Zambia, with its numerous lakes and rivers, has good potential for the generation of hydropower. Investors are invited to participate in the creation of new hydropower plants or the further development of existing projects. One of these projects is situated on Lake Kariba.
Name of Project: Kariba North Bank
Promoter: Ministry of Energy and Water Development
Location of the project: Kariba
Project Description: Addition of 2 X 180MW units to the existing power station using the same reservoir. The estimated cost of the project is US$300 million. This is a greenfield project.
Incentives Available:
Non fiscal Incentives
Anyone with an Investment Licence is entitled to the non fiscal incentives listed below:
• Investment guarantees and protection against state nationalisation
• Free facilitation for application
of immigration permits, secondary licenses, land acquisition and utilities
Fiscal Incentives
These apply to investors investing not less than $500,000 in a priority sector:
• Company Tax will only be charged on 50% of the profits earned for a period of 5 years starting with the first year of profitability
• Dividends shall be exempted from tax for 5 years from the year of first declaration
• Capital Expenditure on improvement or for the upgrading of infrastructure shall qualify for improvement allowance of 100% of such expenditure
• Suspended Customs Duty to zero for 5 years on machinery and equipment
Licences needed: Generation, Transmission, Supply and Distribution licences.
Contact: Ms Florence Mumba, Director: Investment Promotion and Privatisation
Zambia Development Agency
Tel: +260 211 220177
Email: fmumba@zda.org.zm
