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Country Guide > Africa > Zambia | |
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Business Profile Economy The Zambian economy relies heavily on the country’s mineral wealth, particularly copper (of which Zambia is one of the world’s largest producers), and also cobalt and zinc. These account for the bulk of export earnings and provide essential raw materials for Zambia’s manufacturing industry, which accounts for over one-third of national output. Apart from raw material processing, the manufacturing sector includes vehicle assembly and oil refining as well as the production of fertilisers, textiles, construction materials and a variety of consumer products. Despite the role played by industry (unusually high by African standards), export earnings were steadily declining throughout the 1990s, mainly as a result of persistently low commodity prices. One stark illustration of the trend was the closure in 2002 of the Konkola copper mine – the country’s largest and a major source of government revenue – as being no longer viable. Agriculture produces 30 per cent of GDP and employs two-thirds of the population. Maize and cattle are the main earners; other crops (cassava, millet, sorghum and beans) are produced mainly for domestic consumption but have to be supplemented by substantial food imports. Zambia’s hydroelectric projects have allowed it self-sufficiency in energy. Economic policy changed radically during the 1990s when the Government sought the backing of the IMF in tackling Zambia’s serious financial problems. With some difficulty, many of the IMF-imposed measures were put into effect. More recently, Zambia has been a beneficiary of the Heavily Indebted Poor Countries programme to reduce the external debts of the world’s poorest countries, but still owes over US$6 billion. The IMF is still involved with Zambia, although the current Zambian administration has proved reluctant to implement some of its demands, particularly privatisation of remaining state assets. The economy has been growing (5.1 per cent in 2004) but inflation (21 per cent) and unemployment (estimated at 50 per cent) remain high. Zambia is a member of the Southern African Development Council (SADC). Its main trading partners are Japan, the UK, South Africa, the USA and China. Business Formal dress is acceptable for people at business meetings. English is widely used in business circles. Office hours: Mon-Fri 0800-1300 and 1400-1700. Commercial Information The following organisations can offer advice: Ministry of Commerce, Trade and Industry, PO Box 31968, Kwacha Annex, Cairo Road, Lusaka (tel: (1) 228 301; fax: (1) 226 673; e-mail: comtrade@zamnet.zm); or Zambia Chamber of Commerce and Industry, PO Box 1968, Lusaka (tel: (1) 223 617; fax: (1) 222 650 or 226 727); or Zambia Investment Centre, PO Box 34580, Lusaka (tel: (1) 255 241; fax: (1) 252 150; e-mail: invest@zamnet.zm; website: www.zic.org.zm). Conferences/Conventions For further information, contact the Mulungushi International Conference Centre, PO Box 33200, Lusaka (tel: (1) 290 506 or 291 229; fax: (1) 291 991; e-mail: micc@zamtel.zm). |