Under Zambia Development Agency Act, a micro enterprise is defined as any business enterprise:

a. Whose amount of total investment, excluding land and buildings, does not exceed eighty million Kwacha.
b. whose annual turnover does not exceed one hundred and fifty million Kwacha
c. employing up to ten (10) persons.
d. Registered with the registrar of companies

A Small Enterprise is defined as any enterprise:

a. whose amount of total investment, excluding land and buildings, does not exceed:

i. in terms of manufacturing and processing enterprises between eighty million and two hundred million Kwacha in plant and machinery
ii. In the case of trading and service providing enterprises shall be up to one hundred and fifty million Kwacha

b. whose annual turnover shall be between one hundred and fifty million and three hundred million kwacha

c. employing between eleven and fifty persons

d. registered with the registrar of companies .

SUPPORT SERVICE DELIVERY

The following support services are offered.

Facilities

· Technology Transfer and development
· Facilitation of the development of Industrial or commercial estates
· Provision of training services in technical and business management skills
· Provision of marketing support services
· Provision of industrial and technological information
· Monitoring and coordinating activities in the micro and small enterprise sector

INCENTIVES

MSEs

An enterprise registered under the ZDA Act shall be entitled to the following incentives:-

a. Exemption from payment of tax on income for:

i. the first three years of operations for an enterprise operating in an urban area

ii. the first five years of operations for an enterprise in a rural area

b. Operating of a manufacturing enterprise for the first five years without a manufacturing licence required for such an enterprise under any law

c. Exemption from the payment of licensing fees required for such an enterprise under any law

d. Exemption from the payment of rates on factory premises for the five years

· Investors in Micro Sector Business Centres (MSBC)i. Investors under build and transfer schemeii. Investors under build, operate and transfer scheme MSE Division to acquire land and allocate to investors to developa. 200% deduction for expenses incurred by investors for building the MSBCb. 150% deductions for operational expenses incurreda. 150% deductions on expenses incurred by the corporation for the building and physical facilities providedb. 150% deductions for operational expenses S I to be issuedS I to be issuedS I to be issuedS I to be issued
iii. Investors under build, own and operate scheme a. The MSBC building qualifies for wear and tear allowance of 10% per year, of the cost plus an initial allowance of 20% of the cost in the first year of useb. Exemption from payment of rates for MSVC premisesc. Exemption from payment of tax on income received from rentals on such premises Amend ZDA Act
· Small Aggregation Initiative Acquisition of land and allocation to investors by MSE Division
· Vendor Development Schemes a. 100% deduction of expenses incurred for the purpose of enhancing technical skills of MSEsb. Any machinery and equipment acquired to improve MSE operations shall be exempted from customs duties and value added tax Yet to be provided for under ZDA (Investment) Act

Attachment: 

MSE Reg Appl form final.doc