Zambia: A Land of Natural Wonders and Investment Opportunities

Home to the awe-inspiring Victoria Falls,  one of the Seven Natural Wonders of the World, Zambia offers travelers the birthplace of the walking safari, where pristine wilderness and abundant wildlife create unforgettable experiences. Beyond its natural beauty, Zambia is also one of the world’s leading copper producers, earning the title “the Copperbelt Nation.” This unique blend of natural wonders and mineral wealth makes Zambia a landlocked gem in south-central Africa. 

Yet, Zambia is more than a destination for tourism and minerals;  it is increasingly recognized as a prime hub for investment. Recently, the Oxano Capital team visited Zambia to engage with key stakeholders, explore the investment landscape, and witness firsthand the country’s abundant resources and vast potential. Based on this experience, here are the reasons why Oxano Capital sees Zambia as a strategic destination for impact investment. 

1. Stable Political Environment: Zambia has enjoyed political stability since gaining independence in 1964 and has been a multi-party democracy since 1991. During our visit, we observed a sense of optimism and confidence among citizens regarding the current political climate and the nation’s future, a strong foundation for sustainable investment.

2. Liberalized Market Economy: Zambian economy is fully liberalized, with the abolition of controls on prices, interest rates, and foreign exchange. Most state-owned enterprises have been privatized, creating an environment that encourages private-sector growth and entrepreneurship. 

• Zambia has enacted policies designed to attract and protect investors. These include: 

• - 100% repatriation of net profits and debt repayments. 

• - Full market-value compensation guarantees. 

• - Security of investment under the Zambian Investment Act. 

• Zambia’s strategic location provides seamless access to regional and international markets: 

• - Duty-free trade within the SADC and COMESA Free Trade Areas. 

• - Preferential access to the U.S. market through the African Growth and Opportunity Act (AGOA). 
• 5.  Robust Investment Incentives 

• Under the Zambia Development Agency (ZDA) Act of 2006, investors benefit from: 

• - Zero tax on profits and dividends for up to 5 years. 

• - Reduced corporate tax rates (50%–75%) in subsequent years. 

• - Exemptions on import duties for capital goods, machinery, and raw materials. 

• - Tax holidays for micro and small enterprises (3 years in urban areas, 5 years in rural areas). 

• - VAT deferment on machinery and equipment. 

6. Abundance of Natural Resources: Zambia is richly endowed with natural resources, boasting vast reserves of copper, cobalt, gold, and gemstones, alongside fertile agricultural land ideal for crops such as maize, sugar, cotton, coffee, and other high-value produce. The country also holds significant renewable energy potential, with an estimated 4,000 MW of hydropower capacity, of which 1,760 MW is already installed.

• - Agriculture: Farming blocks, fertile land, and supportive policies enable crop production, horticulture, floriculture, and agro-processing. 

• - Tourism: Cultural heritage, game reserves, and natural landmarks open prospects in hotels, lodges, eco-tourism, and related services. 

• - Mining: Beyond copper, Zambia’s mineral wealth creates opportunities for value addition and sustainable mining practices. 

• - Manufacturing: Growing demand for agro-processing, textiles, leather, and construction materials fuels industrial expansion. 

• - Energy: With nearly 100% of electricity generated from hydropower, Zambia presents opportunities in generation, distribution, and renewable energy solutions. 
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Our visit to Zambia underscored the country’s readiness for impact investments and its alignment with the principles of the triple bottom line, people, planet, and profit. By leveraging Zambia’s favorable incentives and engaging in sectors that drive both growth and sustainability, Oxano Capital aims to foster economic development while generating measurable social and environmental impact. 

As Oxano Capital continues to expand its footprint across Africa, Zambia stands out as a promising destination for innovative and responsible investors who seek not only financial returns but also transformative, long-term impact.