Zambia WT/TPR/S/219/Rev.1 
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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
1. Despite the Government's efforts to diversif y the economy, the structure of production and 
trade in Zambia continued to rely heavily on the primary sector during the period under review.  The 
performance of mining has improved since privatizati on, enabling it to take advantage of the rise in 
copper prices.  Copper remains Zambia's larg est export commodity:  copper and cobalt exports1 
accounted for 78% of merchandise exports in 2007, up from 63% in 2002.  Their value, at about US$3.4 billion in 2007, had increased more than five-fo ld compared with 2002, largely attributable to 
the increase in international metal prices.  Ma nufacturing accounted for around three quarters of 
imports on average during the review period;  most  imports were capital goods used for investment.  
Agriculture accounts for less than one fifth of GDP ; well below the average of 32% in sub-Saharan 
Africa, but its GDP contribution does not provide the full picture of its importance: the sector absorbs 
about two thirds of the labour force and is thus the main source of income and employment for the majority of Zambians; furthermore, agri-processing industries, which depend directly on agriculture,  
constitute 60% of Zambia’s manufacturing.  Services,  which tend to be non-traded, form a large part 
of the economy, generating about half of GDP;  private services are dominated by retail/wholesale 
trade, transportation, financial services, and real estate services.   
2. Non-traditional exports (all exports except basi c metals and including copper wire, electricity 
cables, cement, scrap metal, gemstones, high value crops such as paprika and cauliflower,  and fresh 
flowers)  have been growing strongly, at an av erage annual rate of 20% since 2002 although their 
share of total exports in value terms declined from 38% in 2002 to 21% in 2007.  Agricultural exports 
registered the strongest growth amongst non-mineral exports in most recent years.  Since the early 
2000s, with the implementation of privatization a nd trade reforms, productio n of export crops has 
risen significantly and there has been a sharp in crease in exports of cotton, tobacco, spices, 
horticultural products and, mo re recently, honey.   
3. Despite reforms undertaken during the review period
2, the poor quality and limited 
availability of infrastructure services and asso ciated high prices, especially for fuel and 
telecommunications, contribute to the high cost  of doing business and continue to drag down 
productivity, and thus impair competitiveness.  A ccording to the Fifth National Development Plan 
(FNDP), funding for infrastructure has been "erra tic, inadequate and unc oordinated", the main 
problem areas being the electricity, telecommunications and transport sectors, which are largely state-
owned and whose poor performance in supplying servi ces make it difficult for Zambian enterprises to 
compete with those in neighbouring countries.  Po wer outages are frequent as are delays in getting 
access to electricity.  Zambia has continued to fa ll behind regional standards in terms of providing 
access to telecommunications services to its citizens a nd businesses and in terms of competitive prices 
for key services.  In many parts of the country, including the Copperbelt, the quality of roads is such 
that the efficiency of transportation of raw materials and finished goods is significantly impaired. 
                                                      
1 Cobalt has become an important export (accounting for 6% of exports in 2007);  since it is a by-
product of the copper mining process, it is tied to the performance of copper.   
2 Several policy initiatives have been aimed at bridging the infrastructure gap, including: the 
establishment of the National Council for Construction; the Transport Policy of 2002, which instituted the Road 
Development Agency; the amendments to the Electricity Act;  the formation of the Energy Regulation Board and the Rural Electrification Authority;  and the establishm ent of commercial water utilities in urban areas.   WT/TPR/S/219/Rev.1 Trade Policy Review 
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(2) AGRICULTURE , FORESTRY AND FISHERIES  
(i) Main features 
4. Zambia has considerable agricultural potential, which is largely untapped.  Realizing this 
potential is the key priority in the government gr owth and poverty reduction programme.  Almost half 
of the country is covered by bush and forest, wh ich contain few commercially exploitable species. 
Less than 50% of potential arable land is cultivated, mo stly with maize.  Zambia is prone to drought, 
which can have a devastating impact on harvests, as was the case in 2005.  The country accounts for 
around 40% of Southern Africa's water reserves, wh ich have substantial pot ential for hydroelectric 
power generation and could, with a la rge amount of investment, be diverted to dry agricultural areas.   
(a) Agriculture 
5. According to the authorities, the sector's perfo rmance during 2006-08 was poor, contracting 
by an average of 1.2% per year, and its potential has not been fully exploited due, inter alia , to the 
high cost of inputs, inadequate infrastructure, lim ited access to credit, and failure to attract adequate 
private-sector investment.  
6. There are a small number of large commercia l farms which account for about 45% of the 
country’s agricultural output, and a large number (around one million) small holder farmers who grow 
various crops including maize, cassava, rice, cotton, and tobacco.  The small size of most farms means there is a lack of mechanization and economies of  scale, leading to low labour productivity and low 
incomes, and hence poverty. 
(b) Forestry 
7. Commercial forestry is important on the Copperbelt, where there are numerous softwood tree 
plantations, and in the hardwood areas of the south-w est, which are rich in African teak.  Total round 
wood removals amount to about 8 million cubic metr es per year, but over 7 million cubic metres are 
consumed locally in the form of wood fuel.  The 2005 Budget introduced a 25% export duty on 
unprocessed timber, in a bid to encourage the adding of more value locally. 
(ii) Policy framework 
(a) Overall objectives 
8. The Government's long-term development objec tives are set out in the National Vision 2030, 
whose main goals include:  reaching middle-income status; significantly reducing hunger and poverty;  
and fostering a competitive and outwardly oriented ec onomy.  To this end, the FNDP (the country’s 
second-generation Poverty Reduction Strategy Paper) focuses on economic infrastructure and human 
resources development to promote sectors with  high job-creation potential.  Accordingly, 
infrastructure (roads, schools, and hospitals) and ag riculture are priority areas for public spending.  
9. The FNDP sets ambitious objectives for agriculture :  attaining food security for the majority 
of households, guaranteeing sufficient food for at least 90% of the population; increasing the contribution of the sector to total foreign exch ange earnings from the current 3-5% to 10-20%;  
boosting the sector’s growth to 10% after 2006 an d increasing its contribution to GDP from 18-20% 
to 25% while raising  incomes for those involved in agriculture.  
10. The National Agricultural Policy (NAP) 2004-15 , which constitutes the agricultural chapter 
of the FNDP, provides the overall vision for the sector  and assigns a pivotal role to the private sector.  Zambia WT/TPR/S/219/Rev.1 
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Agricultural diversification and the developmen t of private-led marketing systems are major 
objectives in the FNDP, the NAP and its implementing st rategies.  At the same time, the biggest share 
of the agriculture budget finances the provision of  subsidized fertilizers and buying of maize from 
farmers, while spending on research and extension services is inadequate.3  This is not consistent with 
the goal of improving productivity and promoting divers ification of agriculture, and it distorts the 
market for fertilizers, in contrast with the goal of promoting the development of private suppliers. 
(b) The Food Reserve Agency and trade policy 
11. Maize determines the fortunes of the agricultural sector, and the country consumes about 
1.6 million tonnes of maize annually, providi ng over half of all calories consumed.4  Yet dependence 
on rain-fed maize production can lead to highly volatile  output from one year to the next, in Zambia 
as in many parts of sub-Saharan Africa.  Zamb ia’s maize crop may fail to satisfy national 
consumption requirements, on average, in one year out of three.  In good harvest years, Zambia produces a maize surplus, enabling the country to expor t maize.  In bad years, when drought, reduced 
planting area, or input supply bottlenecks constric t output, Zambia imports maize (Table IV.1). 
Table IV.1 
Maize production, prices and trade, 2001-08 
Production Maize imports (tonnes) 
Year Harvest 
Tonnes Pricea 
(US$/tonne) Non-aid Food aid Total Exports 
2001 Bad 601,606 192 10,334 57,412 67,746 11,726 
2002 Bad  602,000 244 195,526 73,575 269,101 4,885 
2003 Good 1,161,000 169 115,955 44,999 160,954 629 
2004 Good 1,113,916 150 6,223 20,000 26,223 103,245 
2005 Moderate 866,187 236 50,000 70,000 120,000 10,000 
2006 Good 1,424,439 225 .. .. .. 100,000 
2007 Good 1,366,158 .. .. .. .. 200,000  
2008 Good 1,211,566 .. .. .. .. .. 
.. Not available. 
a Lusaka into-mill price for th e marketing year, May-April. 
 
Source:  Data for 2006-08 provided by the authorities;  for 2001-05 data see Dorosh, P, S. Dradri, and S. Haggblade (2007), 
"Alternative instruments for ensuring food security and pr ice stability in Zambia", Working Paper No. 29, p. 6, 
Food Security Research Project, November, Lusaka , Zambia.  Viewed at:  http://www.aec.msu.edu/fs2/ 
zambia/wp_29.pdf. 
12. Between them, private traders, the Governme nt and food aid donors buffer Zambia’s maize 
shortfalls and surpluses, using a va riety of means.  In recent years, the Government has preferred 
direct public import and export by the Food Reserve Agency5 (FRA), supplemented in some years by 
                                                      
3 During the review period, about 5% of Zambia's national budget went to agriculture. In fiscal 2005, 
more than half the agriculture budget  was spent on the Fertilizer Subsid y Programme (37%) and crop marketing 
for maize under the Food Reserve Agency (15%). Only 3% of the budget went to irrigation development and 
other rural infrastructure and 11% to  operating costs, which included agricultural research and extension. 
4 Zambia’s agriculture is dominated by maize, the nation’s staple food, which before the early 1990s 
accounted for over 60% of total agricultural productio n.  By 2008 maize accounted for 45% of total crop 
production.  The more traditional crops, particularly cassava and other tubers, have increased their share of production. 
5 After having dismantled the marketing board parastatal NAMBOARD in 1991, the government 
established a new food strategic reserve – the FRA - in  1995 to maintain security stocks. FRA purchases 
remained nominal until the early 2000s when they ranged be tween 50,000 tonnes and 75,000 tonnes per year.  In WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 54 
 
 
government-administered quotas for private cross-bord er trade.  Food aid agencies (together with 
government) estimate potential supply gaps that need to  be filled by public or food aid imports.  As 
maize production has stalled, import prices of mai ze have become increasingly competitive with 
domestic production, leading to steadily improving conditions for private commercial maize imports6 
during years of domestic production shortfall.  The Government remains an important agent in the 
maize market, both through the direct procurement and sale operations of the FRA and through its use 
of trade policy instruments. 
(c) Fertilizer Subsidy Programme 
13. Fertilizer subsidies have also been a continuous  feature during the review period.  About 40% 
of the MACO budget has been devoted to its Fertilizer Support Program (FSP), which has distributed 
50,000 – 80,000 tons of fertilizer to small farmers at 50% of the full cost.  Smallholders purchase 
another 50,000 to 60,000 tons of fertilizer comme rcially from private dealer s.  According to the 
World Bank, the FSP is not well targeted and many r ecipients are not small, farmers but traders who 
resell fertilizers at profit to higher-income groups close to tarmac roads and district centres.7   
14. However, the Zambian Government says it is co mmitted to the liberalization of agricultural 
markets.  It aims to implement a well managed transition from full government participation to full 
market liberalization by gradual government di sengagement from providing agricultural services in 
order to give opportunities to the private sector, wh ile also building the capacities of both the private 
sector and smallholder producers.  In all these effort s, there are some positive developments such as 
increased out-grower schemes and contract farming, crop diversification, and land management 
strategies.  However, the private sector has re mained constrained in providing input and output 
marketing services.  The Government designed the FSP to improve access by smallholder farmers to 
inputs and to enhance private-sector participation in  the supply and distribution of agricultural inputs. 
The FSP provides inputs to small-scale farmers that are members of a co-operative or a farmer organization in an attempt to ensure that the in put reach only the target vulnerable smallholder 
farmers (Table IV.2). 
Table IV.2 
Subsidies for agricultural inputs for small-scale farmers, 2002-08 
Commodity & quantity (tonnes) Agricultural season 
Fertilizer Maize seed Number of 
beneficiaries Government subsidy 
in % 
2002/03 48,000 2,400 120,000 50 
2003/04 60,000 3,000 150,000 .. 
2004/05 46,000 2,500 115,000 .. 
2005/06 50,000 2,500 125,000 50 
2006/07 84,000 42,000 210,000 60 
2007/08 50,000 2,550 125,000 60 
.. Not available. 
Source: Zambian authorities. 
                                                                                                                                                                     
2006 (a presidential election year),  the FRA purchased roughly 400,000 tonnes of maize, controlling the 
majority of traded maize and becoming overwh elmingly the largest trader in the market. 
6 Zambia’s maize imports come primarily from South Africa, though in some seasons the country has 
imported maize from southern Tanzania and Uganda. 
7 The World Bank contends that the system opens the door to corruption and rent-seeking, distorts the 
market, depresses the supply of fertilizer on the commer cial market and crowds out private operators. In 
particular, "the annual uncertainty about the timing and level of government purchase is particularly damaging because little time is allowed for successful bidders to im port and deliver fertilizer".  World Bank (2008c), p. 49. Zambia WT/TPR/S/219/Rev.1 
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(3) MINING  
(i) Overview 
15. The country is known for its high-quality copper and cobalt  reserves located primarily in the 
Copperbelt8 province, to the north of Lusaka and on the border with the Democratic Republic of 
Congo (DRC).  Since the early 1920s copper has been mined commercially.  Currently, Zambia is the 
world's seventh largest producer of copper, genera ting 3.3% of the world’s production, and world’s 
second largest producer of cobalt, ge nerating 19.7% of world production.   It also has small quantities 
of selenium and silver together with minor gold and platinum group elements, which are produced as 
important by-products of the copper mining and processing.  Combined reserves and resources of 
copper-cobalt ore in operating mines of the Copperb elt and north-western provinces are estimated to 
exceed two billion tonnes which have mostly  been delineated for exploitation.  
16. Zambia also possesses a variety of precious and semi-precious minerals such as amethyst, 
aquamarine, emeralds9, gold and diamonds.  Artisans have mined precious and semi-precious gems 
(emeralds, amethyst, aquamarine and tourma line among others) in around 400 operations. 
17. Copper production declined steadily from a 1973 high of 700,000 tonnes to a 2000 low of 
226,192.  The decline was the result of poor ma nagement of state-owned mines and lack of 
investment.  With the privatization of the mines in April 2000, the downward trend in production and 
exports was reversed.  Copper production in creased to over 400,000 tonnes in 2004 and 
440,000 tonnes in 2005.  This increase was a result of investments in plant rehabilitation, expansion, 
and high copper prices on the international market .  Copper production continued to rise and reached 
over 569,000 tonnes in 2008 (Table IV.3).  In the medium term, the Government aims to nearly 
double copper production to 1 million tonnes per year by  the end of the decade by attracting major 
investments, such as the new US$500 million copp er smelter in Chingola in northern Zambia, 
operated by Vedanta. 
Table IV.3 
Volume of cobalt and copper production, 2002-08 
(Tonnes '000) 
 2002 2003 2004 2005 2006 2007 2008 
Cobalt 3.9 3.2 6.1 5.5 4.7 4.4 5.3 
Copper 337.7 353.4 419.6 459.3 508.4 565.5 569.9 
Source:  Information provided by the Zambian authorities.  
18. Copper ores are smelted and refine d into metals prior to export;  cobalt is recovered through a 
leaching process.  Copper metal fabrication into cabl es is an important industry in Zambia.  Foundries 
produce mill balls from scrap iron while calcina tion of lime and cement production constitute 
important industrial mineral-related activities.  Other mineral-related industries include manufactures 
of explosives, sulphuric acid, fertilizer, paint, pu tty, bricks, tiles, ceramics, roofing sheets, and 
                                                      
8 The Copperbelt, a curved zone measuring 600 km in length by 50 km in width, contains one of the 
world's greatest concentrations of copper and cobalt deposits. The arc of the deposits extends from Ndola (in 
Zambia), stretches across the border into the DRC, back into the northwest portion of Zambia and west into 
Angola. The deposits are excep tional on a world scale, with most having original resources measuring hundreds 
of millions of tonnes of ore with  grades greater the 2% copper. 
9 Zambia produces approximately 20% of the world's emeralds, and foreign investment has played a 
vital part in building up the industry.  Kagem Mining Limited is the largest gemstone mining operation in Zambia and is 45% owned by the Israeli-Indian consortium, Hagura. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 56 
 
 
pesticides.  Other known mineral resources, which are largely under-exploited, include marble and 
granite as well as ferrous metals.   
19. Although there is a well-developed supplier netw ork in Zambia, very little of the equipment 
supplied into the Zambian industry is manufactured locally, and most distributors have long-standing 
agreements with South African and European and Australian suppliers.  Moreover, there is a strong 
foreign engineering presence in the country, whic h influences the mining and metals fabrication 
sector. 
(ii) Main features of the copper industry  
20. From the late 1960s to the early-1990s, mining in Zambia was dominated by the state-owned 
Zambia Consolidated Copper Mines (ZCCM).  Under-investment and low copper prices led to a 
decline in production by the mid 1990s as ZCCM had become a loss-maki ng enterprise and was 
broken up and privatized in the late-1990s. 
21. The Government has maintained minority st akes in virtually all of the mines through 
ownership of 87% of the shares of ZCCM’s successor company – ZCCM Investment Holdings (ZCCM-IH), which is publicly listed in both Lusaka a nd London.  Following significant investment in 
mines by new owners, as well as a more than quad rupling of copper prices, the Zambian mining 
industry was until the fourth quarter of 2008 – in terms of both the amount and value of production – 
booming.  The ownership and approxi mate levels of production of the mines currently producing in 
Zambia is outlined in Table IV.4. 
Table IV.4 
Zambian mines:  ownership structure and levels of production 
Mine  Ownership  Copper production (2008)  
Bwana Mkubwa Mining 100% First Quantum Minerals  6,455 tonnes  
Chambishi Metals 90% Enya Holdings BV (J&W Group), 10% ZCCM-IH  25,999 tonnes 
Chibuluma Mines  85% Metorex Ltd, 15% ZCCM-IH  15,345 tonnes 
Kansanshi Mines 80% First Quantum Minerals, 20% ZCCM-IH  216,791 tonnes  
Konkola Copper Mines 51% Vedanta Resource Ho ldings Ltd, 49% ZCCM-IH  128,187 tonnes  
Luanshya Copper Mines 90% Enya Holdings BV (J&W Group), 10% ZCCM-IH  22,464 tonnes  
Lumwana 100% Equinox Minerals Limited (6.5% of which is 
owned by ZCCM-IH)  Initial production forecast to be 
172,000 tonnes/year from mid-2009.  
Lumwana is one of the largest undeveloped 
copper projects in the world. 
Mopani Copper Mines  73.1% Glencore International, 16.9% First Quantum 
Minerals, 10% ZCCM-IH  154,646 tonnes 
NFC Chambeshi Africa 
Mining  85% China Nonferrous Metal Industry Engineering and 
Construction Corporation, 15% ZCCM-IH  25,999 tonnes 
Source: World Bank, Extractive Industries Transparency Initiatives  (EITI), scoping study for the Republic of Zambia, 
September 2007;  Ministry of  Mines and Minerals Devel opment for production figures. 
22. Zambia’s exports are highly concentrated in copper, the price of which is volatile.  The 
international price of copper has risen steadily a nd sometimes spectacularly during the review period, 
from around US$1,560/tonne (or 70 US cents/lb) in 2002 to a record high in the middle of 2008 of nearly US$9,000 (or 403 US cents/lb), marking its most sustained period above the psychologically 
important US$8000/tonne (or 363 US cents/lb) price level (Table IV.5).  Since then, prices have 
dropped by more than 50%, to as low as US$3,105 in December 2008.  The sustained rise of copper 
during most of the review period was due in la rge measure to increased demand from the People's Zambia WT/TPR/S/219/Rev.1 
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Republic of China, which in 2002 had overtaken th e United States as the world’s largest importer of 
copper;  it remains to be seen whether Chinese de mand in 2009 will be more resilient than OECD 
demand. 
23. The main concern in the market in the latter part of 2008 has been the deteriorating outlook 
for demand.  The downturn in global demand, conditi oned partly by the decline in the important  
American copper-consuming constructi on and automobile industries, is expected to be sharper than 
previously forecast with prices for refined copper exp ected to decline further (Table IV.5).  A number 
of exploration projects have reportedly been put  on hold and several big underground mines are 
operating at close to the cost of production.10 
Table IV.5 
Refined copper:  average world price, 2002-09 
(Cash price in US$/tonne) 
 2002 2003 2004 2005 2006 2007 2008a 2009b 
Price 1,560 1,779 2,863 3,676 6,731 7,131 6,963 3,260 
Percentage change -1.3 14.0 60.9 28.4 83.1 5.9 -2.4 -53.2 
a High of 8,714 in April and low of 3,105 in December. 
b January only. 
Source:  IMF (2009), International Financ ial Statistics, April. 
(iii) Regulatory and fiscal framework   
(a) Regulation of the mining sector   
24. The sector is administered by various departments in the Ministry of Mines and Minerals 
Development.11  Until April 2008, the mining sector was regulated by the Mines and Minerals Act of 
1995 and amendments.  The Act had abolished mandatory state partic ipation, simplified licensing 
procedures, and minimized constraints on prosp ecting and mining activities, creating a favorable 
inward investment environment.12  The 1995 Act permitted the Govern ment to enter into long-term 
development agreements13 with specific companies.  These established the terms under which the 
mines were sold and the rights and responsibilities of the Zambian State and the new mining companies.  The agreements, under which the Gove rnment could extend more incentives than the Act 
granted, provided preferential tax treatment of the co mpanies with a view to promoting investment in 
the sector when copper prices were low.  
25. The preferential tax treatment included: a royalt y of 0.6% of gross value; corporate income 
tax at 25% (compared with a ge neral rate of 35%);  depreciation for tax purposes at 100%;  
withholding taxes at 0%, except on construction an d technical services supplied by non-residents;  
customs duty exemptions for capital-equipment imports;  and limits on duties payables for 
consumables.  These terms and the write-down of large investments limited the Government’s share of potential tax revenues from the copper boom. 
                                                     
 
10 Financial Times , "Copper's fall takes shine off Zimbabwe's ambitions", 19 November 2008, p. 6. 
11 Policy decisions within the Ministry are made by the Minister, assisted by the Deputy Minister. The 
chief executive is the Permanent Secr etary, who directs four statutory departments:  Geological Survey (for 
prospecting licences and mineral pro cessing licences), Mines Developmen t (for issuance of mining licences), 
Mines Safety, and Headquarters (for administrative matters). 
12 For a more detailed history see:  Lungu (2008). 
13 Under the provisions of the Mines and Minerals Act, the development agreements were binding on 
the Government and override any law or regulation.   WT/TPR/S/219/Rev.1 Trade Policy Review 
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26. In 2007, the Government began to amend the Mines and Minerals Act to ensure that the 
development agreements are subordi nate to, and binding only within the confines of, the law.  The 
resulting new mining legislation – the Mines a nd Minerals Developmen t Act 2008 – removed the 
requirement to enter into development agreements, which the Government considered to have been 
lopsided, to ensure the the new regime o ffers more benefits the Zambian people. 
27. The new Act provides, inter alia,  protection and rights to investors, requirements and 
incentives for doing business, and introduces a computer ized mining "cadastral" mineral title system 
to faciliate timely processing of mining rights, and reserves small-scale mining for companies in 
which the majority interest is held by Zambians.  The Act contains a number of provisions to benefit 
Zambian-citizen-owned companie s in line with the Citizens Economic Empowerment Act 2006, 
which includes provisions for a review of the operati ons of the ZCCM to enable individual Zambians 
to own shares in large-scale mining companies. 
28. In addition, an Environmental Protection Fu nd (EPF) was established under the 2008 Act to 
addresses environmental liabilities corresponding to the new mining investors as provided for under 
the Act.  The objectives of the Fund  are:  (i) to provide assurance to the Director of Mines Safety 
(Mines Safety Department) that a holder of a li cence or permit will execute their environmental 
impact statement in accordance with the Act;  and (ii)  to protect the Government against the risk of 
having to rehabilitate a mining area where the holder of a mining licence fails to do so. 
(b) Changes to the tax regime 
29. In April 2008, the Government introduced a ne w tax regime.  In recognition of high copper  
prices and the generally more favourable investment cl imate, the tax  regime was revised to be more 
consistent with international standards.  The majo r change was the increased rate of corporate income 
tax for companies in the mining sector from 25% to 30% and the rate of mineral royalties for companies in base metals mining from 0.6% to 3% of the gross sales value.  Mineral royalty rates for 
other precious metals increased from 2% to 3%.  The Government re-introduced withholding tax on 
payment of dividends, interest, royalties, management  fees and payments to affiliates at the standard 
rate of 15%.  It also introduced a variable prof it tax for when the profit ratio is above 8%, and a 
graduated windfall tax (levied on production value) for when world copper prices exceed US$2.50 a 
pound.  Capital allowances (depreciation of capita l equipment), were reduced to 25% from 100% per 
year.  A reference price, to be deemed an "arm s-length" price, was introduced for the purposes of 
assessing mineral royalties and any transaction for the sale of base metals, gemstones or precious 
metals to related or associated parties.  (The refe rence price was to be the price tenable at the London 
Metal Exchange Bulletin or any other commodity exchange market recognized by the Commissioner 
General.)  
30. The new tax regime was intended to ensure that  the Government received a greater share of 
mining profits and rents, through the introduction of a windfall tax and a variable profit tax, as well as 
an increase in the mineral royalty.  In implemen ting the new tax regime, the Government wanted to 
preserve Zambia’s attractiveness for investment in  mining.  All mining revenue in excess of what 
would have been collected under the old regime was to be saved in a separate government Mining 
Resource Account (MRA) at the Bank of Zambia .  The MRA was to be a stabilization fund to 
smoothen expenditures over time taking into acc ount macroeconomic conditions and absorptive 
capacity.  The fund was to be used to finance high priority projects identified in the FNDP.  
31. The major mining companies and the Chamber of Mines of Zambia rejected the new regime, 
some arguing that the development agreements were  still binding  and that the tax changes were too 
harsh and would trigger economic recession,  leading to  unemployment and poverty. Zambia WT/TPR/S/219/Rev.1 
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32. In early 2009, the Government announced a reversal of its policy14 More specifically,  
following consultations with the mining industry, and in light of the impact of the global crisis on the mining sector, the tax regime was changed as follows:  (a) removal of the windfall tax but retention of 
the variable profit tax to capture any windfall ga ins that might arise in the sector;  (b) allowing 
hedging income to be part of mining income for tax purposes (this had been removed in 2008);  and 
(c) increasing the capital allowance back from 25% to  100%, as an investment incentive.  It remains 
to be seen whether the revised regime ensures that  the nation as a whole receives a fair share of the 
country's natural resource rents, while main taining a globally competitive mining industry. 
(c) Transparency 
33. Enhancing transparency in the mining sector is important to ensure that available publicly 
owned resources from the sector are realized and used e ffectively.  To this end, the Government is in 
the process of signing the Extractive I ndustries Transparency Initiative (EITI)
15:  the mining 
companies will disclose to the fullest extent possibl e incomes and taxes paid to Government and the 
Government will disclose all material revenues recei ved from the mining industry.  The figures will 
be audited to internationa l standards and published. 
34. Given the  substantial inflows from copper, th e EITI should help to smooth tax revenues (and 
thus fiscal expenditures) over time:  Commodity prices go through pronounced cycles of booms and 
bust and therefore revenues require car eful management to ensure a steady flow to the budget and, in 
the long term, enhance saving for future generations .   Increased revenues from the copper sector, as a 
result of the new mining sector tax regime will need  to be managed prudently not only to avoid 
macroeconomic challenges but to also support the objectives of diversification and increased 
investment in infrastructure to improve productiv ity and competitiveness in order to support rural 
development and programs that benefit rural areas.  
(iv) Energy minerals 
35. Energy minerals found in Zambia include uranium, coal, and gas.16  The Government has 
taken a cautious approach to the issuance of ur anium mining licences because of safety, health, 
environmental, and security concerns.  In addr essing these concerns, the Government has held 
consultative meetings with stakeholders and has adopted the International Atomic Energy Agency 
(IAEA) guidelines on uranium mining, processing, storage, transportation, and trade.  These guidelines have been used to develop new uranium regulations and Zambia is now ready to receive 
applications for mining licences on uranium. 
36. The Government is in the process of inviting bids  from interested companies to explore for oil 
and gas.  The preparatory work includes the revision of the Petroleum (Exploration and Production) Act of 1985 to provide for,  inter alia,  separate licences for prospecti ng and for production of oil and 
                                                     
 
14 Ministry of Finance and National Planning (2009), p. 21. 
15 The Extractive Industries Transp arency Initiative (EITI) supports improved governance in resource-
rich countries through the verification and full publication of company payments and government revenues from 
oil, gas and mining.  The EITI is a coalition of governments, companies, civil society groups, investors, and 
international organizations (see:  http://eitransparency .org/eiti/summary).  The World Bank is supporting the 
Zambian Government's EITI implementation to improve governance through the verification and full 
publication of company paym ents and government receipts from the mining sector. 
16 According to the authorities, large-scale explora tion initiatives by multinational companies such as 
BHP Billiton, CGA Mining Limited, ICS Copper Syst ems Limited, Omega Corporation, African Eagle 
Resources Plc, First Quantum Minerals, Albidon Limited, Teal Exploration and Mining Limited, Zambezi 
Resources and African Energy Resources have revealed enormous potential for the development of new mines.  Equinox is advanced in its preparation of a feasib ility study for uranium mining in the Lumwana area. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 60 
 
 
gas.  The Petroleum Amendment Bill is designe d to provide for stronger legal provisions on 
environmental protection and for an institu tional framework to regulate the industry. 
(4) ENERGY  
(i) Overview 
37. Woodland and forests cover about 66% of total land area and wood fuel provides some 70% 
of the nation's energy needs.  Zambia also has a bundant hydroelectric resources and historically met 
most of its electricity needs from its own hydroel ectric stations, which are operated by the state-
owned Zambia Electricity Supply Corporation (Zesco).  Zambia used to be a large regional electricity 
exporter, but in 2005 Zesco was forced to suspe nd exports, as generation capacity fell owing to the 
start of rehabilitation work ageing hydroelectri c power stations under a power rehabilitation 
programme; this  required  the import of electricity from South Africa and the DRC. 
38. Demand for coal from the copper mines is incr easing rapidly, and imports have grown owing 
to weakness in domestic supply.  The majority of  domestic coal comes from the Maamba colliery in 
the south, which has proven reserves of around 78 million tonnes, although the colliery's output of 
washed coal has declined  steadily since the late 1990s primarily owing to a shortage of working 
capital.  Attempts to privatize the colliery have  failed.  A privately owned coal-mining company, 
Collum Coal Mining Industries, st arted production in 2006 and has ambitious plans to lift annual 
output to 480,000 tonnes by 2008, from 120,000 tonnes in 2006.  
(ii) Electricity 
(a) Regulatory situation 
39. The Zambian power sector is governed by the Energy Regulation Act (1995), the Electricity 
Act (1995), and the Rural Electrification Act (2003).  The Energy Regulation Act established the Energy Regulation Board (ERB), which is responsible  for the licensing, monitoring, and supervision 
of operators in the energy sector;  it must also approve electricity tariffs.  The Electricity Act abolished the statutory monopoly of Zesco in the power sector and provided for new entrants, 
although none have emerged, partly due to low elect ricity tariffs.  The Rural Electrification Act aims 
to facilitate the expansion of electrification into rural areas. 
40. Zesco handles virtually all generation, transmission, and distribution of electricity in Zambia 
but it suffers from inefficiencies and high operating costs.  Privatization was considered but the 
Government abandoned this option in 2003 and chose,  in consultation with the World Bank and the 
IMF, a strategy of commercialization intended to achieve the same objectives as privatization.
17  
(b) Electricity supply 
41. Development of the electricity sector is vital to achieving sustained high growth and reducing 
poverty.  According to the authorities, less than  20% of Zambians, and only 3.1% of the rural 
population, have access to electricity.  Greater elect ricity generation will be needed to support the 
envisaged expansion of mining, private-sector growth, and the planned rural electrification 
                                                      
17 According to the IMF, while a formal assessment of the commercialization strategy is yet to be 
completed, it appears not to have led to the improvement  in Zesco's financial and operating performance that 
was the overarching objective of the strategy. Earlier it was envisaged that a negative assessment of governance 
and performance outcomes under the commercialization strategy would lead to the revival of the privatization option.  However, this would not seem to be politically feasible (IMF, 2008f, p. 56). Zambia WT/TPR/S/219/Rev.1 
 Page 61 
 
 
programme.  Electricity tariffs need be raised  significantly to reflect the cost of service18 and to make 
investment in new capacity profitable and attract priv ate interest.  Electricity tariffs in Zambia are 
low, both by regional standards and relative to generating costs. 
42. While there is an abundance of hydro potential to be harnessed in Zambia, bringing on line 
new capacity will require heavy investment and in  many instances long lead times.  As the power 
purchasing agreements that the mining companies19 have with Zesco require an uninterruptible 
supply, the shortage of power results in exte nsive load shedding for non-mining businesses and 
households during times of peak demand. 
(5) MANUFACTURING  
43. Manufacturing’s share of GDP has changed little during the period under review, contributing 
between 10% and 11% of GDP.  Growth in the sector  averaged around 5% in the first half of the 
review period, primarily owing to the Government ’s decision to reduce the import duty on imported 
raw materials.  Textile and clothing manufacture has declined due to competition from lower-cost 
Asian manufacturers after the expiry of the Ag reement on Textiles and Clothing in 2005.  The 
regional  FTAs have created new export markets fo r Zambian manufacturers, but their main market 
remains domestic, where demand and purchasing power are weak.  
44. As the Government has recognized,  one of th e key prerequisites for improving the external 
competitiveness of the economy is reducing the cost of  doing business, which is considered relatively 
high in Zambia due, inter alia,  to a cumbersome licensing and regulatory framework, poor 
infrastructure and high transport and communicati on costs.  As noted elsewhere, the policy and 
commitment of the Government is to reduce these costs by simplifying  the business regulatory and 
licensing system.  Also, for Zambia to compete internationally, it must improve productivity.  Analysis carried out by the World Bank at the start of the review period indicated the importance of capital and labour inputs, which are of poor quality in Zambian firms.
20 
45. According to the World Bank, Zambian firms use over US$12,000 of capital per unit of 
labour, whereas their East African comparators average approximately US$3,500.  Likewise, value 
added per dollar of each unit of cap ital is only 23 cents in Zambia , compared with Uganda where 
returns are three times that amount.  The value added per worker in Zambia is about $2700, which is 
higher than Uganda and Tanzania but well below Kenya, India, and Ch ina.  Zambia’s low wages offer 
no advantage to investors because they are offset by low productivity.  The World Bank suggests that 
the poor performance may be in part to poor edu cation and outdated labour laws, such as costly 
severance laws that impose burdens and suppress in come, as well as inefficient hiring and firing 
practices, exacerbated by cumbersome permit procedures and the HIV/AIDS epidemic, which forces firms to train multiple people for key positions, increasing recruitment costs and lowering 
                                                     
 
18 The IMF notes that full cost recovery for Ze sco would require a 48% increase in the average 
electricity tariff, ranging from 2.4% for commercial users to 148.5% for residential users; mining tariffs would 
need to rise by 28.5% to achieve full cost recovery. From 2002 to 2006, the ERB approved cumulative tariff 
increases for Zesco of only 17% while the CPI more than doubled. 
19 Mining accounts for about one half of electricity use in Zambia. ZESCO supplies power mainly 
through CEC, a privately-owned intermed iary.  Access to electricity is larg ely limited to the urban centres of 
Lusaka, Livingstone, and in the Copperbelt. It is estimated that only 20% of the population of Zambia use electricity; 40% of the urban population but only 2%  of the population in rural areas. Under the 5
th FNDP,  the 
government aims to raise the level of electricity use to 30% of the population over the next five years, 
particularly through rural electrification efforts. 
20 World Bank (2003). WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 62 
 
 
productivity.  Furthermore, low productivity cannot be accounted for solely by the quality of inputs.  
It is also a product of a poor investment climate, which exacerbates poor quality inputs.21 
(6) SERVICES  
46. The performance of the services sector is key to growth and povert y reduction in Zambia 
given that it is the largest part of the economy.  Services, including construc tion, generate about 63% 
of Zambia's GDP, a figure that has remained larg ely unchanged during the period under review.  In 
addition to their direct contribution to GDP, services  – in particular infrastructural services such as 
transport, finance, and communication – are critical el ements in the productivity of many industries.  
A number of studies and surveys22, however, have found inadequacies across service sectors, creating 
formidable barriers to private pr oductive investment in Zambia.  
47. Zambia’s services exports consist largely of tr avel services (tourism) and transport, which 
together accounted for more than 80% of services expor ts in 2007 (Table I.3).  In the Doha Round 
services trade negotiations, Zambia has not ma de an initial offer (December 2008).  GATS 
commitments were last made in the Uruguay R ound when Zambia bound market access in certain 
business services, construction, and related engineering services, health care and social services, and 
tourism and travel-related services.23 
(i) Financial services 
48. Zambia's capital market is underdeveloped.  C onsequently, the Government has embarked on 
a financial sector development plan (FSDP) for 2004-09, designed to create a sound, well-functioning 
financial system that will support economic divers ification and sustainable economic growth.  The 
plan followed more than a decade of economi c reform during which key prices and various 
restrictions, including on capital flows, were liberalized. 
(a) Banking 
49. The 1994 Banking and Financial Services Act (now under review as part of the FSDP 
exercise) covering banks and non-bank financial ins titutions (NBFIs), gives the Central Bank (Bank 
of Zambia or BoZ) authority to issue prudential directives on, inter alia, capital adequacy 
requirements, restrictions on large loan exposure,  and insider lending, and introduces standardized 
reporting and accounting procedures.  The Bank of  Zambia Act 1996 established in principle the 
independence of the Bank of Zambia to implement monetary policy and superv isory policies.  Banks 
may not engage in insurance services. 
50. Private and foreign ownership is  permitted up to 100%.  Forei gn banks must be licensed in 
their home country, and the BoZ must be satisfied th at foreign banks are adequately supervised by 
their home regulatory authority.  All foreign banks must be incorporated locally, which means there 
are no branches of foreign banks.  National treatment  applies in the sense that regulatory conditions 
are no more restrictive on foreign banks than on domestically-owned banks.  Cross-border lending 
and borrowing by banks are permitted and there are no restrictions on lending and borrowing rates.  
                                                      
21 Firm owners and managers rated several factors as the most constraining to their operation and 
growth, including financing cost and access, macroeconomic instability, tax ra tes and administra tion,  regulatory 
policy uncertainty,  crime and corruption and infrastructure (emphasizing electricity and telecom). 
22 World Bank (2005a).  Many firms view the following as major constraints to business operations:  
cost of financing, access to finance, telecoms, and transport. 
23 WTO document S/DCS/W/ZMB, 24 January 2003, "Zambia Draft Converted Schedule of Specific 
Commitments". Zambia WT/TPR/S/219/Rev.1 
 Page 63 
 
 
51. Commercial banks remain the dominant financia l intermediaries; they have about 70% of 
total financial sector assets.  In 2006, total assets of the banking sector were about 27% of GDP (the 
sub-Saharan average is 67% and the average for low-income countries in the region is 38%), 
underlining that the Zambian banking system remain s small and undeveloped.  Currently, there are 
13 commercial banks, dominated by 3 foreign banks – Barclays, Standard Chartered and Stanbic – 
which own 50% of the total assets of the sector a nd account for  65% of loans, 49% of deposits, and 
27% of all branches (Table IV.6).  
Table IV.6 
Banking institutions in Zambia, 2007 
(Percentage of total) 
Branches 
Commercial banks Per cent of 
assets Per cent of 
loans and 
advances Per cent of 
deposits Branches Per cent of 
total 
Foreign banks      
Barclays Bank 20 32 18 17 11 
Standard Chartered 16 15 18 15 10 
Stanbic Bank 14 18 13 9 6 
Finance Bank Zambia Ltd 8 8 7 38 24 
Citibank Zambia Ltd 7 3 6 2 1 
Indo-Zambia Bank 6 3 6 9 6 
Bank of China 1 0 2 1 1 
Subtotal 73 79 69 91 58 
Domestic banks      
African Banking Corporation 2 3 1 1 1 
Cavmont Merchant Bank 1 0 1 11 7 
First Alliance Bank 1 1 1 4 3 
Intermarket Banking Corporation 1 1 1 2 1 
Investrust Bank 3 3 3 5 3 
Zambia National Commercial Bank 20 12 24 42 27 
Subtotal 27 21 31 65 42 
Source: Mattoo and Payton (2007), p. 159. 
52. The banking system, dominated by foreign-ow ned banks, for most of the review period 
demonstrated strong signs of soundness and profitab ility.  According to data from the BoZ, the 
banking sector is adequately capitalized with the ra tio of capital to risk-weighted assets (at 18.9% in 
mid-2007) well above the statutory requirement of 8%, which is in line with international best 
practice (Table IV.7).  In 2008, the ratios of gro ss non-performing loans to total gross loans and of 
net-non-performing loans to total regulatory capital im proved to 7.2% and 5.2% from 8.8% and 9.6%, 
at end December 2007.24  In recent years banks have recorded relatively high profits, which has 
allowed them to achieve sound annual returns on assets.   
53. Lending rates remain high (at 24% at end-2007) due  to an adverse interest-rate environment, 
conditioned by high operating costs as  banks seem to prefer to invest  in short-term lending, rather 
than in long-term lending to the private sector.25  Only a few large corporations and a few SMEs have 
access to credit and only 15% of Zambia 's adult population have a bank account.26 
                                                      
24 Ministry of Finance and National Planning (2009), p. 66. 
25 Low financial intermediation means that the spread between lending and deposit rates is large (see 
Table I.2 Selected Macroeconomic Indicators), with deposit rates negative in real terms and lending rates too 
onerous for most of the private sector. 
26 World Bank (2006a), p. 1. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 64 
 
 
Table IV.7 
Financial soundness indicators, 2002-07 
(Per cent) 
 2002 2003 2004 2005 2006 2007 
(June) 
Regulatory capital to risk-weighted assets 28.0 23.0 22.2 28.4 20.4 18.9 
Past due loans (NPLS) to total loans 11.4 5.3 7.6 8.9 11.3 8.5 
Loan loss provisions to non-performing loans 73.9 89.3 102.8 90.7 83.3 104.9 
Return on average assets 6.5 5.4 3.1 6.5 5.1 4.7 
Return on equity 52.8 48.5 29.8 46.4 30.6 30.9 
Net interest margin 15.3 23.2 11.8 11.8 12.8 10.9 
Liquid assets to total assetsa 78.6 74.7 66.6 41.0 41.3 36.5 
Liquid assets to total deposits 69.7 73.5 73.7 51.0 49.6 44.7 
Advances to deposits ratio 29.9 33.3 37.3 44.5 49.0 56.6 
Foreign currency loans to total gross loans 42.8 46.8 41.2 36.2 34.0 30.3 
Foreign currency liabilities to tota l liabilities 62.2 58.4 58.4 31.0 61.2 .. 
Household debt to GDP 0.0 0.0 0.0 1.5 1.2 .. 
.. Not available. 
a Liquid assets were redefined to exclude  one-year Treasury bills beginning in 2005. 
Source:  IMF (2008), Zambia:  Selected Issues,  Country Report No. 08/29, p. 32. 
(b) Non-bank financial institutions 
54. Other than pension funds, which hold about 22 % of the assets of the financial system, the 
contribution of non-bank financial in stitutions (NBFIs) is small (Table  IV.8).  Most of the pension 
industry, which comprises the National Pensi on Scheme Authority ( NAPSA) and occupational 
pension schemes, is generally sound.  However, the two state funds, the Public Service Pension Fund 
(PSPF) and the Local Authority Superannuation Fund (L ASF), both have continuing deficits that are 
projected to climb sharply over the medium term.  The eight insurance companies and various other 
financial institutions, which include leasing compan ies, microfinance institutions (MFIs), building 
societies, and one development finance institution, together account for about 9% of total financial 
system assets. 
Table IV.8 
Structure of non-bank fina ncial institutions, 2005-06 
 Number Per cent of total financial 
assets Per cent of GDP 
Pension funds 21 21.5 7.9 
Insurance companies 8 3.7 1.3 
Other NBFIs  5.1 1.9 
Leasing companies 9 1.8 0.7 
Microfinance institutionsa 12 1.0 0.4 
Building societies 3 0.8 0.3 
Savings and loans 1 0.6 0.2 
Development finance institutions 1 0.6 0.2 
Other NBFIs .. 0.2 0.1 
.. Not available. 
a Covers seven institutions registered by the Ba nk of Zambia and six of  about 50 other NBFIs. 
Source:  Based on data provided by the Zambia n authorities;  and IMF (2008), " Zambia:  Selected Issues", Country Report 
No. 08/29, p. 32. Zambia WT/TPR/S/219/Rev.1 
 Page 65 
 
 
55. The Pensions and Insurance Authority (PIA) was established after the enactment of the 
pensions Scheme Regulation Act No. 28 of 1996 and the Insurance Act No. 27 of 1997 to provide 
regulation and supervision of pens ion and insurance schemes.  In 2005, regulations were introduced 
that require life and non-life insuran ce companies to be separated.   
56. Although the Zambian insurance market (life and non-life) was liberalized in the early 1990s, 
introducing competition to the (still) state-owned Za mbia State Insurance Corporation (ZSIC), the 
sector  remains stagnant.  ZSIC holds under 25% of the market in terms of gross written premiums. The market is dominated by locally owned comp anies while five foreign-owned companies account 
for about 16% of premium income.
27  Multinational companies operating in Zambia normally obtain 
their insurance elsewhere, usually South Africa.  In principle, cross-border purchasing of insurance 
services is not permitted but if proof can be furnis hed that the type of insurance required is not 
available in Zambia, permission to do so may be sought from the PIA. 
(c) Financial Sector Development Plan 2004-09 
57. The FSDP is a comprehensive response to th e stability and development needs of the 
financial system.  According to the Bank of Zambia "the vision of the FSDP is to create a stable, 
sound and market-based financial system that will s upport the efficient mobilization and allocation of 
financial resources necessary to achieve economic di versification, sustainable growth and poverty 
reduction".28 The plan is designed to reform the re gulatory and supervisory system, promote 
competition to foster growth and expansion of affo rdable financial services;  and reinforce the legal 
and informational infrastructures that are key to  the growth of financial intermediation.  
58. Reforms aim to:  (1)  Strengthen regulation to  make the Bank of Zambia (BoZ) independent 
and strengthen bank supervision; establish an aut onomous Pensions and Insurance Authority (PIA)29, 
with adequate funding to exercise its supervisor y responsibilities;  consider proposals for putting the 
National Pension Scheme Authority under an indepe ndent regulator;  reduce legislation to strengthen 
the Securities and Exchange Commission with a sustainable funding base, and introduce risk 
management systems and implement Basle II.  (2) Encourage competition in order to lower costs and 
widen access to financial services include promoti on of a second tier of banks and formulation of a 
scheme to provide financial services to the rural population.  The cash reserve requirement, which was high by regional standards, was reduced from 14% to  8% in October 2007 to lower the cost of funds 
to banks.  New regulation is to be introduced to  encourage the development of MFIs, which were 
viewed as central to the strategy for expanding credit to small and micro enterprises and the rural 
sector.  (3) Harmonize all legislation relating to the financial sector and legislative initiatives on 
money laundering, credit bureau services, consumer  protection, the payments system, and deposit 
protection.  Harmonization of legislation involves:   reviewing the Banking and Financial Services Act 
and harmonizing other laws to avoid inconsistencies with the Act;  dr afting repeal and/or transitional 
legislation for three NBFIs (Development Bank of Zambia, Zambia National Building Society and the 
National Savings and Credit Bank) and incorpora ting them under the Companies Act;  and drafting 
new legislation relating to rural finance,  housing finance and development finance. 
                                                     
 
27 Foreign firms must be incorporated locally to open a branch and meet a number of minimum 
requirements, including:  declaration of minimum capita l, evidence of reinsurance programme, paid-up capital 
of K 1 billion and licence fee of K 1.8 million.  Foreign insurers are not allowed to advertise their services in 
Zambia. 
28 Bank of Zambia (2008b), p. 1. 
29 Regulations relating to the Pensions and Insurance Levy 2007 came into effect in December 2007, 
designed to enable the Pensions and Insurance Authority to raise funds for enhancing its operations (Bank of Zambia, 2008a, p. 49). WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 66 
 
 
59. A notable achievement was the licensing of a credit bureau30 in January 2006, after the BoZ 
had developed the necessary guidelines.  The cred it bureau is a critical step to improve market 
information and strengthen the credit culture.  Th e plan is to start the bureau with negative 
information on defaulters but to move when techni cally feasible to include positive information to 
help clients with a clean credit history to benefit from the expanding services and lower costs. 
Progress has also been made on introducing a paym ents system law to underpin the continuing 
modernization; adoption of international accoun ting guidelines for banks and NBFIs, which will 
strengthen the integrity of financial reporting; and issuance by the BoZ of corporate governance guidelines to banks and NBFIs that lay down sta ndards for management based on best practice.
31    
(ii) Telecommunications  
60. Since 2002, despite the existence of competition in  mobile and internet services, Zambia has 
continued to fall behind regiona l standards in terms of providing access to telecommunications 
services to its citizens and businesses and in terms of  competitive prices for key services.  According 
to the authorities, the sector is characterized by high costs and low quality of service.  To promote 
Zambia's international competitiven ess, the Government is removing ba rriers to entry in the sector by 
reducing international gateway licence f ees to regional averages (Table IV.9). 
Table IV.9 
Telecoms data, 2000 and 2006 
 Zambia Sub-Sahara n Africa region 
 2000 2006 2006 
Economic context    
Population (million) 10 12 782 
Urban population (% of total) 35 35 36 
GDP growth, 1995-2000 and 2000-06 (avg. annual %) 2.2 5.0 4.7 
Sector structure    
Separate telecommunications regulator Yes Yes  
Status of main fixed-line tele phone operator Public Public  
Level of competition (competition, partial comp., 
monopoly)    
International long distance service M M  
Mobile telephone service C P  
Internet service C P  
Sector performance    
Access    
Telephone mainlines (per 100 people) 0.8 0.8 1.0 
International voice traffic (minutes per person)a 4 7 .. 
Mobile telephone subscribers (per 100 people) 0.9 14.2 13.5 
Population covered by m obile telephony (%) 51 65 .. 
Internet users (per 100 people) 0.2 4.3 3.8 
Personal computers (per 100 people) 0.7 1.1 1.8 
Households with a tele vision set (%)  23 .. 14 
Quality    
Telephone faults (per 100 mainlines) 90.9 108.0 .. 
Broadband subscribers (per 100 people) 0.00 0.02 0.03 
International Internet ba ndwidth (bits per person)  0 11 5 
Table IV.9 (cont'd) 
                                                      
30 The Credit Reference Bureau Afri ca Ltd is the first credit bureau to provide credit referencing 
services in Zambia and the draft credit reference bill is e xpected to be submitted to the Ministry of Finance and 
Planning in 2009. 
31 Issued in 2006 following the Lusaka Stock Exchange Corporate Governance Code (205) for 
companies listed on the Stock Exchange. Zambia WT/TPR/S/219/Rev.1 
 Page 67 
 
 
 Zambia Sub-Sahara n Africa region 
 2000 2006 2006 
Affordability    
Price basket for residential fixe d line (US$ a month) 4.6 7.7 11.6 
Price basket for mobile telephone service (US$ a month) .. 14.2 12.3 
Price basket for Internet service (US$ a month) .. 33.3 15.9 
Price of call to United States (US$ for 3 minutes) 2.57 1.41 2.43 
Institutional efficiency and sustainability    
Telecommunications revenue (% of GDP) 2.0 2.5 3.2 
Telephone subscribers per employee 59 175 586 
Telecommunications investment (% of revenue) 12.3 29.3 .. 
 
.. Not available.  
a Outgoing and incoming. 
 Notes: C = Competition;  GDP = Gross domestic product;  ICT = Information and communication technology;  M = Monopoly;  and 
P = Partial competition. 
Source: World Bank (2007), ICT at a Glance.  Viewed at:  http://devdata.w orldbank.org/ict/zmb_ict.pdf.  
61. The 1994 Telecommunications Act divided th e public Post and Telecommunications 
Corporation (PTC) into Zamtel and Zampost, and ope ned the fixed and mobile sectors to private and 
foreign competition.32  The Communications Authority of Zambia (CAZ) was established in 1995 by 
the Telecommunications Act in order to regulate the provision of telecom services in Zambia.  It is empowered to prescribe rules and regulations fo r the operations of licensees and suppliers of 
telecommunications equipment.  Zamtel has not been relicensed and so is not subject to CAZ 
regulations. 
62. Fixed lines are currently provided by the state operator Zamtel, which remains 100% publicly 
owned.  In 2002, entry into the provision of intern ational services opened with licences to be allocated 
through competitive tender but a licence fee wa s set at K 300 million (later reviewed to 
US$12 million).  In practice, the prohibitively high licence fee (compared with an average in several 
neighbouring countries of between US$50,000 and US$100 ,000) acts as an effective barrier to entry 
for new operators.  In the fixed-line sector, call-b ack services and voice over internet protocol (VoIP) 
are illegal, and there are high access charges for call termination through the incumbent.  Although 
there is no foreign investment in the sector, privat e and foreign ownership are permitted, in principle, 
based on a policy that at least 30% of equity must be domestically owned.   
63. With only three lines per 100 people, Zambia's fixed-line teledensity remains at half the 
regional average in sub-Saharan Africa.  The fixe d line network has grown only slowly, from 76,000 
in 1995 to 91,000 in 2007 for a population of more than 11 million people.  Nearly 80% of fixed lines 
are located in Lusaka and the Copperbelt (where 30%  of the population resides) while only 0.3% of 
Zambia's rural households (accounting for 65% of th e population) own a telephone.  According to the 
World Bank, the cost of an international call is hi gh in comparison to other African countries because 
all international calls must pass through Zamtel's international voice gateway.  In 2006, a 3-minute 
call from Zambia to the United States cost US$3.45 (after a 40% price drop in early 2006) compared with 81 cents and 84 cents in Ghana and South Africa respectively.
33  Now a 3-minute call from 
Zambia to the United States costs US$2.52 peak and US$1.89 off-peak. 
                                                      
32 Until 1994, PTC was the exclusive provider of telecom and postal services, and regulated the sector 
under the 1984 Postal and Telecommunications Act. 
33 All price and teledensity data in this section is from Mattoo and Payton (2007), pp. 103-107. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 68 
 
 
64. Cellular telephony was introduced to Zambia in 1995 by Zamtel, which owns Cell-Z.  In 1996 
and 1998 licences were issued to two competing private mobile phone operators, Kuwait-owned 
Celtel and South African-owned MTN (formerly Telecel).34  The two foreign-owned cellular 
companies have an estimated 90% share of the ma rket, with Celtel (now Zain) accounting for around 
70%.  The nine provinces in Zambia receive tele phone coverage and one of  the cellular providers, 
Celtel, has extended its network to all 72 districts in  Zambia.  MTN is planning to follow suit.  Cell Z 
is also expanding its rural network.  The mobile -phone sector in Zambia boomed during the review 
period with competition between the three providers resulting in major improvements in coverage and 
quality together with significantly lower prices.  As a result, the total subscriber base has registered 
strong growth, increasing from 2.4 million in 2006 to  3.5 million by 2008.  Nevertheless, the 2006 
access rate in Zambia (5 per 100 inhabitants) lagge d considerably behind that of the SADC region 
(22 per 100) or Africa (15 per 100).  The access ra te in Zambia is now 14.4 per 100 inhabitants 
according to the authorities. 
65. Internet service provision was lib eralized under the 1994 Act and Internet Service Providers 
(ISPs) are licensed and regulated by CAZ.  ISPs ma y operate their own intern ational data gateway for 
data but not for voice communications.  There is no restriction on foreign investment and the ISP 
entry licence fee is K 20,000 plus a 5% annual regulatory charge.  In recent years, several private operators have begun offering internet access servic es; both on a dial-up and a leased-line basis and 
Zamtel also offers an internet access service.  Foreign ownership is limite d to part foreign-owned 
Microlink.  An additional six ISPs were register ed in 2006 bringing the total to 14.  However, the 
number of subscribers remained largely unchanged at  16,518, as prices remain high mainly due to the 
poor fixed-line infrastructure coupled with high bandwidth and CPE prices. 
(iii) Transport 
66. According to data from the Zambian Revenue Authority,
35 the total volume of Zambian 
regional and international trade was 4.1 million tonne s in 2005, made up of 2.3 million of imports and 
1.6 million of exports.  Zambia’s main trading partner – South Africa – accounts for 44% of the 
estimated total freight traffic, with the DRC and Zimbabwe accounting for about 9% and 8% 
respectively.  Road transport is the dominant mode in Zambia with a share of about 71% of Zambia’s 
trade in volume terms36;  24% is carried by rail and most of the remainder consists of oil imports by 
pipeline from Dar es Salaam.  High value mining and agricultural goods (cobalt and fresh/frozen products) are generally transported by air freight.  
67. While Zambia is among the most distant landl ocked countries from major ports, such as 
Durban – the preferred port of entry in the sub-re gion – it benefits from competitive road transport 
services, illustrating the importance of regional lib eralization for the efficiency of trucking 
companies.
37  COMESA and SADC have focused on li beralizing market access for carriage of 
international road freight and harmonizing rules to ensure interoperability in member states.  
                                                      
34 A licence was also issued in 2001 to Vodacom, which has not started operations because of 
disagreements over its spectrum allocation.   
35 World Bank (2008d)  p. 4, January. 
36 The main products transported by road within Zambia are: mining products (both inputs and outputs: 
ores, concentrates, metals, sulphur, sulp huric acid, coal); agricultural  produc ts (sugar, tobacco, cotton);  fuels 
(diesel and petrol) and food (bulk grain). 
37 The current ports serving Zambia are Dar es Salaam , Durban and Beira, providing a certain level of 
transport flexibility.  However, all the routes are long (up to  3,000 km), with long transit times (up to 10 days by 
road and 25 days by rail) and are relatively expensive (on average US$50-160/tonne).  The Zambia-South Africa 
road corridor through Zimbabwe is the most important transport route for Zambia going through Beit Bridge, Chirundu, and Kasumbulesa. Zambia WT/TPR/S/219/Rev.1 
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Competition in trucking services contributes to lower transport tariffs and increases transport quality.  
The tariffs are all deregulated with road and railway  tariffs largely similar, and influenced by the 
demand and the existence (or lack of) compe tition between operators and transport modes. 
68. Transport costs are high, and therefore a barrier  to trade, partly because Zambia is land-
locked, but also because of inefficiencies and structural weaknesses in the transport network. 
Transport costs are estimated to add as much as 17% to import costs which is three times higher than the amount in most developed countries but comparable with most landlocked countries.
38  Zambia 
has an estimated 37,000 km of roads, of which about 6,600 km are tarred with the road network characterized by the Government as "generally ba d".  In 1998, the National Roads Board launched a 
US$1 billion investment programme for the road sector, to run for ten years.  The first phase closed at 
the end of 2002.  Since then, the Government has continued constructin g, rehabilitating, and 
maintaining the road infrastructure.  Government policy is to reverse the trend of the decay of 
transport infrastructure, particularly for roads, and the Government intends to direct substantial funds 
to this end.  Its policy of extending private-sector  involvement to the rail network is already far 
advanced and is set to continue. 
(a) Road transport 
69. A number of agencies were created in 2004 unde r the Ministry of Works and Supply.  Among 
the most important is the Roads Development Ag ency, established through the Public Roads Act 
No. 12 of 2002, which manages all roads in Zambia .  The National Road Fund Agency administers 
the road fund, under the National Road Funds Act No . 13 of 2002.  As provided for in Act No. 11 of 
2002, road transport in Zambia is controlled and re gulated by the Road Transport and Safety Agency 
(RTSA), which is in charge of vehicle testing, co llection of road licence fees and road user fees, 
enforcement/fines and the issuing of cross border-per mits, which are issued at the border for a limited 
period of time. 
70. The permits are based on bilateral agreements;  Zambia has concluded bilateral agreements 
with Malawi, Mozambique, Zimbabwe, Namibia,  Botswana, and South Africa to facilitate 
international transportation.  SADC states have c oncluded bilateral agreements dealing mainly with 
market access in respect of international tr ansport on all major corridors of the sub-region. 
71. Cabotage is prohibited in Zambia and most of the SADC countries.  The RTSA does not issue 
cabotage permits, which ensures that Zambian tr ucking companies operating on the domestic market 
are protected from foreign competition.  However, several (mainly South African) companies bypass 
this rule by investing in trucking companies in Za mbia.  Several large trucking companies registered 
in Zambia are controlled or owned by South African companies.  Zambia’s road freight industry faces 
competition from other southern African operators w ith several foreign trucking companies operating  
extensively along Zambian main transport corridors.  The market is therefore highly competitive, with 
Zambian trucking companies’ market share estimated to be of the order of 40%. 
72. Zambia is signatory of several international ag reements on transport, the most important of 
which are the SADC Protocol on Trans port, Communications and Meteorology
39 and Chapter Eleven 
of the COMESA Treaty on Co-operation in the De velopment of Transport and Communications.  The 
SADC Protocol and the COMESA Treaty contain a road transport facilitation programme, which 
Zambia has largely implemented, covering harmoni zed road transit charges (US$10 per 100 km), 
                                                      
38 World Bank (2008d).  According to the FNDP (p. 84), 17% of Zambia's export earnings are spent on 
transport-related costs. 
39 The SADC Protocol on Transport, Communications and Meteorology sets out liberalization plans in 
three stages.  Viewed at:  http://www.tra nsport.gov.za/library/docs/misc/sadc.htm. WT/TPR/S/219/Rev.1 Trade Policy Review 
Page 70 
 
 
maximum axle load limits, the maximum length of commercial vehicles (22.0 m), the COMESA 
carrier licence and transit plates, and use of  the high frequency X-border Land Mobile Radio 
Communications System.  SADC members are progressively introducing measures to liberalize their market access policies in respect of cross-border carriage of goods.  The Protocol encourages its 
members to conclude appropriate bilateral agreem ents as a step towards implementation of fully 
liberalized access to the regional road transpor t market.  The agreements between Zambia and 
Zimbabwe and South Africa include the use of the si ngle permit system.  All the agreements are based 
on non-discrimination, reciprocity, and extra-territorial jurisdiction.  
73. According to the World Bank
40, there is only limited scope for reducing costs on the 
international trade routes through further liberaliz ation.  The main measures to increase trucking 
competitiveness in the sub-region would derive from easing national obstacles such as improving 
border-post operations and reducing fuel costs in Zambia.41 
(b) Railway transport 
74. The total traffic carried by Zambia railways has fallen from more than 6 million tonnes of 
freight per year in 1975, to 4.5 million in 1988, to under 1.5 million in 1998 and to around 
1.3 million tonnes by 2008.  For such low volumes, the minimum required railway tariffs to achieve 
financially viable operations are higher than the equiva lent road tariffs with longer transit times.  This 
is partly due to the perception of rail trans port as unreliable due to derailments, low wagon 
availability, and longer shipping times. 
75. The Zambian railway network c onsists of two systems:  Zambia Railways Limited (ZRL), 
which signed a concession agreement with Railway Systems of Zambia (RSZ) in 2003, and the 
Tanzania-Zambia Railway System (Tazara). 
76. Railway Systems of Zambia (RSZ), which ope rates Zambian Railways following a 20 year 
concession agreement signed in February 2003, has a rail network of 1,100 km of track.  The RSZ 
management concession, owned by a consortium of two South African companies, has performed below expectations, with regular complaints raised  regarding poor service a nd lack of improvement.  
RSZ has committed itself to invest US$60 million dur ing the duration of the concession, of which 
US$40 million in the first 5 years.  The money is to  be spent mainly on rehabilitation of the existing 
network and the rolling stock.  RSZ is payi ng a US$1.5 million concession fee per year. 
77. Tazara  is jointly owned by the governments of  Zambia and Tanzania, and was initially 
financed by China in 1975.  It is the main route for the transport of Zambia's copper cathode to 
Europe, China and the United States via the port of Dar es Salaam, but has recently been losing 
market share to Beira and Durban .  The decline in trade through Dar es Salaam has put pressure on 
Tazara.  Tazara is a classic parastatal, where overstaffing and weak management have kept service 
delivery poor.  Currently, the Government is explor ing ways to improve Tazara's performance through 
the identification of a strategic private partner.  
                                                     
 
40 World Bank (2008d)  p. 24 notes that regulatory regimes and efficiency of logistics services in 
Southern Africa are the most advanced  in Africa.  Average transport pri ces per tonne/km in the North-South 
Corridor of Southern Africa are estimated to be between one-fifth and one-half of those in West Africa (Lomé-
Ouagadougou), East Africa (Mombasa-Kampa la) or Central Africa (Douala-Chad). 
41 Zambia's retail petroleum prices (which are not subsidised) are among the highest in the region. Zambia WT/TPR/S/219/Rev.1 
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(c) Air transport 
78. Zambia's aviation market is one of the smallest of the Southern African continent.  Currently, 
there are 144 airports/air strips in Zambia;  the state-owned National Airpor ts Corporation manages 
the four major airports: Lusaka, Ndola, Livingstone and Mfuwe.42  The passenger movements at the 
four airports amounted to 1.2 million in 2008, of wh ich 78% were internationa l arrivals;  traffic at 
Zambian airports grew by 12% between 2007 and 2008.  The air cargo market plays a significant role for the country's exports of perishable products, su ch as cut flowers and vegetables, which are mostly 
destined for Europe.  
79. Zambia’s Air Transport Policy is defined in its National Air Transport Policy paper
43, 
published by the Ministry of Communications and Tr ansport in 2002.  Recognizing the importance of 
air transport for the development of the economy,  the policy paper argued that the air transport 
industry is small due to poor infrastructure, small passenger loads, and the lack of properly managed 
tourist destinations.  The implementation of the ai r transport strategy has made modest progress in 
terms of policies to create a competitive and liber alized environment (including the assignment of 
international traffic routes) and to ensure effective regulation (based on ICAO international 
standards). 
80. Zambia has fully privatized its air servi ces, following the liquidation of the loss making 
Zambia Airways in 1994 and the liberalization of entr y into its market.  Zambia Airways had been the 
only airline operating and was the only designated carrier in bilateral air service agreements 
(BASAs).44  After 1994, BASAs were renegotiated and no longer specified a single carrier.  There has 
been no change to regulation since the Civil Avia tion department was created (before independence) 
by the Civil Aviation Act in 1954.  There are around 15 private airlines, but Zambian Airways, 
formed in 1999, has become the de facto national carrier, although it only operates within the region.  
As of early 2009 Zambian Airways was grounded.  Va rious African airlines fly to Lusaka, but only 
British Airways operates intercontinental flights.  There is little practical competition and airfares in 
and out of Zambia are expensive with high oper ating costs driven by high jet fuel prices. 
(d) Maritime inland waterway transport 
81. Under the Merchant Shipping Act, the Depa rtment of Maritime and Inland Waterways 
monitors Zambia’s involvement in maritime shippi ng activities.  Zambia depends on foreign shipping 
lines for the transportation of its imports and e xports.  Zambia has one main inland port in 
Mpulungu45 at Lake Tanganyika enabling it to trade wi th other countries bordering Lake Tanganyika 
like Tanzania, DR of Congo and Burundi.   
                                                      
42 Of the country’s four main international airports, Lusaka acco unts for about 60% of all passenger 
movements, followed by Livingstone with 23%, Ndola with 11%, and Mfuwe with 3%.  Flight services have 
increased in recent years, particularly through Ndola, reflecting the revival in copper mining. 
43 Key objectives outlined in the National Air Transport Policy include:  creation of a competitive and 
liberalized environment;  ensuring effective regulation, based on international standards (ICAO);  ensuring safe, 
efficient, and cost-effective services;  promoting air tr ansport through trade and development;  attracting private 
investment in airports and airlines; and protecting the domestic market, while supporting Zambian carrier in 
obtaining equal international traffic rights. 
44 Zambia has signed over 70 BASAs of which only eight are currently in use, the most important 
bilateral relationship being with South Africa.  In practice, denial of fifth freedom rights under the BASAs 
continues in both Zambia and partner countries.  There are no formal ownership restrictions. Airlines must be 
incorporated and have their principal place of business in Zambia to be a designated carrier.  There are no 
formal restrictions on foreign owne rship but the directorship of the co mpany must by 50% Zambian according 
to the Department of Civil Aviation. 
45 The harbour was concessioned to a private consortium – Mpulungu Harbor Management Limited 
(MHML) in September 2000. The port capacity sin ce than has increased to 70,000 tonnes per year. WT/TPR/S/219/Rev.1 Trade Policy Review 
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(iv) Tourism 
82. Tourism is becoming an increasingly important fo reign-exchange earner, although it currently 
contributes only around 4% of Zambia’s GDP.  Growth in the sector is seen by the Government as having great potential for diversifying the Zamb ian economy and attaining broad-based economic 
growth.  The number of tourist arrivals increas ed from 577,000 in 2003 to 769,000 in 2008 (with 47% 
from Southern Africa and 23% from Europe), while  tourism receipts rose from US$148.8 million  to 
US$200 million the same period by when there were  an estimated 24,300 employed in the sector.
46 
Also, according to the authorities, a key policy mi lestone was the enactment in 2007 of the Tourism 
and Hospitality Act No. 23 and the Zambia Touris m Board Act No. 24 to provide a better regulatory 
framework for private-sector participation in tour ism development.  According to the Government, 
currently the major challenges in tourism have been  inadequate infrastructure and service delivery, 
and limited marketing activities.  To meet these challenges the Government increased the allocation 
for tourism in 2009 to K 78 billion from 26 billion in 2008. 
83. In recent years, the industry has suffered from poor management during which time Zambia 
was eclipsed as a tourist destination by every other country in the region, with the exception of 
Malawi and countries at war.  The 2005 budget speech  acknowledged that the potential of the tourism 
sector was not being fully exploited because of re latively poor infrastruct ure, especially in the 
majority of the national parks, and excessive administrative burdens.  Currently, six public bodies47, 
and more than a dozen private bodies48, are involved in the sector’s management, seemingly with only 
limited efforts at coordination.  Surveys of tour ism businesses have reportedly found that as many as 
90% these bodies may be "unprofessional, obstruc tive, inefficient and unpredictable".49  Nevertheless, 
among significant initiatives the Tourism Developmen t Credit Facility, launched in 2004, facilitated 
private-sector interest in rapidly building tour ism infrastructure such as lodges, guesthouses, and 
camping sites.  
84. Zambia and Zimbabwe boast one of the great tour ist attractions of the world in Victoria Falls, 
on the Zambezi river on their shared border, and until the recent crisis in Zimbabwe, that country 
attracted a far larger share of the tourists visiti ng the Falls and had the more highly developed tourism 
infrastructure.  On the Zambian side of the river,  the town of Livingstone has become the focus of 
renewed tourism development.  The number of flight s into Livingstone International Airport has risen 
appreciably and the Government has granted hot el accommodation in the Livingstone area a number 
of tax incentives including a zero rating for value-adde d tax.  Tourist interest in Zambia has expanded 
beyond Victoria Falls with tourism potential lying in  the country's diversity, including vast wildlife 
resources, numerous national parks and game manage ment areas, varied scenery, wilderness, diverse 
culture and national heritage, goo d weather and friendly people. 
85. According to the World Bank, a key priority fo r policy action is elimination of impediments 
and distortions created by regulatory policy.  Investme nt in tourism has been stifled by high costs, in 
terms of both time and money, and the lack of  predictability of licensing and administrative 
requirements to open and operate a tourism business.   The World Bank contends that up to 74 licences 
                                                      
46 Data supplied by the Ministry of Tourism, Environment and Natural Resources. 
47 Ministry of Tourism, Environment and Natural Resources,  Zambia National Tourism Board, Zambia 
Wildlife Authority, National Heritage Conservation Commission, National Museums Board, and Zambia 
National Economic and Tourism Development Committee. 
48 These include: Tourism Council of Zambia (umbrella organization), Hotel and Catering Association 
of Zambia, Tour Operators Association of Zambia, Travel Agents Association of Zambia, Livingstone Tourism 
Association, Professional Hunters Association, Wild life Producers Association, Zambia Sports Fishing 
Association, Airline Owners and Operators Association.  
49 Mattoo and Payton, p. 240, Table 6.9, and pp. 227-30. Zambia WT/TPR/S/219/Rev.1 
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are required (although no exhaustive list exists), whic h can take between six months and a year to 
obtain, and which cost a prohibitive amount for a modest guest house. 
86. An UNCTAD survey also found that a foreign investor may have to obtain an array of 
authorizations to set up a business in the tourism industry requiring several documents.50 
87. At the same time, the World Bank points out th at Zambia should rati onalize the domestic tax 
system and prevent wasteful tax competition with othe r countries in the region.  The corporate tax, at 
35%, is higher than the level in competing countri es, such as Botswana (15%), and in South Africa, 
Tanzania, and Zimbabwe (30%).  Similarly, the VAT at 16% is higher than in competing countries (10% in Botswana), as are customs and excise duties on tourism inputs (petrol is three time more 
expensive in Zambia than in South Africa, and wine  is four times more expensive).  Tourism is in 
general excluded from tax incentives provided to n on-traditional goods exporters , such as the reduced 
corporate tax (15%), although tourism in the Livings tone region is exempted from VAT.  The result is 
an accentuation of existing regional inequalities in the development of tourism. 
                                                     
 
50 UNCTAD (2006), p. 33.  Documents include:  5-year business plan; Cash flow statement or proof of 
capital requirement;  Building and or architectural plans;  Letter from promoters' commercial bank;  Financial 
and personal information about the shareholders;  Curriculum vitae of the shareholders;  Copy of the company’s certificate of incorporation; Memorandum and Articles of  Association (for limited liability companies);  Title 
deed or lease agreement Mo st recently audited accounts (for existing businesses);  Environmental Impact 
Assessment or project brief (for small companies);  No  objection letter from ZAWA (for project locating in 
Game Management Areas or National Parks);  Investment Certificate issued by the Zambia Investment Centre.