Page 13 - Zambia YellowPages 2016
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                  rx[ZairlILE OF ZAMBIA

              Zambia is the largest copper producer in Africa, and boasts rich   income status. It will also be vital to ensure that the rural economy
              natural resources which include tourism attractions such as the   contributes meaningfully to overall growth. Going forward, the
              world-renowned Victoria Falls, as well as abundant potential in   agriculture, construction, manufacturing and tourism sectors have
              agriculture. In 2015, the International Monetary Fund (IMF) listed   been identified as having the greatest potential for job creation.
              Zambia among the top ten fastest growing resource rich
              economies in the world, with growth between 2011 and 2015   THE INVESTMENT CLIMATE
              averaging 7.7 percent per annum.                      Zambia has enjoyed more than 50 years of political stability and is
                                                                    known as one of Africa's most peaceful, tolerant and democratic
              Moving into its second half-century as an independent nation,   states, boasting sound governance structures that are based on
              Zambia has many successes to celebrate as well as much to look   the rule of law and respect for private property. The country has an
              forward to, with several years of strong growth and political stability   independent judiciary and strong anti-corruption measures have
              having set the stage for deepening economic diversification and   been instituted.
              value addition. A lower middle income country with considerable
              institutional strengths, Zambia is nevertheless constrained by a   Abundant natural resources and human capital provide the
              relatively low level of economic development and continued   potential for growth and a variety of investment opportunities. The
              vulnerability to fluctuations in the price of copper. However,   country is known as one of the best investment destinations in the
              long-term investment prospects in the mining sector are promising,   sub-region, and ranked among the ten most improved economies
              government debt is moderate, and further vigorous growth is   in Sub-Saharan Africa in the World Bank's 'Ease of Doing
              predicted in sectors such as manufacturing, agriculture and   Business' report. Competitive production costs, incentives and
              tourism.                                              reforms have enhanced the business climate for both local and
                                                                    foreign investors.
              THE ECONOMY
              Zambia's success is supported by a combination of sensible   Surrounded by eight neighbouring countries and in close proximity
              macroeconomic management, market liberalisation policies and   to the large market of South Africa, Zambia enjoys preferential
              robust copper prices which have propelled mining sector   market access through active participation in regional trade blocs.
              investment as well as the development of complementary   Its unique position at the heart of two regional economic blocs
              infrastructure. Copper production and related sectors contribute   provides massive investment opportunities in communications and
              25-30 percent to the country's GDP and generate the majority of   transport. Public Private Partnership (PPP) and privatisation
              current account receipts. Although the economy is dependent on   programmes allow foreign investors to partner with local
              copper, agriculture is the major employer, providing jobs for around   entrepreneurs on various projects. Infrastructure development,
              70 percent of the population. Zambia's GDP was rebased to 2010   especially in roads and rail, has helped to facilitate the timely
              prices in February 2014, and the economy is now thought to be 25   movement of goods.
              percent bigger than previously estimated, with mining,
              construction and trade gaining more prominence as agriculture   The standard corporate tax rate in Zambia is 35 percent. Tax on
              has declined.                                         income earned from mining operations is 30 percent, and tax on
                                                                    income earned from mineral processing is 35 percent. Income
              The present health of the economy stems from a programme of   originating from the export of non-traditional products, the
              economic liberalisation begun in the 1990s, which saw the   manufacturing of fertilisers and the production of sugar crystals is
              privatisation of government-owned copper mines followed by   taxed at 15 percent. Farming and agro-processing is taxed at 10
              increasing levels of private sector investment. Reform   percent, while rural enterprises have a tax rate of 30 percent for
              programmes to improve business competitiveness and attract   the first five years of operation.
              even greater levels of Foreign Direct Investment (FDI) remain a
              priority, and diversification away from the mining sector is seen as   Investments are protected and private property rights guaranteed
              being essential to achieving future goals.            through the Zambia Investment Act, which states that investments
                                                                    may not be expropriated unless parliament passes an act relating
              Despite evidence of positive growth, economic success has not   to the compulsory acquisition of that property, in which event full
              translated into significant poverty reduction. According to the   compensation at market value and free transfer of the funds in the
              World Bank, 60 percent of the population lives below the poverty   currency in which the investment was made is guaranteed.
              line and 42 percent are considered to be in extreme poverty. While   Furthermore, investors are guaranteed that investments will not be
              poverty is relatively low in urban areas such as the provinces of   adversely affected by any changes to the Investment Act for a
              Copperbelt (22 percent) and Lusaka (34 percent), it is much higher   period of seven years.
              in the rest of the country, where agriculture provides the main
              source of livelihood.                                 The country belongs to the Multilateral Investment Guarantee
                                                                    Agency (MIGA) and has signed multilateral, regional and bilateral
              Zambia's development agenda is guided by Vision 2030 and the   investment protection agreements with a number of countries.
              revised Sixth National Development Plan (SNDP), with the latter   Investment in the stock market is protected by the Securities Act of
              focused on the theme of 'broad based wealth and job creation   1993 and enforced by the Securities and Exchange Commission.
              through citizenry participation and technological advancement'.
              Specific development goals include promoting inclusive growth,   Trademark protection is adequate, and patent laws conform to the
              fostering a competitive and outward-oriented economy,   requirements of the Paris Convention for the Protection of
              significantly reducing hunger and poverty, and reaching middle   Industrial Property, to which Zambia is a signatory. Zambia has
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