Country Profile

Zambia is a land-linked country in South-central Africa. It is situated on a high plateau and takes its name from the Zambezi River. It’s bordered by Angola, Namibia, Botswana, Malawi, Tanzania, Mozambique, Democratic Republic of Congo and Zimbabwe.

Zambia has an area of 752,610 sq km with its capital city being Lusaka. Zambia has a population of 20.87 million people (2024) and it's official language is English with Nyanja and Bemba being the main local languages.

General Information

Official name	Republic of Zambia
Capital	Lusaka
Area:	752,610 sq km (World bank)
Population (2024)	20.87 million (World meter)
Languages	English, Nyanja, Bemba
Currency	Zambian Kwacha (K)
GDP (current US$) (2022)	29.16 billion (World bank)
GDP per capita (current US$) 2022	1,456.9 (World bank)
GDP growth (annual %) 2022	5.2 (World bank)
Main Exports 2021	Raw Copper, Refined Copper, Gold, Precious Stones and Electricity (OEC)
Main imports 2021	Refined Petroleum, Nitrogenous fertilizers, Delivery Trucks, Copper Ore and Packaged Medicaments (OEC)

Economic Overview

Zambia’s economy rebounded in 2021 and 2022 with real GDP growing at 4.6% and 5% respectively from a contraction of 2.8% in 2020, supported by firmer copper prices, favourable external demand, good rainfall, and post-election market confidence.

Zambia’s recovery is expected to strengthen, with GDP growing by around 4.5% annually over 2023–25. Firmer copper demand from China and commencement of fertilizer production at a newly established domestic plant will broaden the base of GDP growth.

Further, completion of reforms to agricultural policies, business regulations, and the energy sector will boost fiscal sustainability and promote private sector-led growth.

Political and Legal Overview

Zambia has a parliamentary democracy with a presidential system of government where the President is both Head of State and Government. The president and members of Parliament are elected into office and the President appoints Cabinet Ministers from among elected and nominated Members of Parliament. Parliament, headed by the Speaker of the National Assembly, comprises 156 elected members and 10 Members nominated by the President.

The Supreme Court is the highest court of appeal and is headed by the Chief Justice. Zambia is a unitary republican state with the Executive, Legislature and the Judiciary operating as autonomous organs of Government.

Why Invest in Zambia?

Zambia has made strides in creating an enabling environment for trade and investment, attracting both local and foreign investments in various sectors of the economy. Zambia offers significant economic opportunities riding on its abundance in natural resources and policy initiatives, making the country the preferred trading and investment destination to both local and foreign investors.

Below are some of the factors that make Zambia an ideal trade and investment destination:

a) Availability of Natural Resources

Zambia is endowed with a wide range of natural resources attracting investment including copper, gold, cobalt, coal and emerald. Zambia has extensive surface of water resources including the Zambezi River providing major dams that generate hydroelectric power and serve as a significant supply of household water. Zambia has large deposits of limestone, which are located in the Lusaka region of the Central Province and in parts of the Eastern Province. The country also has significant coal resources and has been producing coal since 1967.

b) Wider Market Access

To increase trade and market accessibility, Zambia has signed various bilateral and multilateral agreements. Zambia is an active participant in the establishment of the Tripartite Free Trade Area between COMESA, SADC, and the East African Community (EAC). In February 2021, Zambia joined the African Continental Free Trade Agreement (AfCFTA) joining other African Union Member States to create a continent-wide single market. Zambia has also continued to benefit from duty-free and quota-free market access to the European Union (EU) through its Everything but Arms (EBA), and to the United States from the Generalized System of Preferences (GSP) and the African Growth and Opportunity Act (AGOA) agreements.

c) Attractive Fiscal and Non-Fiscal Incentives

Through ZDA, the government has continued with its quest to stimulate local investment by attracting both domestic and foreign investors through provision of strategic investment incentives. Through the ZDA Act, various fiscal and non-fiscal incentives are provided for to investors including allowances, exemptions and concessions.

d) Progressive Banking, Legal and Insurance Services

Zambia has progressive banking, legal, and insurance services of international standards. It has numerous domestic branches of international banks including Absa, Standard Chartered, CitiBank and Bank of China with strong and growing insurance sector for both life and non-life insurance products.

e) Favourable Investment Climate

Zambia remains one of the ideal trade and investment destinations in Africa as evidenced by rising FDI in a number of sectors beyond mining such as manufacturing, construction and energy. A lot of effort has been made by the government to improve the investment climate for both local and foreign investors. The government remains resolute to support trade and investment through continued infrastructure development in key sectors. Efforts are being made to increase power generation capacity through upgrading and construction of new generation facilities and use of alternative energy sources in addition to improving and expanding the rail network to reduce the burden placed on road infrastructure. Further, there are no foreign exchange controls since their abolishment in 1994 and no restrictions on the repatriation of interest, profit, dividends, management fees, technical fees, and/or royalties.

f) Investment Guarantees

Zambia offers investment guarantees and protection against state nationalization through the certificate of registration for investments under the ZDA Act 2006. Zambia is also a signatory to the Multilateral Investment Guarantee Agency (MIGA) of the World Bank and other international agreements. This guarantees foreign investment protection in cases of war, strife, disasters, and other disturbances, or in cases of expropriation. The ZDA also offers further security for investments in the country through the signing of the Investment Promotion and Protection Agreements (IPPAs).

Zambia Development Agency (ZDA)

ZDA is Zambia’s premier economic development Agency with a mandate of promoting and facilitating trade, investment and enterprise development in the country. The Agency is also responsible for building and enhancing the country’s investment profile for increased capital inflows, capital formation, employment creation and growth of the Medium Small and Micro Enterprise (MSME) Sector.

The Agency’s core functions include:

• Promoting investments through provision of information on investment opportunities and sources of capital;

• Facilitating investments through assisting investors in obtaining licences, permits, incentives and exemptions;

• Regulating and facilitating development of multi-facility economic zones and industrial parks in Zambia and monitoring their performance;

• Overseeing the privatization programme;

• Promoting and facilitating the development of MSMEs;

• Increasing Zambia’s capacity to trade;

• Undertaking economic and sector studies and giving advice to the Minister of Commerce, Trade and Industry;

• Encouraging public-public, private-private and private to public dialogue;

• Establishing a database of facilities and promoting accessibility to industry.

Investment Incentives

Fiscal Incentives

Investors who invest not less than US$500,000 (foreign investors) or $50,000 (local investors) in the Multi Facility Economic Zones (MFEZ) or a priority sector or product under the ZDA Act, are entitled to the following fiscal incentives:

• Zero percent import duty rate on raw materials, capital goods, machinery including trucks and specialized motor vehicles for five years;

• No withholding tax on management of fees, consultancy, and interest repayments to foreign contractors;

• Supplies to developers of MFEZ and industrial parks- zero rated;

• Foreign supplies to the MFEZ and industrial parks exempt from reverse VAT charge;

• Zero percent tax rate on dividends for companies operating in MFEZ for a period of 5 years;

• Zero percent tax rate on profits for companies operating in MFEZ for a period of 5 years; year 6-8 (50 percent of profits taxed); year 9-10 (75 percent of profits taxed.

Customs

• 0% customs duty on machines tools (including presses) for working metal by forging, hammering or die stamping: machine tools (including presses) for working metal by bending, folding, straightening, flattening, shearing, punching or notching: presses for working metal or metal carbides;

• 0% customs duty on machines, ceramics, concrete, asbestos cement or like mineral materials or for cold working glass, sawing machine and grinding machines;

• 0% customs duty on tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric motor. Drills of all kinds, Saws, Chain saws attract 5% customs duty;

• 0% customs duty on machinery and apparatus for soldering, brazing, welding, whether or not capable of cutting, other than:

1. Industrial laboratory electric furnaces & ovens;

2. Brazing or soldering machines, machines and apparatus for resistance welding of metal;

3. Electric capacitors, fixed, variable or adjustable.

• 0% Customs Duty on:

1. Automatic goods-vending machines;

2. Postage stamps, cigarette, food or beverage;

3. Presses for manufacturing of particle board of fiber;

4. Rope or cable making machines;

5. Industrial robots;

6. Mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring machines;

7. Machines & apparatus of kind used solely or principally for the manufacturing of semiconductor boules or wafer, semiconductor devices, electronic integrated circuits or flat panel displays: machines;

8. Electronic motors & generators (excluding generating sets) custom duty free;

9. Electric generating sets and rotary converters;

10. Electric transformers, static converters (rectifiers & inductors);

11. Electric accumulators, including separators therefor, whether or not rectangular:

    1. Lead-acid of a kind used for starting piston engines;

    2. Other lead acid accumulators;

    3. Lithium-ion;

    4. Nickel-ion;

    5. Nickel metal hydride.

12. Dry cleaning machines;

13. Machines for reeling, unreeling, folding, hitting or pinking textile fabric.

• 0% customs duty on machine tools for working any material by removing of material by laser or other light or photon beam, ultrasonic, electro-discharge, electro-chemical, electro - beam, ionic beam or plasma are processes water:

1. Lathes for removing metal;

2. Machines for working metal;

3. Machines-tools for drilling, boring, milling, threading or tapping by removing metal;

4. Machine tools for planning, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off and other machines;

5. Tools working by removal metal, or cermet.

• 0% customs duty on:

Cameras for underwater use-medical purposes; Electronic- cardiographs; Ultrasonic scanning apparatus; Magnetic resonance imaging apparatus; Scintigraphic apparatus; Electro – diagnostic apparatus; Ultra-violet or infra-red apparatus for medical surgical use - syringes used in medical, surgical, dental or veterinary sciences;

Dental drill engines; Instruments & appliance used in dental science; Other breathing, appliances and gas masks; Hearing acids; Pacemakers for stimulating heart muscles; Machines/ appliances for testing the hardness, strength of metal.

Priority Sectors Incentives

Agriculture

1. Guaranteed VAT input tax claim for four years prior to commencement of production for businesses in the agricultural sector that make taxable supplies;

2. Zero-rating of taxable agricultural products and supplies;

3. Increased number of zero-rated agricultural equipment and accessories;

4. VAT deferment on importation of some agricultural equipment and machinery;

5. Zero-rating of the principal amount on finance leases for purchasing agricultural equipment and accessories listed in the Value Added Tax Zero-Rating Order;

6. Income taxed at a reduced rate of 10%;

7. Farm improvement allowance at 100% on fencing, appropriate to farming and farm dwelling occupied by farm workers whose original cost is not in excess of K100,000;

8. Farm works allowance at 100% for the full cost of stumping and clearing, works for prevention of soil erosion, boreholes, wells, aerial and geophysical surveys and water conservation;

9. Dividends paid out of farming profit are exempt from tax for the first five years the distributing company commences farming;

10. Development allowance is given for any person who incurs expenditure on the growing of tea, coffee, or banana plant or citrus trees or other similar plants or trees. An allowance of 10% of such expenditure shall be deducted in ascertaining the gains or profits of that business;

11. Increased capital allowance rate to 100% from 50% for implements, plant and machinery used in farming and agro–processing;

12. Rural enterprises are entitled to a tax reduction of one-fifth (20%) of income for the first five charge years for which that business is carried on;

13. Manufacturers or agro-processors that utilise the prescribed agricultural products (Cassava, Pineapple, Mango, Tomato, Sorghum, Millet) are entitled to a local content allowance at the rate of 2%.

Manufacturing

1. Guaranteed input tax claim for two years prior to commencement of production;

2. Reduction of licence fees for manufacturers of excisable products from K9,000.00 to K4,500.00;

3. Income from organic and chemical manufacturing of fertilizers is taxed at a reduced rate of 15%;

4. Capital allowances on industrial buildings used for the purposes of manufacturing shall be entitled to a deduction of 10% in the case of low-cost housing and 5% for other industrial buildings of the cost of the building;

5. Persons who incur capital expenditure on an industrial building are entitled to claim a deduction called initial allowance at 10% of the cost incurred in the charge year in which the industrial building is first brought into use;

6. Any person who incurs capital expenditure on an industrial building is entitled to an investment allowance at 10% of such expenditure in the first year used for manufacturing purposes;

7. Suspended Corporate Income Tax for persons carrying on business of manufacturing ceramic products for the charge years 2022 and 2023;

8. Capital allowances at 50% of the cost of implements, plant and machinery.

Mining

1. Guaranteed input tax claim for ten years on pre-production expenditure for exploration companies in the mining sector;

2. Interest on which a deduction is not allowed (in excess of threshold) may be treated as incurred during the next charge year and carried forward for a period of ten years;

3. Tax losses shall be deducted from 50% of the income of the person from the mining operation provided that the losses shall not be carried forward beyond 10 subsequent charge years after the charge year in which the loss is incurred;

4. Any mining company holding a mining license carrying on the mining of base metals is taxed at 30%;

5. Dividends paid by a mining company holding a mining license and carrying on mining operations is taxed at 0%;

6. 20% mining deduction on capital expenditure on buildings, railway lines, equipment, shaft sinking or any similar works;

7. Allowable deduction of actual costs incurred by way of restoration and rehabilitation works or amounts paid into the Environmental Protection Fund pursuant to Section 86 of the Mines and Minerals Development Act 2015. 8.Mineral Royalty deductible for Corporate Income Tax assessment purposes;

8. Capital allowances at 50% of the cost of implements, plant or machinery used exclusively for mineral processing;

9. Zero rating of capital equipment and machinery listed in the Second Schedule of the Zero-rating Order when supplied to a holder of a large-scale mining licence.

Tourism

1. Zero-rating of VAT on other tourist services provided to foreign tourists other than those included in tour packages;

2. No import VAT on all goods temporarily imported into the country by foreign tourists;

3. Capital allowances at 50% of the cost of implements, plant or machinery;

4. Investment allowance at 10% of the cost of an extension to a hotel (being an industrial building);

5. 5% wear and tear allowance to an extension to a hotel (being an industrial building);

6. 10% initial allowance on an extension to a hotel (being an industrial building) in the year the building is first brought into use;

7. Income taxed at a reduced rate of 15% for hotels and lodges on accommodation and food services.

Export Incentives

Incentives for exporting companies include:

• Fifteen percent corporate tax instead of the normal tax bands;

• Special exemption from duty and VAT on imports and machinery is offered to exporters of non-traditional products.

General Incentives

1. Import VAT relief for VAT registered businesses on importations of eligible capital goods (VAT Deferment);

2. Zero-rating of VAT on export of taxable products;

3. Relief of VAT on transfer of business as a going concern.

4. Equal treatment of services for VAT irrespective of domicile of supplier (Reverse VAT);

5. Cash accounting for VAT for members of the Association of Building and Civil Engineering Contractors (ABCEC), intending traders and suppliers in the electricity sector;

6. Voluntary registration for compliant businesses whose taxable turnover does not exceed K800,000 per annum subject to conditions stated above;

7. Exemption of interest component of finance leases;

8. VAT relief on input tax paid for eligible purchases made by registered suppliers;

9. Income from non-traditional exports is taxed at a reduced rate of 15%. However, if the product is from farming or agro processing, the rate is 10%;

10. Exemption from income tax for approved collective investment schemes under the Income Tax Act, to the extent that the income is distributed to the participants in the approved collective investment scheme;

11. Zero-rate qualifying supplies to Public Benefit Organisations to provide tax relief;

12. No Withholding Tax on interest earned by individuals from savings or deposit accounts held with financial institutions such as banks or building societies. This is meant to encourage savings and to lessen the burden of taxation on individuals;

13. Reduced standard company tax rate of 30% for companies;

14. Reduced standard company tax rate of 30% for the first K250,000 income of an electronic communications network or service licensee but maintained tax rate of 40% for income in excess of K250,000.

Investment Opportunities

a) Agriculture

Agriculture contributes about 19 percent to GDP and employs three quarters of the population of Zambia. Zambia covers over 75 million hectares out of which 58 percent is classified as medium-to high-potential for agriculture production.

Opportunities include:

Cop production and commodity trading of: Cotton, coffee, soybeans, sugarcane, rice, cashewnuts and ground nuts, cassava, maize, sorghum, millet and horticultural and floricultural crops. Farm inputs and equipment supply,

Fish farming; Poultry farming.

b) Energy

The demand for electricity has been growing at an average rate of 3% per annum, mainly due to increased economic activity in the country, especially in the Agriculture, Manufacturing, and Mining sectors, respectively. The Country’s growing population has also led to an increase in the demand for other sources of energy such as petroleum and solar energy for transportation and domestic use.

Investment opportunities in the energy sector include:

• Hydro and coal electricity generation and transmission;

• Establishment of renewable energy facilities;

• Production of solar system components;

• Setting up isolated grid.

c) Mining

Zambia is the world’s seventh largest producer of copper that produced 861,946 metric tonnes in 2018 and holds six percent of the world’s known Copper reserves. Copper and Cobalt, the Country’s traditional exports, account for well over 70 percent of export earnings.

Opportunities exist in exploration, extraction and processing of:

Copper; Gold; Cobalt; Zinc; Lead; Iron Ore; Manganese;

Nickel; Platinum group elements; Gemstones; Industrial minerals; Energy minerals (uranium, coal and hydrocarbons).

d) Infrastructure

Infrastructure serves a central delivery mechanism in achieving sustainable economic development and in the generation of quality social-economic development in the country. Infrastructure still remains a major challenge to growth, economic diversification and human development in Zambia.

Opportunities exist in:

• Construction of runways, terminals and auxiliary facilities in and around airports such as hotels, shopping malls, conference facilities etc.;

• Roads;

• Railways.

e) Information and Communications Technology (ICT)

Zambian financial services companies and retailers have focused on developing the country’s burgeoning digital market, creating new opportunities in:

• Provision of retail fiber optic;

• Mobile internet service providers;

• Software development and sales;

• ICT business parks.

f) Tourism

Zambia stands out as one of the prime tourism destinations in Africa offering a wealth of natural tourism assets like waterfalls, lakes and rivers, wildlife protected areas and a tropical climate throughout the year. Zambia is home of the Victoria Falls, one of the Seven Natural Wonders of the World and UNESCO Heritage site. In addition, Zambia is endowed with a rich and diverse culture resulting in the occurrence of more than 30 colourful traditional ceremonies annually.

Opportunities exist in:

• Sports and entertainment activities such safaris canoeing, bungee jumping; nature walks, game drives, micro light flights; Sport fishing, rock-climbing and Orienteering;

• Packaging cultural ceremonies to local and foreign tourists;

• Movie tourism to display Zambian culture;

• Hotel infrastructure.

g) Agro-processing

The agro-processing sector in Zambia is one of the most important sectors that have experienced unprecedented growth in terms of production and export performance. This has been closely attributed to huge investment inflows in the various value chains as well as the enabling business environment.

Opportunities exist in:

Peanut butter production; Cashew nut processing; Animal or stock feed production; Cassava processing; Grain milling (Rrce, maize, wheat etc.); Edible oil production; Fruit canning and juice extraction;

Meat, dairy, leather and leather products; Fish processing; Cotton spinning and textiles; Bio-diesel production and ethanol production; and Honey processing; Potato and onion value addition; Establishment of cold chain facilities.

Staring a Business

Forms of Business

a) Sole Proprietorship

A sole proprietorship is formed by an individual who is liable for all the debts and obligations of the company.

b) Partnership

A partnership is formed when two or more persons agree to carry on a business for profit as co-owners. In Zambia, a partnership is not recognized as a separate entity for tax purposes. The taxable income of the partners is assessed separately based on the agreed ratios.

c) Company

Companies can be formed as Limited Liability Companies ('LLC'), either as private or public LLCs.

The key aspects of a Private LLC include:

• Shareholders' liability is limited to their contribution in the company;

• Minimum capital requirement is ZMW 15,000;

• Minimum 2 shareholders and 2 directors, of any nationality, are required;

• Minimum 1 director is required to be resident in the country;

• Shareholder and director can be an individual or a company; and

• Not permitted to offer shares to the public.

The key aspects of Public LLC include:

• Shareholders' liability is limited to their contribution in the company;

• Minimum capital requirement is ZMW 1.5 million;

• Minimum 2 shareholders and 2 directors, of any nationality, are required;

• Minimum 1 director is required to be resident in the country;

• Shareholder and director can be an individual or a company; and

• Shares can be offered to the public.

d) Foreign Company

A foreign company is a company already registered in another country. The law requires that at least one and no more than nine local directors be authorized to conduct and manage the affairs of the company in the Republic of Zambia. If the company has two such directors or more than two directors (but not more than nine), at least 50% of the directors should be resident in the Republic of Zambia.

Company Registration Process

Company registration is done online via the Companies Registration Agency (PACRA) electronic service.

The following steps are involved in starting a business in Zambia

a) Name Clearance

This is done by submitting an application for Name Clearance online through the Pacra portal. The applicant is required to propose at least three names in their application. An approved name is valid for 30 days. One can choose to register an approved name within 30 days or reserve the name for a further 90 days. An approved name that is not registered or reserved expires after 30 days.

Cost for Name clearance

• Business name – K83.00;

• Local Company – K90.00;

• Foreign Company – K200.00.

b) Register the Company

After name clearance has been approved, one needs to fill in an Application for Incorporation of a company (Companies Form 3) or Application for Registration of a foreign company (Companies Form 38). Other requirements include:

• Declaration of consent to act as a director or secretary; and

• 4 copies of the non-standard Articles of Association.

Upon registration one is issued with an incorporation certificate depending on the type of business.

Company Registration Fees

Registration of a private company limited by shares with minimum nominal capital k15,000	K975.00
Registration of a public company with minimum nominal capital k1,500,000.00	K38,100.00
Foreign companies form 38 - application for registration as foreign company	K4170.00
Foreign companies form 60 - notice of lodgement	K500.00

Fees vary depending on the service category. Click here for detailed fee schedule.

Other registrations

a) Tax Registration

Investors have to register with the Zambia Revenue Authority. In order to get a tax identification number, it is mandatory to file the Certificate of Incorporation.  

b) Social Security Registration

Investors have to register with the National Pension Scheme Authority. In order to be registered, investors must file the Certificate of Incorporation.

c) Investment Registration Certificate (optional)

To get an investment certificate, investors must invest at least $250,000.

The certificate is issued by the Zambia Development Agency after inspection of the premises, this basic control aiming to ensure that the use of the registered premises is consistent with the enterprise’s operation activities. Obtaining the certificate costs K14,916.

d) Fire Clearance Certificate

Companies have to get a fire clearance certificate. The certificate, issued by the relevant council in which the business activity takes place, is valid for one year and renewable.

e) Business Permit

Although the business permit is issued at the council level, the process is harmonised throughout the country. Applicable fees depend on the activity the investor will be carrying out and on the number of employees. Before obtaining the business permit, investors must have their business premises ready.

f) Sector Specific Licences

Other specific licences such as health clearance, licence to manufacture excisable goods food hygiene license etc. will be obtained depending on the business activity.

Taxation

Personal Income Tax

The rates of income tax applicable to an individual are as follows:

Comparison of Personal Income Tax Bands – Annual 

2024 CHARGE YEAR income bands	2024 RATES	2023 CHARGE YEAR income bands	2023 RATES
First K61,200	0%	First K57,600	0%
Above K61,200 up to K85,200	20%	Above K57,600 up to K81,600	20%
Above K85,200 up to K110,400	30%	Above K81,600 up to K106,800	30%
Above K110,400	37%	Above K106,800	37.5%

 

Comparison of Personal Income Tax Bands – Monthly  

2024 CHARGE YEAR income bands	2024 RATES	2023 CHARGE YEAR income bands	2023 RATES
First K5,100	0%	First K4,800	0%
Above K5,100 up to K7,100	20%	Above K4,800 up to K6,800	20%
Above K7,100 up to K9,200	30%	Above K6,800 up to K8,900	30%
Above K9,200	37%	Above K8,900	37.5%

Corporate Tax

The standard Corporate Income Tax (CIT) rate is 30 percent. However, the following sources of income are subject to different CIT rates:

Source of income	CIT rate (%)
Electronic communications networks or service licences	35
Farming	10
Profits from Public PPP Projects by SPVs for the first five years	15
Agro-processing	10
Agro-processing of corn starch in Multi Facility Economic zone or Industrial Park	0 (2023 to 2032) 5% (2033 to 2035) 2.5% (2036 to 2037) 10% (2037 onwards)
Export of non-traditional products from farming and agro-processing	10
Export of non-traditional products other than those relating to farming and agro-processing	15
Value addition to gemstones through lapidary and jewellery facilities	25
Hotels Lodges, Accommodation and food services	30 (previously 15)

Value Added Tax

The VAT rate is 16% and is applicable to supplies of standard-rated goods and services.

The export of goods and services from Zambia are generally zero-rated. However, exports of services rendered physically from a place of business in Zambia would be considered standard-rated supplies of services and would be subject to a 16% VAT rate, regardless of whether the consumer is a non-Zambian resident.

Withholding Tax

Payments of the following items of Zambian-source income may be subject to WHT. The relevant rates under domestic legislation are as follows:

Category of payment	Rate on payment to Zambian resident (%)	Rate on payment to non-Zambian resident (%)
Dividends	15	20
Interest	15	20
Interest from a Lusaka Securities Exchange listed Property Loan Stock Company	0	15
Interest from green bonds listed on Lusaka Securities Exchange with maturity greater than 3 years	0	0
Coupon income (interest) on government bonds	15	15
Management or consultancy fee	15	20
Royalties	15	20
Reinsurance	0	20
Commissions	15	20
Construction and haulage contractors	0	20
Public entertainment fees to entertainers/sports persons	0	20

Immigration Procedures

The Department of Immigration is responsible for issuance of work permits and visa for foreigners intending to visit and work in Zambia. Applications for visas and permits are conducted online through the eservices Zambia Immigration Department where one is able to apply, pay and obtain the permit.

Visa

Types of Visas

Purpose	Requirements
Business Visa Issued to foreigners coming to Zambia to transact business during their stay.	Passport sized photo; Passport copy of applicant; Cover letter on company letterhead with full address and contact numbers addressed to the Director-General;  Invitation from host company; and Certified copy of certificate of incorporation of host company.
Tourist Visa Issued to foreigners coming to Zambia for tourism purposes.	Passport sized photo; Passport copy of applicant; Cover letter from applicant addressed to the Director General which must be signed by the author; Hotel booking; Copy of return air ticket.
Ordinary Visitor Issued to all ordinary visitors.	Passport sized photo; Passport copy of applicant; Cover letter from host in Zambia addressed to the Director General which must include full physical address and phone number of host and must be signed by the author; Hotel booking (Optional); Copy of return air ticket; Status of host i.e., copy of NRC/Zambia immigration permit.
Transit Visa Issued to a foreign national who require visas to enter Zambia and is transiting through overland and shall be valid for a maximum period of seven (07) days.	Passport sized photo; Passport copy of applicant; Cover letter from applicant addressed to the Director General which must be signed by the author.

For Immigration permits and visa fee click here

 

Work Permits

a) Employment Permit 

This is issued to a foreigner who enters the country to take up employment for a period exceeding six (06) months. It can be extended for periods up to a maximum of 10 years. It is issued to a foreigner who is:

1) Employed by the Government of Zambia or a statutory body;

2) Employed by the private sector, Non-Governmental Organisations (including a person employed as a volunteer) or a religious organization; and

3) The spouse and children, over twenty-one years, of a foreigner may be issued with Employment Permits if they are to be employed in the family business.

Requirements for a new application

Cover letter from employer addressed to the Director General of Immigration; Employment contract or letter of offer; Police clearance from country of residence; Curriculum vitae; Registration certificate from the relevant professional body in Zambia (where required); Certified copy of qualifications (academic, professional); Copy of marriage and birth certificates (where available); Certified copy of valid passport (bio data & last endorsement stamp for Zambia); Certified certificate of share capital and list of directors; Prescribed fee.

Copy of succession plan which shall include an understudy training program to be conducted by the foreign national to transfer knowledge and/or skills to the Zambian worker; A copy of the Certificate of Incorporation; In the case of Construction, Mining Sector, ICT, Engineering and other project-based engagements, a cover letter specifying the project on which the expatriate would be employed, copy of letter of award specifying completion date and value of project must be submitted; Original Press advertisements which have appeared in two leading newspapers in A5 size. Name of Newspaper and date of advert should be clearly visible on the press advert and outcome of selection exercise must also be submitted; One recent passport size photograph; and

b) Investor Permit

An Investor’s Permit is issued to a foreigner (above the age of 18 years) intending to establish a business or invest in Zambia or who has established or invested in a business in Zambia, or is joining an already existing company.

Requirements

Cover letter addressed to the Director General of Immigration; Certificate of Incorporation; Certificate of share capital (where required); Certificate of minimum capital; Investment license from ZDA (where available); List of directors;

Proof of personal investment amounting to US$250,000 for a new business and US$150,000 if joining an existing company (bank statement, money transfer, ZRA Form CE20, showing description and value of goods/equipment); Proof of ownership or lease agreement in Zambia; Certified copy of valid passport (bio data & last endorsement stamp for Zambia); Two recent passport size photographs; and Prescribed fee

c) Temporary Employment Permit

This is issued to any business visitor who intends to remain in Zambia for a period exceeding thirty (30) days. The validity of the permit should not exceed six (6) months within a period of twelve (12) months.

Requirements

Cover letter from the institution doing business with applicant; Duly completed application form (Form 25); Certified copy of valid passport (bio data & last endorsement stamp);

One recent passport size photograph; and Prescribed fee.

d) Residence Permit

This confers permanent residence to a holder.

Requirements

1. Holders of Investor’s Permit;

Cover letter to Director General of Immigration; Aliens Registration Card; VAT/ZRA receipts/Valid ZRA Tax Clearance Certificate; Current bank statement; Audit report from a recognized firm registered with the Zambia Institute of Chartered Accountants (ZICA);

Title of ownership or lease agreement (where applicable); Certified photocopies of current passport (bio data & last endorsement stamp for Zambia); One recent passport size photograph; Prescribed fee; and Inspection report by Immigration (Only after submission of application).

2. Holders of Employment Permit

Cover letter to Director General of Immigration; Aliens Registration Card; Two reference letters; Certified copy of valid passport (bio data & last endorsement stamp for Zambia);

One recent passport size photograph; Contract of employment; Certified documentary proof of professional or other qualification; and Prescribed fee

Useful Contacts

Zambia Development Agency Privatization House,  Nasser Road P. O. Box 30819 Email: info@zda.org.zm Email: pr@zda.org.zm Tel: +260211 222858 Tel: +260 211 220177	Zambia Revenue Authority Kalambo Road, Lusaka Email: advice@zra.org.zm
Patent And Companies Registration Agency PACRA House Haile Selassie Avenue, Long Acres, P.O. Box 32020, Lusaka. Email: pro@pacra.org.zm Tel: +260 211-255127 Tel: +260211-255151	Department of Immigration Headquarters Kent Building Haile Selassie Road P.O. Box 50300 Lusaka, Zambia Email : support@zambiaimmigration.gov.zm  +260 211 428800  +260 211 252669,