Basic HTML Version
183
www.ebizguides.com
Commerce, Trade and Industry
RB commissioning the Freshpikt factory
EXPORT DEVELOPMENT
profits should be taxed and for years nine and ten,
75 percent of profits should be taxed
• Zero percent import duty rate on raw materials,
capital goods, and machinery including trucks and
specialized motor vehicles for five years for enter-
prises operating in the MFEZ
• Deferral of VAT on machinery and equipment in-
cluding trucks and specialised motor vehicles im-
ported for investment in MFEZ and/or priority sector
As of 2010, two MFEZs are under development, one
on a 2 000-hectare plot in Lusaka and another in
Chambishi in the Copperbelt, while a further zone
is planned for Lusaka East. There has been sub-
stantial progress in the development of the US$ 900
million MFEZ in Chambishi, where 11 manufacturers
began operating in 2009 and another five manufac-
turers have begun operations in 2010. Chambishi
has the capacity to accommodate approximately 60
enterprises, and possesses the potential to create
approximately 6 000 jobs by 2014.
The development of the Lusaka South MFEZ com-
menced in 2009, with some K 30 billion allocated to
support the construction of access roads to the zone.
In 2010, a further K 20 billion was provided to com-
plete infrastructure development in and around the
MFEZ. The success of these early MFEZs bodes
well for the development of other throughout the
country.
There is a need for value-added exports in Zambia,
and downstream processing is seen as one of the
best methods of achieving this.
The work of the Export Board of Zambia (EBZ) was
taken over by the Zambia Development Agency’s
Export Promotions Divisions in 2007 with the aim of
expanding Zambia’s export industry through product
and market development. This division supplies the
necessary support and trade information services
regarding international markets to business enter-
prises, and also liaises with trade associations, pro-
vides training for exporters, gives government input
on market access offers and the challenges as well
as opportunities that these pose to Zambia.
Held in Lusaka, the internationally recognized Zam-
bia Agricultural and Commercial Show exhibits ag-
ricultural equipment, produce and manufactured
goods. Ndola’s Zambia International Trade Fair also
has an impressive variety of products and draws ex-
hibitors from the region as well as abroad.
Non-Traditional Exports
The significance of non-traditional exports (NTEs) to
Zambia’s economy cannot be overstated. Reducing
the economy’s reliance on traditional mineral ex-
ports such as raw copper and cobalt, NTEs are vital
to increasing economic diversification and promot-
ing growth. Zambia’s most important NTEs include
tobacco, flowers and cotton.
According to 2010 CSO International Trade Statis-
tics, while NTE earnings dropped from US$ 958 mil-
lion in 2007 to US$ 935 million in 2008 as a result of
reduced global demand for commodities as well as
supply constraints, earnings rose once more in 2009
to reach US$ 976 million, with a weaker Kwacha of-
fering improving export competitiveness.
NTEs accounted for 23 percent of all exports in 2009
compared with 18.3 percent in 2008 and 20.7 per-
cent in 2007. In 2010, NTE earnings increased by
25.6 percent between January and February. How-
ever, in terms of percentage contribution to total ex-
ports earnings, NTEs made up only 16.1 and 13.9
percent in February and January 2010, respectively,
due to the resurgence in traditional (metal) exports.
Special incentives are offered to exporters of non-
traditional products, such as reduced corporate tax
of 15 percent. Exemption from duty and sales tax
on imports and machinery is offered to exporters of
non-traditional products with net foreign exchange
earnings.