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The Zambia Development Agencies Bill

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THE ZAMBIA DEVELOPMENT AGENCY BILL, 2006
M
EMORANDUM
The objectives of this Bill are to —
(a) foster economic growth and development by promoting
trade and investment in Zambia through an efficient,
effective and coordinated private sector led economic
development strategy;
(b) establish the Zambia Development Agency as a one stop
facility which will ensure, among other matters, client
focus, dialogue with the private sector and create
confidence in public sector support for business;
( c) provide for the functions and powers of the Agency;
(d) attract and facilitate inward and after care investment;
(e) provide and facilitate support to micro and small business
enterprises;
(f) promote exports and internationalism;
(g) streamline bureaucratic procedures and requirements faced
by investors;
(h) facilitate industrial infrastructure development and local
services;
(i) promote greenfield investments through joint ventures and
partnerships between local and foreign investors;
(j) promote and encourage education and skills training so as
to increase productivity in business enterprises;
(k) encourage measures to increase Zambia’s capacity to trade
and enable business to participate in a competitive global
environment;
(l) ensure that the private sector takes advantage of and benefits
from international and regional trade agreements; and
(m) provide for matters connected with and incidental to the
foregoing.
G. K
UNDA , SC,
Attorney-General
N. A.B. 5, 2006
24th January, 2006

THE ZAMBIA DEVELOPMENT AGENCY ACT
A
RRANGEMENTS OF SECTIONS
PA RT I
P
RELIMINARY
Section
1. Short title and commencement
2. Application
3. Interpretation
PA RT I I
T
HE Z AMBIA D EVELOPMENT AGENCY
4. Establishment of Zambia Development Agency
5. Functions of Agency
6. Board of Agency
7. Tenure of office and vacation of office
8. Allowances
9. Committees of Agency
10. Delegation of functions and directions
11. Director-General and other staff
PART III
T
RADE AND INDUSTRIES D EVELOPMENT
12. Trade and industry development strategies
13. Trade and business development measures
14. Economic development measures
15. Research and articulating country position
16. Sector codes
PART IV
I
NVESTMENT PROMOTION AND G UARANTEES
17. Investment promotion measures
18. Declaration of multi-facility economic zones
19. Protection from acquisition
20. Transfer of funds
21. Settlement of disputes
Zambia Development Agency [No. 11 of 2006 69
Copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, Lusaka 10101. Price K11,500 each.

PA RT V
M
ICRO AND SMALL BUSINESS ENTERPRISES
22. Promotion and development of micro and small business
enterprises
23. Industrial or commercial estates
24. Letting of buildings or premises
25. Application of Trade Licensing Act
PA RT V I
P
RIVATISATION AND COMMERCIALISATION
26. Privatisation of State owned enterprises
27. Golden share
28. Allotment of shares
29. Obligations of holding companies and shareholders
30. Obligations of State owned enterprises
31. Modes of privatization
32. Valuation of State owned enterprise
33. Eligible buyer
34. Sales of shares to member, employee or consultant
35. Political leaders
36. Declaration by potential investor
37. Established funds
38. Purchase of shares by citizens of Zambia
39. Mode of payment of shares
40. Negotiations for offer of sale
41. Conversion of private companies to public companies
42. Trading in shares
43. Liquidation
44. Consummation of sale
45. Commercialisation of specified Government departments
46. Publication of information
47. Claims in State owned enterprises
70 No. 11 of 2006]The Zambia Development Agency

PART VII
T
RADE AND INDUSTRIAL D EVELOPMENT FUND AND PRIVATISATION
TRUST
ACCOUNT
48. Establishment of Trade and Industrial Development Fund
49. Management of Development Fund
50. Auditing of Development Fund
51. Statement of income and expenditure
52. Privatisation Trust Account
53. Use of proceeds
PART VIII
I
NCENTIVES
54. Regulations on incentives
55. Validity period for incentives
56. Qualification for incentives
57. Incentives for machinery or equipment
58. Major Investment
59. No incentives without licence, permit or certificate
60. Certification of investment for tax or duty relief or exemption
61. Double taxation agreements
62. Bonded factory
63. Licensing of bonded warehouse
PA RT I X
S
ERVICES
64. Land
65. Immigration
66. Services and facilities
67. Registration and licensing
PA RT X
L
ICENCES , P ERMITS AND C ERTIFICATES OF REGISTRATION
68. Application for and grant of licence, permit or certificate of
registration
Zambia Development Agency [No. 11 of 2006 71

69. Consideration before approving application for licence, permit
or certificate of registration
70. Contents of licence, permit or certificate of registration
71. Period of validity of licence, permit and certificate of
Registration
72. Renewal of licence, permit or certificate of registration
73. Register of licences, permits and certificates of Registration
74. Investor to notify Agency of non-implementation of investment
75. Transfer of licences, permits or certificates of registration
76. Records to be kept .
77. Suspension or revocation of licence, permit or certificate of
registration
PA RT X I
M
ISCELLANEOUS
78. Appeals
79. False statements
80. State institution to consult Agency
81. Exercise of Presidential powers
82. Regulations
83. Act to bind Republic
84. Repeal
85. Savings and transitional provisions
FIRST SCHEDULE
SECOND SCHEDULE
THIRD SCHEDULE
FOURTH SCHEDULE
72 No. 11 of 2006]Zambia Development Agency

A BILL
ENTITLED
An Act to foster economic growth and development by promoting
trade and investment in Zambia through an efficient, effective
and coordinated private sector led economic development
strategy; to establish the Zambia Development Agency as a
one stop facility which will ensure, among other matters, client
focus, dialogue with the private sector and create confidence
in public sector support for business; to provide for the
functions and powers of the Agency; to attract and facilitate
inward and after care investment; to provide and facilitate
support to micro and small business enterprises; to promote
exports and globalisation; to streamline bureaucratic
procedures and requirements faced by investors; to facilitate
industrial infrastructure development and local services; to
promote greenfield investments through joint ventures and
partnerships between local and foreign investors; to promote
and encourage education and skills training so as to increase
productivity in business enterprises; to encourage measures
to increase Zambia’s capacity to trade and enable business to
participate in a competitive global environment; to ensure
that the private sector takes advantage of and benefits from
international and regional trade agreements; and to provide
for matters connected with or incidental to the foregoing.
[19th May, 2006
ENACTED by the Parliament of Zambia
PA RT 1
P
RELIMINARY
1.This Act may be cited as the Zambia Development Agency
Act, 2006 and shall come into force on such date as the Minister
may, by statutory instrument, appoint.
(2) The Minister may appoint different dates for the coming into
force of the various Parts or sections of this Act.
Enactment
Short title
and
commencement
Zambia Development Agency [No. 11 of 2006 73
GOVERNMENT OF ZAMBIA
ACT
No. 11 of 2006
Date of Assent: 12th May, 2006

2.(1) This Act shall apply to an investor, who may invest in
all regions of the Republic and in all sectors and industries other
than the industries specified in the First Schedule.
(2) Notwithstanding subsection (1) a foreign investor or local
investor may with the approval of the relevant regulatory authority
and subject to any written law be authorised to invest in any industry
specified in the First Schedule.
3.In this Act, unless the context otherwise requires —
“ ACP-EU ” means African Caribbean Pacific —
European Union;
“ Agency ” means the Zambia Development Agency established
by section four;
“ agro processing ” means the conversion of primary
agricultural produce by manual, mechanical or biochemical
means into a new product by changing the size, shape,
composition, nature or quality of such produce;
“ appointed date ” means the date appointed by the Minister
under section one;
“ appropriate authority ” means a statutory officer or body
that was vested or bestowed with functions and powers
under any of the repealed Acts;
“ Board ” means the Board of the Agency constituted under
section six;
“ bonded factory ” means a warehouse that is bonded and
licenced under the Customs and Excise Act and in which
goods may be kept and secured without the payment of
duty or until the requirements of the Act have been satisfied
and includes any store, house, shed or other place in which
goods are kept accordingly;
“ business enterprise ” includes any undertaking carrying on
business in the field of manufacturing, agriculture, agro
processing, transport, fishing, commerce, energy generation,
communications, construction, mining, tourism, education
and skills training;
“ Chairperson ” means the person appointed Chairperson of
the Board under section six;
“ COMESA ” means the Common Market for Eastern and
Southern Africa Organisation established under the Treaty
Establishing the Common Market for Eastern and Southern
Africa;
74 No. 11 of 2006]Zambia Development Agency
Application
Interpretation
Cap. 322

Zambia Development Agency [No. 11 of 2006 75
“ commercial estate ” means any building or premises
designated as a commercial estate under section twenty-
three;
“Commercialisation” means the reorganisation of specified
Government departments into commercialised enterprises
which shall operate as profit making commercial ventures
without the subvention of the Government; and
“commecialise” shall be construed accordingly;
“ Commissioner-General ” means the Commissioner General
of the Zambia Revenue Authority;
“ committee ” means a committee of the Agency
established under section nine;
“ common customs area ” has the meaning assigned to it in
the Treaty Establishing the Common Market for Eastern
and Southern Africa;
“ common facility ” means any facility which is jointly used
by a group of micro and small business enterprises;
“ customs duty ” has the meaning assigned to it in the Customs
and Excise Act;
“ Director-General ” means the person appointed chief
executive officer of the Agency under section eleven;
“ Development Fund ” means the Trade and Industrial
Development Fund established under section forty-eight;
“ development services ” includes advisory services,
promoting training and financing, facilitating the
preparation of business plans, project proposals, loan
applications, financial statements, audited statements of
expenditure and income and other similar services;
“ divestiture ” means the disposing of the whole or part of the
assets and shares of a State owned enterprise;
“divestiture sequence plan” means a list of state owned
enterprises, as approved by Cabinet, categorised according
to the sequence in which the whole or part of their shares
will be disposed of over the period of the privatisation
programme;
“ economic resources ” includes physical, technical, human
and financial resources;
“ established fund ” includes pension funds, contributory social
security schemes, compensation funds and superannuation
funds;
“ existing right ” means any permit, licence or registration
certificate granted by an appropriate authority under any
of the repealed Acts;
“ Export Board ” means the Export Board of Zambia
established by section two of the Export Development Act;
“ Export Development Act ” means the Export Development
Act repealed under section eighty-four;
Cap. 322
Cap. 418

76 No. 11 of 2006] Zambia Development Agency
“ Export Processing Zones Act ” means the Export Processing
Zones Act repealed under section eighty-four;
“ financial institution ” has the meaning assigned to it in the
Banking and Financial Services Act;
“ foreign investment ” means investment brought in by an
investor from outside Zambia;
“ foreign investor ” means a person who makes direct
investment in the country and who in the case of a natural
person is not a citizen or permanent resident of Zambia and
in the case of a company is incorporated outside Zambia;
“ gender ” means female or male and the role individuals play
in society as a result of their sex and status;
“ golden share ” means a share with special rights which
enables the Government, in the national interest, to intervene
in the operations of a company which intervention is caused
by specific actions undertaken or about to be undertaken
by the company;
“ greenfield investment ” means new investment;
“ HIV/AIDS ” means the human immunodeficiency virus;
“ industrial estate ” means any building or premises designated
as an industrial estate under section twenty-three;
“ investment ” means contribution of capital, in cash or in
kind, by an investor to a new business enterprise, to the
expansion or rehabilitation of an existing business enterprise
or to the purchase of an existing business enterprise from
the State;
“ investor ” means any person, natural or juristic, whether a
citizen of Zambia or not, investing in Zambia in accordance
with this Act, and includes a micro or small business
enterprise and rural business enterprise;
“ Investment Act ” means the Investment Act repealed under
section eighty-four;
“ joint venture ” means an enterprise that is a business
undertaking between two or more persons for mutual benefit;
“ licence ” means a licence issued under this Act;
“ local investor ” means a person who makes direct investment
in the country and who in the case of a natural person is a
citizen or permanent resident and in the case of a company
is incorporated in Zambia;
“ manufacturing ” means the transforming, on a commercial
scale, of raw materials into finished or semi-finished products
and includes the assembling of inputs into finished or semi-
finished products;
Cap. 387
Cap. 385

“ matter pending ” means any matter that had been received
or commenced but not disposed of, by an appropriate
authority, prior to its close of business on the day
immediately before the appointed date;
“ member ”means a member of the Board;
“ Micro and Small Enterprises Development Fund ” means
the fund established under section twenty-six of the Small
Enterprises Development Act;
“ micro business enterprise ” means any business enterprise
whose total investment, excluding land and buildings, and
annual turnover and the number of persons employed by
the enterprise does not exceed the numerical value or number
prescribed;
“ mineral ” includes any valuable crystalline or earthy
substance forming part of or found within the earth’s surface
and produced or deposited by natural agencies, but does
not include any clay other than fire clay, gravel, sand, stone
other than lime stone, or any other substance ordinarily
won by way of a process of surface working known as
quarrying;
“ mining operations” means any operation for the purpose of
winning a mineral from the earth; or any substance or
constituent of the earth and carried on in conjunction with
an operation under paragraph (a);
“ multi-facility economic zone ” means any area or premises
in Zambia that has been declared a multi-facility economic
zone under section eighteen;
“ mutual fund ” means an investment fund which purchases
shares in a portfolio of companies and subdivides such
portfolio into individual units for the sale of such units to
investors;
“ non-traditional products ” means products other than minerals
or electricity produced or manufactured in Zambia and
excludes services;
“ permit ”means a permit issued under this Act;
“ physical resource ” includes land, personal property,
intellectual property and infrastructure;
“ prescribed ” means prescribed by the Minister by statutory
instrument and “ prescribe ” shall be construed accordingly;
“ priority sector or product ” means a sector or product that
has a high growth potential, listed in the Second Schedule;
“ privatisation ” means the transferring to the private sector
of part or the whole of the equity or other interest held by
the Government, directly or indirectly, in a State owned
enterprise;
Zambia Development Agency [No. 11 of 2006 77

“ Privatisation Act ” means the Privatisation Act repealed under
section eighty-four;
“ Privatisation Trust Fund ” means the Fund established under
section twenty-nine of the Privatisation Act;
“ Privatisation Revenue Account ” means the account
established under section thirty-nine of the Privatisation Act;
“ regulatory authority ” means the Minister for the time being
responsible for, or such public or statutory officer or body
having powers under any other law, over any industry listed
in the First Schedule or over the products of such industries;
“ repealed Acts ” means the following Acts:
Investment Act;
Privatisation Act;
Small Enterprises Development Act;
Export Processing Zones Act; and
Export Development Act;
“ rural business enterprise ” means a business enterprise located
in a rural area;
“ SADC ” means the Southern Africa Development Community
established under the Southern Africa Development Treaty;
“ small business enterprise ” means any business enterprise
whose total investment, excluding land and buildings, and
annual turnover and the number of persons employed by
the enterprise does not exceed the numerical value or number
prescribed;
“ Small Enterprises Development Act ” means the Small
Enterprises Development Act repealed under section eighty-
four;
“ State institution ” includes a ministry or department of
Government, a public office or agency or institution,
statutory body or company in which the Government has a
controlling interest, a local government authority, a
commission or body established under the Constitution;
“ State owned enterprise ” means a corporation, board,
company, parastatal or other body in which the Government
has direct or indirect ownership, equity or interest and
includes a partnership, joint venture or any other form of
business arrangement or organisation in which the
Government has direct or indirect interest, but does not
include a Government ministry or department;
78 No. 11 of 2006] Zambia Development Agency
Cap. 386
Cap. 1

“ value chain ” includes the specific value additions at all
levels of a process in the different sectors of industry;
“ Vice-Chairperson ” means the person appointed as Vice-
Chairperson of the Board under section six; and
“ WTO ” means the World Trade Organisation established
under the World Trade Organisation Agreement.
PA RT I I
T
HE ZAMBIA D EVELOPMENT AGENCY
4.(1) There is hereby established the Zambia Development
Agency which shall be a body corporate with perpetual succession
and a common seal, capable of suing and of being sued in its
corporate name and with power, subject to this Act, to do all such
acts and things as a body corporate may by law do or perform.
(2) The Third Schedule applies to the Agency and the Board.
(3) Except as otherwise provided under this Act, the functions
and powers of the Agency shall be performed and exercised by the
Board.
5.(1) The functions of the Agency shall be to further the
economic development of Zambia by promoting efficiency,
investment and competitiveness in business and promoting exports
from Zambia.
(2) Without limiting subsection (1), the functions of the Agency
shall be to —
(a) give advice to the Minister on matters relating to industry,
industry development and productivity, investments,
exports of goods and services, operations of multi-
facility economic zones and matters relating to micro
and small scale business enterprises;
(b) on the request of Government, study market access offers
received from trading partners under COMESA, WTO
or SADC and advise the Government on opportunities
and challenges generated by those offers;
(c) make detailed impact analysis on select sectors of the
economy such as textiles, agriculture, mining, tourism,
education, skills training, communication, transport,
infrastructure development, automobiles, information
technology, chemicals and steel and engineering goods,
through a multi-disciplinary team;
Zambia Development Agency [No. 11 of 2006 79
Establishment
of Zambia
Development
Agency
Functions of
Agency

(d) establish a database of facilities, human resources and
their skills, sources of finance, technology, raw materials,
machinery, equipment and supplies with a view to
promoting accessibility of these to industry;
(e) develop entrepreneurship skills and a business culture in
citizens of Zambia;
(f) promote and facilitate the development of micro and small
business enterprises;
(g) formulate investment promotion strategies;
(h) promote and coordinate Government policies on, and
facilitate, investment in Zambia;
(i) assist in securing from any State institution anypermission,
exemption, authorization, licence, bonded status, land
and any other thing required for the purposes of
establishing or operating a business enterprise;
(j) undertake economic and sector studies and market surveys
so as to identify investment opportunities;
(k) plan, manage, implement and control the privatisation of
State owned enterprises;
(l) oversee all aspects of the implementation of the privatisation
programme;
(m) monitor progress of the privatisation programme in
Zambia;
(n) monitor post privatisation activities to ensure compliance
with any agreement entered into for the privatisation of
any state owned enterprise;
(o) develop multi-facility economic zones or facilitate the
development of multi-facility economic zones by
investors;
(p) administer, control and regulate multi-facility economic
zones and ensure compliance with this Act and any other
laws relevant to the activities of multi-facility economic
zones;
(q) monitor and evaluate the activities, performance and
development of enterprises operating in multi-facility
economic zones and prescribe and enforce measures, for
the business or activity carried out within a multi-facility
economic zone so as to promote the safety and efficiency
of its operations;
(r) promote and market multi-facility economic zones among
investors;
80 No. 11 of 2006]Zambia Development Agency

(s) undertake research generally on matters relating to
industry, industry development and productivity;
(t) encourage and promote the transfer of appropriate
technology and promote public understanding of matters
relating to industry development and productivity;
(u) provide a framework for the provision of enterprise
development services to industry and business
enterprises and source for financial aid for the
development of trade and industry in order to assist
business enterprises meet economic and social costs of
adjusting to a competitive international trading
environment;
(v) encourage increased private sector investment in education
and skills training for and in the labour market;
(w) explore ways of fostering business linkages, such as
partnerships, joint ventures and other strategic alliances,
in greenfield investments;
(x) provide marketing support services to business enterprises;
(y) encourage measures that will increase Zambia’s capacity
to trade, including efforts to improve transport and
communication infrastructure; and
(z) cooperate with other State institutions and the private
sector in areas linked with trade, such as —
(i) the protection of intellectual property rights;
(ii) standardisation and certification;
(iii) sanitary and phytosanitary measures;
(iv) trade and the environment;
(v) trade and labour; and
(vi) consumer policy.
(3) In the exercise of its functions under subsection (1), the
Agency shall have regard to the need to —
(a) improve the overall economic performance of the
economy through higher productivity in the public and
private sectors in order to achieve higher living
standards for all members of the Zambian community;
(b) reduce regulation of industry where this is consistent with
the social and economic goals of the Government;
(c) encourage the development and growth of Zambian
industries that are efficient in their use of resources,
enterprising, innovative and internationally competitive;
Zambia Development Agency [No. 11 of 2006 81

(d) facilitate adjustment to structural changes in the economy
and the avoidance of social and economic hardships
arising from those changes;
(e) protect the interests of industries, employees, consumers
and the community that are likely to be affected by
measures proposed by the Agency;
(f) increase employment in Zambia;
(g) promote regional development, cooperation andintegration;
(h) monitor the progress made by Zambia’s trading partners
in reducing both tariff and non-tariff barriers;
(i) ensure that industry develops in a way that is ecologically
sustainable;
(j) ensure that Zambia meets its international obligations and
commitments, including those under the WTO, COMESA
and SADC; and
(k) maintain regular, productive and effective dialogue and
cooperation with the public and private sector and
encourage public-public dialogue, private-private
dialogue and private-public dialogue.
6.(1) There is hereby constituted a Board of the Agency which
shall consist of the following sixteen members:
(a) a representative of—
(i) Zambia Chamber of Commerce and Industry;
(ii) the farmers;
(iii) civil society organisations
involved or interested in commerce and industry; and
(iv) agencies promoting small scale industries;
(b) two private businesspersons;
(c) a representative of the Environmental Council of
Zambia;
(d) eight representatives from the Ministries responsible for
trade and industry, finance, labour, agriculture, tourism,
education, skills training and mining; and
(e) the Attorney General or the Attorney General’s
representative.
(2) The Minister shall appoint the Chairperson and the Vice-
Chairperson of the Board from among the members who are not
public officers.
7.(1) The Chairperson shall be appointed for a term of five
years and shall be eligible for re-appointment for a further term of
five years.
82 No. 11 of 2006]Zambia Development Agency
Board of
Agency
Tenure of
office and
vacation of
office

(2) A member, other than the Chairperson, shall be appointed
for a term of three years and shall be eligible for re-appointment for
a further period of three years.
(3) The members of the Board shall serve on a part-time basis.
(4) A member may resign upon giving one month’s notice, in
writing, to the Minister and may be removed by the Minister at any
time if the Minister is satisfied that the continuation in office of that
member is prejudicial to the interests of the Agency.
(5) The office of a member shall become vacant if the member —
(a) dies;
(b) is declared to be of unsound mind;
(c) is adjudged or otherwise declared bankrupt or becomes
insolvent;
(d) is sentenced to a term of imprisonment exceeding six
months;
(e) is absent, without reasonable excuse, from three consecutive
meetings of the Agency; or
(f) serves the period for which the member was appointed.
(6) Whenever the office of member becomes vacant, before the
expiry of the term of office, the Minister may appoint another person
in place of the member but such member shall hold office only for
the unexpired part of the term.
8.A member of the Board shall be paid such allowances as the
Board may, with the approval of the Minister, determine.
9.(1) The Board may, for the purpose of performing the
functions of the Agency under this Act, establish such committees
as it considers necessary and delegate to any of those committees
any of the functions of the Agency.
(2) The Board may appoint as members of a committee persons
who are or are not members of the Board, except that at least one
member of the Board shall be a member of a committee.
(3) A person serving as a member of a committee shall hold
office for such period as the Board may determine.
(4) Subject to any specific or general direction of the Board a
committee may regulate its own procedure.
10.(1) Subject to this Act, the Board may, by directions in
writing and subject to any terms and conditions as it considers
necessary, delegate to the Director-General or any other member of
staff any of the functions of the Agency under this Act.
(2) The Minister may give to the Board general or specific
directions, not inconsistent with this Act, relating to the discharge
of the functions of the Agency and the Agency shall give effect to
those directions.
Zambia Development Agency [No. 11of 2006 83
Allowances
Committees
of Agency
Delegation
of functions
and
directions

11 .(1) The Board shall appoint a Director-General who shall
be the chief executive officer of the Agency on such terms and
conditions as the Board may determine.
(2) The Director-General shall be responsible under the general
direction of the Board for the —
(a) management and administration of the affairs of the
Agency;
(b) implementation of the decisions of the Board; and
(c) any other function assigned to the Director-General by the
Board or by or under this Act.
(3) The Director-General shall attend meetings of the Board
and participate in the discussions of the Board but shall have no
vote.
(4) The person presiding at any meeting of the Board may
request the Director-General to withdraw from the meeting.
(5) The Director-General shall be assisted by a Secretary and
such other staff as the Board may appoint, on such terms and
conditions as the Board may determine.
PART III
T
RADE AND INDUSTRIAL DEVELOPMENT
12.(1) The Agency shall, in consultation with the private
sector and, in particular, the business community, recommend to
the Minister coherent trade and industry development strategies —
(a) to facilitate the formation and operations of private sector
business associations;
(b) to develop guidelines for financing economic development
programmes, including franchising;
(c) for the provision of information on sources of finance,
including instruments for granting subsidies for long-
term development support and investment facilities for
the promotion of the private sector in economic
development;
(d) for skills and development, in consultation with any private
or State institution responsible for skills training, so as
to enable citizens of Zambia effectively participate in
the economic sector;
(e) to promote greenfield investments through joint ventures
and partnerships between local and foreign investors;
(f) to develop the capacity of business enterprises to trade
in an international competitive market;
84 No. 11 of 2006]Zambia Development Agency
Director –
General and
other staff
Trade and
industry
development
strategies

(g) to promote gender equality in accessing, owning, managing,
controlling and exploiting economic resources;
(h) to address the impact of HIV/AIDS and other diseases on
the economic sector; and
(i) to encourage, support and facilitate the creation of micro
and small scale business enterprises and promote their
participation in trade and industry.
(2) In formulating the trade and industry development strategy
under subsection (1), the Agency shall have regard to the need to—
(a) facilitate and protect infant industries;
(b) develop, strengthen or facilitate the development of trade
related and supportive services such as —
(i) insurance, freight, banking, warehousing,
communication and transport; and
(ii) professional, technical, management, training and
commercial services;
(c) scale-up investment in rural infrastructure;
(d) support institutions, programmes, activities and initiatives
that contribute to the development and transfer of
technologies, know-how and best practices relating to
business management;
(e) increase production, supply and the competitive nature of
Zambia’s products;
(f) attract inward investments;
(g) reduce poverty and, in the long term, eradicate poverty in
line with the objectives of sustainable development;
(h) move towards larger and more unified markets in the form
of free trade areas, common customs areas or single
markets;
(i) participate in initiatives to strengthen the capacity of regional
institutions and facilitate trade liberalisation;
(j) take cognisance of common or cross-border issues that arise
in areas such as infrastructure development, the
environment, education and research; and
(k) liaise and collaborate with relevant State institutions to
encourage business enterprises to —
(i) increase both the quantity and quality of their output
in order to take advantage of trade options and
openings;
Zambia Development Agency [No. 11 of 2006 85

(ii) meet sanitary, phytosanitary, labelling and
packaging standards for agricultural products
and other goods; and
(iii) meet stringent human and animal health standards
and rules of origin so as to effectively participate
in a competitive global system of trade.
13.(1) The Agency shall facilitate and promote trade and
business development by —
(a) enabling the business community to participate in
national and international trade fairs, exhibitions,
specialised fairs and trade missions;
(b) improving the quality, availability and access of financial
and non-financial services to business enterprises by —
(i) catalysing and leveraging flows of private savings,
both domestic and foreign, into the financing of
business enterprises in accordance with
Government policies aimed at developing a
modern financial sector, including the
strengthening of a capital market, financial
institutions and sustainable microfinance
operations;
(ii) facilitating the development and strengthening of
business enterprises and intermediary
organisations, associations, chambers of
commerce and local providers from the private
sector supporting and providing non-financial
services to business enterprises;
(iii) improving access to essential inputs such as
business information and development services;
(iv) enhancing export activities, especially through
capacity building in all trade-related areas; and
(v) encouraging inter business enterprise linkages,
networks and cooperation at national, regional
and international levels; and
(c) concluding trading arrangements, compatible with the rules
of the WTO, that remove, progressively, barriers to trade
between the parties to the arrangements and enhance
cooperation in all areas relevant to trade.
(2) In consultation with the business community, the Board shall
disseminate market information to SADC, COMESA and WTO.
(3) The Agency shall establish a national and international
database on trade information networks.
86 No. 11 of 2006] Zambia Development Agency
Trade and
business
development
measures

(4) The Agency shall disseminate to the business community
market information and information on all trade agreements to which
Zambia is a party.
14.The Agency shall recommend, to State institutions, policy
and institutional reforms and the measures necessary for equitable
access by both gender and all business enterprises to economic and
productive resources, in particular, the following:
(a) the development of training systems that help increase
productivity in both the formal and the informal sectors;
(b) the availability of capital, credit, land and other property
rights and their use;
(c) the development of rural strategies aimed at establishing a
framework for participatory decentralised planning,
resource allocation and management;
(d) agriculture production strategies and sustainable
development of natural resources;
(e) economic and technological infrastructure and services,
including transport, telecommunication systems,
communication services and the development of an
information society;
(f) the development of competitive industrial, mining and
energy sectors while encouraging private sector
involvement and development;
(g) trade development; and
(h) the development of scientific, technological and research
infrastructure and services.
15.The Board under the direction of the minister shall undertake
market research and participate in international and regional
conferences and meetings for the purpose of —
(a) ensuring that Zambia takes advantage of international trade
arrangements, such as those under COMESA, SADC,
WTO and the ACP-EU Partnership Agreement; and
(b) articulating well developed and coordinated country
positions in international and regional negotiations.
16.The Agency shall promote discreet sector codes for different
sectors of the economy and shall cause a code to be published in the
Gazette, for general information, if the Board is satisfied that the
code —
(a) has been developed by the major stakeholders in that sector;
and
(b) advances the objectives of this Act.
Zambia Development Agency [No. 11 of 2006 87
Economic
development
measures
Research and
articulating
country
position
Sector codes

PART IV
I
NVESTMENT PROMOTION AND G UARANTEES
17.The Board shall promote private investment by —
(a) taking measures and actions which help to create and
maintain a predictable and secure investment climate;
(b) encouraging foreign investment, including the formation
of strategic alliances with Zambian business enterprises;
(c) facilitating partnerships and joint ventures by encouraging
co-financing;
(d) encouraging sector investment so as to promote foreign
investment;
(e) supporting and taking into account policies of the
Government for attracting financing, including private
financing, for infrastructure investments and revenue
generating infrastructure critical for private sector
growth;
(f) supporting capacity building strategies for national
investors;
(g) disseminating information on investment opportunities
and business operational conditions in Zambia;
(h) analysing and providing relevant bodies with information
on specific problems of a sectorial nature relating to trade
and industry;
(i) giving development services to investors so as to assist in
creating a responsive investment environment and
information base to guide and encourage the flow of
capital; and
(j) endeavouring to conclude investment promotion and
protection agreements with prospective investors.
18.(1) The Minister may, on the recommendation of the Board
after consultation with the Minister responsible for finance and with
the approval of Cabinet, by statutory instrument, declare an area,
premises or building to be a multi-facility economic zone.
(2) A statutory instrument made under subsection (1) shall
prescribe the—
(a) limits of the area, premises or building declared as a multi-
facility economic zone;
(b) facilities to be provided and maintained within a multi-
facility economic zone;
88 No. 11 of 2006]The Zambia Development Agency
Investment
promotion
measures
Declaration
of Multi-
facility
economic
zones

(c) terms and conditions under which such goods produced
and services provided in a multi-facility economic zone
may be sold, exported or otherwise disposed of;
(d) activities which are prohibited within a multi-facility
economic zone;
(e) conditions under which goods may be removed from a
multi-facility economic zone;
(f)the powers and obligations of an investor in a multi-facility
economic zone; and
(g) such other matters that are necessary for the effective and
efficient operations of multi-facility economic zones.
19.(1) An investor’s property shall not be compulsorily
acquired nor shall any interest in or right over such property be
compulsorily acquired except for public purposes under an Act of
Parliament relating to the compulsory acquisition of property which
provides for payment of compensation for such acquisition.
(2) Any compensation payable under this section shall be made
promptly at the market value and shall be fully transferable at the
applicable exchange rate in the currency in which the investment
was originally made, without deductions for taxes, levies and other
duties, except where those are due.
20.Notwithstanding any other written law relating to
externalisation of funds, a foreign investor may transfer out of
Zambia in foreign currency and after payment of the relevant
taxes —
(a) dividends or after-tax income;
(b) the principal and interest of any foreign loan;
(c) management fees, royalties and other charges in respect
of any agreement; or
(d) the net proceeds of sale or liquidation of a business
enterprise.
21.Any dispute arising as a consequence of an investment under
this Act shall be settled in accordance with the Arbitration Act.
PA RT V
M
ICRO AND SMALL BUSINESS
22.The Board shall promote and facilitate the development of
micro and small business enterprises by —
(a) creating a conducive environment for the attainment of
that purpose;
Zambia Development Agency [No. 11 of 2006 89
Protection
from
acquisition
Transfer of
funds
Settlement of
disputes
Act No. 19 of
2000
Promotion
and
development
of micro
and small
business
enterprises

(b) formulating, coordinating and implementing policies and
programmes for promoting and developing micro and
small business enterprises;
(c) providing marketing support services to micro and small
business enterprises;
(d) registering, collecting, researching and disseminating
information relating to micro and small business
enterprises;
(e) registering, monitoring and coordinating activities and
programmes to promotional agencies engaged in micro
and small business enterprise development;
(f) assisting in the development and upgrading of appropriate
productive technologies for micro and small business
enterprises; and
(g) locating and developing commercial estates and common
facilities for use by micro and small business enterprises.
23.(1) The Board shall, in consultation with relevant State
institutions and on such terms and conditions as may be agreed
upon with those institutions, assist micro and small business
enterprises, registered under this Act, with the provision of buildings
or premises where those enterprises may undertake business
activities.
(2) The Board may, for the purpose specified in subsection (1),
designate —
(a) industrial estates for the location of micro and small
business enterprises engaged in manufacturing; and
(b) commercial estates for the location of micro and small
business enterprises engaged in the retail of goods and
services.
24.The Board may, in liaison with any person, institution,
organisation or company, let out any building or premises for use
by micro or small business enterprises as an industrial or commercial
estate, on such terms and conditions as may be agreed upon.
25.The Trade Licensing Act shall not apply to a micro or small
business enterprise registered under this Act.
PA RT V I
P
RIVATISATION AND COMMERCIALISATION
26.A State owned enterprise shall be privatised in accordance
with a divestiture sequence plan.
90 No. 11 of 2006] Zambia Development Agency
Industrial or
commercial
estates
Letting of
buildings or
premises
Application
of Trade
Licensing
Act Cap.
393
Privatisation
of State
owned
enterprises

27.The Minister responsible for finance may, in consultation
with the Cabinet, retain a share in a State owned enterprise which is
privatised and convert such share into a golden share.
28.The shares of a State owned enterprise shall be allotted by
the Board in accordance with the companies Act.
29.The shareholders, director and management in any State
owned enterprise, when requested by the Board, shall provide to the
Agency such information as the Board may require.
30.(1) A State owned enterprise scheduled for privatisation shall —
(a) carry out any recommendations, made by the Board, for
preparing the company for privatisation;
(b) keep up to date all business records and books of account;
(c) prepare a two to three years’ investment and financing
plan and a manpower development plan;
(d) prepare statutory accounts and cause them to be audited
not later than four months after each financial year;
(e) maintain a fixed asset register which shall be reconciled
with the financial statement;
(f) not perform any action or actions that would result in the
assets of the company being dissipated;
(g) not undertake any new capital investment programmes,
unless a project appraisal document approved by the
Board, is prepared showing that —
(i) routine plant, equipment and vehicle renewal is
required;
(ii) rehabilitation expenditure is essential to keep the
operations of the State owned enterprise running
or to improve the marketability of the State
owned enterprise;
(iii) new capital investment has a pay back period of
less than two years;
(iv) capital investment will contribute to the promotion
of export-import substitution;
(v) the State owned enterprise is not earmarked for
divestiture within two years of the investment
being completed; or
(vi) the State owned enterprise demonstrates that the
investment will not allow a deterioration of the
company’s operations;
Zambia Development Agency [No. 11 of 2006 91
Allotment of
shares
Obligations
of holding
companies
and share-
holders
Obligations
of State
owned
enterprisesGolden
share

(h) clear, as far as possible, all contractual, legal and other
obligations;
(i) not give any person information which might give undue
advantage to that person or any potential investor;
(j) pay all costs incidental to the privatisation of the enterprise
relating to —
(i) valuation fees;
(ii) legal costs;
(iii) advertising charges;
(iv) marketing expenses; and
(v) other expenses;
(k) when requested by the Board disclose all or any information
about the enterprise; and
(i) refrain from taking any action which may cause industrial
unrest.
(2) Any person or officer of a State owned enterprise who
knowingly contravenes subsection (1) commits an offence and shall
be liable upon conviction to a fine not exceeding three thousand
penalty units or to a term of imprisonment not exceeding five years,
or to both.
(3) For the purposes of subsection (1), a State-owned enterprise
is scheduled for privatisation if it is included in the divestiture
sequence plan.
31.(1) The Board may employ the following modes of
privatisation:
(a) public offering of shares;
(b) private sale of shares through negotiated or competitive
bids or by private treaty;
(c) offer of additional shares in a State owned enterprise to
reduce Government shareholding;
(d)sale of the assets and business of the State owned enterprise;
(e) reorganisation of the State owned enterprise before the sale
of the whole or any part of the State owned enterprise;
(f) management or employee buyouts by management or
employees in that State owned enterprise;
(g) lease and management contracts; or
(h) any other method the Board may consider appropriate.
(2) The Board shall ensure that the shares or assets of a State
owned enterprise are sold at market value.
92 No. 11 of 2006]The Zambia Development Agency
Modes of
privitization

32.(1) The valuation of a State owned enterprise shall be
performed by an independent valuer who shall issue a certificate of
valuation.
(2) The valuation of a State owned enterprise shall be done in
accordance with the following:
(a) the valuation shall be based on the current value of the
State owned enterprise;
(b) where the State owned enterprise is not operational or the
assets do not form part of a core of the business, the
valuation shall be based on the net asset value of the
State owned enterprise; or
(c)any other prudent and acceptable valuation method.
(3) The net asset value shall be based on the —
(a) market value of the real property valued by a real estate
valuer;
(b) depreciated replacement value of tangible assets other than
real property; or
(c) a fair value of other assets and liabilities valued by a valuer.
33.The shares or assets in a State owned enterprise shall be
sold to a citizen of Zambia or a person who is not a citizen of
Zambia.
34.A member, member of a committee or any employee or
consultant of the Agency or the spouse, child, mother, father, brother,
sister or a professional business partner of a member, an employee
or consultant shall not purchase shares or assets in any State owned
enterprise, unless the sale is by public offer of shares or assets.
35.A political leader or public officer shall publicly disclose
their intention to bid, directly or indirectly, for shares or assets
in a State owned enterprise or to participate in any other form of
privatisation.
36.A potential investor shall disclose that investor’s bid in a
State owned enterprise and direct or indirect personal interest,
whether through shareholdings, a nominee or otherwise, in a State
owned enterprise.
37.An established fund may, with the consent of the
contributors, purchase shares or assets in a State owned enterprise
on behalf of the contributors.
38.The following shall apply to citizens of Zambia:
(a) shares or assets may be offered at a discount to persons
who purchase a small number of shares or a few assets;
(b) a share bonus shall be given at the end of a prescribed
period to small shareholders who hold onto shares;
Zambia Development Agency [No. 11 of 2006 93
Eligible
buyer
Sale of
shares to
member,
employee or
consultant
Political
leaders
Declaration
by potential
investor
Established
funds
Purchase of
shares by
citizens of
Zambia Valuation of
State owned
enterprise

(c) individuals, management and employees of the State owned
enterprise may pay for shares or assets in instalments; or
(d) individuals may participate in the acquisition of shares or
assets which have been transferred in a State owned
enterprise to a Privatisation Trust Account opened under
section fifty-two.
39.Subject to section thirty-eight or any other written law, the
shares or assets of a State owned enterprise shall not be sold on
credit.
40.(1) The Board shall appoint an independent negotiating
team for each sale.
(2) A person appointed on a negotiating team shall —
(a) have proper professional qualifications, experience and
good business standing;
(b) take an oath of secrecy; and
(c) disclose any personal or professional interest before
accepting the appointment:
Provided that a person appointed to a negotiation
team shall dsclose any personal or professional interest
which may arise at any time after accepting the
appointment.
(3) A person who does not comply with paragraph (c) of
subsection (2) shall be removed from the negotiating team and shall
be disqualified from being appointed to a negotiating team.
41.The Board may recommend to the shareholders and directors
of a State owned enterprise which is scheduled for privatisation and
is not a public company, that such State owned enterprise be
converted into a public company, in accordance with the Companies
Act.
42.Notwithstanding any other written law and for purposes of
this Act, a bank or financial institution may carry on the business
of a stockbroker or a dealer in stocks and shares.
43.The Board may recommend to the shareholders and directors
of a State owned enterprise that the state owned enterprise be
liquidated in accordance with the Companies Act.
44.(1) The Minister responsible for finance shall sign the
final Sales Agreement to transfer shares or assets to the selected
bidder.
(2) The transfer of shares or assets shall be in accordance with
the Companies Act.
94 No. 11 of 2006]The Zambia Development Agency
Mode of
payment of
shares
Negotiations
for offer of
sale
Trading in
shares
Liquidation
Consummation
of sale Conversion
of private
companies
to public
companies
Cap. 388
Cap. 388

45.(1) The Minister, in consultation with the Minister
responsible for a department to be commercialised, may specify,
by notice in the Gazette, that the Government department shall be
commercialised.
(2) A Government department that has been commercialised
under this section shall be incorporated under the Companies Act.
(3) A Government department that has been commercialised
under this section may —
(a) fix its own rates, prices and charges for goods and services
provided;
(b) capitilise assets; and
(c) borrow debenture stocks.
46. The Board shall publish by notice in the Gazette —
(a) the names of the approved State owned enterprises to be
privatised or commercialised;
(b) the registered consultants, valuers, lawyers, public
accountants, and merchant banks dealing with the
privatisation or commercialisation process;
(c) the bidders and bid prices;
(d) the successful bidders and the reason for selecting those
bidders;
(e) the price of shares and any other special conditions of the
sale of shares; and
(f) any other matter considered appropriate by the Board.
47.(1) Any person having an interest in a State owned
enterprise scheduled for privatisation or commercialisation shall
make a claim to the Agency, within a period of thirty days after the
notice referred to in section forty-six is published.
(2) Any person having an interest in a State owned enterprise
and who does not make a claim within thirty days of the notice,
referred to in subsection (1), shall be deemed to have relinquished
all interests in the State owned enterprise.
PART VII
T
RADE AND INDUSTRIAL D EVELOPMENT FUND AND
PRIVATISATION TRUST ACCOUNT
48.(1) There is hereby established the Trade and Industrial
Development Fund to support economic growth and development
by promoting trade and investment.
The Zambia Development Agency [No. 11 of 2006 95
Commercial-
isation of
specified
Government
departments
Publication
of
information
Claims in
state owned
enterprises
Establishment
of Trade and
Industrial
Development
Fund

(2) The Development Fund shall be used to support micro and
small business enterprises, rural business enterprises and other
business enterprises, as may be determined by the Board.
(3) The Development Fund shall consist of —
(a) such moneys as may be appropriated by Parliament for
the purposes of the Development Fund;
(b) moneys received by way of grants or donations for the
purposes of the Development Fund; and
(c) interest accrued from loans and any other investments made
by the Board.
(4) The Board shall, in order to facilitate the flow of financial
resources to business enterprises so as to promote trade and
investment —
(a) on its own or in cooperation with other State institutions
identify micro and small business enterprises, any rural
business enterprise, education enterprise, skills training
enterprise or other business enterprises which require
financial assistance;
(b) provide information on sources of finance and promote
investments for business enterprises specified in
paragraph (a);
(c) on its own or in cooperation with other State institutions
render assistance to business enterprises specified in
paragraph (a) so as to enable them access financial
resources;
(d) in conjunction with any financial institution, designated
by the Minister for the purpose of financing micro and
small business enterprises, rural business enterprises or
other business enterprises, monitor, establish and design
standards for loan administration, effective use of loan
funds and repayment mechanisms by the business
enterprises so as to curb misuse of financial resources
and attain their objectives; and
(e) on its own or with any financial institution establish or
source venture capital funds to promote investments in
business enterprises specified under paragraph (a).
(5) Where the Board proves to its satisfaction that any business
enterprise, specified under paragraph (a) of subsection (4), is
engaged in fronting, that business enterprise shall be barred from
accessing any moneys from the Development Fund or from
benefiting from any incentives under this Act and in addition shall
be liable to any penalty specified under subsection (6).
96 No. 11 of 2006]Zambia Development Agency

(6) Any director, shareholder or partner of a business enterprise
who engages in fronting commits an offence and shall be liable on
conviction to a fine not exceeding two hundred thousand penalty
units.
(7) In this section “ fronting ” includes holding out as being the
defacto director, shareholder or partner of a business enterprise in
order to hide the true identity of the director, shareholder or partner
of that business.
49.(1) The Development Fund, established under section
forty-eight shall be vested in the Board and shall be managed and
administered by the Board in such manner as the Board may
determine.
(2) The Board shall establish criteria for the application and
disbursement of moneys from the Development Fund.
50.The Development Fund shall be audited every year by
auditors appointed by the Board with the approval of the Auditor-
General.
51. (1) The Board shall cause to be prepared an annual audited
statement of income and expenditure with respect to the Development
Fund which shall be submitted to the Minister.
(2) The Minister shall, not later than seven days after the first
sitting of the National Assembly next after receipt of the audited
statement of income and expenditure referred to in subsection (1),
cause it to be laid before the National Assembly.
52.The Board shall open a Privatisation Trust Account in which
the Agency shall hold shares in trust for citizens of Zambia for
divestiture after a State owned enterprise has been privatised.
53. (1) Any net proceeds from completed sales of shares and
assets shall be paid into a Privitisation Trust Account established
by the Ministry repsonsible for finance and held at the Bank of
Zambia.
(2) The Board shall with the prior approval of the Minister and
Minister responsible for finance the proceeds of sale referred to in
subsection (1), may be used for—
(a) funding the cost of privatisation;
(b) initial financing of mutual funds;
(c) expanding existing productive capacities;
(d) financing credit creation by the Government for
investors;
Zambia Development Agency [No. 11 of 2006 97
Management
of
Development
Fund
Auditing of
Development
Funds
Statement of
income and
expenditure
Privatization
Trust
Account
Use of
proceeds

(e) rehabilitating existing plants;
(f) supporting new capital investments;
(g) supporting redundancy payment schemes in consultation
with the Ministry responsible for labour;
(h) supporting alternative income generating projects; or
(i) funding any social project that will be in the public interest.
PART VIII
I
NCENTIVES
54.The Minister responsible for finance shall in consultation
with the Minister make regulations in respect of incentives offered
under this Act.
55.An incentive offered under this Part shall be valid for a
period of five years from the grant of the licence, permit or certificate
or for such period as the Minister responsible for finance may
prescribe.
56.An investor investing not less than five hundred thousand
United States Dollars or the equivalent in convertible currency, in a
priority sector or product, is entitled to incentives as specified by or
under the Income Tax Act or Customs and Excise Act.
57.(1) Any machinery or equipment acquired by —
(a) a business enterprise conducting operations in a priority
sector or in respect of priority products; or
(b) a rural enterprise;
shall be exempt from customs duties as specified by or under the
Customs and Excise Act.
58.The Minister responsible for finance may, for the purposes
of promoting major investment in an identified sector or product,
by statutory instrument, and in consultation with the Minister, specify
additional incentives for investment in an identified sector or product
of not less than ten million United States Dollars or the equivalent
in convertible currency, in new assets that qualify for those
incentives.
59.An investor shall not be entitled to the incentives provided
for under this Part unless the investor holds a licence, permit or
certificate of registration under this Act.
98 No. 11 of 2006]The Zambia Development Agency
Regulations
on
incentives
Validity
period for
incentives
Qualification
for
incentives
Cap. 323
Incentives
for machines
or equipment
Major
investment
No incentives
without
license,
permit or
certificate

60. The relief or exemption from any tax or duty to which an
investor is eligible under this Part shall be effected by the
Commissioner-General upon the Board certifying that the investor
has complied fully with this Act and any condition prescribed.
61.Where a double taxation agreement exists, between Zambia
and another country, foreign tax payable by an investor to the other
country in respect of any foreign income shall be as determined
under that agreement.
62.An investor may apply to be appointed and licenced by the
Commissioner-General to establish and operate a bonded factory
under section fifty-five of the Customs and Excise Act.
63.The Commissioner-General shall, after consultation with
the Agency, licence a bonded warehouse under section fifty-five of
the Customs and Excise Act.
PA RT I X
S
ERVICES
64.(1) The Board, in consultation with the Ministry
responsible for land, shall assist an investor in identifying suitable
land for investment and shall assist the investor in applying to the
responsible authorities for land, in accordance with established
procedures.
(2) Where an application is made under subsection (1), and
the land has been demarcated for the purpose applied for and such
land has not been allocated to any other person, body or authority,
the authority responsible for the allocation of land shall, upon
payment, by the investor, of the prescribed fees, charges, or rates,
allocate the land to the investor and the officer responsible for the
registration of such land shall make such entries in the appropriate
register and shall issue to the investor a certificate of title in respect
of that land.
65.(1) Notwithstanding the Immigration and Deportation Act,
an investor who invests a minimum of two hundred and fifty
thousand United States Dollars or the equivalent in convertible
currency and who employs a minimum of two hundred persons
shall be entitled to a self employment permit or resident permit;
Provided that such number of the persons so employed by
the investor as may be prescribed shall hold managerial and
technical positions.
(2) The Board shall assist an investor, who meets the
requirements of subsection (1), to obtain work permits for up to
five expatriate employees.
Zambia Development Agency [No. 11 of 2006 99
Certification
of
investment
for tax or
duty relief or
exemption
Double
taxation
agreements
Immigration
Cap. 123Bonded
factory
Cap. 322
Licensing of
bonded
warehouse
Cap. 322
Land

66.The Board shall assist an investor in obtaining water, electric
power, transport and communication services and facilities required
for the investment.
67.The Board shall assist an investor in obtaining any licence,
permit or certificate of registration or other authorisation for the
purpose of commencing or operating a business enterprise.
PA RT X
L
ICENCES , P ERMITS AND C ERTIFICATES OF R EGISTRATION
68.(1) A person who wishes to —
(a) develop premises as a multi-facility economic zone;
(b) export prescribed goods and services;
(c) invest in any business enterprise;
(d) register a micro or small business enterprise, education
enterprise, skills training enterprise or rural business
enterprise for purposes of this Act; or
(e) operate a business enterprise in a multi-facility economic
zone;
shall submit an application to the Board in a prescribed form and
the application shall be accompanied by a prescribed fee and such
documents and information as may be required by the Board.
(2) The Board shall, within fourteen days of the submission of
an application under subsection (1), approve or refuse to approve
the application and, immediately thereafter, communicate the
approval or refusal to the applicant.
(3) Where the Board approves an application made under
subsection (1), it shall grant, subject to such terms and conditions
as it may determine —
(a) a licence to an investor;
(b) a permit to a business enterprise, other than a micro and
small business enterprise or rural business enterprise;
and
(c) a certificate of registration to a micro and small business
enterprise, education enterprise, skills training enterprise
or rural business enterprise.
(4) The Board may vary or amend any conditions of a licence,
permit or certificate of registration —
(a) where there are changes relating to the investment, after
consultations with the investor; or
100 No. 11 of 2006]Zambia Development Agency
Services and
facilities
Registration
and
licensing
Application
for and
grant of
licence,
permit
or certificate
of
registration

(b) on an application by the investor to vary the terms and
conditions of the licence, permit or certificate of
registration.
69.In considering an application for a licence, permit or
certificate of registration the Board shall have regard to —
(a) the need to promote economic development and growth in
Zambia;
(b) the extent to which the proposed investment will lead to
the creation of employment opportunities and the
development of human resources;
(c) the degree to which the project is export oriented;
(d) the impact the proposed investment is likely to have on the
environment and, where necessary, the measures
proposed to deal with an adverse environmental
consequence in accordance with the Environmental
Protection and Pollution Control Act;
(e) the possibility of the transfer of technology; and
(f) any other considerations that the Board considers
appropriate.
70.(1) A licence, permit or certificate of registration granted
to an applicant shall specify —
(a) the name, nationality and address of the applicant;
(b) the legal status of the business enterprise, whether it is a
body corporate, firm, partnership, joint venture,
association or other type of entity, its registered place of
business and the names and nationalities of the chief
executive officer, the directors and other office bearers
as the Board considers necessary;
(c) a description of the proposed investment, authorised by
the Board, under the licence, permit or certificate of
registration;
(d) the nature and the amount or value of the foreign investment
or other investment and, where applicable, the period
within which the investment will be made;
(e) the date of issue and expiry of the licence, permit or
certificate of registration; and
(f) the terms and conditions of the licence, permit or certificate
of registration.
(2) The Board may impose such conditions on the issue of a
licence, permit or certificate of registration as may be prescribed.
Zambia Development Agency [No. 11 of 2006 101
Consideration
before
approving
application
for licence,
permit or
certificate of
registration
Cap. 204
Contents of
licence,
permit or
certificate of
registration

(3) An investor shall, without delay, inform the Agency of any
material change in the information or particulars furnished by the
investor when the investor applies for a licence, permit or certificate
of registration.
71.A licence, permit or certificate of registration shall be valid
for a period of ten years from the date of issue, during which period
the investor shall implement the proposed investment.
72.(1) An investor may, subject to subsection (2), apply for a
renewal of a licence, permit or certificate of registration, before its
expiry, for a period not exceeding ten years at a time.
(2) An application for renewal shall be —
(a) made in such form and manner and within such period as
may be determined or prescribed; and
(b) accompanied by a prescribed fee.
(3) The Board shall, where an applicant has not breached any
provision of this Act or condition of a licence, permit or certificate
of registration renew the licence, permit or certificate of registration
and immediately thereafter, but not later than fourteen days,
communicate the refusal or approval of the renewal to the applicant.
73.(1) The Board shall maintain or cause to be maintained a
register of —
(a) investors to whom licences, permits or certificates of
registration have been issued and the particulars of the
investors;
(b) the conditions attached to each licence, permit or certificate
of registration;
(c) any amendments, suspensions or revocations of licences,
permits or certificates of registration and the reasons for
such decisions; and
(d) any renewals of licences, permits or certificates of
registration.
(2) The register kept, under subsection (1), shall be open for
inspection by members of the public at all reasonable times at the
offices of the Agency on payment of a prescribed fee.
74.Where for any reason an investor is unable to implement
the investment described in the licence, permit or certificate of
registration the investor shall notify the Agency of the inability to
implement such investment, stating the reasons for the inability,
within thirty days of the investor becoming aware of the non-
implementation of the investment.
102 No. 11 of 2006]Zambia Development Agency
Period of
validity of
licence,
permit or
certificate of
registration
Renewal of
licence,
permit or
certificate
of
registration
Register of
licences,
permits and
certificates
of
registration
Investor to
notify
Agency of
non-
implementation
of
investment

75.An investor shall not assign, cede or otherwise transfer the
investor’s licence, permit or certificate of registration to any other
person without the prior approval of the Board.
76.(1) Every investor shall keep, at the investor’s place of
business or premises, and maintain in a form and manner conforming
to accepted accounting standards the following —
(a) a register into which shall be entered the assets and
liabilities; and
(b) books of account, invoices, customs permits and other
documents connected with manufacturing operations or
production.
(2) Every investor shall furnish as and when the Board considers
necessary any other information as may be requested by the Board
which information shall be treated as confidential.
(3) Every investor shall produce, on demand by an authorised
officer of the Agency, at any time for inspection by the officer, the
books, records, documents and such other information referred to
in this section and shall allow the officer to make extracts from
those documents for the Agency’s records or reference.
(4) Any person who does not comply with subsection (3)
commits an offence and shall be liable on conviction to a fine not
exceeding ten thousand penalty units or to imprisonment for a term
not exceeding three months, or to both.
77.(1) The Board may suspend or revoke a licence, permit
or certificate of registration, after due investigation where the investor
is given an opportunity to be heard, if the investor —
(a) obtained the licence, permit or certificate of registration
on the basis of fraud, negligent misrepresentation or any
false or misleading statement;
(b) assigns, cedes or otherwise transfers the licence, permit or
certificate of registration to another person without the
prior approval of the Board;
(c) fails without reasonable explanation to implement the
investment described in the licence, permit or certificate
of registration within the period stipulated or any
extension in respect of an initial period stipulated;
(d) breaches or fails to comply with any terms or conditions
of the licence, permit or certificate of registration; or
(e) is convicted of an offence under this Act.
Zambia Development Agency [No. 11 of 2006 103
Transfer of
licences,
permits or
certificates
of
registration
Records to be
kept
Suspension
or revocation
of licence,
permit, or
certificate of
registration

(2) The Board shall, before taking any action under subsection
(1), notify the investor of its intention to suspend or revoke the licence,
permit or certificate of registration and the reason therefor, and call
upon the investor to show cause, within such reasonable period as
may be specified in the notice, why the licence, permit or certificate
of registration should not be suspended or revoked.
(3) If, on the expiration of the period specified in the notice
given under subsection (2), and after considering any representations
made by the investor the Board is satisfied for any reason specified
in subsection (1), that the licence, permit or certificate of registration
should be suspended or revoked, the Board may, by notice in writing
to the investor, suspend or revoke the licence, permit or certificate
of registration or take such other action as it considers appropriate,
including suspending or revoking any incentives to which the investor
may be entitled under this Act.
(4) The Board shall not suspend or revoke a licence, permit or
certificate of registration where an investor takes remedial measures
to the satisfaction of the Board, within such period as the Board
may specify.
(5) The Board may, where an investor fails to—
(a) show cause why the licence, permit or certificate of
registration should not be cancelled; or
(b) take remedial measures within the period specified under
subsection (4);
to the satisfaction of the Board suspend or revoke the licence,
permit or certificate.
(6) Where a licence, permit or certificate of registration is
suspended or revoked, the holder of the licence, permit or certificate
shall Lease to be entitled to the right or benefits conferred under
this Act with effect from the date of the suspension or revocation
and —
(a) in the case of a suspension, for the period of suspension;
and
(b) in the case of a revocation, shall surrender the licence,
permit or certificate of registration to the Agency
forthwith.
PA RT X I
M
ISCELLANEOUS
78.(1) An investor who is aggrieved by a decision of the Board
may, within fourteen days of receiving the decision, appeal to the
Minister against the decision.
(2) The appeal, referred to in subsection (1), shall —
(a) be in writing;
104 No. 11 of 2006] Zambia Development Agency
Appeals

(b) specify in detail the grounds on which the appeal is being
made; and
(c) be accompanied by any information which the investor
wishes to tender in support of the appeal.
(3) The Minister shall, within thirty days of receiving the appeal
confirm, set aside or vary the decision of the Board.
(4) Any person dissatisfied with the decision of the Minister
may, within thirty days, appeal to the High Court against the decision.
79.(1) A person shall not, in connection with an application
for a licence, permit or certificate of registration or other record or
return under this Act, make any statement knowing it to be false in
a material particular.
(2) A person who contravenes subsection (1) commits an offence
and shall be liable on conviction to a fine not exceeding ten thousand
penalty units or to imprisonment for a term not exceeding six months,
or to both.
80.A State institution shall, in the exercise of any power under
any other law relating to trade and industry or having an effect on
trade and industry, consult the Agency before exercising that power.
81.(1) The President shall, in the exercise of the President’s
powers under the Control of Goods Act or any other law relating to
trade and industry or having an effect on trade and industry, consult
the Agency before exercising those powers.
(2) The Minister shall, on the advice of the Agency, advise or
make recommendations to the President on any matter under the
Control of Goods Act that requires the President to exercise certain
powers relating to trade and industry.
82.(1) The Minister may, after consultation with the Agency,
by statutory instrument, make regulations for the purposes of this
Act.
(2) Without limiting subsection (1), regulations under subsection
(1) may —
(a) make different provisions in respect of different types of
business enterprises and sectors of trade and industry;
(b) provide for different types of multi-facility economic zones;
(c) provide for the collection of data on industry and the
procedure for such collection;
(d) prescribe the forms required under this Act;
(e) provide for fines not exceeding ten thousand penalty units
or imprisonment for a term not exceeding three years or
both, in relation to offences under those Regulations;
and
Zambia Development Agency [No. 11 of 2006 105
State
institution to
consult
Agency
Exercise of
Presidential
powers
Cap. 421
Regulations False
statements

(f) provide for anything which by this Act is required to be
prescribed.
(3) The Minister may by, statutory instrument amend the
Schedules to the Act.
83.This Act shall bind the Republic.
84.(1) Subject to the Fourth Schedule, the Export Development
Act, the Export Processing Zones Act, the Investment Act and the
Small Enterprises Development Act are hereby repealed.
(2) When the Minister is satisfied that all pending matters have
been disposed of the Privatisation Act shall stand repealed on the
date appointed in accordance with subsection (2) of section one.
85.The Fourth Schedule relating to savings and transitional
provisions shall apply to an appropriate authority and the Agency.
F
IRST SCHEDULE
(Section 2 (1) and (2) )
1. An industry manufacturing arms and ammunition, explosives,
military vehicles and equipment, aircraft and any other military
hardware.
2. An industry manufacturing poisons, narcotics, dangerous
drugs and toxic, hazardous and carcinogenic materials.
3. An industry producing currency, coins and security
documents.
S
ECOND S CHEDULE
(Sections 3, 56 and 57)
(a)
Floriculture
fresh flowers and dried flowers
(b)
Horticulture
fresh and dried vegetables
(c)
Processed foods
wheat flour
Other processed foods
(d)
Beverages and stimulants
(i) tea and tea products
(ii) Coffee and coffee products
(e)
Production and the processing of the following products
in the textile sector
(i) Cotton
(ii) Cotton yarn
106 No. 11 of 2006] Zambia Development Agency
Act to bind
Republic
Repeal Cap.
385
Act No. 7 of
2001,Cap.
386, Act No.
29 of 1996
Savings and
transitional
provisions

(iii)Fabric
(iv) Garments
(f)
Manufacturing of the following engineering products
(i) Copper products
(ii)Iron ore and steel
(iii)Cobalt
(iv)Other engineering products
(g)
Beneficiation of phosphates and any other related
material into fertilizer
(h)
Beneficiation of rock materials into cement
(i)
Production and processing of raw timber into wood
products
(j)
Production and processing of the following products in
the leather sector;
(i) cattle hides
(ii)crust leather
(iii) leather products
(k)
Building of Mini-hydro power stations
(i)
Education and skills training
T
HIRD SCHEDULE
(Section 4 (2) )
PART 1
A
DMINISTRATION OF A GENCY
1.(1) The seal of the Agency shall be such device as may be
determined by the Agency and shall be kept by the Secretary.
(2) The affixing of the seal shall be authenticated by the
Chairperson or the Vice-Chairperson and the Director-General or
any other person authorised in that behalf by a resolution of the
Agency.
(3) Any contract or instrument which, if entered into or executed
by a person not being a body corporate, would not be required to be
under seal, may be entered into or executed without seal on behalf
of the Agency by the Director-General or any other person generally
or specifically authorised by the Agency in that behalf.
(4) Any document purporting to be a document under the seal
of the Agency or issued on behalf of the Agency shall be received in
evidence and shall be deemed to be so executed or issued, as the
case may be, without further proof, unless the contrary is proved.
Zambia Development Agency [No. 11 of 2006 107
Seal of
Agency

2.(1) Subject to this Act, the Board may regulate its own
procedure.
(2) The Board shall meet for the transaction of business at least
once in every three months at such places and times as the
Chairperson may determine.
(3) The Chairperson may, upon giving notice of not less than
fourteen days, call a meeting of the Board and shall call a special
meeting to be held within fourteen days of receipt of a written request
to the Chairperson by at least seven members.
(4) If the urgency of any particular matter does not permit the
giving of such notice as is required under subparagraph (3), a special
meeting may be called by the Chairperson, upon giving a shorter
notice.
(5) Seven members shall form a quorum at any meeting of the
Board.
(6) There shall preside at any meeting of the Board—
(a)the Chairperson; and
(b)in the absence of the Chairperson, the Vice-Chairperson,
and in the absence of the Chairperson and the Vice-
Chairperson, such member as the members present may
elect for the purpose of that meeting.
(7) A decision of the Board on any question shall be by a majority
of the members present and voting at the meeting and in the event of
an equality of votes, the person presiding at the meeting shall have
a casting vote in addition to the deliberative vote.
(8) The Board may invite any person, whose presence is in its
opinion desirable, to attend and to participate in the deliberations of
a meeting of the Board but such person shall have no vote.
(9) The validity of any proceedings, act or decision of the Board
shall not be affected by any vacancy in the membership of the Board
or by any defect in the appointment of any member or by reason
that any person not entitled to do so took part in the proceedings.
3.The members or any member of a committee shall be paid
such allowances as the Board may, with the approval of the Minister,
determine.
4.(1) If any person is present at a meeting of the Board or
any committee of the Board at which any matter is the subject of
consideration and in which matter, the person or person’s spouse is
directly or indirectly interested in a private capacity, is the subject
of consideration the person shall, as soon as is practicable after the
commencement of the meeting, declare such interest and shall not,
108 No. 11 of 2006] Zambia Development Agency
Proceedings
of Board
Allowances
for members
Disclosure of
interest

unless the Board or the committee otherwise directs, take part in
any consideration or discussion of, or vote on, any question touching
that matter.
(2) A declaration of interest made under this paragraph shall be
recorded in the minutes of the meeting at which it is made.
(3) Any person who contravenes the provisions of subparagraph
(1), commits an offence and shall be liable upon conviction to a fine
not exceeding ten thousand penalty units or to imprisonment for a
term not exceeding three months, or to both.
5.(1) A person shall not, without the consent in writing given
by, or on behalf of, the Board, publish or disclose to any person
otherwise than in the course of duties, the contents of any documents,
communication, or information which relates to, and which has come
to that person’s knowledge in the course of, duties under this Act.
(2) Any person who contravenes the provisions of subparagraph
(1), commits an offence and shall be liable upon conviction to a fine
not exceeding ten thousand penalty units or to imprisonment for a
term not exceeding three months, or to both.
6.An action or other proceedings shall not lie against any
member, member of staff, agent or representative of the Agency for
or in respect of any act done or omitted to be done in good faith in
the exercise or purported exercise of the functions of the Agency.
P
ART II
F
INANCIAL PROVISIONS
7.(1) The funds of the Agency shall consist of such moneys
as may—
(a)be appropriated to the Agency by Parliament for the
purposes of the Agency;
(b)be paid to the Agency by way of fees, charges, grants or
donations; and
(c)otherwise vest in or accrue to the Agency.
(2) The Agency may—
(a)accept moneys by way of grants or donations from any
source in Zambia and, subject to the approval of the
Minister, and the minister responsible for finance from
any source outside Zambia;
(b)subject to the approval of the Minister and the Minister
responsible for finance, raise by way of loans or otherwise
such moneys as it may require for the discharge of its
functions; and
Zambia Development Agency [No. 11 of 2006 109
Funds of
Agency Prohibition
of disclosure
of
information

(c)in accordance with regulations made under this Act
charge fees for services provided by the Agency.
(3) There shall be paid from the funds of the Agency—
(a)salaries, loans, gratuities and pensions of the staff of the
Agency and other payments for the recruitment and
retention of the staff;
(b)such reasonable travelling and subsistence allowances
or other allowances for members, members of any
committee of the Board and staff of the Board when
engaged on the business of the Agency and at such rates
as the Board may, with the approval of the Minister,
determine;
(c )such moneys as the Board may pay into the Development
Fund as may be approved by the Board; and
(d)any other expenses incurred by the Agency in the
performance of the Agency’s functions.
(4) The Board may, with the approval of the Minister, invest in
such manner as it thinks fit such of its funds as it does not
immediately require for the discharge of its functions.
8.The financial year of the Agency shall be the period of twelve
months ending on 31st December of each year.
9.(1) The Board shall cause to be kept proper books of
account and other records relating to its accounts.
(2) The accounts of the Agency shall be audited annually by
independent auditors appointed by the Board with the approval of
the Auditor-General.
(3) The auditor’s fees shall be paid by the Agency.
10.(1) As soon as practicable, but not later than ninety days
after the end of the financial year, the Board shall submit to the
Minister a report concerning its activities during the financial year.
(2) The report, referred to in subparagraph (1), shall include
information on the financial affairs of the Agency and there shall be
appended to the report—
(a)an audited balance sheet;
(b)an audited statement of income and expenditure; and
(c)respecting the Fund, such other information as the
Minister may require.
(3) The Minister shall not later than seven days after the first
sitting of the National Assembly next after receipt of the report,
referred to in subparagraph (1), lay the report before the National
Assembly.
110 No. 11 of 2006]Zambia Development Agency
Financial
year
Accounts
Annual
report

FOURTH SCHEDULE
(Section 85)
S
AVINGS AND TRANSITIONAL PROVISIONS
1.(1) From the commencement of this Act an appropriate
authority established under a repealed Act shall exist only for the
purpose of winding up its affairs and disposing of any matter pending
and for no other purpose.
(2) Notwithstanding anything to the contrary contained in the a
repealed Act or in any other written law an appropriate authority
shall have, for the purpose of winding up its affairs, power to do
anything which is necessary or expedient for that purpose or which
is incidental to that purpose, including, but without limiting those
powers, power to enter into and carry out agreements and
arrangements for the transfer of its assets, rights, liabilities and
obligations to the Agency or the Government.
2.(1) On or after the appointed date, there shall be transferred
to, vest in and subsist against the Agency by virtue of this Act and
without further assurance all assets, rights and obligations which
immediately before the appointed date were the assets, rights,
liabilities and obligations of an appropriate authority.
(2) Subject to subparagraph (1), every deed, bond and
agreement, other than an agreement for personnel service, to which
an appropriate authority was a party immediately before the
commencement of this Act or on the appointed date whether or not
of such a nature that rights, liabilities and obligations could be
assigned, shall unless its subject matter or terms make it impossible
that it should have effect as modified, as provided under this
paragraph, have effect as if —
(a)the Agency had been party to it;
(b)for any reference to an appropriate
authority there was substituted, with respect anything
falling to be done on or after the commencement of this
Act, a reference to the Agency; or
(c)for any reference to any officer of an appropriate
authority, not being a party to it and beneficially
interested, there were substituted, as respects anything
falling to be done on or after the commencement of this
Act or appointed date a reference to such officer of the
Agency as the Agency shall designate.
3.(1) Where under this Act, any assets, rights, liabilities and
obligations of an appropriate authority are deemed transferred to
the Agency in respect of which transfer a written law provides for
registration, the Agency shall make an application in writing to the
appropriate registration authority for registration of the transfer.
Zambia Development Agency [No. 11 of 2006 111
Winding up
of affairs of
Appropriate
authorities
Vesting of
assets and
liabilities
Registration
of property
to be
transferred

(2) The registration authority, referred to in subparagraph (1),
shall make such entries in the appropriate register as shall give
effect to the transfer and, where applicable, issue to the transferee
concerned a certificate of title in respect of the property or make
necessary amendments to the register and shall endorse the deeds
relating to the title, right or obligation concerned; and no registration
fees, stamp duty or other duties shall be payable in respect of the
transaction.
4.(1) Without limiting the other provisions of this Act, where
any right, liability or obligation vests in the Agency by virtue of this
Act, the Agency and all other persons shall, as from the appointed
date, have the same rights, powers and remedies and, in particular,
the same rights as to the instituting or defending of legal proceedings
or the making or resisting of applications to any authority for
ascertaining or perfecting that right, liability or obligation as they
would have had if it had at all times been a right, liability or obligation
of the Agency.
(2) Any legal proceedings or applications to any appropriate
authority pending immediately before the appointed date by or
against an appropriate authority in respect of any appropriate
authority may be continued by or against the Agency.
(3) After the commencement of this Act, proceedings in respect
of any right, liability or obligation which was vested in, held, enjoyed,
incurred or suffered by an appropriate authority may be instituted
by or against the Agency.
5.(1) After the commencement of this Act or on an appointed
date, any existing rights shall continue to be held by the person,
business enterprise or investor as if they were granted under this
Act and for the purpose of this Act.
(2) Any business enterprise or investor vested with an existing
right, as specified under subparagraph (1), shall, within one year of
the commencement of this Act, obtain a new licence, permit or
certificate of registration under this Act.
6.(1) Subject to this Act, on or after the appointed date, the
Board shall, on such terms and conditions as it may determine,
appoint as officers of the Agency such employees of, or public
officers from, any appropriate authority as may be necessary for
the performance of the functions of the Agency.
(2) Where a public officer or employee of an appropriate
authority is appointed to the service of the Agency under
subparagraph (1)—
(a)the terms and conditions of service with the Agency shall
not be less favourable than those the officer enjoyed in
the Public Service or in the service of the appropriate
authority; and
112 No. 11 of 2006]Zambia Development Agency
Legal
proceedings
Existing
rights
Engagement
of employees
of
appropriate
authorities

(b)the public officer shall be deemed to have retired under
section thirty-nine of the Public Service Pensions Act.
(3) On or after the appointed date employees of the appropriate
authority who are not engaged by the Agency under subparagraph
(2), shall be retained by the Government and shall—
(a)be redeployed in the service of the Government; or
(b)be retired under section thirty-nine of the Public Service
Pensions Act or in accordance with their contracts of
service.
7. On the commencement of this Act, the staff of the Privatisation
Agency dealing with post privatisation issues shall be engaged by
the Agency in accordance with paragraph 6.
8.(1) On the appointed date monies from the Privatisation
Revenue Account shall be transferred to the Privatisation Trust
Account established under section fifty-two.
(2) On the commencement of this Act, there shall be transferred
to the Development Fund monies in the Micro and Small Enterprises
Development Fund and the Privatisation Revenue Account.
Zambia Development Agency [No. 11 of 2006 113
Engagement
of employees
of
Privatization
Agency
Transfer of
monies
from various
funds

11 4

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