RESTRICTED  
  
WT/TPR/G/340  
17 May 2016  
(16-2682)  Page: 1/13  
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW 
REPORT BY 
ZAMBIA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Zambia 
is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trad e Policy Review Body on Zambia. WT/TPR/G/340 • Zambia 
 
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  Contents 
1   INTROD UCTION  .......................................................................................................... 3  
2   ECONOMIC DE VELOPMENTS ........................................................................................ 3  
2.1   Macroeconomic Developments ..................................................................................... 3  
2.2   Performance of Major Sectors ...................................................................................... 4  
2.2.1   Agriculture ............................................................................................................. 4  
2.2.2   Mining ................................................................................................................... 5  
2.2.3   Manuf acturi ng ........................................................................................................ 6 
2.2.4   Services .............................................................................................................. .. 7 
2.2.4.1   Financial Services ................................................................................................ 7  
2.2.4.2   Tourism ............................................................................................................. . 7 
2.2.4.3   Transport ............................................................................................................ 7  
2.2.4.4   Comm unications .................................................................................................. 8  
2.2.4.5   Energy .............................................................................................................. . 9 
3   TRADE DEVELOPM ENTS AND POLICY........................................................................... 9  
3.1   Laws and Regula tions Govern ing Trade ........................................................................ 10 
3.2   Investment Measures ................................................................................................ 11 
4   TRADE ARRA NGEMENTS ............................................................................................ 11  
4.1   Regional Tr ade Arrangements..................................................................................... 11 
4.1.1   SADC .................................................................................................................. . 11 
4.1.2   COMESA ............................................................................................................... 11 
4.1.3   SADC-EAC-COMESA Tripartite Framework ................................................................. 12 
4.2   Multilateral Trade Arrangements ................................................................................. 12 
4.2.1   Trade relations with other partners ........................................................................... 12 
4.2.2   Trade relations wi th the Europe an Union ................................................................... 13 
4.2.3   Trade relations with th e United States  of America ....................................................... 13 
4.2.4   Trade relations with developed country partners ......................................................... 13 
4.2.5   Trade relations with developing country partners ........................................................ 13 
5   CONCLUSIONS ........................................................................................................... 13  
 
 WT/TPR/G/340 • Zambia 
 
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  1  INTRODUCTION 
1.1.  Zambia's economic policies are directed  at creating an enabling environment that is 
supportive of private sector as an engine of gr owth and sustainable development. The major policy 
thrust is economic diversification and production of value added products for inclusive growth 
through employment and wealth creation. Ther efore, interventions are multi-sectoral and 
multi-pronged with a view to addressing both external and internal factors affecting the Zambian economy. Key among them include macro-economic stability, low inflation, infrastructure 
development, promoting access to social amenities, encouraging Foreign Direct Investment, and 
promoting access to markets and capital finance as well as promoting efficiency, effectiveness and transparency in the use of national resources.  
1.2.  During the review period, Government programmes continued to be implemented through 
the Sixth National Development Plan (2011-2015)  and the Revised Sixth National Development 
Plan (R-SNDP) 2013-2016 which are anchored to the country's Vision 2030 of becoming a 
"prosperous middle-income country by 2030 ". The R-SNDP focuses on public capital 
investments that have a bias towards rural development and job creation.  
1.3.  In line with the R-SNDP, Zambia has continued to maintain a trade policy aimed at enhancing 
productivity and competitiveness of Zambian products in both the domestic and international 
markets. Zambia is currently in the process of developing the Seventh National Plan, which will 
take effect at the expiry of the R-SNDP. To this end, Zambia will continue to pursue initiatives at both regional and multilateral levels as part of her economic foreign policy.  
1.4.  The Private Sector Development Reform Programme (PSDRP II) was the main vehicle used in 
the period under review to drive Zambia's Reform Agenda towards improving the business 
environment and reducing the cost of doing busi ness. The implementation of the Private Sector 
Development Reform Programme resulted in the elimination of unnecessary licenses and tedious 
business licensing procedures.  
1.5.  In terms of market access, the Governme nt secured markets for Zambian products through 
deeper regional integration under the COMESA and SADC frameworks.  
1.6.  Zambia is also a beneficiary of EU's Everything But Arms (EBA) Initiative, the United States' 
African Growth and Opportunity Act and other Generalised System of Preference schemes 
maintained by developed countries and prefer ential schemes maintained by a number of 
developing countries such as China and India.  
1.7.  Zambia is engaged in negotiations at multilateral level under the World Trade Organisation 
(WTO) and is negotiating with the European Union under the Eastern and Southern African configuration to conclude an Economic Partnership Agreement in line with the Cotonou Agreement. 
The country is also engaged in negotiations under the COMESA SADC East African Community 
(EAC) tripartite initiative, which resulted in the launch of the Tripartite Free Trade Area in June 2015 and is currently participating in negotiations to establish the Continental Free Trade 
Area under the African Union by 2017. 
2  ECONOMIC DEVELOPMENTS 2.1  Macroeconomic Developments  2.1.  The Zambian economy has performed relatively well over the past six years with an average 
real GDP growth recorded at 6.5%. This was mainly driven by good performance in agriculture  
output, positive growth in the transport, storage and communications, and construction sectors. The macroeconomic environment was generally stable evidenced by generally low fiscal deficits, 
single digit inflation, and a relatively stable exchange rate thereby creating a conducive investment 
and business climate.  
2.2.  The country experienced single digit in flation between 2009 and 2014. The annual overall 
inflation rate was 7.1% at end December 2013, lower than the 7.3% at end December 2012 on 
account of a decline in staple food prices. As at end-December 2015, the inflation rate rose to 21.1%. The higher inflation was mainly a result of  the effects of the sharp depreciation of the WT/TPR/G/340 • Zambia 
 
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  Kwacha in the third quarter of 2015. The curren cy depreciation was partly due to the global 
economic slowdown and poor performance of the commodity prices on the international market 
coupled with the increased production costs caused by low electricity supply.   
2.3.  Inflation is expected to remain high particul arly during the first half of 2016, but will decline 
from the third quarter. It is projected that inflation will close the year at around 15%. Over the 
medium term, inflation is expected to further decline and remain at a single digit level, once the exchange rate stabilizes, fiscal deficit reduces and the electricity supply situation improves. 
2.4.  Debt sustainability remains a key objective for the Government, despite the sharp 
depreciation of the Kwacha, Zambia's debt ratios remain within internationally acceptable thresholds. Government is mindful of the need to maintain debt sustainability to safeguard macroeconomic stability. Total debt as a percentage of GDP stood at 28% in 2013. External debt 
stood at US$3.1 billion 2013 or 13.7% of GDP, whilst domestic debt stood at K 17.6 billion or 
approximately 14% of GDP External and domestic debt levels remained below their international thresholds of 40% and 25% respectively.  
2.5.  Zambia's external debt as at end-December, 2015 stood at US$6.4 billion. This represents 
38.7% of GDP, a figure below the internationally accepted threshold of 40%. When domestic debt is included, the ratio of total public debt to GDP is 52.7% which is below the international 
threshold of 56%. 
2.6.  Looking ahead, Government will continue to  undertake periodic Debt Sustainability Analysis 
(DSA) to establish the sustainability of the country 's debt and the public will be kept informed 
about the debt situation in line with the provisions of the new Constitution.   
2.7.  Government will continue to consolidate the macroeconomic gains to ensure sustained and 
meaningful economic development. The Government will, therefore, intensify efforts towards fiscal 
consolidation and accelerate the pace of diversification of the economy.  
2.2  Performance of Major Sectors 
2.2.1  Agriculture 2.8.  Government continued to implement the Agri culture Policy (2004-2015) in order to facilitate 
and support the development of a sustainable and co mpetitive agricultural sector that assures food 
security at national and household levels and maximize the sector's contribution to Gross Domestic Product (GDP). 
2.9.  Between 2009 and 2012, the sector gr ew by an average of 7.0%, exceeding the 
Comprehensive Africa Agriculture Development Programme (CAADP) target of 6.0%. In addition, 
the contribution of the Sector to Gross Domestic Product (GDP) averaged 18.5% between 2009 and 2012 mainly driven by significant growth in the crop and livestock sub-sectors which had 
grown at a combined rate of over 13.0% during the same period. 
2.10.  The performance of the agriculture sector was positive at 6.5% in 2014 compared to 
negative 7.4% in 2013. This was supported by an increase in area planted for all major crops, 
coupled with a rise in yield rates. The relatively good rainfall pattern and general increase in 
investments in the sector also contributed to the positive outturn.Consistent with the positive performance, there was an overall increase in the food surplus to 1,277,102 Mt in 2014 compared 
to 896,677 the previous year.  
2.11.  With more than 50.0% of the employed popu lation in the Agriculture Sector, growth in the 
sector is critical for achieving inclusive growth and poverty reduction. To attain meaningful transformation of the sector, there is need to address significant challenges in the agriculture 
sector. The sector has not effectively utilized research and development, farm mechanisation, 
science and technology and ICT to increase yields. The sector is also yet to fully maximise the comparative advantages of different ecological zone s in the country as well as access and utilizing 
production and market information. Poor storage, inadequate irrigation and other infrastructure 
challenges have resulted in post-harvest wastag es and over-reliance on rain-fed agriculture. WT/TPR/G/340 • Zambia 
 
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  2.12.  In order to address these challenges, Government will continue promoting investment in the 
agriculture sector. In addition, measures are being undertaken to increase area under irrigation, increase area planted through development of farm blocks, enhance productivity through expansion and decentralisation of research and extension services, promote the utilisation of 
improved seed varieties and other improved agricultural technologies, and promote farm 
mechanisation. 
2.2.2  Mining 
2.13.  Zambia's economic growth has for many years been driven by developments in the mining 
sector. The sector remains Zambia's largest  export earner. 
2.14.  On average, output in the mining sector grew at rate of 7.8% per annum over the last 
20 years. In 2009 the sector grew by 33.2% due to an increase in copper production mainly as a 
result of new entrants.  
2.15.  In 2011, however, the sector contracted sharply by 5.2% due to a number of challenges, 
including the declining prices of copper and commodities on the international market. More 
recently in 2014, the sector recorded a negative growth rate of 6.9% attributed to low prices, 
operational challenges and prolonged maintenance shutdowns at some mines and low grade ore and accumulated concentrates.  
2.16.  The vision for the mining sector in the country's long term development plan is to have a 
well-organized private sector led mineral resource exploration and exploitation that contributes to sustainable social economic development by 2030. To achieve this, Government will put in place 
measures to improve regulation, supervision an d enforcement of statutory commitments in the 
sector, strengthen tracking of potential investors and improve the efficiency of the system of 
logging, dissemination of information on available plots for mining and recording of commercial mining activities.  
2.17.  Mining remains a priority growth sector notwithstanding the desire for diversification from 
over dependency on mining. Over the period 2013-16, the country's objective as per the revised six National Development Plan is the completion of the revision of legislation on mining, petroleum 
and explosives. These revisions are aimed at facilitating mineral diversification away from 
dependency on copper and cobalt to nickel, gold , manganese, iron and uranium as well as other 
precious stones. The revision will also increase  exploration activities and ensure sustainable 
production and management of mineral resources.  
2.18.  In order to encourage orderly mining and investment in the gemstone sector, the 
Government has introduced the concept of amalgamation. This is one way of facilitating mineral diversification away from over dependence on copp er. This exercise of amalgamation of gemstones 
mining plot is aimed at removing any possible overlaps, providing reasonable working space for 
the miners over large space, improving the accuracy  of data at the Ministry of Mines and Minerals 
Development, attracting investments due to the la rge size of the plots and improving productivity 
of the sector. 
2.19.  The Ministry of Mines and Minerals Develo pment in consultation with private sector and 
other key stakeholders implements the Mineral Resource Development Policy of 2013 which  puts 
forth measures for the creation of a sustainable and orderly mining industry that contributes to the 
economic development of Zambia. The policy focuses on attracting local and foreign investment in 
the sector for the sustainable exploration and expl oitation of mineral resources, integrating the 
mining sector in the domestic economy and ensuri ng acceptable health, safety and environmental 
protection standards.  
2.20.  The Mines and Minerals Development Act No. 11 of 2015 repeals and replaces the Mines and 
Minerals Development Act No. 7 of 2008 and prov ides for safety, health and environmental 
protection in mining operations and for the esta blishment of the Mining Appeals Tribunal. The Act 
also provides guidelines for mining and non-mining rights, exploration and mining licences, mineral pressing licenses, gold panning certificates, mineral trading, import and export permits, authorisation for radioactive minerals and mineral analysis among others.  WT/TPR/G/340 • Zambia 
 
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  2.2.3  Manufacturing 
2.21.  Government's goal for the manufacturing sector is to develop a diversified and competitive 
sector, whose growth is underpinned by production of value added products for both the domestic and export markets. In the last six years, the manufacturing sector contributed about 11% of the 
country's Gross Domestic Product (GDP) and has b een growing at an average annual rate of 3%. 
The manufacturing sector comprises of the following sub sectors: food, beverages and Tobacco; Textile, Clothing and Leather Products; Wood and Wood Products; Paper and Paper Products; 
Chemical, Rubber and Plastic Products; Non-Metallic and Mineral Product; Basic Metal Products 
Fabricated Metal Products and other products. 
2.22.  Growth in the sector is largely driven by the agro processing (food and beverages), textiles 
and leather subsectors. Secondary processing of metals is a growing subsector. The smelting and 
refining of copper has led to the manufacturing of finished metal products in the country. 
Fertilizers, chemicals, explosives and construction materials such as cement are also produced in the sector. Other activities include wood products and paper products. 
2.23.  Zambia's manufacturing sector's contri bution to GDP between 2010 and 2014, averaged 
7.7% with the highest contribution being 7.8% in 2012 and the lowest being 7.5 in 2014. The sector recorded the highest growth of 8.0% in 2011 and then dropped to 7.2%, 4.5% and 2.3% in 
2012, 2013, and 2014 respectively. Despite the marginal decline in contribution to GDP, the sector 
has been growing. 
2.24.  During the review period, the manufactured exports accounted for an average of 84% of the 
total export value of non-traditional exports, of which 80% were copper related. The main 
destinations for the manufactured exports were the SADC/COMESA region and the 
OECD countries, mainly the EU.  
2.25.  The SADC region, dominated by DRC, Malawi, Zimbabwe and RSA accounted for 
approximately 80% of all of Zambia's manufactured exports while the remaining 20% was shared 
by the EU, USA, Canada, Kenya and Japan.  
2.26.  The contribution of manufactured Non Traditional Exports (NTE's) was mainly from Cement, 
copper wire, cane molasses and electric cables and Sugar. The growth in NTE signals the potential 
to significantly diversify Zambian exports particularly into the region. 
2.27.  Government through the Private Sector Development Reform Programme II (PSDRP II) 
continued to implement targeted business environment reforms. These reforms include business 
licencing, labour, trade expansion. This aims to improve competitiveness of the economy through 
investment, productivity, business expansion and employment.  
2.28.  As a result, Zambia moved up eleven places in the 2014 Global Ease of Doing Business (DB) 
index. Zambia's rank on the Doing Business index stood at 83 from 94 in the previous year. The 
country is also Zambia ranked 8
th among African countries, 7th among Sub-Saharan Africa 
countries and fourth on both SADC and COMESA in terms of competitiveness.  
2.29.  The focus in the Manufacturing Sector is to continue to expand the industrial base and 
increase value addition, facilitate private sector development and investment, promote the growth and development of innovative and competitive Micro, Small and Medium Enterprises (MSMEs), 
and develop rural based industrial enterprises in line with the National Development Plan. 
2.30.  Industrial expansion will be facilitated through investment in the Multi-Facility Economic 
Zones (MFEZ) at Chambishi, Lusaka South, Lusaka East, and Lumwana.  
2.31.  To promote the MSME sub-sector, key strategies that will be employed include 
entrepreneurship training and development, technological skills development and on-farm 
agro-processing training, establishment of business incubation centres and industrial clusters, and establishment of business linkages between MSMEs and multinational corporations. WT/TPR/G/340 • Zambia 
 
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  2.2.4  Services 
2.32.  The services sector continued to play an im portant role in promoting growth by contributing 
over 60% to GDP over the review period. The ma jor sources of the growth were in transport, 
storage, communication, tourism, financial services, construction and in wholesale and retail trade.  
2.2.4.1  Financial Services 
2.33.  The Government continued to implement reforms under the Financial Sector Development 
Plan focusing on financial inclusion. In this regard, Government will continue to pursue reform 
measures directed at addressing weaknesses in the financial sector to improve market 
infrastructure, increase competition and increase access to finance. Access to financial services in rural areas will be increased within the framewor k of the Rural Finance Programme. In this regard, 
the expansion in rural banking services will be promoted through various financial institutions. Key 
among these will be the National Savings and Credit Bank which will facilitate access to affordable 
financing to the un-banked population particularly rural entrepreneurs. 
2.34.  In terms of performance, the overall perf ormance and condition of the bank and non-bank 
financial institutions (NBFIs) sectors was satisfactory. This assessment was on account of high 
capital adequacy ratios, satisfactory asset quality, earnings performance and liquidity condition. With regard to the recapitalisation of commercia l banks, 15 banks had complied with the revised 
minimum capital adequacy requirements, while 4 banks were granted special approval for 
recapitalisation plans within specified time frames as at 2014.  
2.2.4.2  Tourism 2.35.  The tourism sector (the restaurants, bars and hotels) continued to record positive growth 
during the period under review. The sector also recorded higher tourist arrivals and entries into 
national parks. 
2.36.  The tourism sector grew by 9.6% in 2010 compared to a contraction of 13.4% in 2009. This 
positive performance in 2010 was mainly on accoun t of the relative global economic recovery and 
increased investment in tourism infrastructure. Th e sector grew by 7.0% in 2011 and slowed down 
to 2.1% in 2012. The slowdown was as a result of lower tourist arrivals mainly attributed to the 
weak global economy performance. In 2013, the sector grew by 2.2% and 4% in 2014.  
2.37.  To sustain growth in the sector, Government  will continue to develop and rehabilitate key 
infrastructure such as access roads to tourist sites, airports and cultural centres. The sector has in place the Tourism Policy of 2015 and the Draft W ildlife Policy of 2016 premised on government's 
commitment to the Convention on Biological Diversity and World Conservation Strategy to guide 
its operations. These policy directions will continue to promote tourism for economic growth, poverty alleviation and preservation of the country's heritage.  
2.2.4.3  Transport 
2.38.  Transport serves as a central delivery mechanism for quality socio-economic development in 
any country.  
2.39.  During the period under review, the Government focused on addressing critical areas that 
are core to promoting efficiency in the sector, such as road infrastructure development as well as rail and air networks. In 2012, the link Zambia 8000 and the pave Zambia 2000 projects were launched with a view to transforming Zambia from a landlocked to a land linked country. The 
sector also addressed other aspects of the network such as axle loads, weighbridge construction 
and rehabilitation, emergency repairs, road safety matters as well as promotion of capacity building for local road authorities and contractors.  
2.40.  With regards to air transport, Government through National Airport Corporation limited 
ensured optimum operations at the four (4) international airports, namely Kenneth Kaunda, Harry Mwanga Nkumbula, Simon Mwansa Kapwepwe  and Mfuwe International airports. This was 
achieved through continued infrastructure development and maintenance programme. WT/TPR/G/340 • Zambia 
 
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  Government prioritised aviation infrastructure maintenance and upgrade as key to national 
development.  
2.41.  The Maritime and Inland Water ways subsector focused on the provision of public maritime 
infrastructure in six harbours, including Mpulungu, Mongu, Samfya, Siavonga and Mweru. The 
main focus is to support the development of the fisheries sub-sector, easy movement across water 
borders, and promoting tourism.  
2.42.  Government will continue to focus on developing an integrated, reliable and efficient 
transport system to leverage Zambia's central location to ensure that 25-35% of all cargo 
transport south of the equator is processed through Zambia by 2020. The focus will also include the development of transport corridors. Therefor e, development of sound policy in the roads, 
railway, air and marine and inland waterways subsec tor will be key to achieving this objective.  
2.43.  Further, the Ministry of Transport and Co mmunications will continue to develop transport 
corridors, in collaboration with relevant Ministries such as Works and Supply and Commerce, Trade and Industry. 
2.2.4.4  Communications 
2.44.  The Zambia telecommunication sector has seen positive and significant development over 
the last decade, with reforms that opened the market to new entrants. Zambia's information 
communication and technology and telecommunication sector activities are governed by the 
national ICT Policy of 2006 which is premised on th ree core thematic areas and thirteen pillars. 
The three core areas are capacity building, a comp etitive and efficient ICT sector and an effective 
legal and regulatory framework.  
2.45.  In 2009, the Zambian Government enacted new legislation to enforce the principles and 
objectives of the National ICT Policy aimed at establishing a new institutional, legal and regulatory environment. The Government also liberalised the country's international telecommunications 
gateway in order to promote competition and foreign investment in the sector and reduce the cost 
of communications. 
2.46.  During the period under review, the sector was characterised by three mobile network 
operators namely MTN, AIRTEL and ZAMTEL with market shares of 45.5%, 40.1% and 14.9% 
respectively. Market entry into the telecommunications market is open.  
2.47.  The postal subsector in Zambia comprises of a Designated National Postal Operator (Zambia 
Postal Services Corporation – ZAMPOST) with the exclusive right to operate in a reserved and an 
unreserved areas. Private postal and courier oper ators operate in a liberalised and competitive 
environment. Unreserved Services such as post ing of all letters, postcards, printed matter and 
small parcels weighing between 1kg and 30Kg and courier services can be offered by any licensed 
operator including ZAMPOST. 
2.48.  The structure of postal services in Zambia includes postal financial services. These services 
include traditional money transfer services which have evolved from the basic Money Orders to 
electronic platforms such as ZAMPOST's "SwiftCa sh" service. There are also a number of private 
players in the money transfer service, including mobile money (Airtel), Zoona and Shoprite. To ensure universal access to postal services, the Postal Services Act provides for the Regulation of tariffs and empowers the Authority, subject to the approval of the Minister, and in consultation 
with licensees, to determine the fees and charges payable for postal services.  
2.49.  The Zambia Information and Communications Technology Authority (ZICTA) is mandated by 
the Postal Services Act Number of 2009, to en sure that all Zambians, regardless of their 
geographic location in the country, have access to a range of postal and courier services that are 
affordable and of an acceptable quality (Univers al Access to Postal and Courier Services). The 
Authority under the Postal services Act has a specific regulatory duty to stimulate and foster 
growth and investment in the postal sector for the benefit of consumers, service providers and 
other stakeholders. WT/TPR/G/340 • Zambia 
 
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  2.50.  The Government has embarked on an electronic Governance programme that is aimed at 
enhancing transparency, accountability, efficiency an d effectiveness in the delivery of services. The 
role out of the programme will also ultimately contribute to the ease of doing business in Zambia. 
2.51.  Notably the Government through ZICTA has 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 actual installation of street name signage and house numbers in collaboration with the 
respective local authorities who have the legal mandate under the Local Government Act to install 
and maintain such infrastructure in their respective districts.  
2.2.4.5  Energy 2.52.  Energy is a major catalyst for growth and development in all sectors of the economy. 
A thriving Energy Sector is, therefore, key to  achieving sustainable economic development in 
Zambia. During the period under review, the perfor mance of the energy sector, particularly in the 
electricity and petroleum sub-sector was positive. This was on account of increased electricity 
generation and supply of petroleum products. Electricity generation in 2014 increased by 1.9% to 
14,050,395 Megawatt hours (Mwh) from 13,782,036 Mwh in 2013. This was mainly attributed to the additional installed capacity of 360 Mega watts from Kariba North Bank Extension.  
2.53.  Electricity is currently being generated by three major power stations, namely Kariba Dam 
North Power Station, Kafue Gorge Power Station and Victoria Falls Power Station. The country has an estimated hydropower capacity of 6,000 MW. On ly about 27% (1, 640 MW) of the total capacity 
has been installed. 
2.54.  Furthermore, there has been increased demand for electricity because of the recent real 
growth. There has been deficit in power especially after 2007 leading to insecurity and an unreliable power supply which has disrupted productive activities and has adversely affected 
production and tends to push the cost of production. 
2.55.  Government is alive to the negative effect s of the electricity deficit that the country is 
experiencing which has resulted in load shedding. This is not just an inconvenience but has real 
cost to the economy in terms of loss of pr oduction and, therefore, lower incomes.  
2.56.  A number of measures have been put in place to cushion the impact of the power shortage 
in the short term, such as, importation of emergency power. Further, Government will continue to encourage private sector investment in electricity generation and ensure that investors get a fair 
return on their investments, electricity tariffs w ill continue to be adjusted to make them cost 
reflective. 
3  TRADE DEVELOPMENTS AND POLICY 
3.1.  The Ministry of Commerce, Trade and Industry is Zambia's principal government institution 
tasked with the responsibility of administering national trade policy in consultation with other government departments and private sector bodi es. The Ministry's interventions are currently 
guided by the Commercial, Trade and Industrial Policy (2009), the National Quality Policy (2011), 
the Intellectual Property Policy, the Competition an d Consumer Protection Policy, the Revised Sixth 
(6
th) National Development Plan, the Vision 2030 and other sectoral policies and strategies.  
3.2.  During the period under review, the majo r focus of policy interventions included, export 
promotion, investment promotion and trade facilitation as well as diversification, enhancing 
domestic trade and competition, and enhancing market access for Zambian products and services. The specific policy objectives are:  
 To maintain an open economy with liberalized import and export regime that 
supports industrial development; 
 To encourage the production of exportable  products and continue the process of 
diversifying the export base; 
 To support and encourage exports of value added goods;  WT/TPR/G/340 • Zambia 
 
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   To seek new markets and strengthen Zambia's trading ties with regional and other 
international markets; 
 To ensure efficient customs administration and fair trade practices and reduce 
poverty through sustainable economic growth; 
 To address barriers to trade; 
 Trade facilitation to ensure smooth flow of goods and services. 
 
3.3.  With regard to trade facilitation, Zambia continued to implement reforms at border crossings 
including implementation of One Stop Border Post  and simplified trade regimes for small traders, 
as well as other initiatives aimed at improving flow of goods and services.  
3.4.  Zambia's trade performance during the last six years has seen an improvement in exports 
and investment. The Country's overall trade maintained a positive balance during the review 
period, amounting to US$1.45 billion in 2012, US$2.21 in 2011 and US$2.7 in 2010. Exports stood 
at US$9.6 billion in 2014 out of which US$2.4 billion were Non Traditional Exports (NTEs). In 2013, NTEs increased to US$3.5 billion. However, the NTEs in 2015 reflected a deficit amounting to 
US$1.88 billion. 
3.5.  Key Non Traditional Export products comprised mainly Agriculture commodities, 
Agro-Processed products and manufactured goods. Imports have been dominated by petroleum products, industrial vehicles, equipment and machinery.  
3.6.  Zambia remains committed to creating a co nductive environment for trade. In this regard, 
Government will continue to promote and facilitate trade to optimize efficient allocation of the scarce resources. This will entail mainstreamin g trade into the various policies and sector 
strategies as outlined in the National Plan.  
3.1  Laws and Regulations Governing Trade 3.7.  Zambia has continued to pursue reforms designed to improve and promote economic 
development by reducing the cost of doing busine ss. Economic diversification is being driven by 
fiscal interventions as well as various policy and strategic interventions to address constraints of doing business.  
3.8.  Zambia has been making efforts to impr ove its business registration process, through 
measures such as the establishment of the following online systems: 
 (eVisa) at the Zambia Department of Immigration (ZDI) which allows visitors to 
apply for visas online;  
 Tax Online system that allows taxpayers to register for tax and file returns 
electronically;  
 Integrated Land Management and Information system (ZILMIS) to reduce the 
period required to register property;  
 Online Business name search and registration at PACRA;  
 e-registry which makes it earlier to find business licensing information;  
 
3.9.  In addition, the Government set up small claims court and automation of court rooms 
including the commercial court with the aim of expediting dispute settlement.  
3.10.  The Government is linking the systems of the agencies operating in the one stop shop by 
introducing the one-stop-shop integrated system (OSSIS), automating the construction permitting and single business levy systems at the Lusaka City Council, establishing a system for delivering 
integrated public services through self-service kiosks located in post offices, and establishment of 
an electronic single window for trade (eSingle wi ndow) which will link all the trade agencies using 
the Zambia Revenue Authority (ZRA)'s ASYCUDA WORLD system. 
3.11.  Zambia has also been making efforts to simplify its business-licensing regime. In 2009, 
Zambia launched a Business Licensing Reform Programme (BLRP) under the second phase of the Private Sector Development Reform Programme (PSDRP II). The goal of the PSDRP II was to 
promote and facilitate the development of a competitive business environment in Zambia to WT/TPR/G/340 • Zambia 
 
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  contribute to job and wealth creation. The BLRP seeks to achieve this mainly by making the 
licensing regime simpler, transparent, and to focus only on necessary regulation process.  
3.12.  As a result by 2014, 84 Acts were reviewed and drafted of which 69 were enacted into law 
with a total of 113 licenses eliminated (representing 66% of the target), some were being 
amalgamated and other being reclassified into levies for example 38 municipal license being 
converted into a single business levy (SBL) to be paid over the counter at local authorities. This has resulted in 26.56% savings in compliance cost of about K 594.94 million. 183 licenses have 
been uploaded onto the e-registry (63% of the target).  
3.13.  To safeguard the Business Licensing Reform s, Government enacted the Business Regulatory 
Act (2015), which has establishment the Business Regulatory Review Agency (BRRA) within the 
Ministry of Commerce, Trade and Industry (MCTI). The BRRA administers an efficient, cost 
effective and accessible business licensing system with all proposed laws and licenses, which have 
an impact on business operations in the country, would Abe subjected to a rigorous regulatory impact assessment (RIA) to assess the impact of the laws and licenses. 
3.2  Investment Measures 
3.14.  Zambian continued to implement investment measures under the Zambia Development 
Agency (ZDA) which was established under Act No. 11 of 2006. 
3.15.  The ZDA is responsible for fostering economic growth and development in Zambia through 
promoting trade and investment and an efficient,  effective and coordinated private sector led 
economic development strategy.  
3.16.  Government through ZDA continued to undertake a number of activities to promote 
investment through provision of fiscal and non-fiscal incentives, establishment of Multi-Facility 
Economic Zones (MFEZs), the development of Small and Medium Enterprises (SMEs) as well as the promotion of skills development, productive investment and increased trade. 
4  TRADE ARRANGEMENTS  
4.1  Regional Trade Arrangements 4.1.  Zambia maintains a liberal trade regime with nearly all tariffs eliminated on a reciprocal basis 
on trade taking place within the framework of the SADC and COMESA Free Trade Areas (FTAs). 
Zambia has continued to pursue initiatives directed  at reducing barriers to trade, including through 
her participation in the tripartite online non-tariff barriers monitoring mechanism. Zambia is also actively implementing measures to simplify procedures for cross border traders, through 
COMESA's Simplified Trade Regime and the Wo rld Bank's Cross Border Trade Charter. 
4.2.  Additionally, Zambia is participating in negotiations under the Tripartite Free Trade Area 
(TFTA) and the Continental Free Trade Area (CFTA) as part of national efforts to expand markets 
and to enhance benefits from regional integration. Zambia has also concluded bilateral trade 
agreements with Angola and the Democratic Republic of Congo.  
4.1.1  SADC 
4.3.  The SADC region is increasingly an important market for Zambia's non-traditional exports 
and a source of imports, with South Africa as a dominant trading partner. Zambia's major exports to the SADC region include Maize, tobacco, cotton lint, cotton seed and Copper wire. Imports constitute mainly semi and finished products, including capital goods.Overall performance in terms 
of trade balance has been negative between 2010 and 2015 with 2014 recording a negative trade 
balance of K 14.5 billion compared to K 9.4 billion recorded in 2010. 
4.1.2  COMESA 
4.4.  Countries within COMESA have increasingly become important trading partners as a result of 
the liberal trade policy regime adopted under this Regional Economic Community. Zambia's export WT/TPR/G/340 • Zambia 
 
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  trade to the COMESA region increased from K 3.1 billion recorded in 2010 to K 12.4 billion by 
2014.  
4.5.  The main sources of Zambia's imports under COMESA include Congo DR, Zimbabwe and 
Kenya and are dominated by consumer goods.  
4.6.  The main exports include electricity, cement, maize seed and sulphuric acid. The main 
destination markets are Congo DR. Zimbabwe, Malawi, Kenya and Mauritius.  
4.1.3  SADC-EAC-COMESA Tripartite Framework 
4.7.  Following the October, 2008 decision by the Heads of State and Government from the 
SADC-EAC-COMESA Regional Economic Communities to implement measures aimed at 
harmonizing trade arrangements and programmes related to infrastructure development, movement of people and industrial development, Zambia has been actively participating in 
negotiations to establish the Tripartite Free Trade Area. These negotiations were launched in 2011 
and by 2015, the Heads of State and Government  had launched the Tripartite Free Trade Area, 
which encompass 26 countries with a population of over 625 million people and COMESA, and a 
combined Gross Domestic Product of US$1.3 trillio n. The TFTA Agreement will come into effect 
once fourteen participating countries ratify the TFTA Agreement. Currently, 16 out of the 26 countries have signed the Agreement and negotiations have continued to finalise work related 
to market access offers, rules of origin and trade remedies.  
4.2  Multilateral Trade Arrangements  4.8.  Zambia continued to play an active role in  both the negotiating sessions and regular work of 
the WTO. In 2010, Zambia coordinated the engage ment of the Least Developed Country group at 
the WTO, which resulted in the continued visibility  of the LDC group in the negotiations under the 
Doha Development Agenda. Zambia remained an ac tive player in the work of the WTO African 
Group as well as the African Caribbean and the Pacific group.  
4.9.   Zambia is among a the few African countries that have ratified the WTO Trade Facilitation 
Agreement and deposited a notification on all thr ee categories of the Trade Facilitation Agreement 
in accordance with the flexibilities accorded to developing and least developed countries. Zambia 
has since established national implementation structures including the National Committee on 
Trade Facilitation and the First Steering Committee meeting has since been held. 
4.10.  Zambia was also privileged to chair the Committee on Safeguards (2012–13) and the 
Committee on Sanitary and Phytosanitary measures (2014-15) and was elected to serve on the 
Standards and Trade Development Facility Comm ittee as one of the developing countries 
representatives. 
4.11.  Zambia looks forward to the conclusion of negotiations under the Doha Development 
Agenda with outcomes that uphold the centrality of development for tangible benefits and the 
effective integration of least developed countries into the multilateral trading system. Upholding multilateralism to the rule making process remains a critical factor to the effective functioning of 
the WTO as the sole multilateral organisation tasked with setting global trade rules. 
4.12.  Zambia also wishes to stress the importance of continued technical assistance and capacity 
building under the regular work of the WTO and through initiatives such as the Enhanced Integrated Framework and the Aid for Trade.  
4.2.1  Trade relations with other partners 
4.13.  In addition to regional and multilateral arrangements, Zambia maintains trade relations with 
other partners through either unilateral or reciprocal trade preferences. Notable of these include 
arrangements maintained with the European Union,  the United States of America, Canada, Japan, 
China and India, among others. WT/TPR/G/340 • Zambia 
 
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  4.2.2  Trade relations with the European Union 
4.14.  The main framework governing Zambia's trade with the European Union is the 
Everything-but-Arms Initiative. Zambia is also pu rsuing negotiations to conclude an Economic 
Partnership Agreement with the European Union under the Eastern and Southern African (ESA) 
configuration. 
4.2.3  Trade relations with the United States of America 4.15.  Zambia is among beneficiary African countries under the U.S. African Growth and 
Opportunity Act (AGOA). The renewal of AGOA on 29 June, 2015 by the United State 
Administration until 30 September 2025, provides  additional impetus for beneficiary African 
countries, including Zambia to enhance trade with the U.S. Other initiatives undertaken to enhance 
trade relations with the U.S. include building frameworks and strategies for expanded trade.  
4.2.4  Trade relations with developed country partners  
4.16.  As a least developed country, Zambia is a beneficiary of the system of preferences 
maintained by major developed country partners such as Canada, Japan, Australia, New Zealand 
and Switzerland, among others. 
4.2.5  Trade relations with developing country partners 
4.17.  Zambia is also a beneficiary to preferential market access schemes maintained by 
developing country partners. Notable of these include the initiatives maintained by China and 
India. 
4.18.  With regard to the Chinese Initiative,  the Government of the Peoples Republic of China 
granted special preferential tariff treatment to ce rtain goods originated from Zambia and exported 
to China referred to as the China Special Preferential Tariff Treatment SPT as of January 2005.  
4.19.  India launched its  Duty-free Tariff Preference (DFTP) scheme in April 2008 which became 
fully operational in October 2012. The scheme – until its revision in August 2014 – offered 
duty-free access to LDC exports on 85% of Indian tariff lines, and a margin of preference on an 
additional 9% of tariff lines; the remaining 6%  of tariff lines were excluded. Following the 
scheme's revision, duty concession was extended to 98% of tariff lines in April 2014.  
4.20.  To date, 29 LDCs including Zambia have joined the scheme. Twenty-two (22) out of the 
29 are from sub-Saharan Africa.  
4.21.  Zambia is a beneficiary under the duty free tariff preference (DFTP) scheme by India for 
least developed countries (LDCs). The objective of DFTP Scheme for LDCs is to grant tariff 
preferences on the exports of the LDCs on imports to India.  
5  CONCLUSIONS 5.1.  Government will continue to implement programmes and initiatives directed at attaining 
inclusive growth and job creation.  
5.2.  Further, Government will continue to pay particular attention to macroeconomic stability, 
diversification of the economy and support to SMEs, engagement with cooperating partners and 
promotion of investment. 
5.3.  With regard to Trade Policy, Zambia will continue to use bilateral, regional and multilateral 
frameworks to support the growth and development of the Zambian economy.  
 
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