ZAMBIA Law and Practice Contributed by: Harriet Mdala, Natasha Lungu, Samuel Muleya and Chanda Musonda-Chiluba, MAY and Company
Multilateral Treaties The African Growth and Opportunity Act (AGOA) While the AGOA primarily focuses on enhanc - ing trade between eligible African countries and the USA, it includes provisions that protect and promote foreign investments. These protections indirectly encourage US investments in Zambia’s mining sector. SADC As a member of the SADC, Zambia adheres to protocols on trade and investment, including the SADC Protocol on Finance and Investment. This Protocol aims to promote sustainable invest - ment flows and ensure that investors are treated equitably, which applies to mining ventures and large-scale exploration projects. COMESA The COMESA fosters regional economic integra - tion and provides a framework for investment protection similar to the SADC. The COMESA Common Investment Area Agree - ment includes provisions that protect cross-bor - der investments in member states, encouraging international mining companies to operate in Zambia. 5.4 Sources of Finance for Exploration, Development and Mining The mining industry in Zambia relies on diverse financing mechanisms to support exploration, development, and operational activities. These include the following. Equity Financing Private equity funds play a significant role in financing mining projects, especially in their early stages.
• citizen-owned companies: at least 75.1% equity owned by Zambian citizens. Artisanal Mining Only citizens or co-operatives wholly composed of Zambian citizens are permitted to undertake artisanal mining operations. Small-Scale Mining Small-scale mining is restricted to citizen- owned, citizen-influenced, or citizen-empow - ered companies. 5.3 International Treaties Related to Exploration and Mining Zambia is a signatory to various bilateral and multilateral treaties that promote and protect investments. Bilateral Investment Treaties (BITs) BITs are regulated by the Trade and Business Development Act. Zambia has entered into BITs with several countries to protect and encourage foreign investments. These treaties aim to create favourable conditions for investors by providing guarantees and protections against risks such as expropriation, unfair treatment, and restric - tions on the transfer of profits. Zambia has signed BITs with the UAE, Türkiye, Morocco, Mauritius, the UK, Finland, Italy, the Netherlands, France, Belgium, Ghana, Egypt, Cuba, China, Switzerland and Germany. Of the 16 BITs, only those with the UAE, Mauri - tius, France, Germany, Switzerland, China, Tür - kiye, the Netherlands and Italy are currently in effect.
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