Business Corruption in Zambia
The development of Zambia's business environment is hindered by corruption and a weak institutional framework. Companies encounter
red tape
and rampant bribery in all business operations, including registering the company, obtaining a construction permit, setting up utilities, and paying taxes. As a result of the inefficient and corrupt judicial system, foreign investors' property rights are not accurately protected or enforced. In addition, international trade is impeded by pervasive corruption and crime in Zambia's customs. Companies regularly pay
kickbacks
and bribes in the tendering process for government contracts. Zambia's
Anti-Corruption Commission Act
prohibits corruption, extortion, bribery of a foreign public official, abuse of office and money laundering. Public officials are not required to disclose their assets, and Zambia's legislation does not address facilitation payments. Gifts and hospitality are poorly regulated. Enforcement of Zambia's anti-corruption legislation is weak.
September 2015
GAN Integrity Solutions