ABOUT ZAMBIA

Amongst all the countries in the African continent, Zambia, officially the Republic of Zambia, is a landlocked country situated in South-Central Africa. It is known for its diverse wildlife, vast national parks, and the iconic Victoria Falls. Zambia is the 39th largest country by area globally and the 17th most populous in Africa. The capital of Zambia is Lusaka, which is its largest and most populated city, serving as the country’s primary economic and administrative hub. According to the World Bank, Zambia is currently classified as a Low-Income Country, though it is actively working towards economic recovery and sustainable growth. The currency of Zambia is the Zambian Kwacha (ZMW), and the value of 1 Indian Rupee is approximately 0.328 Zambian Kwacha (or 1 ZMW is approximately 3.05 INR) as of today’s exchange rates (June 2025). The population of Zambia is estimated to be around 20.8 million in 2024. Its neighbouring countries are the Democratic Republic of the Congo and Tanzania to the north, Malawi and Mozambique to the east, Zimbabwe and Botswana to the south, and Namibia and Angola to the west. The official language of the country is English, with several indigenous languages such as Bemba, Nyanja, Lozi, and Tonga widely spoken. The majority of the Zambian population practices Christianity, with small communities of Muslims, Hindus, and traditional African beliefs also present. Currently, Zambia has several international airports, with Kenneth Kaunda International Airport (Lusaka) and Simon Mwansa Kapwepwe International Airport (Ndola) being the main international gateways. As a landlocked country, Zambia relies on the seaports of neighbouring countries, primarily Dar es Salaam in Tanzania and Durban in South Africa, for its international trade, with goods transported mostly by road and rail.

The corporate income tax rate in Zambia is generally 30% for most sectors. However, specific industries, particularly in mining, have variable royalty and corporate tax rates depending on mineral type and market prices. There are also incentives and tax holidays offered, particularly for investments in priority sectors like agriculture, tourism, and manufacturing, often contingent on certain investment thresholds or job creation. Opesh Group of companies will be helping you in completing the Due Diligence process which includes financial planning, registration process, business options, and if required, even helping you find a rental property for your office.

Establishing a business in Zambia has to be done with utmost care, keeping in mind the laws of the country. The Zambia Development Agency (ZDA) is the key institution for promoting and facilitating investment, offering various incentives and streamlined processes for foreign investors. A foreign investor who is planning to start his business in Zambia can form various company types, such as a Private Limited Company (LLC/Ltd), a Public Limited Company, or a Branch Office. While 100% foreign ownership of shares is generally permissible, Zambian law requires at least one resident director for companies with one or two directors, and at least half of the directors to be resident for companies with more than two.

In case an investor is planning to establish an LLC in Zambia or a corporate business setup, Opesh Group will be helping you in taking the right decision for setting up your business in Zambia and we will also guide you about how to follow the procedure while formulating your company in Zambia.

Types of Business which can be started in Zambia:

• Mining: Zambia is a major global producer of copper and cobalt, earning it the nickname “Copperbelt.” Opportunities are immense in copper, cobalt, nickel, gold, manganese, and emerald mining. This includes exploration, extraction, mineral processing (value addition), and supplying equipment and services to the mining industry.
• Agriculture & Agro-processing: Zambia possesses abundant arable land and water resources. Opportunities are vast in commercial farming (maize, wheat, soya beans, cotton, sugar cane, tobacco), livestock, fisheries, and especially in value-added agro-processing (food, beverages, edible oils, textiles) for domestic consumption and export.
• Energy (Renewables & Power Generation): Zambia has significant hydroelectric potential but faces power deficits. Opportunities exist in developing new hydropower projects, solar power installations (given high insolation), wind power, and energy efficiency solutions to meet growing demand.
• Tourism & Hospitality: Home to a share of Victoria Falls, vast national parks (South Luangwa, Kafue), and diverse wildlife, tourism is a significant sector. Opportunities include developing lodges, safari operations, cultural tourism, hotels, and related hospitality services.
• Manufacturing: The government is actively promoting industrialization to diversify the economy. Opportunities lie in manufacturing construction materials, consumer goods, fertilizers, textiles, and processing agricultural and mineral raw materials for both domestic and regional markets.
• Infrastructure & Construction: Driven by national development plans and mining sector needs, there’s continuous demand for investment in roads, railways, power transmission lines, housing, and industrial park development. This offers strong opportunities for construction, engineering, and material supply firms.
• Information & Communication Technologies (ICT): A growing sector with increasing mobile and internet penetration. Opportunities include expanding telecom infrastructure, digital services, e-commerce platforms, fintech solutions, software development, and IT support services.
• Transport & Logistics: As a landlocked country at the crossroads of Southern and Central Africa, investing in logistics, warehousing, cold chain management, and efficient transport services (road, rail, air cargo) is crucial for regional trade.

Advantages of Starting Business in Zambia:

• Political Stability: Zambia has a long-standing reputation for political stability and peaceful democratic transitions, providing a predictable investment climate.
• Abundant Natural Resources: Rich in copper, other minerals, vast arable land, and water resources, offering immense potential across various sectors.
• Strategic Location: Positioned as a gateway to several regional markets (SADC, COMESA), facilitating trade and distribution across Southern and Central Africa.
• Liberalized Economy & Investment Policies: The government actively promotes private sector growth and attracts foreign direct investment through various incentives and a relatively open economic policy.
• Growing Domestic and Regional Market: A young and growing population, coupled with access to regional economic blocs, provides a substantial consumer base.
• Improving Infrastructure: Continuous investment in roads, energy, and communication infrastructure enhances the ease of doing business.

Business Opportunities for Indians in Zambia:

There are excellent business opportunities in Zambia for new investors who are planning to start their business abroad. India and Zambia share strong historical and economic ties, with India being a significant trading partner and investor. Indian investors, with their strengths in mining, pharmaceuticals, agriculture, manufacturing, infrastructure, and IT services, can find vast opportunities. There’s particular potential in value addition to mineral resources, agro-processing, and developing the energy sector.

Imports & Exports:

Many goods are imported and exported from Zambia. Imports and exports business is an ever-growing business in any country; however, you need to do proper R&D before investing in that product which you can import or export. You need to check whether that product is suitable for your target market and how much revenue you will be able to generate from that market.

Major items which are exported from Zambia to India:

• Copper and articles thereof
• Natural or cultured pearls, precious or semi-precious stones (e.g., emeralds)
• Lead and articles thereof
• Oil seeds and oleaginous fruits
• Zinc and articles thereof
• Ores, slag and ash (other minerals)

Major items which are imported in Zambia from India:

• Pharmaceutical products
• Vehicles (passenger cars, commercial vehicles, two-wheelers)
• Machinery and mechanical appliances
• Plastics and articles thereof
• Iron and steel products
• Cereals (especially rice)
• Organic chemicals

Manufacturing:

Opportunities in manufacturing are strong, with a focus on import substitution and value addition to local raw materials. This includes processing agricultural produce (e.g., sugar, edible oils, beverages), manufacturing building materials (cement, steel products), textiles, and light consumer goods for both the domestic and regional markets.

Mining:

The mining sector is the cornerstone of Zambia’s economy, dominated by copper. Opportunities exist not only in large-scale extraction but also in exploration for new deposits, mineral processing (smelting and refining), and providing a wide range of support services and technology to the mining industry.

Major Indian companies which are currently working in Zambia:

Indian businesses and companies founded by Persons of Indian Origin (PIO) have a significant and long-standing presence in Zambia across various sectors:

• Vedanta Resources Ltd.: A major player in the mining sector (Konkola Copper Mines).

• Bharti Airtel: A leading telecommunications provider.

• Tata Group: Various interests including Tata Motors (vehicles), Tata Africa (diverse trade), and Tata Projects (infrastructure).

• Indo-Zambia Bank: A joint venture between the Governments of Zambia and three Indian public sector banks.

• Mount Meru Group: Significant investments in edible oils, fuel distribution, and logistics.

• Trade Kings Group: A large manufacturer of FMCG products, owned by Zambians of Indian origin.

• Pharmaceutical companies: Several Indian pharma companies have a strong presence in supplying medicines.

• Neelkantha Group: Diversified interests including manufacturing and hospitality.

• GDP = $28.16 billion (2023)

• GDP Growth = 5.83% (2023)

• Ease of doing business rank = 85 (2020 – Note: The World Bank discontinued this report, but this is the last available ranking.)

• GDP per Capita = $1,330.86 (2023)

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