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Full meaning African Union Community of Sahel–Saharan States Common Market for Eastern and Southern Africa Economic Community of West African States Foreign direct investment Gross domestic product Inclining block tariff(s) International Monetary Fund Independent power producer Kilowatt Kilowatt hour Liquid petroleum gas Megawatt Pay as you go Power purchase agreement Private public partnership Standard and Poors Global Ratings Sub-Saharan Africa Transmission and distribution Time of use West African Economic and Monetary Union United Nations Industrial Development Organization Value added tax World Bank Regulatory Indicators for Sustainable Energy General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP. Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable. This percentage is calculated from the number of mobile cellular subscriptions per 100 adults. Occasionally a single user will have more than one mobile subscription and so it is possible for this value to exceed 100%. 190 countries ranked This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. Disclosed share of foreign investment in the clean energy sector (of both local and foreign investment in clean energy, this tells us the amount of foreign investment in clean energy). This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. Downgraded in February 2020 Downgraded in August 2019 Downgraded in August 2018 Downgraded from B+ in July 2015 As per the Consolidated Tariff book As per the Consolidated Tariff book As per the Consolidated Tariff book There is inconsistency between the Value Added Tax (Zero-Rating) Order, 2010 and the Consolidated Tariff book. The latter states that the standard rate of 16% applies, while the former mentions an zero-rating. Consultations with local companies in Zambia confirmed that they are not paying VAT on solar and batteries, which means that the Zero Rating Order is in force. No mention of wind turbines in Zero rating order. Standard rate applies as per the Consolidated tariff book There is inconsistency between the Value Added Tax (Zero-Rating) Order, 2010 and the Consolidated Tariff book. The latter states that the standard rate of 16% applies, while the former mentions an zero-rating. Consultations with local companies in Zambia confirmed that they are not paying VAT on solar and batteries, which means that the Zero Rating Order is in force. The median time (the value for 50 percent of shipments) from port of discharge to arrival at the consignee. Refers to all types of entry ports. Unit is days. Year is 2018, unless specified otherwise. The real economic growth, or real GDP growth rate, measures economic growth as it relates to the GDP from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms. The real economic growth rate considers inflation in its measurement of economic growth, unlike the nominal GDP growth rate, which does not. 167 countries ranked. Scores are averaged across 2012, 2014, 2016 and 2018 with the last year weighing most of the score. See "Source" below for more details.

The components analysed in the International LPI include:
• The efficiency of customs and border management clearance;
• The quality of transport infrastructure;
• The ease of arranging shipments;
• The quality of logistics services;
• The ability of tracking and tracing;
• The frequency with which shipments reach consignees within expected delivery times.

Overview

Zambia’s economic growth slowed significantly in 2019, contracting to 1.5% from 4% in the previous year. Per capita gross domestic product (GDP) declined accordingly, dropping by 15% to €1171. Already high levels of national debt, exceeding 60% of GDP in 2017, surged to more than 90% in 2019. The country’s investment grade ratings saw downgrades by both Moody’s and Standard and Poor’s (S&P) in each of the three years up to 2020. Current ratings are Ca and CCC as determined by each rating agency respectively. Meanwhile, the country’s ease of doing business ranking has climbed several places since 2015, improving from 111 of 190 countries to 87 in 2019.

Inflation in Zambia has been volatile over the last few years, with strong moves in both directions. Rates rose by 7% in 2018 to 9.8% in 2019, following a drop from 17.9% to less than 7% between 2016 and 2017. This volatility is reflected in the relative strength of the Zambian kwacha against major global currencies. Exchange rates with the US dollar and euro show double digit quarterly changes nearly every year since 2015. Amid the volatility during this period, the domestic currency has lost much of its value, effectively doubling the price of a US dollar or euro over the same period.

Foreign investment into the country more than halved between 2017 and 2018, both in US dollar terms and relative to GDP. The inflow of almost €350 million in 2018 is substantially less than foreign investments exceeding €1 billion in both 2014 and 2015. This difference highlights the country’s historic ability to attract investment. The Zambia Development Agency (ZDA) is the government authority mandated to develop and oversee investment and trade in the country. Energy is one of six key sectors the ZDA plans to develop, with a keen focus on renewable sources.

In contrast to total investment, clean energy investment volumes grew between 2017 and 2018, from €52.8 million to €62.8 million. In the same period, foreign capital accounted for 79% and 83% of total clean energy investment, respectively. The country’s taxation regime is generally favourable to renewable energy technologies, with no import duties charged on solar panels, wind turbines or batteries. A VAT rate of 16% is applicable to wind turbines while other technologies are charged a zero rate.
Regional affiliation
AU, COMESA, ICGLR, SADC
Official language(s)
English
National currency
kWacha
Presence of port
No
Zambia uses the following ports (distances are to Lusaka): -South Africa's Durban port (approx 2,100 km) -Mozambique's Maputo, Nacala & Beira ports (approx. 1,600 km, 1,900 km & 1,000 km respectively) -Namibia's Walvis Bay port (approx 2,000 km) -Tanzania's Dar es Salaam port (approx. 2,000 km)
Next planned election and cycle length
2021 (5-year cycle)

Demographics

Population
% urban population of total population
% rural population of total population
Population growth rate
Working age (15-64) share of total population
Working age (15-64)
Rest of population
Urbanisation rate (% urban population growth)

Connectivity

Mobile telecom operators
MTN
Airtel
Zamtel
All three connectivity indicators
% penetration of mobile cellular subscriptions
% penetration of mobile money
% population with access to internet

Logistics, Import duties and value added tax

Logistics

Median lead time to import
2018
Aggregated Logistics Performance Index ranking
2018
118

Import Duties and Value-Added Tax

Import Duties
Solar panels
Wind turbines
Batteries (for renewable energy storage)
VAT
Solar Panels
Wind turbines
Batteries (for renewable energy storage)

Business intelligence

Energy Ranking

Climatescope ranking
2019
13
2018
21
2017
47
2016
39
2015
34
WB RISE ranking
2018
97
2016
75
2014
Not ranked

Economy

GDP
Real GDP growth
GDP/capita, real
SSA average
GDP/capita, real
SSA average
GDP/capita, real
Debt to GDP ratio (gross debt)
Inflation rate
Exchange rate
Currency exchange rate vs. EUR and USD
Currency exchange rate vs. EUR
Currency exchange rate vs. USD
Total volume of clean energy investment
% foreign investment in clean energy
2018
83.00%
2017
79.00%
Methodologies
Get to know how this Country Brief was developed
Read more
Contact
Questions or feedback are always welcome
info@get-invest.eu