How to plan to Invest in Zambia
Zambia is a resource-rich country with a stable political system. While it is still an emerging market, there are many opportunities for long-term investments. The country is the second largest copper exporter in the African region, and it is blessed with other precious metals like gold and silver as well as some gemstones. There are investment opportunities in Zambia in a few notable industries. Consider energy, mining and agriculture. It also enjoys a thriving tourism trade.
Image via Royal Livingstone Hotel by Anantara
Spend some time in Zambia to learn the ropes
If you plan on investing in Zambia, it makes sense to spend some time getting to know its culture. Take some time to explore the country’s potential and get to know its people. If you wish to invest in the tourism sector, check out Livingstone hotel Victoria Falls. The Government is open to holiday resort development through Private Public Partnerships (PPP). In the meantime, check if hotels like the Royal Livingstone Hotel by Anantara offer deals for a long stay. You can travel a bit and get to know the locals. Try to network with the expats and business circles to find out the unwritten rules and ease of investment in the country. Once you know the culture and particular business trends and ethics there, you’ll be better prepared to make informed decisions.
What are the mining investment opportunities available in Zambia?
As the second largest copper producer in Africa, Zambia enjoys a booming copper trade. While volatile tax and regulatory changes stood in the way of investments earlier, the new systems are more accommodating. There are investment opportunities in mining, engineering, construction, water management and even environmental services. You can also look into other precious metal mining either with existing extraction sites or value-added industries.
What are the energy investment opportunities in Zambia?
The demand for electricity keeps growing in Zambia at about a 3 per cent rate. There are opportunities for investment in electricity generation in the off-grid market. As the demand and feasibility of renewable energy grow Zambia is a good place to start. Large-scale energy generation infrastructure is currently facing challenges.
What are the agriculture investment opportunities in Zambia?
Although Zambia’s water resources and climate creates great potential for agricultural growth, the yield tends to be low. This is somewhat due to the lack of progressive agronomics practices and mechanization and the lack of access to better seeds and fertilizer. However, there are investment opportunities in cold chain storage and food processing to cater to regional markets (the Democratic Republic of the Congo, and South Africa).
What are the tourism investment opportunities in Zambia?
Zambia is beautiful and already enjoys a luxury and safari tourism market. There are 20 national parks as well as 34 game management areas in Victoria Falls. The government is eager to offer Public Private Partnerships for resort development in this area. As global tourism grows, Zambia is expected to experience a shortage of hotels in touristic areas and mining regions. There are opportunities for investment in hospitality services, tourism site operations and infrastructure building.
What are the challenges in investing in Zambia?
Investment businesses can face challenges such as poor road networks and disruptions in energy supply. The Government has started infrastructure investment to address these problems, but it could take a while. You might also face difficulty in getting administrative permits and licenses. Corruption and bribery as well as lengthy delays in paperwork are allegedly part of the problem. You could address this particular issue by partnering with a local. Existing mining sector investors have brought up the issue of the Government withdrawing some benefits to mining companies. They have started negotiations to solve this problem.
