Tax
ZAMBIA TAX KEY FIGURES
| Fiscal Incentive Threshold | Local Investor Threshold | Telecoms Tax Revenue Share | SME Procurement Preference |
|---|---|---|---|
| USD 500,000 | USD 50,000 | 20% | Statutory Instrument No. 45 of 2025 |
Investors putting at least USD 500,000 into a Multi-Facility Economic Zone, industrial park or priority sector qualify for a 0% import duty rate and accelerated depreciation on capital equipment for five years, while wholly Zambian-owned investments in priority sectors qualify at a reduced USD 50,000 threshold.
The telecommunications sector alone accounts for 20% of Zambia’s total tax revenue, while Statutory Instrument No. 45 of 2025 gives small and medium enterprises preference in public procurement to help retain wealth within local communities.
Investment Tax Incentives
Investors putting at least USD 500,000 into a Multi-Facility Economic Zone, an industrial park, a priority sector or product, or a rural enterprise qualify for a 0% import duty rate and accelerated depreciation on capital equipment and machinery for five years under the Zambia Development Agency Act No. 17 of 2022[1]. The minimum investment threshold for wholly Zambian-owned investments in priority sectors has been reduced from USD 500,000 to USD 50,000[1].
Sector Tax Contributions and Procurement Policy
The telecommunications sector accounts for 20% of Zambia’s total tax revenue, according to the inaugural PwC Zambia Telecommunications Report 2025, which describes it as the fastest-growing sector in the economy on that measure[2]. To build the capacity of local businesses to compete fairly and retain wealth within communities, Government issued Statutory Instrument No. 45 of 2025 to give small and medium enterprises preference in public procurement[3].
Investment Opportunities
The gap between the USD 500,000 general investment threshold and the USD 50,000 threshold for wholly Zambian-owned priority-sector investment marks two distinct tax and incentive pathways, relevant to structuring any new investment as either a large foreign or joint-venture project or a smaller, fully local enterprise, detailed further on the dedicated Legal Framework and investment pages[1].
Last Update: September 2026
