Zambian economy

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Zambia
World economic rank	104th (nominal) 99th (PPP)
currency	Zambian Kwacha (ZMW)
Trade organizations	WTO
Key figures
Gross domestic product (GDP)	$ 25.5 billion (nominal) (2017) $ 68.9 billion ( PPP ) (2017)
GDP per capita	$ 1,480 (nominal) (2017) $ 3,996 (PPP) (2017)
GDP by economic sector	Agriculture : 5.4% Industry : 35.6% Services : 59.0% (2017)
growth	▲ 3.6% (2017)
inflation rate	6.6% (2017)
Gini index	57.5 (2013)
Employed	6.9 million (2017)
Employed persons by economic sector	Agriculture : 54.8% Industry : 9.9% Services : 35.3% (2017)
Unemployment rate	15% (2008)
Foreign trade
export	8.11 billion (2017)
Export goods	Copper, cobalt, electricity, tobacco
Export partner	Switzerland : 44.8% China : 16.1% DR Congo : 6.2% Singapore : 6.0% (2017)
import	7.34 billion (2017)
Import goods	Machines, electronics, automobiles, petroleum
Import partner	South Africa : 28.2% DR Congo : 20.8% China : 12.9% Kuwait : 5.4% (2017)
Foreign trade balance	0.77 billion (2017)
public finances
Public debt	62.8% of GDP (2017)
Government revenue	$ 4.9 billion (2017)
Government spending	$ 7.1 billion (2017)
Budget balance	−8.4% of GDP (2017)

Economic development

From 2004 to 2006, the Zambian economy grew by around 5 percent each year. Thanks to high investments, copper exports rose from 2000 to 2006 to 550,000 t, which represents an increase of 80 percent. At the end of the fiscal year, ie on March 31, 2006, inflation was 10.3 percent. (The table opposite lists data for the 2005 financial year.)

In the Global Competitiveness Index , which measures a country's competitiveness, Zambia was ranked 118th out of 137 countries (2017-18). In 2017, the country was ranked 122nd out of 180 countries in the index for economic freedom .

General

Agriculture and mining are the main sectors of the economy in Zambia. Mining is based on the mining of copper and cobalt and their smelting in the Copperbelt , a mining area in the northwest, with large cities such as Kitwe , Ndola and Mufulira . Services and industry are still underdeveloped. They are limited to a few cities like Kafue , Lusaka , Mazabuka , Kitwe. Despite all efforts, Zambia is still one of the poorest countries in the world: in 2003, the proportion of the population with less than one US dollar per day was 64 percent ( see also: List of countries by income distribution ).

Since 1994 the Zambian economy has undergone a change from a state economy to a private sector structure. There is a stock exchange with the Lusaka Stock Exchange , the banking sector has been adapted to the changed framework conditions, albeit with considerable friction, and state shareholdings have been reduced. State companies can only be found sporadically and are privately run. Many executives trained at the National Institute of Public Administration hold management positions.

80 percent of the population is employed in agriculture, another 14 percent in mining. The copper industry is one of the main sources of gross domestic product and government revenue. Copper and cobalt account for more than 75 percent (1997) of Zambia's export income, while a further 3 percent is generated by other mining products such as gold, uranium and precious stones. Due to the great importance of copper mining, Zambia has been hit hard by falling world market prices since the 1970s. Copper production fell from 755,000 t in 1969 to 260,000 t (1999), which corresponds to a world market share of 2.1 percent and in 1999 placed Zambia in twelfth place among the copper-producing countries. Due to the rising copper prices, production could be increased again to 550,000 t in 2005. The Zambian mining industry currently employs around 37,000 people. This makes the copper industry the most important private employer. Zambia Consolidated Copper Mines , which is 85 percent owned by the state, is still the largest group in this sector.

Agriculture

Medium-sized farmer plowing

Zambia has prime farmland, but only 10 percent of it is used. For decades, agricultural investments were only made in the cultivation of maize , which effectively prevented a meaningful diversification and thus the spread of knowledge in cultivation methods as well as in the marketing and processing of other agricultural products such as coffee or cotton . Seeds, artificial fertilizers, and transport served the state only as a basis for steering effects in line with its goals.

With the fall of copper prices from the 1970s, the country fell into an economic crisis. The economic sector of the country par excellence collapsed almost completely. Import controls followed. The state made sure that the Zambian agricultural production was only marketed domestically and thus blocked agricultural production for the world market, and consequently the development of a new, broad economic structure.

From 1991 onwards, the IMF and the World Bank brought about a number of reforms, including the privatization not only of copper production, but also of suppliers to the agricultural sector. To this day, state influence in the distribution of seeds and artificial fertilizers is everywhere.

The privatization has not only borne good fruit, because the state agencies were only sold for lucrative areas and other parts simply broke away. Weak regions, especially those difficult to reach, suddenly found themselves without any care. In Bangweulubassin and into the upper Zambezi provinces which led to impoverishment. In addition, price fluctuations were principally used to the detriment of the farmers. In addition, there was high inflation and high lending rates. The government made maize production a primary role.

With the support of the World Bank, the Zambia Agribusiness and Trade Project was started in 2017, which is intended to contribute to increased productivity and better market access for Zambian agriculture. In addition, a greater diversification of Zambian agriculture is a goal of the project.

Land ownership

There are two types of land: Customary and State Land. Customary land is governed by the Land Act 1995 which makes this subject to traditional chiefs in their territories. It makes up 94 percent of the country. The remaining six percent are state-owned and mainly concern the land of the railway companies.

The customary land is divided into land without title and land in private ownership. Land without title makes up 90 percent of the Zambian territory. Privately owned land is bought from former state property and is concentrated in and around cities, in productive agricultural areas, and copper mining areas. These four percent of the Zambian territory offer a lot of conflict material, as mostly squatters without money for land purchase have to give way to the new owners. These savage settlers have no rights, but are angry when they miss out on property distribution.

Infrastructure

Gravel road traffic in the southern province

little-used district road in Zambia

traffic

The most important routes are the Zambia Railways and the paved roads via Zimbabwe to the Republic of South Africa . Almost all of Zambia's foreign trade runs through them. Zambia has been connected to the port of Dar es Salaam in Tanzania by the Tanzania-Zambia Railway (TAZARA) , the Tanzam Highway and an oil pipeline since 1976 .

The inner traffic infrastructure is divided into asphalt roads, gravel roads and paths. The roads from Sesheke to Livingstone , from there via Lusaka into the Copperbelt and to Chipata , Lundazi , Isokwe , the Tanzam Highway north from Kapiri Mposhi to Nakonde and the junction from Mpika to Mpulungu and the Chinese Road between Serenje and Nchelenge have asphalt lanes Mistake.

Most of the remaining traffic routes are precarious. Peripheral or geographically difficult districts such as Kaputa, Chama, Chiengi, Luwingu, Chilubi, Milenge, Lufwanyama, Kabompa, Chavuma, Zambesi, Lukulu, Kalabo, Senanga, Shangombo are difficult to reach. There are only a few bridges, average speeds below 20 km / h are normal there, all-wheel drive is essential. Most of these districts are poorly supplied by bicycle transports. This means that market access for the residents of these districts is in fact limited to subsistence farming .

For the other districts, at least their bomas (capitals) can be reached via gravel roads with semi- trailers and buses. This limits the economically relevant market access to the zones immediately next to the streets. Only cattle breeding in western Zambia is independent of this, since the herds can be driven without any roads.

power supply

Electricity is available in the mining and industrial centers. It is designed for 220 volts, 50 Hertz, and English plugs. Zambia can export electricity. A new line leads to Chavuma, another is to be built via Chitapa and Lundazi to Malawi . The Bangweulu Basin and the neighboring areas are not connected to the electricity grid, although there is an abundance of hydropower. Likewise, with the exception of Chavuma, all districts in the Zambezi provinces are without electricity.

Drinking water supply

There is a drinking water supply in the cities, but no longer in their periphery. Wells can only be found in the villages if the place is of agricultural importance, such as in a wide area around the Kaufeauen. In the north and west of Zambia, river water is predominantly used, which brings the corresponding infections with it.

See also : National Water Supply and Sanitation Council

Social infrastructure

Each district capital , called boma , has a hospital, high schools and secondary schools, the latter mostly with boarding schools. The quality and equipment of these facilities varies greatly. The number of other secondary schools scattered around the district is completely different.

Income bases by district

province	District	significant	important	relevant	Specialty
Luapula
	Close	Fish, cassava	Market, border trade	Palm oil	Palm oil rising, copper handling from DR Congo
	Kaputa	Fish, cassava	Border trade	Palm oil, salt	Rising palm oil, great poverty, the least developed district of Zambia
	Kawambwa	Fish, cassava	Tea (wages), corn, millet	Game meat	Refugees, fertile meadows
	Mwense	Border trade, fish, cassava, corn	Bananas, beans, sunflowers, peanuts, tea, coffee, cotton, fruit trees like mango, orange, lemon	Palm oil, cattle, dairy cows, sheep, goats, pigs, chickens, ducks, eggs	great diversification of agricultural products
	Mansa	Cassava, corn, wages	-	Millet, trade	Provincial capital
	Milenge	Fishing, cassava	Corn, millet, border trade	beekeeping	very poor, hardly developed
	Samfya	Fish, cassava	Rice, game meat	trade	most important market in the Bangweulu basin , confiscatory profit margins
	Chilubi	fish	Cassava	Beans, millet, beekeeping	Island, ungovernable area
	Luwingu	Cassava	Fish, corn	Beans, millet	very poor, very difficult to reach, hardly developed
Northern Province
	Mporokoso	Game meat, cassava	Millet, corn	Beans	Refugees, new gravel road to the Mansa - Nchelenge road , hardly developed and very poor
	Mbala	Beans, corn	Bovine	Finger millet, millet, services	good infrastructure
	Mpulungu	Border trade, fishing,	Mangoes, finger millet, wages from fish processing, port, transport, tourism	-	easily accessible, island of prosperity
	Kasama	Corn, cassava, wages	Coffee, beans, finger millet	Tourism wages	Provincial capital, important regional supply market, very good infrastructure
	Mungwi	Cassava, rice	Millet, finger millet	Fishing, cattle, pigs, sheep, goats, chickens, wages from agricultural goods	high proportion of subsistence farmers due to poor supply
	Isoka	Cattle, beans, corn	Rice, coffee	Border trade	wide meadows, poor supply, a lot of subsistence
	Nakonde	Cattle, beans, border trade	Peanuts, corn, soy	coffee	Border town
	Chinsali	Finger millet, cassava	Corn, beans	Peanuts, game meat, rice	Variation of crop rotation, Chambeshiauen suitable for sugar cane, coffee, rice, sweet potatoes, poor supply
	Mpika	Wages, game meat, corn	Finger millet, beans, peanuts	Trade, caterpillars, cassava, millet, fishing, potatoes	Valley and plateau, swamps, railway wages , branch railway to Mchinji planned
Eastern Province
	Chama	Rice, millet	Corn, tobacco, game meat, border trade	-	Valley and plateau, poor supply, poor infrastructure
	Lundazi	Corn, peanuts, cattle, beans, small-scale mining	Tobacco, cotton, border trade, game meat, rice	Millet, pigs	Valley and plateau, polygamy (Islam), almost isolated, border trade to Mzimba
	Chipata	Corn, cotton, peanuts, wages	Trade, tobacco, cattle, pigs, border trade	Goats	Provincial capital, wages from tourism
	Mambwe	Game meat, corn	Millet, wages, cotton	peanuts	Wages from tourism, poverty and income from tourism go directly to the state
	Chadiza	Corn, cattle, border trade, peanuts, cotton, border trade	Goats, sunflowers, soy, pigs	-	Cotton under contract cultivation with confiscatory taxes
	Katete	Corn, cattle, border trade, peanuts, cotton	Goats, tobacco, sunflowers, soy, pigs, chickens	-	Cotton under contract cultivation with confiscatory taxes
	Petauke	Tobacco, corn, cattle, border trade, peanuts, cotton	Goats, sunflower soy, game meat, pigs	Peanuts, precious stones	Valley and plateau, refugees
	Nyimba	Corn, wood	Game, peanuts, bananas, goats, chickens	Border trade, pigs, sugar cane, vegetables, small-scale mining, fish	-
Central Province
	Serenje	Sweet potatoes, potatoes, corn	Caterpillars, game meat, wages	Small mining, wheat, market trading	Wages from large goods
	Mkushi	Tobacco, vegetables, potatoes, corn, wheat, soy, wages	Cattle, Livingstone potatoes, coffee	African potatoes, game meat, lime wages	Valley and plateau, wages from large goods, mining possible
	Kapiri Mposhi	Charcoal, corn, trade, tobacco	-	Beekeeping, fishing, sunflowers, prostitution	-
	Kabwe	Wages, corn	Cattle, dairy farming	-	Provincial capital, wages from large goods and government
	Chibombo	Corn, vegetables, potatoes	Charcoal, wheat, dairy products, poultry, wages, firewood, fishing	Horticulture, soy	Wages from tourism, belongs to the agricultural agglomeration Mazabuka
	Mumbwa	Vegetables, corn, cotton	Game meat, wages, cattle, peanuts	Mining, tobacco	Wages from tourism, belongs to the agricultural agglomeration Mazabuka , " Granary of Zambia"
Copperbelt
	Chilli bombwe	Industrial, mining, woodworking, government, timber wages	Small-scale mining, border trade, vegetables, dairy products, poultry, corn, charcoal	prostitution	only copper mining and industry, urban exodus, peripheral subsistence
	Chingola	Wages (mining), wages (industry), wages (government), wood	Small-scale mining, border trade, vegetables, dairy products, poultry, corn, charcoal	prostitution	only copper mining and industry, urban exodus, peripheral subsistence
	Kalulushi	Industrial, mining, woodworking, government, timber wages	Small-scale mining, border trade, vegetables, dairy products, poultry, corn, charcoal	prostitution	broader industrial spectrum, urban exodus, peripheral subsistence
	Mufulira	Industrial, mining, woodworking, government, timber wages	Small-scale mining, border trade, vegetables, dairy products, poultry, corn, charcoal	prostitution	only copper mining and industry, urban exodus, peripheral subsistence
	Kitwe	Industrial, mining, woodworking, government, timber wages	Small-scale mining, border trade, vegetables, dairy products, poultry, corn, charcoal	prostitution	broader industrial spectrum, urban exodus, peripheral subsistence
	Ndola	Industrial, mining, woodworking, government, timber wages	Small-scale mining, border trade, vegetables, dairy products, poultry, corn, charcoal	prostitution	Provincial capital, broader industrial spectrum, urban exodus, peripheral subsistence
	Luanshya	Industrial, mining, woodworking, government, timber wages	Small-scale mining, border trade, vegetables, dairy products, poultry, corn, charcoal	prostitution	only copper mining and industry, urban exodus, peripheral subsistence
	Mpongwe	Vegetables, corn, cotton	Wages	Small mining, beekeeping, coffee	Coffee sorting wages
	Masaiti	Corn, sweet potatoes, charcoal	Small mining	Soy, beekeeping	strong immigration during the copper crisis
	Lufwanyama	Game, corn, sweet potatoes	Small mining, wages	-	Woodworking wages, very poor infrastructure
Northwest Province
	Solwezi	Sweet potatoes, beans	Cassava, corn, finger millet, wood	Pumpkin, game meat, mining and government wages, border trade	Provincial capital, wages from mining, refugees, urban exodus, peripheral subsistence
	Mwinilunga	Pineapple, beekeeping	Cassava, corn, millet, peanuts, rice	Border trade	Border trade in diamonds
	Chavuma	Market trade, border trade	Cassava	fishing	Suspected border trade in diamonds, refugees, oil and gas reserves
	Zambezi	Cattle, corn	Small mining, wages	-	Region on the west bank inaccessible, suspected oil and gas reserves
	Kabompo	beekeeping	Game, corn, cassava	Fishing, hardwood	Beekeeping exports, refugees, large arms stocks
	Mufumbwe	Corn	Beekeeping, game meat, cassava	-	Land mines, strongly fluctuating crop yields
	Kasempa	Corn	Beekeeping, game meat, wood	salt	poorest and most isolated district of Zambia
Western province
	Lukulu	Corn, fish	-	-	Success in fighting poverty, high layers of sand
	Calabo	Cattle, fish, cassava, rice	Millet, border trade, game meat, wood	Tourism wages	Refugees, very difficult to reach
	Mongu	Fishing, cassava, mangoes, cattle	Market and supply trade, rice, corn, roof grass	Finger millet, cashew nuts	Provincial capital, early corn harvests in the floodplains
	Kaoma	Cattle, corn, cassava, roof grass, hardwood	Game, sweet potatoes, peanuts	tobacco	-
	Senanga	Fishing, cattle	Corn, cassava, rice, wood	-	Region on the west bank hardly accessible
	Shangombo	Border trade, cattle	Fishing, corn, cassava, finger millet	-	Refugees, very difficult to reach
	Sesheke	Cattle, wood, millet, border trade	Fishing, cassava, corn	-	Easily accessible only from Livingstone, Zambesi Bridge to Namibia
Southern province
	Kazungula	Corn, cattle	Millet, finger millet, fishing, game meat, border trade	-	-
	Livingstone	Wages, border trade	Dairy farming, prostitution	Wheat, corn	Provincial capital, wages from tourism, maize from urban cultivation
	Kalomo	Corn, tobacco, soy, cattle	Chickpeas, millet, beans, peanuts, sunflowers	Wages	Agricultural wages and gem mining
	Namwala	Fishing, cattle, corn	Game meat, wages	prostitution	Tourism wages isolated because of poor infrastructure
	Itezhi Tezhi	Fishing, cattle, corn, game meat	Wages	prostitution	Wages from tourism, wages from dam, district with periodic hunger
	Choma	Corn, cattle	Tobacco, soy, sunflower, charcoal, wages from agricultural goods and tourism, handicrafts	Wild fruits, mushrooms	Large white farmers from Zimbabwe
	Mazabuka	Sugar cane, corn, cattle, dairy farming, wages from agricultural goods and sugar cane processing	Cotton, wheat, soybeans, fisheries	Wildlife breeding, poultry	Agricultural and economic center of the Kafueauen , milk supply for Lusaka
	Monze	Corn, cattle	Tobacco, soy, sunflower, wages, sweet potatoes	Mushrooms	belongs to the agglomeration of Mazabuka
	Sinazongwe	Fisheries, goats, cattle, cotton, wages	Small-scale mining, millet, soy, finger millet, fish processing, cotton processing and mining wages	Corn	Inland port, periodic hunger
	Gwembe	Fishing, cattle, cotton	Goats, handicrafts	Corn, millet	barren soils, periodic hunger
	Siavonga	Fishing, border trade, goats	Bananas, wild fruits, dam wages and tourism	Cattle, small-scale mining	periodic hunger
Lusaka
	Kafue	Corn, wages from mining, quarries, industry, dam and agricultural goods	Fishing, cattle, small-scale mining, game meat	-	Industrial center, good infrastructure
	Luangwa	Fishing, handicrafts, border trade	Game meat	Corn, millet, prostitution	cross-border economic entity with Zumbo and Kanyemba
	Chongwe	Corn, wheat, horticulture, vegetables, dairy farming, cattle, poultry, agricultural wages and tourism	prostitution	soy	Recreation area and “vegetable patch” of Lusaka
	Lusaka	Wages, trade, horticulture, vegetables, poultry, border trade, resales	Prostitution, dairy farming	-	Capital, government, tourism, trade, industry wages

Key figures

All values ​​are given in US dollars ( purchasing power parity ).

year	GDP in $ (purchasing power parity)	GDP per capita in $ (purchasing power parity)	GDP growth per year
1980	8.0 billion	1,356	3.9%
1985	10.6 billion	1,526	1.2%
1990	13.3 billion	1,655	−0.6%
1995	13.5 billion	1,461	2.9%
2000	17.6 billion	1,659	3.9%
2005	26.6 billion	2.212	7.2%
2006	29.6 billion	2,393	7.9%
2007	33.0 billion	2,587	8.4%
2008	36.2 billion	2,761	7.8%
2009	39.9 billion	2,951	9.2%
2010	44.5 billion	3,197	10.3%
2011	47.9 billion	3,342	5.6%
2012	52.6 billion	3,555	7.7%
2013	56.1 billion	3,679	5.0%
2014	59.8 billion	3,802	4.7%
2015	62.2 billion	3,836	2.9%
2016	65.3 billion	3,908	3.7%
2017	68.9 billion	3,996	3.6%

See also

• African economy

Web links

• Fifth National Development Plan 2006–2010 (PDF file; 2.00 MB)
• CIA - World Fact Book

Individual evidence

1. ↑ Gross domestic product 2016 (PPP) (PDF; 14 kB) In: The World Bank: World Development Indicators database . World Bank. February 3, 2017. Retrieved February 5, 2018.
2. ↑ [1] Retrieved January 29, 2018
3. ↑ [2] Retrieved January 29, 2018
4. ↑ [3] Retrieved January 29, 2018
5. ↑ [4] Retrieved January 29, 2018
6. ↑ [5] Retrieved January 29, 2018
7. ↑ [6] Retrieved January 29, 2018
8. ↑ [7]
9. ↑ [8] Retrieved January 29, 2018
10. ↑ [9] Retrieved January 29, 2018
11. ↑ [10] Retrieved January 29, 2018
12. ↑ At a Glance: Global Competitiveness Index 2017–2018 Rankings . In: Global Competitiveness Index 2017-2018 . ( weforum.org [accessed December 19, 2017]).
13. ↑ heritage.org
14. ^ Report for Selected Countries and Subjects. Retrieved August 22, 2018 (American English).