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Doing Business with Zambia

A comprehensive guide to doing business, exporting, investing, and manufacturing in Zambia

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Zambia Development Agency (ZDA)

Tel: +260 211 220 177
Email: info@zda.org.zm
Web: www.zda.org.zm

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Zambia Revenue Authority (ZRA)

Tel: +260 211 382 831
Email: advice@zra.org.zm
Web: www.zra.org.zm

National Chamber of Commerce

Zambia Chamber of Commerce and Industry (ZACCI)

Tel: +260 211 253 007
Email: zambiachambers@zacci.co.zm

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance and National Planning

Tel: +260 211 253 512
Email: treasurybriefs@mofnp.gov.zm
Web: www.mofnp.gov.zm

Basic Statistics about Zambia

  • Type of Government: Presidential Republic
  • Population: Approximately 19.6 million (2024 estimate)
  • GDP: USD 27.3 billion (2023 estimate)
  • Corporate Tax Rate: 30% (varies by sector; mining companies taxed at 30% to 35%)
  • Personal Income Tax Rate: Progressive; 0% to 37.5%
  • Major Exports: Copper, cobalt, tobacco, flowers, cotton, electricity
  • Major Imports: Machinery, transportation equipment, oil, electrical equipment, chemicals

Exporting to Zambia

Exporting goods to Zambia involves several steps to ensure compliance with the country’s trade regulations, customs procedures, and documentation requirements. Below is a clear, step-by-step guide to exporting to Zambia, along with key contacts for government and related agencies.

1. Identify the Correct Tariff Code (HS Code)

  • Before exporting, identify the correct Harmonized System (HS) code for the product you wish to export. The HS code determines the customs duties, taxes, and regulations that apply to your product in Zambia.
  • You can access HS codes via the Zambia Revenue Authority (ZRA) or a trade consultant familiar with Zambian customs regulations.

Key Contact:

2. Ensure Compliance with Zambian Import Regulations

  • Zambia has specific import regulations that vary depending on the type of product being imported. Some products may require special permits or certifications, such as phytosanitary certificates for agricultural products and health certificates for food and beverages.
  • All imports must comply with Zambian Standards set by the Zambia Bureau of Standards (ZABS).

Key Contact:

3. Register with the Zambia Revenue Authority (ZRA)

  • If you are a regular exporter, you must register with the Zambia Revenue Authority (ZRA) as an exporter. This registration allows you to obtain an Exporter Identification Number (EIN), which is used for customs and tax purposes.
  • You will also need to familiarize yourself with ZRA’s customs procedures and access the ASYCUDA World System, an online platform for customs declarations.

Key Contact:

4. Check for Restricted or Prohibited Goods

  • Certain goods are restricted or prohibited from being imported into Zambia. Ensure that the goods you intend to export are not on the Zambian prohibited and restricted goods list.
  • For restricted goods, you will need to obtain the appropriate licenses or permits from the relevant Zambian authorities before exporting.

Key Contact:

5. Prepare the Required Export Documentation

  • Proper documentation is critical for a smooth customs process. The following are the key documents required for exporting to Zambia:
    1. Commercial Invoice: Specifies the description, quantity, and value of the goods.
    2. Packing List: Details the contents and packaging of the shipment.
    3. Bill of Lading or Airway Bill: For sea and air shipments, respectively.
    4. Certificate of Origin: Confirms the country of origin of the goods, which may affect tariffs.
    5. Import Declaration Form (IDF): Required by the Zambian importer, this form must be filed with ZRA.
    6. Export Permit (if applicable): Some products, like minerals or agricultural products, may require export permits.
    7. Phytosanitary Certificate (for agricultural products, if applicable): Issued by your country’s relevant authorities to confirm the goods meet sanitary requirements.

6. Arrange for Freight and Logistics

  • Once your documentation is in order, arrange for the transportation of goods. Depending on the nature of your goods, you may choose air freight, sea freight, or road transport. Zambia is a landlocked country, so most sea freight will go through ports in South Africa, Mozambique, or Tanzania, and then travel by road or rail into Zambia.
  • Ensure that you work with a reliable freight forwarder who is familiar with shipping goods to Africa, and particularly to Zambia.

Key Contacts for Ports:

7. Submit a Customs Declaration via ASYCUDA

  • The Automated System for Customs Data (ASYCUDA) is the platform used by ZRA for customs declarations. Your importer or clearing agent in Zambia must submit the relevant customs declaration on the system.
  • Ensure that all necessary documents are uploaded, including the Commercial Invoice, Bill of Lading, and Certificate of Origin.

Key Contact:

8. Pay Duties, Taxes, and Fees

  • Zambia imposes import duties, VAT, and other taxes on imported goods. The applicable fees will depend on the product’s HS Code and other factors such as the country of origin.
  • Common Taxes:
    • Import Duty: Varies based on the product.
    • Value-Added Tax (VAT): Typically 16% on most goods.
    • Excise Duty: Imposed on specific goods such as alcohol, tobacco, and fuel.
  • Your Zambian importer or customs agent will be responsible for paying these duties before the goods are released.

Key Contact:

9. Clear Goods through Customs

  • Once the customs declaration is submitted and duties are paid, ZRA will inspect the shipment to ensure compliance with Zambian regulations. If everything is in order, the goods will be cleared for entry into Zambia.
  • Inspections may include document verification, physical inspection of the goods, or testing for compliance with Zambian standards.

Key Contact:

10. Work with a Local Importer or Distributor

  • To effectively market and distribute your products in Zambia, consider partnering with a local importer or distributor who understands the market, local regulations, and customer preferences.
  • Having a reliable local partner can help streamline the customs process, reduce logistical challenges, and improve your business’ presence in Zambia.

Importing into Zambia

Importing goods into Zambia requires following specific procedures to ensure compliance with the country’s customs regulations, payment of duties, and proper clearance of goods. Below is a step-by-step guide to help businesses and individuals import goods into Zambia, along with key government contacts for further assistance.

1. Register for a Taxpayer Identification Number (TPIN)

Before importing goods into Zambia, you must register with the Zambia Revenue Authority (ZRA) for a Taxpayer Identification Number (TPIN). The TPIN is essential for customs declarations and tax-related transactions.

  • How to Register:
    Visit the ZRA TPIN Registration Portal to complete the registration process.Key Contact:

2. Identify the Correct Tariff Code (HS Code)

You must determine the correct Harmonized System (HS) Code for the goods you wish to import. The HS Code is crucial for determining applicable customs duties, import taxes, and any specific regulations related to the goods.

  • How to Identify:
    You can access the Zambian Customs Tariff information via the ZRA website or consult a customs clearing agent to assist in identifying the correct HS Code.Key Contact:

3. Verify Import Restrictions and Permits

Some goods may be subject to import restrictions or may require special permits from Zambian authorities. It is crucial to check if your goods require any permits, licenses, or certifications before importation.

  • Restricted Goods:
    Certain items such as firearms, pharmaceuticals, agricultural products, and chemicals may require permits from the respective government bodies.

    • Phytosanitary Certificate: Required for agricultural products.
    • Health and Safety Certificates: Required for food, pharmaceuticals, and cosmetics.

    Key Contacts:

4. Engage a Licensed Customs Agent

It is highly recommended to work with a licensed customs clearing agent who is familiar with Zambian customs regulations. A clearing agent will assist with preparing and submitting documents, calculating duties and taxes, and ensuring that your goods are properly cleared through customs.

  • How to Find a Licensed Agent:
    You can find a list of registered customs agents on the ZRA website or consult with trade associations in Zambia.Key Contact:

5. Prepare the Required Documents for Importation

To import goods into Zambia, you need to prepare and submit several documents to ZRA. These documents must be accurate and complete to avoid delays during customs clearance.

  • Required Documents:
    1. Commercial Invoice: A detailed list of the goods being imported, including descriptions, quantities, and values.
    2. Bill of Lading / Airway Bill: Proof of shipment via sea or air.
    3. Packing List: A detailed list of the contents of the shipment.
    4. Certificate of Origin: Confirms the origin of the goods and may affect the applicable tariffs.
    5. Import Declaration Form (IDF): Declares the goods being imported.
    6. Permits and Certificates: Any required permits or certificates, such as phytosanitary or health certificates, depending on the product.
    7. Insurance Certificate: If applicable, proof of insurance for the shipment.

6. Submit a Customs Declaration via ASYCUDA World

All import declarations in Zambia are processed through the Automated System for Customs Data (ASYCUDA World). Your customs agent or importer must submit the relevant documentation and complete the customs declaration through this online platform.

  • How to Access ASYCUDA World:
    The ASYCUDA system is accessible on the ZRA website. Ensure that all required documents are uploaded to the system, and a customs declaration is submitted before the goods arrive at the port of entry.Key Contact:

7. Determine and Pay Customs Duties and Taxes

Zambia imposes various customs duties, taxes, and fees on imported goods. The applicable rates depend on the HS Code of the product, its value, and its country of origin.

  • Common Import Taxes:
    • Import Duty: Varies based on the goods classification.
    • Value Added Tax (VAT): 16% on most imports.
    • Excise Duty: Applies to certain goods, such as alcohol, tobacco, and fuel.
    • Customs Processing Fee: A fee charged for processing the customs declaration.

    How to Calculate Duties:
    Your customs agent will calculate the applicable duties and taxes based on the HS Code and the value of the goods. All duties must be paid before the goods can be cleared through customs.

    Key Contact:

8. Clear Goods through Zambian Customs

Once the customs declaration has been submitted and duties paid, the ZRA Customs Office will inspect the goods. This may include both physical inspection and document verification to ensure that the goods comply with Zambian regulations.

  • Inspection Process:
    Customs officers may choose to physically inspect the goods to verify that the description in the documents matches the shipment. If everything is in order, the goods will be cleared for entry into Zambia.Key Contact:

9. Arrange for Local Transportation and Distribution

Once the goods have been cleared by customs, you will need to arrange for local transportation to your final destination. Most imports enter Zambia by road, and there are several logistics companies that specialize in moving goods within the country.

  • Logistics and Transportation:
    Ensure that you work with a reputable logistics provider to avoid delays and ensure that your goods reach their intended destination safely. If the goods are being imported from a nearby country, cross-border road transport is a common method.

10. Post-Import Compliance and Record-Keeping

After importing goods, ensure that you maintain proper records of all customs declarations, invoices, and payments. ZRA may conduct audits, and it is important to have all required documents readily available.

  • Retention of Records:
    Importers are required to retain all import-related documentation for a minimum period of 5 years. This includes invoices, customs declarations, and proof of payment of duties and taxes.Key Contact:

Investing / Incorporating in Zambia

Incorporating a company in Zambia involves several steps that must be completed with relevant government agencies. Below is a clear, step-by-step guide to help you navigate the process of company registration, along with the current costs and key contacts for government agencies.

1. Determine the Type of Company

Before starting the registration process, you need to decide on the type of company you wish to incorporate. The most common types of companies in Zambia are:

  • Private Limited Company (Ltd): The most common form for small and medium enterprises.
  • Public Limited Company (PLC): Ideal for larger businesses planning to raise capital through public offerings.
  • Non-Profit Organization: For charitable organizations.
  • Branch Office: For foreign companies looking to set up operations in Zambia.

Key Consideration:
Most businesses in Zambia are registered as Private Limited Companies (Ltd), which require a minimum of one shareholder and one director.

2. Reserve a Company Name

The first official step in incorporating a company is to reserve a company name. The name must be unique and distinguishable from existing companies. You can check the availability of your desired company name through the Patents and Companies Registration Agency (PACRA).

  • Process:
    Submit a Name Clearance Form (Form 1) online or at a PACRA office to reserve the company name.
  • Cost:
    ZMW 83 for name reservation (approximately USD 5).Key Contact:

3. Prepare the Required Documents

To complete the incorporation process, you will need to gather and prepare the required documents. These typically include:

  • Application for Incorporation (Form 2): Includes details of the company structure, directors, and shareholders.
  • Articles of Association: Outlines the company’s regulations and governance.
  • Declaration of Compliance (Form 11): Signed by a lawyer or a person authorized to register companies in Zambia.
  • Company Constitution (optional): This document can be submitted if the company has specific regulations that differ from the model articles of association.
  • Shareholders’ Details: A list of shareholders, including their names and identification documents (passport or national ID).

4. Submit the Incorporation Documents to PACRA

After preparing the required documents, submit them to PACRA either online or in person at any of their service centers. The submission will be reviewed, and if all documentation is in order, PACRA will proceed with the registration.

  • Cost:
    ZMW 750 (approximately USD 37) for registering a Private Limited Company. The fee may vary depending on the type and size of the company.
  • Processing Time:
    The registration process typically takes between 3-5 working days.Key Contact:

5. Obtain a Taxpayer Identification Number (TPIN)

Once the company is incorporated, you must register it with the Zambia Revenue Authority (ZRA) to obtain a Taxpayer Identification Number (TPIN). The TPIN is required for tax filings and other official transactions.

  • Process:
    Complete the TPIN registration form and submit it online via the ZRA TPIN Registration Portal.
  • Cost:
    No cost.Key Contact:

6. Register for VAT (If Required)

If your company’s annual turnover is expected to exceed ZMW 800,000 (approximately USD 40,000), you are required to register for Value Added Tax (VAT). VAT registration is done through the ZRA.

  • Process:
    Submit the completed VAT registration form along with your TPIN and company incorporation certificate.
  • Cost:
    No cost.Key Contact:

7. Register with the National Pension Scheme Authority (NAPSA)

All employees in Zambia must be registered with the National Pension Scheme Authority (NAPSA). Once your company is operational, you are required to enroll your employees in the pension scheme.

  • Process:
    Submit the NAPSA registration form along with the company’s incorporation documents.
  • Cost:
    No cost for registration, but employers must contribute 5% of each employee’s salary to the pension scheme.Key Contact:

8. Register with the Workers’ Compensation Fund Control Board (WCFCB)

As an employer, you must also register your company with the Workers’ Compensation Fund Control Board (WCFCB). This registration ensures that your employees are covered against workplace injuries and accidents.

  • Process:
    Complete the registration form and submit it to WCFCB along with your company’s incorporation certificate.
  • Cost:
    No cost for registration, but employers must contribute a percentage of employee wages to the WCFCB.Key Contact:

9. Obtain Sector-Specific Licenses (If Applicable)

Depending on the nature of your business, you may be required to obtain additional licenses or permits from relevant regulatory bodies. For example:

  • Zambia Environmental Management Agency (ZEMA): For businesses involved in environmental activities.
  • Energy Regulation Board (ERB): For companies in the energy sector.
  • Zambia Medicines Regulatory Authority (ZAMRA): For businesses dealing with pharmaceuticals.
  • Cost:
    Varies depending on the sector and the type of license required.Key Contacts:

10. Open a Corporate Bank Account

Once your company is registered, you will need to open a corporate bank account in Zambia. This account is necessary for conducting business transactions, paying employees, and filing taxes.

  • Required Documents:
    • Certificate of Incorporation
    • TPIN from ZRA
    • Articles of Association
    • Proof of registered address
    • Identification documents for the company’s directors and shareholders
  • Key Banks in Zambia:

Manufacturing in Zambia

Setting up a manufacturing plant in Zambia involves several procedural steps, including company incorporation, acquisition of licenses, and compliance with regulations related to land, environmental impact, and labor. Below is a detailed guide on how to establish a manufacturing plant, along with key contacts for relevant government agencies.

1. Incorporate Your Company

Before establishing a manufacturing plant, you must legally incorporate a company in Zambia. This is a crucial first step for any business operation.

  • How to Do It:
    Register the company with the Patents and Companies Registration Agency (PACRA). You will need to reserve a company name, submit the required documents (Articles of Association, incorporation forms), and pay the registration fees.
  • Cost:
    • Name Reservation: ZMW 83 (approximately USD 5)
    • Company Registration (Private Limited Company): ZMW 750 (approximately USD 37)

    Key Contact:

2. Obtain a Taxpayer Identification Number (TPIN)

Once the company is incorporated, register for a Taxpayer Identification Number (TPIN) with the Zambia Revenue Authority (ZRA). The TPIN is essential for tax-related matters and is required for most business operations in Zambia.

  • How to Do It:
    Register online or visit a ZRA office to complete the TPIN application.
  • Cost:
    No cost.Key Contact:

3. Secure Land for the Manufacturing Plant

You will need to acquire land for your manufacturing plant. This can be done by purchasing private land or leasing state land. Land acquisition is a critical step, and it should comply with Zambian Land Laws.

  • How to Do It:
    • For state land, apply through the Ministry of Lands and Natural Resources.
    • For private land, perform a title search through PACRA to verify ownership before purchase.
    • You may also consider setting up in a Multi-Facility Economic Zone (MFEZ), which offers incentives for manufacturers.
  • Key MFEZ Zones:
    1. Lusaka South MFEZ
    2. Chambishi MFEZ
    3. Lumwana MFEZ

    Key Contact:

4. Obtain Environmental Impact Assessment (EIA)

Before construction or operations can begin, you will need to conduct an Environmental Impact Assessment (EIA) to evaluate the potential environmental effects of your manufacturing plant. This is mandatory for industrial projects.

  • How to Do It:
    Submit an EIA report to the Zambia Environmental Management Agency (ZEMA) for approval. The EIA should include details about the plant’s operations, potential environmental impacts, and mitigation measures.
  • Cost:
    The cost of an EIA varies depending on the complexity of the project.Key Contact:

5. Obtain Sector-Specific Licenses and Permits

Depending on the type of manufacturing, you may need specific licenses or permits from relevant regulatory bodies. For example:

  • Zambia Bureau of Standards (ZABS): If your products need to meet specific quality standards.
  • Energy Regulation Board (ERB): If your plant operates in the energy sector or requires heavy power usage.
  • Zambia Medicines Regulatory Authority (ZAMRA): If you are manufacturing pharmaceuticals.
  • How to Do It:
    Apply for licenses through the respective regulatory authority. Ensure compliance with specific industry standards and regulations related to product safety, quality, and environmental impact.
  • Costs:
    Vary depending on the sector and license type.Key Contacts:

6. Register for Social Security and Workers’ Compensation

Once your plant is operational and you begin hiring employees, you must register with:

  • National Pension Scheme Authority (NAPSA): This is a compulsory social security scheme for employees.
  • Workers’ Compensation Fund Control Board (WCFCB): Provides insurance for workers in case of workplace injuries or accidents.
  • How to Do It:
    Submit the registration forms along with your company’s incorporation documents.
  • Cost:
    No cost for registration, but employers must contribute:

    • NAPSA: 5% of each employee’s monthly salary.
    • WCFCB: A percentage of the employee’s salary, based on risk assessment.

    Key Contacts:

7. Obtain Utility Connections (Electricity, Water, and Telecommunications)

To operate a manufacturing plant, you will need to secure connections for essential utilities, including electricity, water, and telecommunications.

  • Electricity: Apply for a connection with ZESCO, the national electricity provider.
  • Water: Apply for water supply through the local water utility company.
  • Telecommunications: Contact telecommunications providers for internet and phone services.
  • Key Contacts:

8. Hire Local Labor and Comply with Labor Laws

Zambia has labor laws that require employers to comply with minimum wage, working conditions, and employment policies. As an employer, you must adhere to the following:

  • How to Do It:
    • Hire employees according to Zambian Labor Laws.
    • Ensure compliance with minimum wage regulations, working hours, and employee welfare.
    • Register employees with NAPSA and Workers Compensation Fund.
  • Key Contact:

9. Explore Investment Incentives

Zambia offers several incentives for investors, especially in the manufacturing sector. These include tax holidays, duty-free importation of capital goods, and other incentives under the Zambia Development Agency (ZDA).

  • How to Do It:
    Contact the ZDA to explore potential incentives, including setting up in a Multi-Facility Economic Zone (MFEZ), which offers additional benefits such as tax exemptions.
  • Key Contact:

10. Start Manufacturing Operations

Once all permits, licenses, and registrations are in place, you can begin construction of the plant and installation of manufacturing equipment. Ensure that your plant complies with Zambian safety, environmental, and labor regulations.

Ongoing Compliance:
Ensure that your manufacturing plant continuously complies with environmental, labor, and tax laws. Regular inspections by ZEMA, labor authorities, and other regulatory bodies may occur.

Trademark Registration in Zambia

Registering a trademark in Zambia is essential for protecting your brand identity, logo, or product name from unauthorized use. The process is managed by the Patents and Companies Registration Agency (PACRA). Below is a step-by-step guide detailing how to register a trademark, including costs and key contacts.

1. Conduct a Trademark Search

Before applying for trademark registration, it is advisable to conduct a trademark search to ensure that your desired trademark is not already registered or pending registration in Zambia. This will save you time and avoid potential conflicts.

  • How to Do It:
    You can conduct a search through the Patents and Companies Registration Agency’s (PACRA) online system or visit their office to check the availability of your trademark.
  • Cost:
    ZMW 83 (approximately USD 5) per search.Key Contact:

2. Prepare the Required Documentation

To apply for a trademark, you need to gather the necessary documentation that must be submitted with your application. The key documents include:

  • Trademark Application Form TM No. 2: This form is required for submitting your trademark registration application.
  • Representation of the Trademark: Clear images of the trademark, including logo, wordmark, symbol, or combination, depending on what you are registering.
  • Goods and Services Classification: A list of goods or services for which the trademark will be used, categorized according to the Nice Classification system.
  • Optional:
    If you are working through an agent or lawyer, you must provide a Power of Attorney authorizing them to act on your behalf.

3. Submit the Trademark Application

Once the documents are ready, submit your trademark application to PACRA. You can do this either online via the PACRA website or in person at the PACRA office.

  • How to Do It:
    Complete the Trademark Application Form TM No. 2 and submit it along with the representation of the trademark and classification of goods/services.
  • Cost:
    • ZMW 1,500 (approximately USD 75) for the application fee.
    • Additional fees may apply if using an agent or lawyer.

    Key Contact:

4. Examination of the Trademark Application

Once the trademark application is submitted, PACRA will review it to ensure it meets all the legal requirements. This is known as the formal examination stage. PACRA will check that the trademark is distinctive and does not conflict with any existing trademarks.

  • What Happens:
    • If the trademark passes the formal examination, it proceeds to the next stage.
    • If there are any issues with the application, PACRA may issue a notification for amendments or clarifications.
  • Time Frame:
    The formal examination process typically takes 3 to 6 months, depending on the complexity of the application and the workload at PACRA.

5. Publication in the Industrial Property Journal

Once the trademark passes the examination, it will be published in the Industrial Property Journal for opposition purposes. This publication allows third parties to oppose the registration of the trademark if they believe it infringes on their existing rights.

  • Opposition Period:
    The trademark will be open for opposition for 60 days from the date of publication in the journal.
  • Cost:
    ZMW 500 (approximately USD 25) for publication.Key Contact:

6. Receive the Trademark Registration Certificate

If no opposition is filed during the 60-day period, or if any opposition is resolved in your favor, your trademark will be registered, and you will be issued a Trademark Registration Certificate. This certificate gives you exclusive rights to use the trademark in connection with your listed goods and services in Zambia.

  • What You Receive:
    A Trademark Registration Certificate confirming the trademark is officially registered under your name.
  • Cost:
    ZMW 1,000 (approximately USD 50) for the issuance of the Trademark Registration Certificate.Key Contact:

7. Renew the Trademark

A registered trademark in Zambia is valid for 10 years from the date of registration. After that, it must be renewed to maintain exclusive rights over the trademark.

  • How to Renew:
    Submit a renewal application to PACRA before the expiration date. The trademark can be renewed indefinitely, every 10 years.
  • Cost:
    ZMW 1,500 (approximately USD 75) for the renewal fee.Key Contact:

Commercial Dispute Resolution in Zambia

In Zambia, resolving commercial disputes can be achieved through formal court processes or alternative dispute resolution (ADR) methods such as arbitration and mediation. The choice of method depends on the nature of the dispute, the preferences of the parties involved, and whether there is a binding agreement to use ADR. Below is a step-by-step guide on how to resolve commercial disputes in Zambia, including costs and key contacts for relevant government agencies.

1. Negotiation (Recommended First Step)

Before resorting to formal legal methods, it is advisable for parties to attempt negotiation. Negotiation allows both parties to resolve the dispute amicably without incurring legal fees and can preserve business relationships.

  • What to Do:
    Engage in direct discussions with the other party to try and resolve the dispute. If successful, you can draft a settlement agreement that outlines the agreed terms and conditions.
  • Cost:
    No cost, unless you hire a lawyer or mediator to facilitate the negotiation.

2. Mediation (Alternative Dispute Resolution)

If negotiation fails, the next step could be mediation. Mediation is a voluntary process where an independent mediator helps the parties reach a mutually acceptable resolution. It is often quicker, less formal, and less expensive than going to court.

  • How to Do It:
    You can apply for mediation through the Zambia Centre for Dispute Resolution (ZCDR) or private mediators. The mediator does not impose a decision but facilitates dialogue between the parties.
  • Cost:
    The cost of mediation varies depending on the mediator and the complexity of the case. It is generally cheaper than going to court. Fees range from ZMW 5,000 – ZMW 20,000 (approximately USD 250 – USD 1000).Key Contact:

3. Arbitration (Alternative Dispute Resolution)

Arbitration is another ADR mechanism where a neutral arbitrator hears the dispute and makes a binding decision. Arbitration is often used when there is an arbitration clause in the commercial contract, but parties can also agree to arbitrate after a dispute arises.

  • How to Do It:
    Arbitration is usually conducted through the Zambia Association of Arbitrators or other recognized arbitration bodies. The process is private, and the arbitrator’s decision (award) is final and binding.
  • Cost:
    The cost of arbitration depends on the arbitrator’s fees, legal representation, and the complexity of the case. Arbitration costs can range from ZMW 10,000 – ZMW 50,000 (approximately USD 500 – USD 2500) or more, depending on the case.Key Contact:

4. Commercial Court Process (Litigation)

If ADR methods are unsuccessful or not preferred, commercial disputes can be resolved through the formal court system. Zambia has specialized Commercial Courts under the High Court system that handle commercial disputes.

  • How to Do It:
    File a statement of claim with the Commercial Division of the High Court. The other party will be required to respond, after which the court will set a hearing date. The process involves filing pleadings, presenting evidence, and legal arguments before a judge. The judge will then issue a binding judgment.
  • Cost:
    Court fees vary based on the value of the claim. Below is a general cost structure:

    • Filing Fee: ZMW 500 – ZMW 1,500 (approximately USD 25 – USD 75) depending on the type of claim.
    • Legal Representation: Legal fees vary depending on the law firm and complexity but can range from ZMW 20,000 – ZMW 200,000 (approximately USD 1,000 – USD 10,000) for high-value commercial disputes.

    Key Contact:

5. Appeal Process

If any party is dissatisfied with the ruling of the Commercial Court, they have the right to appeal to the Court of Appeal and ultimately to the Supreme Court of Zambia. However, appeals are costly and time-consuming, so they are typically reserved for significant or complex cases.

  • How to Do It:
    File a Notice of Appeal at the Commercial Division of the High Court within 30 days of the judgment. The appeal will then be heard by the Court of Appeal or the Supreme Court if further appealed.
  • Cost:
    • Appeal Filing Fee: ZMW 2,000 – ZMW 5,000 (approximately USD 100 – USD 250)
    • Legal Fees: Similar to litigation costs, but may increase depending on the complexity of the appeal.

    Key Contact:

6. Enforcement of Judgments

After obtaining a favorable judgment, either through litigation or arbitration, the next step is enforcement. In Zambia, the Sheriff of the High Court oversees the enforcement of court orders, including the seizure of assets or garnishment of funds to satisfy the judgment.

  • How to Do It:
    Apply for a Writ of Execution or other enforcement orders from the High Court. The Sheriff will then take steps to enforce the judgment.
  • Cost:
    • The cost of enforcement varies depending on the method used (e.g., asset seizure, garnishment).
    • Expect to pay administrative fees ranging from ZMW 1,000 – ZMW 5,000 (approximately USD 50 – USD 250).

    Key Contact:

7. Commercial Arbitration through the Zambia Development Agency (ZDA)

In addition to the general arbitration process, businesses operating in Multi-Facility Economic Zones (MFEZ) or other investment areas regulated by the Zambia Development Agency (ZDA) can also use ZDA’s dispute resolution framework for investment-related commercial disputes.

  • How to Do It:
    If the dispute involves investment matters, contact the Zambia Development Agency to explore possible arbitration or mediation frameworks under ZDA’s guidelines.
  • Cost:
    Varies depending on the nature of the dispute and the arbitration panel used.Key Contact:

Other Notes on Doing Business with Zambia

When considering doing business in Zambia, it’s important to understand a variety of factors beyond the basic legal and regulatory framework. The social, cultural, political, and economic environment plays a significant role in shaping the business landscape. Below is a comprehensive overview of these factors and how they can impact your business operations.

1. Social and Cultural Factors

Understanding Zambian social and cultural dynamics is crucial for building good relationships, both with local consumers and business partners.

  • Language:
    English is the official language of Zambia and is widely used in business and legal transactions. However, Zambia is home to over 70 ethnic groups, and local languages such as Bemba, Nyanja, Tonga, and Lozi are spoken in different regions. Knowing a few phrases in a local language can help in building rapport with locals.
  • Business Etiquette:
    Zambians value politeness, respect, and personal relationships. Business meetings usually start with formal greetings, and it is customary to shake hands. Building trust and long-term relationships is essential, so take time to get to know your business partners before diving into negotiations.
  • Religious and Cultural Practices:
    Zambia is predominantly Christian, and religious values influence many aspects of life, including business ethics. Public holidays such as Christmas, Easter, and Independence Day (October 24th) should be considered when planning business activities. Always be mindful of cultural norms, respect local customs, and avoid scheduling important meetings during religious or public holidays.
  • Workforce Demographics:
    Zambia has a young and growing population, with 66% of the population under the age of 25. While this provides a large potential workforce, there may be challenges related to skills gaps in certain industries. Companies may need to invest in training and development to bring workers up to speed.

2. Political Environment

Zambia is a politically stable country within the Southern African region. However, it is important to understand how the political landscape can affect business operations:

  • Political Stability:
    Zambia has enjoyed relative political stability since gaining independence from Britain in 1964. The country operates as a multi-party democracy, with regular elections that typically proceed peacefully. This stability is a positive factor for foreign investment. However, political tension can arise around election periods, which could lead to short-term uncertainties.
  • Government Policies:
    Zambia has been actively encouraging foreign direct investment (FDI) through policies that promote industrial growth, infrastructure development, and privatization. The Zambia Development Agency (ZDA) plays a key role in facilitating investments and providing incentives, particularly in sectors like agriculture, manufacturing, energy, and mining.
  • Corruption:
    While Zambia has made efforts to fight corruption, it remains a challenge in certain sectors of the economy. The government has established the Anti-Corruption Commission to combat this issue, but corruption can still be an obstacle for businesses.Key Contact:

3. Economic Environment and Foreign Exchange

Zambia’s economic environment presents both opportunities and challenges for businesses:

  • Economic Overview:
    Zambia’s economy is heavily dependent on mining, particularly copper, which accounts for about 70% of the country’s export earnings. The government is actively promoting diversification into sectors such as agriculture, tourism, manufacturing, and energy to reduce reliance on copper.
  • Foreign Exchange:
    The national currency is the Zambian Kwacha (ZMW). Zambia operates a floating exchange rate system, meaning the value of the Kwacha is determined by market forces. Fluctuations in global copper prices can lead to volatility in the exchange rate, which could affect businesses involved in international trade.Businesses need to monitor exchange rates closely, as the Kwacha can be subject to depreciation, especially during periods of low copper prices. The Bank of Zambia is responsible for regulating monetary policy and maintaining financial stability.Key Contact:

  • Inflation:
    Zambia has experienced periods of high inflation, especially during times of currency depreciation or rising fuel costs. Inflationary pressures can impact the cost of doing business, particularly for imported goods and services.
  • Access to Finance:
    Access to affordable credit remains a challenge for local businesses, especially small and medium enterprises (SMEs). Interest rates are relatively high, and commercial banks may require collateral. However, the government has been working to improve the financial infrastructure, and there are several microfinance institutions that cater to smaller businesses.

4. Legal Environment and Rule of Law

Zambia’s legal system is based on English common law, and the rule of law is generally respected. However, businesses must be aware of the following legal factors:

  • Business Law:
    Zambia’s legal framework supports business operations, with laws covering company registration, intellectual property, labor, and tax. The Patents and Companies Registration Agency (PACRA) is responsible for company registration and intellectual property protection.Key Contact:

  • Contract Enforcement:
    Zambia has a functioning judicial system, but commercial dispute resolution through the courts can be slow due to a backlog of cases. To mitigate these delays, many businesses opt for alternative dispute resolution (ADR) methods such as arbitration and mediation.
  • Intellectual Property:
    Protection of intellectual property (IP) is handled by PACRA. Businesses should ensure that they register trademarks, patents, and copyrights to protect their brands and innovations from infringement.
  • Land Ownership Laws:
    Foreigners may not own land in Zambia outright but can lease it for renewable periods (typically 99 years). Land for business use can be acquired through the Ministry of Lands and Natural Resources.Key Contact:

5. Taxation and Incentives

Zambia has a relatively straightforward tax system, though rates can vary based on the sector of operation.

  • Corporate Tax:
    The standard corporate income tax rate is 35%, though there are lower rates for certain sectors like agriculture (10%) and tourism (15%).
  • Value-Added Tax (VAT):
    The VAT rate is 16%. Businesses must register for VAT if their turnover exceeds the stipulated threshold.
  • Incentives for Investors:
    The Zambia Development Agency (ZDA) offers various incentives to foreign and local investors, including tax holidays, customs duty exemptions on capital equipment, and investment protection guarantees.Key Contact:

6. Infrastructure and Logistics

  • Transport:
    Zambia’s landlocked position presents logistical challenges, but the country is well-connected by road, rail, and air. Key routes link Zambia to major seaports in South Africa (Durban), Mozambique (Beira), and Tanzania (Dar es Salaam). The Tazara Railway and road networks are vital for freight transport.
  • Energy:
    Power supply in Zambia is primarily generated by hydroelectricity, but the country has faced power shortages in recent years due to droughts. Businesses involved in energy-intensive operations should consider backup power solutions and monitor developments in the energy sector.
  • Telecommunications:
    Zambia has a growing telecommunications sector, with mobile and internet services widely available. Key operators include Zamtel, MTN, and Airtel. However, internet speeds can be slower compared to more developed countries.

7. Labor and Employment Laws

  • Minimum Wage:
    Zambia has a regulated minimum wage, which varies by sector and job description. It is important for businesses to familiarize themselves with the Minimum Wages and Conditions of Employment Act.
  • Work Permits:
    Foreign businesses that wish to hire expatriates must apply for work permits through the Zambia Immigration Department. The government encourages businesses to prioritize hiring local Zambians, but work permits are generally granted for specialized skills that are in short supply locally.Key Contact:

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