South African and
international logistics
companies are finding
it quicker and more
cost-effective to buy shares in
established Zambian firms rather
than establishing new entities.
An economic growth rate of
around 8% and diversification
of the economy into agriculture,
manufacturing and logistics
makes it an attractive destination.
Zambia has eased trade by
implementing a one-stop border
post with
Zimbabwe,
launching webbased
submission
of customs
declarations,
and introducing
scanning
machines at border posts.
These measures are in line with
the relatively new government’s
focus on attracting investment –
but it has some way to go.
While Zambia is placed fourth
in Africa on the World Bank’s
Ease of Doing Business ranking,
its global standing is 94.
South Africa is
39th, followed by
Botswana (59),
and Namibia
(87). Lesotho at
136 is the nextbest
African
country for
business after Zambia.
Investors are free to invest
in any sector of the Zambian
economy and are entitled to
incentives provided through the
Zambia Development Agency
(ZDA) Act of 2006.
The ZDA Act does
not discriminate
against foreign
investors, and no
business ventures are
reserved solely for the
government.
Companies wanting to
establish a new operation
can expect to take an
average of 17 days to
register a business.
But building that new
warehouse or truck depot
can take longer: Globally,
Zambia stands at 151 in the
ranking of 185 economies
on the ease of dealing with
construction permits.
It will also take at least 40
days to register the property.
Pulling power into the
facility will take 117 days
on average – Zambia is
ranked at at 151 out of 185
economies on the ease of
getting electricity.
And then a back-up generator
will be required for operations
relying on power.
New builds are, therefore,
designed as “green” facilities not
only to reduce the carbon footprint
of the logistics chain but also to
contain costs.
The country’s two power
companies have warned that
power prices in Zambia may need
to double by 2015 to make it viable
to build new generation capacity
and end a supply shortage
That is not the only risk facing
investors in the country.
In terms of investment risk,
Zambia is ranked at 82 out of
185 economies on the strength of
investor protection index.
Then there is the question of
taxes: Zambia stands at 47 in the
ranking of 185 economies on the
ease of paying taxes. (Third in
Africa, behind South Africa at 32
and Botswana at 39.)
On average, firms make 37
tax payments a year, spend 132
hours a year filing, preparing and
paying taxes and pay total taxes
amounting to 15.2% of profit.
INSERT 1
17 days
The average time to register a business.
INSERT 2
40 days
The time it takes to register your property.
INSERT 3
117days
Getting power into your facility.
INSERT 4
FAST FACTS:
Ease of dealing with construction
permits 151 out of 185 economies
Investment risk 82 out of 185
Ease of paying taxes
SA: 32
Botswana: 39
