Quick facts

Economy  

Presently, Zambia averages between $7 billion and $8 billion of exports annually. About 68% of Zambians live below the recognized national poverty line, with rural poverty rates standing at about 78% and urban rates at about 53%. Unemployment and underemployment in urban areas are serious problems. Most rural Zambians are subsistence farmers.

Zambia ranked 117th out of 128 countries on the 2007 Global Competitiveness Index, which looks at factors that affect economic growth. Social indicators continue to decline, particularly in measurements of life expectancy at birth (about 40.9 years) and maternal mortality (830 per 100,000 pregnancies). The country's rate of economic growth cannot support rapid population growth or the strain which HIV/AIDS-related issues place on the economy.

Zambia fell into poverty after international copper prices declined in the 1970s. The socialist regime made up for falling revenue with several abortive attempts at International Monetary Fund structural adjustment programmes (SAPs). The policy of not trading through the main supply route and line of rail to the sea – the territory known as Rhodesia (from 1965 to 1979), and now known as Zimbabwe – cost the economy greatly. After the Kaunda regime, (from 1991) successive governments began limited reforms. The economy stagnated until the late 1990s. In 2007 Zambia recorded its ninth consecutive year of economic growth. Inflation was 8.9%, down from 30% in 2000.

Zambia is still dealing with economic reform issues such as the size of the public sector, and improving Zambia's social sector delivery systems. Economic regulations and red tape are extensive, and corruption is widespread. The bureaucratic procedures surrounding the process of obtaining licences encourages the widespread use of facilitation payments. Zambia's total foreign debt exceeded $6 billion when the country qualified for Highly Indebted Poor Country Initiative (HIPC) debt relief in 2000, contingent upon meeting certain performance criteria. Initially, Zambia hoped to reach the HIPC completion point, and benefit from substantial debt forgiveness, in late 2003.

In January 2003, the Zambian government informed the International Monetary Fund and World Bank that it wished to renegotiate some of the agreed performance criteria calling for privatisation of the Zambia National Commercial Bank and the national telephone and electricity utilities. Although agreements were reached on these issues, subsequent overspending on civil service wages delayed Zambia's final HIPC debt forgiveness from late 2003 to early 2005, at the earliest. In an effort to reach HIPC completion in 2004, the government drafted an austerity budget for 2004, freezing civil service salaries and increasing a number of taxes. The tax hike and public sector wage freeze prohibited salary increases and new hires. This sparked a nationwide strike in February 2004.

The Zambian government is pursuing an economic diversification program to reduce the economy's reliance on the copper industry. This initiative seeks to exploit other components of Zambia's rich resource base by promoting agriculture, tourism, gemstone mining, and hydro-power.

I. Mining

The Zambian economy has historically been based on the copper mining industry. Output of copper had fallen to a low of 228,000 metric tons in 1998 after a 30-year decline in output due to lack of investment, low copper prices, and uncertainty over privatisation. In 2002, following privatisation of the industry, copper production rebounded to 337,000 metric tons. Improvements in the world copper market have magnified the effect of this volume increase on revenues and foreign exchange earnings.

In 2003, exports of nonmetals increased by 25% and accounted for 38% of all export earnings, previously 35%. The Zambian government has recently been granting licenses to international resource companies to prospect for minerals such as nickel, tin, copper and uranium. It is hoped that nickel will take over from copper as the country's top metallic export. In 2009, Zambia has been badly hit by the world economic crisis.

II. Agriculture

Agriculture plays a very important part in Zambia's economy providing many more jobs than the mining industry. Private local company Zambeef Products Ltd. is the leading agri-business in Zambia with over 4.000 employees, producing row crops (5.000 ha irrigated, 1.500 ha non-irrigated), cattle (Zambeef), pork (Master Pork), chicken (ZamChick), eggs (ZamChick Egg), dairy products, leather, fish, feedstock (Novatek) and edible oil (Zamanita). Zambeef operates eight abattoirs, four farms and numerous retail stores (also in co-operation with Shoprite) and a fast-food chain (ZamChick Inn) throughout the country.

Politics

Politics in Zambia take place in a framework of a presidential representative democratic republic, whereby the President of Zambia is both head of state and head of government in a pluriform multi-party system. The government exercises executive power, while legislative power is vested in both the government and parliament.

Zambia became a republic immediately upon attaining independence in October 1964. From 2011 to 2014, Zambia's president had been Michael Sata, until Sata died on 28 October 2014.

After Sata's death, Vice President Guy Scott, a Zambian of Scottish descent, became acting President of Zambia. On 24 January 2015 it was announced that Edgar Chagwa Lungu had won the election to become the 6th President in a tightly contested race. He won 48.33% of the vote, a lead of 1.66% over his closest rival, Hakainde Hichilema, with 46.67%. 9 other candidates all got less than 1% each.

I. Foreign relations

After independence in 1964 the foreign relations of Zambia were mostly focused on supporting liberation movements in other countries in Southern Africa, such as the African National Congress and SWAPO. During the Cold War Zambia was a member of the Non-Aligned Movement.

Society

Zambia's population in November 2010 was 13,092,666. Zambia is significantly ethnically diverse, with a total of 73 ethnic tribes. During the country's occupation by the British, between 1911 and 1963, the country attracted immigrants from Europe and the Indian subcontinent, the latter whom came specifically as labours. While most Europeans left after the collapse of white minority rule, a fair number of Asians still remain.

In the first recorded census---conducted on May 7, 1911---there were a total of 1,497 Europeans; 39 Asiatics and estimated 820,000 Africans. It is worth noting that Black Africans were not counted in all six census exercises---conducted in 1911, 1921, 1931, 1946, 1951 and 1956---prior to independence. By 1956, when the last census prior to independence was conducted, there were 65,277 Europeans; 5,450 Asiatics; 5450 Coloureds and an estimated 2,100,000 Africans.

In the 2010 population census, 98.2% were Black Africans and the remaining 1.8% consisting of other major racial groups.

Zambia is one of the most highly urbanised countries in sub-Saharan Africa with 44% of the population concentrated in a few urban areas along the major transport corridors, while rural areas are sparsely populated.

I. Health

The Ministry of Health (MOH) provides information pertaining to Zambian health. In 2010, public expenditure on health was 3.4% of GDP, among the lowest in southern Africa. The 2014 CIA estimated average life expectancy in Zambia was 51.83 years.

i. HIV/AIDS epidemic

Zambia faces a generalised HIV epidemic, with an estimated prevalence rate of 13.5% among adults (ages 15–49) in 2009. HIV incidence in Zambia has declined by more than 25% from 2001 to 2010, an indication that the epidemic appears to be declining.

 ii.Hospitals

In Zambia, there are hospitals throughout the country which include: Levy Mwanawasa General Hospital, Chipata General Hospital, Kitwe Central Hospital, Konkola Mine Hospital, Lubwe Mission Hospital, Maacha Hospital, Mtendere Mission Hospital, Mukinge Mission Hospital, Mwandi Mission Hospital, Nchanga North Hospital, Chikankata Salvation Army Hospital, Kalene Mission Hospital, St Francis Hospital, and St Luke's Mission Hospital.The University Teaching Hospital serves as both a hospital and a training site for future health workers. There are very few hospitals in rural or remote places in Zambia, where most communities rely on small government-run community health centres and rural health posts.

iii.Maternal and child health care

The 2010 maternal mortality rate per 100,000 births for Zambia is 470. This is compared with 602.9 in 2008 and 594.2 in 1990. The under-5 mortality rate, per 1,000 births is 145 and the neonatal mortality as a percentage of under 5's mortality is 25.In Zambia the number of midwives per 1,000 live births is 5 and the lifetime risk of death for pregnant women is 1 in 38. Female genital mutilation (FGM), while not widespread, is practiced in parts of the country. According to the 2009 Zambia Sexual Behaviour Survey, 0.7% of women have undergone FGM. According to UNICEF, 45% of children under five years are stunted.