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8.6InvestmentSectors,PrioritySectors,andOwnership

Q18.Whatsectorscananinvestorinvestin?

A18:AsaninvestorlocatedinZambia,youcaninvestinanysectoryouwish.Thatsaid,

thereareanumberofsectorsdeemedasPrioritySectorsbytheZambianGovernment,

andifyouchosetoinvestinthemyouwillreceiveadditionalinvestmentincentives.

Q19.WhatisaPrioritySector?

A19:APrioritysectorisasectorthathashighgrowthpotentialsetforthintheSecond

ScheduleoftheZDAAct.WehaveprovidedasummarylistofthesectorsinAnnex2at

thebackofthisdocument.

Q20.ArethereanysectorsthatarerestrictedtoZambiansonly?

A20:No.AllsectorsoftheZambianeconomyareopentoyou.However,mostsectors

thatrequireinvestmentbelowUS$250,000thresholdsuchastrading(unlessitisa

franchise,dealershiporunderlisence)wouldnotbeapprovedbytheZDAlicensing

desk..

Q21.ArethereanyrequirementsforapercentageofZambianownership?

A21:No.Basically,itisnotnecessaryforyoutohaveanyZambianshareholders

accordingtoourlaws.However,certainlicensessuchassmallscalemininglicensesare

givenonlytoZambians,andnon-Zambianswishingtoinvestintheminingsectorthrough

asmallscalemininglicensewillhavetopartnerwithalocalZambianinordertodoso

andthisrequiresatleast75%Zambianownershipinthecompany.Broadcastinglicense

willonlybeissuedtoacompanywith75%Zambianownership.

Q22.WhatarethebenefitsofpartneringwithaLocal?

A22:It’sbeneficialshouldyouneedtotappingintolocalresourcesforsmallscalemining,

transport,doinggroundworkandforobtaininglocalknow-how.

Q23.WhatarethebenefitsofholdingaCertificateofRegistration?

A23:IfyouhaveaCertificateofRegistration,youwillreceiveaninvestmentguarantee

againstthestatesnationalizingofyourinvestment,supportandaftercarebyourZDAstaff

asyoufilefornecessarypermitsandlicencesfromotherministries,andbeabletoown

landinZambiaunderthenameofyourcompany.

Q24.WhatisthesystemoflandtenureinZambia?

A24:ThereareonlytwotypesoftenureinZambia.Theseareleaseholdandcustomary

tenure.Zambiahasnofreeholdsystemoftenure.Theleaseholdtenurerunsfor99years

andisrenewableforfurther99years.Furtherrenewalispossibleifthereisnobreachof

theconditionsintheexistingagreement.Landinthecustomaryareacanbeconvertedto

leasehold–thusallowingittobeusedascollateral.Underthe1995Act,landnowhasa

valueandcanbesoldevenwithoutimprovementontheland.

Q25.Areforeignersallowedtoownland?

A25:Anon-Zambiancanacquirelandunderfollowingconditions;

He/SheisapermanentresidentinZambia

He/SheisaninvestorwithinthemeaningoftheZambiaDevelopmentAgencyActor

anyotherlawpermittinginvestmentinZambia

InexceptionalcasesbyPresidentialconsentinwriting

ApersonregistersacompanyundertheCompaniesAct,withnolessthan75%

Zambianshareholding.TitleDeedwillbeissuedinthenameoftheregistered

company.

Underashorttermtenancyofnotmorethan5years

Ifthepersonisgrantedconcessionorright–undertheNationalParksandWildlife

Act.

Q26.WhatarethestepstoacquiringlandasaforeignerinZambiaforinvestment?

A26:InvestorisrequiredtosubmitaletterofintenttoDirectorGeneralhighlighting

sector/areaofinterestandsizeoflandrequired.

InvestormakesanapplicationforaCertificateofRegistration

Investormustbewillingtopayforalllandacquisitionpre-investmentactivities

expenses/costs.

Annex1

CertificateofRegistration

RequiredApplicationDocuments

Checklist

1.CompletedformalapplicationformfromtheZambiaDevelopmentAgency;

2.CertifiedcopyofcertificateofIncorporation/Registration;

3.Certifiedcopyofcertificateofsharecapital;

4.Certifiedcopyofacertificateofminimumsharecapital;

5.Certifiedcopyofanofficiallistofshareholdersand/ordirectors;

6.Businessplanand/orfeasibilitystudy;

7.Verifiableevidenceofprojectfinance;

8.Briefresumes/CVsforshareholdersand/ordirectors;

9.Non-refundableapplicationprocessingfeeofK1,280.00

10.CertificatefeeofK7,670.00(payableonlyuponcollectionofcertificate).

Pleasenotethatanypromoterseekingapprovaltoestablishanenterprise,undertheZambia

DevelopmentAgency(ZDA)ActNo.11of2006,shouldincludeintheirproposal,aclearand

concisestatementonhowtheenterprise,ifapproved,islikelytocontributetothecountry’s

economicgrowthanddevelopment.

Annex2

ListofPriorityandMFEZPrioritySectors

PrioritySectors

Anyinvestorinvesting$500,000ormoreintoanyoftheprioritysectorslistedbelowshallbeentitled

tofinancialincentives.

1)Floriculture:

Freshflowersanddriedflowers

2)Horticulture:

Freshanddriedvegetables

3)Processedfoods:

Wheatflour

Otherprocessedfoods

4)BeveragesandStimulants:

Teaandteaproducts

Coffeeandcoffeeproducts

5)Productionandtheprocessingofthefollowingproductsinthetextilessector:

Cotton

Cottonyarn

Fabric

Garments

6)Manufacturingofthefollowingengineeringproducts:

Copperproducts

Ironoreandsteel

Cobalt

Otherengineeredproducts

7)Beneficiationofphosphatesandanyotherrelatedmaterialintofertilizer

8)Beneficiationofrockmaterialsintocement

9)Productionandprocessingofrawtimberintowoodproducts

10)Productionandprocessingofthefollowingproductsintheleathersector:

cattlehides

crustleather

leatherproducts

11)Buildingofmini-hydropowerstations

12)Educationandskillstraining

MFEZPrioritySectors:

MFEZPrioritySectorsareasfollows:

1)InformationandCommunicationTechnology(ICT)

Developmentofcomputersoftware

Assembly/manufactureofICTequipment

2)Health

Manufactureofpharmaceuticalproducts;

Repairandmaintenanceofmedicalequipment;

Provisionoflaundryservicestomedicalinstitutions;

Ambulanceservices;

Medicallaboratoryservices;

Diagnosticservices;and

Othermedicalservices.

3)Educationandskillstraining

4)Manufactureof:

Machinery&machinerycomponents

Iron&steelproducts

Electricalandelectronicproducts&components&partsthereof;

Chemicals&petrochemicals

Pharmaceutical&relatedproducts

Wood&woodproducts

Palmoil&theirderivatives

Pulp,paper&paperboard

Textile&textileproducts

Transportequipment,component&accessories

Clay-based,sand-based&othernon-metallicmineralproducts;

Plasticproducts

Professionalmedical,scientific,&measuringdevices/parts

Rubberproducts

Leather&leatherproducts

Packaging&printingmaterials

Fertilizer

Cement

5)Tourism

6)Processingof:

agriculturalproducts

forestproducts

non-ferrousmetals&theirproducts

gemstones

7)RealEstatedevelopment

Annex3ApplicationforCertificateofRegistration

REPUBLICOFZAMBIA

ZAMBIADEVELOPMENTAGENCY

ZAMBIADEVELOPMENTAGENCYACT(No:11of2006)

APPLICATIONFORACERTIFICATEOFREGISTRATION

TheDirectorGeneralTel:+260-1-220177

ZambiaDevelopmentAgencyFax:+260-1-225270

P.OBox30819E-Mail:info[ta]zda.org.zm

Lusaka.Zambia.WebSite:http://www.zda.org.zm

PART1

1.PROJECTDETAILS.

(a)FullNameofEnterprise

(b)PlotNo:.Street/Road

(c)Address

(d)Province..District.

(e)TelephoneNo:..FaxNo

(f)E-mailAddress:.

(g)DateofIncorporation/Registrationofthebusinessname

(h)ForeignAddressofexternalinvestor(includingTel/Fax/E-mail):

2.OWNERSHIPSTRUCTURE.

2.1Statewhetheryourenterpriseis:Mark“X”whereapplicable.

SoleOwnership

Partnership

PrivateCompany

Co-operativeSociety

PublicCompany

Parastatal

Other

2.2ParticularsofShareholders/Directors

NameandFull

Address

SexNationalityNational

Identity

Number

Equity(%)Equity

US$

LocalForeign

IfnecessaryuseaseparateSheetandattachwiththisform

3.OUTLINEOFBUSINESSPLAN.

3.1DetailsoftheProject

 (Ifmorespaceisrequired,pleaseattachsheetattheend)

3.2Detailsoftheproduct(s)and/orservices(s)tobeprovided:

3.3Pleaseindicatethetypeofproject.

NewExpansionModernisation

Isafeasibilitystudy/businessplanavailable?If"YES"

pleaseattach.

YESNO

3.4Pleaseprovidedetailsandattachtothisapplication:

(a)Professionalbackgroundandexperienceofeachshareholder

(b)Companybackgroundandexperience.

3.5NamesandaddressesofTWOindividualsororganizationswhocouldsupport:-

(a)Eachofyourshareholders’professionalbackgroundandexperience.

(b)Companybackgroundandexperience.

Pleaseincludetelephoneandfaxnumbersand/ore-mailaddressforeachreference.

3.6BANKERS:Pleaseprovidedetailsofyourbanker(s)andenclosebankers’reference.

(a)Foreachshareholder

(b)TheCompany

EachreferenceshouldincludePostalBoxaddress,Tel/Faxnumbersandcontactpersonname.

PARTII

4.FACILITIESNEEDEDFORPROJECTIMPLEMENTATION.

Whatfacilitiesareavailable/requiredfortheproject?

FACILITY

****AILABLE

STATUS

YES

NOOwned

RentedLeased

Undernegotiation

Land

Buildings

Plant&Machinery

Others(Pleasespecify)*

Plannedstartdate.*

If(i)Undernegotiations,pleasegivedetailsunderseparatesheet

(ii)Owned,RentedorLeased,pleaseprovideproof.

5.MACHINERYANDEQUIPMENTSCHEDULE

(Detailedlistmaybeattached.)

DescriptionSource/CountryValueinUS

Dollars

New(N)orSecond

Hand(SH)

TOTAL

Ifnecessary,useseparatesheetandattachitwiththisform.

6.EMPLOYMENTANDTRAINING

6.1Employmentinthefirstyear:

CATEGORYNUMBEROFEMPLOYEES

ZAMBIANNON-ZAMBIAN

ExistingAdditionalExistingAdditional

Management

Technical

Operatives

Others(specify)*

TOTAL