US firms seeking to invest in Zambia will benefit from tax waivers, as long as they operate in an economic zone initially created for Chinese companies.  

Trade Minister Felix Mutati said investors manufacturing computer software, vehicle spares and other products from the US would also qualify for the same tax benefits, which Chinese companies are already enjoying.

The government said it would offer US firms operating in China tax incentives as well if they relocated their investments to Zambia. The Chinese firms plan to construct 3000 houses in the  economic zone.

MChina Non-Ferrous Metals Corp has invested in a $250-million copper smelter in Chambishi where the government has zero-rated corporate tax for the first five years of operations and deferred payments of 16% value added tax. The government also waived tax on dividends and customs duty of capital equipment, a move which has attracted 50 Chinese firms so far

An initial 6000 direct new jobs would be created in the Chambishi zone with an additional 15 000 indirect employment created by local contractors who would be supplying various goods and services to the foreign firms.

South Africa's HBW Developers and a Zambian firm, Phoenix Supplies, plan to invest a total of $190-million in a shopping mall in Chambishi, including the expansion of a shopping mall in the capital Lusaka at a cost of $30-million.

Zambia has  liberalised its investment policies to award tax incentives to foreign companies in a bid to grow the economy.