Zambia Country Handbook

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Contents

1. OVERVIEW ................................................................................................................... 1
2. ROAD TRANSPORT SYSTEM ...................................................................................... 1
2.1 Border posts ............................................................................................................................... 1
3. ROAD TRANSPORT LEGISLATION ............................................................................ 2
3.1 Speed Limits ............................................................................................................................... 2
3.2 Traffic Fines ................................................................................................................................ 2
3.3 Toll Plazas .................................................................................................................................. 3
4. CROSS BORDER ROAD TRANSPORT PERMITS ....................................................... 5
5. DEVELOPMENTS AND ECONOMIC OUTLOOK.......................................................... 5
5.1 Zambia’s Trade with SADC ...................................................................................................... 6
5.2 Trading across borders ............................................................................................................. 6
6. EASE OF DOING BUSINESS ....................................................................................... 7
7. REQUIREMENTS FOR IMPORTATION AND EXPORTATION ..................................... 8
7.1 Importation Procedure .............................................................................................................. 8
7.2 Exportation Procedure .............................................................................................................. 8
8. OPPORTUNITIES .......................................................................................................... 9
9. CONTACT DETAILS OF RELEVANT AUTHORITIES ................................................ 13

LIST OF FIGURES
Figure 1: Trading Across Borders South Africa vs. Zambia .......................................................... 6
Figure 2: Zambia vs. South Africa Rankings.................................................................................... 7

LIST OF TABLES

Table 1: Zambia Border Posts and operating times ....................................................................... 1


Table 2: Traffic Fines ........................................................................................................................... 3
Table 3: Road toll tariff structure ........................................................................................................ 4
Table 4: Operational Toll Collection Sites ........................................................................................ 4
Table 5: Zambia’s Trade with selected SADC countries................................................................ 6
Table 6: Contact Details .................................................................................................................... 13

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LIST OF ACRONYMS

C-BRTA Cross-Border Road Transport Agency

CRN Core Road Network

DRC Democratic Republic of the Congo

FY Financial Year

GDP Gross Domestic Product

OSBP One Stop Border Post

PFR Primary Feeder Roads

SADC Southern African Development Community

TAZARA Tanzania Zambia Railway Authority

TMD Trunk, Main and District roads

USA United States of America

WTO World Trade Organisation

ZDA Zambia Development Agency

ZRA Zambia Revenue Authority

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1. OVERVIEW
Zambia is a landlocked country in Southern Africa, neighbouring the Democratic Republic of
the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique to the
southeast, Zimbabwe and Botswana to the south, Namibia to the southwest and Angola to
the west. The spoken languages are English and several Bantu languages, with major
dialects being Bemba (ChiBemba) 33%, Nyanja (Cinyanja) 15%, Tonga (Chitonga) 11% and
Lozi 5.5%. The currency of Zambia is the Zambian Kwacha. Zambia is a low middle-income
country. The capital city is Lusaka, located in the south-central part of Zambia with an area
of 752,618 km².

The population of Zambia is 17,466,732, and the population density in is 24 per Km2 (61
people per mi2). Meanwhile, 41.1% of the population lives in urban areas (7,239,024 people
in 2018). Zambia is divided into 10 provinces, namely: Central, Copperbelt, Eastern,
Luapula, Lusaka, Northern, Muchinga, North-Western, Southern and Western. These
provinces are further divided into 72 total districts.

2. ROAD TRANSPORT SYSTEM


Zambia’s primary and secondary networks provide basic regional and national connectivity,
linking the provincial capitals to Lusaka, and Lusaka to the main international border
crossings. More than 80 percent of Zambia’s paved road networks are in good or fair
condition, and on par with its middle-income neighbours.

2.1 Border posts


Zambia has several border posts that link up the country with Botswana, Zimbabwe,
Mozambique, Namibia, Angola, DRC, Tanzania and Malawi.

The operating hours of the border posts are outlined in Table 1 below.

Table 1: Zambia Border Posts and operating times


Countries Border Post Operating Times
Angola - Zambia Jimbe 06:00 – 18:00
Caripande/Chavunna 07:00 – 18:00
Botswana - Zambia Kazungula Ferry 06:00 – 18:00
DRC - Zambia Kasumbalesa (OSBP) 24 hours
Malawi - Zambia Chipita/Mchinji Light vehicles: 24 hours
Commercial vehicles 06:00 –

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18:00
Mqocha / Mtyocha 06:00 – 18:00
Katumbi / Hewe 06:00 – 18:00
Chipita / Kanyala 06:00 – 18:00
Mozambique - Zambia Chanida/Cassacatiza 06:00 - 18:00
Luangwa/Zumbo 06:00 – 18:00
Chimefusa 07:00 - 17:00
Namibia - Zambia Wenela 06:00 – 18:00
Tanzania - Zambia Mbala 06:00 – 18:00
Tunduma/Nakonde (OSBP) 06:00 – 18:00
Zimbabwe - Zambia Chirundu (OSBP) 06:00 – 22:00
Siavonga/Kariba 06:00 – 18:00
Kazungula Ferry 06:00 – 18:00
Kazangula Road 06:00 – 18:00
Livingstone/Victoria Falls 06:00 – 18:00

The tariff for crossing the border posts on the Zambian side include:
 Road tax of $48 for Botswana-registered vehicles and vehicles registered in other
countries, such as South Africa, pay $20;
 Carbon tax and the amount depends on the engine capacity and must be in
Zambian Kwacha; and
 Third party insurance as well as Council tax.

3. ROAD TRANSPORT LEGISLATION


3.1 Speed Limits
The general speed limit on national highways is 100km/h, secondary roads 100km/h and in
urban built up areas is 65 km/h unless otherwise indicated.

3.2 Traffic Fines


Zambia’s traffic moves on the left side on the road and the minimum driving age is 18 years.
The minimum age for renting a car is between 23 years and 25 years. If below 25 years,
renting a car is accompanied by a payment for a young driver premium. It is mandatory to
use seat belts at all times while driving. Using cell phones while driving is prohibited; the
exception is cell phones with hands-free systems. The offenses and official road traffic fines
for Zambia are outlined in Table 2 below.

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Table 2: Traffic Fines
TRAFFIC VIOLATION AMOUNT (KWACHA)
Driving under the influence K6000 or 5 years
imprisonment
Refusing to give blood/breath sample K600 or 6 months
Limit 80mg per 100ml of blood imprisonment
Exceeding speed limit K300 up to K10 000
Defects in the car (hooter, tyre, worn out brakes) K300

Failure to obey traffic signs and signals 1st offence K300, 2nd offence
K900
Obstructing other road users/roadway 1st offence K300, 2nd offence
K900
Driving without license 1st offence K450, 2nd offence
K900
Reckless driving K4500 OR 5 years
imprisonment
Using a cell-phone K450
Unauthorised goods K300
Exceeding number of occupants K300
Failure to clear motor vehicle with customs K60 000 or 5 years
imprisonment
Failure to clear motor vehicle with Interpol K60 000 or 5 years
imprisonment
False Declaration to a customs division officer K60 000 or 5 years
imprisonment
Source: RTSA, Accessed electronically on 04/07/2018

3.3 Toll Plazas


The National Road Fund Agency (NRFA) is in the process of rolling out the National Road
Tolling Programme (NRTP) Phase II covering all vehicle classifications to all the 10
provinces to broaden the revenue base, particularly for road maintenance. Toll sites have
been identified based on traffic volumes and the economic viability of the roads. The toll tariff
structure for inland toll gates is shown below in Table 3.

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Table 3: Road toll tariff structure
Description Charge Method/ Trip ZMW
Small vehicles (including cars, vans and minibuses up to 15 Fixed 20.00
seats) (Single Access) GVM <3,500Kg
Minibuses (16-30 seats) Single Access) including light Fixed 40.00
Trucks with 3,500Kg <GVM>6,500Kg
Buses above 30 seats (Single Access)Light Trucks and with Fixed 50.00
2-3 Axles and GVM>6,500 Kg single access
Heavy vehicles with articulated semi-trailer -4 Axles Fixed 150.00
(Single Access)
Heavy trucks with articulated semitrailer –above 4 Axles Fixed 150.00
(Single Access)Heavy vehicles interlink –above 6 Axles
(Single Access)
Abnormal loads (Single Access) Fixed 500.00
Source: nrfa.org.zm; Accessed on 18/07/2018

Currently there are 20 toll collection sites, shown in Table 4 below.

Table 4: Operational Toll Collection Sites


Toll Station Name Port of Entry
Shimabala Chirundu
Katuba Kariba
Mumbwa Livingstone Falls Way
Manyumbi Kazungula
Kafulafuta Katima Mulilo
Kafue/Turnpike Kasumbalesa
Kazungula Weighbridge Nakonde
Kapiri Mposhi Weighbridge Mwami
Mwami Weighbridge Chanida
Livingstone Weighbridge
Mpika Weighbridge
Source: nrfa.org.zm, Accessed on 19/07/2018

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4. CROSS BORDER ROAD TRANSPORT PERMITS
The number of permits issued by the C-BRTA from South Africa to Zambia for freight
transport in the financial year 2017/18 is 12 616 which is a 3.3% decrease from 13 044 that
was issued in financial year 2016/17. Passenger transport permits issued for the same
comparative periods are 83 and 34 respectively. Currently there are no taxis transporting
passengers between South Africa and Zambia.

5. DEVELOPMENTS AND ECONOMIC OUTLOOK


The economic structure of Zambia consists of 5.45% primary sector, which comprises of
crop farming, livestock rearing and fisheries. The agricultural sector is a sizeable contributor
to the economy as it contributes to both growth and exports, even though it contributes the
least to GDP. Mining, construction and manufacturing together make up the majority of the
secondary sector at 35.5%. Growth in the manufacturing industry is largely driven by the
agro-processing of food and beverages as well as the textiles and leather subsectors.
Manufacturing absorbs much of the output from other sectors such as agriculture, and also
supplies inputs into the other secondary sectors.

The Zambia Development Agency (ZDA) provides various incentives for companies
investing in the mining sector in the country. Zambia is a large producer of copper and the
commodity is the country’s largest export product. The tertiary sector includes a large
wholesale and retail trade industry. Tourism is also growing and has a positive knock-on
effect on transport and accommodation providers.

Zambia attained macroeconomic stability for than a decade and achieved impressive real
growth averaging 6.7% per annum and lifting the country above the threshold of lower
middle income countries. However, growth slowed during the period 2015 to 2017, due to
falling copper prices, reduced power generation, and depreciation of the Kwacha. Zambia’s
lack of economic diversification and dependency on copper as its sole major export makes it
vulnerable to fluctuations in the world commodities market. This is exemplified by the
downward turn in prices for commodities in 2015 due to declining demand from China which
culminated in Zambia being overtaken by the Democratic Republic of Congo as Africa’s
largest copper producer.

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5.1 Zambia’s Trade with SADC
South Africa is leading in terms of both exports and imports followed by Namibia, Tanzania
and Mozambique as depicted in Table 5 below.

Table 5: Zambia’s Trade with selected SADC countries


Q1 2017 Q2 2017 Q3 2017 Q4 2017
Country Export Imports Export Import Exports Import Exports Imports
Angola 0.6 0 0.4 0.1 0.3 0.2 0.9 0
Botswana 3.4 2.2 4.9 4.6 6.6 4.8 12.2 6.3
Lesotho 1.3 0 0 0 0 0 0 0.1
Mozambique 5.5 21.1 4.7 104.3 2.6 11.8 4.8 42.8
Namibia 5.5 20.3 6.2 22 7.4 24.8 2.4 58.8
South Africa 77 594.4 88.8 590.3 166.7 630.2 121.1 641.4
Tanzania 20.6 0 19.3 45 27.4 59.7 21.8 46.2
113.9 638 124.3 766.3 211 731.5 163.2 795.6
Source: Bank of Zambia, Accessed on 21/05/2018

5.2 Trading across borders


Figure 1 below shows Zambia’s trading across borders rank compared to South Africa.

Figure 1: Trading Across Borders South Africa vs. Zambia

161
165
160
150
155 147
150 2017
145 139
2018
140
135
130
125
Zambia South Africa

Source: World Bank, Doing Business 2018, Accessed electronically on 13/06/2018

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The trading across borders rating is based on a set of specific predefined procedures. It is
based on the time and cost to import and export focusing on both border and documentary
compliance (excluding tariffs and the time and cost for sea transport).

6. EASE OF DOING BUSINESS


According to the World Bank, Zambia is ranked at 85th in 2018 which is an improvement
from the 2017 ranking for the ease of doing business out of a total of 190 economies. The
ease of doing business covers 10 themes and the ranking between Zambia and South Africa
is shown in Figure 2 below.

Figure 2: Zambia vs. South Africa Rankings

Starting a Business
200
Dealing with Construction
Resolving Insolvency
150 Permits

100
Enforcing Contracts Getting Electricity
50

Trading Across Borders Registering Property

South Africa
Paying Taxes Getting Credit

Protecting Minority Zambia


Investors

Source: World Bank, Doing Business 2018, Accessed electronically on 25/05/2018

When comparing Zambia with South Africa using the 10 themes, it shows that Zambia is
performing better than South Africa in four areas namely starting a business, dealing with
construction permits, getting credit and paying taxes.

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7. REQUIREMENTS FOR IMPORTATION AND EXPORTATION
7.1 Importation Procedure
In order to clear goods through Customs, an importer must present commercial documents
such as bill of lading, airway bill and commercial invoice. The Import Declaration Form is
used for statistical purposes, and no fee is required. For goods to be cleared at the border,
the importer fills the Zambia Revenue Authority (ZRA) Form CE 20, the standard form for
entry and exit. Zambia is using the Automated System for Customs Data and Management
(ASYCUDA). Customs clearance can be accomplished within hours, but incomplete forms
and other difficulties, (e.g. lack of supporting documents) can result in substantial delays.

Zambia applies tariffs on the Cost, Insurance and Freight (C.I.F.) basis. Customs tariffs are
calculated on the basis of the dutiable value, based on the World Trade Organisation (WTO)
Agreement on Customs Valuation. Most tariffs are ad valorem (method for charging a duty,
fee, or tax according to the value of goods and services, instead of by a fixed rate, or by
weight or quantity) but a few specific tariffs remain.. Zambia’s tariff schedule is structured
around four tiers: 0%, 5%, 15% and 25% rates of duty. Virtually all raw materials and most
industrial or productive machinery fall within the 0 and 5 percent tariff categories, while most
imported intermediate goods are subject to 15 percent, and imported final products are
subject to 25 percent duty. Zambia’s simple average import tariff is about 14 percent.

7.2 Exportation Procedure


Exporters must complete an export declaration form (standard customs authority form ZRA
CE 20, mainly for statistical purposes. An original commercial invoice and a packaging list
for shipment should accompany the form CE20. An airway bill or bill of lading for
transportation of exports should be obtained either from the freight forwarder or the
transporter being used. Zambia has no export taxes, charges and levies.

If there are preferences that are being claimed in the exporting market (e.g. reduced tariffs),
then an appropriate stamped certificate of origin, from the ZRA is required. Common Market
for Eastern and Southern Africa (COMESA), Southern African Development Community
(SADC), European Union (EU) and African Growth and Opportunity Act (AGOA) textiles
have different certificates of origin.

A very limited number of goods require a special export permit. Gemstone exports require a
permit from the Ministry of Mines, Energy and Water Development; timber requires a timber
verification certificate from the Forestry Department.

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8. OPPORTUNITIES
The following opportunities exist in Zambia for cross-border transport operators and the
trading community:
 Transport and Logistics: Opportunities exist with respect to transportation of
minerals from mines to various export destinations especial major ports in the region.
This also creates opportunities for both new and existing companies in the refight
logistics industry.
 Passenger Transport: Opportunities exist with respect to provision of bus
operations as the volume of passengers travelling by road exceed those carried by
other modes. This was also demonstrated by increase in permits issued. Passenger
transport operators also have opportunities with respect to tourism.
 Mining sector: Opportunities exist with respect to extraction and processing of
minerals , establishment of copper and other mining related industrial parks, copper
mining and beneficiation, especially in setting up copper smelting and refinery
facilities, providing mining support services (in particular, machinery) for the mining
sector and joint-ventures with existing small-scale operators or in green fields
investments in gemstone mining and processing (emeralds, amethyst, aquamarine,
tourmaline, garnets and beryl).
 Infrastructure sector: Opportunities exist with respect to transport Infrastructure,
airports and related support infrastructure, road transport infrastructure, railways
transport infrastructure and housing and estates infrastructure amongst others.
 Energy Infrastructure: Opportunities exist with respect to electricity generation and
transmission, refineries, storage facilities and pipelines for petroleum and gas and
renewable energy facilities.
 Agriculture sector: Opportunities exist with respect to livestock production,
development of textile production facilities, livestock breeding, agro processing and
fisheries.
 Tourism sector: Opportunities exist with respect to redevelopment of the existing
infrastructure facilities and international tourism services. Zambia is well connected
with the rest of the regional countries.
 Manufacturing sector: Opportunities exist with respect to minerals processing,
chemical products, engineering and metal works, packaging materials, food
processing and the textiles.

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9. CONTACT DETAILS OF RELEVANT AUTHORITIES
Should cross-border operators or any other part conducting trade between South Africa and
Zambia face challenges at border posts and or in the corridor, they should contact the
following key stakeholders for speedy resolution of challenges and assistance:

Table 6: Contact Details


Cross-border Road Transport Agency +27 (0) 12 471 2000
SARS Customs 0800 00 7277
South DHA +27 (0) 13 793 7311
Africa SAPS +27 (0) 12 393 1000
Agriculture +27 (0) 12 319 6000
SANRAL +27 (0) 12 844 8000
Chirundu Border Post +260 21 1383700
Zambia Development Agency +260 21 1220177
Road Development Agency +260 21 1253088
Zambia
Road Transport and Safety Agency +260 21 1230553
National Road Fund Agency +260 21 1253145/255660
Ministry of Tourism and Arts +260 21 1238772
Ministry of Transport and Communications +260 21 125144
Ministry of Commerce, Trade and Industry +260 21 1228301
Zambia Revenue Authority +260 211 380000/383232
Zambia Tourism Board +260 21 1229087/9

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