Investment Opportunities
Zambia is endowed with abundance of natural resources - minerals, arable land, rivers, forests, water falls, lakes and wildlife - and with the country sufficiently underdeveloped it offers potential and profitable openings for investors. With total surface area of about 752,600 square km and mean altitude rising around 1200m above sea level, Zambia enjoys sub-tropical vegetation and climatic conditions. With high literacy rate for adults - approximately 83.5% for males and 65.5% for females- as well as two state run Universities, two University Colleges and additional institutions of 
higher learning, both skilled and semi-skilled workers, trained professionals and technicians are available at very competitive rates. Its central geographical location within South Central Africa with common borders to eight countries in the region provides excellent export market opportunities to potential enterprises. Zambia has abundance of electric power and is a net exporter in the region. Though landlocked its Road, Rail and Telecommunication facilities are reasonably well developed for direct access to regional and international markets. Zambia’s active participation in 14 regional countries Southern African Development Community (SADC) Trade Protocol as well as the Africa wide 20 Countries Common Market for Eastern and Southern Africa (COMESA) offers preferential tariff access to total market potential of nearly 380 million people. Similarly, with advent of Africa Growth and Opportunity Act (AGOA) duty free access to the huge USA market has become a reality. Zambia is also signatory to the Cotonou Agreement, which aims to achieve free trade arrangements between the E U and the A C P regional groupings. Sector OpportunitiesPrime growth sectors for investment are Manufacturing, Agriculture and Agro-processing, Tourism, and Mining. Others offering potential investment opportunities include Construction, Transportation, Energy, Telecommunication and IT Services.
higher learning, both skilled and semi-skilled workers, trained professionals and technicians are available at very competitive rates. Its central geographical location within South Central Africa with common borders to eight countries in the region provides excellent export market opportunities to potential enterprises. Zambia has abundance of electric power and is a net exporter in the region. Though landlocked its Road, Rail and Telecommunication facilities are reasonably well developed for direct access to regional and international markets. Zambia’s active participation in 14 regional countries Southern African Development Community (SADC) Trade Protocol as well as the Africa wide 20 Countries Common Market for Eastern and Southern Africa (COMESA) offers preferential tariff access to total market potential of nearly 380 million people. Similarly, with advent of Africa Growth and Opportunity Act (AGOA) duty free access to the huge USA market has become a reality. Zambia is also signatory to the Cotonou Agreement, which aims to achieve free trade arrangements between the E U and the A C P regional groupings. Sector OpportunitiesPrime growth sectors for investment are Manufacturing, Agriculture and Agro-processing, Tourism, and Mining. Others offering potential investment opportunities include Construction, Transportation, Energy, Telecommunication and IT Services. Manufacturing
Manufacturing sector accounts for nearly 11 percent of the country’s Gross Domestic Product (GDP) and has been consistently growing. The sector is one of the most attractive sectors for investment as it has all the vital required elements in place such as raw materials, required labour force, abundant land and a good banking and financial system. Measures have been put in place to support growth within the sector including the creation of Multi-Facility Economic Zones (M
FEZs), credit provision and industrial skills training. However, the sector needs diversification to produce wide variety of high quality value added intermediate and final products principally for the export markets. Potential areas of investment include cement production, textiles and clothing apparels, agro-processing, processed and refined foods, leather products, wood processing, plastics, vehicle parts and assembly, chemicals, refining of petroleum, and metal and engineering works. There is exemption on customs duty on the importation of most capital machinery and equipment used for manufacturing while many other incentives exist for the sector.
FEZs), credit provision and industrial skills training. However, the sector needs diversification to produce wide variety of high quality value added intermediate and final products principally for the export markets. Potential areas of investment include cement production, textiles and clothing apparels, agro-processing, processed and refined foods, leather products, wood processing, plastics, vehicle parts and assembly, chemicals, refining of petroleum, and metal and engineering works. There is exemption on customs duty on the importation of most capital machinery and equipment used for manufacturing while many other incentives exist for the sector. Agriculture
Zambia has vast agricultural resource endowment. Arable land is plentiful for large-scale modern farming. Government has allocated vast tracks of land near rail and road networks for prospective investors and electrification of these blocks is on-going. Surface and underground water is in abundance. Climatic conditions are ideally suited for wide variety of exportable crops including horticulture and floriculture. Agro-processing of wheat, soyabean, cotton, tobacco, spices, sugar and vegetables is encouraged to add value to local produce. Special incentives are offered to commercial and small-holder farmers. Presently, the Agriculture sector accounts for approximately 15 percent of the country’s GDP. Mining Zambia has enormous reserves of Copper-Cobalt ore and the country is the fourth largest producer of copper metal. Gold, Nickel, Lead-Zinc, Iron and Manganese are also mined. In addition Zambia is endowed with very high quality of Gemstones - Emerald, Amethyst, Aquamarine, Rubies, Garnets, and Diamonds - which are still unexploited. With the privatisation of the mining sector, potential opportunities have become very attractive.
Tourism
Potential of Zambia as one-stop destination offers excellent prospects for advancement of this highly under-developed sector. With 19 National Parks, 23 Game Management Areas, largest Water Fall in the world, and 23 million hectares devoted to the conservation of spectacular variety of animals, the scope for an integrated quality tourism related investment is very attractive. Wildlife such as Elephant, Leopard, Lion, Cheetah, Rhinoceros, Zebra, Giraffe, Hippopotamus, Crocodile, Buffalo, Impala, Antelope, Baboon and host of smaller creatures as well as over 700 species of Birds can be seen. Opportunities to promote adventure holidays -white-water rafting, canoeing, rock-climbing, hand-gliding, fishing, bungi-jumping at Victoria Falls including its unique walking safaris offer excellent tourism potential.
r-developed sector. With 19 National Parks, 23 Game Management Areas, largest Water Fall in the world, and 23 million hectares devoted to the conservation of spectacular variety of animals, the scope for an integrated quality tourism related investment is very attractive. Wildlife such as Elephant, Leopard, Lion, Cheetah, Rhinoceros, Zebra, Giraffe, Hippopotamus, Crocodile, Buffalo, Impala, Antelope, Baboon and host of smaller creatures as well as over 700 species of Birds can be seen. Opportunities to promote adventure holidays -white-water rafting, canoeing, rock-climbing, hand-gliding, fishing, bungi-jumping at Victoria Falls including its unique walking safaris offer excellent tourism potential. Energy
Zambia has abundance of energy resources. The most important source of energy is electricity, which is generated by three major hydroelectric power stations. Other endowments in Zambia’s energy sector include coal, 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 percent of the total capacity. Hydroelectric plants account for 92 percent of the total installed capacity and 99 percent 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. With the liberalisation of the economy, Government has amended legislation affecting generation, transmission, distribution and supply of electricity thus allowing private sector entry. Potential opportunities identified are Kafue Gorge Lower HydroElectric Project, Itezhi-tezhi HydroElectric Project, Zambia-Tanzania Interconnector and Zambia-Namibia Interconnector. Exploration potential for hydrocarbons (oil and gas) is one area that has not been tapped fully - hydrocarbon source rocks are proven and are preserved in all basinal areas of Zambia. Government welcomes active participation from prospective investors with modern technological expertise. 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 neighbouring 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.
Physical Infrastructure
Potential investment opportunities in physical infrastructure such as housing, roads, and communications abound. The construction sector in Zambia is rapidly growing mainly due to construction of residential housing, investments in the mines, road construction and other civil works. The country also has a very robust Road Sector Investment Program (ROADSIP) in which both local and international road construction companies participate although emphasis is on quality. The country is also looking for serious investors to venture into the air transport industry to support the ever growing tourism sector and increased commercial activities.
vestment Program (ROADSIP) in which both local and international road construction companies participate although emphasis is on quality. The country is also looking for serious investors to venture into the air transport industry to support the ever growing tourism sector and increased commercial activities.Others
Others sectors offering potential investment opportunities include Construction, Transportation, Human Resources, Telecommunication and IT Services. Development, improvement and modernisation of Zambia’s Road Transport, Railway, Inland Waterway Transport and Telecommunication network as well as Commercial properties to meet high quality international business and consumer requirements are areas that should offer profitable opportunities for both domestic and foreign entrepreneurs to pursue. Knowledge-based business institutions to improve and enhance the quality and diversity of Zambian and Regional workforce and management to achieve international standards also offer exciting investment opportunities. Similarly, private sector enterprises with expertise in environmental protection and natural resource management capacity building and training would find Zambia an attractive location to invest to meet both domestic and regional market potentials.
Trade
Since the early 1990s, Zambia has pursued market oriented policies, with the country becoming increasingly integrated in the global economy. This has been done through the privatisation of state enterprises, removal of unnecessary controls, deregulation of interest and foreign exchange rates, reduction of tariffs, strengthening of the financial sector, and reforms on policies of repatriation of tax profits, dividends and capital. Zambia’s economy is on track and has been expanding since 2002. The government’s target is to reach a seven percent annual economic growth rate and to reduce inflation down to seven percent. The government has deliberate ongoing processes of improving the investment climate for doing business and promotion of exports.
Barriers to trade have been substantially reduced, export licences are mere a formality, while import controls are maintained solely for statistical purposes. The main trade policy instrument is done through customs duties, which have even been reduced to support private sector growth and export competitiveness. In addition, a number of incentives have been introduced to develop export industries. The Zambia Revenue Authority is responsible for the administration of customs duties while commercial banks issue export and import licences. Although the country’s main exports remain metals and minerals, particularly copper and cobalt, emphasis is also on non-traditional exports such as vegetables, flowers, cotton, tobacco, cement and textiles. Major imports include crude oil, mining equipment, machinery, iron steel, vehicles, and transport equipment.Zambia’s export market is buoyed by the country’s membership in regional organisations such as the Common Market for Eastern and Southern Africa (COMESA) and the Southern Africa Development Community (SADC). Zambia’s participation in international trade has also boosted the country’s competitiveness in global trade. Currently the European Union countries, China, South Africa, Democratic Republic of Congo, Kuwait, United Arab Emirates, India, Japan and the USA remain Zambia’s major trading partners. Although Zambia is a landlocked country, it has easy access to the sea ports of Durban in South Africa, Dar-es-salaam in Tanzania and Walvis Bay in Namibia.
ditional exports such as vegetables, flowers, cotton, tobacco, cement and textiles. Major imports include crude oil, mining equipment, machinery, iron steel, vehicles, and transport equipment.Zambia’s export market is buoyed by the country’s membership in regional organisations such as the Common Market for Eastern and Southern Africa (COMESA) and the Southern Africa Development Community (SADC). Zambia’s participation in international trade has also boosted the country’s competitiveness in global trade. Currently the European Union countries, China, South Africa, Democratic Republic of Congo, Kuwait, United Arab Emirates, India, Japan and the USA remain Zambia’s major trading partners. Although Zambia is a landlocked country, it has easy access to the sea ports of Durban in South Africa, Dar-es-salaam in Tanzania and Walvis Bay in Namibia. 
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