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Commerce, Trade and Industry
OVERVIEW
THE BUSINESS ENVIRONMENT
Zambia’s future economic development is contingent
upon moving away from its traditional dependence on
raw materials for export. It has begun to embrace the
huge potential growth of value-addition production.
The manufacturing sector accounts for approximately
11 percent of the country’s Gross Domestic Product
(GDP) and is one of the most attractive sectors for
investment. It has all the vital required elements in
place for strong fundamental growth, such as: raw
materials, a strong labour force, an abundance of
land, a good banking, and financial system. The ex-
pansion of manufacturing activities will, over the me-
dium term, improve Zambia’s growth prospects and
competitiveness and reduce its dependence on im-
ports through a wider base of locally produced goods
and services.
However, the sector has at present a relatively narrow
base, which needs further diversification to produce a
wide variety of high-quality, value-added intermediate
and final products, principally for the export markets.
In addition, the high fixed costs of doing business and
lack of supporting infrastructure continues to impede
the development of the sector and its ability to create
more jobs.
At the time of publication, the core objectives in the
Zambian manufacturing sector include reducing the
cost of doing business in the country and developing
Multi-Facility Economic Zones. For this reason, the
government continues to place an emphasis on the
construction of arterial infrastructure and the devel-
opment of Multi-Facility Economic Zones (MFEZs).
Furthermore, the processes and procedures for do-
ing business in the manufacturing sector are being
enhanced through regulatory reforms related to the
cost of doing business, spearheaded by the Zambia
Development Agency (ZDA) that is helping to facilitate
investment into the country.
Zambia is one of the more attractive investment loca-
tions in sub-Saharan Africa, and now both local and
foreign companies are able to take advantage of the
many benefits of doing business in Zambia.
There is no limit of interest, profit, dividends, manage-
ment fees, technical fees and royalties that inves-
tors are able to repatriate. Income earned by foreign
nationals may also be externalized without difficulty.
There is no real distinction within Zambian law be-
tween foreign and domestic investors. While compa-
nies seeking operating licences and concessions, or
investors interested in various companies are encour-
aged to commit to local participation, this is not com-
pulsory. Businesses setting up in Zambia now enjoy
faster company registration times, which have been
reduced to just one day—while registration for VAT
can now be completed in three days.
Munali Nickel mine-Mazabuka
Very youngs Zambian entrepeneurs
Business Development Institutions
The first Zambian chamber of commerce and indus-
try was established in Lusaka in 1933. Since then
there has been a national body of chambers of com-
merce and industry under a variety of names.
The Zambia Association of Chambers of Commerce
and Industry (ZACCI) is a national body representing
the interests of the private business sector in Zam-
bia. The mission of ZACCI is to promote the develop-
ment of trade, commerce and industry. By doing so
the association acts as a link between organizations,
the private sector, and government.
ZACCI’s recently effective initiatives include: im-
proved advocacy programmes with members of
parliament and government ministries, the introduc-
tion of cleaner production to local industries, and the