INVESTMENT, TRADE AND BUSINESS DEVELOPMENT ACT

Arrangement of Sections

    Section

PART I
PRELIMINARY PROVISIONS

    1.    Short title and commencement

    2.    Interpretation

    3.    Administration of Act

    4.    Application

    5.    General principles governing investment and trade promotion

PART II
INVESTMENT PROMOTION AND GUARANTEES

    6.    Investment protection and promotion agreement

    7.    Declaration of special economic zone

    8.    Declaration of priority sector

    9.    Protection from compulsory acquisition

    10.    Externalisation of Funds

PART III
TRADE AND INDUSTRIAL DEVELOPMENT

    11.    Trade and industry development strategies

    12.    Trade and business development measures

    13.    Incentives for exporters of products and services

PART IV
BUSINESS DEVELOPMENT

    14.    Promotion of business

    15.    Prohibition of incentives to business without licence, permit or certificate

    16.    Eligibility for incentives by business

    17.    Validity period for incentives granted to business

PART V
LICENCE, PERMIT AND CERTIFICATE OF REGISTRATION

    18.    Application for licence, permit or certificate of registration

    19.    Conditions for approval of licence, permit or certificate of registration

    20.    Conditions of licence, permit or certificate of registration

    21.    Period of validity and renewal of licence, permit or certificate of registration

    22.    Investor to notify Agency of non-implementation of investment

    23.    Material changes in information furnished by applicant

    24.    Variation or amendment of licence, permit or certificate of registration

    25.    Suspension or revocation of licence, permit or certificate of registration

    26.    Prohibition to assign, cede or transfer licence, permit or certificate of registration

    27.    Surrender of licence, permit or certificate of registration

    28.    Duplicate licence, permit or certificate of registration

    29.    Register of licence, permit or certificate of registration

PART VI
INVESTMENT INCENTIVES

    30.    Eligibility for incentives by investor

    31.    Certification of investment for tax or duty relief or exemption

    32.    Prohibition of incentives to investor without licence, permit or certificate of registration

    33.    Recommendation for incentives by Agency

    34.    Withdrawal of incentives

    35.    Certification of compliance for relief or exemption

    36.    Double taxation agreements

PART VII
TRADE AND INVESTMENT DEVELOPMENT FUND

    37.    Establishment of Trade and Investment Development Fund

    38.    Purpose of Fund

    39.    Management of Fund

    40.    Control of use of Fund

    41.    Books of accounts

    42.    Auditing of Fund

    43.    Annual report

PART VIII
GENERAL PROVISIONS

    44.    Appeal

    45.    Submission of information by investor

    46.    Submission of annual returns

    47.    Electronic submission and payment

    48.    False statements

    49.    State institution to consult Agency

    50.    Regulations

    51.    Savings and transitional provisions

        SCHEDULE

AN ACT

to foster economic growth and development by promoting trade, business development and investment in the Republic through an efficient, effective and co-ordinated private sector led economic development strategy; promote economic diversification through the growth of exports; promote, facilitate, protect and monitor domestic and foreign direct investment; promote investment through joint ventures and partnerships between local and foreign investors; facilitate the development of industrial infrastructure and commercial services; promote research on matters related to industrial development; facilitate the protection of infant industries; and provide for matters connected with, and incidental to, the foregoing.

[On Notice]

Act 18 of 2022.

PART I
PRELIMINARY PROVISIONS

1.    Short title and commencement

This Act may be cited as the Investment, Trade and Business Development Act, and shall come into operation on the date the Minister may appoint by statutory instrument.

2.    Interpretation

In this Act, unless the context otherwise requires—

"AfCFTA" means the African Continental Free Trade Area established in 2018 under the African Free Trade Agreement signed in Kigali, Rwanda on 21st March, 2018;

"ACP-EU Partnership Agreement" means the Cotonou Partnership Agreement that governs the relations between the European Union and countries in Africa, the Caribbean and the Pacific;

"Agency" means the Zambia Development Agency established under the Zambia Development Agency Act, 2022;

"AIDS" has the meaning assigned to word in the National HIV/AIDS/STI/TB Council Act, 2002;

"authorised officer" has the meaning assigned to the words in the Zambia Development Agency Act, 2022;

"Board" means the Board of the Agency constituted under the Zambia Development Agency Act, 2022;

"business" has the meaning assigned to the word in the Business Regulatory Act, 2014;

"certificate" means a certificate of registration issued under section 19;

"citizen" has the meaning assigned to the word in the Constitution;

"citizen empowerment company" has the meaning assigned to the words in the Citizen Economic Empowerment Act, 2006;

"citizen influenced company" has the meaning assigned to the words in the Citizen Economic Empowerment Act, 2006;

"citizen owned company" has the meaning assigned to the words in the Citizen Economic Empowerment Act, 2006;

"COMESA" means the Common Market for Eastern and Southern Africa Organisation established under the Treaty establishing the Common Market for Eastern and Southern Africa;

"Commissioner-General" means the Commissioner-General of the Zambia Revenue Authority;

"Director-General" has the meaning assigned to words in the Zambia Development Agency Act, 2022;

"financial institution" has the meaning assigned to the words in the Banking and Financial Services Act, 2017;

"Fund" means the Trade and Investment Development Fund established under section 37;

"Fund Manager" means the Fund Manager appointed under section 39;

"HIV" has the meaning assigned to word in the National HIV/AIDS/STI/TB Council Act, 2002;

"investment" means contribution of capital, in cash or in kind, by an investor to a new business, to the expansion, rehabilitation or diversification of an existing business or to the purchase of an existing business from the Government or the purchase of an existing private business;

"investor" means any person, natural or juristic, whether a citizen or not, investing in the Republic in accordance with this Act;

"licence" means a licence issued under section 19;

"local auditing firm" means a firm registered with Zambia Institute of Chartered Accountants operating in the Republic and not under an international franchise;

"local investor" means a person who makes a direct investment in the Republic provided that, that person in the case of a—

    (a)    natural person, is a citizen; and

    (b)    juristic person, is incorporated in the Republic and the person’s equity is 100 per cent owned by citizens;

"manufacturing" means the act of transforming, through chemical, biological or physical processes, and adding value, on a commercial scale, from raw materials into finished or semifinished products, and includes the assembling of inputs into finished or semifinished products;

"permit" means a permit issued under section 19;

"priority sector" means a sector or product that has a high growth potential as may be prescribed;

"regulatory agency" has the meaning assigned to the words in the Business Regulatory Act, 2014;

"rural area" has the meaning assigned to the words in the Income Tax Act;

"SADC" means the Southern Africa Development Community established under the Southern Africa Development Treaty signed in Windhoek, Namibia on 17th August, 1992;

"special economic zone" means an area that is subject to unique economic regulations and includes multi-facility economic zones, industrial parks, inter-country trade zones and export processing zones;

"State institution" has the meaning assigned to the words in the Constitution;

"repealed Act" means the Zambia Development Agency Act, 2006;

"value addition" means any step that improves a product or service in the production process through the science of value adding technologies such as processing, preservation, dehydration and drying, freezing, improved packaging, labelling, grading and marketing for the customer and results in a higher net worth, and includes the generation, transmission and distribution of energy and development of tourism sites; and

"WTO" means the World Trade Organisation established under the World Trade Organisation Agreement signed in Marrakesh, Morocco on 15th April, 1994.

3.    Administration of Act

    (1) This Act shall be administered by the Agency.

    (2) The seal of the Authority kept in terms of the Zambia Development Agency Act, 2022, shall be used for the purposes of this Act and the impression made for that purpose shall be judiciously noticed.