Research and consulting in Zambia

Country overview:

IOA has developed a wide-ranged understanding of Zambia through research and consulting on the country. Our political analysts note the pervasive continuation of government corruption, and our economic researchers have pointed to a lack of worker productivity as hindrances to economic growth. The landlocked country is rich in mineral wealth and enjoys other natural resources that if properly exploited will propel economic improvement. The education and health systems are under-financed and thus underdeveloped, with the latter facing a persistent problem with malaria in all Zambian provinces. A lack of rural employment is leading Zambia to becoming the world’s most industrialised country, despite high joblessness in towns.

IOA economists note the need for value-added industry to make mineral extraction more profitable. Currently, copper and other minerals are shipped out raw and unprocessed, while the industrial sector is so undeveloped it contributes less than 10% to GDP.

Key opportunities in Zambia:

Copper leads the export-driven mining industry, which leads the economy
IOA analysts have noted that tourism potential in the country that popularised the “walking safari” justifies investment in resorts and attractions
Precious stones production has a long-term future, with Zambian emeralds and diamonds in demand overseas

Key concerns/risks in Zambia:

Widespread poverty – 54% in urban areas and 77% in rural lands – defies easy fixes, while environmental degradation continues
Dependence on the export of raw commodities has resulted in flat economic growth for years
Education, energy, healthcare and transportation infrastructures are outdated and inadequate

Find out about how IOA can help you with research and consulting services in Zambia

Tips on doing business in Zambia:

Starting a business:

Zambia is akin to many other Southern African states in terms of regulations around foreign ownership. Technically all land in Zambia is owned by the state and as such foreigners can only acquire property through special administrative processes. Foreign investors are however able to purchase 99-year leases

Doing business:

Local authorities have established a number of incentives for foreign investors in the country, with a particular focus on those willing to invest in what are known as Multi Facility Economic Zones (MFEZ). These include a 0% tax rate on dividends for five years from year of first declaration of dividends, and 0% tax on profits for five years from the first year of operation for manufacturing projects in rural areas
This is in addition to the 0% import duty rate on capital goods, machinery (including specialised motor vehicles) for five years
(Read more at: http://bit.ly/49j2q3p)

Culture and society:

English is widely spoken in Zambia which can streamline the investment process for investors from other Anglophone markets considerably. Business culture is based on personal reports, networking and face-to-face connection. As such, it can take longer to get down to deal making in Zambia than in some other developed markets
Though the country is generally safe, violent crime can be an occasional concern. Local drinking water is not always safe to drink and it’s advisable to either boil water before consumption or drink bottled water instead