Country: Zambia
Themes: Strengthening the Business Enabling Environment, Expanding Access to Competitive Contestable Markets
Cross Cutting Themes: Climate, Digital
The Challenge
Zambia is one of the 26 African nations that have signed the WTO Investment Facilitation for Development (IFA) Agreement. Following the conclusion of IFA text negotiations in July 2023, the agreement covers several key areas: (i) enhancing transparency and predictability in investment measures, (ii) streamlining and expediting investment-related administrative procedures, and (iii) fostering stronger public-private dialogue. To prepare for the implementation of the IFA, countries must conduct self-assessments to identify gaps, reform priorities, and technical assistance needs. This process is particularly important for developing and least developed countries (LDCs), enabling them to leverage the special and differential treatment provisions under the IFA.
Mission
With the support of the C-JET grant, a needs assessment is being conducted to prepare Zambia for its accession to the WTO IFA, with a focus on addressing barriers to entry in high-employment value chains within the agriculture sector.
Substantial groundwork has already been completed to lay the foundation for program implementation. This initiative is expected to make a significant contribution to strengthening Zambia¡¯s business environment by utilizing the WTO IFA framework to drive reforms in the investment climate. As the project progresses, concrete outcomes are anticipated, particularly in relation to the C-JET pillars of Strengthening the Business Environment and Expanding Access to Markets. Additionally, the team aims to issue at least one recommendation related to climate action.
Ultimately, the project will not only ensure WTO compliance but also enhance regulatory transparency through Zambia's ongoing efforts to make regulatory information publicly available online. Moreover, empirical research indicates that eliminating regulatory restrictions and entry barriers can have a positive impact on small and medium-sized enterprises (SMEs) (Begazo and Nyman, 2016). By improving investment facilitation frameworks, Zambia will be better positioned to capitalize on new foreign direct investment (FDI) opportunities, particularly within the expanding services sectors. This is especially relevant within the broader context of the African Continental Free Trade Area (AfCFTA) and the global transition to clean energy.