Zambia has over the past few years continued to consolidate its firm macroeconomic base and is in the process of dismantling unnecessary red tape hampering business development and building a sound and reliable infrastructure while continuing to provide a stable political and legal environment for doing business.

Privatisation, market liberalisation and deregulation have produced a commercial climate characterised by enhanced competition, efficiency and openness. The implementation of structural reforms has continued, with the emphasis on improving public expenditure management and financial accountability, addressing the problems of the state-owned non-bank financial institutions and removing the bottlenecks to private sector development. The reform-based agenda has been supported by the enactment of laws that promote and protect private enterprises, with the role of government relegated to providing an enabling environment for business to flourish.

Private Sector Development Reform Programme

The Zambian government is introducing various measures to enhance the country’s business climate. Heading these is the Private Sector Development (PSD) Reform Programme, a partnership programme with the private sector aimed at laying a foundation for faster, sustainable, private sector-led economic growth through reducing the cost of doing business in Zambia. This includes removing regulatory and administrative barriers to investment, strengthening public agencies that service the private sector, streamlining regulations across key sectors, modernising land ownership laws and rationalising labour market laws and related legislation.

Key milestones under the PSD programme include the launch of the Zambia Development Agency in 2007 through a ‘one-stop-shop’ under which institutions dealing with investment, trade and the small and medium scale sector were amalgamated. A national policy on Public Private Partnerships (PPPs) has also been developed under the PSD programme.

Furthermore, businesses setting up in Zambia now enjoy faster company registration, which has been reduced to just one day. Registration for VAT, previously requiring 21 days, can now be done in three days. The current focus lies on issues such as immigration, work permits and customs procedures, with the

time requirements for these having already been cut substantially.

THE BUSINESS ENVIRONMENT

Zambia is one of the more attractive investment locations in sub-Saharan Africa, and both local and foreign companies are able to take advantage of the many and varied benefits to doing business here.

Business in Zambia is undertaken by companies, trusts, partnerships and individuals. A business name must be registered or a company incorporated through the Registrar of Companies. This involves name clearance and submission of articles of association with details of directors in triplicate.