Zambia’s 42 million hectares of arable land, dependable rainfall, and central-Southern-African location make it an agricultural goldmine. Yet the big question for overseas investors remains: can a foreigner legally run a commercial farm in Zambia? The short answer is yes—provided you structure the deal correctly. This guide breaks down the rules, routes, and revenue models so that foreign investors can move from curiosity to cultivation with confidence
1. The Legal Landscape for Foreign Land Access
- Ownership vs. leasehold. All land is held in trust by the President. Non-Zambians cannot hold freehold title, but the Lands Act 1995 allows 99-year renewable leaseholds—long enough to amortise heavy farm investments. (stratusltd.org, zambialii.org)
- Who qualifies? A foreigner may lease land if they are:
- An “approved investor” under the Investment Act (handled by the Zambia Development Agency, ZDA);
- A permanent resident; or
- A shareholder (≤ 25 % foreign equity) in a locally registered company. (zda.org.zm)
- An “approved investor” under the Investment Act (handled by the Zambia Development Agency, ZDA);
Key takeaway: Think “control” rather than “ownership.” A 99-year lease gives the security lenders and partners expect.
2. Practical Routes to Secure Farmland
2.1 Through the Zambia Development Agency (ZDA)
The ZDA is a one-stop shop that fast-tracks lease paperwork, immigration permits, and secondary licences and also offers 10 % company tax on farm profits plus zero dividend tax for the first five years. (zda.org.zm)
2.2 Farm Block Development Programme
Government-planned farm blocks reserve up to 100 000 ha per province for commercial agriculture. Core-venture plots (up to 10 000 ha) are ideal for foreign agribusinesses willing to anchor and off-take produce from surrounding smallholders. (afdb.africa-newsroom.com)
2.3 Private Deals on Leasehold Land
Investors regularly acquire existing estates (e.g., Mkushi or Mpongwe) from current lessees. Due diligence on water rights, community consent, and any encumbrances is essential before assignment of the lease.
Tip: Build goodwill early. Chiefs and community members value honest engagement and jobs as much as headline numbers.
3. Joint-Venture Structures That Work
| Model | How it works | When to use |
| Equity JV | Foreign investor provides capital, Zambian partner contributes land lease or local knowledge; profit split reflects equity. | Large estates needing irrigation and machinery finance. |
| Contract JV | Separate companies sign a management or offtake contract; no new entity required. | Short-to-medium projects such as specialty crops or seed multiplication. |
| Public–Private Partnership | Partner directly with a parastatal or ministry to develop a farm block. | Export-oriented mega-projects with strong infrastructure demands. |
A 2024 deal where US-based Sadot LLC bought a 70 % stake in Cropit Farming’s lease illustrates the equity JV route’s flexibility: land control stays local while foreign capital scales production. (zda.org.zm)
4. Proven Profit Models
4.1 Direct Commercial Farming
Grow cash-flow crops—soya, wheat, maize, seed crops—using pivot irrigation and precision tech. Estates such as Mkushi (2 980 ha under irrigation) regularly hit 8–10 t/ha wheat yields.
4.2 Outgrower Schemes
Link 200–5 000 smallholders via input credit, extension support, and a guaranteed offtake price. The centrally controlled land model used by KASCOL has lifted household incomes by up to 50 %. (afdb.africa-newsroom.com)
4.3 Value-Addition & Processing
Processing plants (e.g., 260 Brands’ plant-based milk line) capture higher margins and qualify for extra tax breaks on manufacturing equipment.
5. Incentives & Finance
- Tax perks: 100 % farm-works and improvement allowances; VAT zero-rating on most agricultural inputs; 10 % corporate tax on primary farming income. (zda.org.zm)
- Credit lines: The European Investment Bank and local banks such as Zanaco offer blended-finance agribusiness loans from 7 % p.a. with grace periods up to three years. (investmentpolicy.unctad.org)
- Grants & guarantees: Development partners back risk-sharing mechanisms for sustainable, climate-smart projects.
6. Operational Realities
| Challenge | Mitigation |
| Land-tenure disputes | Conduct full social and environmental impact assessments; sign benefit-sharing MOUs with chiefs. |
| Rural infrastructure gaps | Budget for on-farm roads, power lines, and storage; negotiate duty-free status on imported equipment. |
| Skills shortages | Pair expatriate managers with Zambian graduates; invest in extension training for outgrowers. |
7. A Seven-Step Launch Roadmap
- Feasibility study (soil tests, water, market).
- Engage ZDA for investment licence and land shortlist.
- Negotiate lease with Ministry of Lands or existing lessee.
- Structure JV and incorporate a Zambian company.
- Secure finance and import capital equipment.
- Implement ESG plan with community and environmental safeguards.
- Scale & diversify into processing once core production stabilises.
Conclusion
Foreigners can run profitable farming estates in Zambia—without owning land outright. The key is to marry a long-term lease or joint venture with robust community relations, smart profit models, and the generous incentives already on the statute books. With careful planning and the right local partners, your next bumper harvest could be 99 years—and several revenue streams—long.
