Zambia: Investing in Zambia
According to UNCTAD's World Investment Report 2024, FDI flows into Zambia rose to USD 108 million in 2023, compared to a negative inflow of USD 65 million one year earlier but still way lower than the 2019-21 average (USD 500 million). At the end of the same period, the total stock of FDI was estimated at USD 15.49 billion, around 54.5% of the country’s GDP. FDI remains dominated by large mining investments from Canada, Australia, the United Kingdom, China, and the United States, in addition to large infrastructure and other projects performed almost entirely by Chinese companies. The Zambia Development Agency (ZDA) has announced committed investments totalling USD 18.74 billion across multiple sectors in 2024, with USD 9.83 billion already realised. The mining sector led with over USD 5 billion in investments, including major projects such as Barrick Gold's USD 2 billion investment to transform the Lumwana Mine into a 'super-pit,' and First Quantum Minerals' USD 1.3 billion expansion of the Kansanshi Mine. Additionally, China's JCHX Mining invested USD 300 million in the Lubambe Copper Mine, and Sinomine Resource Group committed USD 600 million to the Kitumba Mine. In the energy sector, projects like the USD 65 million Choma Solar Power Station and the USD 53 million Itimpi Solar Power Station were launched to address electricity shortages. Furthermore, the U.S.-backed USD 10 billion Lobito Corridor Railway project aims to improve regional transport.
As the country largely depends on the mining sector, the government is seeking to diversify the economy and become less dependent on copper. To this extent, several tax incentives are granted to foreign investors (for more info, consult the Zambia Development Agency website). Moreover, the Zambia Development Agency (ZDA) unveiled its strategic plan for 2022-2026 on October 20th, 2023, with the goal of stimulating economic growth by attracting a total of USD 36 billion in FDI and Local Direct Investment (LDI). This plan is designed to align the agency with the economic transformation objectives outlined in the Eighth National Development Plan (8NDP), which serves as a cornerstone for achieving Vision 2030. This vision aims to elevate Zambia into an industrialized, upper-middle-income nation by 2030. Generally, Zambian law does not restrict foreign investors in any sector of the economy, although there are some limitations (especially regarding land ownership, as there is no private land in the country, and specific sectors of national interest). However, the increase in taxes on mining companies, uncertainties concerning the tax framework (a revision of the mining code is underway), the high level of interest rates, and the disputed judicial liquidation of the Konkola mine could create an economic climate unfavourable to foreign investors in the years to come (however, after a protracted legal battle, Vedanta regained control of the mine in 2024 by paying approximately USD 246 million to creditors). The regulatory environment does not favour entrepreneurial activity, the requirements for commercial licenses being long and costly, and the application of regulations not being uniform. In addition, the protection of property rights and the enforcement of contracts are still weak by international standards. On 16 April 2024, Zambia passed Act No. 3 of 2024, the Investment, Trade and Business Development (Amendment) Act, aimed at improving the country's investment climate. The amendment enhances tax incentives, simplifies business setup procedures, and offers increased support for investors in key sectors like agriculture, energy, and mining. This move is part of Zambia's efforts to attract more domestic and foreign investment to drive economic growth. Zambia ranks 116th among the 133 economies on the Global Innovation Index 2024 and 142nd out of 184 countries on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | 245 | -352 | 116 |
FDI Stock (million USD) | 15,138 | 15,120 | 15,236 |
Number of Greenfield Investments* | 12 | 11 | 9 |
Value of Greenfield Investments (million USD) | 887 | 804 | 1,698 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Zambia | Sub-Saharan Africa | United States | Germany |
Index of Transaction Transparency* | 4.0 | 5.5 | 7.0 | 5.0 |
Index of Manager’s Responsibility** | 6.0 | 3.5 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 7.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
Investors who invest at least USD250,000 in any sector or product not provided for as a priority sector or product, is entitled to non-fiscal incentives such as investment guarantees and protection against state nationalization and protection against non-commercial risks (Zambia is a signatory of Multilateral Investment Guarantee Agency).
For more info, consult the Investment Guide to Zambia by the ZDA.
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Latest Update: May 2025