Clicks Pharmacy Eyes Zambian Market but Wants 5-year Tax Incentives and Duty Free Imports
Clicks (officially Clicks Group Limited) is a South African healthcare, personal care, and beauty retail chain with a significant presence in South Africa.
It’s a leader in the South African healthcare market, known for its pharmacies and health and beauty retail stores.
It has set its eyes on Zambia.
In its investments proposal submitted to the Zambia Development Agency (ZDA) under Ministry of Commerce and Industry and Ministry of Finance show that Clicks Pharmacies has requested tax exemption for five years and their products to be imported duty free for the same duration.
Eligibility for these tax and other incentives is generally based on meeting certain investment thresholds and investing in specific areas or sectors designated as priorities by the Zambian government.
Their proposal is NOT designated a priority unless the entity was setting up manufacturing in Zambia but this is purely wholesale abd retail trade.
Under the ZDA regulations, investment thresholds vary depending on the type of investor and the sector of investment:
● Local Investor: Minimum investment of US$ 50,000.
●Citizen Owned Company: Minimum investment of US$ 100,000.
●Citizen Empowerment Company: Minimum investment of US$ 150,000.
●Citizen Influenced Company: Minimum investment of US$ 500,000.
●Foreign or any other Investor: Minimum investment of US$ 1,000,000.
●Special Economic Zone, Priority Sector or Rural Area: Minimum investment of US$ 500,000.
What has Zambian benefited from the other retail ventures who after the “tax holiday” have left? What did the workers benefit?
These firms that come here to use Zambia and repatriate profits with no real value dont add value to us as Zambians.
Lets remember “America first” slogan. When will it be Zambians first with such demands? Will we suffer if we dont have “Clicks Pharamcy” in Zambia? No! So why give the much needed taxes which need to support our schools, hospitals, and other social amenities and debt. How will we sustain those services we need if we give away taxes to a firm that we already see we dont need. What we need is better organised SME that need support to spread through out Zambia. No some posh blinged out multinational that will only set up shop in urban areas and dash out when the going gets tough. Enough already….
Ba ZDA stop entertaining non sense. This is no an investment. Day light robbery with no value added to Zambia.
I like the response from ZRA. The policy is clear.
Clicks Pharmacy is here in Botswana, and prices are exorbitantly high.
UPND government, I hope you don’t get bribed to allow another South African Retail shop into Zambia at the expense of the citizens.