Investing > US$500,000 in a priority sector or in the MFEZ shall enjoy the following incentives:

1. Investing > US$500,000 in a priority sector or in the MFEZ shall enjoy the following incentives: Zero percent tax rate on dividends for 5 years from the date of first declaration; Zero percent tax on profits for 5 years from the first year profits are made. For year 6 to 8, only 50 percent of profits are taxable and years 9 & 10, only 75 percent of profits are taxable. Zero percent import duty rate on raw materials, capital goods, machinery including trucks and specialised motor vehicles for five years. Deferment of VAT on most machinery and equipment including trucks and specialised motor vehicles Comprehensive Fiscal Regime Zambia

2. Dividends in the assembly of motor vehicles, motor cycles and bicycles exempt from tax first 5 years; • 0 – 5% Import duty on most capital goods for production and computer parts on machinery used in textiles, clothing, roofing sheets • Zero percent Duty on inputs in textiles and clothing • SMEs qualify for incentives – corporate tax 0% for 3 years for urban and 5 years for rural • Non Fiscal • Facilitation • work and immigration permits, land acquisition, secondary licenses, utilities • Stability and protection Zambia 2

3. Almost all sectors and products processed are covered Moving from primary commodities to low tech manufacturing and knowledge based economy Drive for economic diversification Mining centered on value addition Medical and education not social but economic sectors Priority Sectors – Very Wide … Zambia 3

4. Projects

5. Mining and Mineral Processing Opportunities Mineral deposits in Zambia are classified into: Base metals; Energy minerals; Precious metals; Industrial minerals; and Gemstones. Mining Zambia 5

6. Investment Opportunities:Mining & Mineral Processing Copper: copper exploration in Lusaka, North Western Central Provinces. Iron: exploration for iron in North Western, Lusaka and central provinces. Nickel: development of nickel mine at Munali Hills, near Kafue gives opportunities for further exploration . Gold:indicated in Northern Province, parts of the Katanga ore - more than 300 gold occurrences recorded:- Largest historical producers Dunrobin (990 kg; Matala (225 kg) in Mumbwa District; Jessie (390 kg) in the Rufunsa area; (iii) and Sasare (390 kg) in Eastern Zambia. Luiri Gold Mines prospecting the Mumbwa deposits - feasibility study to resume mining operations in the area. Further deposits – Chisamba (Kaputa), Mbala (Senga Hill), Lundazi (Msidza River), Nyimba, Zambezi, Lusaka (Leopards Hill)

7. Mining and Mineral Processing Only 24 % explored Opportunities in gold, copper, cobalt, uranium, zinc, nickel, substantial iron resources identified Precious stones – diamonds and emeralds occurrence indicates significant exploration potential Copper smelting capacity shortfall of ±300,000 tp.a. Zambia and overspills from DRC Tolling agreement potential high – given 15% export tax on Cu. Concentrate Industrial chemicals – limestone, Mining Zambia 7

8. Investment Opportunities:Mining & Mineral Processing Manganese: in northern and central parts of the country, all deposits with high ore content ranging between 48% and 54% Tin: Mostly from the Choma Tin Belt in Southern Province, Mporokoso, Lundazi, Mkushi Gemstones: are known to occur in many parts of Zambia joint ventures with existing small-scale operators or in green fields in Emeralds, Amethyst, Aquamarine, Tourmaline, Garnets, and Beryl.

9. Investment Opportunities:Mining & Mineral Processing Phosphates: Petauke in Eastern Province1.6m tonnes; Mumbwa at least 700,000 tonnes; Rufunsa at least 200 m tonnes; Isoka town, at least 200 million tonnes. Other Industrial minerals: Limestone – Lusaka, Kabwe, Ndola, N/Western, Northern, Luapula Ball and Brick clays – Solwezi, Serenje Silica sand – Kapiri Mposhi for Glass. Feldspar: Deposit near Siavonga and Kapiri Mposhi Dimension Stone: Grey and white marbles – Lusaka, Solwezi, Mpika, Chipata

10. Hydro-Electricity

11. Investment Opportunities:Energy Mineral & Mineral Processing Coal – Maamba area and Luangwa, Luano-Lukusashi valley, Barotse basin; Uranium – Tip of Lake Kariba and Lumwana area Petroleum - -Strong indications for oil and gas by Microbial Prospecting for Oil and Gas (MPOG) in North Western Province – Preparing for call for tenders for detailed prospecting work MPOG method xtended to the Rift Valley in Eastern Province where Mobil and Placid Oil did some work, including drilling between 1986 and 1991 Smelting facilities – current shortfall 300,000 tpa; toll treatment opportunities

12. Investment Opportunities:Manufacturing Value addition to copper Cu Tubes, Alloys, Rods, etc Cotton Clusters Cotton growing Textile Clothing Metal/Engineering works – Joint ventures Wood processing – value addition ZDA

13. Investment Opportunities:Agriculture Farm Blocs • In 2002 the government identified farming blocks in nine areas, one in each province • Each farming block to have • At least one core large-scale farm of 10 000 ha; • Commercial farms of 1 000 to 5 000 hectares; • Small holdings – sizes of 30 to 300 ha • Government to provide basic infrastructure - trunk roads, bridges, electricity, dams, schools and health centers in farm blocks

14. ICT - projects Present market Zambia 12 million – region – 400 million All ICT equipment is imported from mainly Asia Mauritius / South Africa – major competitor Semi-skilled labour, land etc Infrastructure – Multi Facility Economic Zones Accommodate – tech parks To require – skilled labour – permits obtained ICT policy aims to develop local talent in software development By ICT technology/Hub parks ICT projects Zambia

15. Technology Hub / park developmentMinistry of Communications Enterprise & software development In Multi-Facility Economic Zones Project seeks investors to develop tech parks & software development Call Centre establishment Increasingly becoming popular Several MNC’s needing to support international transactions in HR, distribution, procurement at global Location – Multi-facility Economic Zones Big corporations that could support call centre business include Lafarge, copper mines BP Plc etc Inputs labour English speaking available 2.5Gbps fibre optic fibre laid over 1,700 km by state corporations ICT projects Zambia

16. ICT – projects – Ministry of Communications Manufacture of ICT equipment TV, telephone handsets, computers Ideal in Multi-facility economic zone Labour and land available Infrastructure Rail, road and air to all destinations ICT projects Zambia

17. Investment Opportunities: Health Sector Pharmaceuticals: Only 7 Manufacturing Companies in Zambia mostly engaged in the Manufacture of Basic Pharmaceutical Formulations (Medicines). The Majority of Drugs required under the Essential Drug List are still being imported.

18. Investment Opportunities:Construction Shopping malls – Chirundu, Kasumbalesa Border Control facilities – Kasumbalesa (PPP) Toll road opportunities (PPP) Accommodation – Residential, Office and Warehousing

19. Summary Project listing available Further enquiries welcome & to be provided with project details Contacts Zambia Development Agency Email: zda@zda.org.zm Tel: 260 1 220177 Lusaka, Zambia Section heading goes here nanana