Economy Of Zambia

Zambia is classified as a developing country and achieved middle-income status in 2011, marking a significant milestone in its economic development trajectory. This transition reflected improvements in various economic indicators, including gross national income per capita, which allowed Zambia to move beyond the low-income classification that had characterized much of its post-independence history. The attainment of middle-income status was driven by a combination of factors, including sustained economic growth, structural reforms, and increased foreign investment, particularly in the mining sector. This status positioned Zambia among a growing group of African nations making strides toward economic diversification and improved living standards. Throughout the first decade of the 21st century, Zambia’s economy was among the fastest-growing in Africa, a period characterized by robust expansion and increased investor confidence. This rapid growth was largely fueled by a resurgence in the mining sector, particularly copper production, which benefited from rising global commodity prices. Lusaka, the capital city, experienced remarkable urban expansion during this time, earning recognition as the fastest-growing city within the Southern African Development Community (SADC). The city’s growth was driven by rural-to-urban migration, infrastructure development, and the expansion of service industries, which collectively contributed to its status as an economic hub in the region. This urbanization trend reflected broader demographic shifts and economic transformations occurring across Zambia. In recent years, however, Zambia’s economic growth has stalled due to a confluence of challenges that have strained the country’s fiscal and economic stability. One of the primary factors contributing to this slowdown has been the decline in copper prices on the global market, which significantly impacted Zambia’s export revenues and foreign exchange earnings. Additionally, the country faced substantial fiscal deficits, exacerbated by increased government spending and borrowing, which raised concerns about debt sustainability. Energy shortages have further constrained economic activity, as frequent power outages disrupted industrial production and deterred investment. These challenges have underscored the vulnerabilities inherent in Zambia’s reliance on commodity exports and highlighted the need for economic diversification and improved fiscal management. Since the 1920s, Zambia’s economy has been heavily dependent on mineral extraction, with copper mining serving as the cornerstone of economic activity. The discovery and exploitation of copper deposits in the Copperbelt region established Zambia as one of the world’s leading copper producers, shaping the country’s economic structure and labor market. Mining operations attracted significant foreign investment and facilitated infrastructure development, including railways and power generation facilities, which supported broader economic growth. This dependence on copper made Zambia’s economy highly sensitive to fluctuations in global commodity prices, a factor that has influenced economic performance throughout its history. At the time of its independence in 1964, Zambia had a higher GDP per capita than nearly all other sub-Saharan African countries, reflecting the economic advantages conferred by its mineral wealth and relatively developed infrastructure. The country’s economic position was bolstered by a well-established mining sector, a relatively educated workforce, and an export-oriented economy. However, this initial economic strength was not sustained in the decades following independence, as various internal and external factors contributed to economic decline. The early post-independence period saw efforts to nationalize key industries and implement state-led development strategies, which had mixed results in terms of economic growth and stability. Over the subsequent decades following independence, Zambia’s economy contracted, partly as a result of falling copper prices on the international market. The decline in copper revenues reduced government income and foreign exchange reserves, limiting the country’s ability to finance imports and invest in development projects. Additionally, economic mismanagement, political instability, and external shocks compounded the challenges facing the economy. Structural adjustment programs were introduced in the 1980s and 1990s in an attempt to stabilize the economy and promote growth, but these measures often resulted in social hardship and uneven economic outcomes. The contraction during this period underscored the risks associated with overreliance on a single commodity and the need for economic diversification. From the 2000s onward, Zambia’s economy resumed growth, driven by a combination of favorable global commodity prices, increased foreign direct investment, and economic reforms aimed at improving the business environment. The mining sector, particularly copper production, experienced a resurgence, contributing significantly to export earnings and government revenues. By 2019, the country’s GDP per capita, measured in current international dollars, had reached $1,305.00, reflecting improvements in income levels and economic output. This growth period was accompanied by efforts to diversify the economy, although mining remained the dominant sector. The resumption of growth contributed to poverty reduction and improvements in social indicators, although challenges related to inequality and infrastructure persisted. Zambia is one of the most urbanized countries in sub-Saharan Africa, with approximately half of its population of 16 million people residing in a few urban zones located along major transportation corridors. These urban centers, including Lusaka, Ndola, and Kitwe, serve as focal points for economic activity, commerce, and government administration. The concentration of population in these areas reflects patterns of rural-to-urban migration driven by the search for employment opportunities and access to services. In contrast, rural areas remain sparsely populated, with communities often engaged in subsistence agriculture and facing limited access to infrastructure and markets. This urban-rural divide presents both opportunities and challenges for development planning and service delivery. The main exports of Zambia include copper and cobalt, which together constitute the bulk of the country’s foreign exchange earnings. Copper, in particular, has historically been the backbone of the economy, accounting for a significant share of exports and government revenue. In addition to these traditional mineral exports, Zambia has developed a range of non-traditional exports that contribute to economic diversification. These include agricultural products such as cotton, coffee, fresh flowers, burley tobacco, gemstones, and maize (corn). The growth of these sectors has been supported by government initiatives and private sector investment aimed at expanding export markets and reducing dependence on copper. Non-traditional exports have the potential to generate employment and increase rural incomes, thereby supporting broader economic development. Zambia benefits from the African Growth and Opportunity Act (AGOA), a United States trade program that permits eligible sub-Saharan African countries to export over 6,400 duty-free goods to the U.S. market. This preferential access has provided Zambia with opportunities to expand its export base, particularly in sectors such as textiles, agriculture, and manufactured goods. AGOA has encouraged investment in export-oriented industries and facilitated integration into global value chains. The program’s benefits have been instrumental in promoting economic growth and diversification, although challenges related to competitiveness and infrastructure remain. Zambia’s participation in AGOA underscores its engagement with international trade frameworks and efforts to leverage global markets for development. Copper production in Zambia has increased steadily since 2004, driven by higher copper prices and the development of new mining operations. The expansion of existing mines and the opening of new projects have contributed to increased output, supported by improved investment conditions and technological advancements. This growth in production has enhanced export revenues and government fiscal capacity, enabling increased public spending on infrastructure and social services. The mining sector’s expansion has also generated employment and stimulated ancillary industries, although environmental and social impacts have required careful management. The steady increase in copper production reflects Zambia’s continued reliance on mineral resources as a key driver of economic activity. The maize harvest in 2005 was favorable, contributing positively to Zambia’s GDP and agricultural export performance. Good weather conditions and improved farming practices led to increased maize yields, which bolstered food security and generated surplus for export markets. Agriculture remains a critical sector for employment and rural livelihoods in Zambia, and favorable harvests have significant implications for economic stability and poverty reduction. The 2005 maize harvest exemplified the potential for agricultural growth to complement mining and support broader economic development. Government policies and international assistance have played roles in promoting agricultural productivity and market access. Zambia continues to collaborate with international organizations on poverty reduction programs, recognizing the importance of sustained support for social and economic development. In the second quarter of 2004, Zambia entered into a new lending arrangement with the International Monetary Fund (IMF), aimed at supporting macroeconomic stability and structural reforms. This partnership has facilitated access to financial resources and technical assistance, enabling the government to implement policies targeting fiscal consolidation, economic diversification, and social protection. Collaboration with multilateral institutions has been integral to Zambia’s development strategy, helping to address challenges related to poverty, inequality, and economic vulnerability. These efforts reflect a commitment to inclusive growth and sustainable development.

The British South Africa Company (BSAC), founded by the British imperialist Cecil Rhodes in the late 19th century, played a pivotal role in the economic and territorial development of what would become Zambia. The company’s extensive commercial assets and mineral rights were initially secured through the Lochner Concession, an 1892 agreement made with the Litunga, the traditional ruler of Barotseland. This concession granted the BSAC significant control over mineral exploitation and commercial activities in the region, effectively laying the groundwork for colonial economic structures centered on resource extraction. Over the decades, the BSAC maintained its dominance in the mining sector, particularly in copper, which became the cornerstone of the territory’s economy. As Zambia approached independence in 1964, the newly emerging government faced the complex challenge of asserting sovereignty over its natural resources and economic assets. One of the most pressing issues was the status of the BSAC’s mineral rights, which remained a symbol of colonial economic control. The Zambian government, under the leadership of Kenneth Kaunda and the United National Independence Party (UNIP), issued strong threats to expropriate the BSAC unless it agreed to relinquish its mineral rights. This assertive stance reflected the broader post-colonial imperative to reclaim national ownership of critical economic resources and to reduce foreign corporate influence on the country’s development trajectory. The government’s position was a clear indication of its commitment to economic nationalism and the restructuring of Zambia’s economic base in favor of indigenous control. During the colonial period, the Federation of Rhodesia and Nyasaland, established in 1953 and dissolved in 1963, had delineated distinct economic roles among its three constituent territories. Southern Rhodesia (now Zimbabwe) was tasked with providing managerial and administrative expertise, drawing on its relatively more developed settler economy and infrastructure. Northern Rhodesia, which would become Zambia, was primarily responsible for generating copper revenues, leveraging its rich mineral deposits to fuel the federation’s economy. Nyasaland (now Malawi) contributed predominantly Black labor, supplying the workforce necessary for mining and agricultural sectors across the federation. This division of labor underscored the economic interdependence of the territories but also entrenched inequalities and dependencies that complicated post-independence economic planning. With independence secured, Zambia embarked on a series of national development plans designed to guide the country’s economic growth and structural transformation. These plans were coordinated by the National Commission for Development Planning, an institution established to ensure systematic and strategic allocation of resources toward national priorities. The government’s approach emphasized state-led development, with a focus on harnessing Zambia’s natural resource wealth to finance broader economic diversification and social advancement. The planning process reflected the aspirations of a newly independent nation seeking to break free from colonial economic patterns and to establish a more equitable and sustainable economic foundation. The first of these post-independence initiatives was the Transitional Development Plan, spanning from 1964 to 1966. This initial plan concentrated on investments in infrastructure and manufacturing, recognizing the critical need to build physical and industrial capacity as a basis for economic growth. Key infrastructure projects included the expansion of transportation networks, such as roads and railways, which were essential for linking mining regions with export markets and urban centers. The manufacturing sector received targeted support to stimulate domestic production, reduce reliance on imports, and create employment opportunities. The Transitional Development Plan laid the groundwork for Zambia’s industrialization efforts and sought to capitalize on the momentum generated by independence. Following the conclusion of the Transitional Development Plan, the government introduced the First National Development Plan, covering the period from 1966 to 1971. This plan maintained the emphasis on major infrastructure and manufacturing development, aiming to consolidate gains made during the transitional phase and to accelerate economic diversification. The plan envisioned expanding industrial capacity, improving energy supply, and enhancing social services such as education and health, all of which were deemed essential for sustained development. The First National Development Plan also sought to address regional disparities and to promote balanced economic growth across the country. Through coordinated investment and policy measures, the government aimed to transform Zambia’s economy from a primarily mining-dependent structure to a more diversified and resilient system. Both the Transitional Development Plan and the First National Development Plan were largely implemented as intended and are generally regarded as successful in fostering Zambia’s early economic development. These plans contributed to significant improvements in infrastructure, increased industrial output, and enhanced social services, which collectively supported economic growth and improved living standards. The government’s proactive planning and investment strategies during this period helped to establish a foundation for future development and demonstrated the potential of state-led economic management in a newly independent African country. The relative success of these early plans also reflected a period of political stability and optimism about Zambia’s economic prospects. However, the trajectory of Zambia’s national development plans changed after 1971, as subsequent plans failed to replicate the successes of the initial two. Various factors contributed to this decline, including external economic shocks, such as fluctuations in global copper prices, which severely impacted Zambia’s revenue base. Additionally, internal challenges such as administrative inefficiencies, policy inconsistencies, and growing fiscal deficits undermined the effectiveness of later development initiatives. The ambitious goals set by the government were increasingly difficult to achieve in the face of these constraints, leading to slower economic growth and reduced progress in infrastructure and industrial expansion. Consequently, the post-1971 national development plans are often viewed as less successful in advancing Zambia’s economic transformation compared to the foundational efforts undertaken immediately after independence.

In April 1968, the Zambian government embarked on a transformative economic initiative known as the Mulungushi Economic Reforms, which marked a decisive structural shift in the nation’s economic framework. Central to these reforms was the government’s declaration of its intent to acquire majority equity holdings—typically amounting to 51 percent or more—in key foreign-owned enterprises operating within Zambia. This strategy was designed to assert greater national control over critical sectors of the economy, particularly those dominated by foreign capital. To facilitate this process, the government established a parastatal conglomerate called the Industrial Development Corporation (INDECO), which served as the vehicle through which these majority acquisitions would be executed. INDECO was envisioned as a state-owned entity that would consolidate government interests and manage investments in various industries, thereby promoting economic development under state guidance. By January 1970, the government had successfully acquired majority ownership of the Zambian operations of two of the most significant foreign mining corporations active in the country: the Anglo American Corporation and the Rhodesia Selection Trust (RST). These companies had long been dominant players in Zambia’s copper mining sector, which was the backbone of the national economy. Upon acquisition, the Anglo American Corporation’s Zambian operations were rebranded as Nchanga Consolidated Copper Mines (NCCM), while the Rhodesia Selection Trust’s assets were renamed Roan Consolidated Mines (RCM). This transfer of ownership represented a pivotal moment in Zambia’s post-independence economic history, as it shifted control of the copper industry from foreign hands to the Zambian government, reflecting a broader trend of resource nationalism prevalent in many newly independent African states during this period. Following these acquisitions, the government took further steps to consolidate its control over the mining sector by establishing the Mining Development Corporation (MINDECO), a new parastatal entity tasked with overseeing the operations of the newly nationalized mines. MINDECO was responsible for managing the day-to-day affairs of the mining industry, coordinating production, and ensuring that mining activities aligned with national economic objectives. In parallel, the government created the Finance and Development Corporation (FINDECO) to extend state influence into the financial sector, particularly by gaining control over insurance companies and building societies. This expansion of parastatal enterprises was designed to integrate various aspects of the economy under government oversight, thereby fostering coordinated development and reducing reliance on foreign capital and management. Despite the government’s assertive nationalization efforts, certain foreign-owned banks operating in Zambia successfully resisted similar takeover attempts. Notably, prominent international banks such as Barclays, Standard Chartered, and Grindlays maintained their independence and continued to operate without government acquisition. These institutions retained significant influence over Zambia’s financial sector, highlighting the limitations of the Mulungushi reforms in fully extending state control across all economic domains. The resilience of these foreign banks underscored the complexities of economic nationalism in a globalized financial environment and the challenges faced by the Zambian government in asserting sovereignty over all facets of its economy. In 1971, the government undertook a major organizational restructuring by consolidating INDECO, MINDECO, and FINDECO under a single umbrella parastatal entity known as the Zambia Industrial and Mining Corporation (ZIMCO). This consolidation created one of the largest companies in sub-Saharan Africa, reflecting the scale of Zambia’s state-led economic ambitions. The formation of ZIMCO was intended to streamline management, improve coordination among the various parastatals, and enhance the efficiency of government-owned enterprises. President Kenneth Kaunda assumed the role of chairman of the board of ZIMCO, symbolizing the centrality of the corporation to the national economic agenda and the direct involvement of the highest level of political leadership in economic affairs. ZIMCO thus became a powerful instrument through which the state sought to control and develop key sectors of the economy, particularly mining and industry. The transition to full government control of mining operations was further solidified in 1973 when the management contracts previously held by Anglo American and Rhodesia Selection Trust for the day-to-day operations of the mines were terminated. This move ended the involvement of these foreign companies in the operational management of Zambia’s copper mines, transferring complete operational authority to government-appointed managers under the auspices of ZIMCO and its subsidiaries. The termination of these contracts marked the culmination of the nationalization process in the mining sector and reflected the government’s commitment to exercising sovereign control over its most valuable natural resource. This shift also represented a significant challenge, as the government now bore full responsibility for the technical and financial management of the mining industry, which required substantial expertise and capital investment. In 1982, the government further consolidated the mining sector by merging Nchanga Consolidated Copper Mines (NCCM) and Roan Consolidated Mines (RCM) to form Zambia Consolidated Copper Mines Ltd (ZCCM). This merger aimed to create a more unified and efficient organizational structure for the mining industry, reducing duplication and improving coordination across the various mining operations. ZCCM became the principal state-owned mining company, responsible for the majority of copper production in Zambia. The consolidation under ZCCM reflected ongoing efforts to strengthen state control and improve the performance of the mining sector, which remained the cornerstone of the national economy despite emerging challenges. The early 1970s also witnessed significant external economic shocks that severely impacted Zambia’s export earnings and overall economic stability. In 1973, a sharp increase in global oil prices triggered widespread inflationary pressures and increased the cost of imports for oil-dependent countries like Zambia. This was soon followed by a dramatic slump in copper prices in 1975, which had a devastating effect on Zambia’s export revenues. Copper had accounted for an overwhelming 95 percent of Zambia’s export earnings in 1973, underscoring the country’s heavy dependence on this single commodity. However, by 1975, the value of copper on the world market had halved, leading to a severe reduction in foreign exchange earnings. This decline exposed the vulnerabilities of Zambia’s mono-commodity export structure and precipitated a period of economic crisis. By 1976, the cumulative effects of falling copper prices and rising import costs plunged Zambia into a balance-of-payments crisis. The country struggled to meet its external financial obligations, leading to the accumulation of substantial debt to the International Monetary Fund (IMF) and other international creditors. This financial distress forced the government to abandon the Third National Development Plan (1978–83), which had outlined long-term economic goals and investment priorities. Instead, the government shifted its focus toward crisis management and short-term stabilization measures aimed at addressing immediate fiscal and balance-of-payments challenges. The abandonment of the development plan marked a setback for Zambia’s economic aspirations and highlighted the difficulties of sustaining growth in the face of external shocks and structural weaknesses. Throughout the 1980s, Zambia’s economic difficulties deepened, and by the mid-decade, the country had become one of the most heavily indebted nations globally relative to its gross domestic product (GDP). The mounting debt burden constrained government spending and limited the capacity for investment in critical sectors. In response, the IMF imposed stringent economic stabilization and restructuring programs designed to reduce Zambia’s dependence on copper exports and restore macroeconomic stability. These programs required the government to implement a range of policy reforms aimed at liberalizing the economy and improving fiscal discipline. The IMF’s proposed measures included ending price controls that had been used to regulate the cost of goods and services, devaluing the kwacha—the national currency—to enhance export competitiveness, and reducing government expenditure to address fiscal deficits. Additionally, the programs called for the cancellation of subsidies on essential items such as food and fertilizer, which had been provided to support vulnerable populations and the agricultural sector. The IMF also advocated for increasing prices for farm produce to encourage agricultural productivity and reduce reliance on imports. These policy prescriptions reflected the orthodox structural adjustment framework promoted by the IMF during this period, emphasizing market liberalization and fiscal austerity. The removal of food subsidies under President Kenneth Kaunda’s government had immediate and profound social consequences. The sharp increases in basic food prices triggered widespread riots and civil unrest among the urban population, who faced rising living costs and declining purchasing power. These disturbances underscored the social tensions generated by austerity measures and highlighted the challenges of implementing IMF-mandated reforms in a context of widespread poverty and economic hardship. The unrest also strained the government’s political legitimacy and complicated efforts to maintain social stability during a period of economic crisis. In May 1987, facing mounting economic and social pressures, President Kaunda broke with the IMF and introduced a New Economic Recovery Programme in 1988. This initiative sought to chart an alternative path to economic stabilization and growth, diverging from the strict structural adjustment policies previously imposed. However, despite its intentions, the New Economic Recovery Programme failed to resolve the underlying economic crisis. The program was unable to restore sustainable growth, reduce debt burdens, or alleviate social hardships, leading to continued economic stagnation and political discontent. By 1989, recognizing the limitations of his earlier approach, Kaunda sought to re-engage with the IMF and international financial institutions in hopes of securing new support and assistance. In 1990, he announced plans to partially privatize parastatal companies, marking a significant policy reversal from the earlier nationalization agenda of the Mulungushi Reforms. This shift reflected growing recognition of the need to introduce market-oriented reforms and attract private investment to revive the economy. The proposed privatizations aimed to improve efficiency, reduce fiscal burdens on the government, and stimulate economic diversification beyond the mining sector. Despite these efforts to adapt and retain political power, Kaunda ultimately faced mounting opposition and demands for political reform. In 1991, he called multiparty elections, a departure from the one-party state system that had prevailed since independence. In these elections, Kaunda was defeated by the Movement for Multiparty Democracy (MMD), signaling a major political transition in Zambia. Demonstrating respect for democratic principles, Kaunda peacefully transferred power to the new government, setting an important precedent for political stability and democratic governance in the country. Kenneth Kaunda formally left office on 2 November 1991, coinciding with the inauguration of Frederick Chiluba, the leader of the MMD, as the new president of Zambia. Chiluba’s ascension marked the beginning of a new era characterized by economic liberalization and political pluralism. The transition reflected the culmination of a decade-long process of economic and political transformation initiated by the Mulungushi Economic Reforms and shaped by subsequent challenges and policy responses. This period remains a critical chapter in Zambia’s post-independence history, illustrating the complexities of state-led development, economic crisis management, and democratic transition.

Zambia operates under a unitary economic system of government, a framework that significantly influenced the policy environment during Frederick Chiluba’s administration from 1991 to 2001. Chiluba came to power following democratic multi-party elections held in November 1991, which marked a pivotal shift from the previous one-party state system. Upon assuming office, his government committed itself to implementing extensive economic reforms aimed at revitalizing the country’s faltering economy. This commitment was underscored by a recognition of the urgent need to transition Zambia’s economy from a heavily state-controlled model toward a more liberalized and market-oriented system. The transformation of Zambia’s economy toward a free market system began in earnest at the end of 1991, immediately following the change in government. This shift was largely motivated by the pressing necessity to address a severe economic crisis characterized by stagnation, hyperinflation, and declining productivity. Additionally, the government sought to secure essential financial support from international institutions such as the World Bank and the International Monetary Fund (IMF), which conditioned their assistance on the adoption of structural adjustment programs and market-friendly reforms. These reforms aimed to stabilize the economy, promote private sector development, and attract foreign investment, thereby reversing years of economic decline. A central and highly challenging aspect of Chiluba’s reform agenda was the privatization of Zambia’s copper mines, which constituted the backbone of the country’s economy and its primary export earner. The copper mining sector had been dominated by the state-owned Zambian Consolidated Copper Mines (ZCCM), a giant parastatal company that controlled the majority of copper production. The government embarked on a comprehensive program to privatize not only the copper mines but also numerous other state-owned industries, thereby reducing the public sector’s dominance in the economy. This process involved complex negotiations with potential investors, restructuring of enterprises, and the establishment of regulatory frameworks to facilitate private ownership. Concurrently, the government sought to maintain positive real interest rates to encourage savings and investment, a policy aimed at fostering a more dynamic financial sector. In addition to privatization efforts, the government undertook significant measures to liberalize the economy by eliminating exchange controls and endorsing free market principles. The removal of exchange controls was intended to facilitate foreign exchange transactions, improve the efficiency of the foreign exchange market, and attract foreign capital. These reforms signaled a clear departure from the previous protectionist policies and state interventionism that had characterized Zambia’s economy. However, despite these initiatives, there was uncertainty regarding the continuity of these reforms under the succeeding administration of Levy Mwanawasa, who took office in 2002. Questions remained about whether Mwanawasa’s government would maintain the momentum of economic liberalization and pursue further privatization efforts, reflecting broader concerns about the political sustainability of the reform agenda. Despite the progress made, Zambia still faced significant unresolved challenges during and after Chiluba’s tenure. One of the most pressing issues was the large size of the public sector, which continued to account for approximately 44% of total formal employment. This disproportionate public sector presence not only strained government finances but also impeded efforts to improve efficiency and productivity within the economy. Furthermore, the delivery systems within the social sector, including education, health, and social welfare services, remained inadequate and required substantial reform to meet the needs of the population effectively. These shortcomings highlighted the complexity of Zambia’s economic transformation and the need for comprehensive strategies beyond privatization and liberalization. The privatization of ZCCM represented a landmark event in Zambia’s economic reform process. After a prolonged and often contentious process, the final transfer of ZCCM’s assets to private investors was completed on March 31, 2000. This milestone marked the culmination of efforts to dismantle the state’s monopoly over the copper mining industry and was expected to enhance efficiency, increase production, and attract much-needed foreign investment. The successful privatization of ZCCM also had important implications for Zambia’s relationship with international donors. Following the completion of the privatization, international donors resumed balance-of-payment support to Zambia, signaling renewed confidence in the country’s economic management and reform trajectory. While the resumption of balance-of-payment support provided Zambia with short-term fiscal relief, it was widely acknowledged that such assistance was not a comprehensive solution to the country’s long-term debt problems. The support offered the government temporary breathing space to continue implementing economic reforms and stabilize the economy, but it did not address the underlying structural issues contributing to Zambia’s debt burden. Consequently, the government remained under pressure to pursue additional measures to achieve sustainable debt management and fiscal discipline. In managing its external financial obligations, the government expended a significant portion of its foreign exchange reserves to intervene in the exchange rate mechanism. These interventions were aimed at stabilizing the kwacha, Zambia’s national currency, to prevent excessive volatility and maintain competitiveness. However, continued intervention in the foreign exchange market carried risks, particularly in relation to Zambia’s eligibility for debt relief programs. Excessive depletion of foreign reserves could undermine the country’s macroeconomic stability and jeopardize its standing with international creditors and donors, thereby complicating efforts to secure favorable debt relief terms. In 2000, Zambia qualified for the Heavily Indebted Poor Countries (HIPC) debt relief initiative, a program designed to provide substantial debt reduction to eligible low-income countries burdened by unsustainable debt levels. Qualification for the HIPC initiative was contingent upon the government meeting specific performance criteria, including the implementation of sound macroeconomic policies, structural reforms, and poverty reduction strategies. The HIPC program was expected to offer Zambia a sustainable long-term solution to its debt challenges by significantly reducing its external debt stock and freeing up resources for development priorities. This milestone represented a critical step toward restoring fiscal stability and fostering economic growth in the years following Chiluba’s administration.

On 2 January 2002, Levy Mwanawasa, representing the Movement for Multi-Party Democracy (MMD), was declared the winner of the Zambian presidential election. Despite the official announcement, numerous domestic and international observers contended that the opposition candidate had actually secured victory, casting doubts on the legitimacy of the electoral process. The contested election results reflected ongoing tensions within Zambia’s political landscape, which had been marked by multiparty competition since the early 1990s. Nonetheless, Mwanawasa’s ascension to the presidency marked the beginning of a new phase in Zambia’s economic and political trajectory. In January 2003, the Zambian Government formally communicated to the International Monetary Fund (IMF) and the World Bank its intention to renegotiate certain performance criteria that had been established under previous economic reform agreements. Specifically, the government sought to revisit conditions related to the privatization of key state-owned enterprises, including the Zambia National Commercial Bank and the national telephone and electricity utilities. These renegotiations underscored the government’s cautious approach toward liberalization, reflecting concerns about the social and economic impacts of rapid privatization on essential services and the broader population. The move was indicative of Zambia’s efforts to balance international financial institution demands with domestic priorities. President Mwanawasa’s administration garnered considerable favor among foreign investors, a sentiment largely attributable to his vigorous anti-corruption campaign. Upon taking office, Mwanawasa prioritized the eradication of corruption, which had long plagued Zambia’s political and economic systems, undermining development and investor confidence. His administration implemented measures aimed at increasing transparency, strengthening institutions, and prosecuting corrupt officials, thereby improving the country’s investment climate. This commitment to good governance helped restore trust among international investors and contributed to a more stable economic environment. Under Mwanawasa’s leadership, Zambia experienced a significant influx of foreign direct investment, with the mineral sector emerging as the primary driver of economic growth. The country’s abundant mineral resources, particularly copper, attracted substantial capital inflows, which fueled expansion in mining activities and related industries. This growth in the mineral sector not only boosted export earnings but also stimulated ancillary sectors such as construction, manufacturing, and services. The revitalization of mining operations played a central role in Zambia’s broader economic recovery during this period. Mwanawasa’s economic policies yielded notable successes, including the reduction of inflation to single-digit levels by 2006—a milestone that had eluded Zambia for more than a quarter of a century. Prior to this achievement, the country had endured persistent double-digit inflation rates that eroded purchasing power and hindered economic stability. Through prudent fiscal management, monetary discipline, and structural reforms, the government was able to stabilize prices and create a more predictable economic environment. This accomplishment was widely regarded as a critical step toward sustainable development and improved living standards. The benefits of Mwanawasa’s economic reforms were not confined solely to macroeconomic indicators; they also translated into tangible improvements for segments of the Zambian population living in poverty. By fostering economic growth and stabilizing the economy, the government was able to allocate resources toward social programs and poverty alleviation initiatives. Although challenges remained, there was evidence that the economic gains were being partially redistributed to poorer communities, contributing to enhanced access to basic services and improved livelihoods. This partial trickle-down effect underscored the importance of inclusive growth strategies in Zambia’s development agenda. During this decade, Zambia’s tourism sector experienced significant expansion, driven in part by the influx of tourists and white farmers displaced from neighboring Zimbabwe amid political and economic turmoil there. Many of these individuals relocated to Zambia, bringing with them capital, expertise, and demand for tourism-related services. This migration helped to invigorate the sector, creating new opportunities for investment and employment. The growth of tourism complemented the country’s mineral-driven economy, diversifying sources of revenue and enhancing Zambia’s international profile as a travel destination. The town of Livingstone, situated near the iconic Victoria Falls, emerged as a focal point of this tourism boom. Once a modest settlement, Livingstone underwent substantial development during this period, transforming into a significant tourist hub. Investments in infrastructure, hospitality, and recreational facilities elevated the town’s capacity to attract and accommodate visitors from around the world. The proximity to Victoria Falls, one of Africa’s most renowned natural wonders, further enhanced Livingstone’s appeal, making it a cornerstone of Zambia’s expanding tourism industry. Zambia also benefited from substantial foreign aid and debt relief during Mwanawasa’s presidency, outcomes that were closely linked to the government’s commitment to economic liberalization and reform. The country’s efforts to implement market-friendly policies and improve governance attracted support from international donors and financial institutions. Debt relief initiatives, including those under the Heavily Indebted Poor Countries (HIPC) program, alleviated Zambia’s debt burden, freeing up resources for development spending. This external assistance played a vital role in stabilizing the economy and supporting ongoing reforms. Overall, Zambia’s economic growth rate improved markedly during Mwanawasa’s tenure, averaging approximately 6% per annum. This robust growth was driven primarily by the revitalized mining sector, increased foreign investment, and expanding tourism, supported by sound macroeconomic management and structural reforms. The sustained growth contributed to improved fiscal revenues and greater economic resilience, positioning Zambia as one of the more dynamic economies in sub-Saharan Africa during the mid-2000s. On 29 June 2008, President Mwanawasa suffered a stroke while attending an African Union summit in Egypt, an event that precipitated a significant shift in Zambia’s political leadership. Following Mwanawasa’s incapacitation, Vice President Rupiah Banda assumed the role of acting president and was subsequently confirmed as the official president. Banda’s ascendancy occurred amidst a period of both political uncertainty and economic transition, as the country grappled with maintaining the momentum of reforms initiated under Mwanawasa. Upon assuming office, Rupiah Banda faced internal divisions within the MMD, the ruling party that had dominated Zambian politics for over a decade. Recognizing the challenges posed by factionalism and political fragmentation, Banda pledged to “unite the party and the entire nation,” signaling his intent to consolidate power and foster national cohesion. Additionally, he committed to “continue implementing [Mwanawasa’s] programs,” suggesting a degree of policy continuity aimed at sustaining the economic and governance reforms that had characterized the previous administration. Despite these initial promises, Banda’s tenure saw a notable dismantling of much of Mwanawasa’s anti-corruption framework. The institutions and mechanisms established to combat corruption were weakened or sidelined, leading to a resurgence of corrupt practices within government and public administration. This erosion of anti-corruption measures undermined investor confidence and compromised efforts to promote transparency and accountability. The rollback of these reforms marked a departure from the governance standards set by Mwanawasa and had significant implications for Zambia’s political and economic environment. The weakening of anti-corruption initiatives under Banda, combined with the adverse effects of the global economic downturn triggered by the Great Recession, contributed to a prolonged period of increased inflation in Zambia. The global financial crisis, which began in 2007 and intensified in 2008, disrupted trade, investment flows, and commodity prices, all of which adversely affected Zambia’s export-dependent economy. Inflationary pressures mounted as the government struggled to maintain fiscal discipline and monetary stability amid declining revenues and external shocks. This period of economic strain contrasted with the relative stability and growth experienced earlier in the decade and highlighted the vulnerabilities of Zambia’s economy to both domestic governance challenges and international economic fluctuations.

In September 2011, Michael Sata, a prominent social democrat and leader of the Patriotic Front (PF), secured a decisive victory in the Zambian general election. His campaign was marked by a strong commitment to improving the living and working conditions of Zambian employees, promising reforms aimed at addressing labor rights and boosting employment opportunities. Sata’s political platform resonated with many Zambians who sought economic empowerment and greater social equity, positioning him as a transformative figure in the country’s political landscape. Prior to his election, Sata had been known for his critical stance on foreign investment, particularly regarding Chinese involvement in Zambia’s economy. However, in a notable shift that reflected the evolving economic realities of the country, he publicly altered his position to embrace Chinese investment, recognizing its potential to drive infrastructure development and economic growth. Michael Sata’s presidency, however, was cut short when he passed away on 28 October 2014. His death precipitated a leadership transition, with Edgar Lungu succeeding him as president. Lungu, who had served as Minister of Defence and Minister of Home Affairs under Sata’s administration, inherited the challenges and ambitions of the Patriotic Front government. His tenure continued many of the development initiatives begun under Sata, particularly those focused on infrastructure expansion and economic modernization. Between 2011 and 2020, Zambia underwent a significant infrastructure boom that sought to modernize the country’s physical assets and stimulate economic activity. A flagship project during this period was the development of the Kafue Gorge Lower Power Station, a hydroelectric facility designed to increase the nation’s electricity generation capacity. The project was part of a broader strategy to address chronic power shortages that had hindered industrial growth and to support the expanding urban population’s energy needs. Alongside energy infrastructure, the government invested heavily in sports and transportation facilities, recognizing their importance for national pride and economic development. Two major multi-purpose stadiums were constructed during this decade: the Levy Mwanawasa Stadium and the National Heroes Stadium. The Levy Mwanawasa Stadium, located in Ndola, was named after the former president and became a key venue for both sporting and cultural events, reflecting Zambia’s aspirations to host international competitions and foster community engagement. The National Heroes Stadium in Lusaka, the capital city, was similarly designed to serve as a premier facility for football matches and other large-scale events, symbolizing the country’s commitment to enhancing its sports infrastructure and providing modern amenities to its citizens. In addition to sports infrastructure, significant expansions were undertaken at three of Zambia’s international airports: Kenneth Kaunda International Airport in Lusaka, Harry Mwanga Nkumbula International Airport in Livingstone, and Simon Mwansa Kapwepwe International Airport in Ndola. These upgrades aimed to improve passenger capacity, enhance safety standards, and facilitate increased air traffic, thereby boosting tourism and international trade. The modernization of these airports was critical to integrating Zambia more fully into regional and global transport networks, supporting economic diversification efforts beyond the traditional mining sector. Complementing these large-scale projects, the government launched the Pave Zambia 2000 initiative, a comprehensive program focused on creating and repairing major urban roads throughout the country. This project sought to alleviate transportation bottlenecks, reduce travel times, and improve access to markets and services for both urban and rural populations. By upgrading the road network, the government aimed to stimulate economic activity, enhance connectivity, and promote regional integration within Zambia and with neighboring countries. Despite these ambitious infrastructure developments, the period from 2011 to 2020 was also characterized by a significant increase in Zambia’s national debt, which ultimately slowed economic progress. The government’s extensive borrowing to finance infrastructure projects and other expenditures led to a rapid accumulation of debt, raising concerns about fiscal sustainability and debt servicing capacity. This mounting debt burden constrained public finances and limited the government’s ability to invest in other critical sectors such as health and education. Economic challenges during this decade were further exacerbated by widespread corruption, which undermined governance and eroded public trust in institutions. Corruption scandals involving public officials and mismanagement of resources diverted funds away from development priorities and hindered efforts to promote transparency and accountability. These governance issues compounded the difficulties faced by the economy, reducing investor confidence and impeding efficient allocation of resources. The global COVID-19 pandemic, which emerged in early 2020, dealt an additional blow to Zambia’s economy. The pandemic disrupted trade, tourism, and domestic economic activity, leading to contractions in key sectors and exacerbating existing vulnerabilities. The combination of high debt levels, governance challenges, and the pandemic’s economic shock contributed to weak gross domestic product (GDP) growth during the latter part of the decade. Zambia experienced a recession in both 2019 and 2020, reflecting the cumulative impact of these adverse factors on the country’s economic performance. Over the course of the decade, Zambia’s GDP contracted significantly, declining from approximately US$29 billion in 2010 to US$19 billion in 2020. This reduction in economic output underscored the difficulties faced by the country in sustaining growth amid mounting fiscal pressures and external shocks. Concurrently, Zambia’s national debt surged dramatically, rising from 16% of GDP in 2010 to an alarming 140% of GDP by 2020. This rapid escalation in debt levels highlighted the growing financial risks confronting the government and raised concerns among international creditors and financial institutions. In November 2020, Zambia made headlines as it became the first African country to default on a debt repayment during the coronavirus pandemic. The government opted not to repay a US$42.5 million eurobond, marking a significant moment in the continent’s economic history. This default reflected the severe fiscal constraints facing Zambia and underscored the challenges of managing sovereign debt in a context of global economic uncertainty and domestic economic distress. The decision to default had wide-ranging implications for Zambia’s creditworthiness and its ability to access international financial markets in the future.

In August 2021, Zambia underwent a significant political transition with the election of a new government led by Hakainde Hichilema’s United Party for National Development (UPND). This administration campaigned on a platform that emphasized economic revitalization, particularly focusing on stimulating job growth to address the country’s high unemployment rates. Upon assuming office, the UPND government moved swiftly to implement policies aimed at fostering employment opportunities and enhancing local development initiatives. One of the earliest and most ambitious fiscal measures introduced was the substantial increase in the Constituency Development Fund (CDF), a key instrument for channeling government resources directly to local constituencies. The budget for the 2022 fiscal year, unveiled in October 2021, reflected this commitment by raising the CDF allocation from ZMW 1.6 million (approximately US$91,000) to ZMW 25.7 million (around US$1.5 million) for each of Zambia’s 156 constituencies. This dramatic increase elevated the total local development funding from ZMW 250 million (US$14.2 million) to ZMW 4 billion (US$228.4 million), signaling a decisive shift towards decentralization and empowering local governments to manage development projects more effectively. The UPND government also prioritized employment creation within critical public sectors, particularly education and health. Plans were set to recruit 30,000 new teachers and 11,200 health workers to address shortages and improve service delivery nationwide. By mid-July 2022, these targets had been met and slightly exceeded, with 30,496 teachers recruited to bolster the education system. Similarly, by the end of July 2022, the government had employed 11,276 health workers, including doctors, nurses, and ancillary staff such as drivers, thereby strengthening the healthcare infrastructure. These recruitment drives were part of a broader strategy to not only create jobs but also improve the quality of essential public services, which are vital for sustainable economic growth and social development. In parallel with social sector investments, the government sought to enhance Zambia’s industrial and mining capacity, particularly focusing on copper production, which remains a cornerstone of the country’s economy. To stimulate growth in this sector, the government reintroduced the deductibility of mineral royalty payments for corporate income tax assessment purposes. This policy adjustment aimed to incentivize mining companies to increase production, with a target of raising copper output to 3 million tonnes annually within the next decade. While this measure was expected to improve investment attractiveness and operational efficiency in the mining sector, the tangible outcomes of these policy changes remained pending as of mid-2022, awaiting further data on production levels and fiscal impacts. At the international level, Zambia engaged with multilateral financial institutions to secure support for its economic recovery and development agenda. During the 2022 IMF-World Bank Spring Meetings, the World Bank announced a commitment to provide US$560 million in funding for various projects across Zambia throughout the year. This injection of capital was intended to support infrastructure development, social programs, and economic diversification efforts, thereby complementing the government’s domestic initiatives. The collaboration with international partners was crucial for Zambia, given its ongoing challenges with debt sustainability and fiscal consolidation. Addressing the country’s debt burden became a central focus of the government’s economic policy in 2022. In July of that year, the Zambian government initiated negotiations with creditors holding undisbursed loans, aiming to facilitate the formal cancellation of approximately US$2.0 billion in debt. This move was part of a broader debt management strategy designed to reduce the country’s liabilities and free up resources for financing ongoing projects through government revenues rather than external borrowing. The cancellation of these loans was expected to alleviate fiscal pressures and improve Zambia’s creditworthiness in the eyes of international lenders and investors. Investment promotion also featured prominently in the government’s economic agenda. In early August 2022, the Zambia Development Agency (ZDA), a quasi-governmental institution operating under the Ministry of Commerce, Trade and Industry, reported that investment pledges totaling US$3.8 billion had been secured in the first half of 2022. These pledges targeted key sectors such as agriculture, tourism, construction, and mining, reflecting a diversified approach to economic development. The ZDA projected that these investments had the potential to generate approximately 19,000 new jobs, thereby contributing to the government’s broader employment creation objectives. The agency’s role in facilitating foreign and domestic investment was critical in mobilizing private sector participation in Zambia’s growth trajectory. The government’s fiscal consolidation efforts were further underscored by its engagement with the International Monetary Fund (IMF). After securing a crucial Staff-Level Agreement with the IMF in early December 2021, Zambia undertook the politically sensitive step of cutting fuel subsidies later that month. This measure was a key condition for unlocking a US$1.4 billion financing package from the IMF, aimed at restoring macroeconomic stability and supporting structural reforms. The subsidy removal was intended to reduce fiscal deficits and improve the efficiency of public spending, although it also posed short-term challenges in terms of inflation and public acceptance. By the end of July 2022, significant progress had been made in Zambia’s debt restructuring process. The Official Creditor Committee (OCC), which was co-chaired by China and France and vice-chaired by South Africa, reached an agreement to provide financing assurances under the G20 Common Framework for debt treatment. This development was pivotal in enabling Zambia to obtain final approval from the IMF for the US$1.4 billion bailout under the Extended Credit Facility (ECF). The cooperation among multilateral, bilateral, and commercial creditors under the OCC framework represented a coordinated effort to address Zambia’s debt challenges while supporting its economic recovery. In early August 2022, Zambia’s Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, announced that the IMF Executive Board was expected to convene at the end of August to approve the loan programme. This announcement signaled the nearing culmination of months of negotiations and reform implementation. Subsequently, on 31 August 2022, the IMF board officially approved the US$1.3 billion Extended Credit Facility to assist Zambia in restoring fiscal stability. This approval marked a significant milestone in Zambia’s engagement with the international financial community and provided critical financial resources to support the government’s reform agenda. Debt restructuring efforts continued into 2023 and 2024, reflecting the ongoing challenges Zambia faced in managing its external liabilities. In June 2023, Zambia reached an agreement in principle to restructure approximately US$6.3 billion of debt with its bilateral lenders. This agreement laid the groundwork for more detailed negotiations and formal arrangements to address the country’s debt sustainability. Subsequently, in October 2023, Zambia signed a memorandum of understanding (MoU) with its bilateral creditors to restructure the same amount of debt. The MoU outlined that the terms would be implemented through bilateral agreements with each member of the Official Creditor Committee (OCC), ensuring a coordinated and orderly approach to debt resolution. The debt restructuring process reached a significant conclusion in March 2024, when Zambia finalized a 76.5 billion kwacha (equivalent to US$3.0 billion) debt restructuring deal with bondholders. This agreement included substantial concessions from bondholders, providing the government with much-needed debt relief to support its fiscal and economic objectives. Under the terms of the March 2024 agreement, bondholders agreed to forgo approximately 21.4 billion kwacha (US$840 million) of their claims, effectively reducing the principal amount owed. Additionally, they provided cash flow relief amounting to approximately 63.8 billion kwacha (US$2.5 billion) during the period covered by the IMF programme, thereby easing Zambia’s debt service obligations and improving its fiscal space. This restructuring was a critical component of Zambia’s broader strategy to restore economic stability and foster sustainable development.

In April 2022, the Government of Zambia formally established the Public-Private Dialogue Forum (PPDF) as an institutional mechanism to strengthen collaboration and communication between public sector authorities and private sector actors. This initiative was conceived in response to the recognition that sustainable economic development and job creation in Zambia hinged significantly on the active participation and growth of the private sector. By creating the PPDF, the government sought to institutionalize a platform where representatives from various government ministries, agencies, and departments could engage directly and constructively with business leaders, industry associations, investors, and other private stakeholders. The foundational objective of the PPDF was to unlock the latent potential of Zambia’s private sector, positioning it as a central engine for economic transformation and employment generation. Historically, the private sector in Zambia faced numerous challenges that constrained its ability to expand and contribute fully to the country’s Gross Domestic Product (GDP). These challenges included regulatory hurdles, infrastructural deficits, limited access to finance, and bureaucratic inefficiencies. The forum was thus designed not only to facilitate dialogue but also to catalyze reforms and initiatives that would enable the private sector to overcome these obstacles and thrive in a competitive environment. Structurally, the PPDF provides a formalized and continuous platform for interaction between government officials and private sector representatives. This platform enables stakeholders to share insights, raise concerns, and collaboratively develop solutions to pressing economic and business issues. The forum’s design emphasizes inclusivity and transparency, ensuring that diverse voices from different sectors and regions of Zambia are heard. By institutionalizing such dialogue, the PPDF seeks to foster mutual understanding and trust, which are essential for effective policy formulation and implementation that reflects the realities and needs of the business community. A central focus of the Public-Private Dialogue Forum has been the identification and resolution of bottlenecks that have historically impeded private sector growth in Zambia. These bottlenecks encompass a range of structural and systemic challenges, such as cumbersome regulatory frameworks, delays in licensing and permits, inadequate infrastructure including energy and transport, and limited access to credit and investment capital. Through regular meetings and working groups, the PPDF has facilitated targeted discussions aimed at diagnosing these issues and proposing actionable recommendations to government policymakers. This problem-solving approach has enabled the forum to serve as a conduit for translating private sector concerns into concrete policy reforms and administrative improvements. By fostering continuous engagement and collaborative problem-solving, the PPDF aims to enhance the overall business environment in Zambia. The forum’s activities contribute to creating a more predictable, efficient, and enabling landscape for private enterprises, which is critical for attracting both domestic and foreign investment. Improved dialogue and cooperation between the public and private sectors are expected to stimulate private sector-led economic growth, thereby contributing to job creation, poverty reduction, and broader socio-economic development. The establishment of the PPDF reflects Zambia’s commitment to leveraging public-private partnerships as a strategic approach to economic governance and inclusive growth.

In May 2022, the inaugural European Union (EU)-Zambia Economic Forum was officially launched in Lusaka, marking a significant milestone in the economic relations between Zambia and the European Union. The event was presided over by Zambia’s President Hakainde Hichilema and was conducted under the thematic focus of ‘Economic transformation through green growth.’ This theme underscored the shared commitment of both parties to pursue sustainable development strategies that integrate environmental considerations with economic advancement. The forum sought to highlight the potential for green growth to act as a catalyst for economic transformation, emphasizing the importance of environmentally sustainable practices in sectors such as agriculture, energy, and manufacturing, which are critical to Zambia’s economic landscape. The forum was designed as a high-level gathering that brought together a diverse array of stakeholders from multiple sectors. Attendees included entrepreneurs who represented the private sector’s innovative and investment potential, experts with specialized knowledge in economic development and green technologies, and financial institutions capable of providing the necessary capital and financial instruments to support growth initiatives. Additionally, innovators who are driving technological advancements and policy decision-makers responsible for creating enabling environments for trade and investment were present. Participants hailed not only from Zambia but also from the European Union and its 27 member states, reflecting the forum’s role as a transcontinental platform for dialogue and collaboration. This broad representation facilitated a comprehensive exchange of ideas and experiences, helping to identify opportunities for mutual benefit and cooperation. Among the distinguished guests were two prominent commissioners who played key roles in shaping agricultural and trade policies at the continental and international levels. Janusz Wojciechowski, the EU Commissioner for Agriculture, attended the forum, bringing with him expertise in agricultural policy frameworks, rural development, and sustainable farming practices. His presence highlighted the importance of agriculture as a sector for value addition and economic diversification in Zambia, as well as the EU’s interest in supporting sustainable agricultural development in partner countries. Alongside him was Albert M. Muchanga, the Commissioner for Trade and Industry of the African Union Commission, whose participation emphasized the forum’s alignment with broader African continental trade and industrialization agendas. Muchanga’s involvement underscored the significance of regional integration and industrial policy in fostering economic growth and enhancing Africa’s trade relations with external partners such as the EU. The establishment of the EU-Zambia Economic Forum represented a strategic initiative aimed at deepening economic ties and fostering sustainable development between the two partners. The forum was conceived as a dedicated platform to promote key economic objectives including employment generation, value addition to raw materials, and increased trade volumes. Employment creation was a central focus, recognizing the critical need to address unemployment and underemployment in Zambia by stimulating sectors capable of absorbing labor, particularly youth and women. Value addition was prioritized to encourage the processing of raw commodities within Zambia, thereby enhancing the country’s export profile and increasing the economic benefits derived from its natural resources. The forum also sought to expand trade between the EU and Zambia, facilitating greater market access and diversification of export products, which would contribute to Zambia’s economic resilience and growth. To achieve these objectives, the forum was designed to facilitate both business-to-business (B2B) and business-to-government (B2G) collaboration. The B2B interactions aimed to create direct linkages between enterprises in Zambia and those in the EU, enabling partnerships, joint ventures, and knowledge transfer that could enhance competitiveness and innovation. These interactions provided opportunities for Zambian businesses to access new technologies, investment capital, and international markets, while EU companies could explore emerging opportunities in Zambia’s growing economy. Simultaneously, the B2G engagements sought to foster dialogue between private sector actors and government authorities, enabling the identification and resolution of regulatory, infrastructural, and policy challenges that might impede trade and investment. This dual approach was intended to create an enabling environment that supports sustainable economic synergies, ensuring that both public and private stakeholders work collaboratively to maximize the benefits of the EU-Zambia partnership. Overall, the EU-Zambia Economic Forum emerged as a multifaceted platform that integrated policy dialogue, private sector engagement, and international cooperation. By focusing on green growth and economic transformation, the forum aligned Zambia’s development priorities with global sustainability agendas and the EU’s external action objectives. Through the involvement of high-level commissioners and a broad spectrum of participants, the forum aimed to catalyze tangible economic outcomes, including increased employment, enhanced value chains, and expanded trade relations. The forum’s establishment reflected a strategic commitment to strengthening the economic partnership between Zambia and the European Union, fostering a collaborative framework that supports sustainable development and inclusive growth.

In November 2021, the governments of Zambia and the United Kingdom formalized a bilateral agreement known as the UK-Zambia Green Growth Compact. This accord was designed to strengthen and expand British investment in Zambia, reflecting a mutual commitment to fostering sustainable economic development. The compact aimed to leverage UK financial resources and expertise to support Zambia’s transition towards a greener economy while simultaneously stimulating job creation and economic growth. This initiative represented a significant milestone in the economic relations between the two countries, emphasizing environmental sustainability alongside economic advancement. The agreement projected a substantial increase in UK investment in Zambia, with an anticipated inflow of £1.0 billion, equivalent to approximately US$1.26 billion. This investment was strategically targeted to facilitate job creation and to bolster the development of green energy production within Zambia. By focusing on these areas, the compact sought to address key challenges facing the Zambian economy, including unemployment and reliance on non-renewable energy sources. The infusion of capital was expected to catalyze new business opportunities, enhance energy infrastructure, and promote environmentally responsible growth, thereby aligning with global efforts to combat climate change and promote sustainable development. In May 2022, Nicholas Woolley, the British High Commissioner to Zambia, publicly announced that the British government had committed to disbursing the full £1.0 billion investment over a five-year period. This declaration underscored the UK’s long-term dedication to supporting Zambia’s economic transformation through sustained financial engagement. The phased disbursement was intended to ensure effective utilization and impact of the funds, enabling the Zambian government and its partners to implement projects systematically and monitor progress. Woolley’s announcement highlighted the collaborative nature of the compact and the importance of ongoing diplomatic and economic cooperation between the two nations. Within the total £1.0 billion investment, a specific allocation of £100.0 million, equivalent to US$126.0 million, was designated to support Small and Medium Entrepreneurs (SMEs) in Zambia. This targeted funding aimed to promote business growth and economic diversification by empowering SMEs, which are critical drivers of employment and innovation in the Zambian economy. By facilitating access to capital, technical assistance, and market opportunities, the investment sought to enhance the capacity of SMEs to contribute meaningfully to economic development. This focus on entrepreneurship was intended to create a more resilient and diversified economic base, reducing dependence on traditional sectors and fostering inclusive growth. Furthermore, £500.0 million, or approximately US$629.9 million, of the allocated funds were earmarked specifically for investment in renewable energy projects within Zambia. This substantial commitment reflected a strategic emphasis on sustainable and green economic development, recognizing the importance of transitioning to cleaner energy sources to address environmental challenges. The investment was expected to support the expansion of renewable energy infrastructure, including solar, hydroelectric, and other clean energy technologies, thereby increasing Zambia’s energy capacity and reliability. By prioritizing renewable energy, the compact aimed to reduce carbon emissions, enhance energy security, and contribute to the global agenda of combating climate change while simultaneously driving economic growth through green technologies.

In July 2022, the World Bank approved a substantial allocation of US$155.0 million in International Development Assistance (IDA) specifically designated for Social Cash Transfer programs in Zambia. These programs were designed to alleviate the significant pressures arising from the high cost of living that had been adversely affecting vulnerable populations across the country. The Social Cash Transfer initiative aimed to provide direct financial support to low-income households, thereby enhancing their ability to meet basic needs such as food, healthcare, and education. This targeted assistance was part of a broader social protection strategy intended to mitigate the immediate economic hardships faced by Zambian citizens amid rising inflation and economic volatility. Concurrently, in the same month of July 2022, the World Bank approved an additional credit facility amounting to US$27.0 million to bolster the Zambian government’s wider development programs. This supplementary financing was intended to complement the Social Cash Transfer funding by supporting a range of governmental initiatives focused on sustainable development and poverty reduction. The credit facility provided the government with much-needed fiscal space to implement policies and projects aimed at improving infrastructure, enhancing public service delivery, and fostering economic resilience. Together, these financial commitments underscored the World Bank’s multifaceted approach to addressing both immediate social welfare needs and longer-term developmental objectives in Zambia. Further expanding its support in July 2022, the World Bank approved a significant financing package totaling US$665.0 million to fund various projects across Zambia. These projects were strategically designed to stimulate economic recovery following the disruptions caused by global economic shocks and domestic challenges. The financing aimed to promote inclusive growth by investing in sectors critical to Zambia’s economic revitalization, such as agriculture, energy, and transport infrastructure. Moreover, part of this funding was earmarked to assist in alleviating Zambia’s substantial debt burden, which had constrained fiscal policy and limited public investment capacity. By addressing both growth and debt sustainability, the World Bank sought to create a more conducive environment for economic stability and development. Looking beyond immediate interventions, the World Bank articulated plans to provide Zambia with over US$2.0 billion in new financing through concessional loans extending through the year 2032. This long-term financial commitment reflected the institution’s sustained dedication to supporting Zambia’s economic development trajectory over the coming decade. Concessional loans, characterized by below-market interest rates and extended repayment terms, were intended to facilitate investments in critical sectors while minimizing the risk of exacerbating the country’s debt challenges. The multi-year financing framework was designed to align with Zambia’s national development priorities, including infrastructure modernization, human capital development, and climate resilience. Through this extended engagement, the World Bank aimed to foster a stable and inclusive growth environment conducive to poverty reduction and socio-economic transformation. In late October 2022, the World Bank approved a concessional loan amounting to US$275.0 million targeted specifically at fiscal stabilization and the acceleration of economic programs within Zambia. This loan was part of a broader effort to support the government’s fiscal consolidation measures and to enhance the implementation of key economic reforms. The financing was intended to provide the Zambian authorities with the necessary resources to manage budgetary pressures, improve public financial management, and sustain critical public investments. By facilitating fiscal stabilization, the loan aimed to restore macroeconomic stability and create a foundation for sustained economic growth and poverty alleviation. This US$275.0 million concessional loan was financed through the World Bank’s International Development Association (IDA), underscoring the IDA’s pivotal role in supporting Zambia’s fiscal and economic initiatives. The IDA, as the concessional arm of the World Bank Group, specializes in providing low-interest loans and grants to the world’s poorest countries, enabling them to undertake vital development projects without imposing excessive debt burdens. In Zambia’s case, the IDA’s involvement signified a continued partnership focused on addressing structural economic challenges and promoting sustainable development. The concessional nature of the loan reflected the World Bank’s recognition of Zambia’s developmental needs and financial constraints, ensuring that support was both impactful and financially sustainable.

In July 2022, Benedict Oramah, the President of the African Export-Import Bank (Afreximbank), made a significant announcement during his official visit to Lusaka, the capital city of Zambia. He revealed that Afreximbank planned to invest approximately US$250 million in the country, signaling a major financial commitment aimed at fostering industrial growth. This substantial investment was earmarked specifically for the development of Zambia’s first-ever Battery Electric Vehicle (BEV) manufacturing plant, an ambitious project designed to position the nation at the forefront of the emerging electric vehicle industry within Africa. The establishment of this manufacturing facility represented a pioneering step in Zambia’s industrial landscape, as it marked the country’s initial foray into the production of clean energy vehicles, thereby aligning with global trends toward sustainable transportation solutions. The decision to focus the investment on a BEV manufacturing plant was particularly noteworthy given the growing importance of electric vehicles in reducing carbon emissions and promoting environmentally friendly technologies. By facilitating the creation of such a facility, Afreximbank sought to catalyze Zambia’s transition toward a greener economy, while simultaneously stimulating local industrial capacity and job creation. This initiative was poised to generate a ripple effect across various sectors, including mining, manufacturing, and energy, as the production of electric vehicles requires a diverse supply chain encompassing raw materials, battery technology, and advanced assembly processes. Zambia, endowed with rich mineral resources such as cobalt and copper—key components in battery production—stood to benefit strategically from integrating these resources into a value-added manufacturing process, thereby enhancing economic diversification and reducing dependency on raw material exports. The announcement of this investment marked a significant milestone in Zambia’s broader economic and industrial development trajectory. It underscored the country’s commitment to embracing technological innovation and industrialization as central pillars of its growth strategy. The automotive sector, traditionally underdeveloped in Zambia, was set to experience a transformative boost through this project, which promised to introduce cutting-edge manufacturing capabilities and foster skills development among the local workforce. Moreover, the focus on clean energy vehicles aligned with Zambia’s national objectives to promote sustainable development and reduce environmental impact, reflecting a growing recognition of the importance of climate change mitigation within the country’s economic planning framework. Afreximbank’s involvement in this initiative further highlighted the institution’s dedication to supporting industrialization and technological advancement not only within Zambia but across the African continent as a whole. As a pan-African multilateral financial institution, Afreximbank has consistently aimed to facilitate intra-African trade and industrial development through strategic investments and financing solutions. The US$250 million commitment to Zambia’s BEV manufacturing plant was emblematic of the bank’s broader mission to drive economic transformation by fostering innovation, enhancing manufacturing capabilities, and promoting sustainable industries. This project was also indicative of Afreximbank’s strategic approach to leveraging Africa’s natural resources and human capital to build competitive industries that can contribute to the continent’s long-term economic resilience and global competitiveness. By channeling significant financial resources into Zambia’s nascent electric vehicle sector, Afreximbank sought to position the country as a regional leader in the production of clean energy transportation solutions. The investment was expected to attract further private sector interest and encourage the development of complementary industries, such as battery recycling and renewable energy infrastructure. Additionally, the establishment of the BEV manufacturing plant was anticipated to create numerous employment opportunities, foster technology transfer, and stimulate research and development activities, thereby enhancing Zambia’s capacity for innovation and industrial self-reliance. This initiative also aligned with broader African Union goals aimed at accelerating industrialization and sustainable development across member states, reinforcing Zambia’s role as a key player in the continent’s economic integration and modernization efforts. Overall, the US$250 million investment by Afreximbank in Zambia’s first Battery Electric Vehicle manufacturing plant represented a landmark development with far-reaching implications for the country’s economic diversification, environmental sustainability, and technological progress. It exemplified a strategic partnership between a leading African financial institution and a resource-rich nation seeking to harness new industrial opportunities in the global transition toward clean energy. Through this project, Zambia aimed to establish itself as a hub for electric vehicle manufacturing in Africa, thereby contributing to the continent’s broader objectives of industrial growth, job creation, and sustainable development.

In July 2022, Lusaka, the capital city of Zambia, hosted the 4th Mid-Year Coordination Meeting involving the African Union, Regional Economic Communities, and Regional Mechanisms. This high-level assembly brought together representatives from multiple regional blocs to discuss strategies for enhancing economic integration across the continent. The meeting was particularly significant as it provided a platform for the East African Community (EAC), the Southern African Development Community (SADC), and the Common Market for Eastern and Southern Africa (COMESA) to engage in collaborative dialogue aimed at deepening regional cooperation. These three regional economic communities, which collectively encompass a substantial portion of Africa’s population and economic activity, recognized the critical importance of harmonizing their policies to foster seamless trade and movement. During the course of the meeting, the EAC, SADC, and COMESA reached a landmark agreement that underscored their commitment to regional integration. The agreement centered on the establishment of a tripartite ministers’ summit, a dedicated forum designed to accelerate the implementation of a border control-free travel regime and the free movement of goods and services within the combined territories of the three blocs. This initiative represented a strategic effort to dismantle longstanding barriers to intra-African trade, which have historically impeded economic growth and regional connectivity. By coordinating their efforts through this summit, the three communities aimed to synchronize policies, streamline customs procedures, and enhance infrastructure connectivity, thereby facilitating more efficient cross-border interactions. The envisioned tripartite ministers’ summit was tasked with driving forward the implementation of an integrated free trade and movement zone, which would effectively merge the existing frameworks of the EAC, SADC, and COMESA into a cohesive economic space. This integrated zone was designed to eliminate border controls that restrict the free movement of people, goods, and services, thus promoting a more fluid and dynamic regional market. The agreement highlighted the shared recognition among member states that such integration would not only boost trade volumes but also encourage investment, stimulate industrialization, and support sustainable economic development across the three regions. The summit was also expected to address technical and regulatory challenges, including the harmonization of customs tariffs, the standardization of trade documentation, and the establishment of joint border posts to expedite clearance processes. A critical objective set forth during the July 2022 meeting was the finalization of this integrated free trade and movement zone by the end of the same year. This ambitious timeline reflected the urgency with which the member states sought to capitalize on the momentum generated by the African Continental Free Trade Area (AfCFTA) and other continental integration initiatives. Achieving this goal required concerted efforts to align national policies with regional commitments, enhance institutional capacities, and mobilize resources for infrastructure development. The integrated zone was expected to serve as a foundational pillar for broader continental integration, demonstrating the potential benefits of regional cooperation in reducing trade costs, increasing market access, and fostering economic resilience. The commitment to conclude the agreement by the end of 2022 underscored the determination of the EAC, SADC, and COMESA to transform their collective vision of a borderless economic space into a tangible reality within a defined timeframe.

In September 2022, Zambia and China held the inaugural Zambia-China Trade and Investment Forum, marking a significant milestone in the bilateral economic relationship between the two countries. This forum was established as a dedicated platform aimed at enhancing and unlocking the vast trade and investment potential existing between Zambia and China. It provided an opportunity for government officials, business leaders, and investors from both nations to engage in dialogue, explore new avenues for cooperation, and address challenges hindering bilateral trade and investment flows. The creation of this forum underscored the commitment of both countries to deepen economic ties and foster sustainable development through mutually beneficial partnerships. A key outcome of the inaugural forum was the signing of an Exchange Letter that granted Duty Free Treatment to Zambian products entering the Chinese market. This agreement was a landmark development in Zambia’s trade relations with China, as it covered 98 percent of the tariff lines applicable to Zambian exports. By eliminating tariffs on the vast majority of Zambian goods, the Exchange Letter aimed to significantly boost Zambia’s export competitiveness, increase market access, and stimulate economic growth through expanded trade volumes. The duty-free status was expected to reduce the cost burden on Zambian exporters, thereby encouraging diversification of export products and enhancing Zambia’s integration into global value chains. The Exchange Letter was formally signed by two prominent representatives: Zambia’s Finance Minister, Situmbeko Musokotwane, and the Chinese Ambassador to Zambia, Du Xiao. Minister Musokotwane’s involvement highlighted the Zambian government’s strategic focus on leveraging international partnerships to drive economic development and fiscal stability. Ambassador Du Xiao’s participation reflected China’s ongoing commitment to supporting Zambia’s economic transformation and strengthening bilateral cooperation. The signing ceremony symbolized a mutual pledge to implement the provisions of the Exchange Letter effectively and to work collaboratively toward expanding trade and investment opportunities. This diplomatic engagement further reinforced the broader framework of Sino-Zambian relations, which encompass infrastructure development, mining, agriculture, and other sectors critical to Zambia’s economy. The establishment of the Zambia-China Trade and Investment Forum and the associated Exchange Letter represented an important step in addressing long-standing barriers to trade between the two countries. Prior to this agreement, Zambian exporters faced significant tariff and non-tariff obstacles that limited their ability to compete in the Chinese market. By granting duty-free access to nearly all tariff lines, the agreement sought to create a more favorable trade environment, encouraging Zambian businesses to increase their exports and attract Chinese investment into key sectors. This initiative was also aligned with Zambia’s broader economic diversification goals, aiming to reduce reliance on traditional commodity exports and promote value addition. Moreover, the forum served as a mechanism to facilitate ongoing dialogue and cooperation, enabling stakeholders to monitor the implementation of trade agreements and address emerging issues in a timely manner. It also provided a venue for sharing best practices, exploring joint ventures, and identifying new investment projects that could contribute to job creation and technological transfer. The Zambia-China Trade and Investment Forum thus played a crucial role in institutionalizing bilateral economic engagement, ensuring that both countries could capitalize on their complementary strengths and shared development objectives. In summary, the September 2022 inauguration of the Zambia-China Trade and Investment Forum and the signing of the Exchange Letter granting duty-free treatment to Zambian exports marked a pivotal advancement in the economic partnership between Zambia and China. These developments not only enhanced market access for Zambian products but also laid the foundation for deeper collaboration in trade and investment, reflecting a strategic alignment of interests aimed at fostering sustainable economic growth and development in Zambia.

In mid-September 2023, Zambian President Hakainde Hichilema traveled to Beijing to engage in high-level discussions with Chinese President Xi Jinping, focusing on strengthening bilateral relations and expanding economic cooperation between Zambia and China. This meeting underscored the growing strategic partnership between the two nations, reflecting Zambia’s increasing integration into China’s Belt and Road Initiative and broader economic outreach in Africa. The dialogue between the two leaders aimed to identify new avenues for collaboration that would foster sustainable development and mutual economic benefits. During the summit, the two presidents oversaw the signing of over 15 Memoranda of Understanding (MOUs), which collectively represented a potential Chinese investment valued at approximately ZMW 62.3 billion kwacha, equivalent to US$3.0 billion. These agreements spanned a wide range of sectors, signaling a comprehensive approach to bilateral cooperation. The scale of this investment highlighted China’s commitment to deepening its economic footprint in Zambia, positioning the country as a key partner in China’s Africa strategy while simultaneously supporting Zambia’s ambitions for industrialization and economic diversification. A significant outcome of the meeting was the mutual agreement to enhance the use of local currencies in trade transactions between Zambia and China. Both leaders recognized that relying less on third-party currencies, such as the US dollar, would reduce transaction costs and currency exchange risks, thereby facilitating smoother and more cost-effective bilateral trade. This shift toward local currency usage was intended to promote financial integration and stability, encouraging greater trade volumes and investment flows by simplifying payment mechanisms and fostering trust between business communities in both countries. Among the MOUs signed, a notable agreement was reached with ZTE Corporation, a leading international telecommunications manufacturer headquartered in China. The agreement involved establishing and operating a smartphone manufacturing plant within Zambia, marking a strategic industrial collaboration that aimed to bolster Zambia’s manufacturing capacity and technological capabilities. This initiative was expected to create employment opportunities, enhance skills development, and contribute to the country’s goal of becoming a regional hub for technology and innovation. The establishment of the plant also aligned with Zambia’s broader industrial policy objectives, which emphasize value addition and local production to reduce reliance on imports. Later in September 2023, China Nonferrous Metal Mining Group (CNMC), a major Chinese state-owned enterprise specializing in mining and related industries, announced plans to invest an additional ZMW 27.0 billion kwacha (approximately US$1.3 billion) into Zambia over the five-year period from 2023 to 2028. This substantial financial commitment was indicative of CNMC’s confidence in Zambia’s economic prospects and the country’s resource potential. The investment was designed to expand and modernize CNMC’s existing operations while exploring new opportunities across multiple sectors. CNMC’s planned investment portfolio was notably diversified, targeting not only the mining sector but also extending into energy, education, and technology. In mining, the funds were earmarked for the development of new extraction projects, upgrading of infrastructure, and implementation of environmentally sustainable practices. The energy component aimed to support Zambia’s efforts to enhance power generation capacity, improve energy access, and promote renewable energy sources, thereby addressing one of the country’s critical development challenges. Investments in education were intended to build human capital by supporting vocational training, technical education, and skill development programs, which would underpin the growth of both the mining and technology sectors. Finally, the technology investments were expected to foster innovation, digitalization, and the adoption of advanced technologies across various industries, further integrating Zambia into global value chains. Together, these developments in 2023 reflected a significant deepening of Zambia-China economic ties, characterized by large-scale investments, strategic industrial projects, and efforts to facilitate trade through currency cooperation. The expansion of Chinese investment into diverse sectors demonstrated a multifaceted approach to bilateral cooperation, aimed at supporting Zambia’s long-term economic transformation and enhancing its position within regional and international markets.

In October 2022, Lusaka served as the venue for the inaugural U.S.-Zambia Business Summit, which brought together over 50 prominent business and government leaders from both the United States and Zambia. The event spanned two days and was hosted at the Intercontinental Hotel, a premier location in the Zambian capital known for accommodating high-profile international conferences. This gathering marked a significant milestone in bilateral economic relations, providing a platform for dialogue aimed at deepening trade and investment ties between the two nations. Attendees included senior executives from major corporations, representatives of governmental ministries, and officials from diplomatic missions, all of whom engaged in discussions designed to identify opportunities for collaboration and mutual economic growth. The Summit featured active participation from key U.S. government agencies that play pivotal roles in international trade and development finance. Notably, the U.S. Trade and Development Agency (USTDA) was present, bringing its expertise in facilitating U.S. exports and supporting infrastructure projects in emerging markets. Alongside USTDA, the U.S. International Development Finance Corporation (DFC) contributed to the Summit’s agenda by highlighting its capacity to provide financing and investment solutions aimed at catalyzing private sector-led growth. The involvement of these agencies underscored the strategic importance the United States placed on fostering sustainable economic partnerships with Zambia, leveraging financial instruments and technical assistance to enhance bilateral trade and investment flows. Central to the objectives of the U.S.-Zambia Business Summit was the promotion of Zambia as one of the most attractive business environments on the African continent. Presenters and panelists emphasized Zambia’s favorable investment climate, which includes a stable macroeconomic framework, abundant natural resources, and a growing consumer market. Discussions highlighted ongoing reforms in regulatory policies aimed at improving ease of doing business, as well as Zambia’s strategic geographic location that facilitates access to regional markets within the Southern African Development Community (SADC). The Summit also showcased opportunities in key sectors such as mining, agriculture, energy, and technology, positioning Zambia as a gateway for investors seeking to capitalize on Africa’s expanding economic potential. Building on its role as a hub for regional economic integration, Zambia hosted the inaugural African Continental Free Trade Area (AfCFTA) Digital Trade Forum in May 2025, once again convening in Lusaka. This forum represented a landmark event in the implementation of the AfCFTA agreement, which aims to create a single continental market for goods and services, thereby boosting intra-African trade. The Digital Trade Forum gathered policymakers, regulatory authorities, and business leaders from across Africa to deliberate on the challenges and opportunities presented by digital commerce. The event provided a collaborative space for stakeholders to exchange ideas, share best practices, and develop actionable strategies to harness the potential of digital technologies in facilitating cross-border trade. The AfCFTA Digital Trade Forum focused specifically on the digital commerce provisions embedded within the broader AfCFTA framework. Participants worked to identify practical measures for operationalizing these provisions, addressing issues such as digital infrastructure development, cybersecurity, data protection, and harmonization of regulatory standards across member states. The forum’s agenda underscored the importance of creating an enabling environment for e-commerce and digital services, which are increasingly recognized as critical drivers of economic diversification and inclusion. By fostering cooperation among African governments and private sector actors, the forum aimed to accelerate the digital transformation of trade on the continent, thereby enhancing competitiveness and expanding market access for African businesses in the digital economy.

In 2019, Zambia was recognized as the world’s seventh-largest producer of copper, underscoring the country’s significant role within the global copper market. This prominent position reflects Zambia’s long-standing association with copper mining, which has historically been the backbone of its economy. The copper-mining industry has played a central role in Zambia’s industrialization and economic development, contributing substantially to national revenues and employment. The sector’s importance is rooted in the early 20th century, when foreign influence, particularly from figures such as Frederick Russell Burnham, an American scout working under the British imperialist Cecil Rhodes, helped lay the foundations for the industrialization of Zambia’s copper industry. Burnham’s involvement exemplified the early external investments and expertise that shaped the mining landscape, facilitating the exploitation of Zambia’s rich mineral resources. Despite its historical prominence, the copper industry experienced a prolonged period of decline toward the end of the 20th century. By 1998, copper output had fallen sharply to 228,000 tonnes, marking the lowest production level in three decades. This downward trend was attributed to a combination of factors, including insufficient capital investment, depressed global copper prices, and considerable uncertainty surrounding the privatization process of the mining sector. The lack of clarity regarding ownership and management of mining assets discouraged new investment and hampered operational efficiency, exacerbating the decline in output. A turning point occurred in 2001, following the privatization of the copper industry, when Zambia recorded its first increase in copper productivity since 1973. This resurgence signaled a potential revitalization of the sector, as private ownership and management introduced new capital, technology, and operational reforms. However, the future of Zambia’s copper industry remained precarious; in January 2002, investors in the country’s largest copper mine announced plans to withdraw their investments, casting doubt on the sustainability of the recent gains. This development highlighted the ongoing challenges faced by the sector, including political risks, regulatory uncertainties, and fluctuating commodity prices. From 2004 onwards, the global copper market experienced rising prices, which rekindled international interest in Zambia’s copper sector. This renewed enthusiasm led to significant capital investments and ownership changes, notably the acquisition of Konkola Copper Mines (KCCM) by new investors committed to expanding production capacity. The revitalization of KCCM, one of Zambia’s largest mining operations, became emblematic of the broader sectoral recovery driven by favorable market conditions and improved investor confidence. China emerged as a particularly influential player in Zambia’s copper mining industry during this period. In February 2007, a Chinese-Zambian economic partnership zone was established around the Chambishi copper mine, symbolizing deepening bilateral cooperation and Chinese investment in Zambia’s mining infrastructure. This partnership facilitated technology transfer, infrastructure development, and increased capital flows, further strengthening the copper sector’s capacity and integration into global supply chains. Copper mining continues to be pivotal to Zambia’s economy, accounting for approximately 85% of the country’s export earnings. This heavy dependence on copper exports underscores both the sector’s economic significance and the vulnerabilities inherent in such reliance. Fluctuations in global copper prices can have profound impacts on Zambia’s fiscal revenues, foreign exchange earnings, and overall economic stability. Consequently, concerns persist regarding the lack of economic diversification and the need to develop other sectors to mitigate exposure to commodity price volatility. Production data from 2016 to 2024 reveal fluctuating outputs across various minerals, reflecting both market dynamics and operational factors within the mining sector. Copper production during this period ranged from 682,431 metric tonnes in 2023 to a projected 771,036 metric tonnes in 2024. Annual growth rates exhibited significant variability, including a notable peak growth of 12.98% forecasted for 2024, contrasted with a decline of 10.59% recorded in 2023. These fluctuations illustrate the sector’s sensitivity to external market conditions and internal production challenges. Other minerals have also contributed to Zambia’s mining output, albeit at varying scales. Cobalt production ranged widely, from as low as 367 metric tonnes in 2020 to 5,276 metric tonnes in 2016, reflecting shifts in demand and mining focus. Gold output similarly fluctuated, with quantities ranging from 1,515 kilograms in 2022 to 4,610 kilograms in 2016. Nickel production began in 2019 with 1,110 metric tonnes and was projected to increase substantially to 19,137 metric tonnes by 2024, indicating growing investment and exploration in nickel mining. Manganese production varied from 15,904 metric tonnes in 2019 to 171,066 metric tonnes in 2023, while coal output expanded markedly from 129,470 metric tonnes in 2016 to 915,187 metric tonnes in 2023. Emerald mining also showed variation, with production ranging from 7,653 kilograms in 2020 to an anticipated 31,683 kilograms in 2024. Beryllium production fluctuated between 2,000 kilograms in 2020 and 7,000 kilograms in 2018 and 2019, while sulfur, both elemental and industrial, increased from 363,000 metric tonnes in 2016 to 960,300 metric tonnes in 2019. These figures collectively demonstrate the diverse mineral wealth of Zambia and the evolving nature of its mining sector. Regulatory support for mining expansion was evident in January 2013, when the Zambia Environmental Management Agency (ZEMA) approved 27 mining and exploration licenses. This regulatory endorsement signaled governmental commitment to fostering growth within the mining industry, with rumors circulating about additional licenses forthcoming. Such regulatory activity aimed to balance the promotion of mining investments with environmental oversight and sustainable resource management. Zambia holds a prominent position in the global gemstone market, ranking as the world’s second-largest producer of emeralds. The Kafubu River area, particularly the Kagem Mines located approximately 45 kilometers southwest of Kitwe, was responsible for producing 20% of global gem-quality emeralds in 2004. This mining district has long been recognized for its high-quality emerald deposits, attracting both local and international attention. In the first half of 2011, Kagem Mines produced 3.74 tons of emeralds, underscoring its status as a significant contributor to Zambia’s gemstone output. The mine’s performance has continued to be robust, with data from 2019 to 2023 showing fluctuations in premium emerald carats and total emerald and beryl production. Premium emerald carats ranged from 133,900 in 2020 to 259,500 in 2022, while total emerald and beryl production varied between 9.4 million carats in 2020 and 37.24 million carats in 2022. These production figures highlight the mine’s capacity to generate substantial quantities of high-value gemstones. In April 2022, Gemfields, the majority owner of Kagem Mines, achieved a record revenue of US$42.3 million from a sold-out auction held in March and April. Since 2009, gemstones sourced from Kagem, including emeralds and beryl, have generated total revenues of US$792 million for Gemfields. All proceeds from these auctions have been fully repatriated to Kagem in Zambia, with all royalties duly paid to the Zambian government based on the full auction sales prices. This financial arrangement illustrates the economic benefits derived from gemstone mining and the importance of transparent revenue flows to the national treasury. Beyond copper and emeralds, Zambia has also attracted attention for its uranium deposits. Rich uranium mineralization has been discovered in various parts of the country, prompting the government in 2007 to seek guidance from the International Atomic Energy Agency (IAEA) to develop appropriate regulatory frameworks for uranium mining. This initiative aimed to ensure that uranium extraction would be conducted safely and in compliance with international standards. In 2008, uranium deposits were identified in the Kaputa District of the Northern Province, while Albidon Zambia Limited confirmed the presence of high-grade uranium mineralization at its Njame East project near Chirundu. These discoveries expanded the known uranium resource base and highlighted the potential for developing a uranium mining industry in Zambia. The Southern Province hosts five main uranium deposits—Mutanga, Dibwe, Dibwe East, Njame, and Gwabe—explored under the Mutanga Uranium Project, located approximately 31 kilometers north of Siavonga and north of Lake Kariba. This project, also known as the Kariba Uranium Project, was acquired in 2016 by GoviEx Uranium Inc., a company listed on the Toronto Stock Exchange (TSX) in Canada. GoviEx’s involvement brought international expertise and capital to advance the development of these uranium resources. In March 2022, GoviEx announced that the Mutanga Uranium Project was forecasted to commence production in 2027. The project is expected to be the lowest capital-intensive uranium mining operation in Africa, reflecting efficient project design and favorable geological conditions. This development positions Zambia to potentially become a significant uranium producer on the continent. Lumwana Mining Company Limited (LMC), which began uranium exploration in 2007 in the Solwezi District, is currently stockpiling uranium obtained as a by-product of its copper mining operations. The company awaits the issuance of a uranium mining license to commence dedicated uranium extraction activities. This approach allows LMC to accumulate uranium resources while navigating regulatory requirements. Uranium mining activities in Zambia are regulated and monitored by the Zambia Environmental Management Agency (ZEMA), which ensures that mining operations comply with environmental standards and sustainability principles. ZEMA’s oversight is critical to balancing resource exploitation with environmental protection and community welfare. Additional notable mining projects in Zambia include the Munali Nickel Mine and the Enterprise Nickel Project, reflecting ongoing investments in the country’s nickel mining sector. The Munali Nickel Mine had an estimated development cost of US$180 million in 2007, while the Enterprise Nickel Project was estimated at US$275 million. These substantial capital investments signify the growing importance of nickel as a strategic mineral for Zambia, diversifying the country’s mineral production beyond copper and gemstones. The development of these projects contributes to the broader objective of expanding Zambia’s mining sector and enhancing its economic resilience.

In 2019, the agriculture sector contributed 2.7% to Zambia’s gross domestic product (GDP), underscoring its economic significance within the country’s broader economy. Despite this relatively modest share of GDP, agriculture remained a critical component of Zambia’s socio-economic fabric, particularly as a primary source of livelihood for the majority of the population. As of the year 2000, agriculture accounted for approximately 85% of total employment, encompassing both formal and informal sectors. This high employment rate reflected the sector’s role as the backbone of rural livelihoods and its importance in sustaining household incomes across Zambia. Maize, commonly known as corn, served as both the principal cash crop and the staple food in Zambia, highlighting its centrality in the nation’s agricultural landscape. It was the primary crop cultivated by smallholder farmers and commercial producers alike, forming the basis of food security and income generation. Alongside maize, Zambia’s agricultural sector exhibited considerable crop diversity, with other significant crops including soybean, cotton, sugar, sunflower seeds, wheat, sorghum, pearl millet, cassava, tobacco, and a variety of vegetable and fruit crops. This diversity not only contributed to dietary variety and nutritional security but also provided multiple avenues for income and export earnings, thereby enhancing the sector’s resilience to market and climatic fluctuations. Floriculture emerged as a notable growth sector within Zambian agriculture, reflecting a shift towards non-traditional agricultural exports. The export of cut flowers and flower buds—whether fresh, dried, dyed, bleached, impregnated, or otherwise prepared for ornamental purposes—experienced rapid expansion in the early 2010s. Agricultural non-traditional exports, including floriculture, began to rival the mining industry in terms of foreign exchange earnings, signaling a diversification of Zambia’s export base and an increasing integration into global agricultural value chains. Despite these positive developments, Zambia possessed considerable untapped potential to increase agricultural output. At the time, less than 20% of the country’s arable land was under cultivation, indicating substantial room for expansion and intensification of agricultural activities. This underutilization of arable land stemmed from multiple factors, including infrastructural limitations, access to inputs, and market constraints. Historically, the agriculture sector faced a series of challenges that constrained its growth and productivity. These included persistently low producer prices that diminished farmers’ incentives, difficulties in accessing and distributing credit and agricultural inputs such as seeds and fertilizers, and shortages of foreign exchange that hampered the importation of essential goods and technology. An examination of major crop production statistics from 2010 to 2023 reveals both fluctuations and growth trends across various crops. Maize production, for instance, ranged from 2,004,389 metric tons (MT) in 2019 to a peak of 3,620,244 MT in 2021, reflecting variability influenced by climatic conditions, input availability, and market demand. Cassava production demonstrated a significant increase, rising from 1,151,000 MT in 2010 to 4,450,019 MT in 2023. This growth underscored cassava’s rising importance as a food security crop and a source of income for many rural households. Sugarcane production also expanded, increasing from 3,700,000 MT in 2010 to over 5,102,118 MT in 2021, although data for some intervening years were unavailable. This growth was driven by both domestic demand for sugar and the development of related agro-processing industries. Wheat production exhibited variability, fluctuating between 151,850 MT in 2019 and 277,586 MT in 2022. A notable surge occurred in 2021 when production reached 400,000 tonnes, largely due to increased demand for flour from the neighboring Democratic Republic of the Congo (DRC). This external demand stimulated local production and highlighted the regional interdependence of agricultural markets. Soybean production experienced rapid expansion, growing from 111,887 MT in 2010 to 760,067 MT in 2023, reflecting increased adoption of soybean cultivation as a cash crop and its rising importance in both domestic consumption and export markets. Sweet potato production fluctuated over the years, peaking at 252,867 MT in 2010 and reaching 234,631 MT in 2023. Cotton production, in contrast, declined from 107,000 MT in 2010 to 55,971 MT in 2023, indicating challenges faced by the cotton sector, including competition from synthetic fibers and fluctuating global prices. Groundnuts production showed variability as well, with 164,602 MT recorded in 2010 and 235,446 MT in 2023, reflecting shifting patterns in cultivation and market demand. Millet production ranged from 23,942 MT in 2013 to 46,753 MT in 2023, demonstrating modest growth in this traditional cereal crop. Vegetable production remained relatively stable, fluctuating between approximately 350,000 and 445,625 MT from 2010 to 2021, although data for some later years were missing, indicating a steady but unspectacular performance in this sub-sector. Tobacco exports, measured in US dollars, increased from approximately $147 million in 2010 to a peak of $221.58 million in 2019. This growth reflected Zambia’s position as the sixth largest tobacco producer worldwide, with tobacco production reaching 153 thousand tons in 2019. However, tobacco export earnings declined to $114.18 million in 2021, possibly due to global market fluctuations, regulatory changes, and shifts in consumer preferences. In 2019, Zambia’s agricultural production was characterized by the following key figures: 4.7 million tons of sugarcane; 4 million tons of cassava, ranking Zambia as the 18th largest producer globally; 2 million tons of maize; 281 thousand tons of soybeans; 153 thousand tons of tobacco; 151 thousand tons of wheat; 130 thousand tons of peanuts; 109 thousand tons of sweet potatoes; 72 thousand tons of cotton; and 6,900 tons of coffee, alongside various other agricultural products. These figures illustrated the country’s diverse agricultural base and its capacity to produce both staple foods and cash crops. Wheat production notably increased from 205,000 tonnes in 2020 to 400,000 tonnes in 2021, driven primarily by high flour demand in the Democratic Republic of the Congo. This surge highlighted the importance of regional trade dynamics and the potential for Zambia to capitalize on neighboring markets to boost agricultural production and exports. The floriculture sector, in particular, demonstrated remarkable export growth during the early 2010s. Exports of cut flowers and flower buds suitable for bouquets or ornamental purposes surged from US$333,520 in 2010 to a peak of US$32,150,400 in 2013, representing an extraordinary growth rate of 5,106.40% from 2010 to 2011. However, following this peak, floriculture exports declined steadily to US$7,051,388 by 2020, reflecting challenges such as market saturation, competition, and possibly logistical constraints. Meanwhile, imports of these floriculture products remained relatively low, fluctuating between US$3,369 and US$32,755 during the 2010–2020 period, indicating that Zambia was predominantly a net exporter in this niche market. In July 2022, Zambia and China signed a memorandum of understanding (MoU) aimed at facilitating the export of soybean meal and stevia from Zambia to China. This agreement signified growing international trade relations in agricultural commodities and underscored Zambia’s strategic efforts to diversify its export markets and enhance value addition in its agricultural sector. The MoU was expected to open new avenues for Zambian farmers and agribusinesses, particularly in the context of expanding demand for plant-based products and natural sweeteners in global markets.

The Fisheries and Livestock sub-sector in Zambia has long been recognized as a vital component of the nation’s economy, contributing significantly to employment generation, food and nutrition security, and overall economic development. This sub-sector provides livelihoods for a considerable portion of the rural population, where fishing and animal husbandry represent primary sources of income and sustenance. The availability of fish and livestock products plays a crucial role in meeting the dietary protein requirements of the Zambian population, thereby supporting nutritional well-being and reducing food insecurity. Moreover, the sector’s growth has stimulated ancillary industries such as processing, marketing, and trade, further enhancing its economic importance. Capture fishery production in Zambia experienced notable fluctuations between 2005 and 2023, reflecting varying environmental, economic, and policy influences over this period. In 2005, the total capture fishery output was recorded at 65,927 metric tons (MT). Over the subsequent years, production levels oscillated, influenced by factors such as changes in fish stock availability, fishing effort, and climatic conditions affecting aquatic ecosystems. Despite these variations, the overall trend showed an increase, culminating in a production volume of 101,825 MT by 2023. Annual growth rates during this period were inconsistent, ranging from a decline of -9.82% in certain years to robust increases of up to 22.09% in others. These fluctuations underscored the challenges faced in managing capture fisheries sustainably while responding to growing demand. In contrast to capture fisheries, aquaculture production in Zambia underwent a substantial expansion from 2005 through 2023, reflecting increased investment, technological adoption, and policy support aimed at enhancing fish farming activities. Starting from a modest 5,125 MT in 2005, aquaculture output surged dramatically to reach 76,627 MT by 2023. This growth was punctuated by several years of particularly high expansion rates, including a remarkable 69.06% increase in 2010, a 56.07% rise in 2013, and a 37.08% growth in 2018. These spikes were attributed to the proliferation of fish farming enterprises, improved access to fingerlings and feed, and enhanced extension services promoting best practices. However, the sector also faced setbacks, as evidenced by a significant contraction of -24.77% in 2017, which was linked to challenges such as disease outbreaks, market disruptions, and adverse weather conditions. Overall, the upward trajectory of aquaculture production signified its growing role in supplementing capture fisheries and contributing to national fish supply. The livestock population in Zambia exhibited consistent growth across all major categories from 2017 to 2023, reflecting both natural population increases and intensified livestock production efforts. The cattle population expanded from 3,714,667 head in 2017 to 4,839,941 in 2023, highlighting the importance of cattle as a source of meat, milk, and draft power. Sheep numbers rose from 170,262 to 264,729 over the same period, indicating a growing contribution to meat and wool production. Goats, which are valued for their adaptability and meat quality, increased from 3,583,696 to 4,548,542, while pig populations grew from 1,082,765 to 1,167,807, reflecting rising demand for pork products. Chicken populations demonstrated more variability, peaking at 41,230,000 in 2021 before declining to 31,824,758 in 2023. This fluctuation in poultry numbers was influenced by factors such as disease outbreaks, feed availability, and market dynamics. Collectively, the growth in livestock numbers underscored the sector’s expanding capacity to meet domestic demand for animal protein and related products. Corresponding to the increase in livestock populations, livestock product outputs in Zambia showed marked improvements between 2018 and 2019 across all major categories. Milk production rose significantly from 1,686,400 MT in 2018 to 2,045,603 MT in 2019, reflecting enhanced dairy farming practices and increased herd productivity. Egg production also increased, from 1,642,693,000 units to 1,744,047,000 units, indicating growth in poultry farming and improved management systems. Hides production experienced growth as well, rising from 345,549 MT to 369,357 MT, which not only supported the leather industry but also contributed to export earnings. Meat production across various livestock species similarly increased; beef output expanded from 6,103,281 MT to 6,763,045 MT, pork production rose from 555,270 MT to 595,472 MT, and poultry meat production grew from 5,111,098 MT to 5,537,874 MT. These increases reflected improvements in animal husbandry, feed availability, veterinary services, and market access, all of which contributed to strengthening the livestock sub-sector. In 2019, Zambia’s livestock production capacity was exemplified by the substantial quantities of key animal products generated within the country. Approximately 191,000 tons of beef were produced, underscoring the importance of cattle farming to the national meat supply and rural livelihoods. Chicken meat production reached around 50,000 tons, reflecting the growing preference for poultry as a source of affordable animal protein. Pork production stood at approximately 34,000 tons, contributing to dietary diversity and income generation for pig farmers. Additionally, cow’s milk production totaled 453 million liters, highlighting the significance of the dairy sector in providing essential nutrients and supporting agribusiness activities. These figures collectively demonstrated Zambia’s robust livestock production capacity and its critical role in ensuring food security and economic stability.

Energy production and electricity generation in Zambia serve dual purposes, catering to both domestic consumption and export markets. The country harnesses a variety of energy sources, with a significant emphasis on hydroelectric power due to its abundant water resources, particularly from the Zambezi River and its tributaries. This reliance on hydropower has positioned Zambia as a key electricity exporter within the Southern African region, supplying surplus power to neighboring countries through interconnected grids. The energy sector thus plays a crucial role not only in meeting the internal demand for electricity, which supports industrial, commercial, and residential users, but also in generating foreign exchange revenues through exports. Oversight and regulation of Zambia’s energy sector are primarily the responsibility of the Energy Regulation Board (ERB), an autonomous statutory body established to ensure a balanced and equitable framework for all stakeholders involved. The ERB’s mandate includes licensing, tariff setting, monitoring compliance with regulatory standards, and protecting consumer interests while fostering a competitive and efficient energy market. By mediating between producers, distributors, consumers, and investors, the ERB aims to maintain a stable energy supply, promote sustainable development, and encourage investment in the sector. Its role is vital in harmonizing the interests of government agencies, private sector participants, and the general public, thereby contributing to the overall stability and growth of Zambia’s energy landscape. The legislative framework governing Zambia’s energy sector comprises several pivotal acts that collectively provide comprehensive regulatory oversight and policy direction. Foremost among these is the Energy Regulation Act No. 12 of 2019, which establishes the legal basis for the regulation of energy activities within the country. This act delineates the powers and responsibilities of the Energy Regulation Board, sets out procedures for licensing and compliance, and ensures that energy development aligns with national priorities such as sustainability, affordability, and security of supply. The act also addresses issues related to the promotion of renewable energy sources, the protection of consumer rights, and the facilitation of private sector participation, reflecting Zambia’s commitment to modernizing and diversifying its energy sector. Complementing this, the Electricity Act No. 11 of 2019 provides specific guidance on matters related to electricity generation, transmission, distribution, and regulation. This legislation defines the operational framework for electricity utilities and service providers, stipulating technical standards, safety requirements, and obligations for grid connectivity. It also establishes mechanisms for tariff determination and dispute resolution, thereby fostering transparency and accountability within the electricity subsector. The act supports the integration of new generation capacities, including independent power producers, and emphasizes the importance of expanding access to reliable and affordable electricity services across urban and peri-urban areas. Through this act, Zambia seeks to enhance the efficiency and resilience of its electricity infrastructure while encouraging innovation and investment. In recognition of the challenges faced by rural communities in accessing electricity, the Rural Electrification Act No. 20 of 2003 was enacted as a key legislative instrument aimed at promoting and facilitating the extension of electricity services beyond urban centers. This act established the Rural Electrification Authority (REA), tasked with planning, coordinating, and implementing rural electrification programs throughout the country. The legislation underscores the government’s commitment to bridging the urban-rural energy divide by providing financial incentives, subsidies, and technical support to accelerate the deployment of electricity infrastructure in remote and underserved areas. By enabling rural households, businesses, and public institutions to gain access to electricity, the act contributes to socio-economic development, improved quality of life, and poverty reduction. It also encourages community participation and public-private partnerships to ensure the sustainability and expansion of rural electrification efforts. Together, these regulatory frameworks and institutional arrangements form the backbone of Zambia’s energy sector governance, shaping the production, distribution, and consumption of energy resources. The coordinated efforts of the Energy Regulation Board, guided by robust legislation such as the Energy Regulation Act, the Electricity Act, and the Rural Electrification Act, have been instrumental in advancing Zambia’s energy objectives. These include increasing electricity access, promoting renewable energy integration, ensuring affordable tariffs, and supporting regional energy trade. As Zambia continues to develop its energy infrastructure and diversify its energy mix, these policies and regulatory bodies remain central to achieving a reliable, sustainable, and inclusive energy future.

Between 2000 and 2020, Zambia experienced a significant increase in its total electricity generation, rising from 7,760 gigawatt-hours (GWh) to approximately 15,980 GWh. Throughout this period, hydropower remained the dominant source of electricity, consistently constituting the majority share of the country’s energy mix. In 2000, hydropower generation stood at 7,670 GWh, and by 2020, it had nearly doubled to 13,670 GWh. This sustained reliance on hydropower reflects Zambia’s abundant water resources and the strategic prioritization of renewable energy sources in its electricity sector. The expansion of hydropower capacity was instrumental in meeting growing domestic demand and supporting economic development. In 2019, hydropower accounted for over 99% of Zambia’s renewable energy generation, underscoring its critical role in the country’s energy landscape. During that year, the total electricity produced amounted to 15,013 GWh, of which 12,427 GWh was derived from renewable sources, predominantly hydropower, while the remaining 2,586 GWh came from non-renewable sources. This distribution highlights the heavy dependence on renewable hydropower, with other renewable technologies contributing only marginally. The dominance of hydropower also reflects Zambia’s commitment to sustainable energy generation, although it also exposed the country to vulnerabilities related to hydrological variability. Coal power generation emerged as a new component in Zambia’s energy mix starting in 2015. Initially contributing 290 GWh, coal-fired electricity production increased steadily, peaking at 1,420 GWh in 2018. This rise was driven by efforts to diversify the energy portfolio and reduce overreliance on hydropower, especially given the challenges posed by fluctuating water levels. However, by 2020, coal power generation experienced a slight decline to 1,270 GWh, possibly due to operational constraints or shifts in energy policy. The introduction of coal power marked a significant shift in Zambia’s energy strategy, reflecting a cautious approach to incorporating fossil fuels alongside renewable sources. Solar power generation in Zambia began more recently, with the first recorded output of 120 GWh in 2019. This figure increased to 150 GWh by 2020, indicating a growing but still modest contribution to the national electricity supply. The development of solar power was part of broader efforts to diversify the country’s power generation portfolio and capitalize on Zambia’s high solar irradiance. The expansion of solar energy also aimed to enhance energy security and reduce the environmental footprint associated with fossil fuel use. This nascent solar sector was supported by the commissioning of key solar power plants during this period. Oil-based electricity generation in Zambia exhibited fluctuations over the years. Notably, there was an increase to 700 GWh in 2015, reflecting a temporary reliance on oil-fired generation to supplement supply. However, by 2020, oil-based generation had declined slightly to approximately 730 GWh. These variations may be attributed to changing fuel prices, availability, and operational considerations within the power sector. Although oil-fired generation represented a relatively small portion of Zambia’s overall electricity mix, it provided an important backup source during periods of hydropower shortfall or increased demand. Other renewable energy sources, particularly bioelectricity, contributed modestly to Zambia’s electricity generation between 2000 and 2020. The output from bioelectricity ranged from as low as 10 GWh to a peak of 180 GWh during this period. While these contributions were minor compared to hydropower, they nonetheless represented an important diversification of renewable energy sources. Bioelectricity projects often utilized agricultural residues and other biomass resources, aligning with Zambia’s agricultural economy and efforts to promote sustainable energy practices at a local level. Significant milestones in Zambia’s solar energy capacity were achieved in early 2019 with the commissioning of two major solar power stations. In March 2019, the 54 megawatt (MW) Bangweulu Solar Power Station was brought online, followed by the 34 MW Ngonye Solar Power Station in May 2019. These projects marked a critical expansion of Zambia’s solar infrastructure and demonstrated the country’s commitment to integrating renewable energy technologies beyond hydropower. The addition of these solar plants contributed to increased grid stability and diversification, providing clean energy to meet growing electricity demand. By July 2022, Zambia’s national electricity generation capacity had reached 3,456.8 MW, exceeding the peak national demand, which stood at 2,300 MW. This surplus capacity of approximately 1,156 MW indicated a significant improvement in the country’s ability to meet domestic electricity needs and provided opportunities for regional power exports. The surplus generation capacity was a result of ongoing investments in both renewable and thermal power infrastructure, reflecting strategic planning to accommodate future growth and reduce energy shortages. The excess electricity generated in 2022 was allocated in part to fulfill power supply agreements with neighboring countries, enhancing Zambia’s role as a regional electricity exporter. Specifically, Zambia exported 180 MW of power to Namibia and 100 MW to Zimbabwe. The export to Zimbabwe was governed by a five-year contract under which the state-owned utility, ZESCO Limited, was expected to earn a monthly income of US$6.3 million prior to the commencement of exports in August 2022. These power export agreements not only generated significant revenue for Zambia but also strengthened regional energy cooperation and integration within Southern Africa. Despite the surplus capacity achieved in mid-2022, Zambia faced significant electricity supply challenges by the end of the year due to low water levels at the Kariba Dam. The dam’s reduced reservoir levels adversely affected the output of the 1,080 MW Kariba Hydropower Plant, one of the country’s largest power generation facilities. The diminished hydropower production led to widespread load shedding across the nation, highlighting the vulnerability of Zambia’s electricity supply to climatic and hydrological conditions. This situation underscored the need for diversification and resilience in the power generation mix. Compounding the supply challenges at the end of 2022 were maintenance activities at the Maamba Collieries Coal Fired Power Plant, which has a capacity of 300 MW. The plant’s temporary reduction in output further constrained the available electricity supply, exacerbating the load shedding issues experienced nationwide. The combination of hydropower shortfalls and coal plant maintenance emphasized the critical importance of reliable generation assets and the risks associated with dependence on a limited number of large power stations. In January 2023, Zambia took a major step toward expanding its renewable energy infrastructure by signing a Memorandum of Understanding (MOU) and Joint Development Agreement (JDA) valued at US$2 billion with the United Arab Emirates. This agreement aimed to develop 2,000 MW of solar power projects, representing one of the largest renewable energy investments in the country’s history. The partnership with the UAE signaled Zambia’s commitment to harnessing solar energy on a large scale, diversifying its energy sources, and reducing reliance on hydropower and fossil fuels. Further advancing its renewable energy ambitions, in April 2023, ZESCO Limited entered into a Power Purchase Agreement (PPA) worth 67 billion Zambian Kwacha (approximately US$3.4 billion) with Integrated Clean Energy Power Company of China. This agreement focused on the development of 2,400 MW of renewable energy capacity. The project was planned to be implemented in phases, with the first phase comprising two 300 MW solar power plants located in Central Province and Southern Province, respectively. Both plants were expected to be connected to the national grid by the end of 2024, marking a significant enhancement of Zambia’s solar power infrastructure. Zambia’s electrical energy export earnings have demonstrated substantial growth from 2021 through 2025, reflecting increased regional electricity trade and the country’s expanding generation capacity. Monthly earnings peaked at 901.3 million Zambian Kwacha in November 2023, with strong performance continuing into 2024 and projected for 2025. This upward trend in export revenues underscores the growing importance of electricity exports as a source of foreign exchange and economic diversification. Zambia’s strategic position as a power exporter within Southern Africa has been bolstered by its expanding generation capacity and regional power agreements. Analysis of electricity export data reveals variability in monthly revenues, with some months in 2022 and 2025 recording no earnings, while other months consistently generated hundreds of millions of Zambian Kwacha. This fluctuation reflects factors such as seasonal demand variations, maintenance schedules, and the timing of export contracts. Nonetheless, the overall trajectory indicates a strengthening and increasingly reliable contribution of electricity exports to Zambia’s economy. The development of new renewable energy projects and enhanced grid capacity are expected to further stabilize and increase export revenues in the coming years.

Zambia has consistently been a net importer of petroleum products, reflecting its reliance on external sources to meet domestic fuel demand. In 2019, petroleum and mineral fuels constituted the country’s leading import category, with imports valued at approximately US$1.26 billion. This significant expenditure underscores Zambia’s dependence on imported oil products to support its transportation, industrial, and energy sectors. The predominance of oil and mineral fuels in Zambia’s import profile highlights the critical role petroleum plays in the nation’s economy, despite the absence of substantial domestic crude oil production. In an effort to improve the responsiveness of fuel pricing to global market dynamics, the Energy Regulation Board (ERB) of Zambia implemented a key policy change in January 2022. The ERB shifted from a quarterly to a monthly fuel pricing cycle, allowing fuel prices to more accurately reflect fluctuations in international oil prices as well as changes in the exchange rate between the Zambian Kwacha (ZMW) and the US Dollar from the preceding month. This transition aimed to enhance market efficiency and provide consumers and businesses with prices that better corresponded to real-time global economic conditions, thereby reducing the lag between international price movements and domestic fuel costs. Following a strategic policy decision by the United Party for National Development (UPND) government, the Indeni Petroleum Refinery, Zambia’s sole domestic refinery, was placed on care and maintenance status. This decision effectively halted local refining operations, resulting in Zambia’s fuel market being supplied exclusively by imported petroleum products. Consequently, the country now sells only one type of diesel: imported Low Sulphur Gasoil/Diesel. The shift to reliance on imported low sulphur diesel aligns with environmental and quality standards, as low sulphur fuels produce fewer emissions and are compatible with modern engines. However, this transition also signifies Zambia’s increased vulnerability to international market fluctuations and supply chain disruptions, given the absence of domestic refining capacity. Fuel price trends in Zambia between December 2021 and early 2025 have exhibited notable fluctuations, reflecting both global oil market volatility and domestic policy adjustments. Petrol prices, denominated in Zambian Kwacha, ranged from ZMW 19.84 in January 2022 to a projected ZMW 34.98 by January 2025. Similarly, prices for low sulphur diesel started at ZMW 18.93 in January 2022 and are also projected to reach ZMW 34.98 by early 2025. These upward trends in fuel prices are influenced by a combination of factors including changes in crude oil prices on the international market, exchange rate movements, and domestic taxation policies. The gradual increase in fuel costs over this period has implications for inflation, transportation costs, and overall economic activity within Zambia. Several key pricing events punctuated this period of fuel price fluctuations. Notably, in September 2022, Zambia restored the Excise Duty and Value Added Tax (VAT) on petroleum products, which had previously been suspended or reduced as a measure to alleviate fuel costs. The reinstatement of these taxes contributed to higher pump prices and was a significant fiscal policy decision aimed at increasing government revenue. Additionally, on 16 December 2021, the final quarterly fuel price cycle was implemented before the transition to monthly pricing. On that date, petrol was priced at ZMW 21.16 per litre, while diesel was priced slightly higher at ZMW 22.29 per litre. These pricing benchmarks provide reference points for analyzing subsequent monthly price adjustments and their impact on consumers and industries. Zambia’s infrastructure for fuel storage and distribution is characterized by a network of bulk fuel depots strategically located across the country, each with varying storage capacities and commissioning dates. The Chipata depot, commissioned in 2022, has a capacity of 7.0 million litres and was constructed at a cost of US$40 million, reflecting recent investments to enhance fuel availability in the Eastern Province. Lusaka’s bulk fuel depot, commissioned in 2013, boasts a capacity of 25.0 million litres and was developed at a cost of US$24.7 million, serving as a major hub for the capital region. The Mansa depot, with a capacity of 6.5 million litres, was commissioned in 2021, further expanding storage capacity in the Northern Province. Mongu’s depot, commissioned in 2016, also holds 6.5 million litres and was built at a cost of US$27.4 million, supporting fuel distribution in Western Province. Mpika’s depot, with the same capacity of 6.5 million litres, was commissioned in 2014 and cost US$8.1 million, serving the Muchinga Province. Ndola’s bulk fuel depot, commissioned in 1973, remains the largest with a capacity of 110 million litres, acting as a central storage facility in the Copperbelt region. Lastly, the Solwezi depot, commissioned in 2015, has a capacity of 15.5 million litres and was constructed at a cost of US$7.0 million, catering to the North-Western Province. Collectively, these depots provide a total storage capacity of approximately 177 million litres, forming the backbone of Zambia’s fuel storage and distribution network. A critical component of Zambia’s petroleum supply chain is the Tazama Pipeline, a 1,710-kilometer pipeline that transports refined petroleum products from the port of Dar-es-Salaam in Tanzania to the Indeni Energy Company in Ndola, Zambia. This pipeline is a joint venture between the Government of Zambia, which holds a 66.7% stake, and the Government of Tanzania, which owns 33.3%. Construction of the pipeline commenced in January 1966 and was completed in 1968, marking a significant milestone in regional energy infrastructure development. The Tazama Pipeline has played a vital role in ensuring a steady supply of petroleum products to Zambia, bypassing the need for overland transport from distant ports and reducing logistical costs and risks. The financing of the Tazama Pipeline was secured through a loan from Mediobanca, an Italian investment bank. In 1967, Zambia and Italy jointly credited GBP 11,070,000, while Tanzania and Italy credited GBP 5,542,407 towards the project, both loans carrying an interest rate of 6%. These loans were structured to be repaid in 15 equal annual installments, with repayments sourced from the pipeline’s earnings. As of 2022, the Tazama Pipeline had been operational for 54 years, underscoring its durability and continued importance to Zambia’s petroleum supply chain despite its aging infrastructure. Looking toward future developments, Zambia and Namibia have embarked on a collaborative initiative known as the Namibia-Zambia Multi-Product Petroleum and Natural Gas Pipelines Project (NAZOP). Although specific technical and operational details remain forthcoming, the two countries signed a memorandum of understanding (MoU) in October 2022 to support and facilitate this private sector-led project. The NAZOP initiative aims to establish a pipeline capable of supplying between 100,000 and 120,000 barrels of petroleum products per day, which would significantly enhance regional energy connectivity and security. This project represents a strategic effort to diversify and expand Zambia’s petroleum import routes and reduce dependence on existing infrastructure. Another ambitious infrastructure project under consideration is the Lobito–Lusaka Oil Products Pipeline, a planned 1,400-kilometer pipeline intended to connect the Angolan port of Lobito to Lusaka, Zambia. This project involves key stakeholders including Sonangol, Angola’s state oil company; IDC Zambia Limited, a government-owned investment company; and other strategic investors. Feasibility assessments for the pipeline are ongoing, with construction anticipated to be completed by 2026. The estimated cost of the project is around US$5.0 billion, reflecting the scale and complexity of the undertaking. Once operational, the pipeline is expected to facilitate the efficient transport of oil products from Angola’s coast to Zambia, potentially lowering costs and improving fuel supply reliability. In alignment with the Lobito–Lusaka pipeline project, Zambia announced in January 2023 its intention to acquire a stake in Angola’s Lobito Oil Refinery, located in Benguela Province. The refinery is projected to be completed by 2026 and is designed to have a production capacity of 200,000 barrels per day, making it one of the largest refining facilities in the region. The ownership structure is proposed to allocate 70% of shares to private investors, including Zambia, while the remaining 30% will be retained by Angola’s state oil firm, Sonangol Group. Zambia’s participation in the refinery is part of a broader strategy to secure access to refined petroleum products and integrate more deeply into regional energy value chains. In September 2023, TAZAMA, the operator of the Tazama Pipeline, initiated construction of a 3-kilometer pipeline intended to link the existing Tazama Pipeline directly to the Mpika fuel storage depot, which has a capacity of 6.5 million litres. This project was undertaken at a cost of ZMW 31.26 million (approximately US$1.5 million) and aims to divert a portion of imported low sulphur diesel to serve the Northern circuit of Zambia. The new pipeline is expected to reduce fuel transportation costs over the long term by providing a more direct supply route to the northern regions, thereby enhancing fuel availability and affordability in those areas. The Mpika tie-in pipeline represents the first phase of a broader plan to develop an interconnected network of distribution pipelines across Zambia. This planned network will link other fuel storage depots throughout the country, significantly improving the efficiency and reliability of fuel distribution nationwide. By reducing reliance on road transport for fuel delivery, the pipeline network is anticipated to lower logistics costs, minimize fuel losses, and enhance the overall security of fuel supply chains within Zambia. This infrastructure development aligns with national goals to modernize the petroleum sector and support economic growth through improved energy access.

Zambia’s tourism sector derives a significant portion of its revenue from both local and international visitors drawn to the iconic Victoria Falls, situated in the town of Livingstone. This natural wonder serves as the centerpiece of the country’s tourism industry, attracting travelers eager to witness one of the largest and most spectacular waterfalls in the world. Complementing Victoria Falls are several associated attractions that enhance the visitor experience, including the Livingstone Museum, which offers rich insights into the region’s cultural and historical heritage, and Mosi-oa-Tunya National Park, renowned for its diverse wildlife and scenic landscapes. Together, these sites form a cohesive tourism hub that underpins much of Zambia’s income from travel and leisure activities. In July 2020, despite global challenges impacting travel, the Livingstone Tourism Association reported a record influx of visitors during the Heroes and Unity holidays, a period marked by heightened tourism activity. This surge indicated a peak in domestic tourism, reflecting the resilience and appeal of Zambia’s key attractions even amid broader economic uncertainties. The increased footfall during this holiday period underscored the importance of national celebrations in stimulating local travel and supporting businesses reliant on tourist spending. The international profile of Victoria Falls has been bolstered by visits from notable celebrities, including the American actor Will Smith, whose presence brought additional global attention to the site. Such high-profile visits contribute to Zambia’s growing reputation as a premier tourist destination. Additionally, the country’s luxury hospitality sector has seen significant events, exemplified by an entrepreneur who celebrated a lavish £3 million wedding at The Royal Livingstone Hotel. This prestigious establishment, located on the banks of the Zambezi River, offers exclusive accommodations and experiences that attract affluent visitors and special events, further enhancing the country’s tourism appeal. Efforts to stimulate domestic tourism have been supported by strategic investments in infrastructure and accommodation. In March 2021, African Eagle Hotels, a multinational hotel group, announced ambitious plans to expand its presence within Zambia by constructing two new hotels at Kasaba Bay Resort, located in Nsumbu National Park. The project included a 2-star hotel with an estimated cost of US$20 million and a more upscale 5-star hotel budgeted at US$30 million. Both properties were slated for completion by 2023, reflecting a concerted effort to diversify Zambia’s tourism offerings beyond Victoria Falls and to develop the Northern Circuit as a key destination for both local and international tourists. Complementing private sector initiatives, the Zambian government demonstrated its commitment to tourism development through budgetary allocations. In October 2021, the government earmarked ZMW 150 million, equivalent to approximately US$8.6 million, specifically for the development of Kasaba Bay. This investment aimed to enhance infrastructure and services within the area, thereby stimulating tourism growth in Zambia’s Northern Circuit. The allocation was part of a broader strategy to decentralize tourism activity, promote regional development, and increase the sector’s contribution to the national economy. Tourism statistics from 1995 through 2020 reveal a dynamic and fluctuating pattern in visitor numbers, revenue generation, and economic impact. In 1995, Zambia welcomed 163,000 tourists; however, data on tourism receipts and the sector’s contribution to the Gross National Product (GNP) for that year were not available. The following year, 1996, saw a substantial increase of 62.0% in tourist arrivals, rising to 264,000 visitors, although receipts and GNP contribution figures remained unreported. This marked growth indicated a burgeoning interest in Zambia as a travel destination during the mid-1990s. By 1997, tourist numbers had climbed to 341,000, representing a 29.2% increase over the previous year. This growth translated into tourism receipts of US$29 million, with the sector contributing 0.67% to Zambia’s GNP. The upward trajectory continued from 1998 to 2001, as tourist arrivals steadily increased from 362,000 to 492,000. Correspondingly, tourism receipts rose from US$40 million in 1998 to US$80 million by 2001, while the sector’s share of the GNP grew from 1.1% to 2.0%. This period reflected a phase of sustained expansion, driven by improved infrastructure, marketing efforts, and growing international interest. In 2002, the number of tourists reached 565,000, marking a 14.8% growth from the previous year. Despite the increase in arrivals, tourism receipts experienced a decline to US$64 million, and the sector’s contribution to GNP fell to 1.5%. This divergence suggested challenges in converting visitor numbers into proportional revenue, potentially due to changes in visitor spending patterns or economic conditions. The following year, 2003, saw a sharp decline in tourist arrivals by 26.9% to 413,000; however, paradoxically, receipts increased to US$88 million, and the GNP contribution rose to 1.8%. This anomaly may reflect a shift toward higher-spending tourists or improvements in revenue collection and reporting. Between 2004 and 2007, Zambia experienced robust growth in its tourism sector. Tourist arrivals surged from 515,000 in 2004 to 897,000 in 2007, while tourism receipts escalated dramatically from US$92 million to an impressive US$599 million. The sector’s contribution to GNP fluctuated during this period, ranging from 1.5% to 5.4%. Notably, in 2005, tourism receipts peaked at US$447 million, accounting for 5.4% of the GNP, coinciding with a 29.9% increase in tourist arrivals to 669,000. This period marked a high point in Zambia’s tourism development, driven by increased international marketing, infrastructure improvements, and the global appeal of its natural attractions. The years 2008 and 2009 brought challenges, with tourist numbers declining by 9.5% and 12.6% respectively. Receipts decreased to US$542 million in 2008 and further to US$474 million in 2009, while the sector’s share of GNP stabilized around 3.0% to 3.1%. These declines were likely influenced by global economic downturns and other external factors affecting international travel. Nevertheless, the sector demonstrated resilience, recovering between 2010 and 2011 as tourist arrivals increased to 920,000 and receipts rose to US$555 million, maintaining a 2.4% contribution to GNP. From 2012 to 2015, tourist arrivals fluctuated between 859,000 and 932,000, with receipts ranging from US$518 million to US$660 million. The sector’s contribution to GNP during this period varied between 2.0% and 3.1%, reflecting moderate stability amid global economic uncertainties. Between 2016 and 2019, Zambia’s tourism sector experienced steady growth, with tourist numbers rising from 956,000 to 1,270,000. Correspondingly, tourism receipts increased from US$683 million to US$820 million, and the sector’s share of GNP grew from 2.5% to 3.5%. This sustained expansion was supported by enhanced marketing, improved infrastructure, and diversification of tourist attractions. The year 2020 saw a dramatic decline in tourist arrivals, which fell by 60.5% to 502,000. This sharp reduction was attributable to unspecified factors, likely including the global COVID-19 pandemic and associated travel restrictions, which severely impacted international tourism worldwide. Data on tourism receipts and GNP contribution for 2020 were unavailable, reflecting the sector’s disrupted state. In 2021, tourist numbers experienced a slight decrease of 0.4% to 554,200, with financial and GNP data remaining unavailable, indicating a slow recovery phase. By 2022, Zambia’s tourism sector demonstrated a strong rebound, with tourist arrivals increasing by 91.4% to 1,060,788. This resurgence suggested a renewed confidence in travel to Zambia and the effectiveness of efforts to revitalize the industry post-pandemic. However, financial data and information on the sector’s contribution to GNP for 2022 were not yet available, leaving a full assessment of the recovery’s economic impact pending. Overall, these trends illustrate the dynamic nature of Zambia’s tourism industry, shaped by both internal developments and external global influences.

The manufacturing sector in Zambia experienced a general upward trajectory in its contribution to the Gross Domestic Product (GDP) at current prices from 2020 through 2024, as measured quarterly in millions of Zambian Kwacha (ZMW). In 2020, the sector began with a GDP value of 5,293 million ZMW in the first quarter, which gradually increased to 5,556 million ZMW in the second quarter. This growth accelerated in the latter half of the year, with the third quarter reaching 7,179 million ZMW and the fourth quarter rising further to 7,605 million ZMW. The upward momentum continued into 2021, where the first quarter recorded a significant jump to 9,200 million ZMW, followed by an even larger increase to 11,654 million ZMW in the second quarter. Although the third and fourth quarters saw slight declines to 10,717 million ZMW and 10,211 million ZMW respectively, the overall year reflected substantial growth compared to 2020. The year 2022 exhibited some fluctuations, with the first quarter at 10,677 million ZMW, dipping to 9,463 million ZMW in the second quarter, and modest recovery in the third quarter at 9,600 million ZMW. The fourth quarter rebounded to 11,019 million ZMW, indicating resilience despite mid-year challenges. In 2023, the sector demonstrated a stronger recovery and expansion, starting with 10,814 million ZMW in the first quarter, a slight decrease to 9,918 million ZMW in the second quarter, followed by a robust increase to 12,892 million ZMW in the third quarter and peaking at 13,734 million ZMW in the fourth quarter. The growth trend persisted into 2024, with quarterly GDP values steadily rising from 13,849 million ZMW in the first quarter to 15,131 million ZMW in the second quarter, then surging to 17,220 million ZMW in the third quarter, and culminating at 17,753 million ZMW in the final quarter. This consistent increase over five years underscored the expanding role of manufacturing in Zambia’s economy. Several key manufacturing companies have played pivotal roles in Zambia’s industrial landscape. African Explosives Zambia stands out as a major producer of explosives, supplying essential materials primarily for the mining sector, which is a cornerstone of the country’s economy. Airumi New Energy Zambia specializes in the manufacture of car batteries and storage batteries, contributing to the energy storage and automotive industries. The Bayer Seed Itaba Plant focuses on the production of maize seed, supporting agricultural productivity and food security by providing high-quality seeds to farmers across the nation. These companies represent a diverse range of manufacturing activities, from industrial inputs to agricultural support, reflecting the multifaceted nature of Zambia’s manufacturing base. Cement production in Zambia is dominated by several prominent companies that have significantly contributed to the sector’s output and infrastructure development. Chilanga Cement is one of the leading producers, known for its extensive product range and established market presence. Dangote Cement, part of the larger Dangote Group, has also become a major player in the Zambian cement industry, leveraging its regional influence and investment capacity to expand production and distribution. Larfarge, another key contributor, adds to the competitive landscape, ensuring a steady supply of cement to meet the demands of construction and infrastructure projects nationwide. Together, these companies have driven growth in cement manufacturing, which is critical for Zambia’s ongoing urbanization and industrialization efforts. In the realm of heavy construction and mining equipment manufacturing, Hitachi Construction Machinery Zambia (HCMZ) is a significant entity, producing machinery that supports the mining and construction sectors. This manufacturing capability is essential given Zambia’s reliance on mining as a major economic activity, necessitating robust equipment for extraction and infrastructure development. Steel manufacturing is undertaken by Kafue Steel Plant and Powerful Diligent Veracious (PDV) Metal Steel, both of which contribute to the supply of steel products used in construction, manufacturing, and other industrial applications. These companies help ensure that Zambia maintains a degree of self-sufficiency in critical industrial materials, reducing dependence on imports and fostering local industrial growth. The food processing sector in Zambia encompasses a variety of companies engaged in the transformation of agricultural products into consumable goods. Kalene Hills Fruit Factory specializes in fruit processing, adding value to locally grown fruits and supporting the agricultural economy. Kawambwa Tea Industries Limited is involved in tea production, contributing to both domestic consumption and export potential. Mununshi Fruit Company Limited (MFCL) focuses on banana processing, while Northern Coffee Company Limited (NCCL) processes coffee, both of which are important cash crops in Zambia. Zambeef Products operates across multiple food processing lines, including meat, dairy, eggs, animal feed, and leather, making it one of the largest agribusinesses in the country. Zambia Sugar Plc produces sugar and molasses ethanol, playing a critical role in the sugar industry and biofuel production. The Zambia National Service (ZNS) Chingola Milling Plant manufactures mealie meal, a staple food product essential for food security. Collectively, these companies form a robust food processing industry that supports agricultural diversification, food availability, and export earnings. Other manufacturing activities in Zambia are carried out by a range of specialized companies. Metal Fabricators of Zambia (ZAMEFA) produces electric power cables, which are vital for the country’s expanding electricity infrastructure. Mpande Limestone and Ndola Lime Company Limited (NLC) are engaged in the production of limestone, a key raw material for cement manufacturing and other industrial uses. Naipu Mining Machinery (Zambia) Company Limited manufactures mining equipment, providing essential tools and machinery for the mining sector. Fertilizer production is undertaken by Nitrogen Chemicals Of Zambia (NCZ) and United Capital Fertilizer (UCF) Zambia Limited, both of which supply fertilizers that enhance agricultural productivity. These diverse manufacturing activities contribute to Zambia’s industrial base by supplying critical inputs to various sectors, including energy, construction, agriculture, and mining. Additional companies further diversify Zambia’s manufacturing sector. Proton Electro Cables Zambia and Uniflex Wires and Cables Ltd both produce electric cables, supporting the electrical and telecommunications infrastructure. Sunbird Energy manufactures cassava ethanol, contributing to renewable energy and biofuel initiatives. Trade Kings Zambia Limited is involved in the production of fast-moving consumer goods (FMCG) and steel products, catering to both consumer markets and industrial needs. Zambian Breweries produces alcoholic beverages, representing a significant segment of the beverage industry. Zambia Forestry and Forest Industries Corporation Plc (ZAFFICO) engages in the production of wood and wood & paper products, supporting the forestry sector and providing raw materials for construction and packaging industries. Together, these companies illustrate the breadth of Zambia’s manufacturing capabilities, spanning energy, consumer goods, construction materials, and forestry products. The Composite Purchasing Managers’ Index (PMI) serves as a key indicator of the health of Zambia’s manufacturing sector, with values above 50 signaling expansion and values below 50 indicating contraction. Between 2021 and 2025, the PMI exhibited fluctuations that reflected varying economic conditions and sectoral performance. In 2021, the PMI ranged from a low of 47.10 in February to a high of 51.80 in November, indicating periods of contraction and expansion within the year. The year 2022 saw the PMI oscillate between 48.30 in December and 50.50 in both April and July, suggesting a generally subdued but occasionally expanding manufacturing environment. In 2023, the index ranged from a low of 46.90 in March to a high of 51.40 in May, revealing volatility but an overall tendency toward growth during the mid-year months. The PMI in 2024 mostly remained below the expansion threshold of 50, fluctuating between 45.60 in September and 50.80 in December, indicating a period of contraction with brief signs of recovery toward the end of the year. Early 2025 showed slight improvement, with PMI values of 50.90 in January, February, and April, and a rise to 51.40 in May, suggesting a modest resurgence in manufacturing activity. These PMI trends provide insight into the cyclical nature of Zambia’s manufacturing sector and its responsiveness to broader economic factors. Annual cement production in Zambia demonstrated an overall increasing trend from 2020 to 2024, reflecting growth in the construction and infrastructure sectors. In 2020, cement production stood at 2,127,832 metric tonnes (MT). This figure rose substantially to 2,732,013 MT in 2021, marking a significant year-on-year increase. However, production dipped to 2,369,193 MT in 2022, indicating a temporary contraction possibly due to economic or supply chain challenges. The sector rebounded in 2023, with production climbing back to 2,740,288 MT. The upward trend continued strongly into 2024, when cement output reached 3,265,299 MT, the highest level recorded in the five-year period. This growth in cement manufacturing output underscores the expanding demand driven by urban development, infrastructure projects, and industrial activities within Zambia.

As of 2022, Zambia implemented a free education policy aimed specifically at public early childhood and secondary schools, a measure designed to enhance accessibility and reduce financial barriers for learners at these critical stages of education. This policy ensured that children attending government-run early childhood centers and secondary schools could do so without incurring direct tuition fees, thereby promoting greater enrollment and retention rates among vulnerable and low-income populations. The initiative formed part of the government’s broader commitment to improving educational outcomes and fostering equitable opportunities across the country. By eliminating tuition costs at these levels, the policy sought to address historical disparities in access to education and to support the development of a more inclusive and skilled workforce. The Zambian education system is composed of multiple tiers, encompassing a diverse range of institutions that serve learners from early childhood through to tertiary education. At the foundational level, early childhood centers provide pre-primary education, focusing on the developmental needs of young children and preparing them for formal schooling. Primary schools follow, typically covering seven years of basic education, after which students progress to secondary schools that offer further academic and vocational training over a period of four to five years. Beyond secondary education, Zambia hosts a variety of higher education establishments, including universities and colleges, which deliver undergraduate and postgraduate programs across numerous disciplines. These institutions play a pivotal role in the nation’s academic advancement and professional capacity building, contributing to sectors such as health, engineering, education, and business. Comprehensive information about Zambia’s educational infrastructure, policies, and sectoral challenges is extensively documented in resources such as the “Education in Zambia” overview. This detailed account provides insights into the organizational structure of the education system, the legislative frameworks governing it, and the strategic objectives pursued by the Ministry of Education. It also highlights ongoing issues such as resource constraints, teacher shortages, and regional disparities in educational attainment. By examining enrollment statistics, curriculum reforms, and government initiatives, the overview offers a nuanced understanding of how Zambia’s education sector has evolved over time and the efforts underway to enhance quality and inclusivity. Such documentation serves as a valuable reference for policymakers, educators, and researchers interested in the dynamics shaping education in Zambia. In addition to general overviews, detailed listings of educational institutions across the country are available, facilitating a clearer picture of the distribution and variety of schools. The “List of schools in Zambia” compiles an extensive catalog of primary and secondary schools, encompassing both public and private establishments. This directory provides essential information such as school names, locations, and sometimes enrollment figures, enabling stakeholders to assess educational coverage and identify areas requiring further development. The availability of such data supports transparency and planning, allowing for targeted interventions to improve access and quality in underserved regions. It also assists parents and students in making informed decisions about schooling options within their communities. Higher education institutions are similarly documented in the “List of universities in Zambia,” which serves as a comprehensive directory of universities offering tertiary education throughout the country. This list includes public and private universities, detailing their respective academic programs, campuses, and areas of specialization. Universities in Zambia contribute significantly to the nation’s intellectual capital by providing advanced training and research opportunities in fields ranging from medicine and law to engineering and social sciences. They also play a crucial role in driving innovation, supporting economic development, and addressing national challenges through scholarly inquiry and community engagement. The cataloging of these institutions underscores the expanding landscape of higher education in Zambia and highlights the country’s commitment to fostering a knowledge-based economy through investment in academic excellence.

The Bank of Zambia (BOZ) serves as the central bank of Zambia, holding the primary responsibility for overseeing the country’s monetary policy and regulating the banking sector. As the apex financial institution, BOZ formulates and implements monetary policy through key instruments such as adjustments to the policy rate and the statutory reserve ratio. These tools enable the bank to influence liquidity, inflation, and overall economic stability. Detailed records of policy rate and reserve ratio changes from November 2015 through May 2025 illustrate the dynamic approach taken by the Bank of Zambia in response to evolving economic conditions. On 5 November 2015, the Bank of Zambia initiated a tightening phase in its monetary policy by raising the policy rate by 300 basis points, elevating it to 15.50%. This significant increase reflected concerns about inflationary pressures and the need to stabilize the Kwacha, Zambia’s national currency. Following this hike, the policy rate was maintained at 15.50% from 19 February 2016 through 16 November 2016, indicating a period of monetary policy stability aimed at consolidating the tightening measures and allowing their effects to permeate the economy. Subsequently, on 22 February 2017, the Bank of Zambia shifted towards an easing stance by reducing the policy rate by 150 basis points to 14.00%. Concurrently, the Overnight Lending Facility (PLF) rate was set at 600 basis points above the policy rate, establishing a ceiling for short-term borrowing costs within the banking sector. In addition, the statutory reserve ratio was lowered by 250 basis points to 15.50%, thereby releasing additional liquidity into the financial system. These coordinated adjustments signaled the central bank’s intent to stimulate economic activity by making borrowing more affordable and increasing the availability of credit. The easing trend continued throughout 2017 with successive reductions in the policy rate: on 17 May, it was lowered to 12.50%; on 10 August, further reduced to 11.00%; and on 22 November, decreased again to 10.25%. Corresponding to these cuts, the statutory reserve ratio was also progressively reduced, first to 9.50% and later to 8.00%, further enhancing liquidity in the banking system. This series of reductions reflected the Bank of Zambia’s response to subdued economic growth and the need to encourage lending and investment. On 16 February 2018, the policy rate was trimmed by an additional 50 basis points to 9.75%, a level that was maintained consistently through 20 February 2019. This period of policy stability suggested that the central bank was monitoring the impact of previous easing measures on inflation and economic growth, balancing the need to support the economy without stoking excessive inflationary pressures. However, on 22 May 2019, the Bank of Zambia reversed course slightly by increasing the policy rate by 50 basis points to 10.25%, a level that was maintained through 21 August 2019. Later that year, on 20 November 2019, the policy rate was raised more sharply by 125 basis points to 11.50%, reflecting renewed concerns about inflation and currency stability amid changing domestic and external economic conditions. Entering 2020, the policy rate was held at 11.25% on 19 February, but the onset of the COVID-19 pandemic and its economic disruptions prompted the Bank of Zambia to implement substantial easing measures. On 20 May 2020, the policy rate was cut by 225 basis points to 9.25%, followed by a further reduction of 125 basis points to 8.00% on 19 August 2020. The rate remained steady at 8.00% through 18 November 2020, as the central bank sought to cushion the economy from the pandemic’s adverse effects by lowering borrowing costs and encouraging credit flow. In early 2021, the policy rate was increased modestly by 50 basis points to 8.50% on 17 February, a level maintained through 1 September 2021. Later that year, on 24 November 2021, the rate was raised again by 50 basis points to 9.00%, signaling the beginning of a tightening phase aimed at addressing inflationary pressures as economic activity rebounded. The policy rate remained at 9.00% through 23 November 2022, with a slight increase to 9.25% on 15 February 2023. This increase coincided with a notable adjustment in the statutory reserve ratio, which was raised from 9.00% to 11.50% on 2 February 2023. The simultaneous tightening of both the policy rate and reserve requirements indicated a concerted effort by the Bank of Zambia to manage liquidity and contain inflationary risks. Further increments in the policy rate followed throughout 2023: on 17 May, it was raised to 9.50%; on 23 August, increased to 10.00%; and on 22 November, elevated to 11.00%. In the same month, the statutory reserve ratio experienced two significant hikes: first, by 300 basis points to 14.50% on 6 November, and then by 250 basis points to 17.00% on 27 November. These measures collectively tightened monetary conditions, aiming to stabilize the Kwacha and curb inflation amid global economic uncertainties and domestic fiscal pressures. The tightening cycle continued into 2024, with the policy rate raised by 150 basis points to 12.50% on 14 February. This adjustment was accompanied by a substantial increase in the statutory reserve ratio by 900 basis points to 26.00% on 2 February 2024, representing one of the most aggressive liquidity contraction measures in recent years. These actions underscored the Bank of Zambia’s commitment to maintaining price stability and safeguarding the financial system. On 15 May 2024, the policy rate was further increased by 100 basis points to 13.50%, a level that was maintained on 14 August 2024. Subsequently, on 13 November 2024, the rate was raised by an additional 50 basis points to 14.00%. The upward trajectory continued into 2025, with the policy rate increased by 50 basis points to 14.50% on 12 February and held steady at this level on 23 May 2025. This sustained tightening reflected ongoing efforts to anchor inflation expectations and support the Kwacha’s exchange rate stability. In addition to its monetary policy operations, the Bank of Zambia actively manages its foreign exchange reserves by purchasing gold locally. Key sources of this gold include the Kansanshi Copper Mine and the Zambia Gold Company, both significant contributors to the country’s mineral exports. By acquiring refined gold from these domestic producers, the central bank bolsters its reserves, enhancing financial stability and providing a hedge against external shocks. The cumulative gold reserves held by the Bank of Zambia have increased markedly over recent years. In 2021, the reserves amounted to US$43 million. This figure nearly doubled in 2022, reaching US$83 million, with the bank setting a target of US$100 million to further strengthen its reserve base. By 2024, the value of gold reserves had surged to approximately US$190 million, equivalent to about ZMW 3.7 billion, corresponding to roughly 2,469.17 kilograms of refined gold. The upward trend continued into 2025, with reserves valued at approximately US$233.5 million, or about ZMW 6.3 billion, comprising around 2,163.26 kilograms of refined gold. This accumulation reflects the Bank of Zambia’s strategic emphasis on diversifying and enhancing its reserve assets. Commercial banks in Zambia have experienced fluctuations in their average lending rates over recent years, influenced by the central bank’s monetary policy stance and broader economic conditions. In 2016, the average lending rate stood at 29.20%, reflecting a relatively high cost of borrowing. This rate declined to 23.60% in 2018, coinciding with the Bank of Zambia’s easing measures aimed at stimulating credit growth. However, lending rates rose again to 26.57% in 2020, influenced by tightening monetary conditions and heightened risk perceptions during the COVID-19 pandemic. By 2022, the average lending rate had slightly decreased to 25.22%, indicating a modest easing in credit costs as economic conditions stabilized. The Bank of Zambia’s monetary policy adjustments over the decade illustrate a responsive and adaptive approach to managing the country’s economic challenges. Periods of tightening were primarily aimed at controlling inflation, stabilizing the Kwacha, and safeguarding financial stability, while phases of easing sought to support economic growth and mitigate external shocks. Through careful calibration of the policy rate and statutory reserve ratio, the central bank has endeavored to balance the competing demands of price stability and economic development within Zambia’s evolving macroeconomic landscape.

In May 2025, the government of Zambia formalized a Joint Venture (JV) agreement with Akums Drugs and Pharmaceuticals Limited, a prominent pharmaceutical company based in India known for its extensive portfolio and significant market presence. This strategic partnership marked a pivotal development in Zambia’s healthcare sector, reflecting the government’s commitment to enhancing local pharmaceutical manufacturing capabilities and reducing dependence on imported medicines. Akums Drugs and Pharmaceuticals Limited, recognized as one of India’s largest pharmaceutical manufacturers, brought considerable expertise and technological resources to the collaboration, positioning the joint venture for impactful contributions to Zambia’s health infrastructure. The primary objective of the JV agreement was to establish a state-of-the-art manufacturing plant within Zambia, specifically designed to produce approximately 150 essential medicines locally. This initiative aimed to address critical gaps in the availability and affordability of essential drugs, which are vital for treating a broad spectrum of health conditions prevalent in the country. By producing these medicines domestically, the joint venture sought to improve the reliability of supply chains, reduce lead times, and mitigate the vulnerabilities associated with international procurement, such as price fluctuations and logistical challenges. The selection of the 150 essential medicines for local production was informed by national health priorities and the World Health Organization’s Model List of Essential Medicines, ensuring that the focus remained on drugs that are indispensable for public health. This included medications for communicable diseases, non-communicable diseases, maternal and child health, and other critical therapeutic categories. The manufacturing plant was expected to incorporate advanced pharmaceutical production technologies, adhering to international quality standards, thereby ensuring that the locally produced medicines met stringent efficacy and safety requirements. Furthermore, the joint venture was anticipated to stimulate economic growth by creating employment opportunities and fostering skills development within Zambia’s pharmaceutical sector. It also aligned with broader government policies aimed at promoting industrialization and self-sufficiency in healthcare. The establishment of this manufacturing facility represented a significant step toward strengthening Zambia’s healthcare system, enhancing access to essential medicines, and ultimately improving health outcomes for the population. Through this collaboration, Zambia positioned itself to become a regional hub for pharmaceutical production, potentially facilitating exports to neighboring countries and contributing to the broader East African health economy.

Zambia’s transportation system comprises a multifaceted network that integrates road, rail, air, and water transport, reflecting the country’s efforts to develop a comprehensive infrastructure capable of supporting its economic activities and regional connectivity. Among these modes, road transport dominates as the principal method for moving both goods and passengers within Zambia. The extensive reliance on roads stems from their flexibility and reach, enabling access to remote and rural areas where alternative transport options may be limited or unavailable. This predominance of road transport underscores its vital role in facilitating domestic trade, agriculture, and access to essential services across the country. The road network in Zambia constitutes a cornerstone of the national infrastructure, serving as the primary conduit for internal connectivity and cross-border trade with neighboring countries. Zambia’s strategic geographic location in southern Africa positions it as a landlocked transit hub, making its road infrastructure crucial not only for internal mobility but also for regional economic integration. The road system connects major urban centers such as Lusaka, Ndola, and Kitwe, as well as linking Zambia to neighboring states including the Democratic Republic of Congo, Tanzania, Zimbabwe, Malawi, Mozambique, and Angola. This network includes both paved and unpaved roads, with ongoing efforts to expand and upgrade key routes to improve transport efficiency and reduce travel times. The government, often in partnership with international development agencies, has invested in road rehabilitation projects to enhance the durability and safety of these vital arteries, recognizing their importance in supporting commerce and socio-economic development. Complementing the road system, Zambia’s rail transport infrastructure plays a significant role in the movement of freight and passengers, contributing to the overall transport framework. The country’s rail network, historically developed during the colonial era, remains a critical asset for bulk cargo transportation, particularly for mining exports such as copper, which is central to Zambia’s economy. The rail lines connect major mining regions in the Copperbelt province to key ports in neighboring countries, facilitating the export of minerals to global markets. Passenger rail services, while less prominent than road transport, provide an alternative mode of travel for certain routes, offering cost-effective and reliable options for long-distance journeys. The rail system is operated primarily by Zambia Railways Limited, which has undergone various modernization and rehabilitation initiatives aimed at improving service quality and expanding capacity to meet growing demand. Air transport in Zambia is supported by a network of airports distributed throughout the country, playing an integral role in ensuring both domestic and international connectivity. The primary international gateway is Kenneth Kaunda International Airport in Lusaka, which handles the majority of Zambia’s air traffic and connects the country to major regional and global destinations. Other significant airports include Harry Mwanga Nkumbula International Airport in Livingstone, which serves as a key entry point for tourists visiting the Victoria Falls, as well as airports in Ndola, Mfuwe, and Chipata. These airports facilitate not only passenger travel but also the movement of high-value and time-sensitive cargo, thereby supporting sectors such as tourism, business, and agriculture. The development and maintenance of airport infrastructure remain priorities for the government to enhance Zambia’s accessibility and promote economic growth through improved air connectivity. Water transport in Zambia leverages the country’s extensive network of rivers and lakes, providing an additional mode of transportation, particularly in regions where road and rail access is limited. The Zambezi River, along with other waterways such as the Luangwa and Kafue rivers, serves as natural transport corridors that have historically supported local communities and trade activities. Lake Tanganyika and Lake Mweru also contribute to waterborne transport, facilitating the movement of goods and passengers in border areas adjacent to the Democratic Republic of Congo and Tanzania. Although water transport accounts for a smaller proportion of overall transport activity compared to road and rail, it remains important for certain remote and rural areas where infrastructure development is constrained. Efforts to enhance water transport capacity include the improvement of port facilities and the introduction of modern vessels to increase safety and efficiency, thereby integrating waterborne routes into the broader national transport system.

Positive macroeconomic indicators in Zambia became increasingly evident following a series of significant economic reforms implemented during the early and mid-1990s. These reforms were largely aimed at stabilizing the economy, promoting sustainable growth, and enhancing the efficiency of resource allocation. Prior to these changes, Zambia faced numerous economic challenges, including high inflation, fiscal deficits, and a reliance on copper exports that made the economy vulnerable to external shocks. The reform agenda sought to address these issues through structural adjustment programs, liberalization of markets, and improvements in fiscal management, which collectively contributed to more stable and favorable macroeconomic conditions. A key component of Zambia’s economic reform strategy was the adoption of a floating exchange rate system. This shift allowed the value of the Zambian kwacha to be determined by market forces rather than being fixed by the government. The move towards a floating exchange rate was intended to correct persistent balance of payments deficits and to improve the competitiveness of Zambian exports by allowing currency depreciation when necessary. Alongside this, the establishment of open capital markets played a critical role in attracting foreign investment and facilitating the efficient allocation of financial resources. Together, these policies imposed a greater degree of fiscal discipline on the Zambian government by limiting its ability to finance deficits through monetary expansion and by encouraging more prudent fiscal management. The enhanced transparency and accountability in fiscal operations helped to build investor confidence and laid the foundation for sustained economic growth. The economic policies introduced during this period also facilitated the diversification of Zambia’s export sector, which had historically been dominated by copper and other traditional commodities. Recognizing the risks associated with overdependence on a single commodity, policymakers encouraged the development of alternative export products and sectors. This diversification was supported by reforms that improved the business environment, reduced barriers to trade, and promoted private sector participation. As a result, Zambia began to expand its export base to include agricultural products, manufactured goods, and services, thereby reducing vulnerability to fluctuations in global copper prices. The diversification of exports not only contributed to greater economic stability but also created new opportunities for employment and income generation across different regions of the country. The tourism industry in Zambia experienced notable growth during the post-reform period, becoming an increasingly important contributor to the country’s broader economic expansion. The government and private sector invested in developing tourism infrastructure, including accommodations, transport networks, and marketing campaigns to promote Zambia’s natural attractions such as Victoria Falls, national parks, and wildlife reserves. Improvements in security and regulatory frameworks further enhanced the sector’s appeal to international tourists. The growth of tourism generated foreign exchange earnings, created jobs, and stimulated demand for local goods and services, thereby supporting economic diversification and rural development. This expansion of the tourism industry complemented other sectors and helped to spread the benefits of economic growth more widely across the population. The availability of inputs necessary for expanding businesses also improved significantly as a result of the reforms. By liberalizing markets and encouraging private sector development, the government facilitated better access to capital, technology, and skilled labor. Financial sector reforms, including the establishment of commercial banks and microfinance institutions, enhanced the availability of credit to entrepreneurs and small businesses. Additionally, improvements in infrastructure such as roads, telecommunications, and energy supply reduced operational costs and increased productivity. These developments created a more conducive environment for business growth and innovation, enabling firms to scale up operations and compete more effectively in both domestic and international markets. The enhanced availability of inputs was therefore a critical factor in supporting overall economic development and fostering a more dynamic private sector. Certain areas within the Copper Belt region experienced a notable economic revival during this period, largely attributed to the spin-off effects from substantial capital reinvestment in the mining sector. The Copper Belt, historically the heartland of Zambia’s mining industry, had suffered economic decline due to falling copper prices and underinvestment in the preceding decades. However, renewed investment in mining operations, including modernization of facilities and exploration of new deposits, injected fresh capital into the region. This reinvestment stimulated demand for goods and services, leading to the growth of ancillary industries such as manufacturing, construction, and retail. The multiplier effects of mining sector revitalization contributed to job creation, increased incomes, and improved infrastructure in the Copper Belt, thereby fostering broader economic revival. The resurgence of economic activity in this region underscored the importance of mining as a driver of growth while also highlighting the benefits of linkages to other sectors of the economy.

In April 2022, Zambia’s Ministry of Agriculture, acting through its Plant Quarantine and Phytosanitary Service (PQPS), granted approval for the first consignment of Zambian-grown avocados to be exported to countries within the European Union. This initial shipment consisted of over 37 metric tons of avocados, representing a significant development in Zambia’s agricultural export capabilities. The approval process involved rigorous phytosanitary inspections and compliance with stringent EU import standards, reflecting the country’s commitment to meeting international quality and safety requirements. The successful clearance of this consignment not only opened new markets for Zambian farmers but also demonstrated the effectiveness of the PQPS in facilitating trade while safeguarding plant health. This milestone was emblematic of Zambia’s broader strategic initiative to diversify its economy, which had historically been heavily reliant on copper mining. Recognizing the vulnerabilities associated with dependence on a single commodity, the Zambian government prioritized the expansion and modernization of the agricultural sector as a key driver of sustainable economic growth. By promoting the cultivation and export of high-value crops such as avocados, Zambia sought to reduce its exposure to commodity price fluctuations and create new employment opportunities in rural areas. The avocado export approval thus signified a tangible step toward achieving these diversification goals, underscoring the sector’s potential to contribute significantly to foreign exchange earnings and rural development. The emphasis on agricultural diversification also aligned with regional and global trends favoring the consumption of nutritious, fresh produce, which positioned Zambia advantageously to capitalize on emerging markets. The country’s favorable agro-climatic conditions, coupled with investments in improved farming practices and export infrastructure, enhanced its competitiveness in the international avocado market. Furthermore, the government’s support through regulatory frameworks and quality assurance mechanisms helped build confidence among European importers, facilitating smoother market entry. This development exemplified how targeted policy interventions and sectoral reforms could transform Zambia’s export profile, moving beyond traditional mineral exports toward a more balanced and resilient economic structure.

In 2005, the Government of Japan, through the Japan International Cooperation Agency (JICA), played a pivotal role in assisting the Zambian government to introduce the Multi-Facility Economic Zone (MFEZ) programme. This initiative was designed as a strategic effort to stimulate economic development within Zambia by creating an enabling environment for industrial growth and investment. JICA’s involvement was instrumental in providing technical expertise, policy guidance, and capacity-building support that helped lay the foundation for the establishment of these zones. The collaboration reflected a broader trend of international development partners supporting African nations in diversifying their economies and attracting foreign direct investment (FDI). The MFEZ programme was conceived with the primary objective of attracting substantial domestic and foreign direct investment by establishing a strengthened policy and legislative framework that would be conducive to investment. This involved the creation of a regulatory environment that offered clarity, stability, and incentives to investors, thereby reducing the risks and barriers typically associated with investing in developing economies. By focusing on policy and legislative reforms, the programme sought to align Zambia’s economic infrastructure with international best practices, making the country more competitive in the global market. The ultimate goal was to accelerate industrialization, generate employment, and foster sustainable economic growth through increased private sector participation. Multi-Facility Economic Zones are designated special industrial zones that are strategically developed to accommodate both export-oriented and domestic-oriented industries. These zones serve as concentrated hubs where businesses can operate in a streamlined and supportive environment, benefiting from shared infrastructure and services. The dual focus on export and domestic markets allows the MFEZs to cater to a broad range of industries, from manufacturing and agro-processing to services and technology. By concentrating industrial activities within these zones, the programme aimed to create economies of scale, facilitate technology transfer, and enhance productivity. This approach also enabled the government to better manage industrial development, environmental standards, and urban planning within specific geographic areas. To attract and facilitate the establishment of world-class enterprises, the MFEZs were expected to be equipped with well-appointed infrastructure. This included reliable power supply, water, transport links, telecommunications, and waste management systems, all of which are critical to the smooth operation of industrial activities. The provision of high-quality infrastructure was intended to reduce operational costs for businesses and improve their competitiveness. Additionally, the zones were designed to offer streamlined administrative services, such as one-stop shops for licensing and customs clearance, further enhancing the ease of doing business. By creating an environment that combined physical infrastructure with efficient administrative processes, the MFEZs aimed to attract investors who might otherwise be deterred by the challenges of operating in less developed areas. Companies operating within the MFEZ or classified under the Priority Sector were eligible for a range of investment incentives designed to enhance profitability and encourage long-term commitment. One of the key incentives was a corporate tax holiday, whereby companies paid 0% corporate tax for the first five years starting from the year they declared their first dividends. This tax exemption provided a significant financial advantage during the critical early stages of business operations, allowing companies to reinvest profits into expansion and development. Following the initial tax holiday, the tax regime gradually phased in, with companies paying 30% tax on profits for the subsequent five years. This graduated tax structure was intended to balance revenue generation for the government with the need to maintain an attractive investment climate. The tax incentives extended beyond corporate tax rates to include specific provisions on the taxation of profits. For years six to eight, companies were taxed on only 50% of their profits, effectively halving their tax burden during this period. In years nine and ten, the taxable portion of profits increased to 75%, still providing a reduced tax rate compared to the standard corporate tax regime. This phased approach to taxation was designed to support companies as they matured and became more financially stable, easing the transition to full tax liability. It also served as a mechanism to encourage reinvestment and sustained operations within the zones, contributing to the long-term economic objectives of the MFEZ programme. Import duties were another critical component of the incentive package. For a period of five years, companies operating within the MFEZ were exempt from paying import duties on raw materials, capital goods, machinery, including trucks and specialized motor vehicles. This exemption significantly lowered the cost of importing essential inputs and equipment, which is particularly important for industries reliant on imported technology and materials. By reducing these upfront costs, the government aimed to enhance the competitiveness of MFEZ-based enterprises both domestically and internationally. The duty exemption also encouraged the modernization of production processes and the adoption of advanced technologies, contributing to higher productivity and quality standards. In addition to import duty exemptions, Value Added Tax (VAT) on machinery and equipment, including trucks and specialized motor vehicles imported into the zones, was deferred. This VAT deferral meant that companies could delay the payment of VAT until a later stage, improving their cash flow and reducing the initial financial burden associated with capital investments. The deferral mechanism was particularly beneficial for capital-intensive industries where large upfront expenditures on machinery and equipment are common. By easing liquidity constraints, the VAT deferral facilitated faster establishment and expansion of industrial operations within the MFEZs, thereby accelerating economic activity and job creation. Currently, Zambia hosts numerous Multi-Facility Economic Zones, although specific names and locations of these zones are not detailed in the available information. These zones represent a critical element of the country’s industrial strategy, serving as focal points for investment and economic diversification. The proliferation of MFEZs across Zambia reflects the government’s commitment to leveraging these special zones as engines of growth, attracting a mix of domestic and international companies. While the exact distribution and specialization of the zones remain unspecified, their existence underscores the broader policy framework aimed at transforming Zambia’s economic landscape through targeted industrial development and investment promotion.

The Lusaka South Multi-Facility Economic Zone (LS-MFEZ) was established in June 2012 as part of Zambia’s broader strategy to stimulate industrialization and economic diversification. It was designed with a strategic focus on a diverse range of sectors to foster sustainable economic growth. Key industries targeted within the zone included agribusiness, which aimed to leverage Zambia’s agricultural potential by promoting value addition and agro-processing activities. Alongside agribusiness, the zone emphasized packaging and printing industries to support both local manufacturing and export-oriented enterprises. Palm oil processing became a significant sector within the LS-MFEZ, capitalizing on the demand for edible oils and related products. The zone also promoted the development of pulp and packaging boards, facilitating the growth of materials essential for packaging and shipping industries. Pharmaceuticals were another critical focus, attracting companies involved in the manufacture and distribution of medicinal products. In addition, the LS-MFEZ sought to nurture electrical and electronic appliances manufacturing, thereby encouraging the production of consumer and industrial electronics within Zambia. Information and communication technologies (ICTs) formed a vital component of the zone’s development plan, reflecting the increasing importance of digital infrastructure and services in the modern economy. The zone also incorporated education and skills training facilities, recognizing the need for a skilled workforce to sustain industrial growth. Research and development (R&D) activities were encouraged to promote innovation and technological advancement in the various sectors. Furthermore, professional, medical, scientific, and measuring services were integrated into the zone’s framework to provide essential support services that enhance productivity and quality standards across industries. By the year 2020, the Lusaka South Multi-Facility Economic Zone had made significant strides in attracting investment and generating employment. In that year alone, the zone attracted investments totaling US$100.6 million, reflecting growing confidence from both domestic and international investors in the zone’s potential. This annual inflow contributed to an accumulated investment sum of approximately US$567.6 million since the zone’s inception in 2012, underscoring steady growth over the eight-year period. The investments facilitated the establishment and expansion of various enterprises within the zone, leading to substantial job creation. By 2020, the LS-MFEZ had generated around 7,100 jobs, providing employment opportunities across multiple sectors and contributing to the reduction of unemployment in the region. The jobs created spanned a range of skill levels, from unskilled labor to technical and professional positions, reflecting the zone’s comprehensive approach to workforce development. The momentum of investment and job creation within the LS-MFEZ accelerated further in 2021, marking a record year for the economic zone. Investment inflows surged to US$309.4 million, nearly tripling the amount attracted in the previous year. This remarkable increase brought the total accumulated investments in the zone to about US$877.4 million since its establishment. The substantial capital inflows during 2021 were indicative of the zone’s growing reputation as a viable destination for industrial and commercial activities, as well as the effectiveness of government policies and incentives designed to attract investors. Corresponding to the rise in investments, permanent employment within the LS-MFEZ reached approximately 9,360 jobs by the end of 2021. This figure represented a significant increase from previous years and highlighted the zone’s expanding capacity to absorb a larger workforce. When including construction workers engaged in ongoing development projects within the zone, total employment rose to 11,560, illustrating the dynamic nature of the LS-MFEZ as both an operational industrial hub and a site of continuous infrastructural growth. The employment opportunities generated spanned various industries, contributing to improved livelihoods and economic empowerment for many Zambians. Collectively, these developments underscored the LS-MFEZ’s role as a catalyst for industrialization, investment attraction, and job creation within Zambia’s evolving economy.

The Lusaka East Multi-Facility Economic Zone, also known as the Zambia-China Economic & Trade Cooperation Zone (ZCCZ), represents a significant collaborative initiative between Zambia and China aimed at fostering industrial development and economic diversification. Established as a strategic platform to attract foreign direct investment and stimulate economic growth, the zone serves as a hub for various manufacturing and commercial activities. Its dual nomenclature reflects both its geographical location in Lusaka’s eastern precinct and the bilateral partnership that underpins its operational framework, highlighting the importance of Sino-Zambian cooperation in advancing Zambia’s industrialization agenda. Within the Lusaka East Multi-Facility Economic Zone, several key sectors are prioritized to drive sustainable economic development, with a particular emphasis on agriculture and its related industries. The zone places considerable focus on circular agriculture, an innovative approach that promotes sustainable farming practices by recycling resources and minimizing waste, thereby enhancing environmental stewardship and long-term productivity. Alongside this, tourism agriculture is also a central component, integrating agricultural production with tourism activities to create diversified income streams and promote agro-tourism experiences. This dual focus on circular and tourism agriculture reflects a broader strategy to leverage Zambia’s rich natural resources and cultural heritage while promoting environmentally responsible agricultural practices. Agro-processing stands out as a major area of concentration within the economic zone, underscoring the commitment to adding value to raw agricultural products before they enter domestic or international markets. By facilitating the transformation of crops and livestock into processed goods such as packaged foods, beverages, and other consumables, the zone aims to enhance Zambia’s competitiveness in the global agro-industrial sector. This value addition not only increases export potential but also generates employment opportunities and stimulates the growth of ancillary industries, thereby contributing to broader economic diversification and rural development. The agro-processing facilities within the zone are equipped to handle a variety of products, ensuring that the agricultural output of the region is effectively harnessed to maximize economic benefits. In addition to agro-processing, the Lusaka East Multi-Facility Economic Zone supports the brewery industry as a significant component of its industrial activities. The inclusion of breweries within the zone aligns with Zambia’s growing demand for locally produced beverages and the government’s efforts to reduce reliance on imports. By fostering brewery operations, the zone contributes to the development of a robust beverage sector that can supply both domestic and regional markets. This industrial focus also encourages the use of local agricultural inputs such as maize and sorghum, further integrating the agricultural and manufacturing sectors. Investment in brewery infrastructure within the zone has facilitated the modernization of production techniques, improving product quality and operational efficiency. Pharmaceutical manufacturing is another prioritized sector within the Lusaka East Multi-Facility Economic Zone, reflecting the critical need to develop domestic capacity for producing essential medicines and healthcare products. The zone’s pharmaceutical activities encompass the formulation, packaging, and distribution of a range of pharmaceutical goods, aiming to reduce Zambia’s dependence on imported drugs and enhance healthcare security. By establishing pharmaceutical manufacturing facilities, the zone supports the government’s broader health sector objectives, including improving access to affordable medicines and fostering innovation in medical product development. This industrial focus also creates skilled employment opportunities and encourages the transfer of technology and expertise in pharmaceutical sciences. The production and supply of building materials constitute a key component of the zone’s industrial portfolio, addressing the growing demand for construction inputs driven by Zambia’s urbanization and infrastructure development programs. Manufacturing activities within this sector include the fabrication of cement, bricks, steel products, and other essential materials required for residential, commercial, and public works projects. By localizing the production of building materials, the Lusaka East Multi-Facility Economic Zone helps reduce costs, shorten supply chains, and enhance the reliability of material availability for Zambia’s construction industry. This strategic focus supports national development plans aimed at improving housing, transportation networks, and public amenities, thereby contributing to overall economic growth. Logistics and storage facilities receive particular emphasis within the zone to support efficient supply chain management and distribution networks critical for industrial and commercial operations. The zone is equipped with modern warehousing infrastructure designed to facilitate the storage, handling, and movement of goods both within Zambia and for export markets. Efficient logistics capabilities are essential for minimizing transit times, reducing costs, and ensuring the timely delivery of raw materials and finished products. By prioritizing logistics, the Lusaka East Multi-Facility Economic Zone enhances the operational efficiency of resident enterprises and strengthens Zambia’s position as a regional trade hub. The integration of advanced storage solutions also supports the preservation of perishable goods, particularly agricultural and pharmaceutical products, thereby maintaining product quality and market competitiveness. Designed to facilitate and promote international commerce, the Lusaka East Multi-Facility Economic Zone plays a pivotal role in enhancing trade opportunities for Zambia. Its establishment provides a conducive environment for foreign investors and multinational companies to operate within a framework that offers incentives, streamlined regulatory processes, and access to regional markets. The zone’s infrastructure and operational policies are tailored to support export-oriented production, enabling resident enterprises to tap into global value chains and expand their market reach. By fostering cross-border trade and investment, the zone contributes to Zambia’s economic integration within the Southern African Development Community (SADC) and beyond, promoting sustainable economic growth and diversification. The collaborative nature of the zone, particularly its partnership with Chinese enterprises, further facilitates technology transfer, capacity building, and the development of competitive industries aligned with international standards.

The Roma Industrial and Commercial Park was officially launched in 2011 as part of Zambia’s broader efforts to stimulate economic growth through industrialization and commercial expansion. This initiative aimed to create a dedicated space that would attract investment, foster business development, and contribute to the diversification of the country’s economy. The establishment of the park marked a significant milestone in Zambia’s industrial strategy, reflecting government priorities to enhance infrastructure and provide a conducive environment for both local and foreign investors. The launch was accompanied by strategic planning to ensure that the park could accommodate a variety of industries and commercial enterprises while supporting sustainable urban development. Upon reaching full development, the Roma Industrial and Commercial Park was projected to generate more than 4,000 permanent jobs, a figure that underscored the park’s anticipated impact on employment and economic empowerment in the region. This job creation potential was a critical component of the park’s value proposition, as it promised to provide a wide range of employment opportunities across different skill levels and sectors. The expected workforce included positions in manufacturing, administration, retail, and services, thereby contributing to reducing unemployment and improving livelihoods in the surrounding communities. The creation of these jobs was also intended to stimulate ancillary economic activities, such as supply chain services and local commerce, further amplifying the park’s role as an economic catalyst. The primary focus of the Roma Industrial and Commercial Park centered on real estate and residential developments, which distinguished it from other industrial parks that primarily emphasized manufacturing or heavy industry. This focus reflected a strategic decision to integrate commercial activities with residential infrastructure, thereby creating a mixed-use environment that could support both business operations and the needs of the workforce. The real estate component included the development of office spaces, retail outlets, and industrial facilities designed to attract a diverse range of tenants. Meanwhile, the residential developments aimed to provide quality housing options for employees and their families, fostering a live-work community that would enhance productivity and social well-being. By prioritizing real estate and residential development, the park sought to address some of the common challenges faced by industrial zones, such as inadequate housing and long commuting distances, which often hinder worker retention and satisfaction. The integrated approach also aligned with contemporary urban planning principles that emphasize sustainable development, reduced travel times, and improved quality of life. The residential areas were planned to include amenities such as schools, healthcare facilities, and recreational spaces, ensuring that the park would function not only as a place of employment but also as a vibrant community hub. This holistic development strategy aimed to attract skilled professionals and investors by offering a comprehensive environment conducive to both work and living. Since its inception, the Roma Industrial and Commercial Park has been positioned as a flagship project within Zambia’s industrial landscape, reflecting the government’s commitment to fostering economic diversification and infrastructural modernization. The park’s development has involved collaboration between public authorities and private sector stakeholders, leveraging investment incentives and regulatory support to facilitate construction and occupancy. The emphasis on real estate and residential projects within the park has also attracted developers specializing in urban housing and commercial property, further enhancing the park’s capacity to meet the evolving needs of Zambia’s growing economy. As the park continues to expand, it remains a key component of the country’s strategy to promote sustainable industrial growth and improve socio-economic outcomes for its population.

The Chambishi Multi-Facility Economic Zone (CMFEZ) was officially inaugurated in 2007 as part of Zambia’s broader strategy to stimulate industrial growth and diversify its economy beyond traditional mining activities. The establishment of the CMFEZ marked a significant milestone in the country’s efforts to create a conducive environment for both domestic and foreign investors by providing infrastructure, regulatory support, and incentives tailored to industrial development. Situated in the Copperbelt Province, an area historically known for its rich mineral deposits, the CMFEZ was designed to leverage the region’s mining heritage while expanding into complementary sectors to foster sustainable economic growth. The economic zone places a strong emphasis on several key sectors that are vital to Zambia’s industrial and economic landscape. Mining remains a central focus, reflecting the country’s status as one of Africa’s leading copper producers. Alongside mining, the CMFEZ prioritizes the assembly of engineering equipment, which supports the mining industry and other manufacturing activities by providing essential machinery and tools. Construction materials production is another critical sector within the zone, addressing the growing demand for infrastructure development both locally and regionally. Fertilizer manufacturing is also a strategic component, aimed at enhancing agricultural productivity and supporting Zambia’s agrarian economy. Agriculture itself is promoted within the zone, encompassing activities that range from crop production to agro-processing, thereby adding value to raw agricultural products. Complementing these industrial sectors, the CMFEZ includes service industries such as banking and hospitals, which provide essential financial services and healthcare infrastructure to support the workforce and the broader community within the zone. This integrated approach ensures that the economic zone functions as a self-sustaining ecosystem, fostering industrial synergy and improving the quality of life for those involved. By 2016, the Chambishi Multi-Facility Economic Zone had successfully attracted approximately US$800 million in investment, underscoring its role as a significant driver of economic activity in Zambia. This substantial capital inflow reflects the confidence of investors in the zone’s potential to deliver returns through diversified industrial operations and value-added production. The investment figure also highlights the effectiveness of the zone’s policies and infrastructure in creating an enabling environment for business growth. The influx of capital contributed to job creation, technology transfer, and the development of local supply chains, thereby enhancing the overall economic resilience of the region. The US$800 million investment was distributed among a total of 14 different enterprises operating within the CMFEZ, illustrating a diverse industrial base rather than reliance on a single dominant company. These enterprises span multiple sectors, including mining companies, manufacturers of engineering equipment, producers of construction materials, fertilizer companies, agricultural firms, and service providers such as financial institutions and healthcare facilities. This diversity of enterprises within the economic zone not only mitigates sector-specific risks but also promotes inter-industry collaboration and innovation. The presence of multiple investors and operators fosters a competitive environment that encourages efficiency and continuous improvement, further enhancing the zone’s attractiveness to future investors. The collaborative industrial ecosystem within the CMFEZ exemplifies Zambia’s strategic approach to economic diversification and industrial development.

In 2016, the Government of Zambia embarked on the development of the Chembe Multi-Facility Economic Zone (MFEZ), strategically situated in Chembe, a town within Luapula Province. This initiative formed part of Zambia’s broader economic diversification strategy aimed at attracting both domestic and foreign investment, stimulating industrial growth, and creating employment opportunities in the region. The Chembe MFEZ was designed to serve as a hub for manufacturing, processing, and logistics activities, leveraging its geographic location to facilitate trade and economic integration with neighboring countries. By establishing this economic zone, the government sought to capitalize on Luapula Province’s untapped potential, promoting regional development and contributing to the national agenda of enhancing Zambia’s industrial base and export capacity. The project involved the provision of critical infrastructure, including roads, utilities, and communication networks, to create a conducive environment for businesses to operate efficiently. This development reflected Zambia’s commitment to fostering economic zones as catalysts for growth, with the Chembe MFEZ representing a significant step towards achieving sustainable industrialization in the northern part of the country.

The Chibombo Multi-Facility Economic Zone (MFEZ), also known as the Jiangxi Multi-Facility Economic Zone, is located in Chibombo District, which lies within the Central Province of Zambia. This strategic positioning places the zone in a region that benefits from proximity to major transportation routes and access to regional markets, thereby enhancing its potential as a hub for industrial and commercial activities. The designation of this area as a Multi-Facility Economic Zone reflects Zambia’s broader economic strategy to attract foreign direct investment, stimulate industrialization, and diversify the national economy beyond its traditional reliance on mining. The alternative name, Jiangxi Multi-Facility Economic Zone, underscores the involvement of Jiangxi Province from China, highlighting the collaborative international dimension of the project and the role of Chinese investment and expertise in its development. The initial phase of the Chibombo MFEZ’s establishment was marked by a groundbreaking ceremony held in November 2018, which symbolized the formal commencement of construction and development efforts within the zone. This event was significant as it represented the tangible start of Zambia’s efforts to create a specialized economic area aimed at fostering industrial growth and attracting investors. The ceremony drew attention from government officials, investors, and stakeholders, emphasizing the importance of the MFEZ in Zambia’s economic transformation agenda. The groundbreaking also set in motion the physical infrastructure development necessary to support the zone’s intended functions, including the construction of roads, utilities, and industrial facilities designed to meet the needs of diverse manufacturing and service enterprises. Following the initial development phase, the Chibombo MFEZ made substantial progress by October 2021, when it formalized six project agreements with investors. These agreements collectively represented a significant investment value of US$160 million, reflecting both the scale and the confidence of investors in the zone’s potential. The signing of these agreements was a milestone that demonstrated the zone’s transition from planning and construction to operational readiness and active investment attraction. The projects encompassed a variety of sectors, likely including manufacturing, processing, and logistics, each contributing to the economic diversification goals of the zone. The substantial capital inflow associated with these agreements was expected to facilitate the establishment of production facilities, procurement of equipment, and other activities essential for the operationalization of the zone’s industrial base. The six projects formalized in 2021 were projected to create employment opportunities exceeding 1,000 jobs within the Chibombo MFEZ, marking a significant contribution to local and national employment generation. This anticipated job creation was critical in addressing Zambia’s unemployment challenges, particularly among youth and semi-skilled workers, by providing new avenues for income generation and skills development. The employment impact extended beyond direct jobs within the zone, as ancillary services and supply chains were expected to benefit from increased economic activity. The creation of over 1,000 jobs also aligned with the Zambian government’s objectives to leverage economic zones as catalysts for inclusive growth and poverty reduction. By fostering a conducive environment for industrial investment and employment, the Chibombo MFEZ aimed to become a model for sustainable economic development within the Central Province and the country at large.

In November 2009, the government of Zambia unveiled an ambitious plan to invest US$1.2 billion into the development of the Lumwana Multi-Facility Economic Zone (MFEZ), signaling a major commitment to industrial expansion and economic diversification within the country. This substantial financial allocation was intended to catalyze the transformation of Lumwana, a region already recognized for its rich mineral resources and mining operations, into a vibrant hub of industrial activity. The Lumwana Multi-Facility Economic Zone was established as a designated area specifically designed to foster industrial growth, attract both domestic and foreign investment, and stimulate economic development by providing a range of facilities and incentives tailored to business needs. By creating an environment conducive to manufacturing, processing, and related economic activities, the zone aimed to enhance the competitiveness of Zambia’s industrial sector on both regional and international levels. The decision to channel such a significant investment into the Lumwana MFEZ was embedded within Zambia’s broader economic strategy, which sought to accelerate national growth by promoting specialized economic zones as engines of development. These zones were envisioned as strategic tools to diversify the economy beyond its traditional reliance on copper mining, thereby reducing vulnerability to commodity price fluctuations and fostering sustainable economic resilience. The establishment of the Lumwana MFEZ aligned with this vision by targeting the development of infrastructure, including transportation networks, utilities, and industrial facilities, which would collectively lower operational costs and improve the ease of doing business in the region. This comprehensive approach was designed to attract a wide array of business activities, from mining-related industries to manufacturing and services, thereby creating a multifaceted economic ecosystem. The US$1.2 billion investment underscored the government’s dedication to transforming Lumwana into a focal point of economic activity, reflecting a recognition of the area’s latent potential and strategic importance. Lumwana’s existing mining operations, particularly in copper extraction, provided a strong foundation upon which to build additional industrial ventures, leveraging the availability of raw materials, skilled labor, and existing infrastructure. The investment plan included provisions for upgrading roads, power supply, water systems, and telecommunications, all critical components to support large-scale industrial operations. Furthermore, the government anticipated that these improvements would not only facilitate business growth but also enhance the quality of life for local communities by creating employment opportunities and stimulating ancillary economic activities such as retail and services. The initiative was also motivated by the desire to harness the economic potential inherent in the Lumwana region’s natural resource base and industrial landscape. Mining activities in Lumwana had historically been a significant contributor to Zambia’s export earnings and fiscal revenues, yet the government recognized that maximizing the value derived from these resources required broader industrial development. By establishing the MFEZ, the government aimed to encourage downstream processing and value addition within the region, thereby increasing the economic benefits retained domestically. This approach was expected to generate multiplier effects throughout the local economy, fostering the growth of small and medium-sized enterprises and enhancing skills development among the workforce. The zone’s design incorporated incentives such as tax breaks, streamlined customs procedures, and regulatory support to attract investors and facilitate efficient operations. The announcement of the Lumwana Multi-Facility Economic Zone in 2009 represented a pivotal moment in Zambia’s economic policy, marking a concerted effort to diversify the national economy and reduce dependence on a narrow range of export commodities. By focusing on targeted economic zones like Lumwana, the government sought to create sustainable employment opportunities and stimulate inclusive economic growth. The establishment of the MFEZ was anticipated to generate thousands of jobs, both directly within the zone and indirectly through supporting industries and services. This focus on job creation was particularly important in addressing Zambia’s socio-economic challenges, including high unemployment rates and regional disparities in economic development. The Lumwana initiative thus embodied a strategic vision to harness industrialization as a pathway for broad-based economic transformation and poverty reduction. Overall, the Lumwana Multi-Facility Economic Zone project reflected a comprehensive and forward-looking approach to economic development, integrating infrastructure investment, industrial policy, and regional development objectives. The government’s commitment of US$1.2 billion demonstrated a recognition of the critical role that specialized economic zones could play in driving Zambia’s economic diversification and industrial growth. By leveraging Lumwana’s existing mining strengths and enhancing its industrial capacity, the MFEZ was positioned to become a cornerstone of Zambia’s efforts to build a more resilient and diversified economy, capable of generating sustained employment and fostering inclusive prosperity.

The Sub-Saharan Gemstones Exchange Industrial Park is a Multi-Facility Economic Zone (MFEZ) located in Ndola, a prominent city within Zambia’s Copperbelt Province. This industrial park was strategically established to capitalize on the region’s rich mineral resources, particularly focusing on the gemstone sector, which holds significant economic potential for Zambia and the broader Sub-Saharan region. As a designated MFEZ, the park benefits from a range of government incentives designed to attract both domestic and foreign investors, including tax breaks, streamlined customs procedures, and enhanced infrastructure support. These advantages aim to foster a conducive environment for value addition activities such as gemstone cutting, polishing, and trading, thereby promoting industrial diversification beyond traditional copper mining. By October 2011, the infrastructure development within the Sub-Saharan Gemstones Exchange Industrial Park had reached a stage that successfully attracted investments totaling more than US$10 million. This influx of capital was indicative of growing confidence from investors in the park’s potential to serve as a hub for gemstone-related industries. The investments were directed towards constructing essential facilities, including processing plants, warehouses, and administrative offices, as well as upgrading utilities such as power supply, water, and transportation networks. These improvements not only enhanced the operational efficiency of businesses within the park but also positioned Ndola as a competitive center for gemstone commerce in the region. The initial phase of investment underscored the Zambian government’s commitment to diversifying the economy by leveraging mineral resources other than copper, thereby creating new employment opportunities and stimulating regional economic growth. The park’s location in the Copperbelt Province was particularly advantageous due to the area’s established mining infrastructure and skilled labor force familiar with mineral processing. This proximity to existing mining operations allowed for efficient sourcing of raw gemstones and facilitated collaboration between miners and industrial processors. Furthermore, the MFEZ framework provided a platform for integrating various stakeholders, including government agencies, private investors, and international partners, to coordinate efforts aimed at maximizing the value chain of gemstone production. The Sub-Saharan Gemstones Exchange Industrial Park thus represented a significant step in Zambia’s broader economic strategy to develop specialized industrial zones that harness the country’s natural resource endowment while attracting substantial foreign direct investment.

The Kalumbila Multi-Facility Economic Zone (MFEZ) is located in the North-Western Province of Zambia, a region known for its rich mineral deposits and growing industrial activity. This strategic positioning within the province aligns with the area’s broader economic development goals, particularly in the mining sector, which has been a significant driver of Zambia’s economy. The North-Western Province has experienced increased investment and industrial expansion due to its proximity to major mining operations, making it an ideal location for an economic zone designed to support and enhance local industrial capacity. In September 2022, the Kalumbila MFEZ received official approval from Zambia’s Ministry of Commerce, Trade and Industry, marking a critical milestone in the zone’s establishment. This governmental endorsement signified formal recognition of the MFEZ’s potential to contribute to regional economic growth and diversification. The approval process involved rigorous assessments to ensure that the zone met the necessary regulatory, infrastructural, and economic criteria set by the ministry. This approval paved the way for subsequent development activities and attracted investor confidence, reinforcing Zambia’s commitment to fostering industrial hubs that complement its mining sector. The initial investment projected for the development of the Kalumbila MFEZ was approximately US$100 million, reflecting the substantial financial commitment required to establish the necessary infrastructure and facilities. This capital injection was aimed at constructing industrial parks, warehouses, manufacturing units, and support services that would enable local businesses to operate efficiently within the zone. The investment also covered the development of essential utilities such as power supply, water, and transportation networks to ensure the MFEZ could sustain large-scale industrial activities. By allocating such a significant sum, stakeholders demonstrated confidence in the zone’s capacity to generate employment, stimulate local enterprise, and enhance Zambia’s industrial output. The primary objective of the Kalumbila MFEZ is to provide local vendors with an industrial base from which they can develop and expand a local supply chain. This initiative is designed to empower local entrepreneurs and businesses by offering them access to modern industrial facilities, logistical support, and a conducive business environment. By fostering local supply chain development, the MFEZ aims to reduce dependence on imported goods and services, thereby increasing the participation of Zambian companies in the value chains associated with mining and related industries. This approach aligns with national policies aimed at economic diversification and industrialization, promoting sustainable development through local content enhancement. The supply chain established within the Kalumbila MFEZ is intended to support several key mining operations in the region, including the expanding Kalumbila copper mine and the forthcoming Enterprise nickel mine. These mines represent significant investments in Zambia’s mineral sector, with First Quantum Minerals (FQM) playing a central role as a major operator. The MFEZ is strategically positioned to supply goods and services to these mining projects, facilitating efficient procurement and reducing operational costs for mining companies. Additionally, the zone caters to other businesses operating around FQM sites, creating a comprehensive industrial ecosystem that supports various aspects of mining operations, from equipment maintenance to logistics and manufacturing. This integrated supply chain is expected to enhance the competitiveness of Zambia’s mining sector by promoting local sourcing and fostering closer collaboration between mining companies and local suppliers.

In 2019, Zambia’s Multi-Facility Economic Zones (MFEZ) and Industrial Parks (IPs) attracted actualized investments totaling approximately US$1.90 billion, which was equivalent to ZMW 24.53 billion at the prevailing exchange rates. These investments played a pivotal role in stimulating economic activity within the designated zones, leading to the creation of 14,775 new jobs. The influx of capital was instrumental in enhancing industrial capacity and infrastructure development, reflecting the government’s commitment to fostering an enabling environment for manufacturing and export-oriented enterprises. The job creation figures underscored the sectors’ potential to absorb labor and contribute to poverty reduction through formal employment opportunities. Building on this momentum, the year 2020 witnessed a significant increase in actualized investments within Zambia’s MFEZ and IP sectors, with the total value rising to US$2.18 billion, equivalent to ZMW 39.92 billion. This represented a substantial growth of over 14 percent in dollar terms compared to the previous year. The expansion of investment capital was accompanied by a marked improvement in employment generation, as the number of jobs created surged to 25,795. This nearly 75 percent rise in employment reflected both the scaling up of existing enterprises and the establishment of new ventures within the economic zones. The growth in investments and job creation during 2020 was particularly notable given the global economic challenges posed by the COVID-19 pandemic, highlighting the resilience and attractiveness of Zambia’s industrial zones to investors. The upward trajectory of investment inflows continued into 2021, as actualized investments in the MFEZ and IP sectors reached US$2.74 billion, which translated to ZMW 53.95 billion. This represented a robust increase of approximately 25.7 percent in dollar terms from the previous year. The expansion of capital deployment was paralleled by a corresponding rise in employment opportunities, with 35,794 jobs created within the zones. This growth in both investment and employment was indicative of intensified industrial activity and diversification of economic outputs within the zones. The increased job creation also suggested that investments were not only capital-intensive but also labor-absorptive, contributing to Zambia’s broader developmental objectives of reducing unemployment and fostering inclusive economic growth. In contrast to the consistent growth observed in previous years, 2022 experienced a notable surge in actualized investments, which peaked at US$4.40 billion, equivalent to ZMW 74.36 billion. This represented a remarkable increase of approximately 60.3 percent in investment value compared to 2021, signaling heightened investor confidence and possibly the commencement of several large-scale projects within the economic zones. Despite this significant rise in capital inflows, the number of jobs created during the year declined to 19,528, a decrease of nearly 45.5 percent from the prior year’s employment figures. This divergence between investment value and employment generation could be attributed to several factors, including the capital-intensive nature of new projects, increased automation, or shifts in the types of industries operating within the zones. The reduction in job creation despite higher investment levels highlighted evolving dynamics within Zambia’s industrial landscape, underscoring the complex relationship between capital investment and labor market outcomes in the context of economic zones and industrial parks.

Zambia’s startup and venture capital ecosystem had traditionally experienced limited activity, particularly within the financial technology (fintech) sector. For many years, the country’s entrepreneurial landscape remained relatively quiet, with few notable fintech startups emerging or attracting significant investment. This subdued environment reflected broader challenges faced by the Zambian economy, including limited access to early-stage capital, infrastructural constraints, and a nascent digital financial services market. As a result, fintech innovation and growth lagged behind other African countries where mobile money and digital banking solutions had gained substantial traction. A pivotal moment for Zambia’s fintech ecosystem occurred in August 2021, when Union54, a homegrown fintech startup, achieved a historic breakthrough by becoming the first Zambian company to be accepted into Y Combinator’s summer batch of 2021. Y Combinator, a prestigious Silicon Valley-based startup accelerator, is renowned for nurturing high-potential technology ventures and providing them with seed funding, mentorship, and global exposure. Union54’s acceptance into this program marked a significant milestone for Zambia’s technology sector, signaling the country’s emerging presence on the international startup stage. This achievement not only elevated Union54’s profile but also served as a beacon of possibility for other Zambian entrepreneurs seeking to innovate within the fintech space. Following its successful entry into Y Combinator, Union54 attracted substantial international investor interest, culminating in a $3 million seed funding round in October 2021. This round was led by Tiger Global, a prominent American investment firm known for backing disruptive technology companies worldwide. The infusion of capital from Tiger Global represented a vote of confidence in Union54’s business model and growth potential, as well as an acknowledgment of the untapped opportunities within Zambia’s fintech market. The funding enabled Union54 to accelerate product development, expand its team, and scale its operations, thereby positioning the company to better serve the underserved segments of Zambia’s financial services sector. Building on this momentum, Union54 continued to demonstrate rapid growth and market traction, which encouraged further investment. In April 2022, the company successfully raised an additional $12 million through a seed extension round, once again led by Tiger Global. This substantial capital injection underscored both the company’s progress and the increasing recognition of Zambia’s fintech landscape as a fertile ground for innovation and investment. The seed extension round allowed Union54 to enhance its technological infrastructure, broaden its product offerings, and deepen its market reach across the region. Collectively, these developments reflected a broader trend of expanding fintech activity in Zambia, as international investors began to view the country as an emerging hub for digital financial services in Southern Africa.

Standard economic theory, supported by empirical data, suggests that the importation of second-hand clothing can yield positive economic outcomes in countries classified as least developed, such as Zambia. In contexts where income levels are low and poverty rates are high, the availability of affordable clothing options plays a crucial role in household consumption patterns. Second-hand clothing imports provide a cost-effective alternative to new garments, enabling families to allocate a smaller share of their limited income to clothing expenses. This reduction in expenditure on apparel contributes to increased disposable income, which households can redirect toward other essential needs such as food, education, and healthcare, thereby improving overall welfare. The salaula market, which refers to the trade in used clothing in Zambia, has become a significant component of the country’s informal economy. By offering a wide range of affordable clothing options, the salaula market reduces the financial burden on households, allowing families to clothe themselves adequately without incurring prohibitive costs. This affordability is particularly important in rural and low-income urban areas, where access to new clothing is often limited by both price and availability. The market’s role in enhancing clothing accessibility thus contributes to social inclusion and helps maintain dignity among economically disadvantaged populations. Beyond its direct impact on consumers, the salaula market supports a network of employment opportunities related to clothing repairs and alterations. As many second-hand garments require mending, resizing, or customization to fit local tastes and body sizes, a range of ancillary businesses has developed around these services. Tailors, seamstresses, and repair specialists find steady work by adapting imported clothing, which sustains livelihoods and contributes to the informal sector’s vibrancy. This ecosystem of repair and alteration services not only preserves the usability of garments but also fosters skills development and entrepreneurship within communities. The influx of second-hand clothing has also influenced the local tailoring industry by encouraging tailors to specialize in the production of styled garments. Faced with competition from imported apparel, some tailors have sought to differentiate their offerings by focusing on unique designs, quality craftsmanship, and culturally resonant styles. This specialization potentially enhances the diversity and quality of locally made clothing, as tailors innovate to meet niche demands and preferences that imported garments may not satisfy. In this way, the salaula market indirectly stimulates creative expression and skill refinement among clothing producers. Despite these positive aspects, the massive importation of used clothing from developed countries has had detrimental effects on Zambia’s indigenous textile industry. The overwhelming availability of cheap, imported second-hand garments has contributed to the near-total collapse of domestic textile production. Local manufacturers, unable to compete with the low prices and variety of salaula imports, have faced declining sales and eventual shutdowns. This decline has eroded the industrial base that once supported significant employment and economic activity, leading to broader challenges for Zambia’s manufacturing sector. The widespread presence of inexpensive used clothing also undermines the relevance of tailors’ specialized garment production. While some tailors have adapted by focusing on styled garments, many consumers prioritize affordability above style or quality due to constrained financial resources. As a result, the demand for locally tailored, higher-quality clothing diminishes, limiting the market for skilled tailoring services. This shift in consumer behavior reflects economic realities but poses challenges for sustaining a vibrant local tailoring industry that can compete with the low-cost salaula imports. Workers who might have been employed in textile mills or clothing factories have experienced significant disruptions due to the influx of second-hand clothing. Many have faced unemployment as domestic production facilities closed or downsized in response to shrinking demand. Others have been compelled to accept substantially lower incomes by transitioning to roles within the resale sector of the salaula market, which generally offers less stable and lower-paying employment compared to formal manufacturing jobs. This labor market adjustment underscores the complex trade-offs associated with second-hand clothing imports, as they simultaneously provide affordable apparel and informal employment while undermining formal industrial employment opportunities.

Zambia and the Democratic Republic of the Congo (DRC) collectively possess more than 70% of the world’s cobalt reserves, positioning them as critical players in the global supply of this essential mineral. In addition to cobalt, both countries are endowed with abundant deposits of copper, nickel, and manganese, minerals that are integral to the electric vehicle (EV) battery value chain. Recognizing the strategic importance of these resources, Zambia and the DRC established the Zambia-DRC Executive Battery Council, a bilateral body created to oversee the implementation of a cooperative agreement aimed at fostering collaboration across the electric vehicle battery value chain. This initiative reflects a concerted effort to harness their mineral wealth not only for export but also to develop downstream industries that add value within their borders. The governance structure of the Executive Council includes a high-level executive committee composed of key political and economic figures. This committee features President Hakainde Hichilema of Zambia and President Felix Tshisekedi of the DRC, underscoring the political commitment at the highest level. Additionally, the Deputy Secretary General of the African Economic Community for the United Nations is part of the committee, providing a multilateral dimension to the initiative. The President of the African Export-Import Bank (AFREXIM Bank) also holds a seat, representing the financial partnership crucial for mobilizing investment and facilitating economic development within the battery value chain. This multi-stakeholder composition aims to ensure coordinated policy implementation, financial support, and regional integration. A communiqué jointly issued by Presidents Hichilema and Tshisekedi emphasized the intention of Zambia and the DRC to harmonize policies that support the electric vehicle battery value chain initiative. This policy alignment is essential to create a seamless operational environment for investors and stakeholders, reduce regulatory barriers, and promote sustainable development of the battery ecosystem. The communiqué highlighted shared objectives such as boosting local beneficiation, enhancing infrastructure, and fostering technology transfer to maximize the economic benefits derived from their mineral resources. The formalization of this cooperation was marked by the signing of a Memorandum of Understanding (MOU) in Lusaka, Zambia, on 29 April 2022. This MOU set the framework for joint efforts in developing the electric vehicle battery value chain, outlining commitments to collaborate on resource management, industrial development, and market expansion. It signaled a milestone in regional cooperation, reflecting mutual recognition of the strategic importance of integrating their mineral supply chains and industrial capacities to compete effectively in the global EV market. In July 2022, Benedict Oramah, President of the African Export-Import Bank (Afreximbank), announced in Lusaka that a consortium of investors had earmarked over US$500 million for the establishment of an industrial park dedicated to adding value to copper, cobalt, and manganese mined in Zambia. This industrial park is envisioned as a hub for processing and manufacturing activities that will transform raw minerals into higher-value products, thereby increasing local employment, enhancing technological capabilities, and reducing reliance on raw mineral exports. The investment underscores the growing confidence of international financiers in Zambia’s potential to become a regional center for battery-related industries. The planned industrial park will encompass facilities designed to process cobalt, copper, and lithium sourced not only from Zambia but also from neighboring countries, creating a regional supply chain that supports the broader African electric vehicle ecosystem. Integral to this development is the establishment of a US$250 million Battery Electric Vehicle (BEV) manufacturing plant within the park. This plant aims to assemble electric vehicles locally, leveraging the proximity to raw materials and processing plants to reduce costs and improve supply chain efficiency. The integration of mineral processing with vehicle manufacturing represents a comprehensive approach to value addition and industrial diversification. Also in July 2022, during the 94th Agricultural and Commercial Show held in Lusaka, Victor Mapani, Managing Director of Zambia’s national utility company ZESCO, announced plans to deploy electric vehicle charging stations nationwide. This infrastructure rollout is a strategic component of Zambia’s efforts to accelerate the adoption of electric vehicles and support the country’s carbon emission reduction targets. By expanding the EV charging network, ZESCO aims to address one of the critical barriers to EV uptake—range anxiety—and facilitate a transition to cleaner transportation options, aligning with global trends toward decarbonization and sustainable energy. In December 2022, at the US-Africa summit held in Washington DC, Zambia, the DRC, and the United States signed an MOU to advance the electric vehicle battery value chain. This trilateral agreement marked a significant step in international cooperation, with multiple US agencies—including the United States Agency for International Development (USAID), the US Department of Commerce, and the Trade and Development Agency—exploring avenues to provide technical assistance to the Zambia-DRC EV supply chain. The involvement of these agencies reflects the strategic interest of the United States in supporting sustainable development and securing critical mineral supply chains through partnership with African nations. Complementing the technical assistance, US financial institutions such as the Export-Import Bank of the United States and the Development Finance Corporation committed to exploring financing and support mechanisms to facilitate investment in African electric vehicle value chains. These commitments aim to mobilize capital, reduce investment risks, and encourage private sector participation in the development of battery manufacturing and EV assembly facilities. The financial collaboration is designed to complement African-led initiatives, ensuring that projects have access to both technical expertise and the necessary funding to scale operations. In April 2023, Afreximbank and the United Nations Economic Commission for Africa (ECA) signed a framework agreement with Zambia and the DRC to establish special economic zones (SEZs) dedicated to electric vehicle and battery production. These SEZs are intended to provide a conducive environment for manufacturing activities through incentives such as tax breaks, streamlined regulatory processes, and infrastructure support. The creation of these zones is expected to attract both domestic and foreign investment, foster industrial clustering, and enhance competitiveness in the global EV market. Afreximbank and ECA are tasked with leading the creation of an operating company that will partner with both public and private investors to develop the SEZs. This includes collaboration with Afreximbank’s impact fund subsidiary, the Fund for Export Development in Africa, which focuses on investments that generate positive social and economic outcomes. The SEZs will concentrate on manufacturing battery precursors, batteries, and electric vehicles, thereby creating an integrated value chain that spans from raw material processing to final product assembly. This initiative represents a strategic effort to build industrial capacity and promote sustainable economic growth in both Zambia and the DRC. In October 2023, the Chinese company Better Technology Group announced that it had commenced procurement of manufacturing equipment for electric vehicle batteries, energy storage batteries, and uninterruptible power supply batteries. The equipment was scheduled for delivery to Zambia by December 2023, signaling tangible progress in the establishment of local battery manufacturing capabilities. This procurement marks a critical phase in operationalizing the EV battery manufacturing facility and reflects the growing role of Chinese investment and technology transfer in Africa’s industrial development. The manufacturing equipment will be utilized in the electric vehicle battery facility to be established within Zambia’s Chibomba-Jiangxi Multi Facility Economic Zone, located in the Central Province. Construction of the facility was expected to be completed by March 2024, positioning Zambia to become a significant producer of EV batteries in the region. The choice of the Chibomba-Jiangxi zone reflects strategic planning to leverage existing infrastructure and economic incentives designed to attract industrial investment. The Group President of Better Technology Group further revealed that the company had budgeted an investment of ZMW 2.18 billion, approximately US$100 million, in the venture through 2026. This substantial financial commitment underscores the company’s confidence in the long-term viability of Zambia’s electric vehicle battery industry and its potential to contribute to economic diversification and job creation. The investment is also indicative of the broader trend of increased foreign direct investment in Africa’s emerging green technology sectors.

In June 2023, the Government of Zambia, acting through its Electronic Government Division known as SMART Zambia, officially granted an internet services license to Starlink, the satellite internet constellation operated by SpaceX. This licensing marked a significant development in Zambia’s telecommunications sector, as it allowed Starlink to provide commercial internet services within the country. The decision to issue the license followed a series of trial projects that Starlink had conducted across various regions of Zambia, demonstrating the viability and potential benefits of its satellite-based internet technology. These trial projects were instrumental in assessing the performance, coverage, and reliability of Starlink’s services in both urban and rural areas where traditional internet infrastructure had been limited or unavailable. By leveraging low Earth orbit satellites, Starlink aimed to bridge the digital divide by delivering high-speed broadband connectivity to underserved communities throughout Zambia. The trials provided critical data on network latency, bandwidth capacity, and user experience, which were evaluated by SMART Zambia to ensure compliance with national telecommunications standards and regulatory requirements. The issuance of the internet services license to Starlink represented a strategic move by the Zambian government to enhance the country’s digital infrastructure and expand internet accessibility. It aligned with broader national objectives to promote digital inclusion, support economic growth, and improve access to information and communication technologies. The partnership with Starlink was expected to complement existing terrestrial internet services by offering an alternative means of connectivity, particularly in remote and hard-to-reach areas where laying fiber optic cables or establishing cellular networks posed significant logistical challenges. Furthermore, the licensing process underscored the Zambian government’s commitment to fostering innovation and competition within the telecommunications market. By enabling new entrants like Starlink to operate legally and commercially, Zambia aimed to stimulate investment, improve service quality, and reduce internet costs for consumers. The successful conclusion of the Starlink trials and subsequent licensing also highlighted the increasing role of satellite internet providers in Africa’s digital landscape, positioning Zambia as one of the early adopters of this emerging technology on the continent.

The Zambian government historically grappled with a persistent lack of balance-of-payment support, which significantly constrained the availability of resources necessary for capital investment. This shortfall compelled the government to resort periodically to the issuance of bonds or the expansion of the money supply as mechanisms to meet its spending and debt obligations. Such financial maneuvers were often reactive measures to bridge funding gaps, but they introduced complexities into the country’s fiscal management, as reliance on domestic borrowing and monetary expansion carried inherent risks for economic stability. Even after the resumption of balance-of-payment support, the government continued to issue bonds and expand the money supply. This sustained approach contributed to persistently high interest rates within the domestic market, which proved detrimental to local businesses by increasing borrowing costs and constraining investment opportunities. The expansion of the money supply, coupled with elevated interest rates, fueled inflationary pressures throughout the economy. Furthermore, the growing domestic debt burden intensified the government’s budgetary challenges, as an increasing share of public expenditure was allocated toward servicing domestic debt payments rather than productive investments or social services. These financial pressures severely limited the government’s capacity to fulfill essential public obligations. In particular, the government struggled to meet public payroll commitments, resulting in delayed or insufficient payment of salaries to civil servants and other public sector employees. Additionally, the constrained fiscal environment hindered the funding of critical infrastructure rehabilitation projects, which were necessary to support economic growth and improve public service delivery. The inability to adequately finance these fundamental needs underscored the broader challenges facing Zambia’s economic management during this period. In 1998, the government undertook a sharp drawdown of foreign exchange reserves to meet its foreign debt obligations. This strategic decision, while necessary to honor external liabilities, exacerbated pressure on the Zambian kwacha by reducing the country’s buffer of foreign currency reserves. The depletion of reserves contributed to depreciation pressures on the kwacha, which in turn intensified inflationary trends within the domestic economy. The weakening currency raised the cost of imported goods and services, further driving up consumer prices and complicating efforts to stabilize the economy. By the year 2000, inflation in Zambia was recorded at a high rate of 32 percent. During this same period, the kwacha depreciated by an equivalent 32 percent against the United States dollar, reflecting a direct correlation between currency depreciation and inflationary dynamics. The simultaneous occurrence of significant inflation and currency depreciation underscored the fragile macroeconomic environment, where external vulnerabilities and internal fiscal pressures combined to undermine price stability. In response to these challenges, Zambia adopted more conservative fiscal management policies by mid- to late 2001. These policy adjustments aimed to restore macroeconomic stability through prudent fiscal discipline and improved monetary control. As a result of these measures, the inflation rate by the end of 2001 fell below 20 percent, marking the best inflation performance the country had experienced in decades. This decline represented a significant achievement in curbing inflationary pressures and signaled progress toward stabilizing the economy. Despite the improvements observed in 2001, inflation in Zambia increased again to 26.7 percent in 2002, highlighting ongoing volatility in price levels. This resurgence of inflation suggested that underlying structural issues and external shocks continued to challenge the government’s ability to maintain sustained price stability. The fluctuation in inflation rates during this period reflected the complex interplay of fiscal policy, monetary conditions, and external economic factors influencing the Zambian economy. By 2007, Zambia experienced an inflation rate of 8 percent, which was notable as the first instance of single-digit inflation in thirty years. This milestone indicated a significant reduction in inflationary pressures compared to previous decades and demonstrated the effectiveness of macroeconomic stabilization efforts undertaken by the government and monetary authorities. The achievement of single-digit inflation was a critical step toward fostering a more predictable economic environment conducive to investment and growth. On January 27, 2011, the Central Statistical Office of Zambia reported that inflation had risen to 9 percent. This increase, while moderate, suggested a slight upward trend in consumer prices after a period of relative stability. The reported inflation rate reflected ongoing challenges in managing inflationary pressures, influenced by factors such as exchange rate movements, commodity prices, and domestic demand conditions. Between April 2019 and April 2020, Zambia’s annual inflation rate increased to 15.7 percent from 14 percent recorded in March 2020. This rise was primarily driven by escalating prices in food and other non-food items, which exerted upward pressure on the overall consumer price index. The increase in inflation during this period highlighted the vulnerability of the Zambian economy to supply-side shocks and fluctuations in essential commodity prices, which directly affected household consumption and cost of living. Inflation in Zambia has exhibited a tendency to peak during election years, a pattern observed in recent electoral cycles. A notable example occurred in 2016, when inflation reached a high of 17.9 percent. This cyclical inflation pattern suggests that economic and political dynamics surrounding elections, such as increased government spending, policy uncertainty, and market speculation, contribute to temporary surges in price levels. Consequently, a similar inflation peak was anticipated around the 2021 general elections, consistent with historical trends. The exchange rate of the Zambian kwacha against the United States dollar has remained relatively stable over the past two years, though it has not returned to the peak value observed in 2013, when the exchange rate approached nearly 0.2 kwacha per dollar. This relative stability in the exchange rate has provided some predictability for trade and investment, yet the inability to regain previous peak levels reflects ongoing challenges in achieving sustained currency strength amid external and domestic economic pressures. The real effective exchange rate (REER) of the kwacha, which measures the currency’s value against a weighted average of foreign currencies adjusted for inflation differentials, improved from 88.5 in 2016 to 96.4 in 2017. This improvement indicated some strengthening of the kwacha in real terms, suggesting enhanced competitiveness of Zambian exports and a relative improvement in purchasing power compared to trading partners. The REER movement reflected broader macroeconomic conditions, including inflation control and exchange rate management. In September 2018, the kwacha experienced depreciation against the United States dollar, reflecting market reactions to various economic and political developments. However, from November to December 2018, the exchange rate stabilized between 0.08 kwacha to the dollar, indicating a temporary period of currency equilibrium. Despite this short-term stabilization, further exchange rate instability remained likely due to ongoing political and economic uncertainties, which continued to exert pressure on investor confidence and currency markets. These uncertainties underscored the challenges faced by Zambia in maintaining exchange rate stability amid a complex and evolving economic landscape.

In 1980, Zambia’s economy was characterized by a gross domestic product (GDP) measured in purchasing power parity (PPP) terms of 7.806 billion US dollars, reflecting the country’s economic output adjusted for relative price levels. The GDP per capita in PPP terms stood at 1,321.44 US dollars, indicating the average economic productivity and income per person when accounting for cost of living differences. In nominal terms, which do not adjust for inflation or price level differences, the GDP was 4.246 billion US dollars, with a nominal GDP per capita of 718.80 US dollars. The real GDP growth rate for that year was a moderate 3.85%, signaling an expanding economy, while the inflation rate was relatively high at 11.73%, suggesting rising prices and cost pressures within the economy. Between 1981 and 1985, Zambia experienced a complex economic trajectory marked by divergent trends in GDP measured in PPP and nominal terms. The GDP in PPP terms increased from 9.111 billion US dollars in 1981 to 10.261 billion US dollars by 1985, indicating growth when adjusted for purchasing power. Conversely, nominal GDP declined sharply from 4.385 billion US dollars to 2.848 billion US dollars during the same period, reflecting currency depreciation, inflation, or other distortions in market prices. Inflation rates escalated dramatically, reaching a peak of 37.43% in 1985, which would have eroded purchasing power and increased economic uncertainty. Real GDP growth during this period was volatile, with negative growth rates recorded in 1982 at -2.91% and again in 1984 at -1.72%, underscoring periods of economic contraction amidst broader instability. The years from 1986 to 1989 saw a partial recovery and continued volatility in Zambia’s economic indicators. GDP in PPP terms grew steadily from 10.645 billion US dollars in 1986 to 12.539 billion US dollars in 1989, suggesting an expansion in real economic output. Nominal GDP, which had declined earlier, rebounded from 1.962 billion US dollars in 1986 to 4.365 billion US dollars by 1989, indicating some stabilization or currency adjustments. However, inflation remained a severe problem, reaching an extreme high of 113.16% in 1989, reflecting hyperinflationary pressures that would have severely impacted the cost of living and economic planning. Real GDP growth was highly unstable during this period, with a remarkable surge of 9.27% in 1988 followed by a sharp contraction of -3.66% in 1989, highlighting the economy’s susceptibility to shocks and policy challenges. In the early 1990s, from 1990 to 1994, Zambia’s GDP in PPP terms showed a slight decline, falling from 12.933 billion US dollars to 12.556 billion US dollars, which indicated stagnation or contraction in real economic activity. Nominal GDP hovered between 3.6 billion and 4 billion US dollars, reflecting persistent currency and price level issues. Inflation rates remained extraordinarily high, peaking at 158.40% in 1993, which would have devastated consumer purchasing power and complicated fiscal management. Real GDP growth was predominantly negative during this period, with a particularly severe contraction of -13.31% in 1994, signaling a deep economic crisis likely exacerbated by inflationary spirals, policy missteps, or external shocks. From 1995 through 1999, Zambia experienced a gradual improvement in its economic indicators. GDP in PPP terms increased from 13.190 billion US dollars in 1995 to 16.107 billion US dollars in 1999, reflecting recovery and growth in real economic output. Nominal GDP fluctuated between 3.4 billion and 4.3 billion US dollars, indicating some volatility in market valuations and currency stability. Inflation rates during this period decreased from the previous hyperinflationary levels but remained elevated, ranging approximately between 21% and 38%, which still posed challenges for economic stability and growth. Real GDP growth was generally positive throughout these years, except for a slight contraction of -0.39% in 1998, suggesting that the economy was beginning to stabilize and expand after years of turmoil. The year 2000 marked a continuation of Zambia’s economic recovery with a GDP in PPP terms of 17.114 billion US dollars and a nominal GDP of 3.601 billion US dollars. Real GDP growth was recorded at 3.90%, indicating moderate economic expansion. Inflation remained relatively high at 24.09%, reflecting ongoing price pressures. Unemployment was measured at 12.93%, pointing to significant labor market challenges. Government debt stood at 28.89% of GDP, suggesting a moderate level of fiscal burden relative to the size of the economy. Between 2001 and 2005, Zambia’s economy demonstrated consistent growth and gradual improvements in fiscal and labor market conditions. GDP in PPP terms rose from 18.430 billion US dollars in 2001 to 25.930 billion US dollars by 2005, indicating robust real economic expansion. Nominal GDP nearly doubled during this period, increasing from 3.870 billion to 8.329 billion US dollars, reflecting improved currency stability and economic valuation. Real GDP growth averaged between 5% and 7%, signaling sustained expansion. Inflation rates, while still high, declined from 21.36% in 2001 to 18.33% in 2005, showing progress in controlling price increases. Unemployment rates hovered between 13% and 16%, remaining a significant social and economic issue. Government debt as a percentage of GDP decreased from 21.89% in 2001 to 13.09% in 2005, reflecting improved fiscal management and debt reduction efforts. The period from 2006 to 2010 was marked by substantial economic growth and improved macroeconomic stability in Zambia. GDP in PPP terms grew from 28.842 billion US dollars in 2006 to 43.256 billion US dollars in 2010, illustrating significant real economic expansion. Nominal GDP surged from 12.762 billion US dollars to 20.264 billion US dollars, reflecting increased economic activity and currency strength. Real GDP growth peaked at 10.30% in 2010, one of the highest growth rates recorded during this period, indicating a strong economic performance. Inflation rates dropped below 10% by 2010, reaching 8.50%, signaling improved price stability. Unemployment rates during these years fluctuated between 7.93% and 15.30%, indicating persistent labor market challenges despite economic growth. Government debt as a percentage of GDP fluctuated between 15% and 21%, reflecting manageable fiscal pressures during this period of growth. From 2011 to 2015, Zambia’s GDP in PPP terms continued to increase from 46.612 billion US dollars in 2011 to 54.473 billion US dollars in 2015. Nominal GDP peaked at 28.042 billion US dollars in 2013 before declining to 21.245 billion US dollars by 2015, indicating volatility in currency valuation or economic output. Real GDP growth slowed considerably, falling to 2.92% in 2015, reflecting a deceleration in economic momentum. Inflation rates remained mostly below 10% during the early part of this period but rose to 10.12% in 2015, suggesting renewed inflationary pressures. Unemployment increased from 7.85% in 2011 to 10.13% in 2015, highlighting worsening labor market conditions. Government debt escalated sharply from 16.42% of GDP in 2011 to 61.94% in 2015, indicating a significant increase in fiscal liabilities and potential concerns about debt sustainability. Between 2016 and 2020, Zambia’s economic indicators reflected increased volatility and fiscal stress. GDP in PPP terms grew from 55.712 billion US dollars in 2016 to 63.559 billion US dollars in 2020, showing continued real economic expansion. However, nominal GDP declined from 20.965 billion US dollars to 18.111 billion US dollars during the same period, suggesting currency depreciation or economic valuation challenges. Real GDP growth was unstable, with a contraction of -2.79% recorded in 2020, likely influenced by global economic disruptions such as the COVID-19 pandemic. Inflation spiked to 17.87% in 2016 and remained elevated at 15.73% in 2020, indicating persistent inflationary pressures. Unemployment rates remained relatively steady, fluctuating between 10% and 13%, reflecting ongoing labor market difficulties. Government debt surged dramatically from 58.32% of GDP in 2016 to an alarming 140.21% in 2020, underscoring severe fiscal pressures and potential risks to economic stability. In 2021 and 2022, International Monetary Fund (IMF) staff estimates indicated a rebound in Zambia’s economy. GDP in PPP terms rose from 69.245 billion US dollars in 2021 to 76.325 billion US dollars in 2022, while nominal GDP increased from 21.313 billion US dollars to 27.025 billion US dollars. Real GDP growth was estimated at 4.60% in 2021 and slowed to 2.91% in 2022, reflecting a recovery phase following previous contractions. Inflation rates were elevated at 22.02% in 2021 but declined to 12.53% in 2022, suggesting some easing of price pressures. Unemployment was recorded at 12.50% in 2021, though data for 2022 was unavailable. Government debt decreased substantially from 119.41% of GDP in 2021 to 71.10% in 2022, indicating efforts to improve fiscal sustainability. The 2023 IMF staff estimate showed further growth and fiscal developments in Zambia’s economy. GDP in PPP terms was projected to reach 85.951 billion US dollars, while nominal GDP was estimated at 28.406 billion US dollars. Real GDP growth was expected to rebound strongly to 5.80%, signaling renewed economic momentum. Inflation was projected at 10.95%, reflecting continued efforts to maintain price stability. Unemployment data for 2023 was not available. Government debt was projected to rise again to 115.23% of GDP, highlighting ongoing fiscal challenges and the need for prudent debt management. Throughout the historical data, inflation rates below 10% were notable and highlighted in green, occurring in years such as 2006 (9.02%), 2010 (8.50%), 2011 (8.66%), 2012 (6.58%), 2013 (6.98%), 2014 (7.81%), 2017 (6.58%), and 2018 (6.99%). These periods of relatively low inflation corresponded with phases of improved economic stability and growth. Unemployment data prior to 2000 was largely unavailable, but from 2000 onwards, recorded unemployment rates fluctuated between 7.85% and 15.90%, reflecting persistent labor market challenges and structural issues in employment. Government debt as a percentage of GDP was not reported before 2000; from that year forward, it ranged from a low of 13.09% in 2005 to a high of 140.21% in 2020, indicating significant fiscal pressures and varying degrees of debt sustainability over time. Real GDP growth rates over the decades exhibited periods of both expansion and contraction. Notable negative growth occurred in 1982 (-2.91%), 1984 (-1.72%), 1989 (-3.66%), 1994 (-13.31%), and 2020 (-2.79%), highlighting episodes of economic downturn often associated with external shocks, policy challenges, or global economic conditions. Conversely, strong growth peaks such as 10.30% in 2010 and 9.22% in 2009 demonstrated Zambia’s capacity for rapid economic expansion during favorable conditions. The overall data reflects Zambia’s economic volatility over four decades, characterized by fluctuating inflation rates, variable real GDP growth, rising government debt levels, and persistent unemployment challenges, all of which have shaped the country’s economic landscape and policy priorities.

Between 1997 and 2024, Zambia’s trade dynamics exhibited considerable fluctuations in imports, exports, trade balance, and total trade values when measured in current millions of US dollars. Over this period, total trade—the sum of imports and exports—increased markedly from US$2,902 million in 1997 to an estimated US$22,393 million in 2024. This growth culminated in an 18.00% increase in trade for the year 2024 alone, reflecting the country’s expanding engagement in international commerce. The trajectory of Zambia’s trade was shaped by various economic factors, including global commodity price shifts, domestic production capacities, and infrastructural developments, all contributing to the observed volatility and overall upward trend in trade volumes. Throughout most years between 1997 and 2024, Zambia experienced a trade deficit, wherein the value of imports exceeded that of exports. However, there were notable exceptions to this pattern, with the country recording trade surpluses in several key years. In 2006, Zambia achieved a trade surplus of US$230 million, signaling a temporary reversal of the prevailing deficit trend. This positive balance was again observed in 2009 with a surplus of US$397 million, followed by a more substantial surplus of US$1,094 million in 2010. The years 2011 and 2012 continued this pattern with surpluses of US$715 million and US$918 million, respectively. More recently, Zambia recorded significant surpluses in 2020 and 2021, amounting to US$2,212 million and US$4,212 million, respectively, before registering surpluses of US$2,604 million in 2022 and a modest US$4 million in 2024. These surpluses often correlated with periods of strong export performance, particularly in the mining sector, which is central to Zambia’s economy. The highest total trade value within the examined period was recorded in 2013, reaching US$23,777 million. This peak was closely followed by 2014, which saw total trade amounting to US$22,839 million, and the projected figure for 2024, estimated at US$22,393 million. Despite these high trade volumes, the years 2013 and 2014 were characterized by negative trade balances of -US$563 million and -US$685 million, respectively, indicating that imports outpaced exports during these peak trade years. This divergence underscores the complexity of Zambia’s trade structure, where increased trade activity does not necessarily translate into a favorable balance of payments, highlighting the country’s reliance on imported goods alongside its export earnings. Regarding import and export values, the year 2013 marked the highest recorded imports within the period, totaling US$12,170 million. This level of import activity reflected Zambia’s growing demand for capital goods, consumer products, and intermediate inputs necessary for domestic production and consumption. Conversely, the highest exports were recorded in 2022, amounting to US$11,651 million. This surge in export earnings was largely driven by the mining sector, particularly copper and other minerals, which constitute the backbone of Zambia’s export economy. The fluctuations in import and export values over the years illustrate the country’s sensitivity to external market conditions and internal economic policies. Copper has consistently been the dominant export commodity for Zambia between 2014 and 2024, underscoring its critical role in the national economy. Export earnings from copper demonstrated significant variability during this period, beginning at US$7,619 million in 2014. These earnings experienced a decline to US$4,399 million by 2016, reflecting global price fluctuations and production challenges. Subsequently, copper exports rebounded, reaching a peak of US$8,345 million in 2021, before being estimated at US$7,360 million in 2024. This pattern highlights the cyclical nature of the copper market and its profound impact on Zambia’s trade performance. The dominance of copper exports also emphasizes the country’s dependence on the mining sector, making it vulnerable to commodity price volatility. Non-traditional exports (NTEs) have shown a generally upward trend over the same period, indicating efforts to diversify Zambia’s export base beyond minerals. In 2016, NTEs were valued at US$1,749 million, reflecting the early stages of diversification initiatives. By 2023, these exports had increased to US$3,766 million, with an estimated value of US$3,179 million in 2022. The growth in NTEs encompasses agricultural products, manufactured goods, and services, contributing to a broader economic base and reducing reliance on copper and other minerals. This trend underscores the importance of policy measures aimed at promoting non-mineral sectors to enhance economic resilience. Cobalt export earnings exhibited significant variability during the period under review. In 2014, cobalt exports generated US$123.9 million, reflecting the mineral’s role as a valuable byproduct of copper mining. However, cobalt earnings declined sharply to zero in both 2022 and 2023, indicating either a cessation of exports, market disruptions, or shifts in production patterns. An estimated recovery to US$37.3 million was projected for 2024, suggesting renewed activity or improved market conditions. The fluctuations in cobalt exports highlight the challenges associated with the extraction and marketing of secondary minerals within Zambia’s mining sector. Gold export earnings also experienced fluctuations between 2014 and 2024. In 2023, gold exports were valued at US$127.5 million, while estimates for 2024 projected an increase to US$223.4 million. These variations reflect changes in gold production volumes, international gold prices, and the operational status of mining companies. Gold, although not as dominant as copper, remains an important contributor to Zambia’s export earnings and foreign exchange inflows. Nickel exports, reported in millions of Zambian Kwacha (ZMW), demonstrated substantial growth during the period. In 2021, nickel exports were valued at 1,642.4 million ZMW, rising sharply to an estimated 8,428.1 million ZMW in 2024. This increase indicates expanding production capacity, improved market access, or favorable price movements for nickel, which is an important industrial metal used in stainless steel and battery production. The growth in nickel exports contributes to the diversification of Zambia’s mineral export portfolio. Several major infrastructure projects have played a pivotal role in enhancing Zambia’s trade capacity by improving transport connectivity and reducing logistical bottlenecks. The TAZARA Railway, commissioned in 1975, stands out as a landmark project. Constructed at a cost of US$406 million, which is equivalent to approximately US$3.29 billion in 2022 US dollars, the railway links Zambia to the Tanzanian port of Dar es Salaam. This strategic transport corridor has facilitated the movement of goods to and from international markets, reducing dependence on routes through neighboring countries and supporting the export of minerals and agricultural products. The Kazungula Bridge, commissioned in May 2021, represents another significant infrastructure development aimed at boosting regional trade connectivity. Built at a cost of US$259.3 million, the bridge spans the Zambezi River at the border between Zambia and Botswana. By providing a direct road and rail link between the two countries, the Kazungula Bridge has substantially improved the efficiency of cross-border trade and transport, reducing transit times and costs. This infrastructure enhances Zambia’s integration into regional trade networks, particularly within the Southern African Development Community (SADC). Locally, the Levy Mwanawasa Bridge, also known as the Chembe Bridge, was commissioned in October 2008. Constructed at a relatively modest cost of US$1.5 million, this bridge has contributed to local infrastructure development by improving connectivity within the Copperbelt region. The bridge facilitates the movement of goods and people, supporting economic activities in one of Zambia’s most industrialized areas. The Chinsali-Nakonde road project is an ongoing infrastructure initiative designed to enhance road transport links in northeastern Zambia. Valued at 6.3 billion Zambian Kwacha, approximately US$255.76 million, the project is being funded through a grant from the African Development Bank. The 210-kilometer road is being constructed in two sections by Chinese firms China State Engineering Corporation and China Railway 7 Group. Expected to be completed by December 2026, the road will improve access to the Tanzanian border, facilitating trade flows and regional integration. This project exemplifies Zambia’s commitment to upgrading its transport infrastructure to support economic growth and trade expansion.

The Zambia International Trade Fair, held annually in Ndola at the beginning of July, serves as one of the country’s most prominent platforms for trade and commerce. Established to facilitate business interactions and showcase a wide array of products and services, the fair attracts exhibitors and visitors from across Zambia and neighboring countries. It provides an opportunity for local and international companies to display innovations, forge partnerships, and explore new markets, thereby contributing significantly to the economic vibrancy of the Copperbelt region. The event’s importance is underscored by its consistent scheduling and the diversity of industries represented, ranging from manufacturing and technology to consumer goods and services. Documentation of the fair’s activities and impact was preserved as of 31 July 2022 in the Wayback Machine, ensuring continued access to historical records and promotional materials associated with the event. Following closely in the calendar, the Agriculture and Commercial Show takes place annually in Lusaka at the beginning of August, emphasizing the critical role of agriculture in Zambia’s economy. This exhibition is dedicated to showcasing advancements in agricultural techniques, machinery, and inputs, as well as highlighting commercial activities that support the agricultural sector. It serves as a vital convergence point for farmers, agribusinesses, policymakers, and financial institutions, fostering dialogue and collaboration aimed at enhancing productivity and sustainability. The show often features demonstrations of modern farming equipment, presentations on best practices, and discussions on market access, which collectively contribute to the sector’s growth and modernization. By focusing on both agricultural innovations and commercial opportunities, the event underscores the interconnectedness of production and market dynamics within Zambia’s agricultural landscape. In addition to national-level exhibitions, the Central Province Agriculture Show is conducted annually in Mkushi, offering a more regionally focused platform to highlight agricultural developments specific to Zambia’s Central Province. This show is instrumental in promoting the unique agricultural potential and challenges of the region, which is characterized by diverse farming activities including crop production and livestock rearing. It provides local farmers and agribusiness stakeholders with opportunities to exchange knowledge, access new technologies, and engage with extension services tailored to the province’s climatic and soil conditions. The event also plays a role in stimulating local economies by attracting visitors and encouraging investment in agricultural infrastructure and value chains. Through its emphasis on regional agricultural progress, the Central Province Agriculture Show complements national efforts to strengthen Zambia’s overall agricultural sector and rural development.

The list of companies operating in Zambia includes a wide array of prominent businesses that collectively illustrate the diversity and complexity of the country’s industrial and commercial sectors. These companies span multiple industries such as mining, agriculture, manufacturing, telecommunications, banking, and retail, reflecting Zambia’s multifaceted economic landscape. Many of these firms play a crucial role in the national economy by contributing significantly to employment, export revenues, and gross domestic product (GDP). The presence of both state-owned enterprises and private sector companies highlights the mixed economic model Zambia employs, with key players ranging from large multinational corporations to locally established firms. This diversity not only underscores the economic potential of Zambia but also reveals the challenges and opportunities inherent in managing resources, infrastructure, and market dynamics within the country. Central to the operation and growth of these companies is the Lusaka Stock Exchange (LuSE), which functions as Zambia’s principal stock exchange and a vital financial institution within the national economy. Established in 1994, LuSE provides a formal marketplace for the trading of shares and securities issued by Zambian companies, thereby facilitating the mobilization of capital and enabling businesses to access investment funds necessary for expansion and development. The exchange serves as a barometer of economic health, reflecting investor confidence and the performance of various sectors represented on its platform. By offering a regulated environment for securities trading, LuSE enhances transparency, corporate governance, and investor protection, which are essential for attracting both domestic and foreign investment. Over the years, the exchange has evolved to include a range of financial instruments and has implemented technological advancements to improve trading efficiency and accessibility. The role of LuSE extends beyond mere trading activities; it acts as a catalyst for economic growth by encouraging entrepreneurship and innovation through improved access to finance. Companies listed on the exchange benefit from increased visibility and credibility, which can lead to greater business opportunities and partnerships. Moreover, LuSE contributes to the development of Zambia’s financial sector by fostering competition among financial institutions and promoting the deepening of capital markets. The exchange’s regulatory framework aligns with international standards, ensuring that listed companies adhere to stringent disclosure and reporting requirements, which in turn bolsters investor confidence. As Zambia continues to pursue economic diversification and integration into global markets, the Lusaka Stock Exchange remains a pivotal institution supporting the country’s ambitions for sustainable development and economic resilience.

In December 2021, the United Party for National Development (UPND) government of Zambia established the Public-Private Partnership (PPP) Council of Ministers as a strategic body to oversee and promote PPP initiatives across the country. This council was chaired by the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, who played a pivotal role in coordinating the government’s fiscal and infrastructural priorities. The council’s membership comprised key cabinet ministers whose portfolios were directly relevant to infrastructure and economic development, including Charles Milupi, Minister of Infrastructure; Chipoka Mulenga, Minister of Commerce, Trade, and Industry; Frank Tayali, Minister of Transport and Logistics; and Felix Mutati, Minister of Technology and Science. This composition underscored the government’s integrated approach to leveraging private sector expertise and investment in critical sectors to accelerate Zambia’s development agenda. The primary objective of the PPP Council was to establish public-private partnerships as the principal mechanism for infrastructure development in Zambia, marking a strategic shift from the traditional reliance on exclusively government-funded projects. By fostering collaborative engagements between the public sector and private entities, the council aimed to mobilize additional capital, enhance project efficiency, and improve service delivery across various infrastructure domains. This approach was intended to address the financing gaps and operational challenges that had historically constrained Zambia’s infrastructure growth, thereby facilitating sustainable economic expansion and regional integration. One of the flagship PPP projects under this new framework was the Lusaka-Ndola Dual Carriageway, a major transportation artery spanning 327 kilometers. This project was strategically significant as it formed a critical link within the Trans-African Highway network, connecting Trans-African Highway 4 (TAH 4) and Trans-African Highway 9 (TAH 9), thereby enhancing regional connectivity and trade. The concession agreement for this undertaking was valued at $650 million and structured over a 25-year period, which included three years allocated for construction and 22 years dedicated to toll operation and maintenance. The scope of the project extended beyond the dual carriageway to include 45 kilometers of the Luanshya-Fisenge-Masangano Road, further strengthening the transport infrastructure in the Copperbelt region. The project was a joint venture between the Macro-Ocean Investment Consortium and the Government of Zambia, reflecting a partnership model that combined private sector investment with public sector oversight. Construction commenced in the third quarter of 2023, specifically in August, with an expected completion date set for 2026, signaling a major milestone in Zambia’s infrastructure development. Complementing this was the Mufulira-Mokambo road project, which covered a distance of 15 kilometers and was designed to enhance trade relations with the Democratic Republic of the Congo (DRC). This project was formalized through a PPP concession agreement signed in November 2024, valued at $56.7 million. The agreement stipulated a 22-year term, comprising two years for construction and 20 years for toll operation and maintenance, and included the development of border post facilities at Mokambo to facilitate efficient cross-border movement. The partnership involved Jasworld Ports Limited and the Government of Zambia, reflecting a collaborative effort to improve transport infrastructure critical to bilateral trade. Construction was scheduled to begin in the first quarter of 2025, with completion anticipated by 2027, thereby enhancing the logistics corridor between Zambia and the DRC. Another significant project aimed at improving regional trade was the Ndola-Sakania-Mufulira road, which extended over 70 kilometers. This project focused on bolstering trade with the DRC as well as servicing local markets within Zambia. The concession agreement for this project was valued at Zambian Kwacha (ZMW) 1.64 billion, equivalent to approximately US$76.1 million, and covered the development of 61 kilometers of the road. The concession period was set at 22 years, including a three-year construction phase. Jaswin Ports Limited partnered with the Government of Zambia to execute this project, which commenced construction in 2024 and was expected to be completed by 2026. This infrastructure development was anticipated to improve transport efficiency and foster economic integration between Zambia and its neighboring DRC provinces. The Chingola-Kasumbalesa road project, spanning 35 kilometers, was another critical initiative targeting enhanced trade with the DRC, local markets, and the broader Southern African Development Community (SADC) region. This project was undertaken at a cost of ZMW 558 million, approximately US$31 million, through a partnership between Turbo Ka-Chin Investment Consortia and the Government of Zambia. Construction began in the second quarter of 2022, specifically in May, and was projected to be completed by December 2023. The project aimed to upgrade and maintain this vital corridor to facilitate smoother transit of goods and services, thereby supporting regional economic development and integration within SADC. Further efforts to improve trade infrastructure included the Katete-Chanida Border Post project, which covered a distance of 55 kilometers and targeted enhanced trade relations with Mozambique. The PPP concession agreement for this project was signed in October 2023 and was valued at ZMW 1.7 billion, equivalent to US$79.8 million, structured over a 25-year period. This included two years allocated for construction and 23 years for operation and maintenance. The project was a partnership between Lutembwe Consulting Company and the Government of Zambia. Construction was scheduled to commence in the first quarter of 2024, with an expected completion date in the fourth quarter of 2025. This initiative was designed to improve the transport corridor linking Zambia with Mozambique, thereby facilitating increased trade flows and regional connectivity. The Lumwana-Kambimba Border Post project, covering 45 kilometers, was another strategic infrastructure development aimed at connecting Lumwana in Zambia with Kolwezi in the DRC. This connection was expected to enhance trade within the SADC region by improving cross-border transport links. The concession agreement for this project was signed in the third quarter of 2023, specifically in September, with the Sandstone Consortium partnering with the Government of Zambia. Construction was scheduled to begin in the fourth quarter of 2024, although the completion date had not yet been announced. This project was anticipated to play a significant role in facilitating regional trade and economic cooperation. The Kasomeno-Kasenga-Chalwe-Kabila-Mwenda Road and Luapula River Bridge project, also known as the Kasomeno-Mwendo Toll Road (KMTR), spanned 182 kilometers and served as a vital trade link between Zambia’s Luapula province and Lubumbashi in the DRC. This corridor was a key connection to the Trans-African Highway network, particularly linking Trans-African Highway 4 (TAH 4) to the port city of Dar es Salaam in Tanzania. The project was a joint venture involving GED Africa, the Agence Congolaise des Grands Travaux (ACGT), and Zambia’s Road Development Agency (RDA), reflecting a trilateral partnership aimed at enhancing regional infrastructure. Construction began in the third quarter of 2023, in October, with the completion date yet to be announced. This project was expected to significantly improve transport efficiency and trade flows between Zambia and the DRC, as well as enhance access to East African markets. The Chingola-Solwezi-Mutanda road project covered an extensive distance of 205 kilometers and was governed by a 30-year concession agreement valued at US$250 million, signed in 2021. The project was a partnership between Bert Pave and Maintenance Limited and the Government of Zambia. Construction commenced in the first quarter of 2022, and while the completion date had not been announced, the project was poised to improve road infrastructure in the North-Western Province, facilitating access to mining areas and supporting local economic activities. The long concession period underscored the project’s scale and the commitment to sustained maintenance and operational standards. The Mutanda-Kasempa-Kaoma road project extended over 371 kilometers and was governed by a 25-year concession agreement worth US$326 million, signed in 2024. This project was managed by Barotse Highway Limited in partnership with the Government of Zambia. Construction was scheduled to begin in the first quarter of 2025, with an expected completion date in 2027. The project aimed to enhance connectivity across Western Zambia, improving access to remote areas and supporting regional trade and development initiatives. Lastly, the Solwezi-Kipushi road project encompassed 111 kilometers and involved a 25-year concession agreement valued at US$145 million, signed in 2024. The partnership between Borderway Capital Investments and the Government of Zambia was responsible for this project. Construction was planned to commence in the first quarter of 2025, with an anticipated completion date in 2027. This road was strategically important for facilitating trade and movement between Zambia and the DRC, particularly connecting mining regions and border towns, thereby contributing to regional economic integration. Collectively, these PPP projects represented a comprehensive and coordinated effort by the Zambian government to harness private sector investment and expertise in developing critical transport infrastructure. By focusing on key corridors that linked Zambia internally and with neighboring countries, particularly the DRC and Mozambique, the government sought to enhance trade, stimulate economic growth, and strengthen regional integration within the Southern African Development Community and the broader Trans-African Highway network. The establishment of the PPP Council of Ministers and the subsequent rollout of these projects underscored Zambia’s commitment to modernizing its infrastructure through innovative financing and partnership models.

Constituency Development Funds (CDFs) in Zambia represent a decentralized mechanism through which financial resources are allocated directly to local wards and constituencies with the objective of enhancing public service delivery and promoting economic development within communities. These funds are intended to empower local authorities and stakeholders by providing them with the necessary capital to implement projects that address specific developmental needs at the grassroots level. The decentralization of CDFs is designed to foster participatory governance, ensuring that development initiatives are closely aligned with the priorities and challenges faced by local populations. The effectiveness and performance of CDFs are primarily assessed through the absorption rate, a key metric that reflects the proportion of allocated and disbursed funds that are actually utilized within a given reporting period. The absorption rate serves as an indicator of the efficiency with which constituencies manage and deploy the financial resources entrusted to them. A higher absorption rate suggests that a greater share of the allocated funds has been successfully converted into tangible development outcomes, whereas a lower rate may indicate challenges such as administrative bottlenecks, delays in project implementation, or capacity constraints at the local level. In the year 2022, Zambia allocated and disbursed a total of ZMW 4.0 billion (equivalent to US$228.4 million) in Constituency Development Funds. During the reporting period spanning from 1 January 2022 to 31 December 2022, the absorption rate for these funds was recorded at 55.0%. This meant that out of the total disbursed amount, ZMW 2.2 billion was effectively utilized for development projects and public service improvements within the various constituencies. The absorption rate exceeding the 50% threshold indicated a moderate level of efficiency in fund utilization, although it also highlighted room for improvement in ensuring that a larger proportion of allocated resources could be translated into completed projects and measurable community benefits. The subsequent year, 2023, saw an increase in the total allocation for Constituency Development Funds to ZMW 4.4 billion, which was equivalent to approximately US$278.7 million. Despite this increase in allocation, only ZMW 2.7 billion was actually disbursed to constituencies within the reporting period from 1 January 2023 to 31 December 2023. Notably, the absorption rate improved to 60.0% in 2023, reflecting a higher efficiency in the utilization of disbursed funds compared to the previous year. However, the absorption value for this year was reported at ZMW 1.3 billion, indicating that while the absorption rate percentage increased, the absolute value of funds absorbed was lower than that of 2022. This discrepancy between increased allocation and lower absorption value could be attributed to partial disbursement and other operational factors affecting fund deployment. Looking ahead to the years 2024 and 2025, planned allocations for Constituency Development Funds have been projected at ZMW 4.8 billion (equivalent to US$228.1 million) for 2024 and ZMW 5.6 billion (equivalent to US$212.1 million) for 2025. These figures suggest a continued commitment by the Zambian government to increase financial support for local development initiatives. However, as of the latest available data, detailed information regarding the actual disbursement of funds, absorption rates, absorption values, and specific reporting periods for these two years remains unavailable. The absence of this data means that performance evaluation and analysis for 2024 and 2025 cannot yet be conducted, leaving the effectiveness of CDFs during these years to be assessed in future reporting cycles. To facilitate quick visual assessment of fund absorption performance, the absorption rate data is color-coded based on a predefined threshold. Absorption rates falling below 50% are marked in red, signaling underperformance and potential inefficiencies in fund utilization. Conversely, rates exceeding 50% are marked in green, indicating satisfactory absorption and more effective deployment of allocated resources. For the years 2022 and 2023, the absorption rates of 55.0% and 60.0% respectively were highlighted in green, underscoring the relatively positive performance of Constituency Development Funds during these periods. This color-coding system serves as an important tool for policymakers, stakeholders, and the public to quickly gauge the success of fund management and identify areas requiring attention or improvement.

In 2021, the total estimated value of private wealth in Zambia reached approximately US$14 billion, reflecting the accumulated assets and financial holdings of individuals and private entities within the country. When converted into the local currency, this amount was equivalent to Zambian Kwacha (ZMW) 238 billion, indicating the significant scale of private capital relative to the national economy. This valuation encompassed various forms of wealth, including real estate, investments, business ownership, and financial instruments held by the Zambian private sector. The figure highlighted the growing accumulation of private wealth amid Zambia’s broader economic landscape, which has been influenced by sectors such as mining, agriculture, and services. The estimation of private wealth serves as an important indicator of economic development and wealth distribution, providing insight into the concentration of assets among the population and the potential for private sector-driven growth within the country.