Investment Incentives

Investment Incentives

The Zambia Development Agency (ZDA) Act of 2006 and amended in 2014 offers a wide range of incentives in the form of allowances, exemptions & concessions for companies. The Act provides for investment thresholds to qualify for fiscal and non-fiscal incentives. There is only one categories of investors who can be considered for investment incentives under the ZDA Act, while the rest only receive non fiscal incentives.

Fiscal Incentives

These are Investments of US$ 500,000 and above in a Multi Facility Economic Zone, an Industrial Park,
a Priority Sector and investment in a Rural Enterprise under the ZDA Act.
Investors who invest not less than US$500,000 in the Multi Facility Economic Zones (MFEZ) or a priority sector or product under the ZDA Act, are entitled to the following fiscal incentives:

(i) Zero percent import duty rate on capital equipment and machinery including trucks and specialized motor vehicles for five years.
(ii) Accelerated depreciation on capital equipment and machinery including trucks and specialized motor vehicles for five years.

Non -Fiscal Incentives

These are Investments of not less than US$250,000 in in a Multi Facility Economic Zone, an Industrial Park,
a Priority Sector and investment in a Rural Enterprise under the ZDA Act, are entitled to the following non-fiscal incentives:
(i) Investment guarantees and protection against state nationalization;
(ii) Free facilitation for application of immigration permits, secondary licenses, land acquisition and utilities