JAN 22, 2023

Zambia's MFEZ Policy:
Fostering Investment and Economic Growth


In recent years, Zambia has emerged as a promising investment destination, thanks in no small part to its forward-thinking policies aimed at attracting foreign investors. One such policy that has garnered attention is the Multi-Facility Economic Zone (MFEZ) policy. This initiative, implemented by the Zambian government, is designed to create conducive environments for businesses, stimulate economic growth, and enhance global competitiveness. In this blog post, we will delve into the MFEZ policy in Zambia and its impact on the country's investment landscape.

Understanding MFEZ:

The Multi-Facility Economic Zone (MFEZ) policy in Zambia is a strategic initiative aimed at promoting industrialization and economic diversification. These zones are geographical areas set aside for the establishment of businesses, with a focus on manufacturing, processing, and value addition. The MFEZ policy provides a range of incentives and support mechanisms to attract both domestic and foreign investors, creating a symbiotic relationship that benefits both parties.

Key Incentives of MFEZ:

Tax Incentives:

  • Reduced corporate income tax rates for qualifying businesses within MFEZ.
  • Exemptions on import duties for machinery, equipment, and raw materials.

Infrastructure Development:

  • The government invests in the development of infrastructure such as roads, electricity, and water supply in MFEZ areas, reducing the burden on businesses.

Streamlined Regulatory Processes:

  • Simplified and expedited bureaucratic processes for businesses operating within MFEZ, facilitating a smoother and more efficient operation.

Access to Markets:

  • Proximity to key transportation hubs and markets, making it easier for businesses to distribute their products locally and internationally.

Foreign Investment Impact:

The MFEZ policy has attracted significant foreign investment, leading to the establishment of a diverse range of industries in Zambia. Foreign companies see the potential for growth and profit in a country that actively supports and incentivizes their operations. This influx of investment has not only created job opportunities for the local population but has also contributed to skills transfer and technology exchange.

Case Studies:

Several success stories have emerged as a result of the MFEZ policy. For example, the establishment of manufacturing plants for agro-processing, textiles, and electronics has not only boosted Zambia's export capabilities but has also stimulated the growth of related industries.

Challenges and Future Prospects:

While the MFEZ policy has been largely successful, challenges such as infrastructure gaps in some regions and bureaucratic hurdles still exist. The government continues to work towards addressing these issues to ensure sustained growth and attractiveness for investors.

Looking ahead, the MFEZ policy remains a crucial component of Zambia's economic development strategy. As the global economic landscape evolves, the country's commitment to creating an environment conducive to investment positions Zambia as a competitive player in the African and international markets.


Zambia's Multi-Facility Economic Zone policy stands as a testament to the country's dedication to fostering economic growth and attracting foreign investment. By offering a range of incentives and support mechanisms, the government has successfully created an environment where businesses can thrive. As Zambia continues to implement and refine the MFEZ policy, the nation is poised for sustained economic development, job creation, and increased global competitiveness.

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