Zambia attracts $58 million investment in digital infrastructure through tax reforms

Zambia has successfully secured an investment of $58 million dedicated to enhancing its digital infrastructure, primarily as a direct result of the government’s strategic decision to eliminate taxes on the importation of digital equipment, a policy initiative initiated in 2021.

This significant investment underpins the nation’s efforts to establish comprehensive connectivity with its eight neighbouring countries through advanced fibre optic technology.

The Minister of Technology and Science, Felix Mutati, emphasised that the removal of the tax burden on digital equipment imports has substantially attracted investment from the private sector. During a Ministerial Panel discussion at the 2024 Digital Government Africa Summit, currently taking place in Chongwe District, Mr. Mutati remarked that previous tax obligations had deterred potential investors, thereby impeding their willingness to commit financial resources into the country. He stated, “Tax on digital equipment was scaring investors and forcing them to hold their investment.”

Minister Mutati also highlighted that the government recognised the necessity for tax incentives to foster a conducive environment for foreign investment. He also noted the government’s commitment to advancing incentives, innovation, and investment, with the objective of bolstering private sector participation within the Zambian economy.

The panel at the summit further included notable figures such as Leocadie Ndacayisaba, Minister of Communications, ICT and Technology from Burundi; Mohammed Ali, Somalia’s Minister of Communications and Technology; Mondli Gungubele, Deputy Minister of Communications and Digital Technologies from South Africa; and Dauda Lawal, the Executive Governor of Zamfara State in Nigeria, thereby showcasing a collective regional focus on digital transformation.