RESTRICTED  
  
WT/TPR/S/340  
17 May 2016  
(16-2692)  Page: 1/90  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
ZAMBIA 
This report, prepared for the fourth Trade Polic y Review of Zambia, has been drawn up by the 
WTO Secretariat on its own responsibility. The Se cretariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Zambia on its trade policies 
and practices.  Any technical questions arising from this report may be addressed to Jacques Degbelo 
(Tel: 022 739 5583); Zheng Wang (Tel: 022 739 5288); and Michael Kolie (Tel: 022 739 5931). 
 Document WT/TPR/G/340 contains the policy statement submitted by Zambia. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review  Body on Zambia. This report was drafted in 
English. WT/TPR/S/340 • Zambia 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 6 
1   ECONOMIC ENVIRONMENT .......................................................................................... 9  
1.1   Main Features of the Economy ..................................................................................... 9  
1.2   Recent Econ omic Developments.................................................................................. 11 
1.3   Trade Performance ................................................................................................... 13 
1.4   Foreign Dire ct Invest ment ......................................................................................... 16 
1.5   Outlook ................................................................................................................... 17 
2   TRADE AND INVESTMENT REGIMES ........................................................................... 18  
2.1   Genera l Framework .................................................................................................. 18 
2.2   Trade Poli cy Objectives ............................................................................................. 19 
2.3   Trade Agreements and Arrangements .......................................................................... 20 
2.3.1   WTO ................................................................................................................... . 20 
2.3.2   Regional and pr eferential agreements ....................................................................... 21 
2.4   Investme nt Regime .................................................................................................. 23 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 27  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 27 
3.1.1   Customs procedures, valu ation, and rules of origin ..................................................... 27 
3.1.2   Tariffs ............................................................................................................... ... 29 
3.1.2.1   M FN tari ffs .........................................................................................................  29 
3.1.2.2   Preferential tariffs ............................................................................................... 32 
3.1.2.3   Tariff exempt ions and su spensions ........................................................................ 33 
3.1.3   Other charge s affecting imports ............................................................................... 33 
3.1.4   Import prohibitions, restrictions, an d licensing ........................................................... 34 
3.1.5   Continge ncy measures ........................................................................................... 34 
3.1.6   Governme nt procurement ....................................................................................... 34 
3.1.7   Standards and othe r technical requirements .............................................................. 37 
3.1.8   Sanitary and phyt osanitary requ irements .................................................................. 39 
3.2   Measures Directly Affecting Exports ............................................................................. 41 
3.2.1   Export procedur es and requirements ........................................................................ 41 
3.2.2   Export taxes, charges, an d levies ............................................................................. 41 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 41 
3.2.4   Export suppo rt and pr omotion ................................................................................. 41 
3.2.4.1   Expo rt promotion ................................................................................................ 41 
3.2.4.2   Export finance, insurance, and guarantees .............................................................. 42 
3.2.4.3   Multi-Facility Economic Zone s (MFE Z) .................................................................... 42 
3.2.4.3.1   Overview ........................................................................................................ 42 
3.2.4.3.2   Legisl ative fram ework ....................................................................................... 43 
3.2.4.3.3   Impact ............................................................................................................ 43 
3.3   Measures Affectin g Production and Trade ..................................................................... 43 WT/TPR/S/340 • Zambia 
 
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  3.3.1   Tax and incentives ................................................................................................. 43 
3.3.1.1   Tax regime ........................................................................................................ 43 
3.3.1.2   Incentives .......................................................................................................... 45 
3.3.2   Competition policy and price controls ........................................................................ 45 
3.3.2.1   Competition policy .............................................................................................. 45 
3.3.2.2   Pric e contro ls ..................................................................................................... 48 
3.3.3   State-owned enterprises, privatization, an d state trading ............................................ 49 
3.3.4   Intellectual property rights ...................................................................................... 50 
3.3.4.1   Overview ........................................................................................................... 50 
3.3.4.2   Indust rial property .............................................................................................. 52 
3.3.4.3   Copyright ........................................................................................................... 52 
3.3.4.4   IPR bills under consideration ................................................................................. 53 
3.3.4.5   Enforcement ....................................................................................................... 54 
4   TRADE POLICIES BY SECTOR ..................................................................................... 55  
4.1   Agriculture ............................................................................................................. . 55 
4.1.1   Main features ........................................................................................................ 55 
4.1.2   Policy ................................................................................................................ ... 55 
4.1.2.1   Overall objectives ............................................................................................... 55 
4.1.2.2   The Farmer Input Support Progra mme (FISP) ......................................................... 57 
4.1.2.3   The Food  Reserve Agency..................................................................................... 57 
4.1.2.4   Land policy ........................................................................................................ 58 
4.1.2.5   Trade policy measures ......................................................................................... 58 
4.1.3   Key sub-sectors ..................................................................................................... 59 
4.1.3.1   Crops ............................................................................................................... . 59 
Maize  ............................................................................................................................. 59 
Floriculture  ..................................................................................................................... 59 
4.1.3.2   Livest ock ...........................................................................................................  59 
4.1.3.3   Fisheries ........................................................................................................... . 60 
4.1.3.4   Forestry ............................................................................................................. 60 
4.2   Mining and Energy .................................................................................................... 61 
4.2.1   Overview ..............................................................................................................  61 
4.2.2   Key sub-sectors ..................................................................................................... 63 
4.2.2.1   Copper and cobalt ............................................................................................... 63 
4.2.2.2   Energy minerals .................................................................................................. 64 
4.2.2.2.1   Hydrocarbons .................................................................................................. 64 
4.2.2.2.2   Other energy minerals ...................................................................................... 66 
Uranium  ......................................................................................................................... 66 
Coal ...............................................................................................................................  66 
4.2.2.3   Electricity ........................................................................................................... 66 
4.3   Manuf acturi ng .......................................................................................................... 67 WT/TPR/S/340 • Zambia 
 
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  4.4   Services ................................................................................................................ .. 68 
4.4.1   Transport .............................................................................................................  68 
4.4.1.1   Railw ay tran sport ................................................................................................ 68 
4.4.1.2   Road  transport ................................................................................................... 69 
4.4.1.3   Air transport ....................................................................................................... 69 
4.4.2   Telecommunications ............................................................................................... 70 
4.4.2.1   Postal  sub-se ctor ................................................................................................ 71 
4.4.3   Financial services ................................................................................................... 71 
4.4.3.1   Banking and othe r credit inst itutions ...................................................................... 71 
4.4.3.2   Insura nce .......................................................................................................... 73 
4.4.4   Tourism ................................................................................................................ 74 
REFERENCES .................................................................................................................. 7 6 
5   APPENDIX  TABLES .................................................................................................... 77  
 
CHARTS 
 Chart 1.1 Composition of merc handise trade, 2008 and 2014 ................................................. 14
 
Chart 1.2 Direction of merchandise trade, 2008 and 2014 ...................................................... 15 
Chart 3.1 Distribution of MFN app lied tariff rates,  2008 and 2016 ........................................... 32 
Chart 3.2 Tariff escalation by  2-digit ISIC industry , 2016  ....................................................... 32 
Chart 4.1 Insurance sect or in Zamb ia, 2014  ........................................................................ 73 
 
TABLES 
 
Table 1.1 Selected macroeco nomic indicato rs, 2008-15  .......................................................... 9  
Table 1.2 Balance of payments, 2008-15 ............................................................................. 12 
Table 1.3 Trade in  services , 2008- 14 .................................................................................. 16 
Table 1.4 Foreign direct  investment, 2008-14 ...................................................................... 17 
Table 2.1 Main trade and investment-related legislation issued/amended/implemented 
since 2009 .................................................................................................................... .. 19 
Table 2.2 Zambia's notifications under th e WTO Agreements, Ja nuary 2009 - April 2016 ............ 20 
Table 2.3 Overview of Zambia's regional and preferential trad e agreemen ts, 2016 .................... 21 
Table 2.4 Registrati ons for bu sinesses................................................................................. 24 
Table 2.5 Zambia's double taxa tion avoidance agreements .................................................... 25 
Table 3.1 Summary of procedures and do cuments for trading across bord ers, 2016................... 27 
Table 3.2 Zambia's rules of origin ....................................................................................... 28 
Table 3.3 Structure of MFN ta riffs in Zambia , 2008 and 2016 ................................................. 29 
Table 3.4 Zambia's applied MFN tariff summary, 2016 ........................................................... 30 
Table 3.5 Public procurement approval au thorities and the publication thresholds ...................... 35 
Table 3.6 Government procurement methods ....................................................................... 36 
Table 3.7 Government procurement – local preferences ......................................................... 37 WT/TPR/S/340 • Zambia 
 
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  Table 3.8 Zambia's membership in a number of international stan dards organizations ............... 38 
Table 3.9 Standards and technical re gulations develope d in Zambia ........................................ 38 
Table 3.10 Import/exp ort certificates .................................................................................. 40 
Table 3.11 MFEZs ............................................................................................................ 42 
Table 3.12 Tax revenue, 2009-14 ....................................................................................... 43 
Table 3.13 Income tax ...................................................................................................... 44 
Table 3.14 Incentives ....................................................................................................... 45 
Table 3.15 Major differences between the old and the new competition legislation ..................... 46 
Table 3.16 Key characteri stics of th e CCPA .......................................................................... 47 
Table 3.17 Government shares in public enterprises, 2007 and 2015 ....................................... 49 
Table 3.18 Summary of the protection of  intellectual prop erty righ ts, 2016 .............................. 50 
Table 3.19 IPR stat istics, 2 010-15  ...................................................................................... 52 
Table 3.20 Major amendments to the Co pyright and Performa nce Rights  Act ............................ 53 
Table 3.21 Summary of the chan ges proposed in  the bills ...................................................... 53 
Table 4.1 List of selected laws re gulating agriculture in Zambia .............................................. 56 
Table 4.2 Livestock populati on and produc ts, 2008-14 .......................................................... 59 
Table 4.3 Mineral Rights in Zambia ..................................................................................... 62 
Table 4.4 Ownership of larg e-scale mines in Zambia ............................................................. 62 
Table 4.5 Copper and cobalt pr oduction in Za mbia, 2000 -14 .................................................. 63 
Table 4.6 Cost elements in the wholesale price ..................................................................... 65 
Table 4.7 Cost elements  in the pu mp price .......................................................................... 65 
Table 4.8 ZESCO's approved tariffs ..................................................................................... 66 
Table 4.9 Commercial banks' market share and performance indicators, as at 31 December 
2014 72 
Table 4.10 Tourists arrival to Zamb ia by category and origin , 2009- 13 .................................... 75 
 
APPENDIX TABLES 
 
Table A1. 1 Merchandise import s by product gr oup, 2008 -14 ................................................. 78 
Table A1.2 Merchandise exports by product group, 2008-14 ................................................... 79 
Table A1.3 Merchandise im ports by orig in, 2008- 14 .............................................................. 80 
Table A1.4 Merchandise export s by destinat ion, 2008- 14 ....................................................... 81 
 
 
Table A3. 1 MFN tariff averages  by HS2-digit level, 2016 ....................................................... 82 
Table A3.2 List of produc ts with export duties ...................................................................... 87 
Table A3.3 List of priority sectors ....................................................................................... 90 
 WT/TPR/S/340 • Zambia 
 
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  SUMMARY 
1. Since its last trade policy review in 2009, Zambia, a Least Developed Country (LDC), 
recorded relatively strong economic growth at an average rate of 6.6% per year up to 2015. 
According to the World Bank analytical classification, it became a lower-middle income country in 
2014, with a GNI per capita of US$1,680. This performance was mainly attributed to growing 
demand for copper (the main export product) and its spillover effects on some other sectors such 
as transport, communications, and wholesale and re tail trade. Buoyant construction activities and 
higher agricultural production also helped. GD P growth has however decelerated since 2013, due 
to technical difficulties in the mining sector; in particular, some unscheduled maintenance problems left a number of mines out of operation for several months. In addition, weaker global 
demand for copper further frustrated investments in mining. 
2. Zambia succeeded in lowering annual inflation from two digits to a one-digit level as from 
2010, but it has remained generally higher than the 6.5% target of the Bank of Zambia, and it even reached 10.1% in 2015. Indeed, high world prices of petroleum products, elimination of 
consumer subsidies, depreciation of the Za mbian Kwacha by some 50% over the period 
September 2014 to September 2015, and financing of  increasing public deficit by the Bank of 
Zambia have contributed to maintaining inflation high.  
3. In an attempt to curb inflation, the Bank of Zambia has implemented various measures. 
However, while the gradual increase in the policy rate from 9% in 2012 to 15.5% in November 2015 is likely to contribute to containing inflation, the elimination of the reserve requirement and liquid asset ratios may exert inflationary pressure. Moreover, falling international 
copper prices and high depreciation of the Kwacha  h a v e  n e g a t i v e l y  a f f e c t e d  Z a m b i a ' s  e x t e r n a l  
position, the country being a price taker for copper and a net food importer. As a result, the external current account has turned into deficit in recent years after registering surpluses up to 
2012. 
4. Zambia's ratio of trade in goods and services to GDP (82% in 2014) suggests that trade is 
important to its economy. Copper continues to be by far the top export earner (accounting for over 
70% of the value of merchandise exports). Its imports are more diversified and consist mainly of 
machinery, transport equipment, and oil and automo tive products. Africa is the leading source of 
Zambia's imports, with South Africa and the Democratic Republic of the Congo leading the way. Europe remains the top destination for its exports and, in particular, Switzerland, the single most 
important destination.  
5. Investment is regulated by the Zambia Development Agency Act that opens most activities 
to foreign investors. Zambia performed relatively well in attracting foreign direct investment: FDI 
inflows registered an almost fourfold increase from US$700 million to US$2.5 billion from 2009 to 
2014. However, FDI is largely destined to the mining sector, highlighting the lack of diversification in the economy. High costs of doing business, due to unreliable energy, difficult access to finance, 
high interest rates, and recent macroeconomic uncertainties (due to frequent tax policy changes in 
mining and exchange rate volatility) are among the main factors holding back the country's diversification efforts. 
6. Zambia has implemented several reforms aimed at improving its business environment and 
attracting foreign investment. In fact, an online  system was introduced for business registration 
and an e-registry was implemented. The registrati on time was reduced to less than 24 hours in 
areas where one-stop shops have been established. The Business Licensing Reform Committee 
recommended that, of the 517 licences identified as  affecting business operations in Zambia, 290 
be retained, 170 be eliminated, and the others be reclassified, merged, or converted. A Business Regulatory Review Agency was established in 2015 to review new proposals for licences, to ensure 
that only necessary licences are introduced and to increase the accountability of regulatory 
authorities.  
7. Zambia ratified the WTO Trade Facilitation Agreement in December 2015, and notified its 
Categories A, B, and C commitments in January 2016. Zambia is a member of both COMESA 
(Common Market for Eastern and Southern Africa), and SADC (Southern African Development 
Community). Negotiations on a Tripartite Free Trade Area (TFTA) between COMESA, SADC, and 
the EAC (East African Community) aim at creating a free trade area among the members of the WT/TPR/S/340 • Zambia 
 
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  three regional economic communities and addressing inconsistencies related to their overlapping 
membership. Zambia has also maintained preferenti al trade agreements with other countries. It is 
involved in negotiations on Economic Partnership Agreement (EPA) with the EU. As an LDC, Zambia is eligible for the Everything-But-Arms (EBA) initiative of the EU, and has duty-free and 
quota-free access to the U.S. market under AGOA. 
8. Zambia implements ASYCUDA World, and all customs declarations are conducted 
electronically. Difficulties in implementing the WTO Customs Valuation Agreement in Zambia are 
reportedly due mainly to frequent falsification of invoices by importers. Zambia bound tariffs on 
16.7% of all lines: tariffs on all agricultural products (WTO definition) are bound, as well as on 3.7% of all lines for non-agricultural products. The simple average of Zambia's final bound tariff rates is 105.9%. The applied MFN rates are much lower than the bound rates. Its average applied 
MFN tariff rate was reduced from 13.4% in 2008 to 12.9% in 2016: the simple average rate for 
agricultural products (WTO definition) fell from 19.1% to 18.9%, while that for non-agricultural products fell from 12.5% to 11.9%.  
9.  Recognizing that one obstacle for Zambian manufactured products to access global markets 
is the lack of adherence to systematic and internationally acceptable quality standards, the Government developed its National Quality Policy in 2011. It aims at establishing by 2020 a 
national quality infrastructure, to ensure locally-produced goods and services are recognized and 
accepted by Zambia's trading partners. By mid-September 2015, a total of 2,434 standards had been published in Zambia, of which 60% are adopted international standards, and the other 40% are Zambian standards based on international/regional/foreign standards or with a mix of source 
documents. About 2% are technical regulations. The SPS regime remained unchanged during the 
review period. COMESA has been assisting Zambia in identifying priorities for SPS investment, considering that resources are generally insufficient.  
10. Export taxes apply on a number of products including mineral ores and concentrates, waste 
and scrap metals, and some types of timber produc ts. According to the authorities, this is to 
encourage value addition within the country an d to control the stealing of copper. Export 
prohibitions apply to, inter alia , raw animal hides and skins, logs, and wood charcoal. The 
Government may restrict maize exports from ti me to time, for food security reasons.  
11. Zambia amended or enacted various trade-related laws over the period under review. It 
promulgated a new Competition and Consumer Protection Act in 2010, with a view to enhancing 
the predictability of the related enforcement mechan ism; however, sectoral regulators still play an 
important role in monitoring competition in their respective domains. The Copyright and Performance Rights Act was amended in 2010 with a view to better countering piracy, handling 
complaints, addressing offences and enhancing sanctions. Other IPR-related legislation remained 
unchanged, although five bills are under consideration on: trademarks, patents, industrial designs, layout designs, and traditional knowledge.  
12. The public procurement regime was reform ed in 2013: public procurement has been 
decentralized and the Zambia Public Procurement Authority (ZPPA) is no longer involved in proceedings. Nevertheless, the wide range of methods available to procuring entities and the large flexibility in their use suggest that transparency could be improved in the new regime. Currently, 
statistical data are not available on public procurement. The Government intends to develop an 
e-procurement system to address these weaknesses.  
13. Agriculture remains an important sector in Zambia, providing livelihood for over 70% of the 
population, and contributing 10% to GDP and to to tal export earnings. Maize, the country's staple 
food, together with seed cotton, sorghum, rice, mi llet, sunflowers tobacco, Irish potatoes, wheat, 
and soya beans remain the leading crops. The sector has a strong growth potential given the 
country's large fertile land and water resources endowment. Indeed, some 58% of Zambia's total 
land area is classified as having medium to high potential for agricultural production, but only 14% of agricultural land is utilized. The National Agriculture Policy pursues objectives of, inter alia , food 
security, a sustainable increase in productivity for major crops, and continuous improvement of 
access to export markets for Zambian agricultural products. A number of assistance programmes 
are in place to support mainly small-scale farmers and promote the participation of the private sector in agriculture.  WT/TPR/S/340 • Zambia 
 
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  14. Zambia is well endowed with copper and cobalt (over 97% of mineral exports), with mining 
still an important pillar of its economy. In recent years, this sector has been facing various challenges, including infrastructural constraints, uncertainties in taxation, and low international copper prices. However, the sector remains the main recipient of FDI in the country. 
15. Manufacturing remains underdeveloped. It is dominated by agro processing (over 63% of 
total manufacturing production), textiles and leather industries. Recognizing the fundamental role of the sector in Zambia's economic diversification strategy, the Government has implemented 
various support measures, such as the establishment of multi-facility economic zones (MFEZs) and 
industrial parks.  
16. Services, mainly finance, tourism, transport, and communication continue to be the 
backbone of the Zambian economy (approximately two-thirds of GDP). A number of constraints 
impede significant expansion of its international trade in services, with the country remaining a net 
services importer during the review period. The constraints include limited services supply capacity; an inadequate regulatory framework; ab sence of a national policy concerning services 
trade; and difficulties in translating regulatory frameworks into opportunities. Under the GATS, 
Zambia has bound market access in certain business services, construction and related engineering services, healthcare and social serv ices, and tourism and travel-related services.  
 WT/TPR/S/340 • Zambia 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Main Features of the Economy  1.1.  Zambia is a "landlinked" and least developed country (LDC); and its GNI per capita of 
US$1,680 in 2014 places it in the lower-middle-income country category.
1 The country has 
recorded some human development progress during the last decade, notably improvements in life 
expectancy at birth and education. According to the UNDP's 2015 Human Development Report, Zambia's Human Development Index (HDI) was 0.586 in 2014, positioning it at 139 out of 
188 countries and territories, and placing it in the medium human development category. 
However, there still remains a long way to go if Zambia is to achieve its ambitions to become a prosperous upper-middle-income country by 2030, as highlighted in its "Vision 2030". 
1.2.  A number of structural weaknesses leave the Zambian economy narrow-based and highly 
vulnerable. A large part of economic activity is supported only by copper mining. For example, the 
large predominant services sector is basically fuelled by mining activities, and supplemented by agriculture to a certain extent. In addition, a substantial part of construction activity takes place in 
mining.  
1.3.  Copper continues to be by far the top export  earner of the country, contributing over 70% of 
exports. Weak infrastructure, complex administ rative procedures, as well as weak access to 
finance and narrow market access opportunities, in a context of limited regional integration, 
impede strong and sustainable economic expansion. 
1.4.  The broad sectoral distribution of GDP did not change significantly during the review period 
(Table 1.1). The services sector is the largest contributor to GDP (approximately two-thirds of 
GDP), particularly banking, insurance, and communication services.  Beside its vital role as a 
primary source for livelihood in rural areas, agriculture also accounts for about 10% of GDP during the review period. Although manufacturing is re latively marginal, it offers opportunities for 
economic diversification. It consists of agro-processing (food and beverages), textiles and leather, 
secondary processing of metals, fertilizers,  chemicals, and construction materials. 
Table 1.1 Selected macroeconomic indicators, 2008-15 
 2008 2009 2010 2011 2012 2013 2014 2015a
Nominal GDP (current market prices, 
Zambian kwacha billion) 67.1 77.3 97.2 114.0 131.3 151.3 167.0 183.8
Nominal GDP (current market prices, 
US$ billion) 17.9 15.3 20.3 23.5 25.5 28.0 27.1 21.3
Real GDP growth (in 2010 constant 
prices) 7.8 9.2 10.3 5.6 7.6 5.1 5.0 3.2
GDP per capita (current US$) 1,365.7 1,134.8 1,456.1 1,635.6 1,724.8 1,839.5 1,726.0 ..
Population in million 13.1 13.5 13.9 14.3 14.8 15.2 15.7 ..
Unemployment rate (%)  15.6 14.8 13.2 13.2 13.1 13.1 13.3 ..
CPI percent change over corresponding 
period of previous year 12.4 13.4 8.5 6.4 6.6 7.0 7.8 10.1
GDP by the type of expenditure at 
current prices (% of GDP) 
Final consumption expenditures 69.8 68.8 64.0 62.3 65.5 63.2 60.7 ..
Government final consumption 10.4 10.0 6.6 6.6 8.9 9.2 9.2 ..
Private final consumption 59.5 58.8 57.4 55.7 56.5 54.0 51.6 ..
Gross capital formation 33.3 31.3 29.9 31.8 32.3 33.5 35.7 ..
Gross fixed capital formation, incl. 
valuables 29.4 27.5 25.9 27.2 24.5 25.6 27.6 ..
Changes in inventories 3.8 3.8 4.0 4.6 7.8 7.9 8.1 ..
Net export of goods and services -3.1 -0.1 6.2 5.8 2.2 3.3 3.6 ..
Exports of goods and services 29.5 29.2 37.0 40.0 42.7 43.5 42.8 ..
Import of goods and services 32.6 29.3 30.9 34.2 40.5 40.2 39.2 ..
Unbalanced sum .. .. 0.0 -5.4 1.8 -1.7 2.3 ..
GDP distribution at constant 2010 
basic prices (% of GDP) 
Primary sector 22.3 23.4 24.1 26.9 25.6 27.4 23.9 19.1
                                               
1 World Bank online information, "Data: Zambia". Viewed at: 
http://data.worldbank.org/country/zambia .  WT/TPR/S/340 • Zambia 
 
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   2008 2009 2010 2011 2012 2013 2014 2015a
Agriculture, forestry and fishing 12.7 11.7 10.5 10.6 10.1 9.1 9.6 8.5
Mining and quarrying 9.6 11.7 13.6 16.3 15.4 18.3 14.4 10.6
Secondary sector 24.4 23.3 21.9 21.1 19.4 17.4 18.6 23.3
Manufacturing 9.2 8.7 8.4 8.2 7.7 6.6 6.4 8.5
Electricity, gas, water 2.2 2.1 2.0 2.6 2.2 1.9 2.2 2.2
Construction 13.1 12.5 11.5 10.3 9.5 8.8 9.9 12.5
Tertiary sector 56.9 56.6 56.9 54.1 56.8 57.1 59.2 59.4
Wholesale and retail trade; repair of 
motor vehicles and motorcycles 19.9 19.5 19.4 21.0 21.0 23.4 23.8 24.4
Transportation and storage 6.7 7.2 6.3 4.7 4.6 3.6 3.9 3.7
Financial and insurance activities 5.5 5.0 4.4 3.5 3.3 3.2 3.1 3.2
Real estate activities 8.2 8.2 4.5 4.2 4.1 4.0 4.2 4.2
Information and communication .. .. 1.8 3.1 3.4 2.9 2.9 2.8
Education .. .. 7.4 7.1 7.5 7.7 8.7 8.2
Public administrati on and defence; 
compulsory social security .. .. 4.3 3.2 5.2 4.9 5.4 5.5
Public finance (% of GDP) 
Total revenues and grants  18.3 15.7 15.6 17.8 18.5 17.6 19.3 ..
Tax revenue  14.4 12.5 13.1 15.8 14.7 14.1 16.2 ..
Non-tax revenue  0.8 0.8 1.1 1.4 2.2 2.1 2.5 ..
Grants  3.1 2.4 1.4 0.6 1.7 1.4 0.6 ..
Total expenditures and net lending  19.5 17.9 18.1 19.6 21.6 24.0 25.5 ..
Current expenditure  16.0 15.0 15.5 16.8 18.6 19.3 21.1 ..
Of which wages and salaries  6.7 6.8 6.5 6.5 7.2 7.9 8.6 ..
Capital expenditure  2.9 3.0 2.6 3.4 3.3 3.6 4.4 ..
Net lending 0.6 0.0 0.0 -0.7 -0.3 1.1 0.1 ..
Fiscal balance  -1.2 -2.2 -2.5 -1.8 -3.1 -6.4 -6.2 ..
External sector (% of GDP, unless 
otherwise indicated) 
Current account balance -4.3 4.7 6.8 4.1 4.9 -0.8 2.1 -3.6
Net merchandise trade 2.6 6.3 13.7 9.8 6.3 5.9 6.0 -0.3
Merchandise exports 28.0 28.5 36.9 37.3 37.3 38.7 37.7 34.6
Merchandise imports 25.4 22.3 23.2 27.5 31.1 32.8 31.7 34.9
Services balance -1.2 -0.9 -1.6 -1.8 -1.3 -3.8 -2.9 -2.7
Merchandise exports (%age change)b ..-12.8 71.2 17.0 8.8 13.9 -5.7 -28.0
Merchandise imports (%age change)b .. -25.1 38.0 37.0 22.8 16.0 -6.5 -13.5
Service exports (%age change)b ..-14.5 8.0 16.6 48.8 -23.4 12.2 1.3
Service imports (%age change)b .. -19.5 32.2 23.1 22.0 36.2 -9.5 -12.9
Zambian kwacha/US$ (period average) 3.7 5.0 4.8 4.9 5.1 5.4 6.2 8.6
Real effective exchange rate (percentage 
change) 15.1 -14.2 5.8 -2.6 3.3 3.7 -4.0 -9.9
Nominal effective exchange rate 
(percentage change) 8.8 -22.6 0.4 -5.1 -0.1 -0.2 -8.3 -15.6
Total reserves (inc ludes gold, current 
US$ billion) 1.1 1.9 2.1 2.3 3.0 2.7 3.1 ..
Total reserves in months of imports 1.9 5.0 3.6 3.2 3.8 2.6 3.1 ..
Public debt 
Total central government debt, gross 
(end-period) c .. .. .. .. 25.5 28.5 35.1 ..
External .. .. .. .. 13.5 13.1 18.4 ..
Internal .. .. .. .. 12.0 15.4 16.7 ..
.. Not available. 
a Preliminary data. 
b Percentage change on merchandise and service trade are based on current US$. 
c Primary data for 2014. 
Note: GDP figures for 2008-2009 are based on online statistical information from the Zambian Central 
Statistical Office, while the remaining years, 2010-2015, are provided by the Zambian Ministry of Finance. 
Source: Statistical information provided by the Central Bank of Zambia and the Zambian Ministry of Finance; 
Zambian Central Statistical Office online stat istical information; African Development Bank, African 
Statistical Yearbook (2015) ; IMF, Country Report No. 15/152 , June 2015; IMF online information, 
"International Financial Statistics". Viewed at: http://data.imf.org/  [22 March 2016]; World Bank's 
World Development Indicators database. Viewed at: 
http://databank.worldbank.org/data/reports. aspx?source=World-Development-Indicators . 
 WT/TPR/S/340 • Zambia 
 
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  1.2  Recent Economic Developments 
1.5.  With an average rate of about 6.6%, Zamb ia's GDP growth performance was relatively high 
during the review period, although it remained  subdued in comparison to the 7% annual rate 
target pursued by the main national development plan.  
1.6.  The 2008 global economic and financial crisis  had very limited effects on GDP growth, as its 
rates increased steadily from 7.8% in 2008 to a peak of 10.3% in 2010. This favourable growth 
performance was attributed to growing copper demand by China and its spillover effects on 
construction, transport, communications, wholesale and retail. Construction activities were also 
boosted by the recent infrastructural developmen t stance undertaken by the authorities through 
several road construction projects. Furthermore, higher production in agriculture added to the overall output growth. The fast growing mobile industry also spurred the GDP growth momentum 
(Section 4).  
1.7.  Since 2011, GDP growth has decelerated, due to several headwinds in the mining sector 
(Table 1.1). In fact, reported technical difficul ties, in particular some unscheduled maintenance 
problems, left a number of mines out of operation for several months. In addition, weaker 
economic growth in China further fr ustrated investments in mining.  
1.8.  During the review period, due to various factors, inflation, measured by consumer price index 
(CPI), was generally higher than the Bank of Za mbia's medium-term target of 6.5% a year. The 
commodity price shocks of 2008 increased inflation beyond single digits in 2008 and 2009, as food products account for over 50% of the CPI basket. However, inflation declined to 8.5% in 2010, higher than the medium-term target; and further fell to 6.4% in 2011. The monetary policy stance 
was eased in late 2011 with a reduction in both the reserve requirement and liquid asset ratios 
from 8% in January 2011 to 5% between November 2011 and December 2012.
2  
1.9.  Inflation resumed an upward trend in 2012,  increasing from 6.6% in 2012 to 10.1% in 2015. 
Non-food inflation was the main contributing fact or to the inflation out-turn in 2013, completely 
offsetting the decline in food inflation. The increase in prices of non-food products, largely imported, was due to pass-through effects of depreciation of the kwacha (the national currency) 
against the US dollar. Part of the high inflation is also due to the Government's stance in 2013 of 
removing existing subsidy programmes, mainly for fuel and maize. In addition, pursuant to the Bank of Zambia Act, the Bank of Zambia (BoZ) is allowed to finance public deficit by up to 15% of government income of the previous year, and this is another source of inflation. According to the 
authorities, BoZ financing of the government defi cit was erratic during the review period, ranging 
between 0.2 and 2.9 billion Zambian kwacha. 
1.10.  In April 2012, the Bank of Zambia (BoZ) switched from reserve money targeting to 
targeting the policy rate. The policy rate was initially set at 9.0% and, under additional threats of 
inflationary pressures, was increased at end-2012 to 9.8% and ended 2014 at 12.5%. In November 2015, the rate was further increased to 15.5%.  
1.11.  Zambia's fiscal stance deteriorated gradually during the review period; and deficits have 
been financed through external and internal sources, including mainly BoZ, and substantial arrears accumulation. Public deficit increased by nearly  threefold between 2009 and 2014 from 2.2% to 
6.2%. Revenue forgone under several tax incent ive programmes was a persisting element of 
Zambia's widening public deficit. Furthermore, both recurrent and capital expenditures continued 
to rise as the authorities were engaged in programmes to increase wages in the public sector, as well as to build significant infrastructure throughout the country. Subsidies for fuel, maize and 
agricultural inputs also added to the fiscal deficit in recent years, namely between 2010 and 2013. 
The country's fiscal situation continues to face outstanding VAT refund claims, as well as some expenditure arrears consisting of pensions and capital expenditures. 
1.12.  The external position remained under pressure, in particular over the last two years. The 
current account was in surplus over most years of  the review period, reflecting positive export 
performance driven by strong copper demand. However, since 2013, falling copper prices and demand, and increasing imports combined with deprec iating currency have led to a slight deficit of 
                                               
2 IMF (2012).  WT/TPR/S/340 • Zambia 
 
- 12 - 
 
  the current account. The balance of services trade is traditionally in deficit, which has recently 
worsened due to increasing import demand for transport services (Table 1.2).  
1.13.  In the face of several challenges that the country faces, the authorities have recently rolled 
out strategic plans for its long-term development. In 2013, as an operational tool of Zambia's 
long-term Vision 2030, a Revised Sixth National Development Plan (R-SNDP) was developed to 
cover the period 2013-16. It identifies, inter alia , skills development, science and technology, and 
infrastructural development as the main drivers for achieving its objectives of rural development 
and job creation. International trade in goods and se rvices is clearly considered as an optimal tool 
for income generation, creation of decent jobs, prom otion of economic diversification, as well as an 
opportunity to overcome the constraints of limited endowments in capital and skills (Section 2). 
1.14.  Agriculture, manufacturing, energy, construction, tourism and mining are considered to be 
the key growth sectors in the R-SNDP. The Government is committed to creating a favourable 
business environment for these priority sectors; active incentive schemes are already in place in this regard (Section 3). Priority sectors are poised to mainstream cross-cutting issues such as HIV, 
gender, disability, environment and disaster risk  management into their key output indicators. 
Table 1.2 Balance of payments, 2008-15
 
(US$ million)  
  2008  2009  2010  2011  2012  2013 2014 2015a 
Current account, n.i.e. -768  714 1,377  958 1,248  -218 581 -768  
Balance on goods and services 243 815 2,456 1,872 1,251 590 832 -645 
Balance on goods 459 958 2,774 2,299 1,595 1,648 1,625 -74 
Goods: exports f.o.b. 5,013 4,372 7,483 8,754 9,521 10,843 10,220 7,362 
of which copper 3,687 3,179 5,768 6,660 6,294 6,911 7,619 5,234 
 cobalt 317 164 304 256 203 138 124 71 
 NTEs 928 953 1,260 1,690 2,852 3,558 2,272 1,849 
 gold 44 37 110 103 124 186 152 152 
Goods: imports f.o.b. 4,554 3,413 4,710 6,454 7,926 9,195 8,595 7,436 
Balance on services -216 -143 -317 -428 -344 -1,058 -794 -571 
Services: credit 619 529 571 665 990 758 851 862 
of which transportation 30 26 45 53 57 65 61 44 
 travel 542 474 492 555 518 552 642 660 
Services: debit 835 672 888 1,093 1,334 1,816 1,644 1,432 
of which transportation 439 345 474 666 825 937 903 825 
 travel 118 96 105 111 165 210 222 234 
 insurance & pension 
 services 26 19 27 93 115 116 116 114 
Balance on primary income -1,399 -419 -1,363 -1,157 -333 -1,153 -552 -349 
Credit 30 6 8 11 10 5 6 8 
Debit 1,429 424 1,371 1,168 344 1,158 558 357 
Balance on secondary income 389 318 283 244 330 345 301 227 
Credit 499 355 323 285 398 393 354 269 
Debit 110 37 39 42 68 48 52 42 
Capital account, n.i.e. 230 237 150 151 223 278 202 81 
Credit 230 237 150 151 223 278 202 81 
Debit 0 0 0 0 0 0 0 0 
Financial account, n.i.e. -393  601 1,564  970 1,268  277 463 -278  
Direct investment: net -939  -425  -634  -
1,110  -
2,433  -
1,691 -
3,195 -
1,724  
Portfolio investment: net 6 75 -74 -71 -899 -96 -1,197 -1,221 
Financial derivatives: net 0 -220 -226 154 11 -3 -25 18 
Other investment: net 540 1,171 2,498 1,996 4,590 2,067 4,879 2,649 
Net errors and omissions -14 -8 -27 -30 -32 -30 1 -24 
Overall balance 158  -342  65 -109  -171  247 -322 432  
Reserves and related items -158  342 -65 109 171 -247 322 -432  
Reserve assets 29 783 138 270 290 -206 315 -446 
Credit and loans from the IMF 16 242 55 27 -5 -15 -29 -14 
Exceptional financingb 171 198 148 134 124 57 23 0 
a Preliminary data. 
b Exceptional financing includes budget support grants. 
Source: Information provided by the Zambian authorities. WT/TPR/S/340 • Zambia 
 
- 13 - 
 
  1.15.  International reserves, measured by months of imports, remained under the Government's 
medium-term target of four months of imports. The sharp drop in reserves in 2013 was attributed 
to the BoZ's support in the foreign exchange market to counter further depreciation. However, lower import demand for capital goods in 2014, in the context of weak investments in mining, has 
contributed to the building up of international reserves.  
1.16.  The stock of government debt, as a percen tage of GDP, increased remarkably between 2012 
and 2014 from 25.5% to 35.1%, driven to a larg e extent by its external component. The 2014 
hike in external debt stock was mainly associated with the issuance by the Government of a 
US$1 billion Eurobond.
3  
1.3  Trade Performance  1.17.  Trade in goods and services grew steadily during the review period, from over US$8 billion 
in 2009 (58% of GDP) to some US$21 billion in 2014 (82% of GDP).  
1.18.  The value of imports more than doubled, up from US$4 billion in 2009 to some 
US$10 billion in 2014, with a significant share attributed to manufactures (over 60% of import 
value on average), as the kwacha has recently de preciated significantly (Section 1.2). The broad 
composition of imports remained mainly unchanged. Machinery and transport equipment, oil products, and automotive products are the main import categories (Chart 1.1 and Table A1.1). 
1.19.  Zambia's main exports are traditionally copper products, whose share in total exports 
further expanded between 2008 and 2014 from 41.1 % to 73.3. Agrifood products, chemicals, and 
certain semi-manufactures are also exported in subs tantial quantities (Chart 1.1 and Table A1.2).  
1.20.  Africa is the leading source of Zambia's  imports, with South Africa and the Democratic 
Republic of the Congo (DRC) leading the way. With  shares averaging some 10% of Zambia's total 
imports, the EU and Middle East countries are also noticeable exporters to Zambia (Chart 1.2 and Table A1.3). During the review period, China became an increasingly important source for 
Zambia's imports with its share almost doubling, up from 4.7% in 2009 to 9% in 2014. 
1.21.  Europe remains the top destination for Zambia's export products, by accounting for nearly 
half of its total exports. Switzerland is by far Zambia's single most important export destination, 
with a record high in 2010, when it absorbed 51% of its total exports (Chart 1.2 and Table A1.4). 
Like in the case of imports, China has become a significant market for Zambian products, with shares increasing from 11.2% to 18.5% between 2009 and 2014. 
                                               
3 KPMG (2014).  WT/TPR/S/340 • Zambia 
 
- 14 - 
 
  Chart 1.1 Composition of merchandise trade, 2008 and 2014 
(%) 
2008 2014
(a)    Exports  (f.o.b.)
Ores and other 
minerals
15.3%Manufactures
12.5%
Ores and other 
minerals
1.5%Manufactures
12.8%
Mining
77.1%Other
1.4%
Agriculture
8.8%
Non-ferrous metals
74.5%Fuels
1.1%
Total:  US$5.1 billion Total:  US$9.7 billion  
(b)    Imports (c.i.f.)
Chemicals
15.0%Transport 
equipment  
10.2%
Manufactures
64.0%Other manf.
4.9%
Electrical 
machines
6.4%Non-ferrous 
metals
2.3%
Mining
29.1%
Iron and steel
3.9%Non-electrical 
machinery
15.9%Fuels
16.0%Ores and other 
minerals
10.7%
Chemicals
13.5%Iron and 
steel
2.9%Fuels
14.0%Mining
31.3%Agriculture
5.3%
Non-electrical 
machinery
16.0%Transport 
equipment  
8.9%
Electrical 
machines
6.9%Other
0.1%
Other semi-
manufactures
10.4%Other manf.
4.7%
Ores and other 
minerals
17.0%
Non-ferrous 
metals
0.3%Agriculture
6.0%
Manufactures
63.2%
Total:   US$5.1 billion Total:  US$9.5 billion Other
0.9%Mining
80.3%
Other semi-
manufactures
7.8%Other
0.6%
Agriculture
6.7%
Non-ferrous metals
64.2%Fuels
0.7%
 
Source: WTO Secretariat calculations, based on UNSD Comtrade da tabase (SITC Rev.3). WT/TPR/S/340 • Zambia 
 
- 15 - 
 
  Chart 1.2 Direction of merchandise trade, 2008 and 2014 
(%) 
2008 2014
(a)    Exports (f.o.b.)
EU (28)
2.5%
China 
18.5%
Middle
East
2.4%
D.R.Congo
8.3%Africa
22.4%Other  Asia
9.2%
Switzerland
44.7%
South Africa
7.0%Asia
27.7%
Other Africa
7.2%Other 
0.4%
Total:  US$5.1 billion Total:  US$9.7 billion
(b)    Imports (c.i.f.)
Africa 
60.8%EU (28) 10.1%
Kenya
1.6%
D.R. Congo
10.6%Americas 2.3%
South Africa
42.6%China 4.5%Other Asia 8.7%
Middle East
12.7%Other 
0.9%
Other Africa 
6.1%EU (28) 8.7%
Kenya
8.1%
D.R. Congo
15.3%Americas 2.6%
South Africa
32.4%China 9.0%Other Asia 11.7%
Middle East
5.8%Other 
0.7%
Other Africa 
5.7%Africa 
61.5%Asia
20.7%
Total:   US$5.1 billionTotal:   US$9.5 billionAsia
13.2%China 
5.6%Middle
East
3.2%
D.R.Congo
5.6%EU (28)
6.4%
Africa
28.2%Other 
Asia
6.3%
Switzerland
49.8%
South Africa
10.4%Asia
11.9%
Other Africa
12.2%Other 
0.5%
 
Source: WTO Secretariat calculations, based on UNSD Comtrade database. 
1.22.  Zambia's services trade balance is tradit ionally in deficit. Services exports are highly 
concentrated, and dominated by travel services (T able 1.3). Imports are more diversified and they 
are mostly associated with mining activities. Tran sport, travel and construction services are the 
main components. WT/TPR/S/340 • Zambia 
 
- 16 - 
 
  Table 1.3 Trade in services, 2008-14 
(US$ million and %) 
  2008 2009 2010 2011 2012 2013 2014 
Credit (US$ million) 619 529 571 665 990 758 851 
  (% of total) 
 Manufacturing services on physical inputs 
 owned by others .. .. .. .. 1.4 .. .. 
 Maintenance and repair services n.i.e. .. .. .. .. .. .. .. 
 Transport 4.9 5.0 7.8 7.9 5.8 8.5 7.2 
 Travel 87.7 89.7 86.1 83.4 52.3 72.8 75.4 
 Business 36.6 40.5 46.5 47.5 28.8 41.3 42.8 
 Personal 51.0 49.2 39.6 35.9 23.5 31.5 32.6 
 Other services 7.5 5.3 6.0 8.7 40.6 18.7 17.4 
 Construction services .. .. .. .. .. .. .. 
 Insurance and pension services 1.6 1.1 1.3 1.1 34.1 9.9 9.3 
 Financial services 1.5 .. .. .. .. .. .. 
 Charges for the use of intellectual property 
 n.i.e. .. .. .. .. .. .. .. 
 Telecommunication, computer, and 
 information services 3.9 3.6 4.0 3.9 2.8 3.9 3.7 
 Other business services 0.5 0.6 0.7 0.6 0.5 0.6 0.6 
 Personal, cultural, and recreational 
 services .. .. .. 3.0 3.2 4.3 3.8 
 Government goods and services n.i.e. .. .. .. .. .. .. .. 
Debit (US$ million) 835 672 888 1,093 1,334 1,816 1,644 
  (% of total) 
 Manufacturing services on physical inputs 
 owned by others .. .. .. 0.0 .. 0.1 0.1 
 Maintenance and repair services n.i.e. .. .. .. 1.2 1.3 0.7 0.8 
 Transport 52.6 51.4 53.4 60.9 61.8 51.6 54.9 
 Passenger 5.5 7.0 7.0 10.3 10.4 8.1 9.5 
 Freight 43.1 40.1 41.8 46.7 48.1 40.9 42.3 
 Other (including postal and courier) 4.1 4.3 4.5 3.9 3.4 2.6 3.1 
 Travel 14.1 14.3 11.8 10.1 12.4 11.5 13.5 
 Business 9.9 10.0 8.2 7.1 8.7 8.1 9.5 
 Personal 4.2 4.3 3.5 3.0 3.7 3.5 4.1 
 Other services 33.3 34.4 34.8 27.8 24.5 36.1 30.7 
 Construction services 18.0 17.7 17.6 7.1 3.6 3.1 3.2 
 Insurance and pension services 3.1 2.9 3.0 8.5 8.7 6.4 7.1 
 Financial services 0.5 0.6 0.6 0.5 2.2 1.1 1.9 
 Charges for the use of intellectual property 
 n.i.e. 0.2 0.1 0.1 0.3 0.3 0.1 0.1 
 Telecommunication, computer, and 
 information services 1.5 1.8 1.6 2.9 1.0 1.9 2.4 
 Other business services 6.0 6.0 7.0 4.2 5.2 20.7 12.8 
 Personal, cultural, and recreational 
 services 0.5 0.6 0.6 0.4 0.3 0.2 0.2 
 Government goods and services n.i.e. 3.6 4.7 4.4 3.8 3.3 2.5 3.0 
.. Not available. 
Source: IMF online information, "IMF Balance of Payments Statistics (BOP)". Viewed at: http://data.imf.org/ .  
1.4  Foreign Direct Investment 
1.23.  During the review period, Zambia performe d relatively well in terms of foreign direct 
investment (FDI). The inflows registered an almost fourfold increase from nearly US$700 million to US$2.5 billion between 2009 and 2014. As a consequence, the inward stocks of FDI firmed up 
during the same period by doubling in value (Table 1.4). Switzerland, Canada, South Africa, and 
the United Kingdom are the main investor countries in Zambia. WT/TPR/S/340 • Zambia 
 
- 17 - 
 
  Table 1.4 Foreign direct investment, 2008-14  
(US$ million and %) 
  2008 2009 2010 2011 2012 2013 2014 
FDI inflows 939  695  1,729  1,110  2,433  1,810  2,484  
FDI inward stock 8,222  8,880  9,957  8,394  11,048  12,525  15,009  
FDI inward stock (% of GDP) 45.9  57.9  49.1  35.4  44.3  46.7  55.5  
FDI outflows 0  270  1,095  -2  -702  66  -213  
FDI outward stock 971  1,280  2,531  2,530  1,409  2,630  2,417  
FDI outward stock (% of GDP) 5.4  8.3  12.5  10.7  5.6  9.8  8.9  
Source: UNCTAD (2015), World Investment Report , Geneva; UNCTAD, UNCTAD STAT. Viewed at: 
http://unctad.org/en/Pages/Statistics.aspx ; and the Zambian Central Statistical Office. 
1.24.  Zambia's FDI is largely destined for the mining sector. This highlights the lack of 
diversification in the whole economy. High costs of doing business, due tounreliable energy, weak 
access to finance, high interest rates, and macroeconomic uncertainties are among the main factors holding back the country's diversification efforts. 
1.5  Outlook 
1.25.  The IMF estimates show that Zambia's growth potential remains strong. In the medium 
term, the economy is poised to continue growing at least at the same pace as in 2014. Inflation is 
expected to pick up in the short term, as a consequence of a depreciating kwacha. However, in the 
medium term, and conditional to strict monetary discipline, annual inflation rates are projected to decline gradually to 5%.
4  
1.26.  Given Zambia's vulnerability, the positive outlook on the economic performance may suffer 
from a certain number of downside risks. These in clude the persisting depreciation of the Kwacha, 
as well as the fragile international economic environment, which may hurt demand for copper products. According to the BoZ, over the next five years the current account is projected to 
improve, recording increasing surpluses in each successive year beginning with a surplus of 
US$21.5 million in 2016 and ending with a surplus of US$1,814.1 million in 2020. The positive outlook is premised on improved earnings from the traditional exports particularly a recovery in 
copper export earnings as well as an increase in th e export of services, specifically travel services. 
 
                                               
4 IMF (2015). WT/TPR/S/340 • Zambia 
 
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  2  TRADE AND INVESTMENT REGIMES 
2.1  General Framework 2.1.  Zambia is a multi-party State. In January 2016, the Constitution of Zambia was amended.
1 
Major changes include new election arrangements  and the establishment of a Constitutional 
Court.2 Under the Constitution, the legislative power is vested in the Parliament, which consists of 
the President and the National Assembly. The Parlia ment enacts legislation through bills passed by 
the National Assembly and approved by the Pr esident. The National Assembly consists of 
156 directly elected constituency-based members and not more than eight nominated members 
(Article 68).  
2.2.  The executive power is vested in the President who is also the Head of State and 
Government. Both the President and the Vice-Presi dent are members of the Cabinet, which also 
consists of an Attorney-General and ministers. The President may, inter alia : establish, merge and 
dissolve government ministries subject to approval by the National Assembly; negotiate and sign international agreements and treaties and, subject to approval by the National Assembly, ratify or 
accede to international agreements and treaties; and initiate bills for submission to, and 
consideration by, the National Assembly. Article 120 of  the Constitution stipulates that the judicial 
authority vests in the courts, consisting of the superior courts, subordinate courts, small claims 
courts, local courts and other prescribed courts.  
2.3.  In descending order of importance, the Cons titution is followed by laws and ministerial and 
administrative decisions. Since the previous Review, there have been no changes to the legislative procedures. A Member of Parliament or minister may introduce a bill to the National Assembly for 
adoption. The President, within 21 days of receipt of the bill, must approve it or refer it to the 
National Assembly for reconsideration. After the President's approval, the bill becomes law immediately. The law must then be published in the Government Gazette.  
2.4.  Treaties and international agreements concluded by Zambia have legal power in national 
courts if they are domesticated. In case of conflict, domestic laws take precedence; the Customs and Excise Act is an exception to this. Article 83 of this Act stipulates that international 
agreements take precedence in case of conflict.  
2.5.  Zambia has made considerable progress in the fight against corruption during the review 
period, and its rank in the Corruption Perception Index jumped from 99
th in 2009 to 76th out of 
175 countries in 2015.3 The legal and institutional frameworks against corruption have been 
strengthened, and efforts have been made to reduce red tape and streamline bureaucratic 
procedures, as well as to investigate and prosecute corruption cases, including those involving high-ranking officials. Despite all these efforts, corruption remains a serious issue in Zambia;
4 the 
World Economic Forum identified corruption as the second most problematic factor for doing 
business in Zambia (following access to financing).5  
2.6.  Trade and industrial policies are formulat ed and executed by the Ministry of Commerce, 
Trade and Industry (MCTI). The MCTI has several implementing agencies under it, including the 
Zambia Bureau of Standards, the Zambia Development Agency, and the Consumer Protection and Competition Commission.  
2.7.  The MCTI formulates trade policies and ma kes policy decisions in consultation with the 
relevant stakeholders. The current guiding docume nt on trade policy – the Commercial, Trade and 
Industry Policy (CTI) – was adopted in 2010. Tr ade policy formulation, monitoring, and review 
                                               
1 Constitution of Zambia (Amendment) Act 2016. Viewed at: 
http://www.parliament.gov.zm/sites/default/files/documents/amendment_act/Constitution%20of%20Zambia%
20%20(Amendment),%202016-Act%20No.%202_0.pdf . 
2 Bloomberg Business , "Zambian Constitution Changes Set Rule s for August Elections", 5 January 2016. 
Viewed at: http://www.bloomberg.com/news/articles/2016-01-05/zambian-constitution-changes-set-rules-for-
august-elections . 
3 Transparency International on line information. Viewed at: 
https://www.transparency.org/country/#ZMB . 
4 Transparency International on line information. Viewed at: 
https://www.transparency.org/country/#ZMB . 
5 World Economic Forum (2015). WT/TPR/S/340 • Zambia 
 
- 19 - 
 
  within the National Development Plan are conducted by technical working groups on trade. To help 
in the formulation of trade related policies and negotiation strategies, MCTI has a National Working Group on Trade (NWGT), which consists of representatives from other government ministries including the ministries in charge of agriculture, livestock and fisheries, justice, finance, tourism, 
and the Zambia Revenue Authority, as well as stakeholders from the private sector such as the 
ZNFU (Zambia National Farmers Union), ZACCI (Zambia Chamber of Commerce and Industry), ZCSMBA (Zambia Chamber of Small and Medium  Business Associations), and ZAM (Zambia 
Association of Manufacturers). The private sector is involved in formulating trade policies on a 
de facto  basis. For specific trade issues, the NWGT forms subcommittees which make 
recommendations. 
2.8.  The main legislation on international trade remains the Customs and Excise Act (on the 
management of customs duties and excise taxes) and the Control of Goods Act No. 12 of 2004 (on 
the general trade procedures). Since the previous  Review in 2009, a number of trade-related laws 
have been issued, amended, or revised (Table 2.1). 
Table 2.1 Main trade and investment-related  legislation issued/amended/implemented 
since 2009 
Subject Legislation  
Competition policy Competition and Co nsumer Protection Act No. 24 of 2010 
Standards National Quality Policy of 2011 
Business regulation Business Regulatory Act of 2014 
Privatization Public-Private Partnership Act of 2009 
Industrial property rights Five bills are under consid eration, concerning:  tradem arks, patents, industrial 
designs, layout designs, and traditional knowledge  
Copyrights Copyright and Performance Rights Act amended in 2010 
Government procurement  Government Procurement Regulation of 2011 
Fisheries  Fisheries Act No. 22 of 2011 
Agriculture credit Agriculture Credit Act No. 23 of 2010 
Dairy Dairy Industry Development Act No. 22 of 2010 
Agriculture Animal Identification Act No. 28 of 2010 
Agriculture Animal Wildlife Act of 2015 
SPS Animal Health Act No. 27 of 2010 
SPS Veterinary and Veterinary Para-Professional Act No. 45 of 2010 
Tourism Tourism and Hospitality Act of 2015 
Copyright Copyright and Performance Rights Act (amended in 2010) 
ICT Information, Communication, and Telecommunications Act of 2009 
E-commerce Electronic Communication and Transaction Act of 2009 
Postal services Postal Services Act of 2009 
Mines and minerals Mines and Minerals Development (Amendment) Act of 2015 
Source: Information provided by the authorities. 
2.2  Trade Policy Objectives 
2.9.  The Zambian Vision 2030, released in 2006, aims to build Zambia into a prosperous 
middle-income nation by 2030. The detailed government action plan is specified in the Revised 
Sixth National Development Plan 2013-2016, which focuses on capital investment areas, aiming 
at, inter alia , rural development and job creation.  
2.10.  According to the Commercial, Trade and Indu stry Policy (CTI) of 2010, the overall vision of 
Zambia's trade policy is to: develop an enabling economic environment which supports private 
investment and the development of domestic productive capacities, and contributes to the 
expansion of Zambia's international trade.6 Zambia's trade policy aims to: 
a. stimulate and encourage value-addition acti vities on primary exports as a means of 
increasing national export earnings and creating employment opportunities; 
                                               
6 MCTI (2010), Commercial, Trade and Industrial Policy , January, Lusaka.  WT/TPR/S/340 • Zambia 
 
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  b. transform the economy into a diversified and competitive economy that is well 
integrated into the international trading environment; 
c. stimulate investment flows into export-oriented areas in which Zambia has comparative 
advantages, as a strategy for inducing innovation and technology transfer in the national 
economy; 
d. support the effective development and utilization of domestic productive capacities so as 
to increase output and expand employment opportunities; 
e. facilitate the acquisition of modern technolo gy to support value addition and industrial 
processes by domestic firms; 
f. facilitate public and private investment in infrastructure to support improvements in the 
quality and standards of Zambian products; 
g. assist domestic firms to increase their levels of efficiency and competitiveness, and 
therefore withstand increasing competition in domestic and international markets. 
2.3  Trade Agreements and Arrangements 
2.3.1  WTO 
2.11.  Zambia is an original Member of the WTO, and accords at least MFN treatment to all its 
trading partners. Zambia is not a signatory to the Information Technology Agreement (ITA) or the 
Government Procurement Agreement (GPA). Zambia encounters difficulties in meeting its 
notification obligations (Table 2.2); by the end of September 2015, Zambia had 21 outstanding notifications in the WTO Central Registry.
7  
Table 2.2 Zambia's notifications under th e WTO Agreements, January 2009 - April 2016 
WTO agreement Subject WTO document and date 
Agreement on Agriculture 
Article 18.2 Domestic support  G/AG/N/ZMB/8, 4 September 2013 
Articles 10 and 18.2 Export subsidies G/AG/N/ZMB/7, 12 March 2012 
Agreement on Subsidies and Countervailing Measures and Article XVI:1 of GATT 1994 
Article 25 Notification of subsidies G/SCM/N/123/ZMB, 12 March 2012 
G/SCM/N/155/ZMB, 12 March 2012 G/SCM/N/186/ZMB, 12 March 2012 G/SCM/N/220/ZMB, 12 March 2012 
Agreement on Safeguards 
Article 12.6 Notification of legislation G/SG/N/1/ZMB/2, 27 August 2009 
Article 12.4 Notification on initiation of an 
investigation and the reasons for it G/SG/N/6/ZMB/1, 5 October 2015 
G/SG/N/7/ZMB/1, 5 October 2015 
Article XVII:4(a) of the GATT 1994 and Paragraph I of the Understanding on the Interpretation of Article XVII 
Article XVII:4(a) State trading  G/STR/N/2/ZMB, 12 September 2012 
G/STR/N/3/ZMB, 12 September 2012 
G/STR/N/6/ZMB, 12 September 2012 
G/STR/N/12/ZMB, 12 September 2012 
G/STR/N/13/ZMB, 12 September 2012 
G/STR/N/14/ZMB, 12 September 2012 
Agreement on Trade Facilitation 
WT/L/931 Notification of Category A, B, and C 
commitments under the TFA WT/PCTF/N/ZMB/1, 18 January 2016 
Agreement on Technical Barriers to Trade 
Articles 3.2 and 7.2 Technical regulations G/TBT/N/ZMB/45, 16 December 2015 
G/TBT/N/ZMB/46, 16 December 2015 
G/TBT/N/ZMB/47, 8 January 2016 
G/TBT/N/ZMB/48, 8 January 2016 
Source: WTO Secretariat.  
                                               
7 WTO online information, "Zambia Trade Profile". Viewed at: 
http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Language=E&Country=ZM . WT/TPR/S/340 • Zambia 
 
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  2.12.  Zambia has not been involved in any WTO dispute settlement proceedings as a defendant or 
complainant, but has participated twice as a third party.8 The two cases in which Zambia reserved 
its third party rights were: DS434 (Australia – certain measures concerning trademarks and other plain packaging requirements applicable to tobacco products and packaging); and DS435 
(Australia – certain measures concerning trademarks, geographical indications and other plain 
packaging requirements applicable to tobacco products and packaging). 
2.13.  Zambia ratified the WTO Trade Facilitation Agreement in December 2015, and notified its 
Category A, B, and C commitments in January 2016.
9 
2.14.  Zambia participates actively in the WTO, and is a member of the following groups in the 
negotiations:  ACP (African, Caribbean and Pacific countries with preference s from the EU), African 
group (African Members of the WTO), G-90 (African Group + ACP + least developed countries), 
least developed countries (LDCs), G-33 ("Friends of Special Products” in agriculture, which is a 
coalition of developing countries pressing for flexibility for developing countries to undertake limited market opening in agriculture), and "W52"  sponsors (sponsors of TN/C/W/52, a proposal 
for "modalities" in negotiations on geographical indications (establishing a multilateral register for 
wines and spirits, and extending the higher level of protection beyond wines and spirits) and "disclosure" (patent applicants to disclose the origin of genetic resources and traditional knowledge 
used in the inventions)).
10 
2.15.  Zambia has trade-related technical assistance needs in a number of areas, including: 
customs procedures, standards and other technica l regulations, SPS measures, competition policy 
implementation, and IP protection at the border, among others.  
2.3.2  Regional and preferential agreements 
2.16.  Zambia is a member of both the Common Ma rket for Eastern and Southern Africa (COMESA) 
and the Southern African Development Community (SADC). Zambia also benefits from a number 
of preferential trade agreements (PTAs) (Table 2.3). 
Table 2.3 Overview of Zambia's regional and preferential trade agreements, 2016 
Agreement Description 
 COMESA 
Title Common Market for Eastern and Southern Africa 
Parties Burundi; Comoros; Democratic Re public of the Congo; Egypt; Eritrea; 
Ethiopia; Djibouti; Kenya;  Libya; Madagascar; Malawi; Mauritius; Rwanda; Seychelles; Sudan; Swaziland;  Uganda; Zambia; Zimbabwe 
Coverage and type Goods, FTA 
Date of signature 5 November 1993 
Date of entry into force 8 December 1994 
End of implementation period 2004  
Zambia merchandise trade with 
COMESA countries (2014)a 26.6% of Zambia's imports and 13.2%  of its exports were with COMESA 
countries 
WTO document series WT/COMTD/N/3  
 SADC  
Title Southern African Development Community 
Parties Angola, Botswana, Democratic Repu blic of the Congo, Lesotho, 
Madagascar, Malawi, Mauritius, Mo zambique, Namibia, South Africa, 
Swaziland, Seychelles, Tanzania, Zambia, and Zimbabwe 
Coverage and type Goods, FTA 
Date of signature 24 August 1996 
Date of entry into fo rce 1 September 2000 
End of implementation period 2012 
Zambia merchandise trade with 
SADC countries (2014)a 52.9% of Zambia's imports came from other SADC countries, and 21.4% of its exports went to other SADC countries 
WTO document series WT/REG176 
                                               
8 WTO online information, "Zambia and the WTO". Viewed at: 
https://www.wto.org/en glish/thewto_e/count ries_e/zambia_e.htm . 
9 WTO document, WT/PCTF/N/ZMB/1, 18 January 2016. 
10 WTO online information, "Zambia and the WTO". Viewed at: 
https://www.wto.org/en glish/thewto_e/count ries_e/zambia_e.htm . WT/TPR/S/340 • Zambia 
 
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  Agreement Description 
PTAs - provider(s) Initial entry into force  
Generalized System of Preferences - Australia 1 January 1974 
Generalized System of Preferences - Canada 1 July 1974 
Generalized System of Pref erences - European Union 1 July 1971 
Generalized System of Preferences - Iceland 29 January 2002 
Generalized System of Preferences - Japan 1 August 1971 
Generalized System of Preferences - New Zealand 1January 1972 
Generalized System of Preferences - Norway 1 October 1971 
Generalized System of Preferences - Russian Federation, Belarus, Kazakhstan 1 January 2010 
Generalized System of Preferences - Switzerland 1 March 1972 
Generalized System of Preferences - Turkey 1 January 2002 
Generalized System of Preferences - United States 1 January 1976 
Duty-Free Tariff Preference Scheme for LDCs - India 13 August 2008 
Duty-free treatment for African LDCs - Morocco 1 January 2001 
Duty-free treatment for LDCs - Chile 28 February 2014 
Duty-free treatment for LDCs - China 1 July 2010 
Duty-free treatment for LDCs - Chinese Taipei 17 December 2003 
Duty-free treatment for LD Cs - Kyrgyz Republic 29 March 2006 
Duty-free treatment for LDCs - Thailand 9 April 2015 
Preferential Tariff for LDCs - Republic of Korea 1 January 2000 
African Growth and Opportunity Act - United States 18 May 2000 
a Certain countries (Democratic Re public of the Congo, Madagascar,  Malawi, Mauritius, Seychelles, 
Swaziland, and Zimbabwe) belong to both groups. In this case, these countries are counted in both groups. 
Source: WTO Secretariat, WTO RTA and PTA databases,  and information provided by the authorities. 
2.17.  The authorities indicated that Zambia recently signed FTAs with Angola and with the DRC, 
and it also benefits from GSP preferences provided by Brazil.   
2.18.  Zambia was involved in the negotiations for the Tripartite Free Trade Area (TFTA), which is 
a free trade agreement between COMESA, SADC an d the EAC (East African Community). The TFTA 
Agreement was signed on 10 June 2015 at the 3rd Tripartite Summit of Heads of State and 
Government in Egypt. Some important work under phase I negotiations (trade in goods) remains 
outstanding; these are: tariff offers, rules of origin, and trade remedy.  
2.19.  The negotiations for a Continental Free Trade Area (CFTA) were launched in 2015, and the 
African Union aims for a Continental Free Trade Area in 2017. Negotiation meetings took place in February 2016 for the first time.  
2.20.  Zambia is eligible for the Everything-But-Arms (EBA) initiative of the EU. Zambia is also 
involved in the negotiations of the Economic Pa rtnership Agreements (EPAs) between the EU and 
African, Caribbean and Pacific (ACP) regions, which are aimed at promoting trade between the 
two groups. It is a member of the Eastern and Southern Africa (ESA) negotiation group.
11 Zambia 
initialled an interim EPA with the EU in 2007, but no agreement has been signed.  
2.21.  Zambia qualifies for duty-free and quota- free access to the US market, and about 92% of 
its exports enter the US market duty free. The remaining products may enter the US market under 
the United States African Growth Opportunity Act (AGOA) initiative, or the GSP programme. In 2014, 0.1% of total Zambian exports were traded under AGOA, and 8.4% under the GSP scheme 
                                               
11 EU online information. Viewed at: http://ec.europa.eu/trade/policy/countries-and-
regions/regions/esa/ . WT/TPR/S/340 • Zambia 
 
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  of the United States.12 In June 2015, the Trade Preferences Extension Act of 2015 simultaneously 
extended the GSP programme until 31 December 2017 and AGOA until 30 September 2025. 
2.4  Investment Regime  2.22.  Zambia has carried out a number of reforms in its investment regime, notably the 
simplification of its business registration and licensing procedures and the adoption of new 
competition legislation (Section 3.3.3). Reflecting these efforts, the World Bank Group Doing Business Report ranks Zambia 97
th among 189 economies for ease of doing business in 2016, up 
from 100th in 2009.13 Zambia ranks 96th out of 144 economies in the Global Competitiveness Index 
in 2015-16 , showing improvement from its ranking of 112th in 2008-09.14 According to the African 
Competitiveness Report, Zambia has made progress in upgrading the quality of its institutions and improving goods market efficiencies.
15 The UNCTAD World Investment Report stated that FDI to 
Zambia rebounded by 37% in 2014 to US$2.5 billion16, despite falling commodity prices.  
2.23.  Investment is mainly regulated under the 2006 Zambia Development Agency (ZDA) Act. 
The Zambia Development Agency (ZDA) became operational in January 2007 after the 
amalgamation of five statutory bodies: the Zambia Investment Centre (ZIC), Zambia Privatisation 
Agency (ZPA), Export Board of Zambia (EBZ), Small Enterprise Development Board (SEDB) and 
Zambia Export Processing Zones Authority (ZEPZA ). In accordance with the Act, the ZDA is 
responsible for: enterprise development, invest ment promotion, export marketing development, 
and privatization in the form of public-private partnership. Its Board of Director members are appointed by the Minister of the MCTI. The Boar d comprises members of the public and private 
sectors, as well as civil society organizations, while both the Chairperson and the Vice Chairperson 
are appointed from the private sector.  
2.24.  The ZDA helps (in terms of procedures) registered investors to, inter alia , acquire land; 
obtain water, electric power, transport, and comm unication services and facilities required for their 
investments; acquire other licences required to operate a business in any particular sector; and 
access any other aftercare assistance that may be  required. ZDA often assists through letters of 
support or recommendations to relevant government institutions.  
2.25.  Registering and licensing a company in Zambia are mainly regulated under the Companies 
Act, the Registration of a Business Name Act, and the Zambia Development Agency Act. The process involves: registering a business name, checking the name for uniqueness at the Patents and Companies Registration Agency (PACRA), and registering a company. 
2.26.  Zambia has been making efforts to improve its business registration process, through 
measures such as the introduction of the online registration system for businesses registered at 
PACRA; the e-registry which makes it easier to find business licensing information; and the setup 
of Small Claims Court and automation of courts, including the commercial court, with the aim of 
expediting dispute settlement. The registration time has been reduced to less than 24 hours in areas where one-stop shops were established. From 2010, the ZDA established one-stop shop 
facilities in three provinces of Zambia. The numbe r of businesses registered (business names, local 
companies, and foreign companies) increased significantly in 2011 from the 2010 level (Table 2.4). 
                                               
12 Calculated by the WTO Secretariat, based on the USITC database. Viewed at: 
https://dataweb.usitc.gov/ . 
13 World Bank (2016). 
14 World Economic Forum (2015). 
15 World Economic Forum (2015). 
16 UNCTAD (2015). WT/TPR/S/340 • Zambia 
 
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  Table 2.4 Registrations for businesses 
Year  Business name Local companies Foreign companies 
2009 11,921 5,508 11 
2010 11,656 6,967 30 
2011 14,884 8,485 47 
2012 14,867 9,678 43 
2013 17,754 10,143 44 
2014 16,935 10,199 49 
2015 16,640 9,746 58 
Source: Information provided by PACRA. 
2.27.  Zambia has also been making efforts to simplify its business licensing regime. In 2009, 
Zambia launched a Business Licensing Reform Programme (BLRP) under the second phase of the Private Sector Development Reform Programme (PSDRP II). The goal of the PSDRP II was to promote and facilitate the development of a competitive business environment in Zambia to 
contribute to job and wealth creation. The BLRP intended to achieve this mainly by making the 
licensing regime simpler, transparent, and focu sing only on necessary regulation processes.
17 An 
audit completed by the Business Licensing Reform Committee (BLRC) identified 517 licences 
affecting business operations in Zambia, involving 18 ministries, 72 local authorities, and 
33 regulatory agencies. It recommended that 290 licences be retained, 170 licences be eliminated, 57 licences be reclassified (into levies, reports or notifications), and the rest be merged or 
converted into a single business levy. As a result, by 2014, 84 acts were reviewed and drafted, of 
which 69 were enacted into law with a total of 113 licences eliminated, some  being amalgamated 
and others reclassified into levies. 183 licences were uploaded into the e-registry. This has resulted in a 26.6% saving in compliance costs (about K 595 million). 
2.28.  The Government enacted the Business Regulatory Act (No. 3 of 2014)
18, in accordance with 
which a Business Regulatory Review Committee (BRRC) and a Business Regulatory Review Agency (BRRA) were both established in 2015. The BRRA – not fully operational yet – is responsible for 
the regulatory impact assessment (RIA): public bodies wishing to introduce new licences must 
obtain approval from the BRRA through a regulato ry impact assessment, to analyse the need for 
the licence and its objectives to avoid introducing unnecessary licences.  
2.29.  The objective of the business licensing proc edure reform is to ensure that only necessary 
licences are introduced and to increase the accountability of the regulatory authorities. The Business Regulatory Act emphasizes the use of a single licensing system for business activities 
with a view to addressing the multiplicity of licences. 
2.30.  The Government is also: linking the systems of the agencies operating in the one-stop shop 
by introducing a One-Stop Shop Integrated System (OSSIS); and establishing an electronic single window for trade (e-Single Window) to link all trade agencies using the ASYCUDA World system. In 
addition, the establishment of the e-TaxOnline system  allowed taxpayers to register for tax and file 
returns electronically. The Ministry of Land intr oduced the Zambia Integrated Land Management 
and Information System (ZILMIS) to reduce the number of days required to complete the process 
of registering property. Zambia established an online visa system (e-Visa) at the Zambia 
Department of Immigration (ZDI), allowing visitors to apply for visas online. 
2.31.  The World Bank 2016 Doing Business Report ranked Zambia 78
th out of 189 economies in 
the world in 2016 on the ease of starting a business, down from 73rd in 2015.19 Zambia eased 
business start-up by eliminating the minimum capital requirement in 2011 and raising the 
threshold at which value added tax registration is required, but made starting a business more difficult by increasing the registration fee and making registering a property more costly by 
increasing the property transfer tax rate. The authorities stated that the documentary and border 
compliance time was increased for both exporters and importers, as all clearance authorities were shifted to a processing centre at the initial stage of implementing a web-based customs platform 
(ASYCUDA World).  
                                               
17 CUTS (2015).  
18 PMRC (Policy Monitoring and Research Centre). 
19 World Bank (2016). WT/TPR/S/340 • Zambia 
 
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  2.32.  Investment guarantees and protection against state nationalization are provided for through 
the Certificate of Registration under the ZDA Act. The Certificate of Registration is valid for ten 
years from the date of issue, and may be rene wed. Guarantees are also provided for through 
Zambia's participation in the World Bank Group's Multilateral Investment Guarantee Agency, and 
the Africa Trade Insurance Agency. Zambia is  a party to the New York Convention on the 
Recognition and Enforcement of Arbitral Awar ds and the International Convention on the 
Settlement of Investment Disputes. The ZDA Act provides for free repatriation of profits and 
dividends and protection against non-commercial risks. Under the Act, no investment may be 
expropriated except by an Act of Parliament in extreme circumstances; in case of expropriation, 
full compensation must be made at market value and be convertible at the current exchange rate. 
2.33.  The ZDA Act does not distinguish between treatment for domestic and foreign investors, 
and foreign investors may invest in virtually any activity open to the private sector. The activities 
that could potentially be closed to the private sector include arms production, the manufacture of dangerous substances and the production of coins and security documents, for which case-by-case 
investment approval is needed. Foreigners, as domestic investors, cannot purchase land. Rather, 
they may lease land for up to 99 years. Acco rding to the authorities, the minimum capital 
requirements for foreign and domestic investment are the same.  
2.34.  The authorities stated that there are no restrictions on investment abroad by Zambian 
nationals.  
2.35.  Zambia has signed 12 IPPAs (Investment Pr omotion and Protection Agreements) so far, and 
three of them have been ratified (with Germ any in 1972, with Switzerland in 1995, and with 
France in 2014). Since 2009, two BITs (Bilateral Investment Treaties) have been signed by Zambia 
(with the United Kingdom in 2010 and with Maurit ius in 2015), but neither have been ratified.  
2.36.  Zambia has signed a number of double taxation avoidance agreements, most of which are 
effective (Table 2.5). 
Table 2.5 Zambia's double taxation avoidance agreements 
Country  Date of signature Date of entry into 
force Information on renegotiation 
Botswana 09/03/2013 14/08/2015  
Canada 16/02/1984 28/12/1989  
China 26/07/2010 30/03/2011  
Denmark 13/09/1973 18/10/1974  
Finland 03/11/1978 17/05/1985  
France 05/11/1963 30/07/1951  
Germany  13/05/1973 08/11/1975  
Netherlands 19/12/1977 09/11/1982 New agreement signed on 15 July 2015, 
will be effective in 2017 
India  05/07/1981 18/01/1984 New agreement negotiated but not yet 
signed 
Ireland  31/03/2015 23/12/2015  
Italy  27/10/1972 30/03/1990  
Japan  19/02/1970 23/01/1971  
Kenya 27/08/1968 ..  
Norway  14/07/1971 22/03/1973 New agreement signed on 17 December 
2015, will be effective in 2017 
Serbia Negotiated but not 
yet signed   
South Africa 22/05/1956 31/08/1956 New agreement negotiated but not yet 
signed  
Sweden 18/05/1974 31/12/1979  
Switzerland 30/05/1961 .. Zambia and Swiss authorities agreed to 
renegotiate this DTA in June 2016 
Tanzania  02/03/1968 ..  WT/TPR/S/340 • Zambia 
 
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  Country  Date of signature Date of entry into 
force Information on renegotiation 
Uganda 24/08/1968 ..  
United 
Kingdom 04/02/2014 20/07/2015  
Zimbabwe Negotiated but not 
yet signed   
.. Not available.  
Source: Information provided by the Ministry of Finance. 
2.37.  The authorities stated that Zambia has Ta x Information Exchange Agreements (TIEAs) with 
Guernsey (ratified by the Cabinet) and the Isle of Man (negotiated, pending ratification). It is also 
participating in an Agreement on Mutual Assist ance in Tax Matters (AMATM) signed between the 
ATAF (African Tax Administration Forum) and the SADC. 
 
 WT/TPR/S/340 • Zambia 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports  3.1.1  Customs procedures, valuation, and rules of origin 3.1.  The Customs and Excise Act regulates customs-related issues, including procedures, 
valuation, and non-preferential rules of origin  in Zambia. In 2010, advance tariff ruling on 
classification was introduced. As tariff classifica tion can be very complex for certain goods, the 
advance ruling aims to ensure that the classification number used is deemed correct by the 
customs authority, and the ruling is binding until it is revoked or amended, or until a year later. 
The authorities consider that this is to provide certainty to the importer or his/her representative.  
3.2.  The Customs and Excise Department of the Zambia Revenue Authority (ZRA) is responsible 
for customs administration. Since the previous Review in 2009, the Government has made efforts 
to streamline customs procedures by, inter alia , building a web-based ASYCUDA World system, 
and setting up centralized centres to process impo rt and export documents. The implementation of 
ASYCUDA World reduced customs clearance time for traders by allowing online submission of 
customs declarations (Table 3.1). All customs posts appointed to clear commercial consignments 
are automated, and all declarations are electronic . The World Bank's Doing Business report ranked 
Zambia 152
nd in 2016 among 189 economies in terms of the ease of trading across borders, down 
from 110th in 2015, but close to the ranking of 153th in 2009. Zambia's rank indicates a lower 
performance than the regional average for Sub-Saharan Africa (136th).  
Table 3.1 Summary of procedures and docu ments for trading across borders, 2016 
 Import procedures Export procedures 
Time per 
consignment Cost per 
consignment Time per 
consignment Cost per 
consignment 
Border compliance 139 hours US$380 136 hours US$370 
Documentary compliance 134 hours US$175 130 hours US$200 
Documents required Bill of lading, 
commercial invoice, customs import declaration (CE 20 Declaration),  packing list, proof of payment of customs fees and duties, release order, road manifest, transit documents Bill of lading,  
certificate of origin, commercial invoice, customs export declaration (CE 20 Form), EUR 1 – certificate of origin (for exports to the EU market) road manifest, transit entry documents (South Africa & Zimbabwe) 
Comparisons Import procedures Export procedures 
Time (hours)  Cost (US$)  Time (hours)  Cost (US$)  
Sub-Saharan Africa:      
Border compliance 160 643 108 542 
Documentary compliance 123 351 97 246 
OECD high-income:      
Border compliance 9 123 15 160 
Documentary compliance 4 25 5 36 
Source: World Bank online information, "Doing Business 2016: Zambia". Viewed at: 
http://www.doingbusiness.org/data/exploreeconomies/zambia#close . 
3.3.  To conduct imports/exports in Zambia, companies must be registered and obtain a taxpayer 
identification number. Currently all customs declaration and clearance must be made by licensed agents. Customs clearing agents must be compan ies that are registered as a taxpayer, have a 
number of staff possessing a certificate and experi ence in customs clearance, and are licensed by 
the customs authorities. Commissions of customs clearing agents are market determined. The authorities indicated that they are considering allowing self-clearance in the future. WT/TPR/S/340 • Zambia 
 
- 28 - 
 
  3.4.  In 2008, the Government implemented the Authorized Economic Operator (AEO) mechanism 
as an administrative tool, based on section 188 of the Customs and Excise Act. Under this mechanism, customs authorities recognize and reward compliance efforts by importers through the speedy clearance of their consignments at the border.  
3.5.  The authorities indicated that some change s were made to the customs appeal procedures 
during the review period: the appeal process starts with the Commissioner General of Customs, after which stage traders may go to either the ordinary judicial court or to the Revenue Appeals 
Tribunal. In 2015, there were 76 appeal cases, 21 related to classification, 49 to valuation, and 
six to other issues. 
3.6.  The Zambia Bureau of Standards (ZBS), the Food and Drug Administration (FDA), the 
ministries in charge of agriculture, livestock and fisheries, and the ministries in charge of energy 
and natural resources are all involved in implementing TBT- and SPS-related inspections and 
licensing procedures at the border. The Government is preparing a bill on border management, which may reduce the number of agencies physically present at the border.  
3.7.  Under the ASYCUDA, there are four channels for customs clearance:  green (release of the 
cargo without examination), yellow (release of th e cargo after further documentary validation), red 
(release of the cargo after a physical examination) or blue (post audit control). Data provided by 
the authorities suggest that, in 2015, 33.4% of the goods entered Zambia through the yellow 
channel, 32.6% through the green channel, 21%  through the red channel and 13% through the 
blue channel. 
3.8.  Zambia ratified the WTO Trade Facilitation  Agreement on 16 December 2015, and notified its 
category A, B and C commitments in January 2016.
1 According to the OECD Trade Facilitation 
Indicators, Zambia performs better than the av erages of Sub-Saharan Africa and lower-middle-
income countries in the areas of information availability, involvement of the trade community, 
appeal procedures, and automation. Zambia's performance in internal border agency cooperation 
and governance and impartiality is below the av erages of Sub-Saharan Africa and lower-middle-
income countries.2 
3.9.  Pre-shipment inspection is not required. 
3.10.  According to the Customs Administration, the value for import duty purposes is the 
transaction value of the imported goods. The au thorities indicate that the major difficulty 
encountered by the customs administration in impl ementing the valuation system is the credibility 
of declared invoices. The customs administration indicated that it follows the methods prescribed 
by the WTO Customs Valuation Agreement. A database of values is maintained to clear second-hand vehicles.   
3.11.  Non-preferential and preferential rules of origin for goods imported into Zambia are 
administered by Customs (Table 3.2). 
Table 3.2 Zambia's rules of origin 
Non-preferential rules of origin  
Section 73 of the Customs & Excise Act: The country of origin of any manufactured goods shall be deemed to 
be the country in which the last process of manufacture has been performed. 
Certification of origin issued by the exporting country must accompany the eligible imports.  
Preferential rules of origin  
Agreement Rules 
COMESA In general, goods are considered to have originated in a given Party if they have been 
wholly produced in that State, or if th ey have undergone a process of substantial 
transformation of materials imported from ou tside that Party: either the CIF value of 
imports must not exceed 60% of the value of all materials used, or domestic value added 
should be at least 35% of the ex -factory cost of the goods, or a change of tariff heading.  
                                               
1 WTO document, WT/PCTF/N/ZMB/1, 18 January 2016. 
2 OECD. WT/TPR/S/340 • Zambia 
 
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  SADC No regime-wide rules of origin; origin criteria are generally product specific: 
- Wholly obtained or entirely produc ed goods for agricultural products; 
- CTH (customs tariff heading) is the mo st common rule, but import content and 
technical tests apply to several products. 
The following principles are admitted:  
- Full cumulation. 
- Absorption principle. 
- Tolerance rule at a maximum of 10% of  the ex-works price (different rules 
apply to textiles).  
- Duty drawback (most SADC countries have duty drawback laws but no 
common SADC regulations have been adopted in this regard): goods produced 
under this regime are not eligible for preferences. 
Source: WTO online information, "COMESA (Goods): Summary Fact Sheet". Viewed at: 
http://rtais.wto.org/rtadocs/121/RelatedDocuments/Factual%20Abstract/English/COMESA(G)_W.doc
; WTO, Factual Presentation: Protocol on Trade in the Southern African Development Community 
(SADC) , WT/REG176/4, 12 March 2007; and COMESA Business Council online information. Viewed 
at: http://www.comesabusinesscouncil.org/comesabusinesscouncil/?q=Free%20Trade%20Area . 
3.1.2  Tariffs 
3.1.2.1  MFN tariffs 
3.12.  Proposals to revise tariffs may come from the public or the private sectors. The Minister of 
Finance analyses proposals and recommends tariff changes to the Cabinet. The Cabinet approves these recommendations and proposes them to the Parliament for adoption through the national budget process.  
3.13.  The major change to the tariff regime was the migration to HS 2012, effective from 
1 January 2012. The share of customs duties in to tal tax revenue fell from 11% in 2009 to 7% in 
2014 (Section 3.3.1). 
3.14.  Zambia bound customs tariffs on 16.7% of al l tariff lines: tariffs on agricultural products 
(WTO definition) are bound, while 3.7% of all tariff lines for non-agricultural products are bound. The simple average of the final bound tariffs is 105.9%: 123.3% for agricultural products, and 
44.4% for non-agricultural products (Table 3.3). Both the absence of bindings for over 83% of 
tariff lines, and the large gap between bound and applied tariff levels undermine the effects of 
tariff bindings in constraining future tariff increases.  
Table 3.3 Structure of MFN ta riffs in Zambia, 2008 and 2016 
(%) 
  MFN applied Final bounda 
  2008 2016  
1. Bound tariff lines (% of all tariff lines) n.a. n.a. 16.7 
2. Simple average tariff rate 13.4 12.9 105.9 
 Agricultural products (WTO definition) 19.1 18.9 123.3 
 Non-agricultural products (WTO definition) 12.5 11.9 44.4 
 Agriculture, huntin g, forestry and fishing (ISIC 1) 19.1 19.7 120.6 
 Mining and quarrying (ISIC 2) 8.0 6.9 0.0 
 Manufacturing (ISIC 3) 13.1 12.5 100.7 
3. Duty-free tariff lines (% of all tariff lines) 22.1 29.9 0.0 
4. Simple average rate of dutiable lines only 17.2 18.4 105.9 
5. Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
6. Non-ad valorem  tariffs (% of all tariff lines) 2.2 2.2 0.0 
7. Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 2.2 2.2 0.0 
8. Domestic tariff peaks (% of all tariff lines)b 0.0 1.5 0.0 
9. International tariff peaks (% of all tariff lines)c 31.4 32.3 16.7 
10. Overall standard deviation of applied rates 9.6 10.7 34.9 WT/TPR/S/340 • Zambia 
 
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    MFN applied Final bounda 
11. Overall coefficient of variation of applied rates  0.7 0.8 0.3 
12. Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
n.a. Not applicable. 
a Calculations for final bound rates are taken fro m the CTS database. The final bound schedule is 
based on HS07 nomenclature and consists of 5,076 tariff lines, of which 850 are bound (at 8-digit tariff line level). 
b Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%. d Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: 2008 tariff schedule is based on HS07 nomenclature and consists of 5,963 tariff lines (at 8-digit 
level). 
 2015 tariff schedule is based on HS12 nomenclature and consists of 6,195 tariff lines (at 8-digit 
level). 
 The ad valorem  part of mixed duties was taken into account for the calculations. 
Source: WTO Secretariat calculations, based on data provided by the Zambian authorities and the WTO CTS 
database. 
3.15.  The authorities stated that when need arises, Zambia may apply tariff quotas. In 
accordance with the Statutory Instrument No. 40 of 2015, the import tariff on wheat was 
suspended to zero from 17 March to 31 August 2015 if the importer obtained an import permit issued by the Ministry of Agriculture, and impo rted durum wheat of less than 75,000 metric 
tonnes, or wheat grain of less than 75,000 metric tonnes.  
3.16.  The 2016 tariff is based on the HS12 nomenclature and consists of 6,195 lines at the 
HS 8-digit level (Table 3.4). Most lines carry ad valorem duties, with six tariff rates: zero and 5% 
on raw materials, 15% on intermediate goods, 25 % on final or consumption goods, 30% on steel, 
and 40% on some wood products (Chart 3.1). 138 li nes (2.2% of all tariff lines) bear alternate 
tariffs. Alternate tariffs apply mainly to: woven fabrics of cotton, motor vehicles, tobacco and tobacco substitutes, among others. 
3.17.  The share of duty-free lines increase d from 22.1% in 2008 to 29.9% in 2016, and the 
simple average applied tariff rate fell from 13.4% in 2008 to 12.9% in 2016. The simple average MFN tariff rate for agricultural products (WTO definition) fell slightly from 19.1% in 2008 to 18.9% 
in 2016, and the simple average for non-agricultural products (WTO definition) from 12.5% in 
2008 to 11.9% in 2016. The dispersion in applied MFN rates, indicated by the standard deviation, was up slightly from 9.6% in 2008 to 10.7% in 2016, partly reflecting the increased share of duty-free lines, and partly reflecting the introduc tion of the 30% and 40% tariff rates on steel and 
wood products.  
Table 3.4 Zambia's applied MFN tariff summary, 2016 
 Number 
of lines Simple 
average 
(%) Tariff 
range 
(%) SDa Share of 
duty-
free 
lines 
(%) Share of 
non-ad 
valorem  
tariffs (%) 
Total 6,195 12.9 0-40 10.7 29.9 2.2 
HS 01-24 1,023 20.3 0-25 7.7 1.6 4.3 
HS 25-97 5,172 11.4 0-40 10.6 35.5 1.8 
By WTO category       
WTO agricultural products 869 18.9 0-25 8.2 2.1 5.1 
Animals and products thereof 122 18.5 5-25 9.1 0.0 0.0 
Dairy products 34 20.9 0-25 8.6 11.8 8.8 
Fruit, vegetables, and plants 260 22.1 0-25 6.8 0.8 0.0 
Coffee, tea, and cocoa and 
cocoa preparations 32 23.1 15-25 3.9 0.0 0.0 WT/TPR/S/340 • Zambia 
 
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   Number 
of lines Simple 
average 
(%) Tariff 
range 
(%) SDa Share of 
duty-
free 
lines 
(%) Share of 
non-ad 
valorem  
tariffs (%) 
Cereals and preparations 108 16.6 5-25 6.7 0.0 1.9 
Oilseeds, fats, oil and their 
products 89 13.5 0-25 8.4 4.5 25.8 
Sugars and confectionary 19 21.6 0-25 7.3 5.3 10.5 
Beverages, spirits and tobacco 52 23.7 5-25 4.4 0.0 26.9 
Cotton 5 15.0 15.0 0.0 0.0 0.0 
Other agricultural products, 
n.e.s. 148 15.2 0-25 8.4 4.7 0.0 
WTO non-agricultural 
products 5,326 11.9 0-40 10.7 34.4 1.8 
Fish and fishery products 227 23.9 0-25 4.2 0.9 0.0 
Minerals and metals 979 11.3 0-25 8.3 20.4 0.0 
Chemicals and photographic 
supplies 1,377 6.0 0-25 9.0 64.7 0.4 
Wood, pulp, paper and 
furniture 273 22.2 0-40 15.4 8.1 0.0 
Textiles 694 15.3 0-25 8.1 9.8 8.9 
Clothing 224 25.0 25.0 0.0 0.0 0.0 
Leather, rubber, footwear and 
travel goods 179 17.2 0-25 9.4 19.0 3.4 
Non-electric machinery 531 4.9 0-25 7.6 64.6 0.0 
Electric machinery 249 11.7 0-25 9.4 33.3 0.0 
Transport equipment 151 8.0 0-30 9.6 50.3 12.6 
Non-agricultural products, 
n.e.s. 421 15.0 0-25 10.2 26.1 0.2 
Petroleum 21 15.2 0-25 11.4 23.8 0.0 
By ISIC sectorb       
ISIC 1 - Agriculture, hunting 
and fishing 416 19.7 0-40 8.8 2.2 0.0 
ISIC 2 - Mining and quarrying 109 6.9 0-25 5.7 12.8 0.0 
ISIC 3 - Manufacturing 5,669 12.5 0-40 10.7 32.2 2.4 
By stage of processing       
First stage of processing 825 16.6 0-40 9.8 5.9 0.4 
Semi-processed products 2,306 8.5 0-40 9.7 46.0 2.6 
Fully processe d products 3,064 15.2 0-40 10.6 24.2 2.4 
a Standard deviation. 
b International Standard Industrial  Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line). 
Note: 2016 tariff schedule is based on HS12 nomenclature and consists of 6,195 tariff lines (at 8-digit tariff 
line level). The ad valorem  part of mixed duty rates were take n into account for the calculations.  
Source: WTO Secretariat calculations, based on data provided by the Zambian authorities. WT/TPR/S/340 • Zambia 
 
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  Chart 3.1 Distribution of MFN applied tariff rates, 2008 and 2016 
Number of tariff lines 
(22.1) 
(14.5) (31.0)(30.2)
(0.0) (2.2)   (29.9)
(11.0)(25.6)(29.6)
(1.5) (2.2)
02004006008001,0001,2001,4001,6001,8002,0002,200
Duty-free 5% 15% 25% 40% Mixed duty rates
Tariff rates (%)MFN 2008
MFN 2016
 
Note: Figures in parentheses indicate the share of total lines.  
Source: WTO Secretariat calculations, based on data provided by the authorities. 
3.18.  In aggregate, positive tariff escalation seems to exist on paper, paper products, printing and 
publishing: the average rates range from 5% on first-stage processed products to 9.4% on 
semi-processed products, and 16.8% on fully proce ssed products (Chart 3.2). In most of the other 
industries, tariff escalation is mixed, i.e. negative  from the first to the second stage of processing, 
and then positive to fully processed goods.  
Chart 3.2 Tariff escalation by 2-digit ISIC industry, 2016 
(%) 
0.05.010.015.020.025.030.035.040.045.0
Food, 
beverages, 
and  
tobacco
Textiles, 
apparel
Wood 
products
Paper, 
printing, and 
publishing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal 
products
Other 
manufacturingRaw materials Semi-processed Fully processedn.a.Average applied rate in manufacturing 
(12.5%)
n.a.
 
n.a. Not applicable.  
Note: Calculations include the ad valorem  part of mixed duty rates. 
Source: WTO Secretariat estimates, based on data provided by the authorities. 
3.1.2.2  Preferential tariffs 
3.19.  As a member of COMESA, Zambia grants du ty-free access to goods imported from the other 
member countries. Goods imported from COMESA FTA members are duty free, while imports from 
the other COMESA members may be subject to low non-zero tariffs.  The authorities stated that, WT/TPR/S/340 • Zambia 
 
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  since 2012, Zambia has been applying a tariff rate of zero on goods imported from the other SADC 
members, including South Africa, if the goods carry the relevant certificate of origin. 
3.1.2.3  Tariff exemptions and suspensions 3.20.  Tariffs are exempted under the following circumstances:  
a. Mining sector equipment; 
b. Personal and households effects of new residents (any person coming to reside in 
Zambia for the first time and any person retu rning to Zambia after having stayed outside 
for at least two years);  
c. Goods for diplomatic missions and personnel; 
d. Goods for approved organizations
3;  
e. Under the ZDA (Zambia Development Agency) Act, tariffs are exempted for designated 
priority industries mostly in the manufacturing sector, such as the zero rate on all 
machinery and equipment for five years; and 
f. Tariff exemptions for goods imported into the multi-facility economic zones (MFEZs) for 
five years.  
3.1.3  Other charges affecting imports 3.21.  Zambia bound other duties and charges at zero but does not impose any. Internal taxes and 
fees, such as VAT and excise duties, are collected at the border on imports (Section 3.3.1). Apart 
from this, an ASYCUDA processing fee (at K 324.60 per declaration) is collected at the border on 
imports.  
3.22.  VAT, at a standard rate of 16%, is applie d equally (same rates and equivalent bases) to 
imported and domestically produced goods and services. VAT is imposed on goods and services 
provided by suppliers with a turnover over K 800,000 (about US$70,000) per year. On imported 
goods, VAT applies to the customs value plus the import tariff and excise tax if applicable. 
3.23.  VAT is zero on, inter alia : export of goods; education materials; medical supplies; 
agricultural equipment and accessories; energy saving appliances, machinery and equipment; and 
food and agriculture. VAT exemptions apply to, inter alia : water supply services; health services; 
educational services; passenger transportation services; funeral services; and some financial and 
insurance services.  
3.24.  Excise duty is also collected on both do mestically produced and imported goods (same rates 
and equivalent bases). The base for excise on impo rted goods is the c.i.f. value plus the import 
tariff. The excise duty rates are as follows: 
a. Beer: 60% for clear beer, and K 0.15 per litre for opaque beer; 
b. Wines and spirits: 60%; 
c. Cosmetics (e.g. lotions, perfumes): 20%; 
d. Tobacco products: 145%, or K 200 per mille, whichever is higher; 
e. Petroleum oils: diesel (K 0.62/litre), petrol (K 1.14/ltr), heavy fuel oil (K 0.87/ltr), LPG 
(K 0.45/kg), white spirits (15%), other light oils (15%); 
f. Plastic bags: 20%; 
g. Airtime: 15%; 
h. Electricity: 3%; and 
i. Motor vehicles: 10%. 
 
                                               
3 These are organizations having an MOU with the Government of Zambia, and legislated under 
Zambia's statutes.  WT/TPR/S/340 • Zambia 
 
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  3.1.4  Import prohibitions, restrictions, and licensing 
3.25.  Since the previous Review, there have been  no significant changes to the legislative or 
institutional framework on the import prohibition, restriction and licensing regime, which remains regulated by, inter alia , the Control of Goods Act. Goods prohibited from importation into Zambia 
are: 
a. Base or counterfeit coins; 
b. Any goods which are indecent, obscene, or objectionable; 
c. Any goods which might tend to deprave the morals of the inhabitants; 
d. Prison-made and penitentiary-made goods; 
e. Qilika (a product mainly used as a drug); 
f. Spirituous beverages containing preparations , extracts, essences, or chemical products 
that are noxious or injurious; 
g. Any goods the importation of which is prohibited by or under the authority of any law 
(such as the Food and Drugs Act, the Standards Act, the Mines and Minerals Act, and the 
Environmental and Pollution Control Act); 
h. Stills and all apparatus or parts of apparatus capable of being used for the production or 
refining of alcohols.  
3.26.  No import licences are required for general importation of goods. However, unprocessed 
agricultural products require an import permit and a SPS certificate (Section 3.1.8). Motor vehicles and household sugar (to be fortified with vitamin A) are subject to import licensing on TBT grounds. Importation of pharmaceutical products  requires a licence, and the importation of 
unfortified household sugar also requires a permit, both issued by the Ministry of Health, for 
consumer safety and human health reasons.  
3.1.5  Contingency measures 
3.27.  In 2009, Zambia notified that the Control of Goods Act, as amended by Act No. 12 of 2004, 
governs the application of safeguard measures.
4 The Investigation Committee established under 
this Act is responsible for undertaking investigations and providing recommendations on the 
appropriate course of action. Investigations may be initiated by any Zambian industry, or by the 
Ministry of Commerce, Trade and Indust ry (MCTI) on its own initiative.  
3.28.  Zambia notified that safeguard investigations were initiated in July 2015 on imports of 
flat-rolled products of iron, non-alloy steel, and trailers and semi-trailers. Provisional safeguard 
measures were adopted from 10 July 2015 to 10 January 2016.5 According to the Customs and 
Excise (Provisional Safeguard Measures) Order of 2015, during these 180 days, an import duty of 
15% was applied to concerned goods imported from  COMESA or SADC, and an import duty of 25% 
to those from any other countries; while an import duty of 30% was applied to goods under the 
HS heading 7210 and imported from any other countries.  
3.29.  Chapter 322 of the Customs and Excise Act governs the ascertaining of dumping and 
subsidization, as well as the imposition of anti-dumping and countervailing duties. Zambia has not 
implemented any anti-dumping or countervailing measures. 
3.1.6  Government procurement  3.30.  Zambia is neither a signatory, nor an observer, to the WTO plurilateral Agreement on 
Government Procurement (GPA). Zambia has signed one regional agreement covering government 
procurement under COMESA.  
3.31.  Government procurement is regulated by  the Public Procurement Act No. 12 of 2008 and 
the Public Procurement Regulations of 2011. Th e objectives of the government procurement 
regime in Zambia are: to ensure transparency and accountability in public procurement, and to regulate and control practices in public procurem ent in order to promote integrity, fairness, and 
                                               
4 WTO document G/SG/N/1/ZMB/2, 27 August 2009. 
5 WTO document, G/SG/N/6/ZMB/1 and G/SG/N/7/ZMB/1, 5 October 2015.  WT/TPR/S/340 • Zambia 
 
- 35 - 
 
  public confidence. The Act is applicable to virtually all public institutions, including government 
ministries and departments, parastatal and statutory bodies, and local councils.  
3.32.  Zambia decentralized its government procurement regime in 2013 with a view to increasing 
efficiency. Since then, all procurements have been conducted by their respective procuring 
entities. The Zambia Public Procurement Authorit y (ZPPA) is no longer involved in procurement 
proceedings. Rather, the ZPPA is the regulator of public procurement, and provides advice, 
guidance and training to procurement entities. 
3.33.  The thresholds for decision-making, contract  conclusion and signature vary according to the 
types of procurement (Table 3.5). Large projects funded by multilateral lending institutions and bilateral donors may follow their own procurement regulations. 
Table 3.5 Public procurement approval au thorities and the publication thresholds 
 Types of procurement 
Approval authority Goods and non-
consulting services Works Consulting services 
Procurement committee within 
the procuring entity  Over K 50,000 K 50,000 K 50,000 
Controlling officer/chief executive 
officer Up to K 50,000 Up to K 50,000 Up to K 50,000 
Publication Goods and non-
consulting services  Works  Consulting services  
Mandatory thresholds for 
publication of contract award 
details Over K 500,000 Over K 500,000 Over K 300,000 
Source: Information provided by the ZPPA. 
3.34.  The ZPPA is working to develop an e-procurement system, including a system for data 
storage related to annual spending on government procurement. Currently, data on the annual value of government procurement and the share in GDP is not available.   
3.35.  Under the Public Procurement Act No. 12 of 2008 (Part IV), public procurement may be 
conducted using, inter alia , simplified bidding/selection, open bidding/selection, limited 
bidding/selection, direct bidding, force account, purchases from other procuring entities, and 
community participation (Table 3.6). According to the authorities, "bidding" is used for the 
procurement of goods, works, and non-consulting services, whereas "selection" is used for the procurement of consulting services. Open bidding is the recommended method.  
3.36.  Projects financed by foreign institutions are open to foreign competition. The Public 
Procurement Act also stipulates that to participate in open international bidding, a foreign bidder 
must partner with a citizen or a local supplier/bidder. According to the Public Procurement Act, a procuring entity may use open international bidding where: 
a. the estimated value of the procurement exceeds the prescribed threshold
6; 
b. the goods, works or services are not available under competitive price and other 
conditions from at least three suppliers in Zambia; and  
c. regional or international participation is required in accordance with an agreement 
entered into by the Government. 
                                               
6 The Act does not seem to specify the threshold to open the tender internationally. Public Procurement 
Act. Viewed at: 
https://www.zppa.org.zm/documents/20182/21181/PUBL IC_PROCUREMENT_ACT. pdf/f2e108b2-e83b-463b-
9b9f-420343757b77?version=1.1 . WT/TPR/S/340 • Zambia 
 
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  Table 3.6 Government procurement methods  
Method Description/conditions 
Simplified 
bidding/selection - low value procurement (up to K 500 million) 
- at least three comp etitive quotations  
- no need to advertise and/or gazette  
Open 
bidding/selection - high value procurement (above K 500 million) 
- invitations to bid are gazetted  and advertised in newspapers 
- the invitation to bid is open to the public 
- it is required to publish the best evaluated bidder before contract award  
Limited 
bidding/selection - the circumstances do not justify or permit the use of open bidding 
- the goods, works or services are only av ailable from a limited numbers of suppliers 
- there is an urgent need  - the invitation to bid is not gaze tted or advertised in newspapers 
- the invitation to bid is restricted to nominated firms only - the invitation to bid has a minimum floatation  period of four weeks for national tenders 
and six weeks for international tenders
 
Direct bidding - the goods, works or services are only avai lable from a single source, and no reasonable 
alternative or substitute exists 
- there is an urgent need 
- the invitation to bid is not gaze tted or advertised in newspapers 
- the invitation to bid is restri cted to the nominated firm only 
- the invitation to bid has a minimum floatation period of four weeks for national 
tenders and six weeks for international tenders  
Force account 
(low value) Construction conducted by the procurin g entity's own personnel and equipment: 
- the quantities of work involved  cannot be defined in advance 
- the works are small and scattered or in remote locations for which qualified construction 
firms are unlikely to bi d at reasonable prices 
- work is required to be carried out without disrupting ongoing operations - there is an emergency need
 
Community 
participation It is desirable in selected project components to:  
- call for participation of local communities and non-governmental organizations; 
- increase the utilization of loca l know-how and materials; and, 
- employ labour-intensive and other appropriate technologies  
Purchases from 
other procuring entities The procuring entity may purchase directly from another government  agency without the 
application of any other procurement method, if:  - there would be no benefit in purchasing from a supplier; and 
- the government agency is able to meet all the procuring entity's requirement as 
specified in the statement of requirem ent for a particular procurement need
 
Procurement of 
infrastructure for 
private financing 
and award of 
concessions Under the Public-Private Partnership Act No. 14 of 2009: 
- use of the private sector to carry out certain projects such as construction, rehabilitation 
or operation of public infrastructure and ot her public goods on the basis of private 
investment 
 
Use of alternative 
procurement methods A procuring entity wishing to use an alternative procurement method from the ones 
mentioned, must apply to the ZPPA
 
Source: ZPPA online information. Viewed at: 
http://www.zppa.org.zm/index.php?option= com_content&view=article&id=77&Itemid=486 . 
3.37.  Both the wide range of procuring methods and the discretion of the authorities to choose a 
method indicate that transparency needs to be improved. The authorities stated that direct bidding is for procurements with a value below K 10,000. If the value goes above this threshold, the 
procuring entity must obtain a letter of non-objection from the ZPPA before conducting direct 
bidding.   
3.38.  The Public Procurement Act also stipulates that a procuring entity may: grant a margin of 
preference, or reserve or set aside certain procurement requirements, for (Table 3.7): 
- citizens or local suppliers; 
- goods, works, or services manufactured or  provided from Zambia, or performed by 
Zambians from a particular region; 
- Zambian suppliers; - small and medium-sized enterprises; or - enterprises owned by women. WT/TPR/S/340 • Zambia 
 
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  Table 3.7 Government procur ement – local preferences 
Price margins Reservation /set-aside of tenders for local 
companies 
4% for a "citizen-influenced" companya Building construction works not exceeding K 20 
million 
8% for a "citizen-empowered" companyb Civil and road works not exceeding K 30 million  
12% for a citizen-owned company (with over 50% of 
equity) Goods not exceeding K 3 million 
15% for domestically manufactured goods by a 
citizen-influenced company, a citizen-empowered 
company, and a citizen-owned company  
a A citizen-influenced company is a company where 5-20% of the equity is owned by citizens, the 
citizens have significant control of the management of the company, and the company is licensed to undertake business in Zambia. 
b A citizen-empowered company is a company where 5- 20% of the equity is owned by citizens and the 
company is licensed to undertake business in Zambia. 
Source: Information provided by the authorities.  
3.39.  Suppliers or bidders may complain to the relevant procuring entity (PE), and subsequently 
appeal to the ZPPA if the complaint has not been adequately resolved by the PE. If they are still 
dissatisfied, they may submit the matter to arbitration. The ZPPA charges a fee of K 1,000 per 
appeal. 
3.1.7  Standards and other technical requirements 
3.40.  The Zambia Bureau of Standards (ZABS), under the MCTI, is the statutory national 
standards body established under the Standards Act, Cap 416 of 1994 of the Laws of Zambia. It is in charge of the promulgation of Zambian standa rds, standardization, quality control, quality 
assurance, import and export quality inspections, and certification.  
3.41.  The ZABS is not in charge of enforcing a ll standards. Different sector-specific regulators 
include the Zambia Information Communications and Technology Authority (ZICTA) for ICT standards, the Energy Regulation Board (ERB) fo r energy, the Road Transport and Safety Agency 
(RTSA) for road transport, the Zambia Environm ental Management Agency (ZEMA) for chemicals, 
and the Ministry of Health for public-health-related matters. Other relevant agencies include the Zambia Weights and Measures Agency (ZWMA) under the MCTI, the Food and Drugs Control 
Laboratory (FDCL) under the Ministry of Health, th e laboratories of the University of Zambia, the 
laboratories of the National Institute for Science and Industrial Research, the laboratories of various ministries, and private specialized laboratories.  
3.42.  In addition to the ZABS, the other agencies  in charge of border checks include the Zambia 
Environmental Management Agency (ZEMA) and the Zambia Agriculture Research Institute (ZARI). 
Testing fees vary depending on the type of product.  
3.43.  The authorities recognize that one of the major obstacles to accessing global markets for 
Zambian manufactured products is the lack of adherence to systematic and internationally 
acceptable quality standards and the use of associated technology.
7 Against this backdrop, the 
Government developed its National Quality Policy in 2011. It aims at: establishing by 2020 a 
National Quality Infrastructure and Technical Regulations Framework, based on local and 
international best practices that will ensure locally produced goods and services are recognized and accepted by Zambia's trading partners. As part of the efforts, the ZABS drafted a strategic plan for 2015-20, aiming to: 
a. Increase the number of published standards by 10% per annum to improve the quality 
of products; 
b. Participate in international, regional, and bilateral standardization, quality assurance and 
metrology programmes; 
c. Increase public awareness of ZABS services; and  
                                               
7 MCTI (2011), The National Quality Policy , February. WT/TPR/S/340 • Zambia 
 
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  d. Disseminate standardization, quality assurance and metrology knowledge to industry 
and other stakeholders. 
3.44.  Zambia has not signed any mutual recognition agreements (MRAs) with foreign countries, 
but it accepts certification by foreign institutions if they are accredited.  
3.45.  The ZABS is the WTO TBT enquiry point, and is a member of a number of international 
standards and metrology organizations (Table 3. 8). The ZABS accepted the TBT Code of Good 
Practice for the preparation, adoption and apprecia tion of standards. Zambia also participates in 
regional programmes aimed at harmonizing standards and conformity assessment schemes such 
as those under COMESA and SADC. The ZABS set up  offices in all provinces and major border 
entry points.  
Table 3.8 Zambia's membership in a number of international standards organizations 
Organization  Year of participation Type of membership 
ISO (International Standardization Organization) 2003 Corresponding member 
IEC (International Electrotechnical Commission) 2004 Affiliate member 
ARSO (African Organisation for Standards) 1987 Full member 
Source: Information provided by the authorities.  
3.46.  By mid-September 2015, a total of 2,434 standards had been published in Zambia, of which 
40% are Zambian standards (based on international, regional and foreign standards as well as home-developed standards with a mix of source documents) and the other 60% are adopted 
international standards. About 2% are compulsory standards (technical regulations).  
3.47.  According to the authorities, technical re gulations (compulsory standards) apply to 50 types 
of products (Table 3.9). During the review period, Zambia made 4 notifications on technical regulations to the WTO; all of them were notifi ed under Article 2.9 of the TBT Agreement. They 
were all submitted by the ZABS, and products concerned include: asbestos-cement corrugated 
sheets and decking for roofing and cladding; petr oleum jelly for the cosmetic industry; pure 
glycerine; and drinking water.
8 
Table 3.9 Standards and technical regulations developed in Zambia 
 Before 
2009 2009 2010 2011 2012 2013 2014 2015 Total  
Standards developed 810 100 317 286 256 169 376 120 2,434 
Technical regulations 27 4 4 7 2 6 0 0 50 
International standards 
adopted 363 67 205 159 144 133 193 79 1,343 
Source: Information provided by the authorities.  
3.48.  There have been no changes to the procedure for formulating standards. A relevant 
technical committee drafts working documents for the establishment of a proposed standard. The 
technical committee organizes meetings to discuss working documents and draft standards, which 
are then circulated for public comment. Standards are published in the Government Gazette once they are approved by the Standards Council.  
3.49.  The procedure for formulating technical regu lations is the same as that for standards. If 
there is a need to protect health, the environment or the safety of citizens, standards may be 
declared mandatory and become technical regulations. These standards must be submitted to the MCTI for evaluation before being declared mandat ory. During this process, these standards are 
advertised in the Government Gazette for 60 days, as well as notified to the WTO TBT Committee, 
for comments. If no substantial comments are received within the 60-day period, a statutory instrument is issued to declare them mandatory, i.e. technical regulations. 
                                               
8 WTO documents G/TBT/N/ZMB/45, G/TBT/N/ZM B/46, G/TBT/N/ZMB/47 and G/TBT/N/ZMB/48, 
December 2015 to January 2016. WT/TPR/S/340 • Zambia 
 
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  3.50.  The ZABS maintains a product certification marking scheme, and manufacturers (both local 
and foreign) may apply to use the ZABS's certification mark. Packaging and labelling requirements are incorporated in products standards. The Food and Drugs Act provides for the labelling of food, 
cosmetics and pharmaceutical items. 
3.51.  Zambia does not have an accreditation system, which is a serious impediment to the 
recognition of Zambian conformity assessment service providers who must obtain accreditation from abroad. The Southern African Development Community Accreditation Service (SADCAS) was 
launched in April 2009, and Zambia is utilizing its services. The only accredited laboratory in 
Zambia is Alfred H. Knight on the Copperbelt; the ZABS testing laboratory has also sought 
accreditation. ZABS is enhancing testing capacity through the development of new laboratories. The Central Veterinary Research Institute is also seeking accreditation in animal disease 
diagnostics.  
3.52.  The Zambia Weights and Measures Agency  (ZW&MA), under the MCTI, is the regulatory 
agency for all weighing and measuring instruments used for trade purposes.  
3.1.8  Sanitary and phytosanitary requirements 
3.53.  Since the previous Review in 2009, there have been no significant changes to the sanitary 
and phytosanitary (SPS) requirements in Zambia. The legislation related to the SPS regime in 
Zambia includes mainly: the Food and Drugs Act of 1994, the Plant Pests and Diseases Act of 
1994, the Noxious Weeds Act of 1994, the Public Health Act of 1933, the Control of Goods Act, and the Animal Health Act of 2010. The Plant Protection Bill is still under preparation.  
3.54.  The ministries in charge of agriculture,  fisheries and livestock, and health are the main 
institutions responsible for SPS-related issues. Zambia is a member of the Codex Alimentarius 
Commission and the World Organisation for Animal Health (OIE), and a signatory to the International Plant Protection Convention (IPPC). During the review period, no trade concerns were 
raised in the SPS Committee with regard to Zambia.
9 The latest notification by Zambia on SPS 
issues was submitted in 2000.  
3.55.  Zambia is affiliated to the WTO, SADC, and COMESA in the areas of SPS and standards 
issues. SADC member countries are now preparing a SADC pest list, and Zambia has been 
participating in this process. ZARI (Zambia Agriculture Research Institute), together with equivalent agencies in other SADC countries, participated in the formulation of a regional position for the Codex Committee on Food Import and Export Inspection and Certification Systems 
(CCFICS). COMESA has been assisting Zambia in applying an STDF (Standards and Trade 
Development Facility) tool since 2011, to help prioritize SPS investment options while recognizing that resources are generally insufficient. COMESA countries are also preparing a COMESA pest list. 
The Plant Quarantine and Phytosanitary Service (PQPS), under ZARI, participated in SPS 
awareness programmes under Pan-SPS COMESA. Zamb ia, together with some other countries in 
the region, obtained training on how to apply the phytosanitary capacity evaluation (PCE) tool 
sponsored by the Africa Solidarity Trust Fund (ASTF), which is implemented by the FAO.   
3.56.  Importers of animals and animal products , plants and plant products, and food products 
must obtain an import permit (Table 3.10). For imports of animals and animal products, veterinary certificates issued in the country of origin are required. For imports of plant and plant products, 
phytosanitary certificates issued in the country of origin are required.  
                                               
9 WTO online information, "SPS Inform ation Management System". Viewed at: 
http://spsims.wto.org/web/pages/search/stc/Search.aspx . WT/TPR/S/340 • Zambia 
 
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  Table 3.10 Import/export certificates 
Product Import Export Issuing department 
Animals and animal 
products Import permit Sanitary certif icate Veterinary  Department 
Plants and plant products  Plant import permit 
 Phytosanitary certificate 
 Zambia Agriculture 
Research Institute (ZARI) 
Seeds Plant import permit 
 Seed certificate Seed Control and 
Certificate Institute in Mt. 
Makalu, and ZARI 
Food Health clearance 
certificate and import 
permit Health clearance certificate Ministry of Health, Ministry 
of Agriculture 
Source: Information provided by the Ministry of Agricu lture, and the Ministry of Livestock and Fisheries. 
3.57.  Animal standards and hygiene are based on OIE norms. The Department of Veterinary 
Services regulates the import and export of livestock, livestock products and by-products using the 
OIE risk analysis and management principles and methodologies. All imports of livestock and 
l i v e s t o c k  p r o d u c t s  m u s t  b e  i n s p e c t e d  b y  t h e  D e p a r t m e n t  o f  V e t e r i n a r y  S e r v i c e s  u p o n  a r r i v a l  i n  Zambia. Importers must obtain an agricultural import permit. The veterinary authorities of the exporting country issues a veterinary certificate. All livestock must be subject to pre-departure 
quarantine in the country of origin, and post-arrival quarantine upon arrival in Zambia. The 
duration of quarantine is specified on a case-b y-case basis. All exports of animals and animal 
products are subject to a veterinary certificate.   
3.58.  The imports of plant and plant products ar e inspected by plant health inspectors at the 
border, using the PQPS standards. Inspections involve documentation checks and physical checks. Quarantine requirements are specific to the plant or plant product as well as to the originating 
country, depending on the results of pest risk analysis. 
3.59.  Phytosanitary requirements are based on IPPC requirements. The Agribusiness and 
Marketing (ABM) Department, under the Ministry of Agriculture, is responsible for issuing agricultural import/export permits for plants an d plant products. These permits stipulate what 
other documents, such as phytosanitary certificat es, are required. ZARI, through the PQPS and the 
National Plant Protection Organization (NPPO), is responsible for issuing phytosanitary certificates for exports, plant import permits, and non-GMO certificates. These permits are issued by Plant 
Health Inspectors or customs officials at the border.  
3.60.  The fees consist of the following: K 30 per phytosanitary certificate and K 50 per 30 million 
tonnes for the import permit, K 150 per inspection, K 800 for fumigation (first registration) or 
K 600 for fumigation (renewal), K 200 for nursery registration, K 500 for treatment facilities, and 
K 500 for tobacco premises. 
3.61.  The Seed Control and Certification Institute (SCCI) is responsible for enforcing the Plant 
Variety and Seeds Act (Cap 236). The Act provides for regulation and control through variety 
testing and release, production and marketing of seed, import and export of seed, seed quality 
control, and coordination of the seed industry.  
3.62.  The Ministry of Health, under the Food and Drugs Act and the Public Health Act, is 
responsible for import controls of food and food products at the border. The Food Safety Unit 
under the Ministry of Health is the focal point of the Codex Alimentarius. Health inspectors carry out physical inspections on food imports, check whether the import consignment is accompanied 
by appropriate permits, test samples in the case of salt (for iodine) and sugar (for vitamin A) 
imports, and verify labelling standards. For fresh fruits and vegetables, permits are issued and sampled for residues of pesticides by the Food and Drug Laboratory in Lusaka.  
3.63.  The Ministry of Health is responsible for export clearance for pre-packed foods. Health 
inspectors at the border check whether the consignment is accompanied by a Health Clearance 
Certificate issued by the Head Office in Lusaka. This Certificate is valid for six months, and it takes from 3 to 5 days to obtain such a certificate. There is no charge for health certificates, although a 
proposal has been made to charge for this service.  WT/TPR/S/340 • Zambia 
 
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  3.64.  According to ZARI, genetically-modified organisms may be allowed to be imported into 
Zambia, subject to approval from the National Biosafety Authority in line with the National Biosafety Act No. 10 of 2007.  
3.2  Measures Directly Affecting Exports 
3.2.1  Export procedures and requirements 
3.65.  According to the World Bank's Ease of Doing Business Report, Zambia ranked 152
nd among 
189 economies in the world in terms of trading across borders in 2016, lower than the regional 
average for Sub-Saharan Africa (136th). It costs on average US$570 and takes about 266 hours to 
conduct border and documentary compliance to export a container.  
3.66.  Export procedures and requirements are list ed in Table 3.1. Documents required to export 
are: bill of lading, certificate of origin, commercial invoice, customs export declaration (CE 20 
form), EUR 1 – certificate of origin (required for exports to the EU market only), road manifest, 
and transit entry documents (for South Africa and Zimbabwe). The ZRA carries out inspections at the border on exports.  
3.2.2  Export taxes, charges, and levies 
3.67.  According to the 9
th Schedule of the Customs and Excise Act, Zambia applies export duties 
at a rate of 10% on mineral ores and mineral concentrates, at a rate of 25% or K 1,000 per tonne, 
whichever is higher, on the waste and scrap of me tal, and at rates of 20% or 40% on some types 
of timber products (Table A3.2). The authorities stated that the export tax on scrap metal is a security measure, to control the stealing of coppe r in the name of scrap, while export duties on 
other goods are to encourage value addition within the country. 
3.68.  An ASYCUDA processing fee, and permit and licensing fees are also collected to cover the 
administrative costs of such requirements.  
3.2.3  Export prohibitions, restrictions, and licensing 
3.69.  Export prohibitions apply to: raw animal hides and skins; logs; wood charcoal; and any 
goods prohibited under other laws.  
3.70.  The Government may restrict maize exports fr om time to time; according to the authorities, 
this is for food security reasons. The Food Reserve Agency (FRA) may export maize from Zambia 
through government to government arrangements. 
3.71.  Export permits/licences are required for cert ain goods, such as maize grain, groats and flour 
(for food security reasons); minerals (for monitoring); fertilizers; live animals; gemstones; and 
firearms. The intending exporter applies to the relevant ministries indicating the product to be 
exported (with details such as the quantity, value, origin of the goods, and intended destination) and pays a fee to cover the administration cost once the application is processed and approved.   
3.2.4  Export support and promotion  
3.2.4.1  Export promotion 3.72.  Exports are zero-rated under the VAT regime. Zambia applies the Duty Drawback Scheme 
to promote exports by reducing the cost of pr oducing export goods through refunding import 
tariffs on inputs.  
3.73.  The Zambia Development Agency (ZDA) is responsible for investment and export promotion 
in the country. The authorities stated that the ZDA's export promotion strategies include: 
a. Participating, and assisting export companies to participate, in trade fairs and exhibitions 
within and outside the country; WT/TPR/S/340 • Zambia 
 
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  b. Developing new markets and expanding existing ones by, for example, conducting 
market research to assess the export potential of Zambian products in target markets; 
c. Organizing training programmes, seminars, and workshops aimed at promoting exports; 
and 
d. Enhancing the capacity of local exporters to produce goods that meet international 
standards.  
3.2.4.2  Export finance, insurance, and guarantees 
3.74.  Export insurance may be provided by the African Trade Insurance Agency (ATI), housed 
under the ZDA. ATI provides political risk and trade credit risk insurance products, with the objective of reducing business risk and cost of doing business in Africa.
10 
3.75.  Exporters of non-traditional goods (all goods except mining products)  may obtain low-
interest loans from the Zambia Export Development Fund (ZEDEF), managed by the ZDA. The 
loans are for up to one year for pre- and post-shipment finance, market development, market research, capacity building, product developmen t, and promotion/advertising and marketing. 
Interest rates are Libor rates plus 2 percentage points. To obtain the loan, exporters must be 
engaged in growth sectors of the economy, i.e. all non-traditional export goods except tobacco. 
3.2.4.3   Multi-Facility Economic Zones (MFEZ) 
3.2.4.3.1  Overview  
3.76.  Zambia has been focusing on establishing and developing MFEZs and/or industrial parks 
(which are smaller in size) since 2004, to attract investment and facilitate industrialization. Both 
domestic and export-oriented enterprises may invest in these zones, which are areas that already 
have basic infrastructure such as roads, wate r, sewerage, power and telecommunications, and 
factory space. Goods manufactured in these zones may be exported, or sold to the domestic market. So far, the MCTI has declared six areas as MFEZs/industrial parks, three of which were 
approved but not established (Table 3.11). Some other areas are in the process of being 
developed.  
Table 3.11 MFEZs  
MFEZs established  MFEZs approved but not 
established Other MFEZs proposed 
Chambishi Maamba Chembe MFEZ – land has been 
given for an industrial park 
Lusaka East Kalumbila Choma MFEZ – land has been 
given for a MFEZ 
Lusaka South Lumwana Livingstone MFEZ – the proposal 
for a MFEZ is under consideration 
  Kabwe - being proposed as a  
MFEZ 
Industrial parks established In dustrial parks approved but 
not established   
Roma Ndola (Sub Saharan gemstones 
exchange)   
Source: Information provided by the authorities.  
3.77.  Investors may identify and suggest any other location in Zambia for such development. The 
Government has prioritized the following areas for the development of MFEZs: Lusaka, Ndola, 
Mpulungu, Chembe, Nakonde, Kasubalesa and Mwinilunga.  
                                               
10 ATI currently provides export insurance services in : Benin, Burundi, the Demo cratic Republic of the 
Congo, Kenya, Madagascar, Malawi, Rwanda, Tanz ania, Uganda, and Zambia. Viewed online at: 
http://www.ati-aca.org/index.php/about-ati/overview-10601 .  WT/TPR/S/340 • Zambia 
 
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  3.2.4.3.2  Legislative framework 
3.78.  The legislation governing the establishment and administration of MFEZs is the Zambia 
Development Agency (ZDA) Act No. 11 of 2006 (sec tion 18) and the Statutory Instrument No. 65 
of 2007. The ZDA is in charge of administering, controlling and regulating MFEZs.  
3.79.  Companies, local or foreig n, may apply to develop an MFEZ or operate in an MFEZ, once 
they demonstrate that their investment is to bring the following benefits: local employment creation; expansion of local production and diversification of the economy; utilization of local raw 
materials and intermediate goods
11; introduction and transfer of technology and skills; production 
of new products; and social development. In addi tion, they also need to provide an environment 
impact analysis where necessary, and to show that their investment is to increase: foreign exchange earnings; the degree of export-orientati on; the degree of import substitution; and the 
utilization of preferential trade agreements. Once qualified, the companies (both local and foreign) 
may be entitled to incentives under the ZDA Act No. 11 of 2006 (Section 3.3.1.2).  
3.80.  The MCTI (particularly its Department of In dustry) is responsible for policy formulation with 
regard to MFEZs and industrial parks, in liaison with: inter alia , the Ministries of Finance; Justice; 
Lands, Natural Resources and Environmental Protection; Local Government and Housing; the Zambia Development Agency; and the private sector, including the Zambia Association of 
Manufacturers and the Zambia Chamber of Commerce and Industry.  
3.2.4.3.3  Impact 3.81.  So far, Chambishi is the largest MFEZ, wi th 36 companies operating within it, US$1.6 billion 
invested and 8,860 jobs created. Lusaka East (10 operators, US$21 million invested, 210 jobs 
created) and Lusaka South (6 operators, US$35 million invested, over 1,000 jobs created) are two 
MFEZs operating on a smaller scale, while the Roma industrial park has a number of smaller companies (365 operators/developers), US$17 million invested, and 500 jobs created. 
3.82.  The authorities consider that, since the introduction of the MFEZ programme, Zambia has 
witnessed an increase in investment and employment, and ultimately an increase in trade.  According to the authorities, investors were attr acted not only by the incentives attached to 
MFEZs, but also the ease of finding land designated for commercial or industrial purposes.   
3.3  Measures Affecting Production and Trade 3.3.1  Tax and incentives 3.3.1.1  Tax regime 
3.83.  The tax system is regulated under the Income Tax Act, the Customs and Excise Act, and the 
Value Added Tax Act. Tax revenue has been increasing rapidly since 2012 (Table 3.12), and was equivalent to about 16.5% of GDP in 2015.
12 The main types of taxes are income tax, VAT, and 
customs and excise duty. Tax revenue from the ex traction royalty increased rapidly during the 
review period. 
Table 3.12 Tax revenue, 2009-14 
(K million) 
 2009  2010  2011  2012  2013 2014  
Total tax revenue 9,660 13,125 18,889 20,719 23,127 27,604 
Income taxes 5,073 7,326 9,767 11,734 11,575 13,225 
 Company income tax 1,376 2,422 3,644 4,402 2,852 3,488 
 PAYE (pay as your earn) 2,924 3,866 4,519 4,934 5,683 6,427 
 Withholding tax 538 626 736 939 1,279 1,544 
 Extraction royalty 235 412 868 1,459 1,761 1,767 
Domestic goods and services 1,330 1,887 1,630 1,919 3,581 6,011 
                                               
11 According to the authorities, this is to encourag e both foreign and local in vestors to consider first 
using locally available raw materials and intermediate good s before importing them, with  an intention to create 
a market for local micro, small and medium-siz ed enterprises in the production process. 
12 Ministry of Finance (MOF), 2015 Budget Speech . Viewed at: https://www.zra.org.zm/# . WT/TPR/S/340 • Zambia 
 
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   2009  2010  2011  2012  2013 2014  
 Excise duties 1,023 1,372 1,662 2,198 2,339 2,854 
 VAT collected domestically 307 515 (33) (279) 1,242 3,157 
Trade taxes 3,257 3,912 5,740 7,067 7,971 8,368 
 VAT collected at the border  2,168 2,658 3,997 5,031 6,150 6,397 
 Import tariff 1,072 1,250 1,738 2,032 1,808 1,949 
 Export levies 17 5 5 4 12 23 
Source: Information provided by the ZRA. 
3.84.  According to the World Bank, Zambia ranked 46th out of 189 economies for paying taxes in 
2016, up from 81st in 2015, and much better than the regional average (131st for Sub-Saharan 
Africa).13 On average, firms pay 26 taxes a year, sp end 157 hours a year filing, preparing, and 
paying taxes, and pay total taxes amounting to 18.6% of profit. 
3.85.  Direct taxes accounted for almost half of total tax revenue in Zambia in 2014. In 2014, the 
biggest source of income tax is PAYE, followed by company income tax, extraction royalty, and withholding tax. The individual income tax (PAY E) has progressive rates, at 0%, 25%, 30% and 
35%. Despite having a general rate of 35%, the company income tax is levied at different rates 
depending on the economic sector (Table 3.13). Withholding tax rates may vary for residents and non-residents. 
Table 3.13 Income tax 
Company income tax   
Category  Rate (%) 
Mining operations (variable profit tax) Y = 30% + [15% - (ab/c)], where: 
Y = tax rate to be applied per annum; 
a = 15%; 
b = 8%; and  
c = the percentage  ratio of the 
assessable income to gross sales 
 
Mining operations other th an industrial minerals 0 
Mineral processing 30 
Manufacturing and other companies 35 
Public benefit organizations (on income from business) 15 
Agro-processing 10 
Farming  10 
Non-traditional exports 15 
Chemical manufacture of fertilizer 15 
Organic manufacture of fertilizer 15 
Trusts, deceased or bankrupt estates 35 
Rural enterprises Applicable tax reduced by 1/7 for five 
years 
Business enterprises operating in a priority sector declared under the 
ZDA Act 0 for the first five years, 
rate reduced by 50% from 6-8 years, 
and rate reduced by 25% from 9-
10 years 
Manufacturing enterprises located in a rural area, MFEZ, or industrial 
park 0 for the first five years from 
commencing operation 
Electronic communication business: 
 First K 250,000 35 
Above K 250,000 40 
Personal income tax (per annum)  
 First K 36,000 0 
 K 36,000-K 45,600 25 
 K 45,600-K 70,800 30 
 Above K 70,800 35 
Withholding tax rates  
 Dividends (final tax) 15 
 Dividends paid by a company ca rrying on mining operations 0 
 Dividends paid to an individual by a company listed on the Lusaka 
 Stock Exchange (LUSE) 0 
 Dividends paid by a company en gaged in the assembly of motor 
vehicles, motorcycles and bicycles  0 (for the first five years) 
                                               
13 World Bank (2016). WT/TPR/S/340 • Zambia 
 
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  Company income tax   
 Dividends declared from farming income 0 (for the first five years) 
 Dividends paid by a manufacturing enterprise located in a rural 
 area, a MFEZ, or an industrial park 0 (for the first five years from 
commencing operation) 
 Interest on the Govern ment of Zambia bonds  15 
 Interest for individuals (earned from banks or building society 
 savings and deposit accounts) 0 
 Interest on treasury bills  15 
 Other interest 15 
 Royalties (residents) 15 
 Royalties (non-residents) 20 
 Rent  10 
 Commission (residents) 15 
 Commission (non-residents) 20 
 Public entertainment fees for non-residents 20 
 Management and consultancy fees to non-residents 20 
 Non-resident contractors 20 
 Payment or distribution of branch profits 15 
 Payment of winnings from gaming, lotteries, and betting 20 
Source: Information provided by the ZRA. 
3.86.  The mineral royalty rate was increased from 3% to 20% in the first half of 2015, and 
reduced to 9% in the second half of 2015. The rate is now 6% for underground mining, and 9% 
for opencast. 
3.87.  Import tariffs accounted for 7% of total tax revenue in 2014. In the same year, VAT 
accounted for more than 1/3 of total tax revenue, and the VAT collected at the border was much 
higher than the VAT collected domestically. 
3.3.1.2  Incentives 3.88.  The ZDA may recommend to the Ministry of Finance incentives to investors who invest not 
less than US$500,000 in an MFEZ, an industrial pa rk, a priority sector, or a rural enterprise 
(Table 3.14).
14 Priority sectors are those outlined in the second schedule of the ZDA Act 
(Table A3.3). 
Table 3.14 Incentives 
Tax incentives 
Profit 
tax 0% tax on profits for five years, from the first year of operation (qualifying projects should be in the 
manufacturing sector in an MFEZ, industrial park, or rural area)  
Dividen
d tax 0% tax on dividends for five years, from the year of commence ment of operations 
Import 
tariff 0% import duty on capital equipment and machinery for five years 
Source: Information provided by the authorities. 
3.89.  A NEPAD-OECD report suggested that the Government should consider extending the low 
tax burden to other sectors of the economy to attr act more investment, and to consider simplifying 
the tax structure and moving from an incentive-based investment attraction strategy towards one based on strengthening the enabling environment for businesses, large and small, to develop.
15 
3.3.2  Competition policy and price controls 
3.3.2.1  Competition policy 3.90.  Significant changes have been made to Zambia's competition policy since the previous 
review. The Government issued the Competitio n and Consumer Protection Policy in 2009. The 
Competition and Consumer Protection Act (CCPA) No. 24 of 2010 was promulgated with a view to 
                                               
14 A rural enterprise is an enterprise established in neither a city nor a municipality of Zambia.  
15 NEPAD-OECD (2011). WT/TPR/S/340 • Zambia 
 
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  enhancing predictability of the enforcement mechanism, which was missing in the repealed 
Competition and Fair Trading Act Cap 417 of 1994 (Table 3.15). The Competition and Consumer Protection Commission (the Commission) was established under the CCPA. In 2011, the Competition and Consumer Protection (General) Regulations were issued. 
Table 3.15 Major differences between the old and the new competition legislation 
Subject Old Act New Act 
Mergers   
 - period to investigate mergers 
and takeovers Did not specify 90 days to review a merger 
 - merger approvals Nine steps and six hours of 
administrative activities Three steps and less than one hour 
of administrative activities 
 - merger threshold for notification No threshold, all mergers had to 
be notified Merger parties with a combined 
turnover or assets above 50 million 
fee units; small transactions do not 
need to be notified 
Leniency programme Did not specify Introduced to facilitate cartel 
investigations, and other anti-competitive practice investigations 
Fines A fine not exceeding 100,000 
penalty units, or imprisonment of 
not more than five years, or both A maximum fine of 10% of 
turnover (based on previous year) 
or imprisonment of not more than 
5 years or both (cartels mostly) 
Tribunal Appeal through the High Court; 
took on average two to three years for a case to be decided No fees for all appeal cases filed 
before the Tribunal; it takes on average about six months for a case to be decided
a 
Consumer protection Section 12  A detailed section (Part VII) on 
consumer protection 
Negative clearanceb Some activities which would not have been prohibited by the old Act might still have had to be approved by the Commission if it 
believed that such activities could 
have caused a negative impact on competition Negative clearance: only those 
parties who are unsure if their proposed transaction needs to be notified to the Commission need to 
apply 
Relocation of plant and machinery Must obtain authorization from the 
Commission The Commission continues to 
handle relocations as provided for 
under Section 5(a) of the Act  
a The case clearance rate is improving. The Tribuna l was formed one year after the CCPA took effect, 
which caused the backlog of cases.  
b Negative clearance is not only for mergers.  A co mfort letter is then sought by the parties from the 
Commission. 
Source: Information provided by the Competit ion and Consumer Protection Commission.   
3.91.  The CCPA applies to all economic activities  within, or having an effect within, Zambia, 
including those carried out by state-owned enterprises (fully or partially) (Table 3.16).16 It does 
not apply to: 
a. agreements relating to intellectual property rights; 
b. labour agreements and trade unions; or 
c. the business of any enterprise exercising a statutory monopoly which precludes the 
entry of another enterprise into the relevant market in Zambia, provided that there is no purpose of restricting competition, no abuse of a dominant position, or in compliance 
with the merger provisions of the CCPA.  
3.92.  The Commission retains jurisdiction and the right to intervene in the event that the 
precluded activities violate any provisions of the CCPA.  
                                               
16 Competition and Consumer Protection Act (CCPA) No. 24 of 2010. Viewed at: 
http://www.ccpc.org.zm/wp-content/uploads/2014/03/ The-Competition-and-Cons umer-Protection-1-21.pdf . WT/TPR/S/340 • Zambia 
 
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  Table 3.16 Key characteristics of the CCPA 
Subject Notes 
Restrictive business and anti-c ompetitive trade practices: 
The CCPA bans any practices that would prevent/restrict /distort competition to an "appreciable"a extent in 
Zambia: The bans do not apply to an agreement to which all th e parties are interconnected and falling under a single 
economic unit.  
- Horizontal agreements are prohibited if they:  
   - fix the purchase or selling price or any other trading conditions; 
   - divide markets by allocating cust omers, suppliers or territories specific 
types of goods or services; 
   - involve bid rigging (with some exceptions); 
   - set production quotas; or 
   - provide for collective refusal to deal in, or supply, goods or services. 
 
Parties to a horizontal agreement which would see either one or both 
supplying about 15% of the market must notify the Commission for 
approval. Penalty provisions:  
 - for a person: a fine not 
exceeding 500,000 penalty 
units, or imprisonment for a 
period not exceeding 5 years, or 
both; 
 - for an enterprise: a fine not 
exceeding 10% of its annual 
turnover. 
- Vertical agreements are prohibited, if they involve re-sale price 
maintenance.    Parties to a vertical agreement which would see either one or both supplying about 30% of the market must notify the Commission for 
approval. A fine not exceeding 10% of 
annual turnover.  
- Abuse of dominant position is prohibited: 
CCPA prevents enterprises with a do minant position from abusing their 
dominance to limit competition. 
 
Dominant position is defined as: 
- if 30% or more of the goods or services in question are supplied or 
acquired by one enterprise; or 
- if 60% or more of the goods or services in question are supplied or 
acquired by not more than three enterprises. 
 A fine not exceeding 10% of 
annual turnover. 
 
Mergers subject to review 
The Commission reviews a merger if: 
 - parties to a merger transaction meet a prescribed threshold;b  
 - if the Commission believes that a merger falls below the prescribed 
threshold and is likely to create or contribute to creating a position of 
dominance, or substantially prevent or  lessen competition, or due to other 
factors requiring consideration.  
 A fine not exceeding 10% of 
annual turnover. 
 
Unfair trading practices are prohibited 
A trading practice is unfair if: 
 - it misleads consumers; 
 - it compromises the standard  of honesty and good faith; 
 - it places pressure on consumers through harassment or coercion. A fine not exceeding 10% of the 
person's or ente rprise's annual 
turnover, or 150,000 penalty 
units, whichever is higher.  
 
a "Appreciable" extent is related to agreements satisfying the de minimis  rule: only those activities 
with a great effect are reviewed by the Commission.  
b According to the Competition and Consumer Prot ection (General) Regula tions issued in 2011, a 
merger transaction requires auth orization by the Commission where the combined turnover or 
assets, whichever is higher, in Zambia of the merging parties, is at least 50 million fee units in their latest full financial year. According to the Competition and Consumer Protection Commission, this currently corresponds to K 10 billion. 
Source: Information provided by the authorities.  
3.93.  Sector regulators still play an important role, and the CCPA requires the Commission to sign 
memoranda of understanding with sector regulators, to ensure coordinated implementation and 
enforcement of the competition policy. Where the Commission determines that a sectoral regulator 
is unduly restricting competition, it may conduct a market inquiry into the sector. According to the Competition Policy, the following regulators, among others, need to coordinate with the Commission: 
a. Energy Regulation Board; 
b. Zambia Information and Communications Technology Authority; WT/TPR/S/340 • Zambia 
 
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  c. Patents and Companies Registration Agency; 
d. Zambia Development Agency; 
e. National Water and Sanitation Council; 
f. Zambia Medicines Regulatory Authority; 
g. Zambia Bureau of Standards; 
h. Zambia Weights and Measures Agency; 
i. Bank of Zambia; 
j. Securities and Exchange Commission; 
k. Pensions and Insurance Authority; 
l. Zambia Revenue Authority; 
m. Zambia Environmental Management Agency; 
n. Zambia Public Procurement Authority (ZPPA); and 
o. Law Association of Zambia. 
3.94.  The CCPA contains provisions on consumer protection, and hence complements relevant 
laws on this issue, including the Telecommunications Act, Public Health Act, Food and Drugs Act, 
Energy Regulation Act, Bank and Financial Servic es Act, Standards Act, and Weights and Measures 
Act. Currently, the Commission deals with 150-200 cases of consumer complaints a month, and 
almost half of the cases concern the supply and sale of defective and unsuitable goods and 
services, such as electronic products.  
3.95.  The Commission has a presence in every province of Zambia, with its headquarters in 
Lusaka. It appoints inspectors in local authorities and currently has inspectors in 73 districts. Since 
2009, the Commission has dealt with about 130 cases concerning restrictive business and anti-
competitive trade practices, relating to various se ctors of the economy such as publishing, energy, 
agriculture, retail, construction, telecommunications, financial services, and manufacturing.  Among 
these cases, very few were on abuse of dominance: the Commission noted that many companies 
feared to report abuse of dominance because of the pressures from the dominant firms, many of 
which used to be SOEs that were later privatized.17 
3.96.  The Commission collaborates with several international organizations on competition policy, 
such as the African Competition Forum, the International Competition Network (ICN), the International Consumer Protection and Enforcement Network (ICPEN), and the COMESA Competition Commission on merger cases with a regional dimension. Since 2009, a total of 
184 mergers have been approved.  
3.97.  In accordance with the CCPA, the Competition and Consumer Protection Tribunal was 
established in October 2012. From then to December 2015, 80 cases were filed before the Tribunal 
(79% were consumer-related cases, and 21% were competition-related cases). The Tribunal 
passed judgements on 38 cases, 26 cases were settled ex curia  (out of court), and 16 were 
ongoing. The Commission has continued training members of the judiciary and members of the 
Tribunal on matters related to competition policy and consumer protection. A research report 
found that the Tribunal lacks financial and human resources: both the Tribunal and its secretariat currently operate on a part-time basis.
18  
3.98.  The Commission has developed draft amendmen ts to the CCPA, to address issues such as: 
the limited definition of a consumer, and relations between the Commission and the Food and 
Drugs Control Laboratory (FDCL). The Commission also started reviewing guidelines on fines and procedural administration. In addition, the CCPA has a leniency programme to facilitate 
identification of cartels; the programme ha s been finalized, but not yet published. 
3.3.2.2  Price controls 3.99.  According to the authorities, price controls mainly take the form of price caps, and are 
applied on (but not limited to) products and serv ices such as: fuel (by the Energy Regulation 
Board), electricity tariffs (by the Zambia Electricity Supply Corporation), and insurance premiums (by the Pension & Insurance Authority). 
                                               
17 Competition and Consumer Protection Commission (2014), 2013 Annual Report , p.23.  
18 CUTS (2015). WT/TPR/S/340 • Zambia 
 
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  3.3.3  State-owned enterprises, privatization, and state trading 
3.100.  Zambia notified the WTO in 2012 that it does not maintain any state trading enterprises as 
defined by GATT Article XVII.19 
3.101.  The State continues to play an important ro le in the economy. The list of enterprises with 
significant government ownership remains long, alth ough it is getting shorter compared with the 
previous review (Table 3.17). 
Table 3.17 Government shares in public enterprises, 2007 and 2015  
Entities 2007 (%)   2015 (%)  
Energy sector  Energy sector  
Indeni Petroleum Products  50  Indeni Petroleum Products  .. 
Tazama Pipelines  60  Tazama Pipelines  50 
Zambia Electricity Supply Corporation  100  Zambia Electricity Supply Corporation 
(ZESCO) 100 
Mining sector   Mining sector   
Kagem Mining  20    
Kariba Minerals  51    
Maamba Collieries 100    
Zambia Consolidated Copper Mining 
Investment Holding 87.6  Zambia Consolidated Copper Mining 
Investment Holding (ZCCM-IH) 100 
AHC Mining Municipal Services 100    
Chambishi Metals 10    
Chibuluma Mines 15    
Copperbelt Energy Corporation 20    
Kansanshi mining 20    
Konkola Copper Mines 20.6    
Luanshya Copper Mines 15    
Mopani Copper Mines 10    
Ndola Lime Company 100  Ndola Lime Company 100 
NFC Africa Mining 15    
Financial sector  Financial sector  
Development Bank of Zambia 67  Development Bank of Zambia .. 
Indo-Zambia Bank Limited 50    
National Savings and Credit Bank 100  National Savings and Credit Bank .. 
Zambia National Building Society 100  Zambia National Building Society .. 
Zambia National Commercial Bank  51    
Zambia State Insurance Company  100  Zambia State Insurance Company  100 
Other sectors   Other sectors   
Nitrogen Chemicals of Zambia 100  Nitrogen Chemicals of Zambia 100 
Contract Haulage  100    
Engineering Services Corporation  100    
Medical stores  100  Medical stores  .. 
MOFED (London)  100    
MOFED (Tanzania)  100    
Mpongwe Development  0.05    
Mpulungu Harbour Corporation  100  Mpulungu Harbour Corporation  .. 
Mupepetwe Engineering  100    
National Airports Corporation  100  Zambia Airports Corporation  100 
National Housing Authority  100  National Housing Authority  .. 
Nganga Farms  23.8    
Tanzania-Zambia Railways  50  Tanzania-Zambia Railways  50 
Times of Zambia  100  Times of Zambia  100 
Zambia China Mulungushi Textiles of 
Zambia  40    
Zambia Daily Mail  100  Zambia Daily Mail  .. 
Zambia Education and Publishing 
House  100    
Zambia Postal Corporation  100  Zambia Postal Corporation  100 
Zambia Printing Company  100  Zambia Printing Company  .. 
                                               
19 WTO document, G/STR/N/2/ZMB, G/STR/N/3/ZMB, G/STR/N/6/ZMB, G/STR/N/12/ZMB, 
G/STR/N/13/ZMB, G/STR/N/14/ZMB, 12 September 2012. WT/TPR/S/340 • Zambia 
 
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  Entities 2007 (%)   2015 (%)  
Zambia Railways  100  Zambia Railways  100 
Zambia State Lotteries  100    
Zambia Telecommunication  100  Zamb ia Telecommunication (ZAMTEL) 100 
Zamcapital Enterprises  100   
.. Not available.  
Source: Information for 2007 is from: IMF (2008), IMF Country Report No. 08/30, Zambia: Statistical 
Appendix,  Appendix II. Information for 2015 is provided by the authorities.  
3.102.  It seems that the role of the private se ctor has been increasing. The Zambia Development 
Agency (ZDA) is the country's privatization vehicle, and privatization has been concentrated in mining, manufacturing and financial services.  
3.103.  The ZDA Act provides for the following modes of privatization:   
a. Public offering of shares; 
b. Private sale of shares through negotiated or competitive bids or by private treaty; 
c. Offer of additional shares in an SO E to reduce government shareholding; 
d. Sale of the assets and business of the SOE; 
e. Reorganization of the SOE before the sale of the whole or any part of the SOE; 
f. Management or employee buyouts; 
g. Lease and management contracts; 
h. Any other method the Board of the ZDA may consider appropriate. 
3.104.  Foreign and domestic private enterprises may participate in the purchase of shares in 
SOEs. All proceeds from the sale of SOEs are transferred/deposited into a special account 
designated for privatization – the "Privatization Revenue Account" – managed by the Ministry of 
Finance. 
3.105.  The Government has identified PPP (public private partnership) as a way to achieve 
infrastructure development, which may address the finance and management capacity constraints 
faced by the Government for public infrastructure and service projects. A PPP Unit was set up under the Ministry of Development and Planni ng, and a PPP Act was promulgated (the Public 
Private Partnership Act, 2009).   
3.3.4  Intellectual property rights 3.3.4.1  Overview  3.106.  The copyright legislation was amended in  2010. Apart from that, there have been no 
significant changes to the legislative and institutional framework of IPR protection in Zambia since 
the previous review, although five bills are under consideration on: trademarks, patents, industrial 
designs, layout designs, and traditional knowledge. The current IPR regime is summarized in 
Table 3.18. 
Table 3.18 Summary of the protection of intellectual property rights, 2016 
Main legislation  Duration (agency) Coverage 
Patents 
Patents Act Cap 400 16 years from the date of filing, with the 
possibility of renewal (PACRA) Inventions  
Trademarks   
Trademark Act 
Cap 401 Initially for 7 years, may be renewed every 14 
years for an indefinite period (PACRA) Only for goods, not for services WT/TPR/S/340 • Zambia 
 
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  Main legislation  Duration (agency) Coverage 
Registered industrial designs 
Registered Industrial 
Designs Act 
Chapter 402 Five years from the date  of registration, and 
renewable for another two five-year periods 
(PACRA) Visual design of objects or models 
Copyrights  
Copyright and 
Performance Rights 
(Amendment) Act, 
2010, 
Copyright Law 
Cap 407 Copyright automatically exists for the life of the 
author plus 50 years (Office of the Registrar of 
Copyrights under the Mini stry of Information and 
Broadcasting Services (MIBS)) The particular form or manner in 
which ideas or information has 
been manifested or expressed 
Plant varieties  
Plant Breeders Rights 
Act No. 18 of 2007 Seed Control and Certification Institute (SCCI) 
under the Ministry of Agriculture  Plant varieties 
Source: National Intellectual Property Policy 2010–2015.  
3.107.  Zambia's current legislation on industrial property is silent on exhaustion with regard to 
IP rights. In practice, the authorities are more inclined to national exhaustion. The legislation on 
copyrights stipulates exclusive distribution ri ghts, and does not allow parallel imports.   
3.108.  Zambia has no legislation dealing with the registration of layout-designs of integrated 
circuits or of trade secrets. Geographical indications are protected as certification marks under 
section 42 of the Trade Marks Act Cap 401. 
3.109.  Zambia is a member of various WIPO-administered treaties20: 
a. Paris Convention for the Protection of Industrial Property (1965); 
b. Berne Convention for the Protection of  Literary and Artistic Works (1992); 
c. WIPO Convention (1977); 
d. Patent Cooperation Treaty (2001); 
e. Protocol relating to the Madrid Agreement Concerning the Registration of Marks (2001); 
f. Beijing Treaty on Audiovisual Performances (2012); 
g. Nairobi Treaty on the Protection of the Olympic Symbol (1981); 
h. Patent Law Treaty (2000); and 
i. Washington Treaty on Intellectual Property in Respect of Integrated Circuits (1989); 
j. WIPO Copyright Treaty (WCT); and 
k. WIPO Phonograph and Performers Treaty (WPPT). 
3.110.  Zambia is also a member of some regional IP treaties: 
a. Lusaka Agreement on the Creation of the African Regional Industrial Property 
Organization (ARIPO) (1978); 
b. Charter for African Cultural Renaissance (2006); 
c. Swakopmund Protocol on the Protection of  Traditional Knowledge and Expressions of 
Folklore within the Framework of the African Regional Intellectual Property Organization (ARIPO) (2010); 
d. Cultural Charter for Africa (1990); and 
e. Harare Protocol on Patents and Industrial Designs within the Framework of the African 
Regional Industrial Property Organization (ARIPO) (1986). 
3.111.  Zambia is in the process of acceding to the following treaties: 
a. Singapore Trademark Law Treaty; 
b. International Convention for the Protection of Varieties of Plants (UPOV). 
 
3.112.  As an LDC, Zambia is required to conform to all TRIPS obligations by 2013 for subject matter relating to patents in general, and 2016 fo r public health matters. Both deadlines were 
                                               
20 WIPO online information. Viewed at: http://www.wipo.int/wipolex/en/profile.jsp?code=zm . WT/TPR/S/340 • Zambia 
 
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  extended for LDCs, to 2021 and 2033 respectively.21 The authorities indicated that both matters 
are addressed in the current patent bill.  
3.3.4.2  Industrial property 3.113.  In 2011, the Patents and Companies Registration Agency (PACRA) was established under 
the MCTI, and is responsible for the administration of industrial property rights, including operating 
a legal system for the registration and protecti on of commercial and industrial property, and 
serving as a legal repository of information. 
3.114.  Eligible persons may apply for a patent or a design to the PACRA, or to ARIPO.
22 Zambia is 
not a party to the Banjul Protocol on trademarks of ARIPO, so applicants for trademark protection in Zambia cannot submit their application to ARIPO. The number of patent applications to ARIPO is much higher than those made to the PACRA (Table 3.19). ARIPO operates a system for centralized 
filing and substantive examination of patent, industrial design, and trademark applications; 
however, the granting of protection is governed by each member State's national legislation.
23  
3.115.  For the PACRA, it takes on average 160 wo rking days to grant a patent. The authorities 
indicated that most applications were made by foreigners.   
Table 3.19 IPR statistics, 2010-15  
 2010 2011 2012 2013 2014 2015 
Patent       
  PACRA       
   Lodged  17  24 38 28 39 39 
   Granted  11 15 32 21 23 17 
   Renewed 150  96 144 128 126 217 
  ARIPO       
   Lodged  38 268 280 379 639 542 
   Granted  38 35 45 129 362 307 
   Renewed 36 250 350 595 649 .. 
Trademarks       
   Lodged  2,226  1,293 1,658 1,397 1,705 1,650 
   Granted  970 1,117 786 1,300 908 1,051 
   Renewed 653  825 592 810 591 950 
Designs       
   Lodged  8  16 12 43 40 20 
   Granted  6 4 10 33 22 12 
   Renewed 33  5 6 3 3 7 
.. Not available. 
Source: PACRA (2015), Annual Report 2014 . Viewed at: 
http://www.pacra.org.zm/index.ph p?option=com_docman&Itemid=173 ; PACRA (2012), Annual 
Report 2011 , p.15; and information provided by the authorities.  
3.116.  PACRA conducts substantive examination of  trademarks. According to the authorities, it 
takes about 120 working days to register a tradem ark in Zambia; around half of the applications 
were made by foreigners. In accordance with th e Trade Mark Act, well-known trademarks may be 
registered as defensive trademarks, or as any other trademarks.  
3.3.4.3  Copyright 3.117.  The Office of the Registrar of Copyri ghts under the Ministry of Information and 
Broadcasting Services (MIBS) is responsible for copyright-related issues. Other ministries, such as 
                                               
21 WTO online information. Viewed at: https://www.wto.org/english/ tratop_e/trips_e/ldc_e.htm . 
22 Currently, there are 19 members of ARIPO: Botswa na, the Gambia, Ghana, Kenya, Lesotho, Malawi, 
Mozambique, Namibia, Sierra Leone,  Liberia, Rwanda, Sao Tome and Principe, Somalia, Sudan, Swaziland, 
Tanzania, Uganda, Zambia, and Zimbabwe. Viewed at: http://www.aripo.org/a bout-aripo/membership-
member-states .   
23 ARIPO must ensure compliance with national le gislation as part of th e process of substantive 
examination. No provisions on parallel imports, including through compulsory licensing or government use, exist at ARIPO level. WT/TPR/S/340 • Zambia 
 
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  those in charge of agriculture, livestock and fish eries, health, and education, may cooperate in IPR 
enforcement.  
3.118.  The Copyright and Performance Rights Act (Act No. 44 of 1994) was amended in 2010.24 
Statutory Instrument No. 100 of 2013 was issued to  facilitate the implementation of the amended 
Copyright Act. Major amendments cover, inter alia , the introduction of security holograms to 
counter copyright piracy. The amendments require th at all copyrighted audiovisual products sold in 
the Zambian market have a hologram affixed by th e Office of the Registrar. Other major changes 
are listed in Table 3.20. 
Table 3.20 Major amendments to the Co pyright and Performance Rights Act 
 New amendments 2010 Act 1994 
Complaints Office of the Attorney General may complain on 
behalf of the copyright owner Only the right owner may complain 
Arresting officers Any police officer with knowledge of copyright Only a sub-inspector may conduct 
a seizure 
Court IP offences may be handled by subordinate 
courts All cases must go to the High Court 
Source: Information provided by the authorities.  
3.119.  The amendments also introduced a number of new types of offences in section 28, and an 
increase in penalties. The new copyright offences include: 
a. Installation of an infringing computer programme in a computer; 
b. Compilation of musical tracks or visual images other than those permissible under the 
Act; 
c. Offering for sale infringing musical compilations or visual images or audiovisual 
compilations; 
d. Use of a record company or publisher's registered label or trademark on an infringing 
compilation; 
e. Unlawful re-transmission or re-broadcasting; 
f. Unlawful use of a single unit dwelling device for multiple dwelling; 
g. Unlawful access to a television signal; 
h. Unlawful record for sale or hire of a broadcast; or 
i. Synchronization of music and visual works without the consent of the copyright owner.  
3.3.4.4  IPR bills under consideration 
3.120.  The authorities intend to make significan t improvements to the legislation on industrial 
property rights, and to prepare bills for new IP rights (Table 3.21), with a view to bringing the 
legislation into compliance with the TRIPS Agreement.  
Table 3.21 Summary of the changes proposed in the bills 
IP rights  Changes proposed 
Patents Compulsory and contractual licensing; 
International exhaustion of rights; Enforcement of IPRs through cr iminal or civil proceedings; 
Protection of pharmaceutical patents; Protection of utility models; International filing of patent s (PCT and ARIPO applications); 
Harmonized duration of validity and rene wal in line with the TRIPS Agreement. 
                                               
24 Copyright and Performance Rights (Amendment) Act, 2010. Viewed at: 
http://www.wipo.int/edocs/lexdocs/laws/en/zm/zm048en.pdf . WT/TPR/S/340 • Zambia 
 
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  IP rights  Changes proposed 
Trademarks Protection of service marks; 
Geographical indications; 
Protection of well-known marks; 
International exhaustion of rights; 
Enforcement of IPRs through cr iminal or civil proceedings; 
Border measures on seizure of goods; 
Incorporates provisions of the Madrid Protoc ol on International Registration of Marks; 
Harmonized duration of validity and rene wal in line with the TRIPS Agreement.  
Registered 
industrial designs Voluntary licensing; 
Compulsory licensing; International exhaustion of rights; Enforcement of rights  through criminal or civil proceedings; 
Harmonized duration of validity and rene wal in line with the TRIPS Agreement. 
Bills on new IP rights 
Layout 
designs Layout Design of Integrated Circuits Bill of 2015 
Traditional 
knowledge Protection of Traditional Knowledge, Genetic Resources and Expression Draft Bill of 2015 
Source: Information provided by the PACRA. 
3.3.4.5  Enforcement  
3.121.  PACRA cooperates with the Intellectual Property Unit (IPU) of the Zambia Police Service in 
the prosecution of infringement cases of counterfeit  goods. Copyright protection at the border is 
conducted by the IPU, in accordance with th e Customs and Excise Act. To improve public 
awareness of protecting IPRs, PACRA developed a website in 2009 and established a Public Relations Office (PRO) in 2012 to enhance dissemination of information and liaison with the public. 
In 2015, PACRA established a Compliance and Awareness Unit to further increase activities aimed 
at educating people on the need to protect and respect IPRs. 
 
 
 WT/TPR/S/340 • Zambia 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Main features 4.1.  Although the agricultural sector contributes to only some 10% of Zambia's GDP, it continues 
to be of significant importance for the economy, as it provides a livelihood to over 70% of the 
population, and contributes to about 10% of tota l export earnings, led by sugar, cotton, and 
tobacco.  
4.2.  Zambia's agricultural sector faces several challenges. These include a reliance on rain-fed 
practices, poor irrigation infrastructures and mechanization, a weak research and development 
system, as well as limited access to credit by smallholder farmers in particular. 
4.3.  Zambia has vast agricultural potential, including abundant fertile land and water resources. 
Some 58% of its total land area (about 43 million hectares) is classified as medium to high 
potential for agricultural production, but only 14% of agricultural land is utilized to date.  
4.4.  Small-scale farmers account for some 70% of total employment in agriculture. In fact, they 
operate the majority of agricultural land, and produce a number of staple and cash crops such as 
maize, seed cotton, sorghum, rice, millet, and s unflowers; while the production of tobacco, Irish 
potatoes, wheat, and soya beans is dominated by large-scale farmers.
1 
4.5.  During the review period, Zambia's agricultural production was volatile, as a result of rain-fed 
agricultural practices. In most cases, good pe rformance was a consequence of favourable weather 
conditions in the major agricultural regions; in addition, the recent increased use of fertilizers by farmers, under the Government's Farmer Input Support Programme (FISP), also played a part.  
4.6.  According to the authorities, the Governme nt's annual spending on agricultural and rural 
development has exceeded 10% of the total during most years of the review period.
2 The spending 
is mostly directed towards two programmes: the FISP and the maize marketing programme 
through the Food Reserve Agency (FRA). 
4.1.2  Policy  4.1.2.1  Overall objectives 
4.7.  The Revised Sixth National Development Plan (R-SNDP) considers agriculture, including 
livestock and fishery, to be one of the main steppi ng stones for diversifying Zambia's economy. Its 
ambitions include several infrastructural investments to support agricultural development, as well as food security, in an environmentally sustainable manner. 
4.8.  The National Agriculture Policy (NAP), i.e. the agricultural chapter of the R-SNDP, aims at 
facilitating and supporting the development of a sustainable and competitive sector that assures food security in Zambia. The NAP's first generation  was designed to cover the period 2004-15, and 
it aimed to promote private-sector-led agricultural  development. During its implementation period, 
crop production recorded positive growth. Ho wever, the sector continued to face several 
challenges including: low agricultural productivity; inefficient agricultural input and output 
markets; poor access by small-scale farmers to productive agricultural resources and services; and 
weak public and private sector capacity to fa cilitate creation of an enabling environment. 
4.9.  In 2012, the NAP was revi sed. It will be implemented from 2012 to 2030, with the aim of 
building a "competitive and diversified agricultur al sector driven by equitable and sustainable 
agricultural development", through liberalization, commercialization, promotion of public and 
private partnerships, and provision of effective agricultural services. According to the authorities, the objectives of the 2012-30 NAP are multifaceted and cover issues such as: a sustainable 
increase in agricultural productivity of major crops with comparative advantage; continuous 
                                               
1 CUTS International (2013). 
2 Ministry of Agriculture and Livestock (2013). WT/TPR/S/340 • Zambia 
 
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  improvement of agricultural input and product mark ets; increased agricultural exports as a way of 
fully utilizing preferential markets; increased access to productive resources and services for small-scale farmers; and the strengthening of public- and private-sector institutional capabilities. 
4.10.  Several laws regulate Zambia's agricultural sector (Table 4.1). The Ministry of Agriculture 
and Livestock is in charge of the overall agriculture policy. Many other institutions, including the 
private sector and NGOs, are involved in the fo rmulation and implementation stages. The Seed 
Control and Certification Institute (SCCI) assists in providing quality seed for Zambian farmers. 
The National Plant Genetic Resource Centre is in charge of the collection and preservation of 
genetic resources. Other key players in policy impl ementation in agriculture include the University 
of Zambia, the ministry in charge of science and technology, and the National Science and Technology Council. 
Table 4.1 List of selected laws re gulating agriculture in Zambia  
No.  Legal instrument Purpose 
1.  Plant Breeder's Right Act No. 18 of 
2007 Protection of plant breeders' ri ghts and registra tion of plant 
varieties to safeguard and streamline matters of plant variety 
ownership and use  
2.  Cooperative Society Act No. 20 of 
1998 Law regulating the formation and registration of co-operative 
societies 
3.  Fisheries Act No. 22 of 2011  Promotion of sustainable deve lopment of fisheries and a 
precautionary approach in fisheries management, conservation, utilization and development; 
 Establishment of fisheries management areas and fisheries 
management committees; 
 Regulation of commercial fishing and aquaculture; 
Establishment of Fisheries and Aquaculture Development Fund 
4. Fertilizer and Feed Act No. 13 of 
1994  Regulation and control of th e manufacture, processing, 
importation and sale of agricultural fertilizer; 
 Minimum standards of effectiv eness and purity of such 
fertilizers 
5. Food Reserve Act No. 20 of 2005 Establishment of the Food Reserve Agency for the purpose of 
securing the national strategic food reserve 
6. Agriculture Credit Act No. 23 of 
2010  Establishment of the Warehouse Licensing Authority and its 
functions and powers; 
 Facilitation of the borrowing of money on the security of 
charges created on farming st ocks and other agricultural 
assets; 
 Registration of charges; 
 Certification of warehouses; 
Issuance and negotiations  of warehouse receipts 
7. Dairy Industry Development Act 
No. 22 of 2010  Aims to develop an efficient an d self-sustaining dairy industry 
that will effectively contribute  towards poverty alleviation, 
household food security and employment creation; 
 Establishment of the Dairy Industry Development Board; 
 Enhancement of milk production; 
 Processing, manufacturing, marketing and distribution of milk; 
 Ensuring of collaboration and participation of all stakeholders 
within the dairy industry and provision of wider service to farmers in the dairy industry;   
 Promotion of self-regulation of the dairy industry through the 
development and use of  codes of practice 
8. Cotton Act No. 21 of 2005 Regulation of production and ginn ing of seed cotton and control of 
production and marketing of cotton 
9. Coffee Act No. 13 of 1994 Control of production and marketing of coffee 
10. Agricultural Statis tics Act No. 13 of 
1994 Collection, compilation and publication of agricultural statistics  
11. Noxious Weeds Act No. 13 of 1994 Eradication of noxious weeds 
12. Plant Pests and Diseases Act No. 
13 of 1994 Eradication and prevention of introduction and spread of plant 
pests and diseases in Zambia 
13. Plant Variety and Seeds Act No. 21 
of 1995  Regulation and control of the production, sale, export and 
import of seed for sowing; 
 Testing and minimum standards of germination and purity 
thereof;  
Certification of seed WT/TPR/S/340 • Zambia 
 
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  No.  Legal instrument Purpose 
14. Tobacco Act No. 13 of 1994  Regulation of the production , export, import, packing and 
marketing of tobacco in the Republic of Zambia;  
Direction and promotion of research in connection with tobacco 
15. Tobacco Levy Act No. 13 of 1994 Imposition of levy on tobacco grown in the Republic of Zambia 
16. Animal Identification Act No. 28 of 
2010 Registration of animal identifica tion marks and marking operators  
17. Prevention of Cruelty of Animals 
Act No. 13 of 1994  Prevention of cruelty to animals;  to specify acts and omissions 
which amount to cruelty and penalties therefore; and 
Prescribes the powers of police officers 
18. Animal Health Act No. 27 of 2010  Prevention and control of animal diseases; 
 Quarantine of animals; 
 Regulation of the importation and exportation of animals, 
animal products, animal by-product s, articles and animal feed;  
Establishment of the Animal Disease Control Fund 
19. Veterinary and Veterinary Para-
Professional Act No. 45 of 2010 Licensing of laboratories and animal health facilities and 
recognition and approval of trai ning programmes for veterinary 
and veterinary para-professionals 
Source: Ministry of Agriculture and Li vestock of the Republic of Zambia. 
4.1.2.2  The Farmer Input Support Programme (FISP) 
4.11.  The Farmer Input Support Programme (formerly the Fertilizer Support Programme) has 
been under implementation since the 2002-03 seas on. According to the authorities, fertilizer 
distribution under the programme expanded remarkably between the 2002-03 and 2012-13 farming seasons, from 48,000 tonnes to nearly 183,000 tonnes. It pursues the objectives of, 
inter alia , increasing maize production through the provision of fertilizer and improved seed, while 
creating an environment for development of private sector input supply chains. As a reflection of the Government's efforts to promote crop diversification, the range of crops under the FISP was expanded in recent years to include rice in 2010-11; and sorghum, cotton, and groundnuts in 
2012-13.  
4.12.  Since its inception in 2002, government spending on FISP, in absolute value, followed a 
positive trend until 2012; in 2013, the Government decided to reduce the magnitude of its subsidy 
to the programme (Section 1).  
4.13.  In order to be eligible for the FISP, farmers are required to: be a member of a cooperative 
or other farmer organization; be a smallholder farmer  within the coverage area; have up to 5 ha of 
land and the ability to cultivate at least 0.5 ha of land; have the capacity to make the initial 
payment (i.e. the farmer contribution to FISP); and not be a defaulter to the Food Reserve Agency (FRA) and/or any other agricultural credit programme. 
4.1.2.3  The Food Reserve Agency 
4.14.  The Food Reserve Agency (FRA) was created through the Food Reserve Act to ensure 
national food security and provide market access for rural-based smallholder farmers by maintaining a sustainable national strategic food reserve. Its responsibility is mainly to administer 
(constitution, maintenance, and offloading) the strategic food reserves; and engage in marketing 
facilitation, development and management of the national storage facilities. Currently, the main agricultural commodities covered by FRA's activities are rice, white maize, and groundnut.  
4.15.  The FRA is a parastatal marketing board which buys designated crops (mainly maize) in 
major producing areas for export or domestic marketing at prices fixed through a consultative process involving key stakeholders, including the Stock Monitoring Committee (chaired by the Ministry of Agriculture) and the Zambia National Farmers Union. In general, prices are set in 
consideration of production costs . The Ministry of Agriculture maintains a monitoring mechanism 
(taking into account mainly the price) to determine crop deficit.  
4.16.  In deficit production years, the FRA imports crops, or offloads part of its strategic reserves 
and embarks on various crops sale programmes destined mainly for grain processors that operate 
at national level; and for vulnerable communities, through the "Community Maize Sales Programme", at rates lower than market prices. In general, prices take into account the prevailing 
market prices of the designated commodity both locally and regionally.  WT/TPR/S/340 • Zambia 
 
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  4.17.  According to the authorities, specific sales modalities are elaborated by the FRA each time a 
commodity sale programme is initiated. Such modalities include the main rules of procedure, including the selection criteria for beneficiary processors and communities.  
4.18.  The FRA also facilitates marketing for smallholders (those operating less than five hectares) 
by opening several buying points relatively clos e to their production sites. The farmers must 
comply with a number of product quality standards.  Reserves are maintained in different parts of 
the country at the cost of the FRA. Before any buying session, the FRA publishes the precise dates 
in local newspapers, in addition to the amount to be purchased and the prices. The purchasing 
prices are generally based on production costs. 
4.19.  The FRA is funded by the Zambian Government through the national budget. A minimum 
stock of 500,000 metric tonnes should be permanently in stock.  
4.20.  The agricultural marketing policy is reflected in the FRA Act. It provides for the necessary 
conditions to encourage the private sector to develop efficient agricultural production and marketing systems, while curtailing direct interv ention and control by government agencies and 
institutions. According to the authorities, the presence of the FRA in remote rural areas has 
contributed to the development of the private se ctor through increased business opportunities for 
local transporters, empty bag producers, storage maintainers, and financial services providers. 
Efforts are also undertaken to encourage public-private partnership by promoting a liberal market. 
4.1.2.4  Land policy 4.21.  Land tenure is regulated through the Lands Act of 1995. It recognizes two land tenure types 
in Zambia: state lands and customary lands. About 6% of lands in Zambia are classified as state 
lands, and they are usually for residential or commercial use by government services. The 
remainder, classified as customary land, falls un der the jurisdiction of traditional chiefs and 
encompasses agricultural lands. 
4.22.  Under the Lands Act, ownership of all land in Zambia is vested in the President on behalf of 
the people. The President may alienate this land ownership to any Zambian, or non-Zambian under specific circumstances, through leasehol d tenure. Leasehold tenure may be granted for a 
maximum period of 99 years, with the possibility of extension; and it can be used as collateral. In 
accordance with the Lands Act, the President shall not alienate any land held under customary tenure without first consulting and obtaining the approval of the local authority.  
4.23.  Before state land can be bought and a ti tle deed issued, "state consent", issued by the 
Commissioner of Lands, must be obtained. With respect to customary lands, the following 
documents are required: written consent of the area  Chief and approval of the District Council in 
the area; in the case of game management area s, approval from the Director General of the 
Zambia Wildlife Authority (ZAWA) is required. The authorities recognize that out of the estimated 
1.5 million small-scale farmers, only 3% have title deeds; and the lack of title deeds, in many cases, discourages small-scale farmers from adopting a sustainable, long-term land management 
approach.
3 
4.1.2.5  Trade policy measures 4.24.  The average tariff protection of agriculture and fishing (ISIC Rev.2, 1) stood at 19.2% in 
2016, slightly up from 19.1% in 2008, with tariffs  ranging from zero to 25% (Section 3.1).  
4.25.  The lowest tariff rates (mostly zero) apply to oilseeds, fats, oil and their products, while the 
highest average rates apply to selected products such as cocoa, tea, be verages, spirits, and 
tobacco. In addition, VAT applies on domestically produced and imported agricultural goods at a 
standard rate of 16%, while basic foodstuffs (e.g . brown bread, maize meal, eggs, milk, fruit, and 
vegetables) are zero-rated. Importers of animals and animal products, plants and plant products, and food products must obtain an import permit (Section 3). 
                                               
3 Ministry of Agriculture and Cooperatives (2011). WT/TPR/S/340 • Zambia 
 
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  4.26.  During the review period, Zambia notified to  the WTO that it did not subsidize its exports of 
agricultural goods for the period 2003-10.4 It also notified that during calendar years 2004, 2006, 
2008, 2010 and 2012, all domestic support related to Green Box measures.5 The main areas of 
public support were development programmes in the framework of the Fertilizer Support 
Programme; research; agro-economic services; veterinary and phytosanitary services and quality 
control; resource conservation and environmental management; as well as actions related to public stock holding for strategic food reserves.  
4.1.3  Key sub-sectors  
4.1.3.1  Crops Maize 4.27.  Maize is the primary calorie source for Zambians. It is grown in almost all parts of the 
country mostly by small-scale farmers, responsi ble for some 80% of the country's annual maize 
production. Maize cultivation is mostly rain-fed; this leads to substantial fluctuation in production from one year to another. However, Zambia's maize production has performed well during the 
review period: the 2009-10 and 2013-14 agricultural seasons, for example, are considered to have 
been some of the best maize harvests in Zambia. The expansion in maize production over the period corresponds to the scaling up of maize purchases at pan-territorial, above-market prices 
through the Food Reserve Agency (FRA) and to subsidized fertilizer distribution under the Fertilizer 
Support Programme. 
Floriculture 4.28.  Zambia's floriculture production is largely dominated by roses (with some 95% of total 
production), and the rest consists of summer flowers such as Atriplex , Amaranthus , Ammi majus , 
Euphorbia , Hypericum , Bupleurum , and Rudbeckia . The sub-sector is increasingly becoming one of 
the suppliers of Zambia's main non-traditional exports. 
4.29.  The sub-sector employs over 6,000 peop le, and provides foreign earnings of about 
US$40 million annually. However, due to the 2009 economic downturn, export revenues dropped by nearly half. EU countries, mainly the Nether lands, Germany, and the United Kingdom are the 
main export markets for Zambian flowers. 
4.1.3.2  Livestock 4.30.  The livestock sub-sector accounts for 42% of total agricultural production, and it has 
noticeably expanded during recent years (Table 4. 2). It is an important tool for poverty reduction 
in Zambia. Its related products, especially meat and milk, contribute to food security, as they are 
sources of high quality proteins, among other nutriments.   
4.31.  In addition, livestock production in Zambia enhances the economic viability and 
sustainability of farming systems since it contributes to the diversification of income, provides 
employment for rural populations, and serves as precautionary saving. Livestock often forms a major capital reserve of farming households, and contributes substantially to crop production 
through the provision of draught power and manure.  
4.32.  Budget allocation to the sub-sector remains relatively low (less than 20% of the agriculture 
budget). Furthermore, low productivity due to a lack of effective breeding programmes and poor pasture management systems, as well as high animal mortality rates, constitute serious 
constraints. As a consequence, the performance of the livestock sub-sector remains limited.  
Table 4.2 Livestock population and products, 2008-14  
 2008 2009 2010 2011 2012 2013 2014  
Live animals 
 Cattle 2,457,563 2,315,327 3,038,000 3,837,880 3,932,269 4,026,658 4,319,277  
                                               
4 WTO document G/AG/N/ZMB/7, 2 March 2012.  
5 WTO document G/AG/N/ZMB/8, 4 September 2013.  WT/TPR/S/340 • Zambia 
 
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   2008 2009 2010 2011 2012 2013 2014  
 Goats 746,143 758,501 1,380,100 2,067,858 1,839,650 3,023,585 3,538,785  
 Sheep 80,541 83,524 88,507 91,490 95,473 101,456 115,338  
 Pigs 583,036 655,919 700,802 832,685 910,568 1,098,951 1,533,402  
 Poultry 73,290,635 74,700,661 75,928,130 78,585,623 86,745,351 122,605,273 146,055,266  
Products 
 Milk (MT) 160,881 170,000 215,000 306,000 370,000 452,000 463,020  
 Eggs  ('000) 125,000,000 226,000,000 326,000,000 429,000,000 529,547,245 630,112,735 686,388,112  
 Hides 203,989 226,654 238,584 245,987 278,219 289,025 303,174  
 Beef 20,865,095 22,435,586 23,129,471 25,874,903 29,375,668 30,474,284 32,913,006  
 Pork 1,311,575 137,071,000 288,767,500 328,752,000 332,039,520 383,378,816 408,751,305  
 Poultry 1,701,265 1,809,857 1,846,793 5,274,563 1,580,529 3,409,572 3,818,227  
Source: Data provided by the Zambian authorities.  
4.1.3.3  Fisheries 
4.33.  Zambia has 15 million hectares of water in the form of rivers, lakes and swamps, which 
provide favourable conditions for freshwater fisheries. The country is also richly endowed with resources suited to aquaculture development.  
4.34.  The fisheries sub-sector is a noticeable contributor to livelihood in Zambia's rural areas. 
Some 300,000 people derive their livelihood from fisheries directly as fishers and fish farmers, or 
indirectly as traders, processors and other servic e providers. Fishing is carried out by industrial 
operators and traditional artisanal fisheries. 
4.35.  The Department of Fisheries in the Ministry of Agriculture and Livestock is mandated 
through the Fisheries Act to manage the fisheries resources of the country. In order to ensure sustainable utilization of the fisheries resources in line with the provisions of the Act, the following 
control measures are employed: 
 An annual fishing closure, from 1 December to 28 February the following year, to protect the 
breeding of the commercially preferred species (mostly Tilapia species) whose breeding peaks in this period;  
 A mesh size restriction of not less than 50 mm for all stationary gillnets;  
 The introduction of permanently closed areas as sanctuaries and breeding grounds for 
commercially important species; 
 A complete ban on the use of certain destructive fishing methods such as the forcefully 
driving of fish into set nets, use of explosiv es, use of weirs targeting migratory fish, and 
beach seine nets operated in shallow waters, which incidentally destroy fish nests and foul 
the water by stirring up silt. 
4.1.3.4  Forestry 4.36.  The forestry sub-sector as a whole contri butes to about 5.2% of Zambia's GDP. The total 
national biomass is estimated at 6 billion tonnes. There are approximately 2.8 billion tonnes of 
carbon stored in Zambian forests. The potential for increased carbon sequestration from the 
terrestrial forests in Zambia is generally high due to the high total growing stock of the forests and the potential for reducing emission from the fo rests. Over 65% of the forests are secondary 
regeneration with active growth potential. 
4.37.  According to the authorities, the main forestry activities include forest-based industries, 
commercial logging, charcoal production, and fuelwood and non-timber forest product collection. 
The forestry sub-sector has great potential for employment creation, supply of raw material from 
sawmills for downstream production of various products, supply of pulp and paper, sustainable supply of wood fuel, and carbon sequestration an d trade. Wood and wood product exports have 
also been significant.  
4.38.  The country has a new National Forestry Policy since 2014. It aims to reduce deforestation 
and forest degradation. It is also focused on ensuring increased forest cover and enhanced carbon WT/TPR/S/340 • Zambia 
 
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  stocks through integrated participatory forest management, improved law enforcement and private 
sector investment. 
4.39.  The sub-sector faces several challenges, including low investment, safety and health risks 
related to the use of old technology in the production of forest products, and a lack of innovative 
and incentive-based mechanisms to encourage stakeholder participation in sustainable forest 
management. 
4.40.  According to the authorities, the new policy will explore appropriate approaches to 
developing value addition and sustainable resource management. 
4.2  Mining and Energy 4.2.1  Overview 4.41.  The mining sector accounted for about 10% of Zambia's GDP in 2015 and employed 
80,000 people in 2013. Furthermore, the sector acco unts for almost 70% of export earnings, with 
a large contribution from copper mining (over 97% of the sector's exports). Despite subdued growth of global commodity prices, regulatory uncertainty, and infrastructure constraints, Zambia 
continues to attract foreign direct investment in the mining sector. In addition, mining production 
increased from 572,793 tonnes in 2008 to about 800,000 tonnes in 2013 before dropping slightly in 2014.
6 
4.42.  In addition to copper mining, good investme nt opportunities also exist in the extraction and 
processing of several other minerals, including gold, gemstones, a variety of industrial minerals and potential energy sources such as uranium, coal and hydrocarbons. 
4.43.  The Ministry of Mines, Energy and Water De velopment is responsible for the mining policy in 
Zambia. During the review period, the main legi slation regulating the sector (the Mines and 
Minerals Development Act, 2008) was reviewed and replaced by the Mines and Minerals Development (Amendment) Act, 2015. It entered into force on 1 July 2015. In substance, the Act 
revises regulations relating to the exploration of mining and processing of minerals; provides for 
safety, health and environmental protection in mining operations; and provides for the 
establishment of the Mining Appeals Tribunal.  
4.44.  The exploration and mining of uranium are regulated through the Mines and Minerals 
Development (Prospecting, Mining and Milling of Uranium Ores and Other Radioactive Mineral Ores) Regulations of 2008. 
4.45.  The mineral royalties that are currently applicable, as stipulated in the Mines and Minerals 
Development Act No. 11 of 2015, are 9% of production value for opencast mining, and 20% for 
underground mining.  
4.46.  Under the Mines and Minerals Development Act, there is a strict requirement that a person 
shall not explore for minerals or carry on mining operations, mineral processing operations or gold 
panning, except under the authority of a mining ri ght, mineral processing licence, or gold panning 
certificate granted under the Act. In addition, wr itten approval by the Environmental Management 
Agency of the environmental impact assessment is required.  
4.47.  Foreigners and nationals have the right to apply for mining rights under the Act. However, 
artisanal mining can only be undertaken by a citi zen or cooperative wholly composed of citizens, 
while small-scale mining can only be undertaken by a citizen-owned, citizen-influenced or 
citizen-empowered company.  
4.48.  Generally, mining rights issuance is based on the "first come, first served" principle. 
Applications for exploration licences are made to the Director of Mining Cadastre. The Mining 
Licensing Committee considers the applications an d grants the licences. However, where mineral 
potential for an area is known, the Minister may license the area through a bidding process. He 
                                               
6 Zambia Development Agency online informat ion, "Mining Sector Profile". Viewed at: 
http://www.zda.org.zm/?q=content/mining-sector . WT/TPR/S/340 • Zambia 
 
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  may issue a notice in a daily newspaper of general circulation in Zambia, inviting bids for mining 
rights over identified areas or mineral resources which are not subject to mining rights or non-mining rights.  
4.49.  The bids are evaluated by a Technical Committee, which is established by the Minister. The 
evaluation takes into account the bidder’s financial and investment plan; whether the holder has 
been compliant with regulations and provisions of the Act; and any other matter relevant for the purpose of the Act. The Technical Committee makes recommendations to the Mining Licensing 
Committee which is the ultimate granting authority.  
4.50.  There are two types of mining rights: expl oration and mining licences. There are two types 
of exploration licence depending on the scale of the operation: large-scale and small-scale, while there are three types of mining licence: artisa nal, small-scale and large-scale (Table 4.3). 
Table 4.3 Mineral Rights in Zambia  
Type of right Scale of operation  Validity Maximum area Required 
documents 
Exploration Large-scale  4 years (renewable 
but total maximum period not exceeding 10 years) 2000 km
2 As stipulated in the 
First Schedule of SI No. 7 of 2016, Mines and Minerals Development (General) Regulations, 2016 
Small-scale 4 years 10 km2 
Mining Large-scale 25 years 250 km2 As stipulated in the 
First Schedule of SI 
No. 7 of 2016, 
Mines and Minerals 
Development 
(General) 
Regulations, 2016 Small-scale 10 years 4 km2 
Artisanal 2 years 6.68 hectares 
Source: Information provided by the Zambian authorities. 
4.51.  Mines in Zambia are operated by privat e companies. However, the Government retains 
minority interests in most of the large copper projects through its holding company Zambia Consolidated Copper Mines Investments Holdings  Plc (ZCCM-IH). ZCCM-IH holds shares of 
between 10-35% in all the large-scale mining companies on behalf of the Zambian Government. 
However, the Government directly participates in the largest emerald mine in Zambia, Kagem, 
where it holds 35% of shares. 
4.52.  In general, all large-scale mining companies are foreign-owned (Table 4.4). 
Table 4.4 Ownership of larg e-scale mines in Zambia 
Zambian company Location Controlling company Country 
Mopani Copper Mines Plc (MCM), 
Nkana and Mufulira Mines Kitwe and Mufulira Glencore (Swiss 
73%)/Xstrata/First Quantum (13%)/ZCCM-IH (GRZ) Switzerland/Canada-
Australia/Zambia 
Konkola Copper Mines Plc 
(KCM), Konkola, Konkola Deep 
and North, Nchanga Tailings, 
Nchanga Chililabombwe, Kitwe, 
Nampunwe and 
Chingola Vedanta/ZCCM-IH 
(GRZ) India/UK/Zambia 
Bwana Mkubwa Mining Ltd (BMML) Bwana 
Mkumbwa/Lonshi Ndola First Quantum Minerals 
Ltd (FQM)/ZCCM –IH 
(GRZ) Canada-
Australia/Zambia 
Chibuluma Mines Limited, 
Chibuluma South and West Kalulushi Metorex/ZCCM-IH  
(GRZ) South Africa/Zambia 
Non Ferrous Metals Africa Mining Plc (NFC), Chambishi Mine Chambishi China Non-Ferrous 
Metals Corporation/ZCCM-IH  (GRZ) China/Zambia WT/TPR/S/340 • Zambia 
 
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  Zambian company Location Controlling company Country 
CNMC Luanshya Copper Mines 
Plc Luanshya China Non-Ferrous 
Metals 
Corporation/ZCCM –IH 
(GRZ) China/Zambia 
Kansanshi Mining Plc Solwezi First Quantum Minerals 
Ltd (FQM)/ZCCM-IH  
(GRZ) Canada-
Australia/Zambia 
Lumwana Mining Company 
Limited Solwezi Barrick Gold Canada 
Albidon Zambia Limited Mazabuka Albidon 
Limited/Jinchuan/ZCCM-IH (GRZ) Australia/China/Zambia 
Chambishi Metals Plc Chambeshi Enya/ZCCM-IH India/Zambia 
Lafarge (Limestone) Lusaka/Ndola Lafarge France 
Kalumbila Minerals Limited Solwezi First Quantum Minerals 
Limited Canada-Australia 
Lubambe Copper Mine Limited Ch ililabombwe VALE/African Rainbow 
Minerals/ZCCM-IH Brazil/South 
Africa/Zambia 
Maamba Collieries Limited Sinanzogwe Nava Bharat/ 
ZCCM-IH India/Zambia 
Note: ZCCM-IH is government-owned. 
Source: Information provided by the Zambian authorities.  
4.53.  Average tariff protection for mining and quarrying stood at 6.9% in 2016 (Section 3.1).  
4.54.  In 2012, Zambia became fully compliant with the requirements of the Extractive Industries 
Transparency Initiative. 
4.2.2  Key sub-sectors  4.2.2.1  Copper and cobalt 4.55.  Copper production was generally high du ring the review period; however, the recent 
slowdown of the global economy had a negative effect on production figures in recent years 
(Table 4.5).  
Table 4.5 Copper and cobalt production in Zambia, 2000-14  
Year Copper (T) Cobalt (T) 
2000 226,804.84 3,168.99 
2001 297,292.18 4,352.26 
2002 335,023.12 3,912.76 
2003 372,211.75 3,202.20 
2004 424,141.69 2,641.18 
2005 468,148.38 5,447.50 
2006 514,888.48 4,648.68 
2007 565,550.37 4,459.13 
2008 574,900.97 4,097.43 
2009 635,811.06 1,411.08 
2010 676,198.54 1,327.20 
2011 667,604.32 1,166.00 
2012 697,910.66 280.79 
2013 754,918.14 1,363.89 
2014 708,258.30 1,525.25 
Source: Data provided by the Zambian authorities. 
4.56.  Zambia is predominantly a copper mining country. It is well known for its high-quality 
copper and cobalt reserves located primarily in the Copperbelt Province, the north of Lusaka and 
on the border with the Democratic Republic of the Congo (DRC). In 2011, Zambia was ranked the 
sixth-largest copper ore producer in the world.  
4.57.  In 2010, First Quantum Limited acquired the Sentinel copper deposit project, located in the 
North-Western Province of Zambia. It is part of the Trident project, which comprises five WT/TPR/S/340 • Zambia 
 
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  prospecting licences totalling 2,300 square kilometres. First Quantum received large-scale mining 
licences for the development of the Trident proj ect in 2011. The licences give the company the 
exclusive rights to carry out mining operations on the full area of interest at Trident for a period of 25 years. The environmental impact assessment was approved and a land use agreement was 
established in July 2011 for the development of th e Sentinel deposit. Initially, the project is 
expected to produce 150,000 to nnes of copper in concentrate annually, before rising to 
300,000 tonnes. The commercial production was set to begin in 2014. According to the authorities, 
it has produced 21,621.66 metric tonnes of finished copper as of 30 November 2015. Sentinel has 
a defined ore body of approximately 1 billion tonnes with a mine life of 25 years. 
4.58.  During the review period, a number of cobalt and copper development and exploration 
projects were ongoing in Zambia. In 2012, Blackthorn Resources Ltd of Australia completed a 
scoping study of the development of the Kitumba pr ospect as an open-pit mine. Blackthorn also 
completed a drill programme of about 14,000 m at the Mumbwa project, which included 19 holes at the Kitumba prospect and 3 holes at the Kakozhi prospect. Caledonia Mining Corporation of 
Canada completed a series of projects on the Nama cobalt and copper prospect in the 
Chililabombwe/Solwezi District in the north of Zambia.  
4.59.  In 2012, Caledonia announced that it had reached an agreement with the Ministry of Mines, 
Energy and Water Development to start cobalt mining at Nama, to submit a feasibility study and 
programme of operations for copper production, an d to submit an updated estimate of the Nama 
project's copper-sulphide mineral reserves and resources by 30 June 2013. Caledonia planned to mine and mill about 30,000 tonnes per month of ore initially, and to produce cobalt oxide 
concentrate.
7 According to the authorities, Caledonia has not commenced any production and the 
Ministry has since suspended some of its licences. 
4.60.  Copper ores are smelted mostly into cathodes and blisters and not refined metal. Metal 
fabrication in Zambia is on a very small scale as most of the large copper mining companies export 
all their ores as cathodes/blisters. The fabricators depend on the small-scale miners whose production is quiet low. 
4.2.2.2  Energy minerals 
4.2.2.2.1  Hydrocarbons 4.61.  Historically, the country has had two major exploration programmes, by Mobil and Placid 
Oil, undertaken between 1986 and 1991 within the Lu angwa Rift Valley. Recent exploration work 
for petroleum covering parts of the North-Western, Western and Eastern Provinces of Zambia, 
using the Microbial Prospecting for Oil and Gas te chnique, indicated that the Okavango and North 
Luangwa basins have potential for oil and gas.  
4.62.  The Petroleum (Exploration and Production ) Act, 2008 prescribes the bidding process in the 
acquisition of exploration rights. The first step is the publication of a Gazette Notice issued by the Minister of Mines, Energy and Water Resources in two newspapers of general circulation in Zambia. 
4.63.  Zambia imports all its petroleum requirements, either as commingled petroleum feedstock 
or refined fuel products. Due to sustained GDP growth and an increasing number of motor vehicles in the country, the national consumption of pe troleum products increased from 752,959 tonnes in 
2010 to 1.17 million tonnes in 2014. The stat e-owned TAZAMA and 47 licensed oil marketing 
private companies are officially allowed to import and distribute refined oil; however very few are 
in operation. Most of the companies purc hase oil from TAZAMA and distribute it. 
4.64.  Zambia's comingled petroleum feedstock is refined at INDENI Petroleum Refinery. Its 
throughput capacity stands at 850,000 MT per annum. During the review period, the refinery 
encountered several shutdowns due to technical issues. During planned shutdowns, the Government imports finished petroleum products to cover for the shortfall. 
4.65.  TAZAMA Pipelines Limited is responsible for conveyance of petroleum feedstock to Ndola 
fuel terminal from the Dar es Salaam tank fa rm, through a 1,710 km pipeline. The pipeline is 
                                               
7 Zambia Extractive Industries Transparency Initiative (2014). WT/TPR/S/340 • Zambia 
 
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  working with obsolete infrastructures. As a consequence, while its initial capacity was set at 
1.1 million tonnes of crude oil, throughput was only 519,725 MT in 2014. 
4.66.  The Energy Regulatory Body (ERB) is in char ge of petroleum price setting. In addition, it is 
mandated by the Energy Regulation Act to issue licences to entities operating retail sites in the 
petroleum industry. One of the requirements of a retailing licence is related to compliance with a 
list of technical standards defined by the ERB. 
4.67.  When determining wholesale and pump pric es for each cargo of feedstock and finished 
petroleum products, the ERB uses the so-called Cost Plus Model, which is based on cost recovery 
along the petroleum supply chain. The model takes into account the costs incurred along the petroleum supply chain from the port of discharge  in Dar es Salaam to the refinery where the 
feedstock is processed up to the Ndola fuel te rminal where the product is stored and sold 
(Table 4.6). 
Table 4.6 Cost elements in the wholesale price 
Cost element Unit cost Basis 
Cost-insurance-freight (US$/MT)  Contract/supplier invoice 
Ocean losses 0.30% Best practice 
Wharfage 1.25% Tanzania Ports Authority 
Finance charges 4.00% Financier 
Collateral manager (US$/MT) 0. 39 Stock monitoring agreement 
Insurance 0.15% Insurer 
TAZAMA storage fee (US$/MT) 2.00 TAZAMA 
TAZAMA pumping fee (US$/MT) 54.00 Approved ERB pumping tariff 
TAZAMA pipeline losses 1.48% Determined by ERB 
Agency fee (US$/MT) 5.00 Agency agreement 
Refinery fee (US$/MT) 60.38 A pproved ERB processing fee 
Refinery processing losses 9% Determined by ERB 
Terminal losses (LPG, petrol, 
diesel/kero/Jet A1) 1%, 0.5%, 0.3% Best practice 
Source: Information provided by the Zambian authorities. 
4.68.  Since 2010, the ERB has maintained a Uniform Pump Pricing (UPP) framework to ensure 
that the price of fuel at all retail sites throughout the country is the same for petrol, diesel, and kerosene. The UPP functions on the basis of a transport cross subsidy mechanism, whereby oil 
marketing companies delivering fuel to sites near the depots are required to remit the transport 
differential of fuel into the UPP fund used to reimburse the transport differential for oil marketing companies delivering to sites far from the depots. The transport differential is the transport claim 
(or charge) that is applied in all towns to equalize the pump prices to the national uniform pump 
price (Table 4.7).  
Table 4.7 Cost elements in the pump price  
Cost element Unit cost Calculations 
Wholesale price to oil marketing 
company  a 
Terminal fee K 0.025/litre b 
Excise duty (incl. road levy)  c 
Ex-refinery gate  d=(a+b+c) 
Transport margin (to Lusaka) K 0.20/litre e 
Transport claim/charge +ve/-ve f 
Oil marketing company margin K 0.42/litre g 
15 days stock cost-line  h 
Total (excl. VAT)  j=(d+e+f+g+h) 
Dealer margin K 0.28/litre k 
Price to dealer  l=(j+k) 
ERB fees 0.7% m 
Strategic Reserves Fund K 0.15/litre n 
Price before VAT  q=(l+m+n) 
VAT 16% r 
Uniform pump price K/litre s=(q+r) 
Source: Information provided by the Zambian authorities. WT/TPR/S/340 • Zambia 
 
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  4.2.2.2.2  Other energy minerals 
Uranium 4.69.  Uranium exploitation remains marginal in Zambia, as annual production stands at some 
120,000 kg produced from the Nkana mines. However, in recent years, some companies, mainly 
Albidon Limited of Australia and African Energy Re sources Pty Ltd, have carried out explorations, 
focusing on potential mineralization in Karoo-aged sediments, in the Copperbelt and the Domes region of the Northwest Province.  
Coal 
4.70.  Zambia possesses substantial coal resources,  with a proven reserve of 20 million tonnes. 
The country has been producing coal since 1967 from mines located in southern Zambia, and in the Mid-Zambezi Rift Valley. In addition, other thin coal seams and carbonaceous shales have been 
identified in the Gwembe Formation of the Lu angwa and Luano-Lukusashi Valleys and in the 
eastern part of the Barotse Basin in western Zambia. 
4.71.  During the review period, Singapore's Nava Bharat Pte acquired a 65% share in Maamba 
Collieries, Zambia's largest coal producer. In 2011 , Nava Bharat established a plan to start the 
construction of a 300 MW coal-fired power plant in Zambia, to be completed by 2014. According to the authorities, the plant is expected for the first quarter of 2016. The new mine is expected to 
produce 360,000 tonnes of coal in its first year of operation, and is expected to reach a maximum 
output capacity of 2 million tonnes of coal per year. 
4.2.2.3  Electricity 4.72.  The electricity sub-sector in Zambia falls und er the jurisdiction of th e Ministry of Energy and 
Water Development (MEWD). The Electricity Regulation Board (ERB) supervises the power 
companies in accordance with the Electricity Act, Cap 433 and the Energy Regulation Act, Cap 436. Prior to actions such as concluding power purchase agreements, revising electricity tariffs or 
participating in the power utility business (generation, transmission, and distribution), companies 
must seek approval from the ERB. In 2014, the ERB issued a total of 12 licences in the electricity sub-sector (two for generation, two for dist ribution and eight for manufacturing, supply, 
installation and maintenance of solar energy syst ems). In addition, it approved new electricity 
tariffs for Zambia Electricity Supply Company (ZESCO) (Table 4.8), Zengamina Power Limited (ZPL), and the mining customers. 
Table 4.8 ZESCO's approved tariffs  
Customer category  
Old tariffs 
(K) % increment 2014 ERB 
approved 
tariffs  
(K) 
1. Metered residential (prepaid) (capacity 15 kVA)     
R1 – Consumption up to 100 kWh  Energy charge/kWh 0.15  0 0.15  
R2 – Consumption between 101 
and 300 kWh  Energy charge/kWh 0.25  24.63  0.31  
R3 – Consumption above 300 kWh  Energy charge/kWh 0.41  24.63  0.51  
Prepaid  Energy charge/kWh 0.28    
 Fixed monthly charge  14.63  24.63  18.23  
2. Commercial tariffs (capacity 15 kVA)     
Commercial  Energy charge/kWh 0.27  15.38  0.31  
 Fixed monthly charge  47.75  15.38  55.09  
3. Social services      
Schools, hospitals, orphanages, 
churches, water pumping and street 
lighting  Energy charge/kWh  0.24  15.38  0.28  
 Fixed monthly charge  41.52  15.38  47.91  
4. Maximum demand (MD) 
tariffs system      
MD1 – Capacity between 16 and 
300 kVA  MD charge/kVA/ 
month  11.69  19.49  13.97  WT/TPR/S/340 • Zambia 
 
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  Customer category  
Old tariffs 
(K) % increment 2014 ERB 
approved 
tariffs  
(K) 
 Energy charge/kWh  0.17  19.49  0.20  
 Fixed monthly charge  114.50  19.49  136.82  
MD2 – Capacity from 301 to 
2,000 kVA  MD charge/kVA/ 
month  21.87  19.49  26.13  
 Energy charge/kWh  0.14  19.49  0.17  
 Fixed monthly charge  228.99  19.49  273.62  
MD3 – Capacity from 2,001 to 
7,500 kVA  MD charge/kVA/month  39.72  5.11  41.75  
 Energy charge/kWh  0.13  5.11  0.14  
 Fixed monthly charge  551.56  5.11  579.74  
MD4 – Capacity above 7,500 kVA  MD charge/kVA/month  39.94  5.11  41.98  
 Energy charge/kWh  0.11  5.11  0.12  
 Fixed monthly charge  1,103.13  5.11  1,159.50  
Source: Energy Regulation Board (2015), Energy Sector Report 2014, Appendix 2. Viewed at: 
http://www.erb.org.zm/reports/EnergySectorReport2014.pdf .  
4.73.  Zambia Electricity Supply Company (ZESCO), a state-owned company, is the dominant 
operator in the electricity business in Zambia, running and operating power stations, transmission lines, and distribution networks. The revision of the Electricity Act in 2003 allowed the participation 
of private companies in the three segments of th e electricity business. Although ZESCO continues 
to dominate all the segments of the sector, there are currently private independent power 
producers (IPPs): LHPC, Ndola Energy Company Limited, and Zengamina Power Limited; they sell their power to ZESCO under a power purchase agreement (PPA). 
4.74.  The other major power company is Copperbelt Energy Company (CEC), which purchases 
electricity from ZESCO and retails it to copper mining companies. CEC is a privately owned company, created after privatization of Zambia Co nsolidated Copper Mines' (ZCCM) power division. 
The company owns transmission and distribution networks in the Copperbelt region of Zambia. 
CEC purchases 55% of the power generated by ZESC O and supplies it to the mines. In addition, 
North Western Energy Company (NWEC) supplies energy to Lumwana mines. 
4.75.  ZESCO produces its power from three main  hydropower plants: Kariba North Bank, Kafue 
Gorge and Victoria Falls power stations. In addition, the company generates limited amounts of 
power from its four mini hydropower stations located in the northern part of Zambia and ten isolated diesel stations in some remote parts of the country that are not yet connected to the grid. 
4.76.  Zambia's main source of energy is hydr o generation, which accounts for more than 95% of 
the total electricity production. Other electricity sources include diesel, thermal, solar, and heavy fuel oil (HFO). In 2014, the total installed capacity in Zambia was 2,396 MW disaggregated as follows: 2,255 MW for hydro; 80 MW for thermal; 11 MW for diesel; 50 MW for HFO; and 0.06 MW 
for solar. 
4.77.  ZESCO engages in imports and exports of electricity through the Southern African Power 
Pool (SAPP) and bilateral markets.  
4.3  Manufacturing 
4.78.  The manufacturing sector in Zambia acco unts for less than 10% of the country's GDP. The 
sector is largely driven by the agro-processing (over 63% of total manufacturing production) and 
textiles and leather industries. Secondary processing of metals is also gaining importance in the 
sector, including the smelting and refining of copper, and this has led to the manufacturing of metal products. Fertilizers, chemicals, explosives and construction materials such as cement are also produced in the sector. Other activities include wood and paper products. Manufactured goods 
contribute to some 12% of the country's total exports. The main exports of manufactured goods 
are: engineering products, processed and refined foods, chemical and pharmaceutical products, 
scrap metal and leather products. WT/TPR/S/340 • Zambia 
 
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  4.79.  The sector is fundamental to the country's strategy for encouraging economic 
diversification. In this regard, the Government has put in place measures to support manufacturing activities, such as the establishment of multi-facility economic zones (MFEZs) and industrial parks, and the provision of sector-speci fic investment incentives (Section 3). All core 
manufacturing activities in Zambia are undertaken by the private sector.  
4.80.  Manufacturing suffers from weak external competitiveness due to, inter alia , the high costs 
of doing business in Zambia, fuelled by a cumber some licensing and regulatory framework, poor 
infrastructure and high transport and communication costs. 
4.81.  According to the authorities, trade policy measures in the manufacturing sector seek to 
build the country's capacity to produce in quantiti es and qualities that could be effectively traded 
in international markets. A number of steps have recently been taken towards trade facilitation, 
simplification of business licensing and reform of the labour market. Efforts are also being made to 
improve Zambia’s national quality infrastructure in order to ensure that Zambian products are accepted internationally. The average tariff ra te in manufacturing stood at 12.5% in 2016.  
4.82.  The Vision 2030, the National Development Plans (currently implementing the R-SNDP) and 
the Commercial, Trade and Industrial (CTI) Polic y provide the overall framework upon which the 
Government’s plans for the manufacturing sector are anchored. 
4.4  Services 
4.83.  The services sector continues to be the backbone of the Zambian economy (Section 1). 
Finance, tourism, transport, and communication are the main industries. Zambia has a negative balance in services trade. A number of constraints impede significant expansion of its international 
trade in services. These include limited services supply capacity; an inadequate regulatory 
framework; the absence of a national trade in services policy; and an inability to translate regulatory frameworks into opportunities provided under the WTO system.  
4.84.  Zambia's commitments under the GATS did no t change over the review period. It has bound 
market access in certain business services, construction and related engineering services, healthcare and social services, and tourism and travel-related services.
8 
4.4.1  Transport 
4.85.  The contribution of the transport (air, road , and rail) sub-sector to GDP averaged some 5% 
during the review period, with a decreasing tren d. Being a landlocked country, Zambia is heavily 
dependent on its transport network connecting it to various export and import destinations. The 
Zambian transport network includes railways, road s, aerodromes, airports, and inland waterways. 
Road transport is the dominant mode in terms of passenger and freight transportation. 
4.4.1.1  Railway transport 
4.86.  The railway sub-sector is mainly operated  by two companies. The Tanzania-Zambia Railway 
Authority (TAZARA), jointly owned by Zambia and Ta nzania, links the former at Kapiri Mposhi to 
the port of Dar es Salaam, covering a distance of 1,700 kilometres. A smaller rail line links 
Livingstone with Mulobezi covering a distance of  162 kilometres and was previously mainly used 
for ferrying timber. Zambia Railway Limited (ZRL ), a government-owned company, is mandated 
under the Railways Act to operate freight and passenger trains. In 2003, ZRL was conceded to a private operator, Railway Systems of Zambia (R SZ), until September 2012 when the concession 
was cancelled by the Government. According to the authorities, ZRL was set up to be the main 
carrier of heavy cargo, particularly for the mini ng sector. The current ZRL total route length is 
1,248 km. 
4.87.  Both ZRL and TAZARA primarily serve the mining industry. As farming took root along the 
line of rail, haulage of agricultural produce, mostly livestock, created extra business. 
                                               
8 WTO document S/DCS/W/ZMB, "Zambia Draft Co nverted Schedule of Specific Commitments", 
24 January 2003. WT/TPR/S/340 • Zambia 
 
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  4.88.  Lack of maintenance in the railway sub-sector has resulted in the poor state of the rail 
network with its corollary of inefficient services. Consequently, the road sub-sector has taken a larger share in the cargo haulage business. To date, trucks are the dominant transport mode. According to the authorities, the pricing system is fully liberalized in railway transport.  
4.89.  Railway transport is facing tough competition from the road sector and, in particular, in 
freight traffic. TAZARA's  freight traffic decreased from 0.5 million tonnes in 2011 to 0.09 million 
tonnes in 2014 and ZRL's freight traffic dropped from 1.8 million tonnes in 2003 to 0.96 million 
tonnes in 2014. Together, the railways have a combined market share of around 8%-9% of the 
total transport volumes. 
4.4.1.2  Road transport 4.90.  Road transport is liberalized in Zambia and is operated by the private sector. According to 
the authorities, anyone having a vehicle (bus or minibus) can be licensed to operate bus services. 
The presence of informal operators is also eviden t within the system. There are no limitations to 
the number of buses, and the market decides upon  routes and frequencies and service quality.  
4.91.  The Road Traffic Act (Act No. 11 of 2002) governs the public transport sector, and it 
established the Road Transport and Safety Agency (RTSA), which is in charge of all regulatory issues regarding road transport, including the implementation of international treaties and 
protocols on road transportation.  
4.92.  Zambia has a road network of about 67,671 km. Roads are classified into nine categories: 
trunk (3,088 km), main road (3,691 km), dist rict road (13,707 km), urban road (5,294 km), 
primary feeder (15,800 km), secondary feeder (10,060 km), tertiary feeder (4,424 km), park 
roads (6,607 km), and community roads (5,000 km). The Road Development Agency (RDA) is in 
charge of planning, managing and coordinating the road network in Zambia through, inter alia , 
maintenance of public roads; conducting such studies as it may consider necessary for the 
development, maintenance and improvement of the road network in Zambia; advising road 
authorities regarding the construction, rehabilitation and maintenance of roads under their jurisdiction; providing guidance and technical assistance to road authorities; preparing and 
awarding contracts and certifying works for public roads; reviewing design standards and 
classification of roads and traffic signs; planning and co-coordinating the road network in the country; enforcing axle load control; and enforcing road tolling on the core road network. 
4.93.  The Government started implementing the first Road Sector Investment Programme 
(RoadSIP) from 1998 to 2003. This was followed by RoadSIP II which was implemented between 
2003 and 2013. The programme was aimed at promoting equitable economic growth and better living conditions in Zambia, by bringing about a sustainable improvement in the condition of the 
transport infrastructure.  
4.94.  Cabotage is not allowed in principle. However, under COMESA, in certain circumstances it 
could be allowed. According to the authorities, road freight transport is largely composed of foreign 
road haulers and accounts for about 85% of the total road fleet currently traversing the Zambian 
road network. 
4.4.1.3  Air transport 4.95.  Air transport is critical to the viability of Zambia's tourism sub-sector. International 
connectivity by air is provided by one Zambian carrier (ProFlight Zambia) and 11 non-Zambian 
carriers (Air Botswana, Air Namibia, Air Zimbabwe, Emirates, Ethiopian Airlines, Fastjet, Kenya Airways, Martinair, RwandAir, South Af rican Airways and TAAG) providing scheduled 
services to and from 12destinations: Addis Ababa, Amsterdam AMS (cargo/freight only), 
Dar es Salaam, Dubai, Durban, Gaborone, Harare , Johannesburg, Kigali, Luanda, Nairobi, and 
Windhoek WDH. There are no international charter flights to and from Zambia. 
4.96.  Zambia hosts 4 international airports – Kenneth Kaunda (Lusaka), Harry Mwaanga 
Nkumbula (Livingstone), Simon Mwansa Kapwepwe (Ndola), and Mfuwe – and 46 aerodromes across the country. The main policy guidelines for air transport are contained in the Civil Aviation 
Act. WT/TPR/S/340 • Zambia 
 
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  4.97.  Zambia is a signatory to the Yamoussoukro Convention and the Convention on International 
Civil Aviation (Chicago Convention), and a member of the International Civil Aviation Organization (ICAO). Zambia has concluded 20 bilateral air services agreements (BASAs) with ICAO member 
States, including one open skies treaty with th e United States. These international agreements 
govern air transport relations between parties to  the agreement. The underlying principle of 
bilateral air services agreements is reciprocity. However, according to the authorities, since the demise of Zambia Airways, most of these BASAs remain unreciprocated, and some remain 
unexploited largely due to poor traffic demand. 
4.98.  The Civil Aviation Authority (CAA) is responsible for developing, regulating, and operating a 
safe, economically sustainable, and efficient civil aviation system.  
4.99.  The Zambian National Airports Corporation Limited (NACL) is responsible for management, 
air navigation services, maintenance and development of the four international airports; and the 
Department of Transport is in charge of granting licences for international and domestic non-scheduled air service operations into and within Zambia, bilateral air services agreements and 
scheduled air services. Cabotage is not allowed in air transport.  
4.100.  Zambia Air Services Training Institute was established in 1968 to ensure the human 
resources required for the Zambian civil aviation industry. 
4.4.2  Telecommunications 
4.101.  Telecommunications has seen positive and significant development over the last decade, 
with reforms that have opened the market to new entrants. The sub-sector is governed by the national ICT Policy of 2006, which consists of th ree core thematic areas: capacity building, a 
competitive and efficient ICT sector, and an effective legal and regulatory framework.  
4.102.  In 2009, the Government enacted a number of laws to enforce the principles and 
objectives of the National ICT Policy, through th e establishment of a new institutional and legal 
framework. In addition, the country's international telecommunications gateway was deregulated 
in order to promote competition and foreign investment in the sector and lower the high costs of communications. 
4.103.  The Information and Communication Technologies (ICT) Act of 2009 provides for the 
economic and technical regulation of information and communication technology; facilitates access to ICTs; provides for the protection of the rights  and interests of service providers and consumers; 
and mandates the Zambia ICT Authority (ZICTA) to regulate and manage radio spectrum. The 
Postal Services Act of 2009 provides for the regula tion of postal and courier services by ZICTA. 
Previously, the Ministry of Communications and Transport regulated postal and courier services. 
4.104.  The Electronic Communications and Transactions (ECT) Act No. 21 of 2009 provides for the 
development of a safe, secure and effective envi ronment for the conduct and use of electronic 
communications, with a view to encouraging investment and innovation in the industry. 
4.105.  The ICT Act of 2009 empowers the minister responsible for ICT to declare certain services 
as reserved services, having regard to the strategic and policy considerations related to providing 
the service. 
4.106.  The licensing regime in telecommunications is divided into two main categories: individual 
and class licences. Individual licences allow an entity to provide a range of telecommunications 
services, mainly infrastructure, voice, and data. Market players with a class licence must provide 
only the category for which they apply. 
4.107.  The telecommunications sector as at the end of 2015 was characterized by three mobile 
network operators namely MTN, AIRTEL and ZAMTEL with market shares of 45.5%, 40.1% and 
14.9% respectively. Market entry into the tele communications market is open. The Government 
provides guidance through the regulator who issues a call for expression of interest for the entry of 
new mobile network operators. The fixed telephone market is not open to competition. ZAMTEL is 
the only company operating in the fixed telephone market. WT/TPR/S/340 • Zambia 
 
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  4.108.  Interconnection fees are determined by the regulator through a cost-based flat 
interconnection rate, in accordance with the ICT Act. 
4.109.  In 2015, mobile penetration in Zambia  stood at 74.3% with 11.6 million mobile 
subscribers; 6.1 million users of mobile data, wi th a penetration rate of 39.0%; and 38,316 fixed 
internet users, with a penetration rate of 0.3%. 
4.110.  There are currently 19 registered internet service providers in Zambia: ZAMNET, ZAMTEL, 
Coppernet Solutions, Communication Systems, UUNET Zambia, Microlink Technologies, Real Time, 
Zain Zambia, Bringcom Zambia Ltd, Epochal Digital Technology, Oisat Cable Limited, Post Link 
Limited, MTN Zambia, Pronet Online, Quick Edge, Comium Data Zambia Limited, Foris Telecom, 
Morse Communications and Ibrust Zambia Limited. The biggest challenge in the Zambian internet 
industry is the limited availability of terrestrial  cable linking the country to submarine cables, as 
the country has only one entry point for the optical fibre network through Namibia. 
4.4.2.1  Postal sub-sector  4.111.  The postal sector in Zambia comprises a designated national postal operator (Zambia 
Postal Services Corporation – ZAMPOST) with the exclusive right to provide reserved services. 
Private postal and courier operators are licensed to supply unreserved services in concurrence with ZAMPOST. 
4.112.  Unreserved services include all letters, postcards, printed matter and small parcels 
weighing over 1 kg; and courier services. 
4.113.  The structure of postal services in Zambia also includes postal financial services, including 
traditional money transfer services which have evolved from basic money orders to electronic 
platforms such as ZAMPOST's "SwiftCash" services . The provision of international money transfer 
services in partnership with global brands such as Western Union and MoneyGram are another common feature of the postal financial services landscape.  
4.114.  The Zambia Information and Communications Technology Authority (ZICTA) is mandated 
by the Postal Services Act of 2009, to ensure  th at all Zambians, regardless of their geographic 
location in the country, have access to a range of postal and courier services that are affordable 
and of an acceptable quality (universal access to postal and courier services). ZICTA has a specific 
regulatory duty to stimulate and foster growth an d investment in the postal sector for the benefit 
of consumers, service providers and other stakeholders. 
4.115.  The Government has embarked on an electronic governance programme that aims at 
enhancing transparency, accountability, efficiency  and effectiveness in the delivery of services. 
According to the authorities, the effective implementation of the programme will ultimately contribute to the ease of doing business in Zambia. 
4.116.  The Government, through ZICTA, has recently embarked on the development and 
implementation of a comprehensive national addressing system in Zambia through the National Addressing and Postcode Project in collaboration with several stakeholders. The project involves 
the installation of street name signage and house numbers in collaboration with the respective 
local authorities who have the legal mandate under the Local Government Act to install and maintain such infrastructure in their respective districts. 
4.4.3  Financial services 
4.4.3.1  Banking and othe r credit institutions 
4.117.  The Bank of Zambia (BoZ) is mandated th rough the Bank of Zambia Act, as amended, to 
supervise and regulate the activities of banks and non-bank financial institutions (NBFIs) so as to 
promote the safe, sound and efficient operation and development of the financial system. The 
Banking and Financial Services Act of 1994, as am ended, complements the Bank of Zambia Act by 
providing for the regulatory framework for licensing, supervising, and regulating financial service 
providers in Zambia. It outlines the licensing requirements for financial service providers; their WT/TPR/S/340 • Zambia 
 
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  organization and administration; their financial accountability; their supervision and regulation; 
insolvency, dissolution, and liquidation; as well as appeals and other matters.  
4.118.  For a bank to operate in Zambia, it is required to provide, inter alia , evidence of the 
minimum required capital of K 520 million, or K 104 million or more, for foreign banks and local 
banks, respectively; a business plan with financ ial projections and forecasts for a minimum of 
three years and audited financial statements (where applicable) for the year immediately preceding the application; and a detailed curriculum vitae, including details of nationality and 
residence status, for the senior management. 
4.119.  In the BoZ's early warning system, the financial conditions and performance of banks and 
NBFIs are assessed based on four main components: capital adequacy, asset quality, earnings performance, and liquidity position. According to the authorities, the implementation of Basel II 
remains a strategic objective for the BoZ for the period 2012-15. In 2013, the Bank of Zambia 
prepared a draft regulation for Basel II and submitted it to the Ministry of Finance for issuance.  
4.120.  The structure of the banking industry as  at end-2014 comprised 19 commercial banks, of 
which eight were foreign owned
9, nine were locally owned private banks, and two were jointly 
owned by the Zambian Government and the Indi an Government (Indo-Zambia), and the Dutch 
Rabobank Group. Following the increase in the minimum capital requirements for banks to 
K 520 million and K 104 million, for foreign and locally owned banks, respectively, five subsidiaries 
of foreign-owned banks converted to locally owned private banks. This reduced the total of foreign 
owned banks to eight from 13 in 2013. Concentration is high, with the five largest banks accounting for the bulk of total banking assets (Table 4.9). Non-bank financial institutions as at 
end-2014 consisted of seven leasing companies, four building societies, one development bank, 
one savings and credit bank, one development finance institution, 66 bureaux de change, one credit reference bureau and 33 micro-finance institutions. 
Table 4.9 Commercial banks' market shar e and performance indicators, as at 
31 December 2014  
Bank  Percentage 
of assets % Percentage 
of deposits 
% Percentage 
of loans % Profit 
before 
tax 
(K m) Return 
on 
assets 
(%) Return 
on 
equity 
(%) Total 
regulatory 
capital 
ratio (%) 
Zanaco  13.6 14.4 16.9 259.4 2.9  20.5 
Stanbic  14.2 14.2 16.3 275.1 4.4 15.8 23.5 
StanChart  13.7 14.8 14.9 376.4 5.0 23.7 18.7 
Barclays  13.9 14.7 14.7 222.4 3.7 30.3 14.7 
BOC  6.7 7.2 7.2 76.7 1.8 17.9 90.3 
Finance Bank  6.7 7.1 6.7 258.4 -0.3 2.0 36.4 
Citibank  4.7 3.5 2.0 209.9 -3.5 22.7 49.9 
First National  6.7 6.4 8.8 77.1 3.1 17.2 43.3 
Indo-Zambia  4.9 4.7 3.8 71.6 4.0 9.5 60.6 
BancABC  4.0 2.2 4.3 10.7 -3.5 10.2 40.0 
Investrust  3.2 4.0 2.8 0.7 0.5 -16.7 12.0 
Ecobank  1.9 1.7 1.7 8.9 1.4 7.8 33.6 
Cavmont  1.5 1.6 2.0 2.9 -3.6 5.8 19.6 
United Bank  0.7 0.6 0.2 0.7 4.3 -16.7 59.7 
First Alliance  1.0 0.8 1.2 19.4 -0.3 11.3 36.4 
Access Bank  1.2 1.2 0.5 (-18.2) -6.2 -3.2 27.6 
Intermarket  0.6 0.7 0.6 (-5.1) 2.8 -28.3 13.2 
First Capital  0.6 0.4 0.8 (-7.8) -7.1 18.9 45.5 
AB Bank  0.2 0.1 0.2 (-22.2) -22.73 -20.5 18.8 
Total/weighted 
average  100 100 100 1,817 3.7 128.5 27.0 
Source: Bank of Zambia (2015), Financial System Supervision:  Annual Report 2014. Viewed at: 
http://www.boz.zm/publishing/39/ 2014%20Financial%20System%20Report.pdf . 
                                               
9 Of the eight foreign-owned banks,  three are Southern African banks, two are European banks, one is 
an American bank, one is an Asian bank, and one is a West African bank.  WT/TPR/S/340 • Zambia 
 
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  4.121.  Zambia's banking system has several structural weaknesses, including high interest rate 
spreads and a high ratio of non-performing loans to total loans. Access to finance is relatively low, with more than 65% of the population lacking access to financial services. According to the authorities, several initiatives are in place to address the issue. These include strategies to 
promote financial literacy among the populations;  establishing a Deposit Insurance Protection 
Scheme; mobile banking; and a series of measures to facilitate financial participation for the benefit of the population.    
4.122.  Interest rates are market determined and ar e influenced by changes in the Bank of Zambia 
Policy Rate.  
4.4.3.2  Insurance 4.123.  The Insurance Act No. 27 of 1997, as amen ded, is the main law regulating the insurance 
sub-sector in Zambia. The amendment by Act No. 26 of 2005 prohibited the existence of 
composite insurance companies, i.e. general and long-term. Other relevant legislation in the sub-sector includes: the Pensions Scheme Regulation Act No. 28 of 1996, as amended; the Road 
Traffic Act No. 11 of 2002; the Banking and Financial Services Act of 1994, as amended; and the 
Companies Act, Cap 388 of the laws of Zambia. 
4.124.  The Pensions and Insurance Authority (PIA ) is the regulator of the insurance and pension 
industry in Zambia and is an autonomous entity, as provided for in the Pensions Scheme 
Regulation Act No. 28 of 1996, as amended in 2005. It operates under the supervision of the Ministry of Finance, as it has no distinct legal personality. 
4.125.  Zambia's insurance market is underdeveloped, with a penetration rate of 1.3% and total 
premiums equivalent to only US$20 per capita.
10 The government wholly owned ZSIC Ltd is one of 
the top operators in both the general and life insurance markets (Chart 4.1). 
Chart 4.1 Insurance sector in Zambia, 2014  
PICZ 23%
MADISON 16%
ZSIC GI 17%NICO 14%GOLDMAN 6%HOLLARD 7%DIAMOND 4%PHOENIX 2%MAYFAIR 3%MEANWOOD 2%AFRICAN GREY 2%ADVANTAGE 1%FOCUS 1%
A-PLUS 1%
GENERAL ALLIANCE 1%1) General insurance market share 
by gross written premiums
AF/LIFE 
36%
MADISON 
LIFE 21%ZSIC LIFE 
21%PLAL 15%BARCLAYS 
LIFE 6%HOLLARD 
1%2) Long-term insurance market share
 
Source: Information provided by the Zambian authorities. 
4.126.  The industry had the following players as at 2014: two state-owned reinsurance 
companies, two reinsurance brokers, 22 genera l insurance companies, 11 long-term insurance 
companies, 39 insurance brokers, six claims agents, eight motor assessors, six loss adjusters, and 
one risk surveyor. The current Insurance Act does not contain any foreign equity restrictions. However, according to the authorities, the propos ed Insurance Bill has included a provision that 
may restrict foreign equity to 70%. The current paid-up capital share requirements for insurance 
and reinsurance companies stand at: K 10 million for general insurance companies, K 12 million 
for long-term insurance companies, and K 20 million for reinsurance companies.  
                                               
10 KPMG. WT/TPR/S/340 • Zambia 
 
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  4.127.  All general insurance premiums are standard-rated for value added tax (VAT) purposes, 
with a VAT rate of 16% applied. In addition, si nce 2016, all insurance services (regardless of 
whether they are life or non-life) are charged an insurance premium levy of 3% of the gross 
premiums written. 
4.128.  All brokers are required to be members of the Insurance Brokers Association of Zambia 
(IBAZ). All the licensed insurers and reinsurers ar e required by law to be members of the Insurers 
Association of Zambia (IAZ).  
4.129.  The Insurance Act does not allow foreign insurance companies to underwrite risks that are 
located in Zambia. However, where a risk cannot be underwritten by licensed entities in Zambia, prior approval has to be sought by foreign companies from the Registrar.  
4.130.  In Zambia, the only compulsory insurance is currently motor third party as provided for in 
the Road traffic Act of 2002.  
4.131.  Premium rates are priced by insurance companies after taking into consideration the pure 
risk premium value, the overhead cost loadings  and the profit margin. However, the PIA has 
issued guidelines to set minimum rates for the in dustry due to the absence of a robust solvency 
regime. 
4.4.4  Tourism  
4.132.  In 2014, the tourism sector accounted for about 4.3% of GDP, up from 2.1% in 2012 and 
4.2% in 2013. 
4.133.  Under the Government's Industrialization and Job Creation Strategy, tourism is considered 
to be one of the key sectors that can promote employment. The tourism component of the Sixth 
National Development Plan (SNDP) emphasized infr astructure development in three priority areas: 
the Greater Livingstone area, Kafue National Park and the Northern Circuit. The other priority areas under the SNDP are tourism promotion and marketing, product development, and human 
skills development. 
4.134.  Zambia's key tourism assets include pristine national parks and game management areas, 
waterfalls, lakes and rivers holding about 35% of Southern Africa's total natural water resources, 
and "wildlife protected areas" occupying about 10% of the country's total land area. Zambia is 
home to the Victoria Falls, a UNESCO World Heri tage Site. However, the tourism potential remains 
largely untapped due to, inter alia , poor and inadequate infrastructure, limited investment, 
inadequate marketing and limited skilled manpower.  
4.135.  The Ministry of Tourism and Arts (MTA) ov ersees all portfolio functions and operations of 
the country's tourism and cultural sector, including accommodation, arts and culture centres, culture industries, casinos, national parks and wildlife, safari operations, travel agencies, and 
tourism policy. Several other institutions operate in the sub-sector, under the supervision of the 
MTA. These include the Department of National Parks and Wildlife, the Zambia Tourism Agency, 
the National Arts Council, and the Hotel and Tourism Training Institute. 
4.136.  The functions of the new Zambia Tourism Agency include marketing and setting minimum 
standards for tourism enterprises, as well as ca rrying out inspections to ensure adherence to the 
minimum standards for the provision of quality tourism services. 
4.137.  Tourism operators must be licensed by the Zambia Tourism Agency. Other authorities may 
also issue licences in certain instances; for exampl e, the Department of National Parks and Wildlife 
may issue licences to safari hunting companies. Zambia's first policy document on tourism was produced in 1997, revised in January 2011 and further revised in 2013, based on a consultative 
process undertaken by the MTA. In 2011, the main medium-term objectives of the MTA included 
increasing contributions of the sub-sector to GDP from 2.1% in 2012 to 6.0% in 2016; as well as increasing employment creation from 30,000 jobs in 2012 to 300,000 jobs in 2016.  WT/TPR/S/340 • Zambia 
 
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  4.138.  According to the authorities, foreign participation is encouraged. Foreign-owned 
enterprises are required to have a programme wher eby foreign staff are replaced by Zambian staff 
after three years of training. 
4.139.  The main incentives provided in the touris m sector in Zambia are those provided under the 
Zambia Development Agency Act. 
4.140.  The classification system for hotels is currently being formulated under the auspices of the 
Southern Africa Development Community's (SADC) overall guidelines/standards. 
4.141.  Tourism arrivals performed relatively higher  during the review period, with the majority of 
visitors arriving from Africa and Europe (Table 4.10). Business-oriented tourism was the dominant category contributing over 50% of arrivals, while holiday tourism was the second largest representing 26%. 
Table 4.10 Tourists arrival to Zambia by category and origin, 2009-13 
Country of origin 2009  2010  2011  2012 2013  
South Africa 84,413 144,960 134,556 134,602 98,216 
Zimbabwe 171,232 171,806 227,733 119,100 208,962 
Other Southern Africa 41,191 33,662 60,051 74,630 66,970 
Sub total 296,836  350,428  422,340  328,332 374,148  
Kenya 10,378 12,785 14,698 10,643 11,337 
Tanzania 81,288 121,275 116,280 214,820 219,215 
Other East Africa 13,440 10,734 19,361 24,097 30,062 
Sub Total 105,106  144,794  150,339  249,560 260,614  
North Africa 1,397 2,671 2,817 1,474 2,080 
West Africa 5,751 5,148 5,448 9,554 4,746 
Central Africa 57,955 80,314 71,332 65,194 89,919 
Sub total 65,103  88,133  79,597  76,222 96,745  
United Kingdom 52,346 50,955 59,084 25,446 31,280 
Germany 12,667 9,770 10,311 6,619 7,638 
Italy 8,238 5,515 6,883 2,972 3,617 
France 4,116 6,416 6,049 3,023 4,562 
Denmark 2,665 3,752 2,377 1,861 1,783 
Sweden 3,166 3,640 3,625 2,057 3,126 
Other Scandinavian 12,989 7,054 6,182 7,272 8,948 
Other Europe 28,544 17,290 19,320 16,576 17,120 
Sub total 128,340  104,392  113,831  65,826 78,074  
United States of America 49,451 29,523 35,096 23,827 32,625 
Canada 9,488 7,378 10,441 5,517 6,202 
South America 4,150 4,805 6,131 2,215 5,820 
Sub total 63,089  41,706  51,668  31,559 44,647  
Australia 13,909 10,430 12,599 10,814 11,201 
New Zealand 3,992 3,451 15,383 1,583 2,333 
India 12,932 21,414 33,120 15,333 21,117 
Japan 5,373 8,341 11,346 3,535 7,539 
Other Asia 12,861 23,732 30,076 12,432 19,720 
Sub total 51,474  67,368  102,524  43,697 61,910  
Grand total 709,948  796,821  920,299  795,196 916,138  
Source: Data provided by the Zambian authorities.  WT/TPR/S/340 • Zambia 
 
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  REFERENCES 
CUTS International (2013), An investigation into Zambia's agriculture development framework and 
its impaact on smallholder farmers , March. Viewed at: http://www.cuts-
international.org/ARC/Lusaka/pdf/Policy_Brief-
An_Investigation_into_Zambias_Agriculture_Dev elopment_Framework_and_its_impact_on_smallh
older_farmers.pdf . 
 
CUTS (2015), The Impact of the Competition Reforms on Business in Zambia – An Evaluation of 
the Zambian Business Licensing and Regulatory Reform Programme . Viewed at: http://www.cuts-
international.org/ARC/Lusaka/pdf/The_Impact_ of_the_Competition_Reforms_on_Business_in_Zam
bia.pdf . 
 
IMF (2012), Zambia: Article IV consultation and Staff report consultation for the 2012 Article IV consultation, July and 24 May. Viewed at: 
https://www.imf.org/external/p ubs/ft/scr/2012/cr12200.pdf .  
 
KPMG (2014), 2015 Budget Highlights: KPMG Zambia . Viewed at: 
https://www.kpmg.com/ZM/en/IssuesAndInsights/ar ticlespublications/Documents/KPMG-Zambia-
2015-budget-highlights.pdf . 
 
KPMG, "Sector Report: Insurance in Africa". Viewed at: 
https://www.kpmg.com/Africa/en /IssuesAndInsights/Articles-
Publications/Documents/Insurance%20in%20Africa.pdf . 
 
Ministry of Agriculture and Co-operatives (2011), The National Agriculture Policy 2012-2030 , 
Lusaka, August.  
Ministry of Agriculture and Livestock (2013), National Agriculture Investment Plan 2014-2018, 
May, Lusaka.   NEPAD-OECD (2011), Highlights of the Policy Framework for Investment in Zambia . Viewed at: 
http://www.oecd.org/investment/inve stmentfordevelopment/47662751.pdf . 
 
OECD, "OECD Trade Facilitation In dicators – Zambia". Viewed at: 
http://www.oecd.org/tad/faci litation/Zambia_OECD-Trade- Facilitation-Indicators.pdf . 
 
PMRC (Policy Monitoring and Research Centre), The Business Regulatory Act No. 3 of 2014 . Viewed 
at: http://www.pmrczambia.com/wp-content/uplo ads/2015/06/Business-Regulatory-Act-Policy-
Analysis.pdf . 
 
UNCTAD (2015), World Investment Report 2015 . Viewed at: 
http://unctad.org/en/PublicationsLibrary/wir2015_en.pdf . 
 
World Bank (2016), Doing Business 2016 – Zambia.  Viewed at: 
http://www.doingbusiness.org/data/exploreeconom ies/zambia/~/media/gia wb/doing%20business/
documents/profiles/country/ZMB.pdf . 
 
World Economic Forum (2015), The African Competitiveness Report 2015 . Viewed at: 
http://www3.weforum.org/docs/WEF_ACR_2015/ Africa_Competitiveness_Report_2015.pdf . 
 
World Economic Forum (2015), The Global Competitiveness Report 2015-2016.  Viewed at: 
http://www3.weforum.org/docs/gcr/2015-2016/ Global_Competitiveness_Report_2015-2016.pdf . 
 
Zambia Extractive Industries Transparency Initiative (2014), Reconciliation Report for 2013 , 
December, Lusaka. Viewed at: http://www.zambiaeiti.org/index.php/ct-menu-item-13/zeiti-2013-
reconciliation-final-report-18-12-2014 . 
 
 
 WT/TPR/S/340 • Zambia 
 
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  5  APPENDIX TABLES 
 
  WT/TPR/S/340 • Zambia 
 
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  Table A1. 1 Merchandise imports by product group, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 5,061 3,793 5,321 7,178 8,805 10,162 9,539 
 (% of total) 
Total primary products 35.1 34.4 37.9 30.5 31.2 32.7 36.6 
 Agriculture 6.0 7.2 5.3 5.6 6.1 4.9 5.3 
 Food 5.6 6.5 4.7 5.1 5.6 4.4 4.8 
 0342 Fish, frozen (excluding fillets 
 and minced fish) 0.1 0.1 0.1 0.2 0.3 0.5 0.8 
 Agricultural raw material 0.4 0.7 0.6 0.5 0.5 0.5 0.5 
 Mining 29.1 27.2 32.6 24.9 25.1 27.8 31.3 
 Ores and other minerals 10.7 9.7 16.3 14.3 13.0 16.2 17.0 
 2831 Copper ores and concentrates 8.4 6.7 11.7 11.5 9.6 13.7 12.8 
 2879 Other non-ferrous base metal 
 ores and concentrates 0.0 2.2 4.1 1.7 2.2 1.6 2.1 
 2789 Minerals, crude, n.e.s. 0.1 0.2 0.0 0.1 0.1 0.1 0.9 
 2741 Sulphur (excl. 
 sublimed/precipitated/colloidal) 1.7 0.2 0.1 0.8 0.8 0.5 0.8 
 Non-ferrous metals 2.3 3.6 4.7 3.2 1.5 0.9 0.3 
 Fuels 16.0 13.9 11.6 7.3 10.6 10.6 14.0 
 3330 Crude oils of petroleum and 
 bituminous minerals 9.5 11.4 9.6 4.7 6.2 0.9 1.9 
Manufactures 64.0 65.2 61.7 69.2 68.4 67.1 63.2 
 Iron and steel 3.9 3.9 3.5 3.9 3.3 3.2 2.9 
 Chemicals 15.0 18.7 17.4 18.0 16.0 15.5 13.5 
 5621 Mineral or chemical fertilizers, 
 nitrogenous 1.4 2.4 2.1 2.7 1.8 2.5 2.1 
 5429 Medicaments, n.e.s. 2.7 2.6 1.6 1.5 1.7 1.2 1.8 
 5629 Fertilizers, n.e.s. 1.9 2.0 1.2 1.6 1.3 1.0 1.2 
 Other semi-manufactures 7.8 7.9 7.3 7.9 8.9 10.3 10.4 
 6911 Iron or steel structures, tubes 
 and the like, for use in structures 1.5 0.8 0.9 1.3 1.5 3.2 3.3 
 6996 Articles of iron or steel, n.e.s. 0.3 0.5 0.5 0.5 0.7 0.5 0.7 
 Machinery and transport equipment 32.5 28.6 28.7 33.9 35.2 33.0 31.7 
 Power generating machines 0.9 0.7 0.6 0.8 1.0 1.6 1.6 
 7165 Generating sets 0.3 0.1 0.0 0.2 0.1 0.6 1.0 
 Other non-electrical machinery 14.9 13.9 14.8 16.9 15.2 16.6 14.3 
 7283 Other mineral working machines 2.2 2.1 1.8 2.8 1.6 2.9 2.2 
 7232 Mechanical shovels, etc., self-
 propelled 1.6 1.1 1.7 2.4 2.0 1.8 1.7 
 7239 Parts n.e.s., of machinery of 
723 and 744.3 2.0 1.5 1.8 1.8 1.7 1.5 1.5 
 Agricultural machinery and tractors 0.6 0.8 0.7 0.7 0.8 1.0 1.0 
 Office machines & telecommunication 
 equipment 2.8 3.0 2.4 3.0 2.3 2.3 2.5 
 Other electrical machines 3.6 3.1 3.3 3.8 3.7 3.5 4.3 
 7711 Transformers, electrical 0.7 0.4 0.3 0.6 0.9 0.7 1.1 
 7731 Insulated wire, cable etc.; 
 optical fibre cables 0.6 0.5 0.4 0.8 0.7 0.6 0.7 
 Automotive products 8.9 6.5 6.4 7.9 9.1 7.8 7.8 
 7821 Goods vehicles 3.7 2.6 2.8 3.9 4.2 3.4 3.6 
 7812 Motor vehicles for the transport 
 of persons, n.e.s. 2.4 1.8 1.7 1.8 2.1 2.3 2.2 
 Other transport equipment 1.3 1.4 1.3 1.7 4.1 1.3 1.0 
 Textiles 0.7 0.9 0.8 0.9 0.8 0.7 0.8 
 Clothing 0.4 0.6 0.5 0.5 0.4 0.6 0.6 
 Other consumer goods 3.8 4.6 3.4 4.1 3.8 3.8 3.3 
Other 0.9 0.4 0.4 0.2 0.4 0.2 0.1 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/340 • Zambia 
 
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  Table A1.2 Merchandise export s by product group, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 5,099 4,312 7,200 9,001 9,365 10,594 9,688 
 (% of total)  
Total primary products 87.0 88.8 90.1 86.9 84.4 81.2 85.8 
 Agriculture 6.7 8.9 6.8 8.7 13.0 12.1 8.8 
 Food 5.6 7.5 5.9 6.8 11.0 10.2 7.3 
 0611 Sugars, beet/cane, raw, solid, no 
 added flavour/colour 1.1 2.2 2.0 1.6 1.1 1.1 1.2 
 1211 Tobacco, not stemmed/stripped 1.3 1.5 1.1 0.9 1.2 1.1 0.8 
 0615 Molasses 0.0 0.0 0.0 0.0 0.0 0.5 0.8 
 1212 Tobacco, wholly or partly 
 stemmed/stripped 0.1 0.5 0.5 0.3 0.5 0.6 0.7 
 Agricultural raw material 1.1 1.4 1.0 1.9 2.0 1.9 1.5 
 2631 Cotton (other than linters), not 
 carded or combed 0.7 1.1 0.7 1.1 1.2 0.6 0.6 
 2119 Hides, skins, n.e.s., leather waste 0.1 0.1 0.0 0.0 0.0 0.5 0.5 
 Mining 80.3 79.9 83.2 78.2 71.4 69.1 77.1 
 Ores and other minerals 15.3 12.0 7.5 2.4 2.0 2.0 1.5 
 2892 Waste and scrap of precious metals 
 (excl. gold) 0.0 0.0 0.0 0.0 1.0 0.9 0.6 
 2831 Copper ores and concentrates 13.5 6.7 3.3 0.1 0.1 0.6 0.5 
 Non-ferrous metals 64.2 67.0 75.2 75.4 68.1 65.1 74.5 
 6821 Copper anodes; alloys; unwrought 41.6 52.2 63.6 68.8 63.4 62.4 73.3 
 6824 Copper wire 2.9 2.4 2.1 2.0 1.6 1.2 0.9 
 Fuels 0.7 0.9 0.5 0.4 1.3 1.9 1.1 
 3510 Electric energy 0.1 0.2 0.3 0.2 0.5 1.2 0.8 
Manufactures 12.5 10.1 8.9 12.1 13.8 16.9 12.8 
 Iron and steel 0.2 0.2 0.2 0.7 0.7 0.6 0.8 
 Chemicals 1.4 2.0 1.9 2.6 2.8 6.1 4.0 
 5223 Inorganic acid and oxides 0.4 0.5 0.3 0.5 0.8 2.4 2.3 
 5222 Other chemical elements 0.1 0.2 0.2 0.5 0.6 0.6 0.6 
 Other semi-manufactures 7.5 4.0 4.5 4.1 6.4 5.2 4.0 
 6998 Articles of 
 cobalt/cadmium/tit anium/zirconium, 
 n.e.s. 5.8 1.7 2.7 2.2 2.2 1.3 1.2 
 6673 Precious and semi-precious stones 
 (excl. diamonds) 0.6 0.5 0.3 0.5 0.5 0.6 1.0 
 6612 Portland cement and similar 
 hydraulic cements 0.5 0.8 0.9 0.8 0.7 2.0 0.7 
 Machinery and transport equipment 2.8 3.2 1.9 4.3 2.7 4.0 3.2 
 Power generating machines 0.1 0.1 0.0 0.3 0.1 0.4 0.1 
 Other non-electrical machinery 1.0 1.4 0.9 0.5 1.0 1.8 1.6 
 7232 Mechanical shovels, etc., self-
 propelled 0.1 0.1 0.0 0.0 0.1 0.3 0.5 
 Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
 Office machines & telecommunication 
 equipment 0.1 0.1 0.0 0.0 0.1 0.2 0.1 
 Other electrical machines 1.1 0.7 0.6 2.7 0.6 0.6 0.6 
 7731 Insulated wire, cable etc.; optical 
 fibre cables 1.0 0.7 0.5 0.4 0.5 0.6 0.5 
 Automotive products 0.4 0.7 0.2 0.2 0.3 0.9 0.7 
 7821 Goods vehicles 0.1 0.5 0.1 0.1 0.1 0.6 0.4 
 Other transport equipment 0.1 0.2 0.1 0.6 0.7 0.1 0.1 
 Textiles 0.1 0.0 0.0 0.0 0.0 0.1 0.1 
 Clothing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Other consumer goods 0.3 0.7 0.3 0.4 1.2 0.9 0.7 
Other 0.6 1.1 1.0 1.0 1.8 1.9 1.4 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/340 • Zambia 
 
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  Table A1.3 Merchandise imports by origin, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 5,061 3,793 5,321 7,178 8,805 10,162 9,539 
 (% of total) 
 Americas 2.3 2.0 1.9 2.3 3.7 3.1 2.6 
 United States 1.4 1.3 1.4 1.4 2.8 2.4 1.8 
 Other America 0.8 0.6 0.5 0.9 0.9 0.7 0.8 
 Europe 11.0 10.9 9.6 10.2 10.4 11.5 9.2 
 EU(28) 10.1 10.4 9.1 9.3 9.2 10.7 8.7 
 United Kingdom 3.1 3.6 2.0 2.6 2.5 2.9 2.6 
 Germany 1.3 1.6 1.0 0.8 1.3 2.6 1.3 
 Belgium 0.5 0.5 1.7 0.7 0.8 1.0 0.9 
 The Netherlands 0.7 0.8 0.6 0.7 0.7 0.7 0.8 
 Sweden 1.2 0.9 0.9 1.2 1.1 0.9 0.7 
 Italy 0.2 0.2 0.2 0.3 0.3 0.3 0.5 
 EFTA 0.8 0.5 0.4 0.9 1.0 0.7 0.4 
 Other Europe 0.1 0.1 0.1 0.1 0.2 0.2 0.1 
 Commonwealth of Independent States (CIS) 0.0 0.0 0.0 0.0 0.1 0.0 0.1 
 Africa 60.8 60.5 63.6 60.3 56.8 59.5 61.5 
 South Africa 42.6 40.0 34.4 35.7 33.7 30.3 32.4 
 Democratic Republic of the Congo (DRC) 10.6 12.8 23.8 18.5 14.4 18.2 15.3 
 Kenya 1.6 2.1 1.2 1.8 3.2 7.0 8.1 
 Mauritius 0.2 0.3 0.2 0.2 0.4 0.3 1.4 
 Zimbabwe 2.1 1.5 1.4 1.2 1.1 1.2 1.1 
 United Republic of Tanzania 0.9 0.9 0.8 0.8 0.8 0.7 1.0 
 Namibia 0.3 0.2 0.2 0.3 0.3 0.4 0.7 
 Middle East 12.7 13.7 12.2 8.4 9.1 5.5 5.8 
 United Arab Emirates 2.4 2.9 2.2 3.4 2.5 2.4 2.8 
 Kuwait 10.2 10.6 9.6 4.7 6.2 2.1 2.4 
 Asia 13.2 12.8 12.7 18.9 19.9 20.4 20.7 
 China 4.5 4.7 5.4 9.8 9.9 9.4 9.0 
 Japan 1.7 1.7 1.6 2.1 2.8 3.0 2.3 
 Six East Asian Traders 2.0 2.1 1.9 2.5 2.5 2.6 3.4 
 Singapore 0.3 0.3 0.8 1.3 0.6 1.0 1.5 
 Hong Kong, China 0.7 0.6 0.5 0.5 0.7 0.5 0.6 
 Korea, Republic of 0.4 0.5 0.3 0.2 0.4 0.4 0.6 
 Other Asia 5.0 4.3 3.7 4.4 4.7 5.4 6.0 
 India 3.8 3.5 2.7 3.5 3.5 3.6 4.3 
 Australia 1.0 0.5 0.7 0.6 0.7 0.9 1.4 
 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source: UNSD Comtrade database. WT/TPR/S/340 • Zambia 
 
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  Table A1.4 Merchandise expo rts by destination, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 5,099 4,312 7,200 9,001 9,365 10,594 9,688 
 (% of total) 
 Americas 0.5 0.3 0.1 0.1 0.2 0.2 0.4 
 United States 0.5 0.1 0.1 0.1 0.1 0.1 0.1 
 Other America 0.0 0.1 0.0 0.1 0.2 0.0 0.2 
 Europe 56.2 52.0 55.4 54.6 47.6 40.1 47.2 
 EU(28) 6.4 5.0 4.4 5.6 5.3 3.1 2.5 
 United Kingdom 2.3 2.0 1.9 3.7 3.3 1.4 1.0 
 Belgium-Luxembourg 0.0 0.1 0.5 0.5 0.4 0.5 0.5 
 Belgium 1.1 1.3 1.0 0.9 0.9 0.7 0.4 
 Germany 0.2 0.2 0.1 0.1 0.1 0.2 0.3 
 EFTA 49.8 47.0 51.0 48.9 42.3 37.0 44.7 
 Switzerland 49.8 47.0 51.0 48.9 42.3 37.0 44.7 
 Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Commonwealth of Independent States (CIS) 0.0 0.0 0.1 0.0 0.0 0.0 0.0 
 Africa 28.2 25.3 19.9 24.6 29.0 30.5 22.4 
 Democratic Republic of the Congo (DRC) 5.6 7.0 4.6 6.5 7.7 11.2 8.3 
 South Africa 10.4 9.2 9.1 9.3 9.0 10.7 7.0 
 Zimbabwe 1.3 2.0 1.7 2.7 4.6 2.6 2.0 
 Malawi 1.2 1.7 1.4 1.3 2.0 2.1 1.5 
 Kenya 0.5 0.6 0.5 0.9 0.6 0.8 0.6 
 Namibia 0.2 0.1 0.3 0.4 1.6 1.0 0.5 
 United Republic of Tanzania 0.6 0.8 0.4 0.8 1.1 0.7 0.5 
 Mozambique 0.0 0.1 0.1 0.9 0.2 0.3 0.5 
 Botswana 0.2 0.2 0.2 0.3 0.7 0.2 0.5 
 Mauritius 0.4 0.7 0.3 0.7 0.5 0.5 0.4 
 Middle East 3.2 6.7 3.0 1.1 2.4 5.2 2.4 
 United Arab Emirates 0.5 3.3 2.4 1.0 2.4 5.1 2.4 
 Asia 11.9 15.8 21.5 17.5 20.8 24.0 27.7 
 China 5.6 11.2 20.2 16.7 19.2 21.3 18.5 
 Japan 0.8 0.1 0.1 0.0 0.0 0.5 0.8 
 Six East Asian Traders 4.1 2.6 0.5 0.4 0.7 0.9 4.3 
 Singapore 0.1 0.1 0.0 0.3 0.5 0.7 3.8 
 Hong Kong, China 0.0 0.1 0.0 0.0 0.3 0.2 0.4 
 Other Asia 1.3 2.0 0.7 0.3 0.8 1.3 4.0 
 Australia 0.0 0.0 0.0 0.0 0.0 0.0 3.6 
 India 0.6 1.1 0.3 0.3 0.8 1.2 0.4 
 Other 0.0 0.0 0.0 2.0 0.0 0.0 0.0 
Source: UNSD Comtrade database. WT/TPR/S/340 • Zambia 
 
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  Table A3. 1 MFN tariff averages by HS2-digit level, 2016  
HS Description No. of 
lines Average 
(%) Range 
(%) SDa Share 
of 
duty-
free 
lines 
(%)b Share of 
non- ad 
valorem  
tariff lines 
(%)c 
 Total 6,195 12.9 0-40 10.7 29.9 2.2 
01 Live animals 43 6.7 5-15 3.7 0.0 0.0 
02 Meat and edible meat offal 68 25.0 25.0 0.0 0.0 0.0 
03 Fish and crustaceans, molluscs 
and other aquatic invertebrates 189 24.4 15-25 2.3 0.0 0.0 
04 Dairy produce; birds' eggs; 
natural honey; edible products of animal origin, not elsewhere specified or included 45 19.9 0-25 7.9 8.9 6.7 
05 Products of animal origin, not 
elsewhere specified or included 20 12.5 0-25 8.1 10.0 0.0 
06 Live trees and other plants; 
bulbs, roots and the like; cut flowers and ornamental foliage 16 18.4 0-25 9.8 6.3 0.0 
07 Edible vegetables and certain 
roots and tubers 83 21.9 5-25 7.3 0.0 0.0 
08 Edible fruit and nuts; peel of 
citrus fruit or melons 104 25.0 25.0 0.0 0.0 0.0 
09 Coffee, tea, maté and spices 45 25.0 25.0 0.0 0.0 0.0 
10 Cereals 26 11.5 5-15 4.8 0.0 0.0 
11 Products of the milling industry; 
malt; starches; inulin; wheat 
gluten 38 15.0 5-25 3.2 0.0 5.3 
12 Oil seeds and oleaginous fruits; 
misc grains, seeds and fruit; industrial or medicinal plants; straw and fodder 48 12.0 5-25 5.5 0.0 0.0 
13 Lac; gums, resins and other 
vegetable saps and extracts 10 4.5 0-5 1.5 10.0 0.0 
14 Vegetable plaiting materials; 
vegetable products not elsewhere specified or included 5 15.0 15.0 0.0 0.0 0.0 
15 Animal or vegetable fats and oils 
and their cleavage products; 
prepared edible fats; animal or 
vegetable waxes 54 14.6 0-25 9.7 7.4 42.6 
16 Preparations of meat, of fish or 
of crustaceans, molluscs or other aquatic invertebrates 42 24.0 5-25 4.3 0.0 0.0 
17 Sugars and sugar confectionery 19 21.6 0-25 7.3 5.3 10.5 
18 Cocoa and cocoa preparations 13 19.6 15-25 5.0 0.0 0.0 
19 Preparations of cereals, flour, 
starch or milk; pastry cooks' 
products 20 23.0 5-25 5.1 0.0 0.0 
20 Preparations of vegetables, fruit, 
nuts or other parts of plants 52 24.2 5-25 3.8 0.0 0.0 
21 Miscellaneous edible 
preparations 21 20.2 5-25 8.5 0.0 0.0 
22 Beverages, spirits and vinegar 26 23.5 5-25 5.3 0.0 26.9 
23 Residues and waste from the 
food industries; prepared animal 
fodder 26 6.7 0-25 6.8 11.5 0.0 
24 Tobacco and manufactured 
tobacco substitutes 10 22.0 15-25 4.6 0.0 70.0 WT/TPR/S/340 • Zambia 
 
- 83 - 
 
  HS Description No. of 
lines Average 
(%) Range 
(%) SDa Share 
of 
duty-
free 
lines 
(%)b Share of 
non- ad 
valorem  
tariff lines 
(%)c 
25 Salt; sulphur; earths and stone; 
plastering materials, lime and 
cement 73 7.1 0-25 5.6 5.5 0.0 
26 Ores, slag and ash 47 3.9 0-5 2.0 21.3 0.0 
27 Mineral fuels, mineral oils and 
products of their distillation; 
bituminous substances; mineral 
waxes 60 13.8 0-25 8.1 15.0 0.0 
28 Inorganic chemicals; organic or 
inorganic compounds of precious 
metals, of rare-earth metals, of 
radioactive elements or of isotopes 299 0.0 0.0 0.0 100.0 0.0 
29 Organic chemicals 457 4.0 0-15 6.5 70.7 0.0 
30 Pharmaceutical products 36 0.6 0-5 1.6 88.9 0.0 
31 Fertilizers 28 0.0 0.0 0.0 100.0 0.0 
32 Tanning or dyeing extracts; 
tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks 55 9.4 0-25 9.3 25.5 0.0 
33 Essential oils and resinoids; 
perfumery, cosmet ic or toilet 
preparations 33 15.2 0-25 10.4 9.1 0.0 
34 Soap, organic surface-active 
agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling 
pastes, dental waxes and dental 
preparations with a basis of plaster 35 14.9 0-25 10.5 14.3 20.0 
35 Albuminoidal substances; 
modified starches; glues; 
enzymes 20 15.8 0-25 10.3 5.0 0.0 
36 Explosives; pyrotechnic 
products; matches; pyrophoric alloys; certain combustible preparations 12 21.7 5-25 6.2 0.0 0.0 
37 Photographic or cinematographic 
goods 34 20.9 0-25 8.3 11.8 0.0 
38 Miscellaneous chemical products 98 12.1 0-15 5.6 14.3 0.0 
39 Plastics and articles thereof 359 8.7 0-25 10.7 57.1 0.0 
40 Rubber and articles thereof 105 14.5 0-25 10.8 32.4 5.7 
41 Raw hides and skins (other than 
furskins) and leather 37 15.0 15.0 0.0 0.0 0.0 
42 Articles of animal gut (other 
than silk-worm gut) 20 25.0 25.0 0.0 0.0 0.0 
43 Furskins and artificial fur; 
manufactures thereof 12 25.0 25.0 0.0 0.0 0.0 
44 Wood and articles of wood; 
wood charcoal 77 40.0 40.0 0.0 0.0 0.0 
45 Cork and articles of cork 13 40.0 40.0 0.0 0.0 0.0 WT/TPR/S/340 • Zambia 
 
- 84 - 
 
  HS Description No. of 
lines Average 
(%) Range 
(%) SDa Share 
of 
duty-
free 
lines 
(%)b Share of 
non- ad 
valorem  
tariff lines 
(%)c 
46 Manufactures of straw, of 
esparto or of other plaiting materials; basketware and wickerwork 11 25.0 25.0 0.0 0.0 0.0 
47 Pulp of wood or of other fibrous 
cellulosic material; recovered 
(waste and scrap) paper and 
paperboard 21 5.0 5.0 0.0 0.0 0.0 
48 Paper and paperboard; articles 
of paper pulp, of paper or of 
paperboard 102 12.9 0-25 9.2 2.9 0.0 
49 Printed books, newspapers, 
pictures and other products of 
the printing industry; 
manuscripts, typescripts and 
plans 31 9.4 0-25 10.8 54.8 0.0 
50 Silk 9 15.0 15.0 0.0 0.0 0.0 
51 Wool, fine or coarse animal hair; 
horsehair yarn and woven fabric 46 15.0 15.0 0.0 0.0 0.0 
52 Cotton 135 13.9 0-15 3.9 7.4 39.3 
53 Other vegetable textile fibres; 
paper yarn and woven fabrics of 
paper yarn 25 14.4 0-15 2.9 4.0 0.0 
54 Man-made filaments 123 8.4 0-15 6.8 31.7 0.0 
55 Man-made staple fibres 113 10.0 0-15 5.7 10.6 5.3 
56 Wadding, felt and nonwovens; 
special yarns; twine, cordage, ropes and cables and articles thereof 30 23.3 15-25 3.7 0.0 0.0 
57 Carpets and other textile floor 
coverings 21 25.0 25.0 0.0 0.0 0.0 
58 Special woven fabrics; tufted 
textile fabrics; lace; tapestries; 
trimmings; embroidery 40 24.8 15-25 1.6 0.0 0.0 
59 Impregnated, coated, covered 
or laminated textile fabrics; 
textile articles of  a kind suitable 
for industrial use 34 12.2 0-25 9.0 2.9 0.0 
60 Knitted or crocheted fabrics 43 25.0 25.0 0.0 0.0 0.0 
61 Articles of apparel and clothing 
accessories, knitted or crocheted 106 25.0 25.0 0.0 0.0 0.0 
62 Articles of apparel and clothing 
accessories, not knitted or crocheted 118 25.0 25.0 0.0 0.0 0.0 
63 Other made up textile articles; 
sets; worn clothing and worn 
textile articles; rags 58 23.3 0-25 6.3 6.9 5.2 
64 Footwear, gaiters and the like; 
parts of such articles 25 24.2 15-25 2.7 0.0 0.0 
65 Headgear and parts thereof 8 20.0 5-25 7.1 0.0 0.0 
66 Umbrellas, sun umbrellas, 
walking-sticks, seat-sticks, whips, riding-crops and parts thereof 7 21.4 0-25 8.7 14.3 0.0 WT/TPR/S/340 • Zambia 
 
- 85 - 
 
  HS Description No. of 
lines Average 
(%) Range 
(%) SDa Share 
of 
duty-
free 
lines 
(%)b Share of 
non- ad 
valorem  
tariff lines 
(%)c 
67 Prepared feathers and down and 
articles made of feathers or of 
down; artificial flowers; articles 
of human hair 9 25.0 25.0 0.0 0.0 0.0 
68 Articles of st one, plaster, 
cement, asbestos, mica or similar materials 49 11.3 5-15 4.8 0.0 0.0 
69 Ceramic products 29 18.1 15-25 4.6 0.0 0.0 
70 Glass and glassware 65 15.0 5-25 5.5 0.0 0.0 
71 Natural or cultured pearls, 
precious or semi-precious 
stones, precious metals, metals 
clad with precious metal, and 
articles thereof; imitation 
jewellery; coin 59 19.0 0-25 5.5 1.7 0.0 
72 Iron and steel 168 2.9 0-25 6.9 83.3 0.0 
73 Articles of iron or steel 143 14.9 0-25 6.1 9.1 0.0 
74 Copper and articles thereof 57 16.6 15-25 3.6 0.0 0.0 
75 Nickel and articles thereof 17 13.2 5-25 7.1 0.0 0.0 
76 Aluminium and articles thereof 41 14.3 0-25 8.3 4.9 0.0 
78 Lead and articles thereof 12 12.5 5-25 6.0 0.0 0.0 
79 Zinc and articles thereof 9 8.3 5-15 4.7 0.0 0.0 
80 Tin and articles thereof 7 10.0 0-15 6.0 14.3 0.0 
81 Other base metals; cermets; 
articles thereof 48 5.0 5.0 0.0 0.0 0.0 
82 Tools, implements, cutlery, 
spoons and forks, of base metal; 
parts thereof of base metal 67 16.9 0-25 4.9 1.5 0.0 
83 Miscellaneous articles of base 
metal 36 23.9 5-25 3.9 0.0 0.0 
84 Nuclear reactors, boilers, 
machinery and mechanical 
appliances; parts thereof 515 4.7 0-25 7.4 65.4 0.0 
85 Electrical machinery and 
equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles 266 12.6 0-25 9.7 30.8 0.0 
86 Railway or tramway 
locomotives, rolling-stock and 
parts thereof; railway or 
tramway track fixtures and 
fittings and parts thereof; 
mechanical (inc luding electro-
mechanical) traffic signalling 
equipment of all kinds 26 0.4 0-5 1.3 92.3 0.0 
87 Vehicles other than railway or 
tramway rolling-stock, and parts and accessories thereof 102 12.5 0-30 9.3 26.5 18.6 
88 Aircraft, spacecraft, and parts 
thereof 17 2.1 0-5 2.5 58.8 0.0 
89 Ships, boats and floating 
structures 18 0.3 0-5 1.1 94.4 0.0 WT/TPR/S/340 • Zambia 
 
- 86 - 
 
  HS Description No. of 
lines Average 
(%) Range 
(%) SDa Share 
of 
duty-
free 
lines 
(%)b Share of 
non- ad 
valorem  
tariff lines 
(%)c 
90 Optical, photographic, 
cinematographic, measuring, 
checking, precision, medical or 
surgical instruments and 
apparatus; parts and 
accessories thereof 153 10.5 0-25 8.6 35.9 0.0 
91 Clocks and watches and parts 
thereof 72 16.9 0-25 11.5 29.2 0.0 
92 Musical instruments; parts and 
accessories of such articles 18 0.0 0.0 0.0 100.0 0.0 
93 Arms and ammunition; parts 
and accessories thereof 20 18.5 15-25 4.8 0.0 0.0 
94 Furniture; bedding, mattresses, 
mattress supports, cushions and 
similar stuffed furnishings; 
lamps and lighting fittings, not 
elsewhere specified or included; 
illuminated signs, illuminated 
name-plates 41 25.1 0-40 9.0 7.3 0.0 
95 Toys, games and sports 
requisites; parts and accessories thereof 31 19.5 15-25 5.0 0.0 0.0 
96 Miscellaneous manufactured 
articles 53 20.7 0-25 7.5 7.5 0.0 
97 Works of art, collectors' pieces 
and antiques 8 1.9 0-15 5.0 87.5 0.0 
a Standard deviation. 
b Duty-free tariff lines as a percentage of total tariff lines. c Non- ad valorem  lines as a percentage of total tariff lines. 
Note: 2016 tariff schedule is based on HS12 nomenclature consisting of 6,195 tariff lines (at 8-digit tariff 
line level). The ad valorem  part of mixed duty rates was take n into account for the calculations. 
Source: WTO Secretariat calculations, based on data provided by the Zambian authorities. WT/TPR/S/340 • Zambia 
 
- 87 - 
 
  Table A3.2 List of products with export duties 
HS code Product description Export duty 
rate 
2601.11.00 Iron ores and concentrates, including roasted iron pyrites, non-agglomerated  10% 
2601.12.00 Iron ores and concentrates, including roasted iron pyrites, agglomerated  10% 
2601.20.00 Roasted iron pyrites 10% 
2602.00.00 Manganese ores and concentrates, incl uding ferruginous manganese ores and 
concentrates with manganese content of 20% or more, calculated on the dry 
weight 10% 
2603.00.00 
 Copper ores and concentrates 10%  
2604.00.00 
 Nickel ores and concentrates 10% 
2605.00.00 
 Cobalt ores and concentrates 10%  
2606.00.00 
 Aluminium ores and concentrates 10% 
2607.00.00 
 Lead ores and concentrates 10%  
2608.00.00 
 Zinc ores and concentrates 10% 
2609.00.00 
 Tin ores and concentrates  
2610.00.00 Chromium ores an d concentrates  
  
2611.00.00 
 Tungsten ores and concentrates 10%  
2612.10.00 
 Uranium ores and concentrates 
 10% 
2612.20.00 
 Thorium ores and concentrates  10% 
2613.10.00 
 Molybdenum ores and concentrates, roasted 10% 
2613.90.00 
 Molybdenum ores and concentrates, other 10%  
2614.00.00 
 Titanium ores and concentrates 
 10% 
2615.10.00 
 Zirconium ores and concentrates 
 10% 
2615.90.00 
 Niobium, tantalum or vanadium ores and concentrates 10% 
2616.10.00 
 Silver ores and concentrates 10%  
2616.90.00 
 Other precious metal ores and concentrates  
2617.10.00 Antimony ores and concentrates 
 10% 
2617.90.00 Other ores and concentrates 
 10% 
2618.00.00 Granulated slag (slag sand) from the manufacture of iron or steel 
 10% 
2619.00.00 Slag, dross (other than granulated sl ag), scaling and other waste from the 
manufacture of iron or steel 10% 
2620.11.00 Slag, ash and residues containing mainly hard zinc spelter 
 10% 
2620.19.00 Slag, ash and residues containing mainly other zinc  
 10% 
2620.21.00 Slag, ash and residues containing mainly gasoline sludges and leaded anti-
knock compound sludges 10% 
2620.29.00 Slag, ash and residues containing mainly other lead 
 10% 
2620.30.00 Slag, ash and residues containing mainly copper 
 10% 
2620.40.00 Slag, ash and residues containing mainly aluminium 
 10% WT/TPR/S/340 • Zambia 
 
- 88 - 
 
  HS code Product description Export duty 
rate 
2620.60.00 Slag, ash and residues containing arsenic, mercury, thallium or their 
mixtures, of a kind used for the extracti on of arsenic or those metals or for 
the manufacture of their chemical compounds 10% 
2620.91.00 Slag, ash and residues containing anti mony, beryllium, ca dmium, chromium 
or their mixtures 10% 
2620.99.00 Other slag, ash and residues (other than from the manufacture of iron or 
steel)  10% 
2621.10.00 Ash and residues from the incineration of municipal waste 10% 
2621.90.00 Other slag and ash, including seaweed ash (kelp) 10% 
7201.10.00 Non-alloy pig iron containing by we ight 0.5% or less of phosphorous 10% 
7201.20.00 Non-alloy pig iron containing by weight more than 0.5% of phosphorous 10% 
7204.10.00 Waste of cast iron ** 
7204.21.00 Waste and scrap of stainless steel ** 
7204.29.00 Waste and scrap of other steel ** 
7204.30.00 Waste and scrap of tinned iron or steel ** 
7204.41.00 Turnings, shavings, chips,  milling waste, sawdust, fillings, trimmings and 
stampings, whether or not in bundles * 
7204.49.00 Other ferrous waste and scrap * 
7204.50.00 Remelting scrap ingots * 
7205.10.00 Granules of pig iron, spiegeleisen, iron or steel 10% 
7205.21.00 Powders of alloy steel 10% 
7205.29.00 Powders of pig iron, spiegeleisen, iron or other steel 10% 
7401.00.00 Copper mattes; cermet copp er (precipitated copper) ** 
7404.00.00 Copper waste and scrap ** 
7501.10.00 Nickel mattes 10% 
7501.20.00 Nickel oxide sinters and other intermediate products of nickel metallurgy 10% 
7503.00.00 Nickel waste and scrap ** 
7802.00.00 Lead waste and scrap ** 
7902.00.00 Zinc waste and scrap ** 
8002.00.00 Tin waste and scrap ** 
8101.97.00 Waste and scrap of tungsten ** 
8103.30.00 Waste and scrap of tantalum ** 
8104.20.00 Waste and scrap of magnesium ** 
8105.30.00 Waste and scrap of cobalt ** 
8106.00.00 Waste and scrap of bismuth ** 
8107.30.00 Waste and scrap of cadmium ** 
8108.30.00 Waste and scrap of titanium ** 
8109.30.00 Waste and scrap of zirconium ** 
8110.20.00 Waste and scrap of antimony ** 
8111.00.00 Waste and scrap of manganese ** 
8112.13.00 Waste and scrap of beryllium ** 
8112.22.00 Waste and scrap of chromium ** 
8112.52.00 Waste and scrap of thallium ** 
8112.92.00 Waste and scrap of germanium, vanadium, gallium, hafnium, indium, 
niobium (colombium) and rhenium ** 
8113.00.00 Cermet waste and scrap ** 
44.01 Fuel wood, in logs, in bullets, in tw igs, in faggots, or in similar forms; wood 
in chips or particles; sawdust and w ood waste and scrap, whether or not 
agglomerated in logs , briquettes, pellet s or similar forms 40% 
44.02 Wood charcoal (including shell or nut charcoal), whether or not 
agglomerated 40% 
44.03 Wood in the rough, whether or not stripped of bark or sapwood, or roughly 
squared 40% 
44.04 Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not 
sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or 
otherwise worked, suitable for th e manufacture of walking sticks, 
umbrellas, tool handles or th e like; chipwood and the like 40% 
44.05 Wood wool; wood flour 40% 
44.07 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, 
sanded or end-jointed, of thickness exceeding 6 mm 40% 
44.08 Sheets for veneering (including thos e obtained by slicing laminated wood), 
for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of thickness not exceeding 6 mm 20% 
44.09 Wood (including strips and friezes for parquet flooring, not assembled) 
continuously shaped (tongued, grooved , rebated, chamfered, V-jointed, 
beaded, moulded, rounded or the like) along any of its edges, ends or 
faces, whether or not planed, sanded or end-jointed 20% WT/TPR/S/340 • Zambia 
 
- 89 - 
 
  HS code Product description Export duty 
rate 
44.10 Particle board, oriented strand bo ard (OSB) and similar board of wood or 
other ligneous materials, wh ether or not agglomerated  with resins or other 
organic binding substances 20% 
44.11 Fibreboard of wood or other ligneous materials, whether or not bonded with 
resins or other organic substances 20% 
44.12  Plywood, veneered panels and similar laminated wood 20% 
44.13 Densified wood, in blocks, plates, strips or profile shapes 20% 
Note: 
* 25% or K 80 (about USD 8) per tonne whichever is greater. 
** 25% or K 1000 (about USD 100) per tonne whichever is greater. 
Source: Information provided by the Zambia Revenu e Authority (ZRA), and the Customs and Excise Act 
(amendment No. 18 of 2015). 
 WT/TPR/S/340 • Zambia 
 
- 90 - 
 
  Table A3.3 List of priority sectors 
Sectors Details 
Manufacturing Manufacturing activities located in a MFEZ, an industrial park, or a rural area 
Construction and establishment of infrastr ucture, excluding renovation, expansion and 
refurbishment 
Education  Construction of educatio n and skill training institutions 
Health  Construction of health centres as defined under the Health Professions Act 2009 
Tourism Construction and establishment of hotels 
 Construction and establishment of convention centres 
 Construction and establishment of exhibition centres 
 Construction and establishment of museums 
 Construction and establishment of theme parks 
 Construction and establishment of art galleries 
 Construction and establishment of theatres 
 Construction and establishment of large retail complexes containing a variety of ten or more 
stores, restaurants or other business establishments housed in a series of connected or 
adjacent buildings or in a single large building 
Housing  Development of 50 or more houses erecte d or maintained under one management or control 
on land developed specifically for the siti ng of such houses in accordance with a 
comprehensive plan which provides for the la ying out of roads and the furnishing and 
availability of services essential or ancillary to the use of such building as houses 
Agriculture  Construction of crop and grain storage facilities 
Energy and water development 
Power  Building and installation of power stations 
Fuel  Building and installation of proc essing and refinery plants for bio-fuel 
 Construction of pe troleum refineries 
 Construction of pipelines 
 Construction of rural filling stations 
Water supply Construction of depots 
 Construction of dams 
 Construction of irrigation canals 
 Construction of water and sewage treatment plants 
Source: Information provided by the Zambia Development Agency (ZDA). 
 
__________