By Staff Writer | for Ganizo Magazine

As the Kazungula Bridge comes to fruition, there is need for Botswana to look into investing in Zambia.

Zambia is one of the fastest growing economies in Africa, with Lusaka posed to be a trade centre for commerce in Africa in the next ten years.

Zambia has undertaken rigorous and institutional reforms aimed at improving the attractiveness of the country to investors. Specifically, the Private Sector Development Reform Program (PSDRP) and the Millennium Challenge Account (MCA) are the two major reform programs. PSDRP addresses the issues related to cost of doing business through legislation and institutional reforms, while the MCA addresses issues relating to transparency and good governance.

Highlights of Zambia from an Investment Perspective

Over 10 years of steady GDP growth; Investors freely invest in any sector of the economy and are entitled to various incentives; Direct support by an Investment Promotion Officer (IPO) for your investment registration process and assistance with processes for all other licences and permits for your business; a Private Sector Development and Reform Program (PSDRP) continually streamlining licensing and administrative processes for the private sector resulting in Starting and registering a business can be done in one day; Private Investment is a top priority by the Government; No sectors are barred to foreign investors and no restrictions on the percentage of equity they might hold; Creation of world-class infrastructure in designated areas known as Multi Facility Economic Zones (MFEZ) to facilitate entry of businesses Development of capital markets beginning with Lusaka Stock Exchange (LuSE).

Market Access

Being a member of a number of regional and international groupings, make Zambia strategic both in its location and abundance in natural resource. These include the Common Market for Eastern and Southern Africa (COMESA), which is currently a customs union, and the Southern Africa Development Community (SADC) Free Trade Areas (FTA).

Zambia is also in the forefront in pushing for the establishment of the Tripartite Free Trade Area composed of COMESA, SADC and the East Africa Community. In addition, the Government has signed and is currently implementing a number of bilateral trade agreements such as with China, Canada and Japan. Zambia is a member of the World Trade Organization (WTO) and currently chairing the LDC group at WTO.

It is part of the Cotonou agreement and has benefited from duty-free, quota-free market access for the European market under the Generalized System of Preference (GSP) and the Everything but Arms (EBA) arrangement – and for the US market under the African Growth and Opportunities Act (AGOA). Zambia has also been negotiating for further market access through the economic partnership agreements (EPAs) under the eastern southern Africa (ESA) group with the European Union.

Source: Zambian Development Agency