Trade and Investment
Economic review
Zambia has a relatively open economy, which depends on the mining sector that is the backbone of the economy and the major source of foreign exchange. Since the privatisation of the mines at the end of the past century, Zambia has posted economic growth at an average of 5% between 1999 and 2010. In the past few years, the non-traditional export sectors have emerged and contributed to growth, jobs and income in mainly rural and peri-urban areas.
Sustained efforts to strengthen the public finances have contributed to improved macroeconomic stability and economic growth. The main drivers of economic growth have been mining, transport and communication, manufacturing and – to a lesser extent - agriculture. As a result of the macroeconomic stability, foreign direct investment into the country has increased significantly. Fitch, the independent credit rating agency, assigned Zambia a sovereign credit rating of B+ with a stable outlook on 2nd March, 2011 in recognition of its improved economic status.
| Economic Indicators | |
| Exchange Rate | ZMK 4,834.58 = USD 1 |
| As per March 2011 Inflation (Oct 2010) |
ZMK 6,715.72= EUR 1 7,3% |
| GDP (PPP estimate: 2010) GDP per Capita (PPP: 2010 estimate) |
USD 20.03 billion USD1500 |
| GDP composition by sector: Agriculture Industry Services Exports |
19.7% 33.7% 46.6% (2010 estimate) US$5.089 million |
| Imports | US$5.060 million |
| Principal Exports | Copper, Cobalt, Lead, Zinc, Tobacco, Sugar, Cotton and natural stones |
| Principal Imports | Crude materials (exl fuels), Chemicals, Machinery, manufactured goods |
| Main Export Destinations | Switzerland, China, South Africa, Congo DR, and United Arab Emirates (UAE) |
| Main Import origins | South Africa, DR Congo, China, Kuwait, and United Kingdom |
| Natural Resources | Copper, Zinc, Cobalt, Electricity, Lead, Gemstones, Wildlife, Arable Land, Water |
Business and Investment
In line with the economic reforms, Zambia is encouraging private investment in all major productive sectors including agriculture, mining, manufacturing, tourism and energy. It has introduced new economic policy measures, liberalised open market trade and investment conditions. Export processing zones have been established and applications for zoning are being encouraged. As of 2007, there is a one stop-shop for investors: the Zambia Development Agency (ZDA, www.zda.org.zm). Visit the ZDA-site to learn about priority sectors for government, fiscal incentives, and other relevant information. The Zambia Revenue Authority, ZRA, is the institution in charge of taxes (see www.zra.org.zm for full details).
Trade and investment relations between the Netherlands and Zambia have been modest over the last few years. The Netherlands exports to Zambia consist of chemical products, veterinary drugs, and machinery and transport equipment. The merchandise value of Netherlands exports to Zambia amounted to US$ 24, 590,000 in the year 2009. Furthermore, the value of all merchandise imports by the Netherlands from Zambia amounted to US$ 17,986,000 in the year 2009.
There are some Dutch business instruments to support investments in Zambia and Malawi. Both countries are eligible for the Private Sector Investment Programme (PSI) which is completely untied to facilitate NL-Zambia and South-South joint investments for innovative or pilot projects [www.evd.nl/psi]. The ORIO-facility, for funding of infrastructural public private partnerships, is also open for Zambia [www.orio.nl]. Furthermore, Zambian firms can partner with Dutch firms through the Match Making Facility [www.agentschapnl.nl/ukmmf]. Please visit the aforementioned websites if you require additional information about the mentioned business development instruments.
Useful Addresses
Zambia Development Agency
Privatization House
Nasser Road
P. O. Box 30819,
Lusaka
Tel:+260 (0)211-220177 / 222858
Fax: +260 (0) 211-225270
Email: zda@zda.org.zm
Zambia Revenue Authority
P.O. Box 35710
Lusaka
Tel: +260 (0)211 223 233
Fax: +260 (0)211 222 729
www.zra.org.zm
Zambia Tourism Board
Century House
P.O. Box 30017
Lusaka
Tel: +260 (0)211 228412
Fax: +260 (0)211 225174
www.zambiatourism.com
Zambia National Farmer's Union
P.O. Box 30395,
Lusaka,
Zambia
Tel: +260-211-222797; +260-211-252958
Zambia Tourism Board
P.O. Box 30017,
Lusaka,
Zambia
www.zambiatourism.com
Zambia Association of Chambers of Commerce and Industry [ZACCI]
P.O. Box 30844,
Lusaka,
Zambia
Tel: +260-211-255046; +260-211-253020
www.zambiz.co.zm/assoc/zacci.htm
Netherlands Ministry of Economic Affairs, Agriculture and Innovation
Agentschap NL
NL EVD Internationaal
www.evd.nl
Match Making Facility (MMF) of the Netherlands Ministry of Economic Affairs, Agriculture and Innovation
www.agentschapnl.nl/en/programmas-regelingen/matchmaking-facility-mmf
Netherlands African Business Council
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