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

The Zambia–China Cooperation Zone (ZCCZ), comprising the Chambishi and Lusaka East subsections, was established to foster industrialization and trade between China and Zambia. While it has attracted significant Chinese investment, particularly in copper smelting, the project faces critical implementation hurdles. These include poor regional infrastructure, a lack of regulatory frameworks to ensure local business integration, and labor disputes stemming from divergent work cultures. The report recommends greater transparency, a more flexible approach from Chinese investors, and a cohesive Zambian industrial policy to move the zone beyond resource extraction and low-skilled employment.

• The Zambia–China Cooperation Zone (ZCCZ) was established as the first Chinese economic and trade co-operation zone in Africa, serving as Zambia's first Multi-Facility Economic Zone (MFEZ). It was officially inaugurated in February 2007 by President Hu Jintao and President Levy Mwanawasa, with a second subsection, Lusaka East, inaugurated in January 2009.
• The ZCCZ consists of two primary subsections with different strategic goals: the Chambishi ZCCZ focuses on non-ferrous metals metallurgy (copper and cobalt) and related by-products to supply local and regional markets, while the Lusaka East ZCCZ is designed as an international commercial hub for light industry, logistics, and real estate.
• Investment incentives within the ZCCZ include a 0% corporate tax rate for the first five years of profit, 0% import duty on capital goods, machinery, and raw materials for five years, a five-year exemption from tax on dividends, and the deferment of VAT on machinery and equipment imports.
• As of July 2011, the Chambishi ZCCZ was only partially operational, with 14 investors (mostly Chinese) and accumulated investment nearing $1 billion. The copper smelter is the largest entity, employing nearly half of the zone's 6,658 workers, 934 of whom are Chinese.
• The ZCCZ faces significant implementation challenges, including poor surrounding infrastructure in the Copperbelt Province that hinders product distribution, and a lack of a regulatory framework to ensure technology transfer and the participation of local entrepreneurs, who are often deterred by a $500,000 investment threshold.
• Labour relations within the ZCCZ are strained due to differences in work ethics and business culture. Conflicts have arisen from a gap between Chinese labour practices—characterized by lower safety standards, lower salaries, and longer hours—and local work ethics based on western standards.
• The ZCCZ process has been criticized for being secretive and elitist, with negotiations primarily between the presidency and the Chinese government. This has led to public misapprehension and the perception of 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} }