Zambia WT/TPR/S/219/Rev.1 
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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. Trade policy has remained substantially uncha nged since Zambia undertook a comprehensive 
reform programme in the 1990s, removing exchange  controls, reducing import duties, eliminating 
import and export licence requirements, abolishing e xport bans and introducing a number of export 
incentives, removing subsidies, and decontrolling pri ces.  According to the World Bank's Trade Tariff 
Restrictiveness Index, Zambia's trade regime is more open than that of an average sub-Saharan 
African or low-income country.1  The simple average applied MFN tariff of 13.4% has dropped only 
slightly since the late 1990s, but Zambia continues to work toward lower tr ade barriers, especially 
through the COMESA and SADC free-trade areas.  Th e large gap between the average applied rate of 
13.4% and the bound rate of 105.7%, and the absence of bindings for over 83% of tariff lines, creates a degree of unpredictability for traders in the sense  that there is scope for the authorities to raise 
tariffs, although, with one notable exception, applie d tariffs have not been increased during the review 
period according to the authorities.
2  Ad valorem  tariffs account for 97.8% of all tariff lines, which 
lends a high degree of transparency to the tariff, although for the remaining 2.2% (up from 1.3% in 
2002) ad valorem equivalents are not available and tend to  conceal relatively high rates.   
2. In terms of customs operations, Zambia remains one of the world's least efficient countries 
according to the World Bank  classification  scheme.3  It ranks 153rd  out of 181countries, due to the  
higher number of required documents, consid erably longer processing times for exports, and 
relatively high per container expor t and import costs compared with those of an average sub-Saharan 
African or low-income country.  One of the main t echnical assistance efforts to improve this situation 
is the U.S. Millennium Challenge  Corporation 2006-2008 programme4, to promote economic 
governance by reducing barriers to trade and inv estment through:  building capacity in modern 
customs tecghniques and integrated border control; st rengthening the capacity of SPS units to provide 
services for local and export trade;  and strengthening  the standardization, certification, and inspection 
units of the Zambia Bureau of Standards.   
3. In order to not to impede exports, Zambia h as duty drawback schemes and it is possible to 
manufacture under bond in a bonded warehouse.  Apart from exemptions, the most important of which apply to mining inputs, not much use is be ing made of these facilities.  The duty drawback 
schemes suffer from delays in processing claims and refunding tariffs, and the Government frequently 
runs out of funds to finance these refunds.   
4. The authorities have abandoned efforts to estab lish export processing zones, instead focusing 
on establishing multi-facility economic zones (MFEZs) which offer a wider set of incentives to both 
exporting and non-exporting enterprises. With the r ecent replacement of the Investment Act by the 
Zambia Development Agency (ZDA) Act, invest ment incentives based on tax holidays were 
introduced in early 2007 for companies operating in MFEZs and a long list of priority sectors.  While 
additional investment is needed, international ex perience demonstrates that investors give lower 
priority to tax incentives than to a comp etitive investment climate generally.    
                                                     
 
1 World Bank (2008e). 
2 The customs duty on cellular phone handsets was increased from 5% to 15% in the 2009 Budget to 
encourage local production of handsets. 
3 World Bank (2008a),  p. 2. 
4 The objective of the programme was to reduce the number of days required to export products from 
60 to 30 and the number of days required to import products from 62 to 30. WT/TPR/S/219/Rev.1 Trade Policy Review 
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5. In 2008, Zambia enacted the Public Procurem ent Act, which repealed the Zambia National 
Tender Board Act with the result that the Zambia  Public Procurement Authority has issued new 
thresholds.  Zambia is not a member of the WT O Government Procurement Code.  Since the early 
1990s, the private sector has played a greater role in the national economy, following a privatization 
programme initiated to accelerate the development of the private sector. Prior to privatization, the 
State controlled over 80% of the c ountry’s productive and service-rela ted activities, a share that is 
now seemingly reduced to between 10% and 15% as, according to the authorities,  the bulk of the 
government-owned mining companies  were priva tized.  The Zambia Development Agency (ZDA) 
succeeded the Zambian Privatization Agency in Janua ry 2007 as the country’s privatization vehicle.  
Plans to privatize energy and fixed-line telecommunication services may encounter problems as 
productivity in both subsectors requires urgent improvement. 
6. The authorities are drawing up a national polic y on intellectual property, with outside 
assistance, and have stepped up efforts to co mbat trade in pirated and counterfeit goods. 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures  
(a) Administration   
7. Customs administration in Zambia is under the responsibility of the Customs and Excise 
Department of the Zambia Revenue Authority (Z RA).  The department has undergone significant 
changes in the context of a Customs Reform and Modernization Program linked to the 
implementation of ASYCUDA++.5  The Customs and Excise Department is responsible under the 
Customs and Excise Act, Chapter 322, for the follow ing:  collection of customs and excise duties and 
other taxes;  licensing and management of register ed excise manufacturers; licensing and control of 
bonded warehouses;  regulation and cont rol of imports and exports;  facilitation of trade, travel and 
movement of goods;  carrying out of controls on behalf of other government ministries; provision of 
trade statistics;  and  protection of society. 
8. An importer wishing to challenge a customs-rela ted determination can appeal to the Revenue 
Appeals Tribunal, established under the Revenue Appeals Tribunal Act of 1998.  Appeals are 
accepted on issues related to customs valuation, custom s classification or a refusal to license.  Appeals 
to the Tribunal’s ruling can be made to the High Co urt;  final appeal is to the Supreme Court.  
(b) Import documentation and procedures  
9. Under Section 32 of the Customs and Excise Act, all imports must be cleared at the point of 
entry through approved customs-cl earing agents unless the importer is authorized by the ZRA to 
selfclear.  When the entry and relevant supporting documents have been registered and accepted by 
ZRA Customs, taxes are assessed, and a processing fee of K 50,040 is added to cover the costs of the 
ASYCUDA system application, and of Necor, a pr ivate agency that processes  the entry declaration 
(form CE 20).  Customs may call for a physical ex amination or additional documentation to ensure 
that a declaration is correct.  An invoice is issued for immediate paym ent for the goods to be released, 
                                                      
5 Zambia uses UNCTAD's Automated System for Customs Data and Management (ASYCUDA) 
declaration-processing syst em.  The ASYCUDA++ system has recentl y been introduced and provides for 
streamlined customs  clearance procedures.  AYSCUDA ++ also has a risk module that suggests a particular risk 
profile for each shipment:  green – no inspection, yellow – inspection of documents, blue – post audit, red – 
physical and document inspections.  When fully implemented, the ASYCUDA national system is to be fully linked to the COMESA regional centre. Zambia WT/TPR/S/219/Rev.1 
 Page 31 
 
 
and, when all formalities are concluded and paym ent has been made, Customs will issue a release 
order for the goods. 
10. According to the authorities, customs clearan ce is usually accomplished within a few hours, 
providing that all documents are in order.  Subject to documents being in order, the ZRA states that 
clearance can be achieved within 8 hours for majo r clients who use credit account facilities to pay 
their taxes;  however, a random check (carried out in the context of the DTIS) at the Chirundu border 
revealed waiting times of 2-4 days.  At Lusaka air port, it has been reported that shipment clearance 
may take up to 4 days. 
(c) Customs valuation  
11. Zambia applies tariffs on the c.i.f. value of im ports.  According to the authorities, the dutiable 
value of goods is always considered to be not less than the f.o.b. price of the goods to the importer.  
Since 2000, the principal methods used for custom s valuation have been based on the transaction 
value, i.e. the price actually paid or payable when  a good is sold for export to Zambia.  Where the 
transaction value cannot be ascertained, the price actually paid for similar goods, adjusted for 
differences in cost and charges based on distance and mode of transport, is determined as the 
transaction value.   
12. While ZRA began to implement the WTO method of valuation in 2000, it appears that all the 
transaction values are checked using a central data base of identical/similar goods.  The authorities 
state that, in practice, Customs compares declaratio ns to those for similar goods previously cleared 
and when the difference is large, may query the importer. 
(d) Bonded warehouse facility 
13. Zambia authorizes the use of bonded warehouses and permits the Remova l of Goods in Bond 
(RIB).  RIB allows goods to enter Zambia and rema in in the country for 30 days without the payment 
of taxes;  if goods remain beyond 30 days, taxes ar e to be paid, or the goods are to be assigned to a 
bonded warehouse.  Goods may remain in the bonded warehouse for up to one year.  However, the bonded warehouse facility appears to have been abu sed, with bonded goods le aking into the domestic 
market.
6 
(ii) Tariffs  
14. The customs tariff generated revenue of around  2.6% of GDP between 1996 and 2001, falling 
to 2.2% in 2002, and around 2.1% between 2003 and 2005.  Tariffs are changed on a financial-year basis as part of budgetary delibera tions;  an Act of Parliament is the final authority for tariff 
amendments.  The First Schedule to the Customs a nd Excise Act specifies the structure of Zambia’s 
customs tariff, and establishes four duty rates, 0% , 5%, 15% and 25%.  Zambia’s applied import duty 
rates range from 0% to 5% for raw materials, 15% for intermediate goods, and 25% for final or 
consumption goods.  Goods imports from COMESA partners are duty free on a reciprocal basis.   
                                                     
 
6 RIB seems to facilitate a virtual re-exporting of the goods with false stamps from Customs officers 
proving that the goods made an exit out of Zambia when in  reality they have not.  Confronted with the loss of 
revenues due to the evasion of tax collection ZRA tends to  restrict the permission for RIBs to certain companies 
with good repute and proper financial standing. It also  has classified seven categories of products which could 
by stored in bonded warehouses, like some raw materials, spare parts and capital equipment. Perishable products are no longer allowed to be stored under bond.  See World Bank (2004), p. 39. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 32 
 
 
15. The 2008 tariff is based on HS07 nomenclature and consists of 5,962 lines at the HS eight-
digit level. With the exception of 131 lines b earing alternate tariffs, all other lines have ad valorem  
tariffs.  Products subject to alternate duties, for which AVEs are not available, include butter, wheat 
flour, clear beer, cotton (45 lines), and motor vehicles.  No items are subject to seasonal, specific, 
compound, variable or interim tariffs. 
(a) Applied MFN tariff 
16. Zambia's tariff structure has remained broadl y unchanged since its previous review.  The 
tariff still consists of four rates as indicated above .  A number of goods may be imported into Zambia 
duty free, including medicines, pharmaceuticals, vete rinary, and medical equipment, chemicals in 
bulk, fertilizers, and seeds;  also, duty on productiv e machinery for agriculture and mining is at 0%.  
The 2008 simple average applied MFN tariff wa s 13.4%, the same as in 2002 (Table III.1 and 
Chart III.1). 
Table III.1 
Tariff structure in Zambia, 2002 and 2008 
(Per cent) 
    2002 2008 Final bounda 
1. Bound tariff lines (% of all tariff lines) 16.3 16.6 16.6 
2. Simple average applied rate 13.4 13.4 105.7 
    Agricultural products (HS01-24) 19.6 20.1 122.8 
    Industrial products (HS25-97) 12.5 12.3 62.8 
    WTO agricultural products 18.5 19.1 123.0 
    WTO non-agricultural products 12.7 12.5 41.8 
        Textiles and clothing 18.3 18.1 40.0 
    ISIC 1 - Agriculture, hunting, fishing 18.5 19.1 120.3 
    ISIC 2 – Mining 8.0 8.0 n.a. 
    ISIC 3 – Manufacturing 13.2 13.1 100.4 
        Manufacturing excluding food processing 12.5 12.3 61.0 
    First stage of processing 15.3 15.8 118.8 
    Semi-processed products 8.8 9.0 93.5 
    Fully processed products 16.5 16.1 98.5 
3. Domestic tariff peaks (% of all tariff lines)b 0.0 0.0 0.0 
4. International tariff peaks (% of all tariff lines)c 31.0 31.4 100.0 
5. Overall standard deviati on of tariff rates 9.5 9.6 35.5 
6. Coefficient of variation of tariff rates 0.7 0.7 0.3 
7. Duty-free tariff lines (% of all tariff lines) 20.9 22.1 0.0 
8. Non- ad valorem  tariffs (% of all tariff lines) 1.3 2.2 0.0 
9. Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 1.3 2.2 0.0 
10. Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
n.a. Not applicable. 
a Based on 2008 tariff schedule in HS07 nome nclature.  Calculations are based on 987 bound tariff lines (representing 16.6% of 
 total lines);  100% are bound under the WTO definition of agriculture, only 4.1%  under WTO non-agriculture. 
 Implementation of the U.R. was reached in 1995. 
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: The ad valorem  part of alternate rates were take n into account for the calculations. 
 The 2002 tariff schedule is based on 8-digit HS96 no menclature and consists of 6,041 tariff lines. 
 The 2008 tariff schedule is based on 8-digit HS07 no menclature and consists of 5,963 tariff lines. 
Source:  WTO Secretariat calculations , based on data provided by the Zambian authorities. Zambia WT/TPR/S/219/Rev.1 
 Page 33 
 
 
0.05.010.015.020.025.0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21Per centChart III.1
Average applied MFN tariff rates, by HS section, 2002 and 2008
Calculations include the ad valorem  part of alternate rates.  2002 averages are based on HS96 nomenclature and 2008 on HS07.
WTO Secretariat calculations, based on data provided by the authorities of Zambia.Note:
Source :01   Live animals & products        
02   Vegetable products03   Fats & oils      04   Prepared food, etc.05   Mineral products06   Chemicals & products07   Plastic & rubber
08   Hides & skins09   Wood & articles10   Pulp, paper, etc.11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals and products16   Machinery17   Transport equipment18   Precision instrument19   Arms & ammunition
20   Miscellaneous manuf.21   Works of art, etc.MFN 2002 MFN 2008Average applied rate
2002 and 2008
(13.4% )
 
17. The coefficient of variation of 0.7 indicates continued modest dispersion of tariff rates from 
one category of products to another.  The most co mmon rate of 15% applies to some 32% of tariff 
lines.  Close to two thirds of all lines bear a ta riff rate of either 15% or 25%, while around 22% of 
tariff lines (1,319 lines) are duty free (Chart III.2).  Vi rtually all raw materials and most industrial or 
productive machinery fall within the 0% to 5% tariff categories, and nearly 70% of mining and 
quarrying-related tariff lines attract the 5% tariff rate .  In 2006, the authorities reduced a number of 
tariffs, including on computer parts (from 15% to zero), and inputs used in textile and clothing 
manufacturing. 
18. Agriculture (including hunting, forestry, and fishing) remains the most protected sector, 
followed by manufacturing with applied average MFN tariff rates of 19.1% and 13.1%, respectively.  
The 25% tariff rate applies to a relatively high numbe r of agricultural products.  The average applied 
MFN tariff in the mining and quarrying sector is 8.0% .  When the WTO definition is used, agriculture 
is still the most tariff-protected sector (19.1% on average).  Applied MFN tariffs on WTO defined 
non-agricultural products, including petroleum, average 12.5%.  
19. In aggregate, Zambia's tariff structure shows negative escalation from first-stage processed 
products to semi-finished goods, and positive escalation to finished products (Table III.1).  Positive 
escalation is present notably on:  basic metal industr ies, with average applied MFN tariff rates ranging 
from 5% on first stage processed products to 6.4%  on semi-processed products; and paper, paper 
products, printing and publishing, with average ra tes rising from 5.0% on first-stage processed 
products, to 9.4% on semi-processed products, and 16.8 % on fully processed products (Chart III.3).  WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 34 
 
 
(31.0%)(33.0%)
(20.9%)
(15.1%)(31.4%)(31.9%)
(14.5%)(22.1%)
04008001,2001,6002,0002,400
Duty free 5% 15% 25%MFN 2002 MFN 2008Number of tariff linesChart III.2
Distribution of MFN tariff rates, 2002 and 2008
Tariff rates
Figures in parentheses indicate the share of total lines.  Calculations include the ad valorem  part of alternate rates.  
WTO Secretariat calculations, based on data provided by the authorities of Zambia.Note:
Sourc e:
 n.a.n.a.051015202530
Food,
beverages and
tobaccoTextiles and
leather Wood and 
furniturePaper printing
and publishingChemicals Non-metallic
mineral
productsBasic metals Fabricated
metal products
and machineryOther
manufacturingPer centChart III.3
Tariff escalation by 2-digit ISIC industry, 2008
n.a.
Note:
Source :Not applicable.
Calculations include the ad valorem  part of alternate rates.
WTO Secretariat calculations, based on data provided by the authorities of Zambia.Average applied rate in manufacturing
(13.1%)First stage of processing Semi-processed Fully processed
 
 Zambia WT/TPR/S/219/Rev.1 
 Page 35 
 
 
(b) Bound MFN tariff 
20. Zambia has bound customs duties on 16.6% of all tariff lines, almost unchanged from the 
situation in 2002.  The large gap between the aver age applied rate of 13.4% and the bound rate of 
105.7% and the absence of bindings for over 83% of  tariff lines, create a degree of unpredictability  
for traders in the sense that there is scope for the authorities to rai se tariffs.  However, the authorities 
have stated that applied tariffs have not been incr eased during the review period.  In agriculture (WTO 
definition), all tariffs are bound, almost entirely at the ceiling rate of 123%, with a few exceptions, 
such as wheat, rye, barley, and oats  (45%);  cocoa beans,  cocoa paste, cocoa butter, fat and oil, and 
chocolate and other food preparations containing cocoa (50%);  and cocoa powder, not containing 
added sugar or other sweetening matter (60%).  Tariffs were bound for non-agricultural products, at 
the simple average rate of 41.8%.  Although tariff bindings are always desirable, their practical 
significance in Zambia in constraining future  tariff increases is undermined, as bound rates 
substantially exceed applied tariff levels.  Zambia  has so far made no commitments to reduce these 
ceiling bindings. 
(c) Tariff preferences 
21. Exceptions to MFN tariff treatment include preferential access for members of regional 
trading arrangements in which Zambia participates:   all goods are freely traded between Zambia and 
COMESA members that have met their free-trade area (FTA) commitments.  Tariff preferences are accorded by Zambia to the other COMESA members on a reciprocal basis. By the end of 2006, 13 of 
the 20 members, including Zambia, had removed a ll barriers to trade between themselves, granted 
trade preferences to the COMESA members that ar e not part of the FTA and retained tariffs on 
imports from outside COMESA.  COMESA has now reached an agreement on common external 
tariffs, although some issues with the classification of  products as raw materials or processed products 
remain. 
22. Effective 30 April 2001, Zambia began to impl ement its commitments under the SADC Trade 
Protocol and to grant duty-free access, on a recipr ocal basis, to imports from SADC members.  
Zambia is on target to meet its obligations under the SADC free-trade area, so that 85% of goods from 
the region enter duty free;  tariffs on the remain ing sensitive goods will be phased out by 2012. 
(d) Tariff exemptions 
23. According to the IMF, the total value of im ports exempted from customs duties (as well as 
VAT, excise duties, the fuel levy, and motor vehi cle licences) fell from 35% in 2004 to 21% in 2005 
and 13% in the first nine months of 2006.
7  The most important exemptions are granted to the mining 
sector on the basis that mining output is exported. Th e other main exemptions (new residents' effects, 
goods for diplomatic personnel, and goods for appr oved organizations) are standard exemptions 
granted by a number of countries.  Exemptions on cu stoms duties are more costly, in terms of revenue 
forgone, than those on VAT or excises, accounti ng for 1.9% and 0.8% of GDP in 2004 and 2005 
respectively.  
24. The 2006 ZDA Act introduced special tariff ex emptions for designated priority sectors, 
mostly in the manufacturing sector, including 0% duty rate on all machinery and equipment for 
5 years for enterprises under the ZDA.  A number of import duty exemptions provided for in the context of the 2006 Budget are still in force:  (a) for five years on all machinery, fixtures and 
equipment, tools, motor vehicle parts, motor cycl es and bicycle parts used in the assembly of motor 
vehicles, motor cycles, and bicycles; (b) for five years on inputs used in the textile and clothing 
                                                     
 
7 IMF (2007a), p. 33. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 36 
 
 
industry, such as grey fabrics, machinery, sewi ng threads, sewing machine spares, and trimmings;  
(c) for five years of material used in the manufacture and packaging of cement, and manufacture of roofing sheets;  (d) for five years on machinery and equipment acquired by enterprises that will operate in the proposed MFEZ/priority sector or rura l enterprises;  (e) for computer parts;  and (f) on 
printed paper board used for packaging UHT milk. 
(iii) Other charges affecting imports  
25. Excise and VAT on imports are collected at the border;  the same tax rates levied on imported 
and domestically produced goods.   
26. The 2007 Budget introduced a refundable 3% advance tax on commercia l imports (entered 
into effect on 1 April 2007 and was recently incr eased to 6%), excluding g oods imported for personal 
use.  The measure is intended to broaden the ta x base by capturing unregistered businesses who make 
commercial imports. This is not an impediment to  tax-paying companies on condition that the tax is 
fully credited/refunded promptly, although this ma y not be the case for companies enjoying tax 
holidays.  The authorities have noted that tax-comp lying companies include the advance income tax in 
their returns so that it is reflected as an amount already paid.    
(iv) Rules of origin 
27. Zambia has both preferential and non-preferential ru les of origin.  Preferential rules of origin 
apply under regional trade arrangements to which Za mbia is a signatory.  While COMESA provides 
for four alternative criteria for determining origin , SADC rules of origin are negotiated, in many 
cases, on a product-by-product basis, making them co mplex and varied across products.  In all cases, 
an appropriate certificate of origin, issued by the exporting country must accompany eligible imports.  
For countries covered by more than one agreemen t, an importer has a choice of arrangement under 
which to import the goods. 
28. Under the non-preferential rules of origin specifi ed in Section 73 of the Customs and Excise 
Act (Chapter 322 of the Laws of Zambia), manuf actured goods are considered as originating from 
Zambia if at least 50% of the material is local or value addition is a minimum of 50% of the total cost 
of production.  
(v) Import prohibitions, restrictions, and licensing 
29. The importation of the following is expressly pr ohibited: false and c ounterfeit coins or bank 
notes; indecent, obscene, or objectionable material;  goods manufactured or produced wholly or in 
part by prison labour; pirated a nd counterfeit goods;  and any goods pr ohibited under any other law in 
Zambia, such as the Drug and Psychotropic Act, th e Wildlife Act, and the National Heritage Act for 
Historical Artefacts.  Ivory imports are also banned.  
30. No import licences are required for general importation into Zambia.
8  However, certain 
agricultural goods require an import permit and a san itary and phytosanitary (SPS) certificate prior to 
the order being confirmed with the exporter.  SPS certificates must be obtained in advance and 
included in the shipment documentation;  when the consignment arrives at the port of entry, the 
certificate is examined by the plant inspector at th e border.  The inspector may test samples before 
allowing the products to be released.  Also, certific ation must be obtained for imports of meat and 
poultry (Veterinary Department);  plants, plant part s, plant products, and regulated articles (Makulu 
                                                      
8 In 2004, Zambia notified the WTO that it does not have import licensing procedures and has no 
regulations to that effect (document G/LIC/N1/ZMB/2, 18 February 2004). Zambia WT/TPR/S/219/Rev.1 
 Page 37 
 
 
Research Station);  food and drugs (Ministry of H ealth);  firearms and ammunition (Zambia Police). 
Standard customs declarations are required for imports.  
(vi) Contingency measures  
31. In November 2004, the Customs and Excise Act and the Import Control Acts were amended 
to allow for safeguard measures to be applied.  Th e amendments were drafted with the objective of 
ensuring compatibility with the WTO, COMESA, and SADC agreements, and to address the concerns 
of the private sector, which has been particular ly concerned about unfair competition and cases of 
predatory pricing.  Under COMESA there is pr ovision for measures in the form of anti-dumping 
duties, countervailing duties or QRs sufficient to re duce the flow of imports (to not below the last 
3-year average).  Under the SADC protocol, me mbers may apply anti-dumping measures that are in 
conformity with WTO provisions, or countervailing duties consistent with WTO provisions, to offset 
the effects of subsidies.9 
32. Under the Customs and Excise Regulations, any person whose interests may be harmed by 
imported goods that are being sold at rates belo w that of the country of production may make a 
complaint to the Controller of Customs.  Upon review , if it is established that goods are being dumped 
in Zambia, an anti-dumping duty is levied.  No safe guard measures have been applied since 2004.   
(vii) Government procurement 
33. Government procurement is governed by the Public Procurement Act No. 12 of 2008 and 
associated tender regulations.  The Act is applicab le to all public institutions, including government 
ministries and departments, parastatal and statut ory bodies, and local councils.  The Zambia National 
Tender Board Act of 1982 (chapter 394 of the Laws of Zambia) and associated Tender regulations 
were in force until repealed by the new Act.  Zambia  is not a member of the WTO procurement Code.   
34. The District Tender Committees are authorized to  make simplified bidding (informal tenders) 
for goods, services and works of up to K 500 million.  All government purchases exceeding 
K30 billion for goods, services and works and K10 billion for consulting ser vices, including capital 
expenditures from external assistance, go through th e Zambia Public Procurement Authority. Many 
large projects are funded by multilateral lending ins titutions and bilateral donors, in which case their 
procurement regulations are followed.10 
35. Requests for bids are published in the Zambian Government Gazette and local English 
language daily newspapers.  An eight-week period, from the first announcement in the Gazette,  is 
allowed for international competitive bidding. Bi ds must be submitted in accordance with the 
instructions to bidders.  Tenders are opened in public and price information is disclosed. The legal 
framework provides for local pref erences, where applicable, of 15% for locally manufactured goods 
with at least 40% value-added content;  20% for goods produced in Zambian small businesses;  7.5% 
for local contractors;  and 5% for imported goo ds held in stock by local merchants.    
36. The Public Procurement Act does not have a threshold for international tenders as the 
authorities believed until recently that they could obtain all necessary goods and services primarily 
from Zambian suppliers.  Decisions (by the Contro lling Officers) to invite offers from local or 
international suppliers are based on whether the re quired goods and services could be obtained in 
Zambia.  Mainly due to international agreements  such as the EPAs with the EC and the COMESA 
                                                      
9 Dun and Bradstreet (2006). 
10 According to the authorities, the value of government procurement averaged K 125 billion per 
annum from 2005 to 2007, equivalent to about 0.3%  of GDP;  an estimated 15% was through foreign suppliers. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 38 
 
 
Directive on procurement (which plans to harm onize public procurement systems among members 
states), the Government has begun to review its policy on procurement in terms of integrating 
international and regional procurement thresholds. 
(viii) Import-related operations of state-trading enterprises  
37. In 2007, Zambia notified the WTO that is does not maintain any state trading enterprises in 
accordance with the definition in GATT Article XVII.11 
(ix) Standards and other technical requirements  
38. A key activity for enhancing trade facilitation is  the strengthening of the standardization, 
certification, and inspection units of the Zambia Bur eau of Standards so that they can provide more 
efficient services for importing and exporting, th us ensuring conformity with international and 
regional standards and technical requirements.12  It seems that Zambia does not have the capacity to 
properly test all imported products (for example, th ere is only minimal testi ng on electrical products), 
which provides considerable scope for exporters to fi nd a market for substandard products in Zambia.  
39. The 2005 Diagnostic Trade Integration Study13 highlighted a number of problems in Zambia's 
standards infrastructure. While the Zambia Bureau  of Standards (ZABS) is the main Government 
body responsible for setting, reviewing, monitori ng, and implementing technical standards for all 
industries including agriculture, the Food and Drugs Control Laboratory and the Ministry of Agriculture also set standards, and they are not required to notify the ZABS.  The ZBS maintains a 
comprehensive database of existing standards scatte red across a wide range of legal instruments.  The 
ZABS  was established in 1982 by Act No 22, whic h was later repealed and replaced in 1994 by the 
Standards Act 416. 
40. Zambian standards are to a considerable extent  based on international standards developed by 
international standards-setting bodies such as the In ternational Standards Organization (ISO), and the 
Codex Alimentarius Commission.  Zambia is an affiliate member of the International Electro-
Technical Commission (IEC), and has been a corresponding member of the ISO since 2003 and is 
planning to upgrade this to full membership. Currently, there are around 640 Zambian standards (42 adopted from ISO, 84 from the IEC, 140 from COMESA, and 34 SADC standards).  They cover 
building and construction, food and agriculture, textil es, and chemicals.  ZABS is the selling agent in 
Zambia for foreign and international standard s, such as the International Organization for 
Standardization (ISO) and national standards of many  countries in the world.  ZABS is an observer 
member of ISO, ARSO and IEC.  
41. ZABS formulates various standards and impl ements them through a product certification 
marking scheme:  a manufacturer of a product that meets a Zambian standard may apply to use the Bureau's certification mark under a scheme of superv ision that includes inspection and testing of the 
marked product.  Participation in the certificati on scheme is also open to manufacturers outside of 
Zambia. 
                                                     
 
11 G/STR/N/11/ZMB of 13 September 2007. 
12 According to the 2007 progress report of the Fifth National Development Plan, equipment was 
procured and training provided to enhance the operations of the Zambia Bureau of Standards and the Zambia 
Weights and Measures Agency.  See Ministry of Finance and National Planning (2008), p. 63. 
13 World Bank (2005b), pp. 33-36. Zambia WT/TPR/S/219/Rev.1 
 Page 39 
 
 
42. ZABS also operates a small metrology labor atory (the Zambia Bureau of Standards 
Metrology Laboratory), which offers  calibration services in the fields of mass, length, and pressure.  
The range of tests is limited by availabi lity of standards and testing equipment. 
43. Zambia notified the WTO in 1998 with respect to the adoption of the Code of Good Practice 
and the creation of a WTO/TBT Enquiry Point under the ZABS.  The Enquiry Point has not been 
active because it lacks financial and basic technical  resources. In  2004, the ZABS  notified the WTO 
of its acceptance of the TBT Code of Good Practice.14  Zambia also continues to participate in 
regional programmes aimed at harmonizing standa rds and conformity assessment schemes such as 
those under COMESA and SADC. 
(x) SPS measures 
44. The Ministry of Agriculture and Cooperativ es (MAC) is responsible for control and 
monitoring of animal and plant health in the produc tion, distribution, and supply of raw materials to 
the food-processing sector.  The Ministry of Health deals with other issues relating to food safety and labelling, and administers the Food and Drug Act.  Zambia notified the WTO in 2008 that it had made 
strides in the formation and establishment of a dedicated office for the Enquiry Point
15, in line with  
WTO transparency requirements.  
(a) Animal health 
45. The Department of the Veterinary and Livest ock Development, in the MAC, is the main 
service responsible for the control of animal di seases and the safety of livestock products.  It 
promulgates policies and regulations on animal di seases, develops veterinary inspection procedures, 
and is responsible for inspection and certification of imports and exports of  animal products.  The 
Department has five regional veterinary laborator ies that conduct tests on diseases, and cooperates 
with the National Livestock Epidemiology and In formation Centre, which gathers and processes data 
on animal health and disease status and control.  Za mbia is a net importer of animal products.  Exports 
are mostly confined to day-old chicks and to semi-processed hides and skins. 
(b) Plant health 
46. The Zambia Agriculture Research  Institute is the responsible authority (under the MAC) for 
implementing, monitoring, and controlling plant health policies and issues.  It has four 
divisions/branches among which is the Plant Quaran tine and Phytosanitary Service (PQPS).  Based on 
the Noxious Weeds Act and the Plant Pests and Dis eases Act (Cap. 231), the PQPS is responsible for 
carrying out the functions specified in the International Plant Protection Convention16 (IPPC), and for 
overseeing the agricultural plant safeguarding syst em, including surveillance, inspection, issuing 
phytosanitary certificates for exports, and conducting pest risk analysis.  
47. With the help of the FAO, the Government has prepared a new Plant Protection Bill, which is 
currently undergoing public review and comments a nd is expected to replace Cap. 231.  The main 
aims of the new Act are, inter alia :  to prevent the introduction, and to control the spread, of plant 
                                                      
14 On 4 November 2004, the ZABS  notified acceptance of the WTO TBT Code of Good Practice for 
the preparation, adoption and appreciation of standards. 
15 The WTO Enquiry Point was set up with support from the JITAP project and the Zambia Threshold 
Project, funded by USAID.  See WTO document G/SPS/GEN/836 of 27 March 2008, Information on various 
SPS matters. 
16 Identified in the SPS Agreement as an organiza tion that provides international standards for 
phytosanitary measures implemented by governments to protect their plant resources from harmful pests. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 40 
 
 
pests;  to provide for the protection of plant reso urces;  and to regulate trade in plants and plant 
products.  The proposed new Act is a substantial improvement on the existing legislation as it would 
bring Zambia into line w ith its IPPC obligations. 
(c) Needs assessment  
48. In March 2006, following a request from the MA C, the World Bank conducted a sanitary and 
phytosanitary (SPS) needs assessment in Zambia.17  The objectives were to identify where SPS and 
standards issues were constraining trade and r ecommend areas where further in-depth work was 
required.18  These were:  the functions and performan ce of Plant Quarantine and Phytosanitary 
Services (PQPS);  food safety standards in agro-processing factories and restaurants/hotels;  the 
current state of laboratories supporting the agriculture and food sectors and the plans for future 
investment; and, the demand for establishing a certif ication system for good agricultural practices for 
farmers supplying the high-end of the local horticultu ral market.  The report concludes that Zambia’s 
trade faces relatively few plant health constraints. 
49. The report noted inter alia  that Zambia exports very little fo od (other than sugar) and is a 
large net importer of food.  Its processed food ex ports are directed at neighbouring countries where 
prevailing official and private standards are simila r to those in Zambia.  Zambia’s food trade with 
developed countries is small and d eclining, consisting of a limited vegetable sales to the United 
Kingdom, Holland, Australia, and South Africa, and sales of honey and paprika to a few countries. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures and documentation 
50. Exporters must complete form CE 20, declari ng goods to be exported, this is submitted to 
customs electronically either through Necor (contract ed by ZRA to impute trade data on behalf of 
traders) or directly online if the exporter is linked to Customs' ASYCUDA system.  A hard copy of form CE 20 is also submitted, together with comme rcial invoices, the bill of lading, road manifest, 
and any other commercial documents that will accompan y the goods.  Where relevant, the appropriate 
certificate of origin must also be submitted. Cust oms examines the declaration against the physical 
export, stamps the documents, and releases the goods;  according to the authorities, this process can 
be completed within one hour.  The ZRA carries out inspections on exports as a check against the 
smuggling of proscribed goods, and to obtain in formation for VAT refunds and duty drawbacks.
 19 
(ii) Export taxes  
51. The 2008 Budget encouraged local value addition by introducing an export levy of 15% on 
the export of copper concentrates and cotton seed (sub sequently raised in the 2009 Budget to 20% for 
                                                      
17 World Bank (2006). 
18 The mission concluded that there were only a fe w significant SPS and standards issues constraining 
trade.  However, it identifie d areas where trade might be constrained in the future and recommended that these 
should be evaluated further:  subsequently, a larger mission was organized. 
19 Inspections are carried out by the ZRA to ensure that the content of the Export Declaration Form 
EXD is a correct representation of items being exported and to guard against smuggling of prescribed goods, 
e.g. drugs and those that require permits.  In other cases, the foreign importer may request an inspection.  Time 
taken for inspection depends on the availability of staff, the packaging, and the nature of goods, but generally takes a day, according to the Customs and Excise Department if the consignment is not complex. Zambia WT/TPR/S/219/Rev.1 
 Page 41 
 
 
cotton seed), in recognition of the availab ility of local capacity to process these products.20  An export 
tax also exists on scrap metal, which is consid ered an important input for manufacturing.   
(iii) Export prohibitions, restrictions, and licensing 
52. Export prohibitions apply to certain types of  logs under international agreements, and 
occasionally for grains (during drought years).  There are no general export licensing requirements 
(except for prescribed goods) although certain goods, su ch as fertilizers, live animals, gemstones, and 
firearms, require special export permits.   
(iv) Duty and tax relief 
53. In addition to tariff exemptions, a duty drawback  scheme and a temporary admissions system 
(manufacturing under bond) are meant to provide ex porters with relief on im port duty paid.  In 2002, 
the Government passed the Export Processing Zones ( EPZ) Act to provide incentives for investors in 
export processing zones.  However, implementati on of the EPZ Act was suspended in 2004 because 
of concern about its impact on revenue, and the au thorities have now abandoned efforts to establish 
export processing zones. Instead, they are focusi ng on multi-facility economic zones (MFEZs), which 
offer a wider set of incentives to exporting and non-exporting enterprises. 
(v) Export promotion and finance  
54. The Export Promotion and Market Development Division (EPMD) of the ZDA is responsible 
for promoting the non-traditional sector, which comprises products and services other than 
unprocessed  copper and cobalt and touris m.  The EPMD assists exporters, inter alia,  by facilitating 
technical and financial assistance for export development, providing market intelligence, and 
organizing participation in trade fairs and trade missions. 
55. EPMD provides financial support to the non-trad itional export sector through low interest 
loans under the Zambia Export Development Fund (ZEDEF), an EU-financed export development 
loan fund. Its objective is to assist in the expa nsion of Zambian non-traditional exports. The fund 
succeeded an EU-funded scheme that ran from 2003 to e nd 2007.  According to the authorities, the 
fund will eventually total in excess of US$5  million.21  Beneficiaries currently include horticulture, 
floriculture, wood, leather, organic products, and crocodile industries. 
56. A second EU-funded export development scheme, which covered the period 2002 to 2008 
was the Mining Sector Development Programme (MSDP), a €30 million fund intended to provide 
adequate capital and equipment for mining, downstream processing, and marketing in the 
non-traditional small-scale gemstone mining sector.  The MSDP had its own project office affiliated 
to the Ministry of Finance and National Planni ng and the Ministry of Mines and Minerals 
Development.  Loans were administered by local banks under their own commercial lending 
conditions.  Support was also given for the preparat ion of bankable documents for loan applications, 
and technical assistance and business assistance, including technical advisory services to the non-
traditional mining sector in:  mining techniques, geol ogy, gemstone evaluation, export promotion and 
marketing, business entrepreneurship, mineral pr ocessing and appropriate technology, environmental 
and safety management, and funding access support (linkages, business proposal appraisals).  Some of 
                                                      
20 An export levy generally has the effect of reducing the domestic price below what otherwise would 
be the case.   
21 The loans are disbursed in U.S. dollars for 12- to 24-month periods at the London Inter-bank 
Borrowing Rate (Libor) + 2%.  Borrowers are required to contribute 25% of the project finance and collateral of a value of 50% of the loan amount. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 42 
 
 
the key achievements of the programme include the establishment of a gemstone processing centre 
and an iron ore processing project.   
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Framework for registration and licensing of a business 
57. The main laws defining the framework for registration and licensing of businesses are:  the 
Companies Act (chapter 388), the Registration of Business Names Act (chapter 389), the Trade Licensing Act (chapter 393), and the Zambia Deve lopment Agency (ZDA) Act (which replaced the 
Investment Act). 
58. The Zambian Government has been engaged in  a comprehensive reform of the business 
licensing regime, having recognized that many licensing requirements and practices present a 
significant burden to enterprise growth, wealth, and j ob creation.  In certain sectors, such as tourism, 
the large number of licences that may be required,  the time and the number of different authorities 
involved, and their discretion in the decision-making process, could be significant impediments to foreign investors.
22  Licensing reform forms a core part  of the PSD programme in order to 
substantially reduce the number of licensing requireme nts, make the regime simpler, transparent, and 
focused on legitimate regulatory purposes, as well as to substantially reduce compliance costs.  The 
Business Licensing Reform Committee, mandate d to make recommendations on which licences 
should be eliminated, streamlined, or reclassified, is expected to complete its work in 2009. 
59. According to the World Bank23, the procedures required in order to register a business 
include:  checking the name for uniqueness at PA CRO;  registering the company at PACRO;  
registering with the local ZRA office, direct tax division to obtain a corporate tax number;  filing a 
VAT registration form with ZRA to obtain a VAT ta x number;  and registering with National Pension 
Scheme Authority for Social Security.  
60. The U.S. Millennium Challenge Account (MCA) has provided funding to establish a limited 
network of provincial offices (removing the need for investors outside Lusaka to make the journey to 
the capital), thus decentralizing company registratio n.  Furthermore, MCA assistance has facilitated 
the establishment of the ZDA as a one-stop facility for investors and business people and encouraged 
simplification of the economic regulatory framework. 
61. The World Bank notes that Zambia has simplified business registration in recent years.  It 
reorganized the one-stop shop through process reen gineering and computerization and improved the 
operation of the Zambia Revenue Authority by creating a customer service centre.  Similar 
improvements at the Land Registry office cut the time to register property by almost half. 
Amendments were made to the Income Tax Act a nd Value Added Tax Act to update, strengthen, and 
remove ambiguities in these laws and enhance the eff ectiveness of tax administration.  In addition, the 
withholding tax on savings and deposit accounts was re duced from 25% to 15%.  Overall, Zambia's 
Doing Business rank for 2009 was 100th (out of 181 countries), up from 116th in 2006.  It has 
performed particularly well in the area of starting a business, ranking 71st;  the number of procedures 
required is (6) considerably less than the regional average.   
                                                      
22 A 2004 World Bank-FIAS report identified a number of shortcomings in the procedures to establish 
a business, mainly due to lengthy licensing procedures (Foreign Investment Advisory Service, 2004). 
23 World Bank (2008a),  p. 52. Zambia WT/TPR/S/219/Rev.1 
 Page 43 
 
 
(ii) Taxation 
(a) Overview of tax system 
62. The Income Tax Act, the Customs and Excise Ac t and the Value Added Tax Act are the basic 
laws that cover Zambia’s tax system.   
Indirect taxes 
63. Zambia imposes excise taxes on a traditional ra nge of goods, including soft drinks, alcoholic 
beverages, tobacco products, and pe troleum products. In an effort to improve revenue, recent budgets 
have extended excises to motor vehicles, talk-time on cell phones, and, in 2006, an additional carbon 
tax was levied on motor vehicles.  The only unusua l excise tax in Zambia is an electricity, which 
typically is not subject to excise as it is a basic commodity but is considered an earmarked levy for 
rural electrification.  Most excises are ad valorem and range from 10% for soft drinks to 125% for 
wine.  The base for excises on imported goods is the c.i.f. value plus the import duty. 
64. In addition, a value-added tax (VAT) of 16% (reduced from 17.5% on 1 April 2008) is 
payable on all imports and on locally produced goods  and is levied on the duty-paid value of the 
goods.  VAT is imposed on goods and services provi ded by suppliers with a turnover of over 
K 200 million (about US$55,000) per year.24  Exemptions include agricultural products, health 
services, books, and educational services;  a zero ra te is applied on exports, medical supplies, and 
drugs, and supplies affecting the tourism industry.   VAT is charged on imported goods based on the 
taxable value, which is the value for duty purposes pl us the customs duty and excise tax if applicable.  
Direct taxes 
65. The general corporate tax rate is 35%.  Howeve r, there have been a number of long-standing 
preferential rates and generous allowances for sector s the Government has wished to promote.  For 
example, the agriculture sector enjoys a rate of 15% and successor mining companies to ZCCM have 
paid a concessionary rate of 25%.  Companies listed on the Lusaka Stock Exchange pay 33%, to 
promote financial deepening, in their first year of listing.  Commercial banks are taxed at 40% of their profits above K 250 million (about US$83,500).  Sect ors that do not benefit from special incentive 
schemes remain heavily taxed compared with countr ies in the region.  The ZRA has embarked on a 
modernization project to strengthen the effec tiveness of tax administration (Table AIII.1).
25   
(b) Zambia Development Agency (ZDA) Act 
66. Until 2006, investment tax incentives were pr ovided under the Investment Act (1993), as 
amended in April 1996, and the Small Enterprise Development Act (1996).  The Investment Act, 
which had abolished special incentives such as exemp tions from indirect taxes, was replaced by the 
ZDA Act in 2006.  This brought in a new set of incentives applicable only to investments over US$500,000, licensed by the Zambia Development Ag ency, and operating within a sector designated 
as a priority by the Minister of Commerce, Trad e and Industry.  The priority sectors include:  
floriculture;  production and processing of cotton,  and garments;  manufacturing of engineering 
                                                     
 
24 The sales level for VAT registration seems high and could discourage even medium-sized firms from 
entering the formal sector. 
25 IMF (2008), p. 6, May. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 44 
 
 
products;  and production and processing of raw timbe r.  The list of sectors may be amended by 
statutory instrument.26 
67. Investment incentives based on tax holidays were  reintroduced in early 2007 for companies 
operating in multi-facility economic zones and a l ong list of priority sectors.  While additional 
investment is needed, international experience demons trates that investors give lower priority to tax 
incentives than to a competitive investment climat e characterized by sound economic policies and 
institutions;  political and economic stability; quality infrastructure;  a productive workforce;  a secure 
and stable business environment;  an efficient and responsive government administration;  as well as 
transparent tax rules and administration.27  A recent IMF study on the effective tax burden in Zambia 
did not recommend additional tax incentives, and urge d the Government to take stock of all tax 
incentives and begin reporting them in the budget docume nts, with a view to quantifying the cost and 
streamlining them to broaden the revenue base.28 
(c) Multi-facility economic zones  
68. The ZDA Act also introduced multi-facility economic zones (MFEZs), under which 
developers, operators, a nd tenants benefit from a number of fiscal and non-fiscal allowances.  The 
authorities have abandoned efforts to establish e xport processing zones (EPZs), and are focusing on 
MFEZs which offer a wider set of incentives to ex porting and non-exporting enterprises.  Currently, 
the two MFEZ sites are in Lusaka and Chambishi on the Copperbelt (under construction).  Incentives 
within the MFEZ are available to both Zambian and foreign firms to promote manufacturing, exports, 
technological development, skills transfer, and job cr eation. Incentives are also available to priority 
sectors operating outside MFEZs. 
69. Investment must be at least US$500,000 in a pr iority sector to qualify companies investing 
less than that amount in the MFEZ will benefit from the infrastructure provided in the zones. Incentives available to companies in clude:  (i) 0% tax on dividends declared, for five years from the 
year of first declaration of dividends. Generally , the payment of dividends by Zambian resident 
companies is subject to deduction of withholding tax at 15%;  (ii)  no tax on profits for five years 
from the first year profits are made;  (iii) for years six to eight only 50% of profits will be taxed. and 
for years nine and ten only 75% of profits will be taxed;  (iv) deferment of VAT on machinery and 
equipment, including trucks and specialized motor vehicles imported for investment;  (v) suspension 
of import duty to 0% on raw materials, capita l goods, and machinery, including  trucks.   
(iii) Other incentives 
70. According to the  authorities, once a ZDA investment licence is obtained, a company has 
access to fiscal and non-fiscal in centives. The non-fiscal incentives include facilitation services by the 
ZDA in the acquisition of land, immigration pe rmits, and other secondary licences that may be 
                                                     
 
26 Since 2006, two statutory instruments (SIs) have been issued:  SI 27 (2007) added a number of 
priority sectors in the areas of ICT and health;  and SI 6 (2008) added tourism, processing of agricultural, forest 
and non-ferrous products and a  range of manufacturin g activities including machinery, iron and steel, electrical 
and electronic products, pharmaceuticals,  pulp and paper, textiles, plastics , rubber products, l eather, fertilizer 
and cement. 
 27 A number of studies have come to this basic conclusion.  See Howell et al. (2002).  Vito Tanzi and 
Parthasarathi Shome examined the expe riences of East Asian countries including Taiwan, Korea, and Singapore.  
See Tanzi and Shome (1992).  For a similar conclusion for economies in transition see OECD (1995).  The 
Zambian authorities acknowledged that while the IMF and World Bank contend that incentives never work in 
attracting investment, the majority of  countries grant incentives to investors including developed countries. 
28 IMF (2006). Zambia WT/TPR/S/219/Rev.1 
 Page 45 
 
 
required.  In addition, the Agency may collaborate w ith a foreign direct investor in identifying local 
partners where relevant. 
(iv) Role of state-owned enterprises and privatization 
71. Since the early 1990s, the private sector has pl ayed a greater role in the national economy, 
following a privatization programme that covered a wide range of public enterprises of differing sizes, 
mainly in manufacturing and mining.  Prior to th e privatization programme, the State controlled over 
80% of the country’s productive and service-related activities, a share that is now reduced to between 
10% and 15% according to the authorities, as the bulk of the mining companies owned by the government and other parastatals were privatized.  To date, privatization has been concentrated in 
mining, manufacturing and financial services (Table III.2).  The Zambia Development Agency (ZDA) 
succeeded the Zambian Privatization Agency in January  2007 as the country’s privatization vehicle.   
Table III.2 
Government shares in public enterprises, as of September 2007 
(Per cent) 
Entities  September 2007 
Energy sector   
Indeni Petroleum Products  50  
Tazama Pipelines  60  
Zambia Electricity Supply Corporation  100  
Mining sector   
Kagem Mining  20  
Kariba Minerals  51  
Maamba Collieries 100  
Nitrogen Chemicals of Zambia 100  
Zambia Consolidated Copper Mining Investment Holding 87.6  
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  
NFC Africa Mining 15  
Financial sector   
Development Bank of Zambia 67  
Indo-Zambia Bank Limited 50  
National Savings and Credit Bank 100  
Zambia National Building Society 100  
Zambia National Commercial Bank  51  
Zambia State Insurance Company  100  
Other sectors   
Contract Haulage  100  
Engineering Services Corporation  100  
Medical stores  100  
MOFED (London)  100  
MOFED (Tanzania)  100  
Mpongwe Development  0.05  
Mpulungu Harbour Corporation  100  
Mupepetwe Engineering  100  
Table III.2 (cont'd) WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 46 
 
 
Entities  September 2007 
National Airports Corporation  100  
National Housing Authority  100  
Nganga Farms  23.8  
Tanzania-Zambia Railways  50  
Times of Zambia  100  
Zambia China Mulungushi Textiles of Zambia  40  
Zambia Daily Mail  100  
Zambia Education and Publishing House  100  
Zambia Postal Corporation  100  
Zambia Printing Company  100  
Zambia Railways  100  
Zambia State Lotteries  100  
Zambia Telecommunication  100  
Zamcapital Enterprises  100 
Source:  IMF (2008), IMF Country Report No. 08/30,  Zambia - Statistical Appendix,  Appendix II, p. 40, January.  Viewed 
at:  http://www.imf.org/ext ernal/pubs/ft/scr/2008/cr0830.pdf. 
72. During the 1990s, Zambia opened its doors to foreign investment, reduced government 
intervention in commercial activities, privatized over 260 enterprises, and eliminated many market 
distortions.  The main privatization was that of  Zambia Consolidated Copper Mines in March 2000, 
which effectively ended its drain on state resources and enabled necessary fresh mining investment.  
The Zambia National Commercial Bank (ZANACO) was recently privatized and, according to the 
authorities, the bulk of identified companies have been privatized and the remainder (20) are at 
various stages of processing and consideration.  
73. Some of the companies remaining to be sold are those whose finances are in bad condition or 
those that the Government considers to be in  strategic sectors, including power generation, 
telecommunications, and oil refining, which remain u nder government monopoly control.  As a result, 
these services are inefficient, resultin g recently in an electrical power cr isis that is likely to last for 
years, and regularly recurring fuel shortages.  The plan to privatize energy and fixed-line 
telecommunication services (including Zesco and Za mtel) has stalled although the Government has 
embarked on an asset evaluation of Zamtel, with th e possibility of looking for a strategic partner for 
the telecoms company. 
(v) Competition policy 
74. There is no competition policy per se  in Zambia to enable successful enforcement of 
competition law, which is enshrined in the Compet ition and Fair Trading Act 1994.  This Act is 
enforced by the Zambia Competition Commission w hose role is to prevent abuse of dominant 
position, predatory behaviour, discriminatory pricing,  restrictions on distribution, and collusion.  The 
Commission is an independent body and its decisions  can be appealed against in the High Court.   
According to the authorities, the Commission rarely  ever raises competition concerns on a foreign 
company taking over a local company, where th e foreign company has no presence in Zambia. 
75. Currently the Zambian competition law does not ha ve any set merger notification thresholds, 
meaning that all mergers must be notified to  the Commission before they are effected.29  T h e  
assessment process after notification varies dependi ng on whether the proposed merger would raise 
competition concerns.  Merger tests undertaken by the Commission are on substantial lessening of 
competition and abuse of dominant position of market power, Sections 7(1) and 7(2) of the Act, as 
                                                      
29 Section 8 of the Competition and Fair Trading Act – the Act. Zambia WT/TPR/S/219/Rev.1 
 Page 47 
 
 
well as international precedence.  These tests are based on an assessment of whether the merger may 
lead to the prevention, restriction or distortion of competition to an appreciable extent in Zambia or a 
substantial part of it.   
76. During the period under review (2002-08), the Commission reviewed over 100 merger cases, 
most of which were granted final unconditional au thorization.  About 15 mergers  were granted 
conditional authorization and less than 5 were re jected.  Companies surveyed by UNCTAD agreed 
that the Commission’s past merger  authorizations have shown a good balance between competition 
objectives and the need to promote FDI in Zambia.30  The Commission is of the view that competition 
law cannot be effectively enforced without the support of sector regulators, such as the 
Communications Authority, the Energy Regulatio n Board, and the National Water Supply and 
Sanitation Council.31  
(vi) Protection of intellectual property rights  
(a) Overview 
77. During the period under review Zambia has not am ended its intellectual property legislation, 
which remains essentially as described in its previous Review.32  The Patents Act, Trade Marks Act, 
the Registered Designs Act, and the Copyright and Performance Rights Act provide the legal framework for intellectual property protection.  The Patent Act provides patent protection for a period 
of 16 years, with the possibility of renewal; the Copyright and Perform ance Rights Act and the 
Registered Designs Act provide protection for 50 year s (copyright) and 5 years (registered designs);  
the Trade Marks Act provides exclusive protection, initially for seven years, renewable in 14-year 
blocks thereafter.   
78. However, there are plans to review legislati on now that a new National Intellectual Property 
Policy is nearing completion.
33  The amended IP legislation will include protection for utility models, 
geographical indications, and appella tions of origin and will include amendments to the Patents Act 
extending protection to 20 years (in line with the TRIPS Agreement).  The Trademarks Act will include protection of service marks, which are not cu rrently covered.  The Copyright and Performance 
Rights Act of 1994 is also under review. 
79. Zambia is a member of the World Intellectua l property Organization (WIPO) and has signed 
the 1883 Paris Convention on industrial property and the 1886 Bern Convention on literary and 
artistic works.  It is also a member of the Afri can Regional Industrial Property Organisation (ARIPO), 
which was established to promote ha rmonization of intellectual property laws in the region. Zambia is 
a member of the ARIPO Protocol on Patents and Industrial Designs aimed at pooling and harmonizing 
regional IP administration in the field of patents, utility models, and industrial designs.  As an LDC  
Member of WTO, Zambia has until 2013 to conf orm to TRIPs for patents, and until 2016 for 
pharmaceutical patents.
34  Plans are under way to accede to the WIPO Copyright Treaty (WCT) and 
the WIPO Performance and Phonograms Treaty (WPPT).   
                                                      
30 UNCTAD (2006), p. 30. 
31 Zambia Competition Commission (2006), p. 50. 
32 WTO (2003),  pp. 52-56. 
33 Work on a national IP policy, led by WIPO in cooperation with the authorities, includes a needs 
assessment to determine the compliance of Zambia's national legislation with international intellectual property 
rules in the area of industrial property.  There is currently no national legislation on geographical indications, nor on layout-designs of integrated circuits. 
34 The TRIPS Agreement was drawn up in such a way as to allow member States the flexibility in 
determining certain aspects of national intellectual property legislation.  Furthermore, as a Least Developed Country (LDC) Zambia does not have to apply all of the provisions of the TRIPS Agreement until the WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 48 
 
 
80. The Patents and Companies Registration Office (PACRO) deals with the registration of 
patents, trademarks and industrial designs. PA CRO has offices in Lusaka, Ndola (Copperbelt 
Province) and Livingstone and is decentralizing its operations.  It had received substantial support 
from WIPO with regard to assessment of legislative compliance, IT-infrastructure for patent registry, 
and training for IP office personnel and other officials (e.g. customs and police officials, judges).  
PACRO had also initiated the establishment of an ad hoc committee (comprising ministries, and the 
university and private sectors) to discuss th e development of a national IP policy.  
81. Copyright and related rights are dealt with by the Copyright Unit under the Ministry of 
Information and Broadcasting Services.  The Mi nistry of Science, Technology and Vocational 
Training is revising science and technology policy to include issues related to traditional knowledge.  
(b) Patents 
82. Patent protection is provided under the Patents Act of 1958 and the 1995 Statutory 
Instrument 54.  A patent is obtainable under this  law through either the national procedure or the 
ARIPO procedure.  Many general principles provi ded for under the law are applicable to both 
procedures;  the most notable requirements for pate ntability include that a process or product must be 
novel, not obvious (or must involve an inventive step),  be capable of application in trade or industry, 
and must not be seen to promote immorality or  otherwise be offensive to written laws.   
83. A primary concern for Zambia, given the prolifer ation of premature deaths as a resultant of 
HIV and AIDS, malaria, tuberculosis, and dysen tery is facilitating affordable access to essential 
medicines.  HIV and AIDS-related complications ar e the second principle cause of death in Zambia, 
after malaria.  The demand for more and cheaper ARVs is high.   
84. For Zambia to become compliant with the TRIPS Agreement, national legislation and 
regulations will need to be assessed in the light of  the flexibilities inherent in the TRIPS Agreement35:  
transition period accorded to LDCs, determination of patent criteria, de termination of patent 
exclusions, content of patent applications, de termination of exceptions to patentability, and 
application of compulsory licences.  Article 61(A) of the Pharmaceutical Act (Act No. 14 of 2004) 
gives authority to the pharmaceutical regulatory aut hority, in the case of declaration of a national 
health disaster by the Health Minister, to authori ze the manufacture of generic versions of patented 
medicines notwithstanding the Patent Act or any written law.  
85. A compulsory licence is obtainable in Zambia  on the grounds of insufficient use of the 
patented technology by the patentee in Zambia and, therefore, failure to meet the reasonable 
requirements of the public.  The principal requirement  for the issue of a compulsory licence is that 
attempts to obtain a licence under reasonable comme rcial terms must have failed over a reasonable 
period of time.  Pharco Ltd, a pharmaceutical company in Zambia has a compulsory licence to 
manufacture ARVs.  The TRIPS Agreement also pr ovides that the requirements for a compulsory 
licence may be waived in certain situations, in particular cases of national emergency or extreme 
urgency or in cases of public non-commercial use.  
                                                                                                                                                                     
1st July 2013 and the provisions of the TRIPS Agreement as they relate to pharmaceutical products until the 
1st of January 2016. 
35 LDCs are granted a transition period up to the 1 January 2016  with respect to TRIPS provisions as 
they apply to pharmaceutical products. Zambia WT/TPR/S/219/Rev.1 
 Page 49 
 
 
(c) Other industrial property  
86. The trade mark system is governed by the Trad e Marks Act and the Merchandise Marks Act.  
While the Trade Marks Act is the only legislation th at provides for the registration of trade marks and 
its incidental activities, it does not cover service marks.  The Act regulates the registration of a trade 
mark, rights given on registration (e.g. the onus is  on the proprietor to bring any civil action for 
infringement), infringement of these rights, and obliga tions on trade mark owners after registration.  It 
provides for initial protection of seven years, extenda ble for 14 years at each renewal on payment of a 
renewal fee.36  The Merchandise Marks Act regulates only the use of trade descriptions.  It prohibits 
use of offending trade descriptions and forged  trade marks on merchandise, imported or for 
manufacture or sale in Zambia.  
87. The Registered Designs Act of 1958 provides for pr otection of designs that are artistic.  To be 
registered, the design must be original and not sim ilar to a design already registered.  The application 
process is relatively simple and governed unde r both the national procedure and the ARIPO 
procedure.  Following substantive examination of an application (filed using forms prescribed under 
the Registered Designs Act) and approval, protect ion is granted for five years renewable for two 
consecutive periods of five years. 
(d) Copyright 
88. Copyright is protected by the Copyright and Performance Rights Act, which covers, inter 
alia, literary, music, sound recordings, audio-visual and artistic works, broadcasts, and computer 
programs, and administered by the Office of the Registrar of Copyright, within the Ministry of 
Information and Broadcasting Services.  The Copyright Act has not been amended since its enactment 
in 1994.  The Registrar of Copyright, a public offi cer appointed under the Service Commi ssions Act, 
1991, registers and monitors the activities of collectin g societies, examines cases of alleged copyright 
infringement, and arbitrates between users of artistic works and artists/societies.  Copyright protection 
covers both economic and moral rights.  The righthold er has exclusive economic right to authorize or 
prohibit the use of the work.  Exclusive moral right is  to ensure that the work is not misrepresented.  
The duration of copyright protection extends for 50 y ears after the author's death or, for audio-visual 
work, 50 years after it was first created or first made available to the public.  For computer programs, the duration is 50 years from the date of first use,  while for typographic arrangements it is 25 years 
from the date of first publication. 
89. Copyright infringements are actionable in a cour t of law and punishable, on a first conviction, 
by a fine or imprisonment for a term not exceeding five years.  Right holders may also be granted 
compensation by way of damages, injunctions, and confiscation of profits.  
(e) Enforcement  
90. Enforcement is undertaken mainly by PACRO, the Zambia police IP unit, and the Copyright 
Unit of the Ministry of Information and Broadcast ing Services. The latter has formed anti-piracy 
crack squads whose mandate is to fight piracy and counterfeiting.  The squads comprise officers from:  
the  Drug Enforcement Commission, which combats laundering of money from piracy and counterfeit trade;  the Office of the President which provide s intelligence information to the squads;  local 
councils, which prohibit the sale of illegal goods in Council-owned;  the Zambia Police Service;  the 
Department of Immigration to check on foreigners  engaging in counterfeit and piracy;  the Zambia 
Revenue Authority, through border controls, wh ere customs officers have the authority to seize 
                                                     
 
36 This Act was amended to incorporate provisions of the Madrid Protocol, to which Zambia became 
bound from 15 November 2001. WT/TPR/S/219/Rev.1 Trade Policy Review 
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infringing products ex officio ;  the Zambia Bureau of Standards; and Journalists Against Piracy in 
Zambia, a group  providing information on the activi ties of the crack squads.   In addition, PACRO 
assists in enforcement through awareness programmes in  the form of workshops and seminars and via 
the internet, journals, and newsletter. 
91. The authorities acknowledge that the main fact ors that continues to inhibit enforcement 
efforts include:  law enforcement officers' insufficient capacity (in particular training on intellectual 
property matters as the police, customs, immigration,  and other officials lack the necessary knowledge 
on copyright and related rights);  difficulties for offi cers to differentiate betw een a genuine and pirated 
product;  and lack of transport for the squad to condu ct its operations.  The latter is a major challenge 
as mobility is essential in order to curtail piracy and counterfeiting, which is mostly in border areas,  
according to the authorities.  The authorities concede that in electronic and audio-visual media, there 
have been many instances of unauthorized reproduc tion and distribution of tapes, videos, and DVDs, 
which have occasionally been confiscated and destro yed.  Enforcement-related statistics were not 
provided to the Secretariat in the context of this report.