Zambia secures $58 million in digital infrastructure investment after tax removal

Zambia has attracted US$58 million in digital infrastructure investment following the removal of import taxes on digital equipment in 2021.

Technology and Science Minister, Felix Mutati, stated that this move had helped the country enhance its connectivity with all eight of its neighboring countries through fiber optic technology.

Speaking during a Ministerial Panel at the 2024 Digital Government Africa Summit, held at Ciela Resort in Chongwe District on Wednesday, Mutati emphasized the impact of the tax reforms on private sector investment in the digital sector.

“Tax on digital equipment was scaring investors and forcing them to hold their investment,” Mutati explained.

He added that since the removal of the tax, the country had attracted substantial private sector interest, totaling US$58 million.

Mutati also stressed the importance of creating a favorable investment climate through incentives to ensure continued growth in the sector.

“The government is promoting incentives, innovation, and investment in order to promote more private sector involvement in the economy,” he said.

The 2024 Digital Government Africa Summit brought together key leaders from the continent. Other panelists included Burundian Minister of Communications, ICT and Technology Leocadie Ndacayisaba, Somalia’s Minister of Communications and Technology Mohammed Ali, South African Deputy Minister of Communications and Digital Technologies Mondli Gungubele, and Executive Governor of Zamfara State in Nigeria, Dauda Lawal.

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