The Zambia Development Agency (ZDA) has announced a reduction in the minimum investment threshold required to access incentives for 100 percent locally owned businesses operating in priority sectors, from United States Dollars 500,000 to USD 50,000.

The move, introduced under the Investment, Trade and Business Development (ITBD) Act number 18 of 2022, is meant to empower Zambian entrepreneurs, stimulate industrialisation, and create jobs by making incentives more accessible to citizen-owned enterprises.

ZDA has, however, announced an increase in the minimum investment threshold for foreign investors, required to benefit from incentives, from 500 000 USD to One million USD to access the same incentives.

To further encourage partnerships, joint venture thresholds have been set at USD 100,000 for citizen-owned companies with majority Zambian shareholding, USD 150,000 for citizen-empowered firms, and USD 500,000 for citizen-influenced entities.

This is according to a statement issued to ZANIS in Lusaka, by ZDA Head of Communications, Kwali Mfuni.

The incentives available to qualifying investors include customs duty exemptions on machinery and equipment for five years, accelerated depreciation allowances, and Value Added Tax (VAT) deferments.

The Agency has further announced that Special Economic Zone (SEZ) developers benefit from zero VAT on imported goods for infrastructure, while operators enjoy tax holidays on export profits for up to a decade, followed by reduced tax rates in subsequent years.

ZDA Director General, Albert Halwampa emphasised that eligibility for incentives is strictly based on project viability, sector alignment, thresholds and compliance with national regulations.

“Zambia’s investment environment is anchored on inclusivity and competitiveness. We encourage both local and foreign investors to take advantage of the incentives available if they meet the established requirements,” he said.