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Country Commercial Guides for FY 2000: Zambia Report prepared by U.S. Embassy Lusaka, released July 1999   Note*

CHAPTER IV: Marketing U.S. Products and Services

Distribution And Sales: Distribution and sales of goods and services are mainly through the private sector. Except for ZCCM and the public utilities, remaining parastatal companies are marginal and should be privatized or closed over the next couple of years. There are both formal and informal distribution channels, large and small, through which goods are sold to the consumer. Wholesale trade is concentrated in cities and large towns, with retail outlets and individual vendors operate in cities, towns, and remote areas throughout the country.

Agents And Distributors; Finding A Partner: Over fifty Zambian companies are significant agents or distributors for U.S. companies, and there is strong interest in acting as agents or distributors for U.S. products. Financing local inventories is often a problem, especially given current high interest rates. Only a few companies have the sales or service networks that meet standards many U.S. companies desire. The Embassy has a limited capacity to conduct Agent/Distributor Searches (ADS) when requested through a U.S. Department of Commerce district office. The local offices of international accounting firms and business consultants can also assist in finding a qualified local business partner.

Franchising: Franchise business arrangements in Zambia are based on British standard "Law of Contract." A Distributor/Agent type of franchising is most common in Zambia, while a Business-Format type of franchising is beginning to develop. There is increased interest in franchising in Zambia generated by publicity and exposure to international franchise trade events in the U.S. Financing remains a major obstacle to franchise business in Zambia.

Direct Marketing: There are no restrictions on foreign firms directly marketing products in Zambia.

Joint Ventures/Licensing: There is strong interest in the Zambian business community in joint ventures and licensing agreements. These arrangements are often expected to help overcome domestic shortages of capital, technology or expertise.

Steps To Establishing An Office: The legal requirements for establishing an office in Zambia are fairly easy. However, attractive office accommodations are not always readily available. A prospective company must register with the Registrar of Companies at the Ministry of Commerce, Trade and Industry by submitting the company charter and a registration fee. This may be done by an individual, a law firm, or by a business consultant. The minimum nominal capital required to register a limited company is 500,000 Zambian Kwacha (ZK), equivalent to approximately 200 U.S. dollars. A registration fee of 2.5% of nominal capital is charged, plus ZK 31,000 (about $13). After submission of the company charter and payment of registration fees, a Certificate of Incorporation is generally issued within 24 hours.

Foreign companies that plan to invest in Zambia should obtain an investment license from the Zambian Investment Center (ZIC) in order to take advantage of ZIC advocacy and services. The procedure is simple and licenses are approved or disapproved within 30 days. The Investment Center may be contacted at the following address:

Zambia Investment Center
4th & 5th Floors, Ndeke House, Longacres
PO Box 34580, Lusaka, Zambia
Tel: (260) 1-25-213; Fax: (260) 1-25-2150
Contact: Peter Lintini, Director, Promotions

Selling Factors/Techniques: Selling is normally done on a cash basis, due to scarce and expensive credit. Companies that can offer credit, or an extended payment schedule, have an edge even if their prices are higher. Cost, reliability, simplicity, and durability are also important factors in marketing products in Zambia. After sales service is an important factor for technical products.

Advertising And Trade Promotion: Electronic Media: Zambia has one national television station and four radio stations, three of which have a limited audience. Television reaches roughly 10 percent of households. Radio coverage is broad and covers the country on both English and local language stations. The television and most powerful radio stations are run by:

Zambia National Broadcasting Company (ZNBC)
PO Box 50015, Lusaka, Zambia
Tel: (260) 1-25-1961; Fax: (260) 1-24-6489

Radio Phoenix
P/B E 702, Lusaka, Zambia
Tel: (260) 1-22-2403 Fax: (260) 1-22-1655
Email: rphoenix@zamnet.zm

Print media: There are two government owned daily newspapers, the Times of Zambia and the Zambia Daily Mail. The major independent daily is the Post newspaper. The Daily Mail also publishes a business weekly, the Financial Mail. Two monthly business publications are the Zambia National Farmers Union "Zambian Farmer," and the Zambia Association of Chambers of Commerce and Industry (ZACCI) "Profit Magazine." The two latter publications are strong voices for private sector business in Zambia. The following are contact addresses for the major print media:

Times of Zambia, PO Box 70089, Ndola, Zambia
Tel: (260) 2-61-1001/2/3/4 Fax: (260) 2-614469

Zambia Daily Mail, PO Box 31412, Lusaka, Zambia
Tel: (260) 1-22-7793/8; Fax: (260) 1-22-5881

Post Newspaper, P/Bag E352, Lusaka, Zambia
Tel: (260) 1-22-5455; Fax: (260) 1-22-5452

Profit Magazine, Associated Printers, PO Box 32104, Lusaka, Zambia
Tel: (260) 1-25-2369; Fax: (260) 1-25-2483
Email: zacci@zamnet.zm

Zambian Farmer, c/o Zambia Farmers Union, PO Box 30395, Lusaka, Zambia

The U.S. advertising firm Young & Rubicam has offices in Zambia and may be contacted at the following address:

Young & Rubicam (Zambia) Limited
PO Box 32497, Lusaka, Zambia
Tel: (260) 1-22-8489; Fax: (260) 1-22-5173

Pricing Product: As Zambia's economy has become more open, pricing has become more competitive. International and domestic transportation costs can be a considerable factor in selling goods. Credit is scarce and expensive, making it a major consideration in a purchasing decision.

Sales Service/Customer Support: After sale service and customer support are important factors, particularly for technical products. In general, after sales service and support are not good, but are strongly prized by customers.

Selling To The Government: The government of Zambia purchases directly from suppliers for goods worth ZK 500,000 (USD 200) and below. Purchases exceeding ZK 500,000, including capital expenditures from external assistance, go through the National Tender Board.

Protection From IPR Infringement: Trademark protection is adequate. There are fines for revealing business proprietary information, but the fines are not large enough to penalize disclosure adequately. Copyright protection is limited and does not cover computer applications.

Zambia's patent laws conform to the requirements of the Paris Convention for the protection of industrial property, of which Zambia is a signatory. It takes a minimum of 4 months to patent an item or process. Duplicative searches are not done, but patent awards may be appealed on grounds of infringement.

Zambia is signatory to a number of international agreements on patents and intellectual property. These include: the World Intellectual Property Organization (WIPO); Paris Union; Berne Union; African Regional Industrial Property Organization (ARIPO); and Universal Copyright Convention (UNESCO). National laws are mostly adequate in protecting intellectual property rights, and there has been effective recent enforcement against pirated musical and video recordings. Small scale trademark infringement occurs for some packaged goods through copied or deceptive packaging.

Need For A Local Attorney: An attorney is not needed for the basics of registering and setting up a company, but many routine problems that may arise are best handled by a local attorney familiar with Zambian law.