The first thing to pay attention to when investing in Zambia is whether the enterprise has obtained an investment license issued by the Zambian government. According to the Zambia Investment Law of 1991, foreigners who invest in Zambia need to apply to the Zambia Development Agency for an investment license, which is valid for 10 years from the date of issuance. Investors can apply for renewal before the expiration of the license. In addition, except for the service industry, most projects generally need to submit a project brief or environmental impact assessment report to the Environmental Commission of Zambia before implementation, and obtain approval from the Environmental Commission. In addition to the aforementioned licenses, there are also some types of industries that require special permits from relevant departments in Zambia, such as tourism, mining, transportation, finance, communication, etc.

Anyone who invests no less than $1 million in any of the following priority industries can enjoy fiscal incentives.
Floral arrangement: fresh and dried flowers
Horticulture: Fresh and dried vegetables
Food processing: Flour, other processed foods
Refreshing drinks: tea and tea products, coffee and coffee products
Textile industry: cotton, cotton yarn, textiles, clothing
Mineral processing industry: copper products, iron ore, steel, cobalt, and other engineering technology products
Fertilizer: phosphate fertilizer, etc
Wood processing industry: Producing and processing logs into wooden products
Leather processing industry: cowhide, sheepskin, scrap leather, leather products
Power station and power generation
Information and Communication Technology
Medicine and medical equipment: drug manufacturing, medical equipment repair and maintenance, providing cleaning services for medical equipment, ambulance services, medical laboratory services, diagnostic services, other medical services
Education and skills training
Manufacturing industry (equipment, steel products, electronics, chemicals, papermaking, metal product processing, building materials, plastics, rubber, packaging, printing, etc.)
Tourism
Real estate industry

In January 1993, the Zambian government lifted foreign exchange controls, allowing currencies under both capital and cash accounts to be freely convertible, with exchange rates entirely determined by market supply and demand. In June 2012, the Zambian government issued the Prohibition of Foreign Currency Transactions (SI33), which prohibits the use of foreign currency for quoting and settlement in domestic transactions. In February 2013, in order to strengthen the management of the foreign exchange market, the Zambian Parliament amended the Zambian Banking Act, granting the Central Bank of Zambia the power to regulate foreign exchange flows. In April of the same year, the government issued the "Zambia Balance of Payments Regulation", which clarified the specific measures for central bank supervision. In June, the government issued the Foreign Exchange Regulation Act (SI55), replacing the original Zambia Balance of Payments Regulation, to strengthen the supervision of all domestic and foreign foreign exchange transactions. Since 2014, the Zambian Kwacha has depreciated significantly, and its exchange rate with the US dollar has changed from 5.5:1 at the end of 2013 to 26.1 in January 2024. On March 21, 2014, the Zambian government announced the cancellation of two bills, SI33 and SI55, allowing for the relaxation of foreign exchange controls. Currently, Zambia allows for the free remittance of debt repayment funds and after tax profits.
According to Zambian customs regulations, cash worth more than $5000 cannot be carried in or out of the country.

Zambia actively participates in the process of regional economic integration and is a member of the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), and the Common Market for Eastern and Southern Africa Development Community East African Community Tripartite Free Trade Agreement (COMESA-EAC-SADC FTA). Zambia signed the African Continental Free Trade Agreement on February 10, 2019. The African Union (AU) is keen to accelerate regional economic, political, and social integration by establishing the African Continental Free Trade Area (AfCFTA), with the aim of minimizing trade and investment restrictions on the continent. On July 7, 2019, African leaders launched the African Continental Free Trade Area in Niamey, the capital of Nigeria. After the establishment of the free trade zone, 97% of commodity tariffs between African countries will be gradually eliminated, stimulating economic growth on the African continent, attracting foreign investment, creating employment opportunities, and achieving a significant increase of 60% in intra African trade.

Zambia enjoys unilateral trade preferences granted by European, American, and Chinese countries. The African Growth and Opportunity Act (AGOA) and its amendments, introduced by the United States on May 18, 2000, allow Zambia to export 6450 products (including textiles and clothing) to the United States under the Generalized System of Preferences (GSP) without tariffs or quotas until September 30, 2015; Since January 1, 2005, China has allowed Zambia to export over 440 types of products (including non-ferrous metal shavings, gemstone or semi gemstone products, wood products, clothing, and light industrial products) to China without tariffs or quotas.

The minimum basic wage for ordinary workers in Zambia, along with housing subsidies, transportation subsidies, and lunch subsidies, amounts to approximately 2313 kwacha per month (approximately 128 US dollars). In January 2023, 1 US dollar is approximately equal to 18 kwacha.

The normal weekly hours should not exceed 48 hours.
Office hours are usually from 8:00 to 17:00 from Monday to Friday, and from 8:00 to 13:00 on Saturday (for most companies outside of the retail industry).
Public holidays include: New Year's Day on January 1st, International Women's Day on March 8th, Youth Day on March 12th, Good Friday at the end of March, Easter on the first Monday after Good Friday, Labor Day on May 1st, African Freedom Day on May 25th, Heroes' Day on the first Monday of July, Unity Day on the first Tuesday of July, Farmers' Day on the first Monday of August, National Day of Prayer on October 18th, Independence Day on October 24th, and Christmas Day on December 25th. Many institutions close before Christmas for an 'industrial break' and reopen in the first week of January.

Medical insurance and maternity allowance
According to the Minimum Wage and Employment Conditions Act, employers are obliged to pay full wages to employees who are unable to work due to illness, but such situations must be certified by a registered medical practitioner. The maximum period for this benefit is three months of full salary, followed by three months of half salary. Some employers offer health and medical insurance by joining private clinic memberships, with both employees and employers paying equal amounts to them. If a female employee has worked for her employer for at least 24 months, she is entitled to 120 days of maternity leave.
Transportation subsidy
Employees whose workplace is more than 3 kilometers away from their place of residence should receive a monthly transportation subsidy of 102 kwacha, except for vehicles provided by the employer.
Overtime pay
Saturday lunchtime and after 17:00: Employee hourly wage multiplied by 1.5;
On Sundays and all public holidays: employees' hourly wages multiplied by 2.
Paid vacation
According to the Minimum Wage and Employment Law, employers are obliged to grant no less than 24 days of paid leave per year.
Special leave
According to the Minimum Wage and Employment Conditions Act, employers have an obligation to provide employees with seven days of paid leave after the death of their spouse, children, mother, or father. The law also requires employers to provide funeral subsidies such as standard coffins, cash, and cornmeal upon the death of employees, spouses, and registered children.
Termination of Employment Relationship
According to Zambian law, employment contracts can be terminated through the following methods:
I. Resignation or dismissal
II. Normal retirement or dismissal due to illness
III. Contract expiration
IV. Layoffs
V. Failure, such as death
Layoff subsidy
Employers have an obligation to pay at least one month's salary and no less than two months' basic salary as a layoff allowance for employees who have completed one full service year.

The Zambian Confederation of Trade Unions is currently the largest and most influential national trade union organization, established in 1965, with 25 industry unions under its jurisdiction, all engaged in relevant activities in accordance with the Industrial and Labour Relations Act; Trade union organizations can negotiate with employers on behalf of their members regarding relevant issues; More than 25 workers can apply to establish a company trade union. Small and medium-sized trade union organizations have little influence and are less likely to cause labor disputes, while in Zambia, mining unions have a greater influence.

Investors can apply for investment permits to engage in investment business in Zambia, while other Chinese managers and staff can apply for work permits according to regulations. Investment permits and work permits can be renewed or extended.
The following conditions can be met to apply for a residence permit:
I. Individuals who have become ordinary and legal residents of the Republic of Zambia;
II. Individuals who have held a work permit for at least 10 years or an investment permit for at least 3 years;
III. Individuals who hold a spouse work visa for at least 5 years;
IV. Retired personnel.
For foreign investors who invest over $250000 and employ more than 200 local Zambian employees, one self employment permit and up to five work permits for foreign employees can be granted. Investors with investments exceeding 10 million US dollars can negotiate with the government regarding the number of foreign employees.

Zambia implements a system of free import and export trade. There are no restrictions on the quantity and amount of imported and exported goods, except for the export of corn, logs, gemstones, endangered wildlife and plants, oil, fertilizers, and the import of items that endanger national security, violate social morality, or religious beliefs.

Zambia is a landlocked country, and domestic shipments usually go through Durban Port in South Africa, Beira Port in Mozambique, or Dar es Salaam Port in Tanzania. In January 2023, the cost of shipping a 40 foot container from major domestic ports to these ports by sea and then by land to Lusaka is approximately $12000.

The Zambian Ministry of Finance is responsible for formulating national tax policies and adjusting tax rates annually based on macroeconomic development needs. The main tax categories include direct taxes on corporate and personal income, dividends and interest, value-added tax, mining area use tax, and property transfer tax.
Zambia corporate income tax rate:
1) Corporate income tax: Manufacturing and other industries: 30%
2) Organic chemical fertilizer manufacturing industry: 15%
3) Mining industry - ordinary metals, gemstones, precious metals, and other minerals: 30%
4) Hedge income: 35%
5) Copper and cobalt concentrate exports: 10%
6) Crude copper imports: 15%
7) Export tax on other unprocessed or semi processed minerals: 10%
8) Telecommunications companies: 30% of revenue below 250000 kwacha; 40% of the income exceeding 250000 Zambian Kwacha;
9) Bank: 30%
10) Public welfare organizations: 15%
11) Agriculture: 10%
12) Non traditional imported products: 15%
The current value-added tax rate is 16%
Tariffs:
Based on the CIF price, the country adopts an international unified system, and its tariff schedule is divided into three levels: tax rates of 0% -5%, 15%, and 25%, respectively. Almost all raw materials and most industrial or production equipment have tariff categories between 0% and 5%, while the tariff for most imported semi-finished products is 15%, and the tax rate for imported final products is 25%. The average import tariff in the country is about 14%.
Zambia exempts tariffs on the following items used in the footwear industry: steel midsoles for shoes, steel toe caps with rubber, shoe caps and rivets, sole components, non-woven fabrics, textile shoe upper liners;
The import tariff for PVC lining and eyelets used in shoe manufacturing has been reduced to 5%;
The import tariffs on semi refined wax and grains used for making paint, as well as cassava starch containing glucose powder used for making cookies, have been reduced to 15%;
The import tariff for various textile machinery has been reduced to 0%, and the import tax rate for all imported polyester woven fabrics used for deep processing, as well as all imported sewing threads and greige fabrics, has been reduced to 0%.