Introduces new investment incentives
10 Nov 2022
On November 10, 2022, Zambia officially implemented the Investment Trade and Business Development Act (No. 18 of 2022). This legislation is overseen by the Zambia Development Agency (ZDA) and applies to investors who are venturing into specific sectors, industries, or regions within Zambia.
In particular, exporters of locally produced goods and services may qualify for incentives as per the discretion of the Minister of Finance. In addition, investors qualify for incentives under the Act when investing in a special economic zone, a business operating in a designated priority sector (as declared by the Minister), or within a rural area. Finally, investors become eligible for incentives under this Act when they invest:
- A minimum of $50,000.00 or its equivalent in convertible currency as a local investor.
- A minimum of $100,000.00 or its equivalent in convertible currency as a citizen-owned company.
- A minimum of $150,000.00 or its equivalent in convertible currency as a "citizen empowerment company".
- A minimum of $500,000.00 or its equivalent in convertible currency as a "citizen influenced company".
- A minimum of $1,000,000.00 or its equivalent in convertible currency.
According to the the Citizen Economic Empowerment Act of 2006, a “citizen empowerment company” means a company where twenty-five to fifty percent of its equity is owned by citizens; a “citizen influenced company” means a company where five to twenty-five percent of its equity is owned by citizens and in which citizens have significant control of the management of the company;
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Type:
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Promotion and facilitation (Investment incentives, Special economic zones)
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Industry:
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