Zambia is creating the perfect recipe for South African businesses to thrive and experience rapid growth. How, it’s becoming easier to do business with the country.
All the answers to your unique business lifestage questions
African countries are known to have poor infrastructure and electricity reliability. If your communications technology your company needs uninterrupted electricity supply, you might not feel motivated to move over the border. After all, an unreliable electricity supply could mean downtime, which in the Information Communication Technology (ICT) industry is enough to affect even the strongest players.
But, what if you could gain access to an east African country that offers growth potential for ICT businesses?
Zambia offers a diverse and sophisticated electricity supply along with increasingly favourable conditions for foreign business owners. In these conditions, you could create another successful, competitive environment for your company to thrive. Here are a few reasons why Zambia is where you want to expand your ICT business.
Related: How to take your business to Zambia
Because foreign direct investment is so important to Zambia, the country has established an investment framework that is more attractive to international businesses looking for new destinations. These framework benefits include reduced business tax rates and lower levels of red tape when applying for permits and licences.
Abundance of energy
99.7% of Zambia’s total electricity generation is through hydropower. But since they’ve realised that their absence of diversification in energy can present risks, the government has signed a memorandum with Kenya. This will lead to the construction of an interconnector between the two countries, which should be completed in 2018.
“This would improve Zambia’s electricity supply, as Kenya has an excess of electricity after it tapped into its vast geothermal energy,” according to Standard Bank’s Zambia report. To ensure the stability of Zambia’s energy supply they are also in the process of building a number of coal-fired and hydropower stations, boosting the energy capacity of the country.
Investing in Zambia
Now that you know that Zambia is stable with a steady energy supply and multiple contingency plans, here are incentives from their government to entice you into investing in their country.
“Foreign direct investment is growing significantly; this is driven by favourable conditions for foreign business ownership, investment incentives and special economic zones developed by the Zambian government,” according to Standard Bank.
Zambia is also a member of several international trade federations, which reduces international barriers and boosts commerce and investment openness. If your business were to deal with trading whether across border or internationally, Zambia has already created a favourable environment for your business.
Related: Sound lessons from 3 businesses making a leap into Zambia
The benefits of South African’s expanding into Zambia
There are specific reasons why being a South African business can give you an advantage when expanding into Zambia, namely:
- South Africa is already Zambia’s biggest trading partner, which means the channels are already open to you.
- There are numerous South African companies that have a fairly sizeable presence in the Zambian market, such Standard Bank as well as Shoprite.
To find out more about applying for a Zambian investor permit visit here. Standard Bank can also help provide insight into Zambia, help you set up a Business Account and introduce you to partners or suppliers you might need when growing into Zambia.
- Invest in Zambia as they offer incentives and favourable conditions to outside investment.
- Expand your business into Zambia as it has a stable economy, infrastructure and a growing market for your offering.
- See what other South African business’ have done when expanding into Zambia to ensure you don’t make the same mistakes.