Introduction to Zambia's Investment Policy

　1. Enactment of regulations
　　In accordance with the Investment Law enacted in 1991, specific duties are detailed in the Investment Law (attached).
　　2.Incentives
　　1) General incentives: According to the Investment Law amended in 1993 and 1996, the following general incentives are available according to the nature of the industry in which the investment is made and the scope of business operation:
　　● Income tax of 15% for businesses investing in the development of agriculture
　　● 15% corporate income tax for investment in non-traditional export products
　　● A reduction of one-seventh of the income tax payable for each of the first five taxable years of operation for enterprises investing in rural areas
　　● Depreciation of 10% for the first year of use and a fixed rate of 5% per year thereafter for buildings used for investment in manufacturing, mining and hotels
　　● Depreciation of tools, machinery, equipment, plant, etc. purchased for investment in farms, manufacturing and tourism at a rate of 50 percent per year for the first two years of use
　　● Capital discount of 20% per year for the first five years of operation for investment in capital for improving the operation of farms
　　● A capital discount of 10% per annum from the taxable income or profit of a business that invests in the cultivation of tea, coffee, bananas, oranges or other similar fruit trees
　　● 100% capital discount for funds invested in land leveling or clearing, well drilling, atmospheric or geological analysis, and water storage performed by the investing farm
　　2) Other incentives:
　　● Exemption from customs duties on most capital goods and machinery and equipment used in mining and agriculture, and 5% for other capital goods and equipment
　　● Exemption from import duties on raw materials, such as organic or inorganic chemicals, rubber, steel and plastics, etc., and 5% for other raw materials
　　● Personal income tax at a maximum rate of 30%.
　　● Reduction of corporate tax from 35% to 30% for companies listed on the Lusaka stock exchange
　　3. Application for Investment License: The investor submits the following documents when applying for an investment license at the Investment Center in Lusaka:
　　● Feasibility study or business plan
　　A copy of the company's certificate
　　Official list of shareholders
　　A bank certificate stating the financial capacity of the investor's project.
　　● Processing fee of 250 USD plus 17.5% VAT
　　● License fee of US$1.000 plus VAT of 17.5%.
　　4. Applications for licenses for the wood processing, tourism and mining industries are as follows:
　　1) Timber industry: there are two types of licenses, namely commercial timber concessions and two-man sawmill licenses, both of which must be applied for and submitted to the Chief Forest Manager:
　　● A map of the area proposed for operation and the area
　　● The scale of production, how many cubic meters will be produced per month or per year
　　● Type of equipment to be used
　　● Tree species
　　● A copy of the company certificate
　　2) Tourism sector: The Zambia National Tourism Board (ZNTB) is responsible for issuing all types of licenses and regulating activities in the tourism sector. If investing in a Game Management Area or National Safari, a letter of recommendation from the National Wildlife Service (NPWS) to the ZNTB is required, and the NPWS should obtain the consent of the District Council and the local chief before issuing a license.
　　3) Mining Industry: The Ministry of Mines issues licenses for small and large scale exploration or mining of gemstones. A detailed business plan is required when submitting an application for a license. The Ministry considers the granting of licenses within seven days for small scale mining and fourteen days for large scale mining.
　　5. Investment security: The Investment Law provides for due security of investors' property and the State cannot nationalize any investment enterprise unless the relevant law is passed by the National Assembly. In the event of nationalization, the State must compensate the nationalized investor enterprise promptly and in full at the market exchange rate in the currency invested by the enterprise at the time of investment. In addition, an investor's investment operations may not be adversely affected by changes to the Investment Act during the first seven years of investment. Zambia is a signatory to the Multilateral Investment Guarantee Agency (MIGA) and other international investment guarantee agreements, which provide protection to foreign investors in the event of war, conflict, natural disasters, other disturbances and confiscation.
　　In June 1996, the Governments of China and Zambia signed an Investment Encouragement and Guarantee Agreement.
　　Other relevant jurisdictions for investors are the Mines and Minerals Act 1995, the Environmental Protection Act 1995, the Environmental Protection Act 1995, the Environmental Protection Act 1995, the Environmental Protection Act 1995 and the Environmental Protection Act 1995.

Translated with DeepL.com (free version)