Zambia - Investment Policy Review - OECD

Date of Publication
30 March 2012

Table of contents

Executive summary
Zambia’s ambitious reform agenda
Investment policy
Investment promotion and facilitation
Trade and competition policy
Tax policy
Corporate governance
Policies for promoting responsible business conduct
Infrastructure development
Other aspects of the policy framework for investment

Zambia is one of the dynamic growth poles of Southern Africa, thanks to important progress in recent years in strengthening its policy framework for investment. It boasted GDP of 5.9% per annum between 2004 and 2010, while exports expanded ten-fold and Foreign Direct Investment (FDI) increased eight-fold.

The economy has been relatively resilient in the recent global downturn, benefiting from appropriate policies, good harvests and a buoyant demand for copper. While extractive industries attract the bulk of investment, the services sector, especially banking, tourism, and agriculture, has also catalyzed significant volumes of FDI. Today, Zambia is recognised as one of the most open African economies to foreign equity ownership.

This Review highlights Zambia's progress and identifies some remaining challenges for the country. The Zambian Government is considering new reforms, including the development of a harmonized investment policy, a review of its tax incentives system and of its framework for Public Private Partnerships. Implementing these reforms, and other policy recommendations found in the Review, would contribute to the further improvement of Zambia’s policy framework for investment.

This Review is the first to be carried out in sub-Saharan Africa on the basis of the OECD Policy Framework for Investment.

Investment policy

Zambia - Investment Policy Review - OECD