The Zambia–China Cooperation Zone at a Crossroads: What Now?

The Zambia–China Cooperation Zone (ZCCZ), comprising the Chambishi and Lusaka East subsections, is China's first economic and trade co-operation zone in Africa. While it has attracted significant investment, primarily in copper smelting, the project faces critical implementation hurdles including poor surrounding infrastructure, a lack of regulatory frameworks for local content and technology transfer, and labour disputes stemming from differing work cultures. The document argues that for the ZCCZ to succeed, both Chinese investors and Zambian authorities must increase transparency and develop a cohesive industrial strategy that integrates local entrepreneurs.

• The ZCCZ consists of two main areas: the Chambishi zone, focused on non-ferrous metals metallurgy and by-products to supply local and regional markets, and the Lusaka East zone, designed as an international commercial hub for light industry and logistics.
• As of July 2011, the Chambishi ZCCZ was only partially operational with 14 investors and accumulated investment near $1 billion, though many of these are subsidiaries or affiliates of the developer, China Non-Ferrous Metal Mining Group Company (CNMC).
• Investors in the ZCCZ benefit from significant tax incentives under the Multi-Facility Economic Zones (MFEZ) Act, including five years of 0% corporate tax and 0% import duty on capital goods and raw materials for five years.
• A primary implementation barrier is the poor state of the national road and railway networks surrounding the zone, which hinders the supply of materials and the distribution of products to markets.
• The ZCCZ has failed to create significant domestic spillovers because of a high investment threshold of $500,000 and a lack of regulations requiring local content, leading Chinese investors to rely on their own supply chains.
• Labour tensions have emerged due to a gap between Chinese labour practices—characterized by longer hours and lower safety standards—and local work ethics based on western standards.
• The ZCCZ process is criticized for being secretive and elitist, which has led the general public to perceive the zone as a 'Chinese enclave'.

APA

Alves, A. C. (2011). The Zambia–China Cooperation Zone at a Crossroads: What Now? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2011/12/Policy-Briefing-41.pdf

Chicago

Alves, Ana Cristina. The Zambia–China Cooperation Zone at a Crossroads: What Now? South African Institute of International Affairs, 2011. https://saiia.org.za/wp-content/uploads/2011/12/Policy-Briefing-41.pdf.

Wikipedia

{{cite report |last1=Alves |first1=Ana Cristina |title=The Zambia–China Cooperation Zone at a Crossroads: What Now? |publisher=South African Institute of International Affairs |date=December 2011 |url=https://saiia.org.za/wp-content/uploads/2011/12/Policy-Briefing-41.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alves2011zambiachina, author = {Alves, Ana Cristina}, title = {{The Zambia–China Cooperation Zone at a Crossroads: What Now?}}, institution = {South African Institute of International Affairs}, year = {2011}, month = dec, url = {https://saiia.org.za/wp-content/uploads/2011/12/Policy-Briefing-41.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }