There is an opportunity to develop additional tourism-related structures in the Kafue National Park in Zambia. Kafue is a very large national park with a wide variety of wildlife in relatively close proximity to Lusaka.
Project Description
The land would be leased from the Zambia Wildlife Authority. The intention is for the project to primarily comprise of the following:
i) Construction of a lodge accommodation for 24 guests and setting up complimentary facilities, which would include a curio/gift shop, lounge, swimming pool, laundry and tribal cultural activities.
ii) Development and provision of tourist services and products, which would include bird watching, bush walks, game drives, canoeing, and photographic tours, local cultural activities and a basket/crafts market. The lease period is for an initial 10 years, thereafter it is subject to renewal.
Prospects for
tourism sector
The tourism industry in Zambia has grown over the past few years. The steady increase in visitor numbers and shortage of facilities has meant that there is a shortage of accommodation in many of the national parks. Preliminary estimates indicate that the total number of tourist arrivals collected from the twelve ports of entry spread across the country increased from 756,860 in 2006 to 805,059 in 2007 alone.
In terms of direct revenue receipts, earnings in the tourism sector grew at an increasing rate in 2007 as compared to that of 2006.
Expectations of the project promoters
They are seeking equity investment as well as management and international marketing for the project.
Some of the incentives currently on offer include:
• Facilitation of acquisition of self-employment work permits for foreign investors
• Liberalisation of air policies that promote access into Zambia
• Visa waiver on tour packages organised by a foreign tour operator and handled by a licensed Zambian tour operator
• 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.
• Unrestricted externalisation of 'after-tax' income shall be allowed
• A corporate tax of 0% for an initial period of 5 years from the first year profits are made. For years 6 to 8 corporate tax will be paid on 50% of profits and in year 9 to 10 on 75% of the profits.
Contact:
Ms Florence Mumba, Director Investment Promotion and Privatisation
Zambia Development Agency
email: fmumba@zda.org.zm
