As Zambia continues on a path toward industrial growth, Multi-Facility Economic Zones (MFEZs) have emerged as one of the most effective tools for attracting investment, driving trade, and creating jobs.

But what exactly is an MFEZ—and why should investors, entrepreneurs, and developers pay close attention, especially to Kalumbila Town, one of Zambia’s most promising new economic destinations?

A Multi-Facility Economic Zone (MFEZ) is a specially designated area designed to drive industrial and commercial development. It’s simple enough – an MFEZ is a zone in a city or town that is designated for investment. Equipped with infrastructure, favorable regulations, and targeted incentives, companies can set up operations quickly and cost-effectively.

MFEZs serve both export- and domestic-oriented businesses and offer a streamlined regulatory environment to ease doing business. Key features often include:

• Modern infrastructure: roads, power, water, waste management, telecommunications, and security
• Regulatory flexibility: reduced licensing turnaround times, simplified approvals
• Financial propositions: including tax incentives and duty exemptions

MFEZs are not just about physical space. They’re about economic strategy, designed to unlock industrial growth, reduce production costs, promote value addition, and attract both local and foreign investment.

Zambia’s MFEZ vision

Zambia introduced the MFEZ policy in 2006 under the Zambia Development Agency (ZDA) Act No. 11 as a response to the need for industrialization, job creation, and economic diversification. Today, seven zones across the country have been declared operational. Kalumbila Town is an interesting MFEZ because it’s not just a local area that has been designated as an MFEZ but the entire town.

The idea is to create well-supported industrial ecosystems that stimulate surrounding sectors—agriculture, services, logistics, and construction—while providing long-term employment and infrastructure development.

Kalumbila: Where the MFEZ vision is coming to life

Among Zambia’s declared MFEZs, Kalumbila Town stands out for its combination of vision, planning, and readiness. Kalumbila Town has evolved into a model of structured urban growth and built with scalability in mind. With its MFEZ status, the town is now transitioning from a mining hub to a multi-sector industrial and commercial centre.

But what positions Kalumbila Town as an MFEZ model?

Purpose-built infrastructure
“As you get into Kalumbila Town – from the airport or by road – you see how the town has been designed from the ground up. For a small town, it has wide roads, modern utility systems, and well-organized urban layout that creates a solid foundation for MFEZ growth,” notes Kalumbila Town Development Corporation (KTDC) manager Michael Kabungo.

Investors benefit from plug-and-play infrastructure that reduces setup time.

Strategic location
Located in North-Western Zambia near the border with Angola and the DRC, the Kalumbila Town MFEZ sits along vital regional trade corridors. This makes it a strategic location for export-oriented industries and logistics services looking to tap into Central and Southern Africa. It is a logistical dream to have access to regional, domestic and international trade routes.

Government and private sector alignment
The development of the town MFEZ has been a joint effort between the government, private sector partners, and local communities. The Zambia Development Agency (ZDA) ensures institutional support, while private stakeholders bring innovation and operational experience. This private and public sector partnership is a firm foundation for long-term growth and sustainability.

Ready workforce and growing community
With its emphasis on quality of life, education, and healthcare, Kalumbila attracts and retains skilled workers. Investors benefit from a stable, local workforce and a town that supports long-term employee wellbeing.

Access to Attractive Investment Incentives
Kalumbila Town MFEZ offers access to a powerful suite of ZDA-approved incentives, including:

Fiscal Incentives

• 0% import duty on capital equipment and machinery for five years
• 0% corporate tax on export profits and dividends for 10 years
• Reduced corporate tax in years 11–15
• Sector-specific tax relief, such as for corn starch production

These benefits are available to both local (minimum investment of $50,000) and foreign investors (minimum $500,000).

Kalumbila Town MFEZ invitation to investors
For businesses looking to manufacture, process, assemble, or distribute goods in Zambia—and beyond—Kalumbila Town offers a unique value proposition:

• A clean, structured town
• A government-backed MFEZ framework
• A rapidly growing regional market
• A community-oriented approach to development
  
  

Looking ahead: Kalumbila Town as a model for MFFEZ innovation and investment

As Zambia continues to expand its network of MFEZs, Kalumbila Town stands as an emerging flagship example of what’s possible when thoughtful planning, strategic policy, and economic ambition come together.

It’s not just about attracting capital Kalumbila Town is about creating long-term value for businesses, workers, and communities alike. If you’re looking for a location where your investment can grow alongside the nation, Kalumbila’s MFEZ is ready for you. The Happiest Town in Africa is waiting for you.