Are you considering expanding your business operations into Zambia? Here is a comprehensive guide to the country’s thriving Multi-Facility Economic Zones (MFEZs). These specially designated areas offer many opportunities for savvy investors looking to establish or expand their businesses in a dynamic and rapidly evolving market.
Zambia, a landlocked nation in southern Africa, has been steadily transforming its economy in recent years, transitioning from a reliance on copper exports to a more diversified industrial base. At the forefront of this transformation are the country’s MFEZs, which have been instrumental in attracting foreign direct investment (FDI) and driving sustainable economic growth.
According to the latest data from the Zambia Development Agency (ZDA), the country has attracted over $8 billion in FDI since its MFEZ program in 2005. This influx of capital has led to the creation of over 50,000 new jobs, underscoring the profound impact these economic zones have had on the Zambian economy.
Here is the list of the major MFEZs that have been established in Zambia as an increasingly attractive investment destination.
Lusaka South Multi-Facility Economic Zone (LS-MFEZ)
Established in 2010, the Lusaka South MFEZ is Zambia’s flagship economic zone, situated just 15 kilometres from the capital city of Lusaka. This 2,100-hectare industrial hub has become a magnet for both domestic and foreign investors, boasting a diverse range of industries, from manufacturing and agro-processing to logistics and ICT.
One of the standout features of the LS-MFEZ is its world-class infrastructure, which includes a dedicated power substation, a modern water treatment plant, and a state-of-the-art road network.
This has enabled the zone to attract major multinational companies, such as Lafarge Holcim, Zambeef, and NFC Africa Mining, all of which have established operations within its boundaries.
According to the ZDA, the LS-MFEZ has attracted over $1 billion in investment since its inception, resulting in the creation of more than 15,000 jobs. The zone’s strategic location, coupled with its business-friendly policies and incentives, has made it a prime destination for investors seeking to capitalize on Zambia’s growing consumer market and regional trade opportunities.
Chambishi Multi-Facility Economic Zone (CMFEZ)
Situated in the heart of the Copperbelt province, the Chambishi MFEZ is Zambia’s second-largest economic zone and a hub for the country’s burgeoning mining and mineral-processing industries. Established in 2003, the CMFEZ has become a magnet for foreign investors, particularly from China, who have poured billions of dollars into the development of the zone.
One of the key drivers of investment in the CMFEZ is the zone’s proximity to the Chambishi copper mine, one of the largest copper deposits in the world. This has attracted a host of mining and mineral-processing companies, including CNMC Luanshya Copper Mines, Sino Metals Leach Zambia, and Chambishi Metals, all of which have set up operations within the economic zone.
In addition to its mining-focused industries, the CMFEZ has also diversified into other sectors, such as manufacturing and logistics.
The zone’s excellent infrastructure, including a dedicated power substation and a well-developed road network, has been instrumental in attracting a wide range of investors.
According to the ZDA, the CMFEZ has attracted over $3 billion in investment, leading to the creation of more than 20,000 jobs. As Zambia continues to position itself as a regional hub for mining and mineral processing, the CMFEZ is poised to play an increasingly important role in the country’s economic transformation.
Lumwana Multi-Facility Economic Zone (LMFEZ)
Nestled in the north-western region of Zambia, the Lumwana MFEZ is a relatively new economic zone, established in 2015. The LMFEZ has quickly gained traction as a hub for mining-related industries, capitalizing on the region’s rich mineral resources and strategic location near the Lumwana copper mine.
One of the key strengths of the LMFEZ is its focus on value-addition and downstream processing. The zone has attracted many companies that specialize in copper smelting, refining, and fabrication, as well as the production of related products, such as copper wire and cables.
In addition to its mining-focused industries, the LMFEZ has also diversified into other sectors, including agro-processing and light manufacturing. The zone’s proximity to the Angolan and Democratic Republic of the Congo (DRC) borders has also made it an attractive hub for regional trade and logistics.
According to the ZDA, the LMFEZ has attracted over $500 million in investment, leading to the creation of more than 5,000 jobs. As Zambia continues to prioritize the diversification of its economy, the LMFEZ is poised to play a critical role in the country’s industrial development.
Kasumbalesa Multi-Facility Economic Zone (KMFEZ)
The Kasumbalesa MFEZ is a strategic economic zone located along the Zambia-DRC border, capitalizing on the region’s vibrant cross-border trade and logistics activities. Established in 2015, the KMFEZ has quickly become a hub for companies involved in freight forwarding, customs clearing, and the provision of other trade-related services.
One of the key advantages of the KMFEZ is its location at the heart of a major regional trade corridor, connecting Zambia to the DRC, as well as the broader southern and central African markets.
This strategic positioning has attracted a significant number of logistics companies, freight forwarders, and customs clearing agents, all of whom are seeking to capitalize on the zone’s efficient infrastructure and streamlined administrative processes.
The KMFEZ has also attracted investments in other sectors, such as light manufacturing and agro-processing. The zone’s proximity to the DRC market, as well as its access to a vast network of regional trade agreements, have made it an attractive destination for investors seeking to serve the growing consumer markets of central Africa.
According to the ZDA, the KMFEZ has attracted over $200 million in investment, leading to the creation of more than 3,000 jobs. As Zambia continues to position itself as a regional logistics and trade hub, the KMFEZ is poised to play an increasingly important role in the country’s economic development.
Mwanawasa Industrial Park (MIP)
The Mwanawasa Industrial Park, located in the Copperbelt province, is a relatively new addition to Zambia’s MFEZ landscape, having been established in 2018. Despite its young age, the MIP has already begun to attract significant investment, particularly in the manufacturing and agro-processing sectors.
One of the key strengths of the MIP is its focus on value-addition and the creation of high-quality, export-oriented products. The zone has attracted a number of companies that specialize in the processing and packaging of agricultural commodities, such as soya beans, maize, and cotton, as well as the manufacture of finished consumer goods, like textiles and household appliances.
The MIP’s strategic location, close to major transportation infrastructure and regional markets, has been a major draw for investors. The zone’s excellent road and rail connections, as well as its proximity to the Copperbelt region’s abundant natural resources, have made it an attractive destination for companies seeking to serve both the domestic and regional markets.
According to the ZDA, the MIP has attracted over $150 million in investment, leading to the creation of more than 2,000 jobs. As Zambia continues to prioritize the development of its manufacturing and agro-processing industries, the Mwanawasa Industrial Park is poised to play a crucial role in the country’s economic transformation.
Copperbelt Province Special Economic Zone (CPSEZ)
The Copperbelt Province Special Economic Zone (CPSEZ) is the newest addition to Zambia’s MFEZ landscape, having been established in 2020. This economic zone is a strategic initiative aimed at diversifying the economic activities within the Copperbelt province, which has traditionally been dominated by the mining industry.
The CPSEZ is focused on attracting investment in a wide range of sectors, including manufacturing, logistics, agro-processing, and renewable energy. The zone’s proximity to the Copperbelt’s existing infrastructure, as well as its access to a skilled workforce, have been key factors in attracting investors.
One of the standout features of the CPSEZ is its emphasis on sustainable and environmentally friendly development. The zone has implemented a range of policies and incentives to promote green technologies and practices among investors. This includes offering tax incentives for companies that incorporate renewable energy and energy-efficient solutions into their operations.
Additionally, the CPSEZ has set aside land for the development of a renewable energy park, which aims to attract investment in solar, wind, and other clean energy projects. This aligns with Zambia’s broader goal of transitioning to a greener economy and reducing its reliance on fossil fuels.
The CPSEZ is also designed to foster collaboration and knowledge-sharing between investors and local communities. The zone includes provisions for skills development and technology transfer programs, which are intended to upskill the local workforce and promote the adoption of best practices.
Conclusion
For further assistance on investing in Zambia and setting up your business in one of these Multi-Facility Economic Zones, feel free to contact us at M&J Zambia. Our team is always ready to help you navigate the process and ensure a smooth experience. In any economic zone you what to set up in, we’ve got you covered!
