TRADE REGULATIONS
Imports
Zambia has two import categories:
- Goods paid for with funds remitted from the Bank of Zambia
- Goods paid for with funds held outside the country.
An import licence is required for both the categories of goods and should be obtained in advance by the Zambian importer.
Export Procedures and Documentation in Zambia
Zambia exports a wide range of products and the main, or traditional exports, are refined minerals Copper, lead, zinc and cobalt. Other exports, commonly referred to as Non Traditional copper semi manufactures, gemstones, fresh fruits and vegetables and timber and wood and wood products.
Zambia has one of the simplest and hurdle free export procedures in Southern Africa and the COMESA subregion. The documentation is basically the same with minor differences depending on whether the product is traditional, non traditional or personal effects.
Export Permits
No export permits are required as these have been replaced by Export Declaration Forms. Mineral products (copper, zinc, lead and cobalt) are exported by use of Export Declaration Form Number one (Form EXD No. 1); Non traditional exports by use of Form EXD No. 2, while gifts, trade fair exhibits and personal effects for non residents and other persons leaving Zambia for good or for long periods are exported on Form EXD No.3.
Except for very few selected products, no other bank or customs documentation is required other than the usual accompanying documents, where necessary, like commercial invoices, road/rail consignment note or airway bill, which transporters/freight forwarders take care of anyway.
Grain exports are occasionally subject to seasonal regulation such as during drought years by the Ministry of Agriculture Food and Fisheries to forestall shortages on the domestic market.
Gemstones are subject to pre export inspection and valuation by the Ministry of Mines and Minerals Development which issues a special permit.
VAT and Export Taxes
Export products do not attract Government VAT and there is no export tax on exports from Zambia, except on minerals and gemstones which are taxed at 5%.
Export Procedures (Non Traditional Exports)
- An exporter obtains and completes Form EXD in six copies from his commercial bank.
- The commercial bank endorses/approves the form if payment for exports is by advance payment, cash or letter of credit. Other modes of payment require the form to be referred to the Bank of Zambia for approval and later payment reconciliation.
- The commercial bank hands back all five copies of the approved form EXD as appropriate to the exporter who then proceeds to the point of exit with his product.
Certificates of Origin
To benefit from preferential entry to COMESA, EU and selected EFTA and other countries, an exporter needs to complete the appropriate certificate of origin, e.g. EUR Form 1 for exports to the EU, COMESA Certificate of Origin for exports to COMESA member states GSP Schemes for exports to USA, Canada and the Scandina vian countries.
SPECIAL TRADE ARRANGEMENTS
Common Market for Eastern and Southern Africa (COMESA)
Zambia is a member country and houses the headquarters of the Common Market for Eastern and Southern Africa Secretariat. Zambia extends to fellow member states any preferences mandated by current membership rules. Hence COMESA duty rates apply to the country's imports.
Southern Africa Development Community (SADC)
SADC was set up to liberalise trade and integrate economic devel opment of the 10 countries of which Zambia is one. The country is in the fore front in trying to achieve SADC's objectives.
TRADE FAIRS
Zambia International Trade Fair
The Zambia international Trade Fair (ZITF) takes place annually at the end of June to beginning of July, in Ndola. The ZITF is a commercial show which attracts exhibitors of a wide range products from all over the world.
Zambia Agricultural and Commercial Show
The Zambia Agricultural and Commercial Show (ZACS) is an interna tional exhibition of agricultural produce and equipment and manufactured goods. It is an annual event held in Lusaka at the beginning of August. Like the ZITF, ZACS attracts large numbers of local and foreign exhibitors.
GENERAL ECONOMIC INFORMATION
The main tenets of the current government economic policy are privatisation of over ninety (90) state owned Enterprises (SOEs), liberalisation of the economy and investment and export promo tion. Adequate policy instruments and relevant legislation have all been promulgated and enacted to facilitate implementation of these economic measures.
Macro economic Indicators
| Population: | 8.3 million (1993 estimate) | | Population growth rate: | 3.1 % |
| GDP per capita: | US $ 220 (1990), US $260 (1993) |
|
| 1990 | 1991 | 1992 | 1993 | 1994 |
| Real GDP growth, % | 0.5 | 0.35 | 3.81 | 5.22 | 5.1 |
| Inflation, % | 109.5 | 93.3 | 191.4 | 187.1 | 38 |
| Exchange rate,average ZK=US$1 | 40.72 | 64.63 | 172.2 | 452.7 | 670 |
| Total Exports, US$ | 1,096 | 1,125 | 1,076 | 1,105.8 | 1,114.05 |
| Total External Debt in US $ billion | 7.0 | 7.2 | 6.6 | 6.6 | 6.2 |
| Money Supply growth, % | 65 | 98 | 99 | n.a | 50.3 |
| Formal Employment,'000 | 537 | 539 | 517 | 511 | 500 |
Source: Central Statistical Office, Lusaka.
Mining
Mining is Zambia's main economic activity. The earnings from mainly Copper exports account for up to 90% of Zambia's foreign exchange. Other minerals include Lead, Zinc, Cobalt, Silver and Gold. Foreign exchange earnings from the above mentioned minerals average to a total value of US $1200 million.
In recent years however, the gemstone sector consisting of emeralds, aquamarine, amethyst, tourmaline and garnet has contributed significantly to Zambia's foreign exchange earnings. Out of about US $1 billion of rough emeralds produced globally, 20% of it is from Zambia.
Agriculture
Both the government and the private sector have realised that sustainable growth for Zambia's economy depends a lot on developing and making full utilisation of the country's vast and fertile land resources. A number of both local and foreign investors have invested heavily in agriculture sector with a bias towards export production.
Primary agricultural products available for export include: wheat, cotton, coffee, cashew nuts, maize and soya beans. Flori culture and horticulture production has increased considerably in the past few years and producers have penetrated the competitive European markets.
Manufacturing
Zambia has a vibrant public and private sector manufacturing industry. Zambia's main manufactured products include: edible oils, sugar, cigarettes, textiles, paper, rubber, chemicals, cement, automobiles assembling, shoes, light electrical and engineering equipment and a wide range of metal products. Many of the public sector manufacturing firms are slated for privatisation in line with the Government's Privatisation policy. Details are available from the Zambia Privatisation Agency.
Forests
Zambia is rich in forest. Good quality teak grows in the Western Province. Sawmills supply sawn and finished timber to railways for sleepers and flooring work. Timber based industries have considerable potential for domestic and export markets.
Tourism
Zambia is endowed with magnificent natural wonders including the famous Victoria Falls and nineteen game reserves. The tourism industry is one of the country's foreign exchange earners.
Several tourists visit Zambia every year and a few of these after discovering the vast potential for investment have come back to open tour travel operations and other related activities. In 1993 alone about 20 tour and travel companies were opened.
Handicrafts
The handicraft industry has great potential to contribute signif icantly to the country's non-traditional export earnings. A variety of handicrafts are produced mainly in the rural areas.
The Western and Southern provinces produce mostly basketware that is hand woven by women.
A variety of other crafts are produced and exported by men living in the urban and rural areas.
These include: Tonga baskets, Makenge and Mukulwani baskets, wooden carvings, ebony household goods, wooden bracelets and traditional instruments.
Investment
The government of Zambia through the
Zambia Investment Centre
has embarked on an aggressive investment promotional campaign. The Centre was set up in 1991 when the Investment Act was passed. It facilitates, promotes and regulates domestic and foreign investment.
Investment opportunities exist in: agriculture, tourism and mining sectors, utilities and services such as transportation, distribution networks and generation and supply of electricity. Other opportunities exist in manufacturing such as transformation of agricultural produce, minerals
and timber into finished products.
This information is provided by the Export board of Zambia, © EBZ, 1995, 96
Email address: ebzint@zamnet.zm