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The economy of Zambia, the second-largest copper producer in Africa after the Democratic Republic of the Congo, is highly dependent on copper prices, which generate three-quarters of export earnings. The country's growth has slowed in recent years, due to the fall in the price of copper, but also to the consequences of the drought on agricultural and hydroelectric production, as well as the pandemic - which brought on the first recession recorded in the country since 1989. However, the economy resumed growing in 2021 and growth continued in 2022, when the country recorded a GDP growth of 2.9%, underpinned by recovery in the mining, tourism, and manufacturing sectors. In 2023 and 2024, growth is expected to pick up to 4% and 4.2%, respectively, with private consumption being its main driver.
In 2022, general government balance closed at -1.8% of GDP in 2022, a rate which is expected to widen to -3.7% in 2023, before reaching -0.7% in 2024. That same year, the country recorded an inflation rate of 12.5%, a rate which should decrease to 9.6% in 2023 and 7.7% in 2024, on a continued downward trend toward the 6%-8% target range established by the central bank. With the easing of inflationary pressures, household incomes should benefit, boosting consumption. Underlying this projection is the positive impact of higher copper prices mainly through the exchange rate. According to the last available data, in 2021, government deficit decreased thanks to higher mining revenues and a record dividend payment from the central bank, which put general government at the rate of 101%. Still, debt remained substantial, mainly due to increased government spending - including on fuel, agricultural input subsidies, and election-related spending. Although the pandemic has significantly impacted the Zambian economy, the country has been recovering, with the government implementing measures to counteract the economic crisis resulting from it. Despite the efforts to contain the economic impact of the pandemic and ensure a quick recovery, the country's economic rebound has been slow but steady.
While Zambia achieved lower middle-income status in 2011, after a decade of strong growth, widespread and extreme rural poverty (half of Zambians still live in poverty) remains a significant problem and is compounded by a rate high birth rate and a relatively high burden of HIV/AIDS (one in eight Zambians has the virus). In 2022, the unemployment rate in the country was at 13.2% (ILO Estimate), with youth unemployment being particularly high, leading more young people in Zambia venture in businesses to counter unemployment.
|Main Indicators||2020||2021||2022 (E)||2023 (E)||2024 (E)|
|GDP (billions USD)||18.11||22.15||28.50||29.27||31.47|
|GDP (Constant Prices, Annual % Change)||-2.8||4.6||3.4||4.0||4.1|
|GDP per Capita (USD)||957||1,137||1,424||1,423||1,489|
|General Government Gross Debt (in % of GDP)||140.2||110.8||0.0||0.0||0.0|
|Inflation Rate (%)||15.7||22.0||11.0||8.9||7.7|
|Current Account (billions USD)||1.92||2.04||0.67||1.13||1.40|
|Current Account (in % of GDP)||10.6||9.2||2.4||3.8||4.5|
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
The agricultural sector is the backbone of the Zambian economy: although the sector represents only 3.4% of the country's GDP, it employs 49.6% of the workforce (World Bank). Zambia spans 75 million hectares, of which 58% is classified as medium to high potential for agriculture production; however, agriculture in Zambia remains largely underexploited, with only 15% of its potential arable land under cultivation. The sector's low contribution to GDP is attributable to poor rural infrastructure and an extreme vulnerability to drought. Zambia's agricultural sector focuses mainly on crop-farming (maize, cotton, soybeans, tobacco, groundnuts, paprika, sorghum, wheat, rice, sunflower seeds) and livestock production. The country is also one of the biggest seed exporters in Africa. In 2022, experienced significant droughts, which significantly impacted the country's crops.
The industrial sector is estimated to account for 42.5% of GDP and 10.5% of employment, mostly thanks to the mining, construction and manufacturing sub-sectors. Major industries of Zambia include copper mining and processing, construction, emerald mining, beverages, food, textiles, chemicals, fertiliser and horticulture. Growth in the manufacturing industry is largely driven by the agro-processing of food and beverages as well as the textiles and leather sub-sectors. However, dependency on copper which is the country’s main export makes Zambia vulnerable to fluctuations in the world commodities prices. While the country's industry sector, especially mining, was negatively impacted during the early stages of the pandemic, high copper prices and the reintroduction of measures allowing mining royalties to be deducted from corporate income tax have supported investment in the mining sector, which showed a significant recovery in 2022. Moreover, the development of the manufacturing sector also benefited from further tax breaks for export-oriented investments, as well as the reduction of the corporate tax rate from 35% to 30%.
Services play a major role in the Zambian economy. They represent 49.9% of GDP, and employ 39.8% of the total workforce. The tertiary sector includes a large wholesale and retail industry. Tourism is also growing and has a positive ripple effect on the transport and hotel sectors. Even though COVID-19 dampened the growth of tourism the country was experiencing, 2022 saw a slight recovery in the sector, a trend which is expected to continue in the coming years.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||49.6||10.5||39.8|
|Value Added (in % of GDP)||3.4||42.5||49.9|
|Value Added (Annual % Change)||6.9||4.2||4.7|
Source: World Bank - Latest available data.
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|Zambian Kwacha (ZMW) - Average Annual Exchange Rate For 1 MUR||0.29||0.28||0.31||0.36||0.47|
Source: World Bank - Latest available data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Zambia is open to foreign trade, which accounts for 86% of the country's GDP (World Bank, 2021). Zambia's trade policy aims to diversify its economy through privatisation programs and the expansion of its export base. The country mainly exports copper (75%), ferro-alloys (1.5%), electrical energy (1.3%), cement (1.3%), waters (1.2%). As for the country's main imports, they include petroleum oils (8.4%), mineral or chemical fertilisers (3.9%), medicaments (3.4%), copper ores (3.1%), and motor vehicles (3%).
The country is a member of COMESA and has signed Interim Economic Partnership Agreements (Interim EPAs) with the European Commission. The country became a member of the WTO in 1995. Customs duties are high, but the country has few non-tariff trade barriers. Certain products such as crude oil, medical supplies, and fertilisers are exempt from import duties. However, irregularities in the tax system and high transportation costs are real trade barriers. Zambian products are oriented towards Switzerland, China, Singapore, the Democratic Republic of Congo, and South Africa, while the country mainly imports from South Africa, China, India, the United Arab Emirates, and the Democratic Republic of Congo.
Zambia's trade balance has been experiencing a structural surplus in recent years. In 2021, exports of goods amounted to USD 11.1 billion, while imports reached USD 7 billion, resulting in a trade balance of USD 4.8 billion. As for services, exports reached USD 501 million, while imports amounted to USD 1.2 billion, amounting to a trade balance of USD 4 billion (WTO).
|Foreign Trade Indicators||2017||2018||2019||2020||2021|
|Imports of Goods (million USD)||7,983||9,466||7,180||5,323||7,096|
|Exports of Goods (million USD)||8,007||9,034||7,047||7,819||11,141|
|Imports of Services (million USD)||1,467||1,616||1,474||1,150||1,278|
|Exports of Services (million USD)||865||953||1,012||554||501|
|Imports of Goods and Services (in % of GDP)||36.6||36.9||34.2||32.5||33.9|
|Exports of Goods and Services (in % of GDP)||35.0||38.0||34.6||46.8||52.1|
|Trade Balance (million USD)||960||514||744||3,216||4,816|
|Trade Balance (Including Service) (million USD)||351||-210||222||1,510||4,015|
|Foreign Trade (in % of GDP)||71.6||74.9||68.8||79.3||86.0|
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
(% of Exports)
|Democratic Republic of Congo||9.7%|
|See More Countries||13.2%|
(% of Imports)
|United Arab Emirates||5.7%|
|Democratic Republic of Congo||4.6%|
|See More Countries||39.5%|
Source: Comtrade, Latest Available Data
|10.1 bn USD of products exported in 2021|
|Copper, unrefined; copper anodes for electrolytic...Copper, unrefined; copper anodes for electrolytic refining||55.5%|
|Copper, refined, and copper alloys, unwrought ...Copper, refined, and copper alloys, unwrought (excl. copper alloys of heading 7405)||19.5%|
|Electrical energyElectrical energy||1.3%|
|Cement, incl. cement clinkers, whether or not...Cement, incl. cement clinkers, whether or not coloured||1.3%|
|See More Products||20.9%|
|6.4 bn USD of products imported in 2021|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||8.4%|
|Mineral or chemical nitrogenous fertilisers (excl....Mineral or chemical nitrogenous fertilisers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg)||3.9%|
|Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006)||3.4%|
|Copper ores and concentratesCopper ores and concentrates||3.1%|
|Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab||3.0%|
|See More Products||78.3%|
Source: Comtrade, Latest Available Data
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Minor parties include the Alliance for Democracy and Development (ADD) and the Forum for Democracy and Development (FDD).
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The UK Foreign travel advice also provides comprehensive travelling abroad advice for all countries, including the latest information on health, safety, security, entry requirements and travel warnings.
For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.
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Latest Update: September 2023