WT/TPR/S/340 /Rev.1  
7 October  2016 
(16-5367) Page: 1/90 
Trade Policy Review Body   
 
 TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
ZAMBIA 
Revision  
This report, prepared for the fourth Trade Policy Review of Zambia, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establis hing the Trade Policy Review Mechanism (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 W ang (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 was drafted in English.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  CONTEN TS 
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ..........................  9 
1.1   Main Features of the Eco nomy  ................................ ................................ .....................  9 
1.2   Recent Economic Developments ................................ ................................ ..................  11 
1.3   Trade Performance  ................................ ................................ ................................ ... 13 
1.4   Foreign Direct Investment  ................................ ................................ .........................  16 
1.5   Outlook  ................................ ................................ ................................ ...................  17 
2   TRADE AND INVESTMENT  REGIMES  ................................ ................................ ...........  18 
2.1   General Framework  ................................ ................................ ................................ .. 18 
2.2   Trade Policy Objectives  ................................ ................................ .............................  19 
2.3   Trade Agreements and Arrangeme nts ................................ ................................ ..........  20 
2.3.1   WTO ................................ ................................ ................................ ....................  20 
2.3.2   Regional and preferential agreements  ................................ ................................ ....... 21 
2.4   Investment Regime  ................................ ................................ ................................ .. 23 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  27 
3.1   Measures Directly Affecting Imports  ................................ ................................ ............  27 
3.1.1   Customs procedures, valuation, and rules of origin  ................................ .....................  27 
3.1.2   Tariffs  ................................ ................................ ................................ ..................  29 
3.1.2.1    MFN tariffs  ................................ ................................ ................................ .........  29 
3.1.2.2    Preferential tariffs  ................................ ................................ ...............................  32 
3.1.2.3    Tariff exemptions and suspensions  ................................ ................................ ........  33 
3.1.3   Other charges affecting imports  ................................ ................................ ...............  33 
3.1.4   Import prohibitions, restrictions, and licensing  ................................ ...........................  34 
3.1.5   Contingency measures  ................................ ................................ ...........................  34 
3.1.6   Government procurement  ................................ ................................ .......................  34 
3.1.7   Standards and other tec hnical requirements  ................................ ..............................  37 
3.1.8   Sanitary and phytosanitary requirements  ................................ ................................ .. 39 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............  40 
3.2.1   Export procedures and requirements  ................................ ................................ ........  40 
3.2.2   Export taxes, charges, and levies  ................................ ................................ .............  41 
3.2.3   Export prohibitions, restrictions, and licensing  ................................ ............................  41 
3.2.4   Export support and promotion  ................................ ................................ .................  41 
3.2.4.1    Export promotion  ................................ ................................ ................................  41 
3.2.4.2    Export finance, insurance, and guarantees  ................................ ..............................  42 
3.2.4.3    Multi-Facility Economic Zones (MFEZ)  ................................ ................................ .... 42 
3.2.4.3.1    Overview  ................................ ................................ ................................ ........  42 
3.2.4.3.2    Legislative framework  ................................ ................................ .......................  42 
3.2.4. 3.3   Impact  ................................ ................................ ................................ ............  43 
3.3   Measures Affecting Production and Trade  ................................ ................................ ..... 43 WT/TPR/S/340 /Rev.1  • 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    Price controls  ................................ ................................ ................................ ..... 48 
3.3.3   State -owned enterprises, privatization, and state trading  ................................ ............  49 
3.3.4   Intellectual property rights  ................................ ................................ ......................  50 
3.3.4.1    Overview  ................................ ................................ ................................ ...........  50 
3.3.4.2    Industrial property  ................................ ................................ ..............................  52 
3.3.4.3    Copyright  ................................ ................................ ................................ ...........  53 
3.3.4.4    IPR bills under consideration  ................................ ................................ .................  53 
3.3.4.5    Enforcement  ................................ ................................ ................................ ....... 54 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ .....................  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 Programme (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    Livestock  ................................ ................................ ................................ ...........  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   Manufacturing  ................................ ................................ ................................ ..........  67 WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  4.4   Services  ................................ ................................ ................................ ..................  68 
4.4.1   Transport  ................................ ................................ ................................ .............  68 
4.4.1.1    Railway transport  ................................ ................................ ................................  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 -sector  ................................ ................................ ................................  71 
4.4.3   Financial services  ................................ ................................ ................................ ... 71 
4.4.3.1    Banking and other credit institutions  ................................ ................................ ...... 71 
4.4.3.2    Insurance  ................................ ................................ ................................ ..........  73 
4.4.4   Tourism  ................................ ................................ ................................ ................  74 
REFERENCES  ................................ ................................ ................................ ..................  76 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 77 
 
CHARTS  
 
Chart 1.1 Composition of mer chandise trade, 2008 and 2014  ................................ .................  14 
Chart 1.2 Direction of merchandise trade, 2008 and 2014  ................................ ......................  15 
Chart 3.1 Distribution of MFN applie d tariff rates, 2008 and 2016  ................................ ...........  32 
Chart 3.2 Tariff escalation by 2 -digit ISIC industry, 2016  ................................ .......................  32 
Chart 4.1 Insurance sector in Zam bia, 2014  ................................ ................................ ........  73 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2008 -15 ................................ ..........................  9 
Table 1.2 Balance of payme nts, 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 the WTO Agreemen ts, January 2009 -April 2016  ..............  20 
Table 2.3 Overview of Zambia's regional and preferential trade agreements, 2016  ....................  21 
Table 2.4 Regi strations for businesses , 2009 -15 ................................ ................................ ... 24 
Table 2.5 Zambia's double taxation avoidance agreements  ................................ ....................  25 
Table 3.1 Summary of procedures and documents for trading across borders, 2016 ...................  27 
Table 3.2 Zambia's rules of origin  ................................ ................................ .......................  28 
Table 3.3 Structure of MFN tariffs in Za mbia, 2008 and 2016  ................................ .................  29 
Table 3.4 Zambia's applied MFN tariff summary, 2016  ................................ ...........................  30 
Table 3.5 Public procurement approval authorities and the publication thresholds  ......................  35 
Table 3.6 Government procurement methods  ................................ ................................ ....... 36 
Table 3.7 Government procurement – local preferenc es ................................ .........................  37 WT/TPR/S/340 /Rev.1  • Zambia  
 
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  Table 3.8 Zambia's membership in a number of international standards organizations  ...............  38 
Table 3.9 Standards and technical re gulations developed in Zambia  ................................ ........  38 
Table 3.10 Import/export 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 characteristics of the CCPA  ................................ ................................ ..........  47 
Table 3.17 Government shares in public enterprises, 2007 and 2015  ................................ ....... 49 
Table 3.18 Summary of the protection of intellectual property rights, 2016 ..............................  51 
Table 3.19 IPR statistics, 2010 -15 ................................ ................................ ......................  52 
Table 3.20 Major amendments to the Copyright and Performance Rights Act  ............................  53 
Table 3.21 Summary of the changes proposed in the bills  ................................ ......................  53 
Table 4.1 List of selected laws regulating agriculture in Zambia  ................................ ..............  56 
Table 4.2 Livestock population and products, 2008 -14 ................................ ..........................  60 
Table 4.3 Mineral Rights in Zambia  ................................ ................................ .....................  62 
Table 4.4 Ownership of large -scale mines in Zambia  ................................ .............................  62 
Table 4.5 Copper and cobalt production in Zambia, 2000 -14 ................................ ..................  63 
Table 4.6 Cost elements in the wholesale price  ................................ ................................ ..... 65 
Table 4.7 Cost elements in the pump price  ................................ ................................ ..........  65 
Table 4.8 ZESCO's approv ed tariffs  ................................ ................................ .....................  66 
Table 4.9 Commercial banks' market share and performance indicators, as at 31  December 
2014  ................................ ................................ ................................ ............................  72 
Table 4.10 Tourist s arrival to Zambia by category and origin, 2009 -13 ................................ .... 75 
 
APPENDIX TABLES  
 
Table A1. 1 Merchandise imports by product group, 2008 -14 ................................ .................  77 
Table A1.2 Merchandise exports by product group, 2008 -14 ................................ ...................  79 
Table A1.3 Merchandise imports by origin, 2008 -14 ................................ ..............................  80 
Table A1.4 Merchandise exports by destination, 2008 -14 ................................ .......................  81 
 
 
Table A3. 1 MFN tariff averages by HS2 -digit level, 2016  ................................ .......................  82 
Table A3.2 List of products with export duties  ................................ ................................ ...... 87 
Table A3.3 List of priority sectors  ................................ ................................ .......................  90 
 WT/TPR/S/ 340/Rev.1  • 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 retail trade. Buoyant construction activities and 
higher agricultural production also helped. GDP 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 op eration 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 th e 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 Zambian 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 o f the Kwacha have negatively affected Zambia's external 
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 dive rsified and consist mainly of 
machinery, transport equipment, and oil and automotive 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 di rect 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  registr ation 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 e liminated, 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 /Rev.1  • Zambia  
 
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  three regional economic communities and addr essing inconsistencies related to their overlapping 
membership.  Zambia has also maintained preferential 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 line s 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 a verage 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 ad herence 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 recog nized 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/forei gn 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 ge nerally insufficient.  
10. Export taxes apply on a number of products including mineral ores and concentrates, waste 
and scrap metals, and some types of timber products. According to the authorities, this is to 
encourage value addition within the country and t o 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 time to time, for food security reasons.  
11. Zambia amended or enacted various trad e-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 mechanism; however, sectoral regulators still play an 
important role i n 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 rema ined 
unchanged, although five bills are under consideration on: trademarks, patents, industrial designs, 
layout designs, and traditional knowledge.  
12. The public procurement regime was reformed in 2013: public procurement has been 
decentralized and the Zambi a 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. Curren tly, 
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, provid ing livelihood for over 70% of the 
population, and contributing 10% to GDP and to  total export earnings . Maize, the country's staple 
food, together with seed cotton, sorghum, rice, millet, 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, s ome 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 Na tional 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/Rev.1  • 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 re cent 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 u nderdeveloped. 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 f inance, 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 regula tory framework; absence of a national policy  concerning services 
trade; and difficulties in  translat ing regulatory frameworks into opportuniti es. U nder the GATS , 
Zambia  has bound market access in certain business services, construction and related 
engineer ing services, healthcare and social services, and tourism and travel -related services .  
 WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  Zambia is a "landlin ked" 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 educati on. According to the UNDP's 2015  Human Development Report, 
Zambia's Hum an Development Index (HDI) was 0.5 86 in 201 4, 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 activit y 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 activit y 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 administrative procedures, as well as weak access to 
finance and narrow market access opportunities, in a context of limited regional integration, 
impede s trong 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 bankin g, 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 relatively marginal, it offers opportuniti es 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 Selecte d 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 .. 
Unemploymen t 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, in cl. 
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 go ods 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 on line information, "Data: Zambia". Viewed at:  
http://data.worldbank.org/country/zambia .  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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   2008  2009  2010  2011  2012  2013  2014  2015a 
Agriculture, forestry and fish ing 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 administration 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 ba lance -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 impo rts (%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 
(percen tage change)  8.8 -22.6 0.4 -5.1 -0.1 -0.2 -8.3 -15.6 
Total reserves (includes 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 informat ion provided by the Central Bank of Zambia and the Zambia n Ministry of Finance; 
Zambia n Central Statistical Office online statistical 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 Indicator s database. Viewed at : 
http://databank.worldbank.org/data/reports.aspx?source=World -Development -Indicators . 
 WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  1.2  Recent Economic Developments  
1.5.  With an average rate of about 6.6%, Zambia'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 st eadily 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 wer e also 
boosted by the recent infrastructural development 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 als o 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 difficulties, in particular some unscheduled maintenance 
problems , left a number of mines out of operation for several months. In addition, weak er 
economic growth  in China further frustrated 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 B ank of Zambia'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 Decemb er 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 factor 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 
remov ing existing subs idy 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. Accor ding to the 
authorities, BoZ financing of the government deficit 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 deterior ated 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 incentive 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 cont inues 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 depreciating currency have led to a slight deficit of 
                                               
2 IMF (2012).  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  the cu rrent 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 recent ly 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 Nation al 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 services is clearly considered as an optimal tool 
for income gener ation, creation of decent jobs, promotion 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 c onsidered to be  
the key growth sector s in the R -SNDP. The Government is committed to creat ing a favourable 
business environment for these priority sectors; active incentive schemes are already in place in 
this regard (Section 3). Priority sectors are poise d to mainstream cross -cutting issues such as HIV, 
gender, disability, environment and disaster risk management in to 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 inve stment: 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/Rev.1  • Zambia  
 
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  1.15.  International reserves, measured by months of imports, remained under the Government's 
medium -term target of four months of import s. 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 percentage of GDP, increased remarkably between 2012 
and 2014 from 25.5% to 35.1%, driven to a large extent by its external component. The 2014 
hike in external debt stock wa s 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 201 4 (82% of G DP).  
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 depreciated 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 200 8 and 201 4 from 41.1% to 73.3 . Agrifood products, chemicals, and 
certain semi -manufactures are also exported in substantial quantities (Chart 1.1 and Table A1.2).  
1.20.  Africa is the leading source of Z ambia'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 m arket for Zambian products, with 
shares increasing from 11.2% to 18.5% between 2009 and 2014.  
                                               
3 KPMG (2014).  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Chart 1.1 Composition of merchandise trade, 2008 and 2014  
(%) 
Chart 1.[Prd]
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%
Source:  WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.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 database (SITC Rev.3).  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Chart 1.2 Direction of merchandise trade, 2008 and 2014  
(%) 
Chart 1.[Reg]
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 billion%
Source:  Asia
13.2%China 
5.6%Middle
East
3.2%
D.R.Congo
5.6%EU (28)
6.4%
Africa
28.2%
WTO Secretariat calculations, based on UNSD, Comtrade database.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 traditio nally in deficit. Services exports are highly 
concentrated, and dominated by travel services (Table 1.3). Imports are more diversified and they 
are mostly associated with mining activities. Transport, travel and construction services are the 
main component s. WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  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 p roperty 
 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 performed relatively well in terms of foreign direct 
investment (FDI). The inflows registered a n almost  fourfold increase fr om 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/Rev.1  • Zambia  
 
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  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 GD P) 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 Zambia n 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 to  unreliable energy, weak 
access to finance, high interest rates, and macroeco nomic 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, t he economy is poised to continue growing at least at the s ame 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 o n the economic performance may suffer 
from a certain number of downside risks. These include 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 su rplus 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 the export of services, specifically travel services.  
 
                                               
4 IMF (2015).  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  2  TRADE AND INVESTMENT RE GIMES  
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 Constitution al 
Court.2 Under the Constitution, t he legislative power is vested in the Parliament, which consists of 
the President and the National Assembly. The Parliament enacts legislation through bills passed by 
the National Assembly and approved by the President. 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 -President 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 an d, 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 Constitution is followed by laws  and ministerial and 
administrative dec isions. Since the previous Review, there ha ve been no change s 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 i t 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 po wer 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 99th in 2009 to 76th out of 
175 countries in 2015.3 The legal and institutional frameworks against co rruption 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, co rruption 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 formulated and executed by t he 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 t rade policies and makes policy decisions in consultation with the 
relevant stakeholders. The current guiding document on trade policy – the Commercial, Trade and 
Industry Policy (CTI) – was adopted in 2010. Trade 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%2 0(Amendment),%202016 -Act%20No.%202_0.pdf . 
2 Bloomberg Business , "Zambian Constitution Changes Set Rules 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 online information. Viewed at: 
https://www.transparency.org/country/#ZMB . 
4 Transparency International online information. Viewed at: 
https://www.transparency.org/country/#ZMB . 
5 World Economic Forum (2015).  WT/TPR/S/ 340/Rev.1 • Zambia  
 
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  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 f rom 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 Farme rs 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 l aws 
have been issued, amended, or revised  (Table 2.1 ). 
Table 2.1 Main trade and investment -related legisla tion issued/amended/implemented 
since 2009  
Subject  Legislation  
Competition policy  Competition and Consumer 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 consideration, concerning:  trademarks, patents, industrial 
designs, layout designs, and traditional knowledge  
Copyrights  Copyright and Performance Rights Act amended in 201 0 
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 A ct (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 (Amend ment) 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 Industry 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. stimu late and encourage value -addition activities on primary exports as a means of 
increasing national export earnings and creating employment opportunities;  
                                               
6 MCTI (2010), Commerci al, Trade and Industrial Policy , January, Lusaka.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  b. transform the economy into a diversified and competitive economy that is  well 
integrated into the inter national 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 uti lization of domestic productive capacities so as 
to increase output and expand employment opportunities;  
e. facilitate the acquisition of modern technology to support value  addition and industrial 
processes by domestic firms;  
f. facilitate public and private inv estment in infrastructure to support improvements in the 
quality and standards of Zambian products;  and 
g. assist domestic firms to increase their levels of efficiency and competitiveness, and 
therefore withstand increasing competition in domestic and interna tional 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 Procure ment 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 the 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 Sept ember 2013  
Article s 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 Aug ust 2009  
Article 12.4  Notification on initiation of an 
investigation and the reasons for it  G/SG/N/6/ZMB/1, 5 Oct ober 2015 
G/SG/N/7/ZMB/1, 5 Oct ober 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 Sept ember  2012 
G/STR/N/3/ZMB, 12 Sept ember  2012 
G/STR/N/6/ZMB, 12 Sept ember  2012 
G/STR/N/12 /ZMB, 12 Sept ember  2012 
G/STR/N/13/ZMB, 12 Sept ember  2012 
G/STR/N/14/ZMB, 12 Sept ember  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 Jan uary 2016 
Agreement on Technical B arriers to Trade  
Articles 3.2 and 7.2  Technical regulations  G/TBT/N/ZMB/45, 16 Dec ember  2015 
G/TBT/N/ZMB/46, 16 Dec ember  2015 
G/TBT/N/ZMB/47, 8 Jan uary 2016 
G/TBT/N/ZMB/48, 8 Jan uary 2016 
Source:  WTO Secretariat.  
                                               
7 WTO online information, "Zambia Trade Profile". Viewed at:  
http://stat.wto.org/CountryProfile/WSDBCountryPFV iew.aspx?Language=E&Country=ZM . WT/TPR/S/ 340/Rev.1 • 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 packag ing 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 th e 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 Paci fic countries with preferences 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 d eveloping 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 ha s trade -related technical assistance needs in a number of areas, including: 
customs procedures, standards and other technical regulations, SPS measures, competition policy 
implementation, and IP protection at the border, among others.  
2.3.2   Regional and prefere ntial agreements  
2.16.  Zambia is a member of both the Common Market 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 Republic 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 Africa n Development Commun ity 
Parties  Angola, Botswana, Democratic Republic of the Congo, Lesotho, 
Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, 
Swaziland, Seychelles, Tanzania, Zambia, and Zimbabwe  
Coverage and type  Goods, FTA  
Date of signature  24 August 1996 
Date of entry into force  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 docum ent series  WT/REG176  
                                               
8 WTO online information, " Zambia and the WTO ". Viewed at: 
https://www.wto.org/english/thewto_e/countries_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/english/thewto_e/countries_e/zambia_e.htm . WT/TPR/S/ 340/Rev.1  • 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 Preferences - European Union  1 July 1971 
General ized 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 P references - 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 LDCs - 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 (D emocratic Republic 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 Secreta riat, 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 th e negotiations for the Tripartite Free Trade Area (TFTA), which is 
a free trade agreement  between COMESA, SADC and 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 a re: 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 f or 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 Partnership 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 quo ta-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 tot al Zambian exports were traded under AGOA, and 8.4% under the GSP scheme 
                                               
11 EU online information. View ed at: http://ec.europa.eu/trade/policy/countries -and-
regions/regions/esa/ . WT/TPR/S/ 340/Rev.1 • 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 97th 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 it s 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 re bounded 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 o f 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 ZD A is 
responsible for: enterprise development, investment 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 Board comprises memb ers 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 l and; 
obtain water, electric power, transport, and communication 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 re quired.  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 Zambi a 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 regist ration 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 court s, 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 i n three provinces of Zambia. The number 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/Rev.1  • Zambia  
 
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  Table 2.4 Registration s for businesses , 2009 -15 
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). T he 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, an d focusing only on necessary regulation process es.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 agenc ies. 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 
convert ed 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 cost s (about K  595 million).  
2.28.  The Government enacted the Business Regulatory Act (No.  3 of 2014)18, in accord ance with  
which a Business Regulatory Review Committee (BRRC) and a Business Regulatory Review Agency 
(BRRA) were both established in 2015. The BRRA – not ful ly 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 regulatory impact assessment, to analyse the need  for 
the licence  and its objective s to avoid introducing unnecessary licences.  
2.29.  The objective of the business licensing procedure reform is to ensure that only necessary 
licences are introduced and to increase the accountability of the regulatory authorities. The 
Business Regulatory Act em phasizes 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 Integrat ed 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 introduced 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 78th 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 maki ng 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 proces sing 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/Rev.1 • 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 o f Registration is valid for ten 
years from the date of issue, and may be renewed. 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. Zam bia is  a party to the New York Convention on  the 
Recognition and Enforcement of Arbitral Awards and the International Convention on the 
Settlement of Investment Disputes. The ZDA Act provides for free repatriation of profits and 
dividends and protection ag ainst 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. According 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 (Investme nt Promotion and Protection Agreements) so far, and 
three of them have been  ratified (with Germany 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 Mauritius 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 do uble 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/Rev.1  • 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 Tax Information Exchange Agreements (TIEAs) with 
Guernse y (ratified by the Cabinet) and the Isle of Man (negotiated, pending ratification). It is also 
participating in an Agreement on Mutual Assistance in Tax Matters (AMATM) signed between the 
ATAF (African Tax Administration Forum) and the SADC.  
 
 WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  3  TRADE POLIC IES 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 Zambi a. In 2010, advance tariff ruling on 
classification was introduced. As tariff classification 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 ru ling 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 respons ible 
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 import 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 ar e electronic. The World Bank's Doing Business report ranked 
Zambia 152nd 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 
perform ance than the regional average for Sub-Saharan Africa (136th).  
Table 3.1 Summary of procedures and documents for trading across borders, 2016  
 Import procedures  Export procedures  
Time per 
consignment  Cost p er 
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 companies that are registered as a taxpayer, have a 
number of staff possessing  a certificate and experience 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/Rev.1  • Zambia  
 
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  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 changes 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 we re 76 appeal cases, 21 related to classification, 49 to valuation, and 
six to other issue s. 
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 i n 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 p resent 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 the cargo after further documentary validation), red 
(release of the cargo after a physical exami nation) 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% th rough the 
blue channel.  
3.8.  Zambi a 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 averages 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 averages 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 authorities indicate that the  major difficulty 
encountered by the customs administration in implementing 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 ru les 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 i ssued 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 they hav e undergone a process of substantial 
transformation of materials imported from outside 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/P CTF/N/ZMB/1, 18 January 2016.  
2 OECD . WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  SADC  No regime -wide rules of origin; origin criteria are generally product specific:  
- Wholly obtained or entirely produced goods for agricultural products;  
- CTH (customs tariff heading) is the most 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 a t: 
http://rtais.wto.org/rtadocs/121/RelatedDocuments/Factual%20Abstract/English/COMESA(G)_W.doc
; WTO, Factual Presentation: Protocol on Trade in th e Southern African Development Community 
(SADC) , WT/REG176/4, 12 March 2007; and COMESA Business Council online information. Viewed 
at: http://www.comesabusine sscouncil.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 Cabin et 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 total  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 all 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 tariffs in Zambia, 2008 and 2016  
(%) 
  MFN applied  Final bounda 
  2008 2016  
1. Bound tari ff 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, hunting, 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/Rev.1  • 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 from 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 exceeding 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 b ased 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 imported durum wheat of less than 75,000 metric 
tonnes, or wheat grain of less t han 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 lines (2.2% of all tariff lines) bear alternate 
tariffs. Alternate tariffs apply mainly to: woven fabrics of cotton, motor vehicles, tobacco and 
tobacco subst itutes, among others.  
3.17.  The share of duty -free lines increased 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 definit ion) 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 fro m 9.6% in 2008 to 10.7% in 2016, partly reflecting the increased share of 
duty-free lines, and partly reflecting the introduction 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, t ea, and cocoa and 
cocoa preparations  32 23.1 15-25 3.9 0.0 0.0 WT/TPR/S/ 340/Rev.1  • 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 an d 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, footw ear 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 pr ocessing        
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 processed 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 taken into account for the  calculations.  
Source:  WTO Secretariat calculations, based on data provided by the Zambian authorities.  WT/TPR/S/ 340/Rev.1  • 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
WTO Secretariat calculations, based on data provided by the authorities.Number of tariff linesChart 3.1   Distribution of MFN applied tariff rates, 2008 and 2016
Tariff rates (%)MFN 2008
MFN 2016
Source:Note: Figures in parentheses indicate the share of total lines.  
 
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 rate s range from 5% on first -stage processed products to 9.4% on 
semi-processed products, and 16.8% on fully processed 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 proces sing, 
and then positive to fully processed goods.  
Chart 3.2 Tariff escalation by 2 -digit ISIC industry, 2016  
(%) 
0.05.010.015.020.025.030.035.040.045.0Chart 3.[Zambia]
Tariff escalation by 2 -digit ISIC industry, 2016
%
Source:      WTO Secretariat estimates, based on data provided by the authorities.
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.            Not applicable.
Note:          Calculations include the ad valorem part of mixed duty rates.
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 duty -free access to goods imported from the other 
member countries. Goods imported from COMESA FTA members are duty free, w hile imports from 
the other COMESA members may be subject to low non -zero tariffs.  The authorities stated that , WT/TPR/S/ 340/Rev.1  • 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 c arry 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 fir st time and any person returning to Zambia after having stayed outside 
for at least two years);  
c. Goods for diplomatic missions and personnel;  
d. Goods for approved organizations3;  
e. Under the ZDA (Zambia Development Agency) Act, tariffs are exempted for design ated 
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 econom ic zones (MFEZs) for 
five years.  
3.1.3   Other charges affecti ng 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 de claration) is collected at the border on 
imports.  
3.22.  VAT, at a standard rate of 16%, is applied equally (same rates and equivalent bases) to 
imported and domestically produced goods and services. VAT is imposed on goods and services 
provided by suppliers wit h 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; 
agricultura l 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 domestically produced and imported goods (same rates 
and equivalent bases). The base for excise on imported goods is the c.i.f. value plus the import 
tariff. The excise dut y 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 mi lle, 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/Rev.1  • 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 i nto 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 contain ing 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);  and 
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 p roducts 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 G oods 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 acti on. Investigations may be initiated by any Zambian industry, or by the 
Ministry of Commerce , Trade and Industry (MCTI) on its own initiative.  
3.28.  Zambia notified that safeguard investigations were initiated in July 2015 on imports of 
flat-rolled products of i ron, 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 du ty 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 3 22 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 Procur ement Act No. 12 of 2008 and 
the Public Procurement Regulations of 2011. The 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 pro curement 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/Rev.1  • 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 Authority (ZPPA) is no longer involved in procurement 
proceedings. Rather, the ZPPA is the regulator of public procurement, and provides advice, 
guidance and tra ining 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 authorities and the publication thresho lds 
 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 Publi c 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, whe reas "selection" is used for the 
procurement of consulting services. Open bidding is the recommended m ethod.  
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. Accord ing to the Public Procurement Act, a 
procuring entity may use open international bidding where:  
a. the estimated value of the procurement exceeds the prescribed threshold6; 
b. the goods, works or services are not available under competitive price and other 
condi tions 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/PUBLIC_PROCUREMENT_ACT.pdf/f2e108b2 -e83b-463b-
9b9f-420343757b77?version=1.1 . WT/TPR/S/ 340/Rev.1  • Zambia  
 
- 36 - 
 
  Table 3.6 Government procurement methods  
Method  Description/conditions  
Simplified 
bidding/selection  - low value procurement (up to K  500 million)  
- at least three competitive 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 available from a limited numbers of suppliers  
- there is an urgent need  
- the invitation to bid is not gazetted 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 available from a single source, and no reasonable 
alterna tive or substitute exists  
- there is an urgent need  
- the invitation to bid is not gazetted or advertised in newspapers  
- the invitation to bid is restricted to the nominated firm only  
- the invitation to bid has a minimum floatation period of four weeks f or national 
tenders and six weeks for international tenders  
Force account 
(low value)  Construction conducted by the procuring entity's own personnel and equipment:  
- the quantities of work involved cannot be defined in advance  
- the works are small and sc attered or in remote locations for which qualified construction 
firms are unlikely to bid 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 local know -how and materials; and,  
- employ labour -intensive and other appropriate technologies  
Purchases f rom 
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 a ble to meet all the procuring entity's requirement as 
specified in the statement of requirement 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 other public goods on the basis of private 
investment  
 
Use of alternative 
procurement 
methods  A procuring ent ity 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 proc uring 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 -object ion 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 requi rements, 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/Rev.1  • Zambia  
 
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  Table 3.7 Government procurement – local preferences  
Price margins  Reservation /set -aside of tenders for local 
companies  
4% for a "citizen -influenced" companya Building construction works not exceed ing 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 -influe nced 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 o f 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 standards, standardization, quality control, quality 
assurance, import and export quality inspections, and certification.  
3.41.  The ZABS is not in charge of enforcing all standards. Different sector -specific regulators 
include the Za mbia Information Communications and Technology Authority (ZICTA) for ICT 
standards, the Energy Regulation Board (ERB) for energy, the Road Transport and Safety Agency 
(RTSA) for road transport, the Zambia Environmental Management Agency (ZEMA) for chemical s, 
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, the laboratories of th e 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 in clude 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: estab lishing 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/Rev.1  • 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 forei gn 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 Cod e of Good 
Practice for the preparation, adoption and appreciation 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 Stan dardization Organization)  2003 Corresponding member  
IEC (International Electrotechnical Commission)  2004 Affiliate member  
ARSO (African Organi sation 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  
internati onal standards. About 2% are compulsory standards (technical regulations).  
3.47.  According to the authorities, technical regulations (compulsory standards) apply to 50 types 
of products (Table 3. 9). During the review period, Zambia made 4 notifications on techn ical 
regulations to the WTO ; all of them were notified 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; petroleum jelly for the cosmetic industry; pure 
glycerine; and drinking water.8 
Table 3.9 Standards and technical regulations developed in Zambia  
 Befor
e 
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 ha ve been no change s to the procedure for formulat ing 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. Standa rds are published in the Government Gazette once 
they are approved by the Standards Council.  
3.49.  The procedure for formulat ing technical regulations is the same as that for standards. If 
there is a need to protect health, the environment or the  safety of citi zens, standards may be 
declared mandatory and become technical regulations. These standards must be submitted to the 
MCTI for evaluation before being declared mandatory. During this process, these standards are 
advertised in the Government Gazette for 60 d ays, 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 mandato ry, i.e. technical regulations.  
                                               
8 WTO documents G/TBT/N/ZMB/45, G/TBT/N/ZMB/46, G/TBT/N/ZMB/47 and G/TBT/N/ZMB/48, 
December 2015 to January 2016.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  3.50.  The ZABS maintains a product certific ation marking scheme, and manufacturer s (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, 
cosmeti cs 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 Commu nity Accreditation Service (SADCAS) was 
launched in April 2009, and Zambia is utili zing its services. The only accredited laboratory in 
Zambia is Alfred H. Knight on the Copper belt; the ZABS testing laboratory has also sought 
accreditation. ZABS is enhanci ng testing capacity through the develop ment 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 
agenc y 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 ha ve been no significant change s to the sanitary 
and phytosanitary (SPS) requirements in Zambia. The leg islation 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 201 0. 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 Organi sation for Animal Health (OIE), and a signatory to the 
International Plant Protection Convention (IPPC). During the review period, no trade concern s 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 Agr iculture 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. Zambia, together with some other countries in 
the region, obtained training on how to apply the phytosanitary capacity evalua tion (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 animal s 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.  
3.57.  Animal standards and hygiene are based on OIE nor ms. 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 
livestock products must be insp ected by the Department of Veterinary Services upon arrival in 
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 -by-case basis. All exports of animals and animal 
products are subject to a veterinary certificate.   
                                               
9 WTO online information, " SPS Information Management System ". Viewed at: 
http://spsims.wto.org/web/pages/search/stc/Search.aspx . WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Table 3.10 Import/exp ort certificates  
Product  Import  Export  Issuing department  
Animals and animal 
products  Import permit  Sanitary certificate  Veterinary Department  
Plants and plant products  Plant import permit  
 Phytosanita ry 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 Agriculture, and the Ministry of Livestock and Fisheries . 
3.58.  The imports of plant and plant products are 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 a re based on IPPC requirements. The Agribusiness and 
Market ing (ABM) Department , under the Ministry of Agriculture , is responsible for issuing 
agricultural import/export permits for plants and plant products. These permits stipulate what 
other documents, su ch as phytosanitary certificates, 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 a re 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 registra tion) 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 2 36). 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 Drug s 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 iodin e) 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 Cle arance 
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 s ervice.  
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 152nd among 
189 economies in the world in terms of trading across border s in 2016, lower than the regional WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  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 listed in Table 3.1. Documents  required  to export 
are: bill of lading, certificate of origin, com mercial 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 9th 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 metal, 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 copper 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 from time to time; according to the authorities, 
this is for food security reasons. The Fo od Reserve Agency (FRA) may export maize from Zambia 
through government to government arrangements.  
3.71.  Export permits/licences are required for certain goods, such as maize grain, groats and flour 
(for food security reasons); minerals (for monitoring); fertil izers; live animals ; gemstones ; and 
firearms. The intending exporter applies to the re levant  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 Draw back Scheme 
to promote exports by reducing the cost of produci ng 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, an d assisting export companies to participate, in trade fairs and exhibitions 
within and outside the country;  
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.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  3.2.4.2   Export finance, insurance, and guarantees  
3.74.  Export insuran ce 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 
researc h, capacity building, product development, 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 -tradition al export goo ds 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, water, sew erage, 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  Industrial parks approved but 
not established   
Roma  Ndola (Sub Saharan gemstones 
exchange)   
Source:  Information p rovided by the authorities.  
3.77.  Investors may identify and suggest any other location in Zambia for such development. The 
Government has prioriti zed the following areas for the development of MFEZs: Lusaka, Ndola, 
Mpulungu, Chembe, Nakonde, Kasubalesa and Mwi nilunga.  
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 ( Section 18) and the Statutory Instrument No. 65 
of 2007. The ZDA is in charge of administerin g, controlling and regulating MFEZs.  
3.79.  Companies, local or foreign, 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 
                                               
10 ATI currently provides export insurance services in: Benin, Burundi, the Democratic 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/Rev.1  • Zambia  
 
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  materials and intermediate goods11; introduction and transfer of technology and skills; production 
of new products; and social development. In addition, 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 -orientation; the degree of import substitution; and the 
utilization of preferential trade agreements. Once qualified, the compa nies (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 Industry) is responsible for policy formulation with 
regard to  MFEZs and industr ial 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 Zamb ia Chamber of Commerce and Industry.  
3.2.4.3.3   Impact  
3.81.  So far, Chambishi is the largest MFEZ, with 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 autho rities 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 attracted not only by the incentives attach ed 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 t he 
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 m ain types of taxes are income tax, VAT, and 
customs and excise duty. Tax revenue from  the extraction royalty in creased 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  
 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.  
                                               
11 According to the authorities, this is to encourage both foreign and local in vestors to consider first 
using locally available raw materials and intermediate goods before importing them, with an intention to create 
a market for local micro, small and medium -sized enterprises in the production process.  
12 Ministry of Finance  (MOF), 2015 Budget Speech . Viewed at: https://www.zra.org.zm/# . WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  3.84.  According to the World Bank, Zambia ranked 46th out of 189 economies for paying taxes in 
2016, up from 81st in 20 15, and much better than the regional average (131st for Sub -Saharan 
Africa).13 On average, firms pay 26 taxes a year, spend 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 a lmost 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 (PAYE) 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 fo r 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 than 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 fi ve 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 carrying on mining o perations  0 
 Dividends paid to an individual by  a company listed on the Lusaka 
 Stock Exchange (LUSE)  0 
 Dividends paid by a company engaged in the assembly of motor 
vehicles, motorcycles and bicycles  0 (for the first five years)  
 Dividends declared fr om 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 Government 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 
                                               
13 World Bank (2016). WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Company income tax   
 Rent  10 
 Commission (residents)  15 
 Commiss ion (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 bet ting 20 
Source:  Information provided by the ZRA.  
3.86.  The m ineral 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 tariff s 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 park, a priority secto r, 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 commencement of operations  
Import 
tariff 0% import duty on  capital equipment and machinery for five years  
Source:  Information provided b y 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 attract 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 iss ued the Competition and Consumer Protection Policy in 2009. The 
Competition and Consumer Protection Act (CCPA) No. 24 of 2010 was promulgated with a view to 
enhancing predictability of the enforcement mechanism, which was missing in the repealed 
Competitio n 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.  
                                               
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/Rev.1  • Zambia  
 
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  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 abov e 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 fo r 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 decideda 
Consumer protection  Section 12  A detailed section (Part VII) on 
consumer protection  
Negative clearanceb Some ac tivities 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 cause d 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 Tribunal was formed one year after the CCPA took effect, 
which caused the backlog of cases.  
b Negative clearance is not only for mergers.  A comfort letter is then sought by the parties from the 
Commission.  
Source:  Information provided by the  Competition 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 marke t 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 provision s 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-Consumer -Protection -1-21.pdf . WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Table 3.16 Key characteristics of the CCPA  
Subject  Notes  
Restrictive business and anti -competitive 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 the 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 customers, 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 perso n: 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 
maintena nce.   
 
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 e nterprises with a dominant 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 s ervices  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 creat ing 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 harassm ent or coercion.  A fine not exceeding 10% of the 
person's or enterprise's annual 
turnover, or 150,000 penalty 
units, whichever is higher.  
 
a "Appreciable" extent is related to agreements satisfying the  de minim is rule: only those activities 
with a great effect are reviewed by the Commission.  
b According to the Competition and Consumer Protection (General) Regulations issued in 2011, a 
merger transaction requires authorization by the Commission where the combined turnover or 
assets, whichever is higher, i n 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 authorit ies.  
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 deter mines 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/Rev.1  • 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 co ntains 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 Services 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 s ale 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 sectors 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 co mpetition 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. Si nce 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 o n 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 dra ft amendments 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 admi nistration. In addition, the CCPA has a leniency programme to facilitate 
identification of cartels; the programme has been finali zed, 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 services such as: fuel (by the Energy Regulation 
Board), electricity tariff s (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/Rev.1  • Zambia  
 
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  3.3.3   State -owned enterp rises, 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 role in the economy. The list of enterprises with 
significant government ownership remains long, although 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 Minin g 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 
Contrac t 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  .. 
Mupep etwe 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 Zam bia  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 s 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 , and G/STR/N/14/ZMB , 12 September 2012 . WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Entities  2007 (%)   2015 (%)  
Zambia Railways  100  Zambia Railways  100 
Zambia State Lotteries  100    
Zambia Telecommunication  100  Zambia Telecommunication (ZAMTEL)  100 
Zamcapital Enterprises  100   
.. Not available.  
Source:  Informat ion 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 sector 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 thro ugh negotiated or competitive bids or by private treaty;  
c. Offer of additional shares in a n SOE 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 th e SOE; 
f. Mana gement or employee buyouts;  
g. Lease and management contracts;  and 
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 a re transferred/deposited into a special account 
designated for privatization – the "Privatization Revenue Account" – manag ed by the Ministry of 
Finance.  
3.105.   The Government has identified PPP ( public private partnership) as a way to achieve  
infrastructure devel opment, 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 Planning, and a PPP Act was promulgated (the Publi c 
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 ha ve been no 
significant change s to the legislative and institutional framework of IPR protection in Zambia sinc e 
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. WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  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    
Tradem ark Act 
Cap 401 Initially for 7 years, may be renewed every 14 
years for an indefinite period (PACRA)  Only for goods, not for services  
Registered industrial designs  
Registered Industrial 
Designs Act  
Chapter  402 Five years from the date of registration, a nd 
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 Ministry 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 propert y is silent on exhaustion with regard to 
IP rights. In practice, the authorities are more inclined to national exhaustion. The legislation on 
copyrights stipulate s exclusive distribution rights, 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 I ndustrial 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:  
                                               
20 WIPO online information. Viewed at: http://www.wipo.int /wipolex/en/profile.jsp?code=zm . WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  a. Singapore Trademark Law Treaty;  and 
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 for public health matters. Both deadlines were 
extended for LDCs, to 2021 and 2033 respect ively.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 i ndustrial property rights, including operat ing 
a legal system for the registration and protection 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 PACR A (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 PACR A, it takes on average 160 working 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.php?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 t he authorities, it 
takes about 120 working days to register a trademark in Zambia; around half of the applications 
were made by foreigners. In accordance with the Trade  Mark Act, well -known trademarks may be 
registered as defensive trademarks, or as any ot her trademarks.  
                                               
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: Botswana, 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/about -aripo/membership -
member -states .   
23 ARIPO must ensure compliance with national legislation as part of  the process of substantive 
examination. No provisions on parallel import s, including through compulsory licensing or government use, 
exist at ARIPO level.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  3.3.4.3   Copyright  
3.117.   The Office of the Registrar of Copyrights under the Ministry of Information and 
Broadcasting Services (MIBS) is responsible for copyright -related issues. Other ministries, such as 
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 A ct. Major amendments cover, inter alia , the introduction of security holograms to 
counter copyright piracy. The amendments require that all copyrighted audiovi sual products sold in 
the Zambian market have a hologram affixed by the Office of the Registrar. Other major changes 
are listed in Table 3. 20. 
Table 3.20 Major amendments to the Copyright 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 Hig h 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. Synchro nization 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 significant 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 contr actual licensing;  
International exhaustion of rights;  
Enforcement of IPRs through criminal or civil proceedings;  
Protection of pharmaceutical patents;  
Protection of utility models;  
International filing of patents (PCT and ARIPO applications);  
Harmonized du ration of validity and renewal in line with the TRIPS Agreement.  
Trademarks  Protection of service marks;  
Geographical indications;  
Protection of well -known marks;  
International exhaustion of rights;  
                                               
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/Rev.1  • Zambia  
 
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  IP rights  Changes proposed  
Enforcement of IPRs through criminal or civil proceeding s; 
Border measures on seizure of goods;  
Incorporates provisions of the Madrid Protocol on International Registration of Marks;  
Harmonized duration of validity and renewal 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 renewal 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 w ith the Customs and Excise Act.  To improve public 
awareness of protecting IPRs, PACR A 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 ne ed to protect and respect IPRs.  
 WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  4  TRADE POLICIES BY SE CTOR  
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 total 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 irri gation 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 sunflowers; while the production of tobacco, Irish 
potatoes, wheat, and soya beans is dominated b y 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 performance was a consequence of favourable weather 
conditions in the major agricultural re gions; 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 Government'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 Na tional Development Plan (R -SNDP) considers agriculture, including 
livestock and fishery, to be one of the main stepping 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 assure s 
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. However, the se ctor 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 facilitate creation of an enabling environment.  
4.9.  In 2012, the NAP was revised. It will be implemented from 2012 to 2030, with the aim of 
building a "competitive and diversified agricultural 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 Internation al (2013).  
2 Ministry of Agriculture and Livestock (2013).  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  improvement of agricultural input and product markets; 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 formulation 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 implementation in agriculture include the University 
of Zambia, the ministry in charge of sci ence and technology, and the National Science and 
Technology Council.  
Table 4.1 List of selected laws regulating agriculture in Zambia  
No.  Legal instrument  Purpose  
1.  Plant Breeder's Right Act No. 18 of 
2007 Protection of plant breeders' rights and registration 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 development of fisheries and a 
precautionary approach in fisheries management, conservation, 
utilization and development;  
 Establishment of fisheries management areas and fisheries 
managemen t 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 the manufacture, processing, 
importation and sale of agricultur al fertilizer;  
 Minimum standards of effectiveness 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 stocks and other agricultural 
assets;  
 Registration of charges;  
 Certification of wa rehouses;  
 Issuance and negotiations of warehouse receipts  
7. Dairy Industry Development Act 
No. 22 of 2010   Aims to develop an efficient and self -sustaining dairy industry 
that will effectively contribute towards poverty alleviation, 
household food securit y 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 dair y 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 ginning 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 Statistics 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   Regula tion 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/Rev.1  • Zambia  
 
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  No.  Legal instrument  Purpose  
14. Tobacco Act No. 13 of 1994   Regulation of the production, export, import, packing an d 
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 identification 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 t he 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 -products, 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 training programmes for veterinary 
and veterinary par a-professionals  
Source:  Ministry of Agriculture and Livestock 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 season. 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 maiz e 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 t he 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, g overnment spending on FISP, in absolute value, followed a 
positive trend until 2012; in 2013, the Government dec ided 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 mark et access for rural -based smallholder farmers by 
maintaining a sustainable national strategic food reserve. It s responsibility is mainly to administer 
(constitution, maintenance, and offload ing) the strategic food reserves; and engage in marketing 
facilitation, development and management of the national storage facilities. Currently, the main 
agricultural commodit ies 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 
proce ss 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 offload s part of its strategic reserves 
and embarks on various crops sale programmes destined mainly for grain p rocessors 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 l ocally and regionally.  WT/TPR/S/ 340/Rev.1  • 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 beneficia ry processors and communities.  
4.18.  The FRA also facilitates marketing for smallholders (those operating less than five hectares) 
by opening several buying points relatively close to their production sites. The farmers  must 
comply with  a number of product qual ity 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 minim um 
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 dire ct intervention and control by g overnment agencies and 
institutions. According to the authorit ies, the presence of the FRA in remote rural areas has 
contributed to the development of the private sector 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 land s 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 under 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 leasehold tenure. Leasehold tenure ma y 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 obtaini ng the approval of the local authority.  
4.23.  Before state land can be bought and a title 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 areas, 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 agricultu re 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 ra tes apply to selected products such as cocoa, tea, beverages, 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, mil k, 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/Rev.1  • Zambia  
 
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  4.26.  During the review period, Zambia notified to the WTO that it did  not subsidize its ex ports 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 frame work 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, responsible 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 hav e 
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 , 
Euphorbi a, 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 people, 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 Netherlands, 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 agricultur al 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 quali ty 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  diversif ication of  income, provide s 
employment for rural populations, and s erves as precautionary saving. Livestock often forms a 
major capital reserve of farming households, and contribute s 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.  
                                               
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/Rev.1  • Zambia  
 
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  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  
 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 Zambia n 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 favo urable conditions for freshwater fisheries. The c ountry 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 service 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 intr oduction  of permanently closed areas as sanctuaries and breeding grounds for 
commercially important species;  and 
 A complete ban on  the use of certain  destructive fishing methods such as the forcefully 
driving of fish into set nets, use of  explosives, use o f 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 contributes to about 5.2% of Zambia's GDP. The tota l 
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 t otal growing stock of the forests and 
the potential for reducing emission from the forests. 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 ind ustries, 
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 and trade. Wood and wood product exports have 
also been significant.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  4.38.  The country has a new National Forestry Policy since 2014. It aims to reduce deforestation 
and fores t degradation. It is also focused on ensuring increased forest cover and enhanced carbon 
stocks through integrated participatory forest management, improved law enforcement and private 
sector investment.  
4.39.  The sub-sector  faces several challenges, including l ow 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 authorit ies, the new policy will explore appropriate approaches to 
develop ing value addition and sustainable resource management.  
4.2  Mining and Energy  
4.2.1   Overview  
4.41.  The mining sector accounted for a bout 10% of Zambia's GDP in 2015  and employed 
80,000  people in  2013. Furthermore, the sector accounts 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 constr aints, 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 in vestment 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 Development is responsible for the mining policy in 
Zambia. During the review period, the main legislation regulating the sector (the Mines and 
Minerals Development Act, 2008) was reviewed and replaced by the Mines and Minerals 
Development (Amendmen t) 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; provide s for 
safety, health and environmental protection in mining operations; and provide s 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 right, mineral processing licence, or gold p anning 
certificate granted u nder the Act. In addition, written 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 r ights under the Act. However, 
artisanal mining can only be undertaken by a citizen 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 se rved" principle. 
Applications for exploration licen ces are made to the Director of Mining Cadastre. The Mining 
                                               
6 Zambia Development Agency online information, "Minin g Sector Profile". Viewed at: 
http://www.zda.org.zm/?q=content/mining -sector . WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Licensing Committee considers the applications and grants the licen ces. However, where mineral 
potential for an area is known, the Minister may l icense the area through a bidding process. He 
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 o ther matter relevant for the 
purpose of the Act. The Technical Committee makes recommendations to the Mining Licensing 
Committee wh ich is the ultimate granting authority.  
4.50.  There are two types of mining rights: exploration and mining licen ces. The re 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: artisanal , 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 km2 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 private companies. However, the Government retains 
minority interests in most of the large copper projects throug h 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 large-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), Konk ola, 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 -
Austr alia/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/Rev.1  • 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 Quant um Minerals 
Limited  Canada -Australia  
Lubambe Copper Mine Limited  Chililabombwe  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 Zambia n authorities.  
4.53.  Average tariff protection for mining and quarry ing 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 during 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 o f 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 proje ct, which comprises five WT/TPR/S/ 340/Rev.1  • 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 project in 2011. The licences give the company the 
exclusive rights to carry out mining o perations 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 the Sentinel deposit. Initially, the project is 
expect ed to produce 150,000 tonnes of copper in concentrate  annual ly, 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 prospect 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 Kako zhi 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, and to submit an updated estimate of the Nama 
project's copper -sulphide mineral reserves and r esources 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 suspe nded some of it s 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 fa bricators 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 Luangwa Rift Val ley. 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 technique, 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 natio nal consumption of petroleum products increased from 752,959 tonnes in 
2010 to 1.17 million tonnes in 2014. The state-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 purchase 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 refin ery 
encounter ed 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 farm, through a 1,710 km pipeline. The pipeline is 
                                               
7 Zambia Extractive Industries Transparency Initiative (2014).  WT/TPR/S/ 340/Rev.1  • 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 charge 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 licenc e is related to compliance with a 
list of technical standards defined by the ERB.  
4.67.  When determining wholesale and pump prices for each cargo of feedstock and finished 
petroleum products, the ERB uses the so -called Cost Plus Model, which is based on cost rec overy 
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 terminal where the pr oduct 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  Approved 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 petr ol, 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 rei mburse 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 L usaka ) 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/Rev.1  • Zambia  
 
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  4.2.2.2.2   Other energy minerals  
Uranium  
4.69.  Uranium exploitation remain s 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 Resources 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 Luangwa and Luano -Lukusashi Valleys and in the 
eastern part of th e 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 pow er 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 under the jurisdiction of the 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, an d 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 distribution and eight for manufacturing, supply, 
installation and maintenance of solar en ergy systems). 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 ta riffs  
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 c harge/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. Maxi mum 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/Rev.1  • 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/kV A/ 
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 c harge  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 20 14, 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 the electricity busine ss. Although ZESCO continue s 
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 Consolidated 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 ZESCO and supplies it to the mines. In addition, 
North Western Energy Company (NWEC) supp lies 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 l ocated 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 hydro 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 
follow s: 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 accounts for less than 10% of the country's GDP. The 
sector i s 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 l ed 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/Rev.1  • 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 -specific investment  incentives (Section 3). All core 
manufacturing activities in Zambia are undertaken by the private sector.  
4.80.  Manufacturing suffer s from weak external competitiveness due to, inter alia , the high costs 
of doing business in Zambia, fuelled by a cumbersome lic ensing 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 quantities and qualities tha t 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 qu ality infrastructure in order to ensure that Zambia n products are 
accepted internationally. The average tariff rate in manufacturing stood at 12.5% in 2016.  
4.82.  The Vision 2030, the National Development Plans (currently implementing the R -SNDP) and 
the Commer cial, Trade and Industrial (CTI) Policy 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, touris m, 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 inadeq uate 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 not 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 trend . 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 rail ways, roads, 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  
Authori ty (TAZARA), jointly owned by Zambia and Tanzania, 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 pr eviously 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 (RSZ) , 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 mining 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 Converted Schedule of Specific Commitments ", 
24 January 2003.  WT/TPR/S/ 340/Rev.1  • 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 liberaliz ed 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 ton nes in 2011 to 0 .09 million 
tonnes in 2014  and ZRL's freight traffic  dropped from 1.8 million ton nes 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 priva te 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 evident 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 in to nine categories : 
trunk (3,088  km), main road (3,691  km), district 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 coordinat ing 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 co nstruction, 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 
classifica tion 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 account s 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 (Pro Flight Zambia) and 11 non -Zambian  
carriers  (Air Botswana, Air Namibia, Air Zimbabwe, Emirates, Ethiopian Airlines, Fastjet, 
Kenya  Airways, Martinair, RwandAir, South African Airways and TAAG) providing scheduled 
services to and from  12destinations : Addis A baba, Amsterdam AMS (cargo/freight o nly), 
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  – Kennet h 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/Rev.1  • Zambia  
 
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  4.97.  Zambia is a signatory to the Yam oussoukro 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, i ncluding one open skies treaty with the 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 a uthorities, 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, e conomically sustainable, and efficient civil aviation system.  
4.99.  The Zambian National Airport s Corporation Limited (NACL) is responsible for management, 
air navigation services, maintenance and development of the four international airports; and the 
Departme nt 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 Ai r Services Training Institute was established in 1968 to ensure  the human 
resource s required for the Zambian civil aviation industry.  
4.4.2   Telecommunications  
4.101.   Telecommunications ha s seen positive and significant development over the last decade, 
with reforms tha t have opened the market to new entrants. The sub-sector  is governed by the 
national ICT Policy of 2006, which consists of three 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 the establishment of a new institutional and legal 
framework. In addition, the country's international telecommunications gatew ay 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 infor mation 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 Ser vices Act of 2009 provides for the regulation 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 p rovides for the 
development of a safe, secure and effective environment 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 IC T to declare certain services 
as reserve d 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 licen ce 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 share s of 45.5%, 40.1% and 
14.9% respectively. Market entry into the telecommunications market is open. The Government 
provides guidance through the reg ulator 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/Rev.1  • Zambia  
 
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  4.108.   Interconnection fees are determine d 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 , with a penetration rate of 39.0% ; and 38,316 fixed 
internet user s, 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 Za mbia, 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 Za mbian 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 comprise s a designated national postal operator (Zambia 
Postal Services Corporation – ZAMPOST) with the exclusive right to provide  reserved service s. 
Private postal and courier operators are licensed to supply unreserved services in concurrence with 
ZAMPOST . 
4.112.   Unres erved services includ e 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 whic h 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 o f the postal financial service s landscape.  
4.114.   The Zambia Information and Communications Technology Authority (ZICTA) is mandated 
by the Postal Services Act of 2009, to ensure  that all Zambians, regardless of their geographic 
location in the country, have ac cess 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 and investment in the postal sector for t he benefit 
of consumers, service providers and other stakeholders . 
4.115.   The Government has embarked on an electronic governance programme that aim s 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 wh o 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 other credit institutions  
4.117.   The Bank of Zambia (BoZ) is mandated through 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 amended, 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/Rev.1  • Zambia  
 
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  organizati on 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 financial projections and forecasts for a minimum of 
three years an d 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 an d 
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 owned9, nine we re locally owned private banks, and two  were jointly 
owned by the Zambian Government  and the Indian 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 mill ion, 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 share and performance indicators, as at 
31 December 2014  
Bank  Percentage 
of ass ets %  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/Rev.1  • 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 popu lation 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; establish ing a Deposit Insurance Protection 
Scheme; mobile banking; and a series of measures to facilitate financial participation for t he 
benefit of the population.   
4.122.   Interest rates are market determined and are influenced by changes in the Bank of Zambia 
Policy Rate.  
4.4.3.2   Insurance  
4.123.   The Insurance Act No. 2 7 of 1997, as amended, 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 Authori ty (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, a s 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 o f 
the top operators in both the gener al 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%Chart 4. [Zambia]   Insurance sector in Zambia, 2014
2) Long -term insurance market share
Information provided by Zambian authorities. Source:
 
Source:  Information provided by the Zambia n authorities.  
4.126.   The industry had the following players as at 2014: two state-owned reinsurance 
companies, two  reinsurance brokers, 22 general 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 n ot contain  any foreign equity restriction s. 
However, according to the authorities, the proposed Insurance Bill has included a provision that 
may restrict foreign equity to 70%. The current paid -up capital share requirements for insurance 
and reinsurance co mpanies 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/Rev.1  • Zambia  
 
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  4.127.   All general insurance premiums are standard -rated for value added tax (VAT) purposes, 
with a VAT ra te of 16% applied. In addition, since 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 are 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 Zamb ia. 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 t raffic 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 industry 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 infrastructure 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 abou t 35% of Southern Africa' s total natural water resource s, 
and "wildlife protected areas " occupying about 10% of the country 's total land area. Zambia is 
home to the Victoria Falls, a UNESCO World Heritage Site. However, the tourism potential remains 
largel y 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) oversees all portfolio functions and operations of 
the country 's tourism and c ultural 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 minim um 
standards for tourism enterprises, as well as carrying 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 example,  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 3 0,000  jobs in 2012 to 300,000  jobs in 2016.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  4.138.   According to the authorities, foreign participation is encouraged. Foreign -owned 
enterprises are required to have a programme whereby foreign staff  are replaced by  Zambian staff  
after three years of training.  
4.139.   The main incentives provided in the tourism 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/Rev.1  • Zambia  
 
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CUTS International (2013), An investigation into Zambia's agriculture development framework and 
its impaact on smallholder farmers , March. Viewed at: http://www.cuts -
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 WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  5  APPEN DIX TABLES  
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 p etroleum 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 Part s 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 WT/TPR/S/ 340/Rev.1  • Zambia  
 
- 78 - 
 
   2008  2009  2010  2011  2012  2013  2014  
 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/Rev.1  • Zambia  
 
- 79 - 
 
  Table A1. 2 Merchandise exports by product group, 2008 -14 
(US$ million and %)  
 2008  2009  2010  2011  2012  2013  2014  
Total (US$ milli on) 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 flavo ur/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; al loys; 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/titanium/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/Rev.1  • 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/Rev.1  • Zambia  
 
- 81 - 
 
  Table A1. 4 Merchandise exports 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/Rev.1  • Zambia  
 
- 82 - 
 
  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; s tarches; 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/Rev.1  • 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 an d resinoids; 
perfumery, cosmetic 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 art ificial 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/Rev.1  • 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; ba sketware 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 fi bres 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 croche ted 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 tex tile 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 umbre llas, 
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/Rev.1  • 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 me tals, 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 arti cles 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 o f 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 (incl uding 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/Rev.1  • 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 rat es was taken into account for the calculations.  
Source:  WTO Secretariat calculations, based on data provided by the Zambian authorities.  WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  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 conc entrates, including 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 and 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 concentrate s  
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 slag), 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 sludg es 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/Rev.1  • Zambia  
 
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  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 extraction of arsenic or those metals or for 
the manufacture of their chemical compounds  10% 
2620.91.00  Slag, ash and residues containing antimony, beryllium, cadmium, 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, in cluding seaweed ash (kelp)  10% 
7201.10.00  Non-alloy pig iron containing by weight 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 copper (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 sc rap ** 
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 ( colombiu m) and rhenium  ** 
8113.00.00  Cermet waste and scrap  ** 
44.01  Fuel wood, in logs, in bullets, in twigs, in faggots, or in similar forms; wood 
in chips or particles; sawdust and wood waste and scrap, whether or not 
agglomerated in logs, briquettes, pellets  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 stak es of wood, pointed but not 
sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or 
otherwise worked, suitable for the manufacture of walking sticks, 
umbrellas, tool handles or the like; chipwood and the like  40% 
44.05  Wood wool; wood flou r 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 those obtained by slicing laminated wood), 
for plywood or for similar lamin ated 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 (tong ued, 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/Rev.1  • Zambia  
 
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  HS code  Product description  Export duty 
rate 
44.10  Particle board, oriented strand board (OSB) and similar board of wood or 
other  ligneous materials, whether 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 a nd 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 pro vided by the  Zambia Revenue Authority  (ZRA), and the Customs and Excise Act 
(amendment No. 18 of 2015).  
 WT/TPR/S/ 340/Rev.1  • Zambia  
 
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  Table A3. 3 List of priority sectors  
Sectors  Details  
Manufacturing  Manufacturing activities located in a MFEZ, an industri al park, or a rural area  
Construction and establishment of infrastructure, excluding renovation, expansion and 
refurbishment  
Education  Construction of education 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 esta blishment of theme parks  
 Construction and establishment of art galleries  
 Construction and establishment of theatres  
 Construction and establishment of large retail complex es containing a variety of ten or more 
stores, restaurants or other business est ablishments housed in a series of connected or 
adjacent buildings or in a single large building  
Housing  Development of 50 or more houses erected or maintained under one management or control 
on land developed specifically for the siting of such houses in  accordance with a 
comprehensive plan which provides for the laying 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 processing and refinery plants for bio -fuel 
 Construction of petroleum refineries  
 Construction of pipelines  
 Construction of rural filli ng 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). 
__________