A DIRECT result of government’s strategic decision to eliminate taxes on the importation of digital equipment three years ago has earned Zambia US$58 million in digital infrastructure investments.
This significant achievement was highlighted by Technology and Science Minister Felix Mutati during the opening ceremony of the 2024 Digital Government African Summit, hosted by Zambia.
The summit brought together a delegation of over 30 African ministers to discuss and address the continent’s digital transformation challenges.
On the panel included Burundian Minister of Communications, ICT and Technology Leocadie Ndacayisaba, Somalia Minister of Communications and Technology Mohammed Ali.
And there was also South African Deputy Minister of Communications and Digital Technologies Mondli Gungubele and the executive Governor of Zamfara State in Nigeria Dauda Lawal.
Mutati said the tax reduction has not only boosted foreign investment but also facilitated Zambia’s connectivity with all eight neighbouring countries through fiber optic technology.
The private sector has been the primary driver of these investments, contributing substantially to the nation’s economic growth.
Prior to the tax reform, the high import duties on digital equipment had discouraged foreign investors from entering the Zambian technology market.
Recognising the need for incentives to attract investment, the government implemented a more favourable tax regime.
“Government is promoting incentives, innovation and investment in order to promote more private sector involvement in the economy,” said Mutati.
He encouraged private companies to seize the opportunity and establish their operations in Zambia, highlighting the country’s commitment to digital transformation.
By Buumba Mwitumwa
Kalemba October 2, 2024
