Region
Zambia

Sector
Energy

Summary:

Zambia's ministry of energy and water development is planning two power plants for which it is seeking financing. The country has huge hydropower generation potential at its numerous lakes and rivers.

Contact
Ms Florence Mumba, Zambia Development Agency

Email
fmumba@zda.org.zm

Project: Kariba North Bank power plants

Location: Kariba

Summary: The ministry of energy and water development plans an additional 2 X 180MW units to the existing power station on Kariba, using the same reservoir. This is a greenfield project, which intends to exploit the hydropower generation potential at Zambia's numerous lakes and rivers.

Cost of project: US$300-million

Sectoral licences: Generation, transmission, supply and distribution.  

Incentives:

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

For further information contact Florence Mumba, Director: Investment Promotion and Privatisation 
Zambia Development Agency
Tel: +260 211 220177 
Email: fmumba@zda.org.zm