ZDA lauds Zambia’s economic fundamentals

The Zambia Development Agency (ZDA) has disclosed that the Agency has recorded a 50 percent increment in investment pledges and expression of interests due to the continued stability in most economic fundamentals.

ZDA Acting Director Albert Halwampa explained that the continued macroeconomic stability is setting a tune for positive economic development and growth that are key towards attracting more investments in the country.

Mr. Halwampa told ZANIS in an interview in Lusaka today, that due to the single inflation rate and the appreciation of the kwacha many investors have expressed interest to invest in different sectors of the economy.

He noted that even financiers have started referring their clients to come and invest in Zambia because of the favourable investment climate that has been created by the government.  

Mr. Halwampa disclosed that one Brazilian investor who is interested to invest in the transport sector in roads and railway lines has so far been recommended by his financiers to come to Zambia.

Meanwhile, Mr. Halwampa has disclosed that the reduction in the threshold required by local investors to get investment licenses from 500,000 United States Dollars (USD$) to 50,000 USD has led to an increase in local investment.

He said the decision which was announced in the 2022 national budget was to reduce the investment threshold aimed at encouraging more local investments in the country which will in turn bring about sustainable development.

He pointed out that the threshold which gives access to investment licenses comes with incentives such as free tax on the importation of equipment and machinery at zero % customs duty.

Mr. Halwampa further added that those that are interested to invest in the Multi Facility Economic Zones and are able to manufacture and export will be given an extra incentive of 10 years tax holiday to encourage them to grow their investments.

He has since called on Zambians to take advantage of the reduced investment required for an investment license to consider venturing in sustainable businesses.

During the presentation of the 2022, national budget Finance Minister Situmbeko Musokotwane announced a reduction in the investment threshold   for Zambian citizens to qualify for tax incentives under the Zambia Development Agency (ZDA) Act No11 of 2006.