Mining in Lusaka
Deposits of various minerals and precious stones such as copper, limestone, gemstones and gold are available within Lusaka Province. All these are potential investment opportunities. Investment opportunities also exist in cement manufacturing within Kafue and Chongwe Districts. Quarrying is also a major investment potential due to an abundance of various stones in the mountainous parts of the Province.
The Zambia Development Agency Act provides for incentives for companies investing substantial amounts in the mining sector in the country. The Act provides for the investment thresholds that investors have to meet in order to qualify for fiscal and non-fiscal incentives. Currently, the threshold is; investments of US$ 500,000 and above qualify for the incentives.
The general investment incentives applicable to the mining sector are;
- Guaranteed input tax claim for five years on pre-production expenditure for exploration companies in the mining sector.
- Any mining company holding a large-scale mining license carrying on the mining of base metals is taxed at 30%. Other mining companies are taxed at 35%
- Dividend paid by a mining company holding a large-scale mining license and carrying on the mining of base metals is taxed at 0%
- Income earned by companies in the first year of listing on the Lusaka stock exchange qualifies for a 2% discount on the applicable company tax rate, however companies with more than 1/3 of their shareholding in the hands of Zambians qualify for a 7% discount
- Duty free importation of most capital equipment for the mining sectors.
- 100% mining deduction on capital expenditure on buildings, railway lines, equipment, shaft sinking or any similar works.
- The debt to equity ratio reduced from 2:1 to 3:1 to encourage further investment in the sector.