Tax proposal on the reinsurance premiums ceded by Zambia abroad

Zambia intends to apply a 5% tax on reinsurance premiums transferred abroad. The state could thus benefit from an annual income amounting to around 40 million ZMK (3 million USD).

The goal is twofold: to retain the maximum premiums on the local market and to reduce the outflow of foreign currency.

In 2016, 37% of the premiums underwritten on the Zambian insurance market - that is approximately 912 million ZMK (75 million USD) - were transferred abroad.