Zambia Development Agency Act, 2006

This section gives the Act its short title and says it starts on a date the Minister appoints by statutory instrument.

This provision is titled “Interpretation” in Part II of the Zambia Development Agency.

This section sets rules for the Agency seal, Board meetings, allowances, and disclosure of interests, including a penalty for failing to disclose a conflict.

A person must not disclose protected information without the Board’s written consent.

Members, staff, agents, or representatives of the Agency are protected from legal actions for acts or omissions done in good faith while exercising, or purporting to exercise, the Agency’s functions.

This section is titled “Establishment of Zambia Development Agency.”

Section heading only: Tenure of office and vacation of office.

This section concerns delegation of functions and directions.

Section heading for the Director-General and other staff.

The Zambia Development Establishment Agency is established as a body corporate, can sue and be sued, and its functions and powers are exercised by the Board unless the Act says otherwise.

The Agency’s functions include promoting economic development, advising the Minister, and administering investment and multi-facility economic zone matters.

A Board member must be paid allowances set by the Board with the Minister’s approval.

The Board may create committees, delegate Agency functions to them, appoint committee members, and committees may set their own procedure subject to the Board’s directions.

The Board may delegate Agency functions in writing, and the Minister may give the Board directions that are not inconsistent with the Act; the Agency must follow those directions.

The Board must appoint a Director-General, who serves as the Agency’s chief executive officer.

This provision is titled “Economic development measures” and mentions research and articulating country position.

This provision is labeled “Sector codes” and appears in Part IV on investment promotion and guarantees.

Copies of this Act may be obtained from the Government Printer.

This section is about promoting and developing micro and small business enterprises.

Section 25 is a heading for the application of the Trade Licensing Act in Part VI on Privatisation and Commercialisation.

The Board must promote private investment.

The Minister may declare an area, premises, or building to be a multi-facility economic zone if the Board recommends it, the finance minister is consulted, and Cabinet approves.

An investor’s property cannot be compulsorily acquired except for public purposes under an Act of Parliament. If compensation is payable, it must be prompt, at market value, and transferable in the original investment currency.

A foreign investor may transfer certain funds out of Zambia in foreign currency after paying the relevant taxes.

Disputes arising from an investment under this Act must be settled under the Arbitration Act.

Section 26 is titled “Privatisation of State owned enterprises.”

Section 29 is titled “Obligations of holding companies and shareholders.”

This section is titled “Obligations of State owned enterprises.”

Section title: Sales of shares to a member, employee, or consultant.

Section title: Purchase of shares by citizens of Zambia.

Section heading on conversion of private companies to public companies.

This section is about the commercialisation of specified Government departments.

Section heading for claims in state-owned enterprises.

A state-owned enterprise must be privatised according to a divestiture sequence plan.

The finance minister may, after consulting the Cabinet, keep a share in a privatised state-owned enterprise and turn it into a golden share.

The Board must allot the shares of a state-owned enterprise in accordance with the Companies Act.

Shareholders, the director, and management of a State Obligations owned enterprise must provide information to the holding Agency when the Board requests it.

A scheduled state-owned enterprise must prepare for privatisation, keep records current, avoid dissipating assets, and obey Board requests; breaches can lead to fines or imprisonment.

A State owned enterprise must be valued by an independent valuer, who must also issue a certificate of valuation.

Shares or assets in a state owned enterprise must be sold to a citizen of Zambia or to a person who is not a citizen of Zambia.

Certain Agency members, committee members, employees, consultants, and their listed relatives or business partners must not buy shares or assets in a State owned enterprise unless the sale is by public offer.

A political leader or public officer must publicly disclose any intention to bid for shares or assets in a State owned enterprise, or to take part in any other privatisation.

A potential investor must disclose its bid and any direct or indirect personal interest in a state-owned enterprise.

An established fund may buy shares or assets in a state-owned enterprise if the contributors consent.

For citizens of Zambia, some share or asset purchase options are allowed on special terms, including instalment payments and participation in certain acquisitions.

Shares or assets of a State owned enterprise must not be sold on credit, subject to section thirty-eight or any other written law.

The Board must appoint an independent negotiating team for each sale, and appointed team members must meet qualification, secrecy, and conflict-disclosure requirements.

The Board may recommend that certain state-owned enterprises be converted into public companies.

A bank or financial institution may carry on the business of a stockbroker or dealer in stocks and shares for purposes of this Act, despite any other written law.

The Board may recommend that a State owned enterprise be liquidated in accordance with the Companies Act.

The Minister responsible for finance must sign the final Sales Agreement for the transfer of shares or assets to the selected bidder.

The Minister may declare a Government department commercialised by Gazette notice, and a commercialised department must be incorporated under the Companies Act.

The Board must publish specified privatisation or commercialisation information by notice in the Gazette.

People with an interest in a state-owned enterprise scheduled for privatisation or commercialisation must make a claim to the Agency within 30 days after the notice is published.

This section is titled “Establishment of Trade and Industrial Development Fund.”

This section creates the Trade and Industrial Development Fund and requires the Board to use it to support specified businesses and promote trade and investment.

The Board manages the Development Fund and must set criteria for applying for and paying out money from it.

The Development Fund must be audited every year by auditors appointed by the Board, with the Auditor-General’s approval.

The Board must prepare an annual audited statement of income and expenditure for the Development Fund and submit it to the Minister. The Minister must lay it before the National Assembly within the stated time limit.

The Board must open a Privatisation Trust Account, and the Agency must hold shares in trust for citizens of Zambia for later divestiture after a state-owned enterprise is privatised.

Net proceeds from completed sales of shares and assets must be paid into a Privitisation Trust Account. The Board may use those proceeds only with prior approval from the Minister and the Minister responsible for finance.

This section is titled “Incentives for machinery or equipment.”

Major investment incentives are not available without a licence, permit, or certificate.

This section is about certifying an investment for tax or duty relief or exemption.

Section 63 is titled “Licensing of bonded warehouse.”

Section 67 is titled “Registration and licensing” and refers to licences, permits, and certificates of registration.

Section 68 is titled "Application for and grant of licence, permit or certificate of registration."

This section concerns what must be considered before approving an application for a licence, permit, or certificate of registration.

This section is titled “Contents of licence, permit or certificate of registration.”

This section concerns the period of validity of a licence, permit, or certificate of registration.

This section concerns renewal of a licence, permit, or certificate of registration.

This provision is titled “Register of licences, permits and certificates of Registration.”

The investor must notify the Agency if the investment is not implemented.

Section 75 concerns transfer of licences, permits, or certificates of registration.

Section 77 is titled “Suspension or revocation of licence, permit or certificate of registration.”

This section defines key terms used in the Act.

The Agency must consult the private sector and business community and recommend trade and industry development strategies to the Minister.

The Agency must promote trade and business development, establish a trade-information database, and share market and trade-agreement information; the Board must disseminate market information in consultation with the business community.

The Agency must recommend policy and institutional reforms to State institutions to support equitable access to economic and productive resources for both genders and all business enterprises.

The Board must, under the minister’s direction, do market research and take part in regional and international conferences and meetings.

The Agency must promote sector codes and publish a code in the Gazette for general information when the Board is satisfied about the code.

The Board must promote and support the development of micro and small business enterprises.

The Board may let out buildings or premises for use by micro or small business enterprises as an industrial or commercial estate.

The Trade Licensing Act does not apply to a micro or small business enterprise that is registered under this Act.

The Minister responsible for finance must make regulations about incentives under this Act, after consulting the Minister.

An incentive under this Part is valid for five years from the grant of the licence, permit, or certificate, unless the Minister responsible for finance prescribes a different period.

An investor who puts in at least USD 500,000 (or equivalent in convertible currency) in a priority sector or product is entitled to incentives under the Income Tax Act or Customs and Excise Act.

Machinery or equipment acquired by certain priority-sector or rural enterprises is exempt from customs duties.

The Minister responsible for finance may specify extra investment incentives for certain projects in identified sectors or products.

An investor can get the incentives only if the investor holds a licence, permit, or certificate of registration under the Act.

An investor’s tax or duty relief under this Part is to be granted by the Commissioner-General after the Board certifies full compliance with the Act and any prescribed condition.

If a double taxation agreement exists, an investor’s foreign tax payable to the other country for foreign income is determined by that agreement.

An investor may apply to the Commissioner-General to be appointed and licensed to establish and operate a bonded factory.

The Commissioner-General must, after consulting the Licensing of the Agency, licence a bonded warehouse under section 55 of the Customs and Excise Act.

The Board must help an investor find suitable land and apply for it, and the land authority must allocate qualifying land after payment of prescribed fees. The registration officer must make the register entry and issue a certificate of title.

Qualifying investors may get a self-employment or resident permit, and the Board must help them obtain work permits for up to five expatriate employees.

The Board must help an investor obtain water, electric power, transport, and communication services and facilities needed for the investment.

The Board must help an investor get any licence, permit, registration certificate, or other authorisation needed to start or run a business enterprise.

Certain persons must apply to the Board, pay the prescribed fee, and provide required documents and information before they can get the relevant licence, permit, or registration certificate.

When deciding on a licence, permit, or certificate of registration, the Board must consider the listed investment factors.

Licences, permits, and certificates of registration must include specified applicant and investment details, the Board may add prescribed conditions, and investors must promptly report material changes to the Agency.

A licence, permit, or certificate of registration is valid for 10 years from issue, and the investor must implement the proposed investment during that period.

An investor may apply to renew a licence, permit, or certificate of registration before it expires, but the application must follow prescribed rules and include the prescribed fee.

The Board must keep a register of investors and related licence details, and the register must be open to public inspection at the Agency’s offices for a prescribed fee.

If an investor cannot implement an investment covered by a licence, permit, or certificate of registration, the investor must notify the Agency and explain why within 30 days of becoming aware of the non-implementation.

An investor may not transfer a licence, permit, or certificate of registration to another person without prior Board approval.

Investors must keep specified business records, provide information when requested by the Board, and let an authorised officer inspect and take extracts from those records.

The Board may suspend or revoke an investor’s licence, permit, or certificate of registration for specified misconduct, but must give notice and a chance to show cause first.

A person must not knowingly make a false statement in a material particular when applying for a licence, permit, certificate of registration, or related record under the Act.

A State institution must consult the Agency before exercising a power under a law relating to trade and industry, or a law affecting trade and industry.

The President must consult the Agency before using certain powers under the Control of Goods Act or related trade-and-industry laws. The Minister must, on the Agency’s advice, advise or recommend action to the President on matters under that Act involving those powers.

The Minister may make regulations for this Act, after consulting the Agency, and may later amend the Act’s Schedules by statutory instrument.

This section repeals four listed Acts, and the Privatisation Act will also be repealed once the stated condition and appointment date are met.

The Fourth Schedule on savings and transitional provisions applies to an appropriate authority and the Agency.

The text lists military-related items, including ammunition, explosives, military vehicles and equipment, aircraft, and other military hardware.

This section refers to an industry manufacturing poisons, narcotics, dangerous drugs, and toxic, hazardous, and carcinogenic materials.

This provision lists industries covered by the schedule, including currency and coin production, security documents, agriculture, food processing, beverages, textiles, engineering products, fertilizer, cement, timber, leather, mini-hydro power stations, and education and skills training.

The Agency’s funds come from appropriations, fees, charges, grants, donations, and other accruals. The Agency may accept grants or donations, borrow money, charge fees, and the Board may invest unused funds, but some actions need ministerial approval.

The Agency’s financial year is twelve months long and ends on 31 December each year.

The Board must keep proper accounting records, ensure the Agency’s accounts are audited every year by independent auditors approved by the Auditor-General, and the Agency must pay the auditor’s fees.

The Board must send a yearly activities report to the Minister within 90 days after the financial year ends, and the Minister must table it in the National Assembly within 7 days after the first sitting following receipt.

An appropriate authority under a repealed Act may act only to wind up its affairs and handle pending matters, and it has power to do what is necessary for that purpose.

Assets, rights, liabilities, and obligations of an appropriate authority transfer to the Agency by operation of this Act on or after the appointed date.

The Agency must apply in writing to register a transferred asset/right/liability/obligation, and the registration authority must update the register and may issue title documents where applicable. No registration fees, stamp duty, or other duties are payable for the transaction.

The Agency and others get the same rights and remedies for vested rights, and existing rights continue; some affected businesses must get new registration within one year.

This provision refers to the staff of the Privatisation Engagement of employees of the Privatization Agency on the commencement of the Act, but the text is incomplete.

The provision directs transfers of specified monies: on the appointed date, money from the Privatisation Revenue Account must be moved to the Privatisation Trust Account, and on commencement of the Act, money in the Micro and Small Enterprises Development Fund and the Privatisation Revenue Account must be transferred to the Development Fund.