ABOUT THIS COUNTRY
Zambia, in southern Africa, is a landlocked country of rugged terrain and diverse wildlife, with many parks and safari areas. On its border with Zimbabwe is famed Victoria Falls – indigenously called Mosi-oa-Tunya, or “Smoke That Thunders” – plunging a misty 108m into narrow Batoka Gorge. Spanning the Zambezi River just below the falls is Victoria Falls Bridge, a spectacular viewpoint.
The economy is projected to grow by 1.0% in 2021 and 2.0% in 2022, underpinned by recovery in the mining, tourism, and manufacturing sectors. The recovery in international demand and copper prices are positive developments, while a reduction in COVID–19 cases will boost activity both in manufacturing and tourism. However, the economy faces substantial risks that a second wave of the pandemic will impede global economic recovery and stifle demand for copper. A second wave could also undermine the revival of such critical sectors as tourism and manufacturing. Failure to effectively implement the Economic Recovery Programme, which is intended to resolve most of the critical economic constraints—such as debt sustainability and stabilization of the macroeconomic environment—could also pose a high risk to Zambia’s economy. In the banking sector, the ratio of non-performing loans is expected to increase and contribute to a drying up of bank liquidity, dampening private sector activity. Against this backdrop, poverty is expected to increase due to significant job losses in the service sector (on average, 30.6%), manufacturing (39%), personal services (39%), and tourism (70%).
Reasons to invest in Zambia:
- Peace and a stable political system
- Positive and investor-friendly economic environment
- Guarantees and security to investors with legislated rights to full and market value compensation
- Abundant natural resources presenting excellent investment and trade opportunities
- Thriving private sector
- Attractive investment incentives
- Unlimited repatriation of profits
- Progressive banking, legal and insurance services of international standards and stock exchange market
- Duty-free access to regional, wider Africa, EU and USA markets
- Good place to work and live – sub-tropical climate, friendly people, mostly English speaking, open-air lifestyle with nature reserves, game parks, rivers, lakes and waterfalls
Mining
Agriculture
Livestock
Mining
- In 2019, the country was the world’s 7th largest producer of copper.
- 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. 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
Agriculture
- The agriculture sector represented 20% GDP in 2000. 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.
Livestock
- 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
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