Economy of Zambia
Template:Short description Template:Infobox economy
Zambia is a developing country, and it achieved middle-income status in 2011. Through the first decade of the 21st century, the economy of Zambia was one of the fastest-growing economies in Africa, and its capital, Lusaka, the fastest-growing city in the Southern African Development Community (SADC).<ref name="SADC">Template:Cite web</ref> Zambia's economic performance has stalled in recent years due to declining copper prices, significant fiscal deficits, and energy shortages.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The economy has been reliant on mineral extraction since the 1920s, in particular copper.<ref>Template:Citation</ref><ref name="EZ">Template:Citation</ref>
Upon achieving independence, Zambia had a higher GDP per capita than almost all sub-Saharan African countries.<ref name="EZ" /> Over the subsequent decades, Zambia's economy contracted, in part due to declining copper prices.<ref name="EZ" /> Since the 2000s, Zambia's economy has been growing.<ref name="EZ" /> As of 2019, Zambia's GDP per capita (current international dollars) stands at $1,305.00.
Zambia is one of Sub-Saharan Africa's most urbanized countries. About one-half of the country's 16 million people are concentrated in a few urban zones strung along the major transportation corridors, while rural areas are under-populated.
Copper and cobalt are among Zambia's main exports, while non-traditional exports include cotton, coffee, fresh flowers, burley tobacco, gemstones and maize (corn). Zambia is eligible to export duty-free goods to the United States under the African Growth and Opportunity Act (AGOA); the Act allows eligible countries from sub-Saharan Africa to export over 6,400 goods to the United States.<ref name="Overview">Template:Cite web</ref>
Copper output has increased steadily since 2004, due to higher copper prices and the opening of new mines. The maize harvest was again good in 2005, helping boost GDP and agricultural exports. Cooperation continues with international bodies on programs to reduce poverty, including a new lending arrangement with the IMF in the second quarter of 2004.<ref name="Overview" />
History
[edit]Economic policies soon after independence (1964–1967)
[edit]
The British South Africa Company (BSAC, originally set up by the British imperialist Cecil Rhodes) retained commercial assets and mineral rights that it acquired from a concession signed with the Litunga of Barotseland in 1892 (the Lochner Concession). Only by threatening to expropriate the BSAC, on the eve of independence, did the incoming Zambian government manage to get the BSAC to relinquish the mineral rights. The Federation's government assigned roles to each of the three territories: Southern Rhodesia was assigned the responsibility of providing managerial and administrative skills; Northern Rhodesia provided copper revenues; and Nyasaland provided the Black labour.
After independence, Zambia instituted a program of national development plans, under the direction of a National Commission for Development Planning: the Transitional Development Plan (1964–66) was followed by the First National Development Plan (1966–71). These two plans, which provided for major investment in infrastructure and manufacturing, were largely implemented and were generally successful. This was not true for subsequent plans.
The Mulungushi Economic Reforms (1968)
[edit]A major switch in the structure of Zambia's economy came with the Mulungushi Reforms of April 1968: the government declared its intention to acquire equity holdings (usually 51% or more) in a number of key foreign-owned firms, to be controlled by a parastatal conglomerate named the Industrial Development Corporation (INDECO).<ref>Template:Cite book</ref> By January 1970, Zambia had acquired majority holding in the Zambian operations of the two major foreign mining corporations, the Anglo American Corporation and the Rhodesia Selection Trust (RST); the two became the Nchanga Consolidated Copper Mines (NCCM) and Roan Consolidated Mines (RCM), respectively. The Zambian government then created a new parastatal body, the Mining Development Corporation (MINDECO). The Finance and Development Corporation (FINDECO) allowed the Zambian government to gain control of insurance companies and building societies. However, foreign-owned banks (such as Barclays, Standard Chartered and Grindlays) successfully resisted takeover. In 1971, INDECO, MINDECO, and FINDECO were brought together under an omnibus parastatal, the Zambia Industrial and Mining Corporation (ZIMCO), to create one of the largest companies in sub-Saharan Africa, with the country's president, Kenneth Kaunda as chairman of the board. The management contracts under which day-to-day operations of the mines had been carried out by Anglo American and RST were ended in 1973. In 1982 NCCM and RCM were merged into the giant Zambia Consolidated Copper Mines Ltd (ZCCM).
In 1973 a massive increase in the price of oil was followed by a slump in copper prices in 1975, resulting in a diminution of export earnings. In 1973 the price of copper accounted for 95% of all export earnings; this halved in value on the world market in 1975. By 1976 Zambia had a balance-of-payments crisis, and rapidly became massively indebted to the International Monetary Fund (IMF). The Third National Development Plan (1978–83) had to be abandoned as crisis management replaced long-term planning.
By the mid-1980s Zambia was one of the most indebted nations in the world, relative to its gross domestic product (GDP). The IMF was insisting that the Zambian government should introduce programs aimed at stabilizing the economy and restructuring it to reduce dependence on copper. The proposed measures included: the ending of price controls; devaluation of the kwacha (Zambia's currency); cut-backs in government expenditure; cancellation of subsidies on food and fertilizer; and increased prices for farm produce. Kaunda's removal of food subsidies caused massive increases in the prices of basic foodstuffs; the country's urbanized population rioted in protest. In desperation, Kaunda broke with the IMF in May 1987 and introduced a New Economic Recovery Programme in 1988. However, this did not help him and he eventually moved toward a new understanding with the IMF in 1989. In 1990 Kaunda was forced to make a major policy volteface: he announced the intention to partially privatize the parastatals. Time, however, was running out for him. Like many African independence leaders Kaunda tried to hang on to power but unlike many he called multiparty elections and lost them to the Movement for Multiparty Democracy (MMD) and abided by the results. Kaunda left office with the inauguration of MMD leader Frederick Chiluba as president on 2 November 1991.
Chiluba's economic reforms (1991–2000)
[edit]Zambia's Economic System of Government is Unitary because of that the Frederick Chiluba government (1991–2001), which came to power after democratic multi-party elections in November 1991, was committed to extensive economic reform.<ref>Template:Cite book</ref>Template:Page needed
Zambia's economic transformation into a free market system began toward the end of 1991 following a change of government. To tackle a serious economic crisis, the government agreed to introduce substantial economic reforms to secure much-needed loans from the World Bank and IMF.<ref name="CR">Template:Cite web</ref>
One of the greatest challenges was the privatization of the country's copper mines, Zambia's prime export earner. The government privatised many state industries, and maintained positive real interest rates. Exchange controls were eliminated and free market principles endorsed. It remains to be seen whether the Mwanawasa government will follow a similar path of implementing economic reform and undertaking further privatization. Zambia has yet to address issues such as reducing the size of the public sector, which still represents 44% of total formal employment, and improving Zambia's social sector delivery systems.
After the government privatized the giant parastatal mining company Zambian Consolidated Copper Mines (ZCCM), donors resumed balance-of-payment support. The final transfer of ZCCM's assets occurred on March 31, 2000. Although balance-of-payment payments are not the answer to Zambia's long-term debt problems, it will in the short term provide the government some breathing room to implement further economic reforms. The government has, however, spent much of its foreign exchange reserves to intervene in the exchange rate mechanism. To continue to do so, however, would jeopardize Zambia's debt relief. Zambia qualified for HIPC debt relief in 2000, contingent upon the country meeting certain performance criteria, and this should offer a long-term solution to Zambia's debt situation.
2001–2010
[edit]On 2 January 2002, MMD's Levy Mwanawasa won the presidential election which many observers claimed had actually been won by the opposition.<ref>Template:Cite web</ref> In January 2003, the Zambian Government informed the International Monetary Fund and World Bank that it wished to renegotiate some of the agreed performance criteria calling for privatization of the Zambia National Commercial Bank and the national telephone and electricity utilities.
Foreign investors liked Mwanawasa, owing partly to his anti-corruption drive. During his presidency, Zambia received foreign investment.<ref name="cabbage">Zambia: Why Africa needs more cabbage The Economist</ref> The main driver of economic growth was minerals. Mwanawasa's policies helped to lower inflation to single digits in 2006, a record the country had not seen in over 25 years, and spread some benefits to the poor.<ref name="cabbage" /><ref name=":5" /> Tourists and white farmers diverted from Zimbabwe and helped the Zambian economy.<ref name="cabbage" /> The policies turned the Zambian town of Livingstone, near Victoria Falls, into a tourist hub.<ref name="telegraph">Levy Mwanawasa The Telegraph</ref> Zambia received a relatively large amount of aid and debt relief because of liberalisation and Mwanawasa's efforts.<ref name="cabbage" /> Overall, economic growth increased to about 6% per year.<ref name="cabbage" />
After Mwanawasa suffered a stroke while attending an African Union summit in Egypt on 29 June 2008, Rupiah Banda became acting president and subsequently President.<ref name="VOA">James Butty, "Zambian President Has Had a History of Hypertension, Says Information Minister", VOA News, 2 July 2008.</ref> With divisions within the MMD, Banda promised to "unite the party and the entire nation" and to "continue implementing [Mwanawasa's] programs".<ref name="IOL20080905">Template:Cite news</ref> After taking office, however, Banda dismantled much of the anti-corruption effort put into place by his predecessor, Mwanawasa.<ref>Template:Cite news</ref> This, compounded with the effects of the Great Recession, led to a sustained period of increased inflation.<ref name=":5" />
2011–2020
[edit]In September 2011, the social democrat, Michael Sata led the Patriotic Front (PF) to victory with a vow to improve conditions for their Zambian employees.<ref>"Zambia Swears in Opposition Leader as New President", VOA News, 25 September 2011.</ref> Though known to previously oppose Chinese investment, he declared his change in perspective prior to his election victory.<ref>Shapi Shacinda, "Sata warms to Chinese investment in Zambia", Reuters, 8 September 2008.</ref> Sata died on 28 October 2014 and was succeeded by Edgar Lungu. The period, saw an infrastructure boom with the development of the Kafue Gorge Lower Power Station, two multi-purpose stadiums, Levy Mwanawasa Stadium and National Heroes Stadium, expansions of the Kenneth Kaunda International Airport, the Harry Mwanga Nkumbula International Airport and the Simon Mwansa Kapwepwe International Airport, and the Pave Zambia 2000 project<ref>Template:Cite web</ref> intended to create and repair major urban roads countrywide.
Unfortunately this came at a huge debt cost that slowed the economy and compounded by corruption and the COVID-19 pandemic resulted in weak GDP growth and a recession in 2019 and 2020 respectively. Zambia's GDP had shrunk from US$29 billion to US$19 billion and its debt grew from 16% to 140% of GDP from 2010 through 2020.<ref>Template:Cite web</ref><ref name=":5" /> In November 2020, Zambia became Africa's first coronavirus-era default when it opted to bow out of a US$42.5 million eurobond repayment.<ref>Template:Cite web</ref>
From 2021
[edit]In August 2021, the Zambian populace ushered in a new government with a promise for jobs growth.<ref>Template:Cite web</ref> Hakainde Hichilema's United Party for National Development (UPND) government delivered an ambitious budget that included an increase in the Constituency Development Fund (CDF) from ZMW 1.6 million (US$91 thousand) to ZMW 25.7 million (US$1.5 million) for each of Zambia's 156 constituencies and its decentralization in release to these constituencies.<ref>Template:Cite web</ref> The expectation is that this will generate jobs growth in addition to the government's targeted employment of 30,000 new teachers<ref>Template:Cite web</ref> and 11,200 health workers.<ref>Template:Cite web</ref> In mid July 2022, the government recruited 30,496 Teachers.<ref>Template:Cite web</ref> At the end of July 2022, 11,276 health workers, being doctors, nurses and ancillary staff such as drivers were recruited by the government.<ref>Template:Cite web</ref>
With a push for Zambia to be able to produce 3 million tonnes of Copper per annum within the next 10 years, the government reintroduced the deductibility of mineral royalty for corporate income tax assessment purposes.<ref>Template:Cite web</ref><ref name=":02">Template:Cite web</ref><ref name=":13">Template:Cite web</ref><ref>Template:Cite web</ref> The results of these policy changes are yet to be seen.
At the 2022 IMF-World Bank Spring Meetings, the World Bank announced it would fund projects worth US$560 million in Zambia in 2022.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In July 2022, to address its debt challenges, the Zambian government engaged creditors of undisbursed loans to facilitate the formal cancellation of loans estimated to be about US$2.0 billion. Projects that were already ongoing would now be financed through government revenues.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In early August 2022, the Zambia Development Agency, a quasi-government institution under the Ministry of Commerce, Trade and Industry reported that it had recorded numerous investment pledges worth US$3.8 billion in the first half to 2022 targeting the agriculture, tourism, construction and mining sectors with a potential job market of 19,000.<ref>Template:Cite web</ref>
In October 2021, to spur economic development, Zambia took measures to promote local development in its ambitious 2022 national budget. The Government announced an unprecedented constituency development fund (CDF) increment from ZMW 1.6 million (U$91,000) to ZMW 25.7 million (U$1.5million) for each constituency taking the total development fund injection into the local communities from ZMW 250 million (U$14.2 million) to ZMW 4 billion (U$228.4 million).<ref name=":20">Template:Cite web</ref><ref>Template:Cite web</ref> After winning a crucial Staff-Level IMF Deal, in early December 2021, Zambia went on to cut fuel subsidies later that month as a key step in seeking U$1.4 billion from the IMF.<ref>Template:Cite web</ref>
At the end of July 2022, the Official Creditor Committee co-chaired by China and France, and vice chaired by South Africa agreed to provide the financing assurances under the G20 Common Framework for debt treatment that Zambia had been waiting for to secure final approval from the International Monetary Fund for a US$1.4 billion bailout under the Extended Credit Facility.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref name=":19">Template:Cite web</ref> In early August 2022, at the symposium on the midyear budget and economic performance and the 2023 to 2025 medium term budget plan, Zambia's Minister of Finance and National Planning, Dr. Situmbeko Musokotwane said the IMF board was expected to meet at the end of August 2022 to approve the loan programme.<ref>Template:Cite web</ref>
On 31 August 2022, the International Monetary Fund (IMF) board approved a US$1.3 billion extended credit facility to help Zambia restore fiscal stability.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In June 2023, Zambia reached an agreement in principle to restructure US$6.3 billion of debt with bilateral lenders.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> In October 2023, Zambia agreed a memorandum of understanding (MoU) with its bilateral creditors on restructuring about $6.3 billion of debt. Following the signing of the MoU, the terms would be implemented through bilateral agreements with each member of the OCC (Official Creditor Committee).<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In March 2024, Zambia struck an 76.5 billion kwacha (US$3.0 billion) restructuring deal with bondholders.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> The agreement included important concessions from the Bondholders, while providing the required debt relief to the Government.<ref name="RE">Template:Cite web</ref> Under the agreement, Bondholders would forego approximately 21.4 billion kwacha (US$840 million) of their claims, and provide cash flow relief of approximately 63.8 billion kwacha (US$2.5 billion) during the IMF programme period.<ref name="RE" /><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Public-Private Dialogue Forum (PPDF)
[edit]In April 2022, Zambia launched a mechanism aimed at unlocking the potential of the private sector as a driver of economic development and job creation. The Public-Private Dialogue Forum (PPDF) is meant to act as a structured mechanism for interactions between the public and the private sector in tackling bottlenecks that have hindered the growth of the private sector.<ref>Template:Cite web</ref>
European Union (EU)–Zambia Economic Forum
[edit]In May 2022, the inaugural European Union (EU)-Zambia Economic Forum was launched in Lusaka by President Hakainde Hichilema under the theme ‘Economic transformation through green growth’.<ref name=":14">Template:Cite web</ref> It was a high-level event that brought together entrepreneurs, experts, financial institutions, innovators, and policy decision-makers from Zambia, the EU and representatives of its 27 member states.<ref name=":14" /><ref>Template:Cite web</ref> Additional special guests included the EU Commissioner for Agriculture Janusz Wojciechowski and the commissioner for Trade and Industry of the African Union Commission, Albert M. Muchanga.<ref>Template:Cite web</ref> The forum was launched as a platform with a view to promoting employment, value addition and increased trade through business-to-business (B2B) and business-to-government (B2G) collaboration and economic synergies for EU and Zambian businesses.<ref name=":14" />
UK–Zambia Green Growth Compact
[edit]In November 2021, the Zambian and British government signed the UK-Zambia Green Growth Compact, an agreement expected to boost the United Kingdom's investment into Zambia by £ 1.0 billion (US$1.26 billion) with a focus on job creation and green energy production.<ref>Template:Cite web</ref> In May 2022, the British High Commissioner to Zambia Nicholas Woolley, indicated that the British government had set aside the £ 1.0 billion to be spent over the next 5 years with £ 100.0 million (US$126.0 million) targeted for funding Small Medium Entrepreneurs (SMEs) and £ 500.0 million (US$629.9 million) for investment in renewable energy.<ref>Template:Cite web</ref>
World Bank Support
[edit]In July 2022, the World Bank approved US$155.0 million in International Development Assistance for Social Cash Transfer to mitigate the high cost of living pressures in Zambia and a further US$27.0 million credit facility to support the government's development programs.<ref>Template:Cite web</ref>
In July 2022, the World Bank approved a further US$665.0 million to fund projects in Zambia to spur economic recovery and growth and also lighten the debt burden.<ref>Template:Cite web</ref> Through 2032, the World Bank plans to support Zambia with new financing of over US$2.0 billion in the form of concessional loans.<ref name=":19" />
In late October 2022, the World Bank approved US$275.0 million concessional loan targeted at fiscal stabilization and accelerated economic programs. Financing was provided by the World Bank's International Development Association (IDA).<ref>Template:Cite web</ref>
African Export-Import Bank (Afreximbank) Support
[edit]In July 2022, the African Export-Import Bank President Benedict Oramah, whilst in Lusaka Zambia, announced that the bank would put up an investment of about US$250 million for Zambia's first-ever Battery Electric Vehicle (BEV) manufacturing plant.<ref name=":17">Template:Cite web</ref>
EAC-SADC-COMESA Free Trade Area
[edit]In July 2022, during the 4th Mid-Year Coordination Meeting of the African Union, Regional Economic Communities and Regional Mechanisms in Lusaka, Zambia, the three regional blocs, East African Community (EAC), Southern African Development Community (SADC), and Common Market for Eastern and Southern Africa (COMESA) agreed to have a tripartite ministers' summit to fast track the finalization of the border control-free travel and free movement of goods and services area by the end of 2022.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Zambia-China Trade and Investment Forum
[edit]In September 2022, Zambia and China launched the inaugural trade and investment forum aimed at unlocking trade and investment potential between the two countries. The event also saw the signing of an Exchange Letter of the Duty Free Treatment for Zambian products corresponding to 98-percent of the tariff lines by Finance Minister Situmbeko Musokotwane and Chinese Ambassador to Zambia Du Xiao.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Zambia-China bilateral trade growth
[edit]In mid-September 2023, President Hakainde Hichilema met with The President of The Peoples Republic of China, Xi Jinping in Beijing where they witnessed the signing of over 15 MOUs amounting to a potential investment of about ZMW 62.3 billion kwacha (US$3.0 billion) by China into Zambia and the leaders also agreed to increase the use of local currencies in trade between the two countries.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> One of the MOUs signed during Mr. Hichilema's visit to China was with the international telecoms manufacturer ZTE to construct and open a smartphone manufacturing plant in Zambia.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In late-September 2023, China Nonferrous Metal Mining Group (CNMC) unveiled plans to inject an additional ZMW 27.0 billion kwacha (US $1.3 billion) into Zambia from 2023 through 2028, spanning the mining, energy, education and technology economic sectors.<ref>Template:Cite web</ref>
U.S.-Zambia Business Summit
[edit]In October 2022, more than 50 United States and Zambian business and government leaders gathered in Lusaka for the two-day inaugural U.S.-Zambia Business Summit at the Intercontinental Hotel. Representatives from the U.S. Trade and Development Agency, U.S. International Development Finance Corporation also attended the Summit. The Summit focused on promoting Zambia as one of the most attractive business environments for investment on the African continent.<ref>Template:Cite web</ref>
African Continental Free Trade Area (AfCFTA) Digital Trade Forum
In May 2025, Zambia hosted the inaugural, African Continental Free Trade Area (AfCFTA) Digital Trade Forum in Lusaka. The Digital Trade Forum, bringing together policymakers and business leaders from across Africa, aimed to develop practical strategies for implementing the AfCFTA’s digital commerce provisions.<ref>Template:Cite web</ref>
Sectors
[edit]Mining
[edit]In 2019, the country was the world's 7th largest producer of copper.<ref>USGS Copper Production Statistics</ref>
The Zambian economy has historically been based on the copper-mining industry. The industrialization of the copper industry is owed partly to Frederick Russell Burnham, the famous American scout who worked for Cecil Rhodes.<ref name="juang2008">Template:Cite book</ref> By 1998, however, output of copper had fallen to a low of 228,000 tonnes, continuing a 30-year decline in output due to lack of investment, and until recently, low copper prices and uncertainty over privatization. In 2001, the first full year of a privatized industry, Zambia recorded its first year of increased productivity since 1973. The future of the copper industry in Zambia was thrown into doubt in January 2002, when investors in Zambia's largest copper mine announced their intention to withdraw their investment. However, surging copper prices from 2004 to the present day rapidly rekindled international interest in Zambia's copper sector with a new buyer found for KCCM and massive investments in expanding capacity launched. China has become a major investor in the Zambian copper industry, and in February 2007, the two countries announced the creation of a Chinese-Zambian economic partnership zone around the Chambishi copper mine.<ref>Template:Cite news</ref>
Today copper mining is central to the economic prospects for Zambia and covers 85% of all the country's exports, but concerns remain that the economy is not diversified enough to cope with a collapse in international copper prices.
In January 2013, the Zambia Environmental Management Agency (ZEMA) approved 27 mining and exploration licences, with more rumoured to be confirmed.<ref>Template:Citation</ref>
Zambia is the world's second biggest producer of emeralds, with its Kafubu River area deposits (Kagem Mines) about Template:Convert southwest of Kitwe responsible for 20% of the world's production of gem-quality stones in 2004.<ref>Behling, Steve and Wilson, Wendell E. (January 1, 2010) "The Kagem emerald mine: Kafubu Area, Zambia", The Mineralogical Record, via TheFreeLibrary</ref> In the first half of 2011, the Kagem Mines produced 3.74 tons of emeralds.<ref>Template:Cite web</ref> In April 2022, Gemfields, the majority owner in the mine, recorded a record U$42.3 million at a sold out March/April auction and since 2009, Kagem-sourced gemstones (emerald and beryl) have netted Gemfields revenue totaling U$792 million with the proceeds fully repatriated to Kagem in Zambia, with all royalties due to the Zambian government paid on the full sales prices achieved at auctions.<ref>Template:Cite web</ref>
| Year | Premium Emerald
(carats) |
Emerald and Beryl
('000 carats) |
|---|---|---|
| 2019 | Template:Increase204,600 | Template:Increase36,300 |
| 2020 | Template:Decrease133,900 | Template:Decrease9,400 |
| 2021 | Template:Increase230,500 | Template:Increase32,000 |
| 2022 | Template:Increase259,500 | Template:Increase37,241 |
| 2023 | Template:Decrease156,700<ref name=":0">Template:Cite web</ref> | Template:Decrease30,153<ref name=":0" /> |
Rich deposits of Uranium have been discovered in some parts of Zambia. In 2007, the Zambian government sought scrutiny and guidance from the International Atomic Energy Agency (IAEA) on its developed guidelines to regulate the mining of uranium in the country.<ref name=":7">Template:Cite web</ref> In 2008, deposits were found in Kaputa District, Northern Province.<ref name=":7" /><ref>Template:Cite web</ref> Albidon Zambia Limited also confirmed the presence of high-grade uranium mineralisation at its Njame east project near Chirundu.<ref name=":7" /> In the Southern Province, 31 km North of Siavonga, and north of Lake Kariba, there are 5 main Uranium Deposits: Mutanga, Dibwe, Dibwe East, Njame, and Gwabe explored under The Mutanga Uranium Project. The Canadian Toronto Stock Exchange (TSX) listed GoviEx Uranium Inc acquired 100% of the Mutanga Project also known as the Kariba Uranium Project in 2016. In March 2022, GoviEx announced that the Project is forecast to start production in 2027 and could be the lowest capital intensive uranium project in Africa.<ref>Template:Cite web</ref>
Lumwana Mining Company Limited (LMC) who had embarked on uranium exploration in 2007 in Solwezi District<ref>Template:Cite web</ref> are currently stock piling uranium that the firm is getting as a by-product of Copper from its operations as they are yet to obtain a uranium license.<ref name=":8">Template:Cite web</ref><ref>Template:Cite web</ref> The mining of uranium in Zambia is monitored by the Zambia Environmental Management Agency (ZEMA).<ref name=":8" />
See Also:
- Munali Nickel Mine estimated development cost U$180 million in 2007<ref name=":03">Template:Cite web</ref>
- Enterprise Nickel Project estimated development cost U$275 million<ref>Template:Cite web</ref>
Agriculture
[edit]The agriculture sector represented 2.7% GDP in 2019.<ref>Template:Cite web</ref> Agriculture accounted for 85% of total employment (formal and informal) for 2000. Maize (corn) is the principal cash crop as well as the staple food. Other important crops include soybean, cotton, sugar, sunflower seeds, wheat, sorghum, pearl millet, cassava, tobacco and various vegetable and fruit crops. Floriculture is a growth sector, and agricultural non-traditional exports now rival the mining industry in foreign exchange receipts. Zambia has the potential for significantly increasing its agricultural output; currently, less than 20% of its arable land is cultivated. In the past, the agriculture sector suffered from low producer prices, difficulties in availability and distribution of credit and inputs, and the shortage of foreign exchange.
In 2019 Zambia produced:<ref name="FAO">Template:Cite web</ref><ref>Template:Cite web</ref>Template:Verify source
- 4.7 million tons of sugarcane;
- 4 million tons of cassava (18th largest producer in the world);
- 2 million tons of maize;
- 281 thousand tons of soy;
- 153 thousand tons of tobacco (6th largest producer in the world);
- 151 thousand tons of wheat;
- 130 thousand tons of peanut;
- 109 thousand tons of sweet potato;
- 72 thousand tons of cotton;
- 6,900 tons of coffee;
In addition to other productions of other agricultural products.<ref name=FAO/>
Due to high demand for flour in neighboring Democratic Republic of the Congo DRC, Zambia increased Wheat production from 205,000 tonnes in 2020 to 400,000 tonnes 2021.<ref>Template:Cite web</ref>
In July 2022, Zambia and China sealed a memorandum of understanding on soya bean meal and stevia export from Zambia to China.<ref>Template:Cite web</ref>
Fisheries and Livestock
[edit]The Fisheries and Livestock sub-sector in Zambia contributes to employment creation, food and nutrition security, and economic growth.
| Year | Milk (MT) | Eggs (000) | Hides (MT) | Beef (MT) | Pork (MT) | Poultry (MT) |
|---|---|---|---|---|---|---|
| 2018 | 1,686,400 | 1,642,693 | 345,549 | 6,103,281 | 555,270 | 5,111,098 |
| 2019 | Template:Increase2,045,603 | Template:Increase1,744,047 | Template:Increase369,357 | Template:Increase6,763,045 | Template:Increase595,472 | Template:Increase5,537,874 |
In livestock, Zambia produced, in 2019: 191 thousand tons of beef; 50 thousand tons of chicken meat; 34 thousand tons of pork; 453 million liters of cow's milk, among others.<ref>Livestock production in Zambia in 2019, by FAO</ref>
Energy
[edit]Energy in Zambia is the production of energy and electricity, for consumption or export. The Energy Regulation Board (ERB) has the mandate to balance and safeguard the interests of all energy stakeholders. The Energy policy is as guided by the Energy Regulation Act No. 12 of 2019, the Electricity Act No. 11 of 2019 and the Rural Electrification Act No.20 of 2003.<ref>Template:Cite web</ref>
Electricity
[edit]| Month | ZMW | Month | ZMW | Month | ZMW | Month | ZMW |
|---|---|---|---|---|---|---|---|
| Jan-21 | Template:Increase259,900,000 | Jan-22 | Template:Decrease- | Jan-23 | Template:Increase590,300,000 | Jan-24 | Template:Increase877,700,000 |
| Feb-21 | Template:Decrease- | Feb-22 | Template:Steady- | Feb-23 | Template:Decrease551,600,000 | Feb-24 | Template:Decrease748,000,000 |
| Mar-21 | Template:Increase299,900,000 | Mar-22 | Template:Increase299,900,000 | Mar-23 | Template:Increase638.600,000 | Mar-24 | Template:Increase802,600,000 |
| Apr-21 | Template:Decrease294,100,000 | Apr-22 | Template:Decrease- | Apr-23 | Template:Decrease600,400,000 | Apr-24 | Template:Decrease668,400,000 |
| May-21 | Template:Increase384,400,000 | May-22 | Template:Steady- | May-23 | Template:Increase622,800,000 | May-24 | Template:Decrease623,100,000 |
| Jun-21 | Template:Decrease- | Jun-22 | Template:Steady- | Jun-23 | Template:Decrease587,700,000 | Jun-24 | Template:Increase625,500,000 |
| Jul-21 | Template:Increase210,600,000 | Jul-22 | Template:Steady- | Jul-23 | Template:Increase668.800,000 | Jul-24 | Template:Decrease538,200,000 |
| Aug-21 | Template:Increase290,500,000 | Aug-22 | Template:Steady- | Aug-23 | Template:Increase698.400,000 | Aug-24 | Template:Increase621,700,000 |
| Sep-21 | Template:Decrease- | Sep-22 | Template:Increase696,800,000 | Sep-23 | Template:Decrease678,800,000 | Sep-24 | Template:Decrease502,400,000 |
| Oct-21 | Template:Steady- | Oct-22 | Template:Decrease560,200,000 | Oct-23 | Template:Decrease664,000,000 | Oct-24 | Template:Decrease426,700,000 |
| Nov-21 | Template:Steady- | Nov-22 | Template:Increase642,100,000 | Nov-23 | Template:Increase901,300,000 | Nov-24 | Template:Increase444,200,000 |
| Dec-21 | Template:Increase223,100,000 | Dec-22 | Template:Decrease583,900,000 | Dec-23 | Template:Decrease826,500,000 | Dec-24 | Template:Decrease396,200,000 |
In 2019, Zambia generated a total of 15,013GWh of Energy. 12,427GWh was Renewable and 2,586 GWh was non-renewable. Over 99% of the Renewable energy component was Hydro electricity.<ref name="EP">Template:Cite web</ref>
With a view to diversifying the power generation profile, Zambia increased its Solar Power generation Capacity in 2019.<ref name="EP" />
In March 2019, the 54MW Bangweulu Solar Power Station was commissioned.<ref>Template:Cite web</ref>
In May 2019, the 34MW Ngonye Solar Power Station was commissioned.<ref>Template:Cite web</ref>
In July 2022, the local National utility ZESCO, announced it had achieved an electricity generation surplus of about 1,156 MW. Zambia's national generation capacity stands at 3,456.8 MW versus a peak national demand of 2,300 MW. The surplus power is to be directed to service the power supply agreements for the export of 180 MW to Namibia and 100 MW to Zimbabwe.<ref>Template:Cite web</ref> The exportation of 100MW electricity to Zimbabwe which is set to commence in August 2022 is under a five-year contract with a condition precedent that ZESCO earns monthly income of US$6.3 million prior exporting to Zimbabwe.<ref>Template:Cite web</ref>
The close of 2022 brought in some serious challenges to the Zambian economy, when low water levels at the Kariba Dam significantly impacted the 1080MW Kariba Hydro Power plant's output capacity and resulted in load shedding for businesses and residents across the country. This was compounded by the maintenance that was being carried out at the 300MW Maamba Coilleries Coal Fired Power Plant.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In January 2023, Zambia signed a US$2 billion dollar MOU and Joint Development Agreement (JDA) with the United Arab Emirates for the development of 2000MW of Solar Power Projects.<ref>Template:Cite web</ref>
In April 2023, Zambia, through its state owned utility company ZESCO Limited, signed a ZMW 67 Billion (US$3.4 Billion) Power Purchase Agreement with Integrated Clean Energy Power Company of China to produce 2,400 Mega Watts of renewable energy. Implementation of the project is expected to be done in a phased manner with the first phase producing 600MW of solar energy distributed as one 300MW power plant in Central Province and another 300MW Power plant in Southern Province. The two 300MW solar power plants of phase one are expected to be connected to the National Grid by the end of 2024.<ref>Template:Cite web</ref>
Petroleum
[edit]Zambia is a net importer of petroleum and in 2019, Oil & Mineral Fuels ranked top amongst the country's trade imports at a value of U$1.26 billion.<ref>Template:Cite web</ref>
In January 2022, the ERB migrated from a Quarterly pricing cycle to a monthly pricing cycle to enable the local price of fuel to be more responsive to the market fundamentals namely: international oil prices and the Kwacha/US Dollar exchange rate prevailing in the month preceding the pricing decision.<ref name=":16">Template:Cite web</ref> Further, following the UPND governments' policy decision to place INDENI Petroleum Refinery on care and maintenance, the nation moved to one type of Diesel sold on the market, and that is the imported Low Sulphur Gasoil/Diesel.<ref>Template:Cite web</ref>
*Final rate on quarterly price cycle.
**Excise Duty and VAT Restored.
Bulk Fuel Depots in Zambia are listed below:
| Location | Capacity
(million litres) |
Cost
US $ (ZMW Annual Average Spot Conversion) |
Commissioned | Source |
|---|---|---|---|---|
| Chipata | 7.0 | US$40.0 million (ZMW 692.0 million) | 2022 | <ref>Template:Cite web</ref> |
| Lusaka | 25.0 | US$24.7 million (ZMW 132.0 million) | 2013 | <ref>Template:Cite web</ref> |
| Mansa | 6.5 | 2021 | <ref>Template:Cite web</ref> | |
| Mongu | 6.5 | US$27.4 million (ZMW 282.0 million) | 2016 | <ref>Template:Cite web</ref> |
| Mpika | 6.5 | US$8.1 million (ZMW 50.0 million) | 2014 | <ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Ndola | 110 | N/A | 1973 | <ref name="4R">Template:Cite web</ref> |
| Solwezi | 15.5 | US$7.0 million (ZMW 60.5 million) | 2015 | <ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Total | 177 |
| Length | JV Partners | Project
Construction Start |
Project
Completion |
Cost | Source | Note(s) | |
|---|---|---|---|---|---|---|---|
| Tazama Pipeline | 1,710 km |
|
1966 (January) | 1968 | See Notes | <ref name="1R2">Template:Cite web</ref><ref name=":27">Template:Cite web</ref><ref>Template:Cite web</ref> |
|
| Namibia-Zambia Multi-Product Petroleum and Natural Gas Pipelines Project (NAZOP) | TBA | TBA | TBA | TBA | <ref>Template:Cite web</ref> |
| |
| Lobito–Lusaka Oil Products Pipeline | 1,400 km |
|
TBA | Expected 2026 | US$5.0 billion | <ref name="1R3">Template:Cite web</ref><ref name="10R">Template:Cite web</ref><ref name="9R2">Template:Cite web</ref> |
|
See also: Tazama Pipeline, Indeni Petroleum Refinery and Lobito–Lusaka Oil Products Pipeline.<ref>Template:Cite web</ref>
In January 2023, Zambia announced plans to acquire a stake in its neighbor Angola's Lobito Oil Refinery located in Benguela Province along the Atlantic Coast. The Lobito refinery, that is set to be completed in 2026, will have the capacity to produce 200,000 barrels per day. Under the current proposal, private investors, including Zambia, will own 70% shares in the refinery, while Angola's state oil firm, Sonangol Group, will hold 30% ownership.<ref>Template:Cite web</ref>
In September 2023, TAZAMA began constructing a 3 km pipeline to tie the Tazama Pipeline to the 6.5 million litre Mpika fuel storage depot at a cost of ZMW 31.26 million kwacha (US$1.5 million).<ref name=":31">Template:Cite web</ref> When commissioned the pipeline is planned to divert a portion of the low sulfur diesel imported via the pipeline to the storage depot to service the Northern circuit of Zambia with long term benefits of lower fuel costs in the region.<ref name=":31" /> This tie-in pipeline is the first of a planned network of distribution pipelines to the other fuel storage depots in Zambia.<ref name=":31" />
Tourism
[edit]Template:Further Zambia's tourism revenue has been generally raised from local and international tourists visiting the Victoria Falls in Livingstone, and its associated attractions such as the Livingstone Museum and the Mosi-oa-Tunya National Park. In July 2020, the Livingstone Tourism Association reported that during the Heroes and Unity holidays the holiday site received a record number of visitors.<ref>Template:Cite web</ref> Celebrities such as Will Smith and some EntrepreneurTemplate:Who<ref>Template:Cite web</ref> have visited the tourist site with the latter celebrating her £3 million nuptials in a picturesque ceremony at The Royal Livingstone Hotel by the banks of the Zambezi River.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
To advance home grown tourism, in March 2021, African Eagle Hotels, a multi-national company, stated that a 2 Star and 5 Star Hotel each costing U$20 million and U$30 million would be constructed and opened at the Kasaba Bay Resort located in the Nsumbu National Park and open by 2023.<ref>Template:Cite web</ref> In October 2021, through its national budget, the government also allocated ZMW 150 million (U$8.6 million) to further the development of Kasaba Bay, to spur tourism in the Northern Circuit of Zambia.<ref name=":12">Template:Cite web</ref>
Manufacturing
[edit]| Quarter | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 2020 | Template:Increase5,293 | Template:Increase5,556 | Template:Increase7,179 | Template:Increase7,605 |
| 2021 | Template:Increase9,200 | Template:Increase11,654 | Template:Decrease10,717 | Template:Increase10,211 |
| 2022 | Template:Increase10,677 | Template:Decrease9,463 | Template:Increase9,600 | Template:Increase11,019 |
| 2023 | Template:Decrease10,814 | Template:Decrease9,918 | Template:Increase12,892 | Template:Increase13,734 |
| 2024 | Template:Increase13,849 | Template:Increase15,131 | Template:Increase17,220 | Template:Increase17,753 |
| Company Name | Product(s) | Source |
|---|---|---|
| African Explosives Zambia | Explosives | <ref>Template:Cite web</ref> |
| Airumi New Energy Zambia | Car Batteries and Storage Batteries | <ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Bayer Seed Itaba Plant | Maize Seed | <ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Chilanga Cement | Cement | <ref name=":06">Template:Cite web</ref> |
| Dangote Cement | Cement | <ref name=":21" /> |
| Kafue Steel Plant | Steel | <ref>Template:Cite webTemplate:Dead link</ref> |
| Kalene Hills Fruit Factory | Fruit Processing | <ref name=":05">Template:Cite web</ref> |
| Kawambwa Tea Industries Limited | Tea | <ref>Template:Cite web</ref> |
| Larfarge | Cement | <ref name=":21">Template:Cite web</ref> |
| Metal Fabricators of Zambia (ZAMEFA) | Electric Power Cables | <ref>Template:Cite web</ref> |
| Mpande Limestone | Limestone | <ref name=":21" /> |
| Mununshi Fruit Company Limited (MFCL) | Bananas | <ref>Template:Cite web</ref> |
| Naipu Mining Machinery (Zambia) Company Limited | Mining Equipment | <ref>Template:Cite web</ref> |
| Ndola Lime Company Limited (NLC) | Limestone | <ref name=":07">Template:Cite web</ref> |
| Nitrogen Chemicals Of Zambia (NCZ) | Fertilizers | <ref>Template:Cite web</ref> |
| Northern Coffee Company Limited (NCCL) | Coffee | <ref>Template:Cite web</ref> |
| Powerful Diligent Veracious (PDV) Metal Steel | Steel | <ref>Template:Cite web</ref> |
| Proton Electro Cables Zambia | Building Wire & Electric Cables | |
| Sunbird Energy | Cassava Ethanol | <ref>Template:Cite web</ref> |
| Trade Kings Zambia Limited | FMCG, Steel | <ref>Template:Citation</ref> |
| Uniflex Wires and Cables Ltd | Electric Cables | <ref>Template:Cite web</ref> |
| United Capital Fertilizer (UCF) Zambia Limited | Fertilizers | <ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Zambeef Products | Meat, dairy, eggs, animal feed, leather | <ref>Template:Cite news</ref> |
| Zambian Breweries | Alcoholic Beverages | <ref name=":08">Template:Cite web</ref> |
| Zambia Forestry and Forest Industries Corporation Plc (ZAFFICO) | Wood and Wood & Paper Products | <ref>Template:Cite web</ref> |
| Zambia Sugar Plc | Sugar and Molasses ethanol | <ref name="1R">Template:Cite web</ref> |
| Zambia National Service (ZNS) Chingola Milling Plant | Mealie Meal | 3 |
Below is a table for the Composite Purchasing Managers' Index (PMI) Manufacturing Pulse in Zambia. 50 sets the benchmark, for expansion ->50 and expansion -<50.
| Year | Production (MT) |
|---|---|
| 2020 | Template:Increase 2,127,832 |
| 2021 | Template:Increase 2,732,013 |
| 2022 | Template:Decrease 2,369,193 |
| 2023 | Template:Increase 2,740,288 |
| 2024 | Template:Increase 3,265,299 |
Education
[edit]As of 2022, Zambia runs a free education policy at public early childhood and secondary schools.<ref>Template:Cite web</ref>
Finance and Banking Services
[edit]- Central Bank: Bank of Zambia (BOZ)
- List of banks in Zambia
| Date | Policy Rate | Monetary Policy Committee Statement |
|---|---|---|
| 5 November 2015 | Template:IncreaseNegative15.50% | Policy Rate adjusted upward by 300 basis points to 15.50% |
| 19 February 2016 | Template:Steady15.50% | Policy Rate maintained at 15.50% |
| 20 May 2016 | Template:Steady15.50% | Policy Rate maintained at 15.50% |
| 19 August 2016 | Template:Steady15.50% | Policy Rate maintained at 15.50% |
| 16 November 2016 | Template:Steady15.50% | Policy Rate maintained at 15.50% |
| 22 February 2017 | Template:DecreasePositive14.00% | Policy Rate Reduced by 150 basis points 14.00%,
the Overnight Lending Facility (PLF) Rate reduced to 600 basis points above the Policy Rate, and the Statutory Reserve Ratio reduced by 250 basis points to 15.50% |
| 17 May 2017 | Template:DecreasePositive12.50% | Policy Rate Reduced by 150 basis points 12.50% |
| 10 August 2017 | Template:DecreasePositive11.00% | Policy Rate lowered to 11.00% and Statutory Reserve Ratio reduced to 9.50% |
| 22 November 2017 | Template:DecreasePositive10.25% | Policy Rate lowered to 10.25% and Statutory Reserve Ratio reduced to 8.00% |
| 16 February 2018 | Template:DecreasePositive9.75% | Policy Rate cut by 50 Basis Points to 9.75% |
| 16 May 2018 | Template:Steady9.75% | Policy Rate maintained at 9.75% |
| 22 August 2018 | Template:Steady9.75% | Policy Rate maintained at 9.75% |
| 21 November 2018 | Template:Steady9.75% | Policy Rate maintained at 9.75% |
| 20 February 2019 | Template:Steady9.75% | Policy Rate maintained at 9.75% |
| 22 May 2019 | Template:IncreaseNegative10.25% | Policy Rate adjusted upwards by 50 basis points to 10.25% |
| 21 August 2019 | Template:Steady10.25% | Policy Rate maintained at 10.25% |
| 20 November 2019 | Template:IncreaseNegative11.50% | Policy Rate adjusted upward by 125 basis points to 11.50% |
| 19 February 2020 | Template:Steady11.50% | Policy Rate maintained at 11.25% |
| 20 May 2020 | Template:DecreasePositive9.25% | Policy Rate cut by 225 Basis Points to 9.25% |
| 19 August 2020 | Template:DecreasePositive8.00% | Policy Rate cut by a further 125 Basis Points to 8.00% |
| 18 November 2020 | Template:Steady8.00% | Policy Rate held at 8.0% |
| 17 February 2021 | Template:IncreaseNegative8.50% | Policy Rate adjusted upwards by 50 basis points to 8.50% |
| 19 May 2021 | Template:Steady8.50% | Policy Rate held at 8.50% |
| 1 September 2021 | Template:Steady8.50% | Policy Rate held at 8.50% |
| 24 November 2021 | Template:IncreaseNegative9.00% | Policy Rate adjusted upwards by 50 basis points to 9.00% |
| 17 February 2022 | Template:Steady9.00% | Policy Rate maintained at 9.00% |
| 18 May 2022 | Template:Steady9.00% | Policy Rate maintained at 9.00%<ref name=":11" /> |
| 17 August 2022 | Template:Steady9.00% | Policy Rate maintained at 9.00%<ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| 23 November 2022 | Template:Steady9.00% | Policy Rate maintained at 9.00% |
| 15 February 2023 | Template:IncreaseNegative9.25% | Policy Rate adjusted upwards by 25 basis points to 9.25%<ref>Template:Cite web</ref>
On 2 February the Statutory Reserve Ratiowas increased to 11.50% from 9.00%<ref>Template:Cite web</ref> |
| 17 May 2023 | Template:IncreaseNegative9.50% | Policy Rate adjusted upwards by 25 basis points to 9.50%<ref>Template:Cite web</ref> |
| 23 August 2023 | Template:IncreaseNegative10.00% | Policy Rate adjusted upwards by 50 basis points to 10.00%<ref>Template:Cite webTemplate:Dead link</ref> |
| 22 November 2023 | Template:IncreaseNegative11.00% | On 6 November the Statutory Reserve Ratio was increased by 300 basis points to 14.50%<ref>Template:Cite web</ref> Policy Rate adjusted upwards by 100 basis points to 11.00%<ref>Template:Cite web</ref>
On 27 November the Statutory Reserve Ratio was increased by 250 basis points to 17.00%<ref>Template:Cite web</ref> |
| 2 February 2024 | On 2 February the Statutory Reserve Ratio was increased by 900 basis points to 26.00%<ref>Template:Cite web</ref> |
BOZ purchases gold locally from Kansanshi Copper Mine and the Zambia Gold Company for its reserves.<ref name=":04">Template:Cite web</ref>
| Year | Cummulative Gold Reserves US$ | Source | Notes | Cumulative refined gold reserves (kg) |
|---|---|---|---|---|
| 2021 | 43,000,000 | <ref name=":04" /><ref name=":15">Template:Cite web</ref> | ||
| 2022 | 83,000,000 | <ref name=":15" /><ref>Template:Cite web</ref><ref>Template:Cite web</ref> | target for 2022 is US$100 million in Gold <ref name=":15" /> | 1,438 kilograms |
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|---|---|
| Rate | 29.20% | Template:DecreasePositive24.90% | Template:DecreasePositive23.60% | Template:IncreaseNegative25.63% | Template:IncreaseNegative26.57% | Template:DecreasePositive25.90% | Template:DecreasePositive25.22% |
| Source | <ref>Template:Cite web</ref> | <ref name=":23">Template:Cite web</ref> | <ref name=":23" /> | <ref name=":24" /> | <ref name=":24" /> | <ref name=":22" /> | <ref>Template:Cite web</ref> |
Health
[edit]In May 2025, the Zambian government signed a Joint Venture (JV) agreement with one of India's largest pharmaceutical companies, Akums Drugs and Pharmaceuticals Limited, to establish a manufacturing plant for the local production of approximately 150 essential medicines.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Media
[edit]Infrastructure
[edit]There are many forms of transport in Zambia. Zambia is highly dependent on road transport.
- Transport in Zambia
- Roads in Zambia
- List of airports in Zambia.
- Rail transport in Zambia
- Water transport in Zambia
Growth
[edit]There are, however, positive macroeconomic signs, rooted in reforms implemented in the early and mid-1990s. Zambia's floating exchange rate and open capital markets have provided useful discipline on the government, while at the same time allowing continued diversification of Zambia's export sector, growth in the tourist industry, and procurement of inputs for growing businesses. Some parts of the Copper Belt have experienced a significant revival as spin-off effects from the massive capital reinvestment are experienced.
Export Diversification
[edit]As Zambia continued on its path to diversifying from dependence on Copper with an emphasis on growth in agriculture, in April 2022, the country's Ministry of Agriculture through the Plant Quarantine and Phytosanitary Service (PQPS) approved the first consignment of over 37 metric tons of Zambian grown avocados for export to countries in the European Union.<ref>Template:Cite web</ref>
The Multi-Facility Economic Zones (MFEZ)
[edit]In 2005, the Japanese Government through Japan International Corporation Agency (JICA) aided the Zambia government to introduce the Multi- Facility Economic Zone (MFEZ) programme.<ref name=":9">Template:Cite web</ref> The aim is to create a platform for Zambia to achieve economic development by attracting significant domestic and foreign direct investment (FDI) through a strengthened policy and legislative environment.<ref name=":9" /> The MFEZs are, special industrial zones for both export-oriented and domestic-oriented industries. The zones are expected to have well appointed infrastructure in place in order to attract and facilitate establishment of world-class enterprises in the zone (s).<ref name=":9" />
Among the MFEZ investment incentives offered for companies operating under the MFEZ/Priority Sector include:
| Category | Tax Rate | Duration | Conditions |
|---|---|---|---|
| Corporate Tax | 0% | 5 years | from the year of first declaration of dividends |
| Tax on Profits | 30% | 5 years | from 6 to 8 years only 50% of the profits to be taxed
for years 9 and 10, 75% of profits to be taxed |
| Import Duty | 0% | 5 years | on raw materials, capital goods, machinery including trucks and specialised motor vehicles |
| Value Added Tax | Deferred | - | on machinery and equipment including trucks and specialised motor vehicles imported |
Currently there are numerous MFEZs in Zambia:<ref name=":9" /><ref name="times">Template:Cite web</ref>
The Lusaka South Multi-Facility Economic Zone (LS-MFEZ)
[edit]Established in June 2012, the zone prioritizes agribusiness, packaging and printing, palm oil processing, pulp and packaging boards, pharmaceuticals, electrical and electronic appliances, ICTs, education and skills training, R&D, professional, medical, scientific and measuring services.<ref name=":9" />
In 2020, the LS-MFEZ realised US$100.6 million worth of investments bringing the accumulated investments to about US$567.6 million and generating about 7,100 jobs since commencing operations in 2012.<ref>Template:Cite web</ref>
In 2021, the LS-MFEZ realised a record US$309.4 million worth of investments bringing the accumulated investments to about US$877.4 million with permanent jobs at about 9,360 and total jobs including construction workers at 11,560.<ref name=":10" /><ref>Template:Cite web</ref>
The Lusaka East Multi-Facility Economic Zone
[edit]This zone is also known as the Zambia-China Economic & Trade Cooperation Zone (ZCCZ).<ref name=":9" />
The zone prioritizes agriculture (circular and tourism agricultures), agro-processing, brewery, pharmaceuticals, building materials, logistics (storage) and international commerce.<ref name=":9" />
Roma Industrial and Commercial Park
[edit]Launched in 2011, is expected to generate more than 4,000 permanent jobs once fully developed and is focused on real estate and residential developments.<ref>Template:Cite web</ref>
Chambishi Multi-Facility Economic Zone (CMFEZ)
[edit]Opened in 2007, prioritizes mining, engineering equipment assembly, construction materials, fertilizers, agriculture, and service sectors such as banking and hospitals.<ref name=":9" />
By 2016, the CMFEZ had already received investment of about US$800 million from 14 enterprises.<ref>Template:Cite web</ref>
Chembe Multi-Facility Economic Zone
[edit]In 2016, the government launched the development of the Chembe Multi-Facility Economic Zone in Chembe, Luapula Province.<ref name="times"/>
Chibombo Multi-Facility Economic Zone
[edit]Located in Chibombo District, Central Province, Zambia, the ground breaking for this zone was held in November 2018 and is also known as the Jiangxi Multi-Facility Economic Zone.<ref name=":10">Template:Cite web</ref>
In October 2021, the Chibombo MFEZ signed six project agreements worth US$160 million projected to create over 1,000 jobs.<ref>Template:Cite web</ref>
Lumwana Multi-Facility Economic Zone
[edit]In November 2009, the government of Zambia announced a plan for a US$1.2 billion investment into the declared Lumwana Multi-Facility Economic Zone.<ref>Template:Cite web</ref>
Sub-Saharan Gemstones Exchange Industrial Park
[edit]This Multi-Facility Economic Zone (MFEZ) is located in Ndola, Copperbelt Province.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>
By October 2011, over US$10 million had been invested in the infrastructure in the MFEZ.<ref>Template:Cite web</ref>
Kalumbila Multi-Facility Economic Zone (MFEZ)
[edit]Located in North-Western Province, this MFEZ received approval by the Ministry of Commerce, Trade and Industry in September 2022.<ref name=":25">Template:Cite web</ref><ref name=":26">Template:Cite web</ref>
The expected initial investment was approximately US$100 million.<ref name=":25" /><ref name=":26" />
The facility was intended to offer local vendors an industrial base to set up a local supply chain for the growing Kalumbila copper mine, upcoming Enterprise nickel mine, and other businesses around the First Quantum Minerals (FQM) sites.<ref name=":25" /><ref name=":26" />
Actualized Investments
[edit]| Year | Actualized Value (USD) | Actualized Value (ZMW)<ref>Template:Cite web</ref> | Number of Jobs created | Source |
|---|---|---|---|---|
| 2019 | US$1.90 billion | ZMW 24.53 billion | 14,775 | <ref name=":24">Template:Cite web</ref> |
| 2020 | Template:IncreaseUS$2.18 billion | Template:IncreaseZMW 39.92 billion | Template:Increase25,795 | <ref name=":22">Template:Cite web</ref> |
| 2021 | Template:IncreaseUS$2.74 billion | Template:IncreaseZMW 53.95 billion | Template:Increase35,794 | <ref name=":22" /> |
| 2022 | Template:IncreaseUS$4.40 billion | Template:IncreaseZMW 74.36 billion | Template:Increase19,528 | <ref>Template:Cite web</ref> |
Fintech
[edit]Zambia has a relatively quiet startup and venture capital space; however, the trend seems to be shifting as in August 2021 fintech company Union54 led the way by being the first Zambian startup accepted into Y Combinator's summer batch of YC 2021.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In October 2021, American investment firm Tiger Global led a U$3 million seed round in Union54.<ref>Template:Cite web</ref> And in April 2022, the Zambian company raised an additional U$12 million in a seed extension round also led by Tiger Global.<ref>Template:Cite web</ref>
Salaula
[edit]Template:See also Standard economic theory and empirical data indicates that second-hand clothing import can have positive effects in a country like Zambia (one of the least developed countries in the world). The salaula market reduces the proportion of income that a family has to spend on clothing. It also helps to keep employments like repairs and alterations in business and forces tailors to proceed into more specialize production of styled garments.<ref>Hansen, Karen Tranberg. 2004. Helping or hindering? Controversies around the international second-hand clothing trade. Anthropology Today 20 (4):3-9.</ref>
There is a downside to such imports, however; the massive importation of used clothing from the developed world has resulted in a near-total collapse of the Zambian indigenous textile industry. In the face of cheap used clothing, tailors' specialized production may be irrelevant - customers will buy the least expensive clothing available, irrespective of style. Those who might otherwise work at textile mills or clothing factories are left jobless, or else make significantly less money in the salaula resale business.
Electric Battery Value Chain
[edit]Zambia and Democratic Republic of the Congo (DRC), two countries, that have more than 70% of the world's Cobalt reserves and an abundance of Copper, Nickel and Manganese have resolved to set up a Zambia-DRC-Executive Battery Council to oversee the implementation of the cooperating agreement for the electric vehicle battery value chain. The Executive Council's executive committee will be composed of President Hakainde Hichilema, his DRC counterpart Felix Tshisekedi, the Deputy Secretary General of the African Economic Community for the United Nations, as well as the President of AFREXIM Bank, as a financial partner. Also issued was a communiqué by the two heads of state that indicated that the two countries will also harmonize policies for the initiative. Zambia and the DRC signed the MOU in Lusaka Zambia on 29 April 2022.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
In July 2022, the African Export-Import Bank President Benedict Oramah, whilst in Lusaka Zambia, announced that a pool of investors had earmarked more than US$500.0 million to set up an industrial park for the purposes of adding value to the copper, cobalt, and manganese mined in Zambia. The investors will set up plants to process cobalt, copper, and lithium that are in Zambia and neighboring countries and establish a US$250 million Battery Electric Vehicle (BEV) manufacturing plant.<ref name=":17" />
In July 2022, at the 94th Agricultural and Commercial Show in Lusaka, the managing director of the National Utility ZESCO, Victor Mapani announced that the company plans to deploy Electric Vehicle EV charging stations across the country in an effort to accelerate and promote the transition to EVs and enhance carbon emission reduction.<ref>Template:Cite web</ref>
In December 2022, on the sidelines of the ongoing US-Africa summit in Washington DC, Zambia, the Democratic Republic of the Congo (DRC) and the United States of America signed an MOU toward the actualization of the electric vehicle battery value chain. Different US institutions and agencies such as USAID, the US Department of Commerce, the Trade and Development Agency, are exploring technical assistance for the Zambia-DRC EV supply chain. Additionally, the Export-Import Bank of the United States, the Development Finance Corporation, will be exploring financing and support mechanisms for investment in African electric vehicle value chains.<ref>Template:Cite web</ref>
In April 2023, The African Export-Import Bank (Afreximbank) and the United Nations Economic Commission for Africa (ECA) signed a framework agreement with Zambia and the Democratic Republic of Congo for the establishment of special economic zones for the production of electric vehicles and batteries.<ref>Template:Cite web</ref> Afreximbank and ECA will lead the establishment of an operating company in consortium with public and private investors and Afreximbank's impact fund subsidiary, the Fund for Export Development in Africa. The new company will develop special economic zones (SEZs) dedicated to the production of battery precursors, batteries, and electric vehicles, in both nations.<ref>Template:Cite web</ref>
In October 2023, the Chinese company Better Technology Group announced that procurement of electric vehicle battery, energy storage battery and Uninterruptiple Supply battery manufacturing equipment was under underway and will be delivered in Zambia by December 2023.<ref name="CC">Template:Cite web</ref> This equipment will be part of the EV battery manufacturing facility to be set up in Zambia's Chibomba- Jiangxi Multi Facility Economic Zone in Central Province with construction set to be completed by March 2024.<ref name="CC" /> The Group President also announced that the company has budgeted to invest ZMW 2.18 billion kwacha (US$100 million) in the Venture through 2026.<ref name="CC" />
Telecommunications
[edit]In June 2023, an internet services license was granted to Starlink by the Zambian Government through the Electronic Government Division – SMART Zambia, following the completion of trial projects throughout the nation.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
Inflation
[edit],_%25_of_world_average,_1960-2012;_Zimbabwe,_South_Africa,_Botswana,_Zambia,_Mozambique.png){kind=link}
Lack of balance-of-payment support meant the Zambian government did not have resources for capital investment and periodically had to issue bonds or otherwise expand the money supply to try to meet its spending and debt obligations. The government continued these activities even after balance-of-payment support resumed. This has kept interest rates at levels that are too high for local business, fuelled inflation, burdened the budget with domestic debt payments, while still falling short of meeting the public payroll and other needs, such as infrastructure rehabilitation. The government was forced to draw down foreign exchange reserves sharply in 1998 to meet foreign debt obligations, putting further pressure on the kwacha and inflation. Inflation held at 32% in 2000; consequently, the kwacha lost the same value against the dollar over the same period. In mid- to late 2001, Zambia's fiscal management became more conservative. As a result, 2001 year-end inflation was below 20%, its best result in decades. In 2002 inflation rose to 26.7%. However, in 2007 inflation hit 8%, the first time in 30 years that Zambia had seen single digit inflation.
On January 27, 2011, it was reported by the Central Statistical Office that inflation rose to 9%.<ref>Template:Citation</ref> in 2012
Between April 2019 and April 2020 Zambia' s Annual inflation rate rose to 15.7% from 14% in March 2020. The rise of prices in food and other non- food items led to the increase in the Annual inflation rate.<ref name=":6">Template:Cite web</ref>
However, it is significant that inflation often peaks in election years, hitting a recent high of 17.9% in 2016. This suggests that a further peak is likely approaching during the 2021 general elections. The value of the kwacha against the dollar has been relatively consistent for the past two years and has yet to return to the recent high of almost 0.2 kwacha to the dollar in 2013. Nonetheless, the real effective exchange rate of the kwacha against a weighted average of foreign currencies improved from 88.5 in 2016 to 96.4 in 2017. The kwacha lost value against the dollar in September 2018 but has remained fairly consistent at 0.08 to the dollar in November to December, though further instability remains likely due to both political and economic uncertainty.<ref name="CR" />
Economic Statistics
[edit]Trade
[edit]Major trade enhancing infrastructure projects carried out in Zambia's history:
- TAZARA Railway commissioned in 1975 for a cost of US $406 million (the equivalent of US $Template:Inflation billion in 2022 USD rate).<ref name="Xinhua">(Chinese) 记者重走我国援建的坦赞铁路：年久失修常晚点 新华社-瞭望东方周刊 2010-08-04</ref><ref name="nytimes19710129">Template:Cite news</ref>
- Kazungula Bridge, commissioned in May 2021 for a cost of US$259.3 million.<ref>Template:Cite web</ref>
- Levy Mwanawasa (Chembe) Bridge, commissioned in October 2008 for a cost of US$1.5 million.<ref>Template:Cite web</ref>
- Chinsali-Nakonde road is being constructed using grant funds from the African Development Bank.<ref name="ZC">Template:Cite web</ref><ref name="NR">Template:Cite web</ref> The 210 km stretch is valued at 6.3 billion kwacha (US$255.76 million).<ref name="ZC" /> The road which is being constructed constructed in two lots by China State Engineering Corporation and China Railway 7 group is expected to be completed in December 2026.<ref name="ZC" /><ref name="NR" />
Major exhibitions
[edit]- Zambia International Trade Fair Template:Webarchive held annually in Ndola at the beginning of July.<ref>Template:Cite web</ref>
- Agriculture and Commercial Show held annually in Lusaka at the beginning of August.<ref>Template:Cite web</ref>
- Central Province Agriculture Show, held in Mkushi.<ref>Template:Cite web</ref>
Notable Companies
[edit]Public Private Partnerships (PPP)
[edit]In December 2021, Zambia's UPND Government set up the Public-Private Partnership (PPP) Council of Ministers composed of the Minister of Finance and National Planning (Dr. Situmbeko Musokotwane) as the Chairperson and the Ministers of Infrastructure (Charles Milupi), Commerce, Trade, and Industry (Chipoka Mulenga), Transport and Logistics (Frank Tayali), and Technology and Science (Felix Mutati). The focus of the council is to have public-private partnerships become the primary avenue for infrastructure development as opposed to the solely government funded path.<ref>Template:Cite web</ref>
| Project | Length | Tender Bidding
Process |
Expected Impact | JV Partners | Project
Construction Start |
Project
Completion |
Source |
|---|---|---|---|---|---|---|---|
| Lusaka-Ndola Dual Carriageway | 327 km | Closed | Key connection of the Trans-African Highway network in particular the Trans-African Highway 4 (TAH 4) and the Trans-African Highway 9 (TAH 9)
$650 million concession agreement. 25-yr deal with 3-yrs construction and 22-yrs operate toll gates and maintain road. Deal includes 45 km of the Luanshya-Fisenge-Masangano Road |
Macro-Ocean Investment Consortium | Q3 2023
(August) |
Expected 2026 | <ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Mufulira-Mokambo road | 15 km | Closed | Improved Trade with the Democratic Republic of the Congo
PPP was signed in November 2024 $56.7 million concession agreement 22-yr deal with 2-yrs construction and 20-yrs operate toll gate and maintain road. Deal includes construction of border post facilities at Mokambo. |
Jasworld Ports Limited
Government of Zambia |
Expected Q1 2025 | Expected 2027 | <ref name=":18">Template:Cite web</ref><ref name="BS" /><ref name=":52">Template:Cite web</ref><ref name=":62">Template:Cite web</ref> |
| Ndola-Sakania-Mufulira road | 70 km | Closed | Improved Trade with the Democratic Republic of the Congo
Improved Trade for Local Markets ZMW 1.64 billion kwacha (US$76.1 million) concession agreement to develop the 61 kilometers of the Mufulira-Sakania-Ndola road The concession is contracted to run for a period of 22 years, inclusive of the three years for construction |
Jaswin Ports Limited
Government of Zambia |
2024 | Expected 2026 | <ref name=":18" /><ref name="BS" /><ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Chingola - Kasumbalesa road | 35 km | Closed | Improved Trade with the Democratic Republic of the Congo
Improved Trade for Local Markets Improved Trade for the SADC Region Expected cost ZMW 558 million kwacha (U$31 million) |
Turbo Ka-Chin Investment Consortia | Q2 2022
(May) |
December 2023 | <ref name="BS" /><ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Katete-Chanida Border Post | 55 km | Closed | Improved Trade with Mozambique
PPP signing was in October 2023 The 25 year Concession agreement worth ZMW 1.7 billion kwacha (US$79.8 million) was signed in October 2023. The concession duration included 2 years for construction and 23 years for operation and maintenance. |
Lutembwe Consulting Company
Government of Zambia |
Q1 2024 | Expected Q4 2025 | <ref name="BS">Template:Cite web</ref><ref>Template:Cite web</ref> |
| Lumwana-Kambimba Border Post | 45 km | Closed | The road will connect Lumwana with Kolwezi in Democratic Republic of the Congo
Improved Trade for the SADC Region Concession agreement signed Q3 2023 (September) |
Sandstone Consortium
Government of Zambia |
Q4 2024 | TBA | <ref name="BS" /> |
| Kasomeno-Kasenga-Chalwe-Kabila-Mwenda Road and Luapula River Bridge | 182 km | Closed | Also known as the Kasomeno-Mwendo Toll Road (KMTR) Project is a critical trade link between Luapula province in Zambia and Lubumbashi in the DRC
Will be a key connection into the Trans-African Highway network in particular the Trans-African Highway 4 (TAH 4) to Dar es Salaam, Tanzania |
GED Africa
Agence Congolaise des Grands Travaux (ACGT) Zambia Road Development Agency (RDA) |
Q3 2023 (October) | TBA | <ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| Chingola-Solwezi-Mutanda road | 205 km | Closed | The 30 year Concession agreement worth US$250 million was signed in 2021. | Bert Pave and Maintenance Limited
Government of Zambia |
Q1 2022 | TBA | <ref name=":110">Template:Cite web</ref><ref name=":210">Template:Cite web</ref><ref>Template:Cite web</ref> |
| Mutanda-Kasempa-Kaoma road | 371 km | Closed | The 25 year Concession agreement worth US$326 million was signed in 2024. | Barotse Highway Limited
Government of Zambia |
Q1 2025 | Expected 2027 | <ref name=":09">Template:Cite web</ref><ref name=":111">Template:Cite web</ref><ref name=":211">Template:Cite web</ref> |
| Solwezi-Kipushi road | 111 km | Closed | The 25 year Concession agreement worth US$145 million was signed in 2024. | Borderway Capital Investments
Government of Zambia |
Q1 2025 | Expected 2027 | <ref>Template:Cite web</ref> |
Constituency Development Funds Performance
[edit]Decentralized funds directed at enhancing public service delivery and targeted at local communities to spur economic development at ward and constituency level.<ref name=":20" />
| Year | Allocation | Disbursed | Absorption
Rate |
Absorption Value | Reporting Period | Source |
|---|---|---|---|---|---|---|
| 2022 | ZMW 4.0 billion (US$228.4 million) | ZMW 4.0 billion (US$228.4 million) | Template:Color | ZMW 2.2 billion | 1 January 2022 - 31 December 2022 | <ref name=":20" /><ref>Template:Cite web</ref> |
| 2023 | ZMW 4.4 billion (US$278.7 million) | ZMW 2.7 billion | Template:Color | ZMW 1.3 billion | 1 January 2023 - 31 December 2023 | <ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| 2024 | ZMW 4.8 billion (US$228.1 million) | N/A | N/A | N/A | N/A | <ref>Template:Cite web</ref><ref>Template:Cite web</ref> |
| 2025 | ZMW 5.6 billion (US$212.1 million) | N/A | N/A | N/A | N/A |
Private Wealth
[edit]In 2021, the total estimated value of private wealth in Zambia was US$14 billion (ZMW 238 billion)<ref>Template:Cite web</ref>
See also
[edit]- Bank of Zambia
- Economy of Africa
- Zambia
- FORGE Program
- List of companies of Zambia
- United Nations Economic Commission for Africa
- Category:Companies of Zambia
References
[edit]External links
[edit]- Zambia latest trade data on ITC Trade Map
- Barbara Gunnell, New Statesman, May 24, 2004, "A conspiracy of the rich"
- CIA World Factbook Zambia
- MBendi Zambia overview
- UNDP in Zambia official site of the United Nations Development Programme in Zambia
- World Development Movement (2004), "Zambia: Condemned to debt"
- World Bank Summary Trade Statistics Zambia
- List of companies in Zambia