Zambia Development Agency
The Zambia Development Agency (ZDA) is a semi-autonomous institution established in 2006 to facilitate economic growth and development through three main channels – investments, exports and small businesses. It was created under the Zambia Development Agency Act of 2006, amalgamating five statutory bodies, including the Zambia Investment Centre, Zambia Privatisation Agency, Export Board of Zambia, Small Enterprise Development Board and Zambia Export Processing Zones Authority. The ZDA serves as a one-stop agency providing incentives and other business facilitation support services to companies with ZDA licenses.
Companies may apply for a ZDA investment license, which affords generous incentives to investors depending on how much they invest:
More than $10 million: tax, duty, VAT and non-fiscal incentives – and can negotiate for additional incentives.
More than $500,000 in a Multi-Facility Economic Zone, an Industrial Park and/or in a priority sector or product: tax, duty, VAT and non-fiscal incentives.
Micro or small enterprises under the ZDA Act: tax incentives.
Less than $500,000 in a priority sector or product: general incentives only.
Any amount in a non-priority sector or product: general incentives only.
Investors who invest at least $250,000 are furthermore entitled to an investor’s permit to secure their immigration status in Zambia.
Foreign investors can own 100% of an enterprise registered in Zambia and may invest in any activity open to the private sector except arms production, security printing and the manufacture of dangerous substances. However, the ZDA does not normally issue investment licenses to foreign investors in trading and small-scale mining, as these sectors are reserved for local investors.