and reduced duty rates on imports of other farming equipment.
Manufacturing
- Refund of Zambian VAT on export of Zambian products by non-resident businesses under the Commercial Exporters Scheme.
- Zero import duty rate capital goods and machinery (including trucks and specialized motor vehicles) for the first five years for companies with a ZDA Certificate of Registration
- Guaranteed input tax claims are granted for two years before the commencement of production
- Income from chemical manufacturing of fertilisers is taxed at a reduced rate of 15%
- Import duty is suspended (no time limited provided) on machinery, equipment and capital goods for the assembly of motor vehicles, trailers, motorcycles and bicycles.
Tourism
- A refund of VAT is granted for non-resident tourists and visitors on selected goods
- No import VAT applies on goods temporarily imported into the country by foreign tourists.
Source: Zambia Development Agency (ZDA).