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Trade & Industry
expanding Zambia’s export industry through product
and market development. This division supplies the
necessary support and trade information services re-
garding international markets to business enterprises.
Non-Traditional
Exports
The significance of non-traditional exports (NTEs) to
Zambia’s economy cannot be overstated. They have
been reducing the economy’s reliance on traditional
mineral exports such as raw copper and cobalt, and
they are vital to increasing economic diversification
and promoting growth. Zambia’s most important
NTEs include tobacco, flowers, and cotton.
Special incentives are offered to exporters of nontra-
ditional products, such as a reduced corporate tax of
only 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.
FREE ZONES
Exhibiting the best features of free trade zones, ex-
port processing zones, and industrial parks, the de-
velopment of multi-facility economic zones (MFEZs)
act as efficient engines of economic growth.
Zambia’s MFEZs accommodate not only industries
but also a variety of other facilities such as recreation
centers, shopping malls, educational centers, and
health facilities. Business regulations in the MFEZs
are sufficiently flexible to provide a competitive invest-
ment environment comparable to some of the best in
the world.
The ZDA’s Multi-Facility Economic Zones Division
leads the way in implementing the MFEZs in Zambia,
and it is responsible for ensuring efficient government
approval procedures to streamline the creation and
administration of new businesses in these areas.
Specific incentives include:
• Zero percent tax rate on dividends for companies
operating in priority sectors and/or MFEZ under the
ZDA Act for a period of five years from the year of
first declaring dividends
• Zero percent tax rate on profits made by companies
operating in the priority sector and/or MFEZ for a
period of five years from the first year profits are
made.
• For years six to eight, only 50 percent of the prof-
its 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 specialized motor vehicles im-
ported for investment in MFEZ and/or the 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. Another zone is
planned for Lusaka East. There has been substantial
progress in the development of the 900 million USD
MFEZ in Chambishi.
The development of the Lusaka South MFEZ com-
menced in 2009, with some K30 billion allocated
to support the construction of access roads to the
zone. In 2010, a further K20 billion was provided to
complete infrastructure developments in and around
the MFEZ. The success of these early MFEZs bodes
well for the development of others throughout the
country
Action Auto
Villa Elizabetha
P.O. Box 50579, Lusaka
Tel: +260 211 226 205
Fax: +260 211 225 277
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Action Auto is the sole authorized distributor of all
new vehicles from General Motors South Africa. The
company has a fully equipped modern workshop
together with a team of qualified technicians that
guarantee efficient and professional services. Since
1997, the company has been providing quality motor
vehicle parts and spares for Opel, Isuzu, and Chev-
rolet motor vehicles. It supplies only the best spares
that meet strict specific standards and has excellent
after-sales services.
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