Zambia 

Zambia landenbeleid

Zambia country policy

Ook beschikbaar in Nederlands

Policy established 14 December 2009

  • Off cover
  • DSA/DSF: Public buyers at least 35% concessional
  • Public buyers: ORIO facility
  • Private buyers: SIF facility, FX generating buyers only

Country class: 6

Restrictions

  • Special conditions, consult your accountmanager

 

Zambia country facts

Atradius DSB Economic Research
Country Report last updated :  8 August 2009
Country: ZAMBIA 

Political Situation
Relatively Stable

Head of state
President Rupiah Banda (since 2008, next elections 2011), president is chief of state and head of government

Form of government
The president appoints the cabinet from among the members of the National Assembly. Unicameral parliament.
Government of Movement for Multiparty Democracy (MMD), which holds 72 of 158 seats in the parliament

Internal Economic Situation :  Lower Copper Price Has Eroded Growth

General situation
Zambia’s economy is largely dependant on subsistence agriculture. Maize is the most important crop. The external economy is dominated by the copper mining sector. The copper price has dived due to the global slowdown, but is currently recovering. The government is aiming to diversify the economy and regards agriculture and tourism as key sectors. Economic growth is forecasted at 3%, half the rate of 2008. Policy and institutions are qualified as medium quality by the WB. Inflation is far above the inflation target of 5% due to excessive monetary expansion, high oil prices and kwacha depreciation. The exchange rate of the kwancha is highly volatile and expected to depreciate in the short-run. High HIV prevalence (17%) is a restraint to the economy.  
 
External Economic Situation
Fairly Low Foreign Debt

Main sources of foreign exchange
Copper (69%), cobalt (10%) 

Main foreign markets
EU (24%, UK 14%), Switzerland (29%), South Africa (19%), Congo (5%).

Main expenses of foreign exchange
Capital goods (44%), manufactures (25%), fuels (12%), food (8%).

  

Balance of payments 
Both trade balance and capital balance is dominated by export and investment in the mining sector.

Contact Atradius

Marijn Kastelein
Economist
Tel: + 31 (0) 20 553 2403
Email: marijn.kastelein@atradius.com