Zambia

Zambia is a landlocked country in central-east sub-Saharan Africa. It covers an area of 752,614km² and borders eight African countries – Angola, Botswana, Democratic Republic of Congo (DRC), Malawi, Mozambique, Namibia, Tanzania and Zimbabwe. It has a population of 26.2 million people and a GDP of US$30.6bn, which is expected to increase to US$32bn in 2025 and to US$33.3bn in 2026. Inflation is expected to decelerate from 9.3% in 2024 to 7.0% in 2025, driven by falling food and fuel prices. Fiscal deficits are projected to narrow to 5.2% of GDP in 2024 and 3.4% in 2025 in response to ongoing fiscal reforms. The current account balance is expected to improve from a deficit of 1.1% in 2023 to surpluses of 3.3% in 2004 and 8.4% in 2025 as copper output rises.

In 2021 the landslide victory by opposition leader Hakainde Hichilema, who replaced President Edgar Lungu, was an important milestone for democracy in Africa and reflected voter determination to reject oppressive and corrupt government. The handover of power was achieved without bloodshed. Hichilema is a successful businessman and was expected to restore respect for human rights and urgently address the country’s debt mountain. Hichilema refused to attend the 2024 inauguration of the Zimbabwean president, Emmerson Mnangagwa after the poll was declared not free and fair by SADC observers.
Key industries in Zambia are mining, tourism and agriculture. It has abundant natural resources such as minerals, wildlife, freshwater and farming land, and its economy has largely been developed through mining and agriculture. Zambia is the second-largest copper producer in Africa after the DRC, and its economy has historically been highly dependent on copper mining activities. Agriculture provides more jobs than mining, and most Zambians in rural areas are subsistence farmers.

Zambia possesses one of the world’s highest grades of copper deposits and is ranked the seventh-largest copper producer in the world. Mining contributes over 70% of the country’s foreign export earnings and contributes on average over 20% to GDP, while tourism accounts for 7% of GDP and 10% of exports.

Zambia has significant potential for tourism and has a wealth of natural tourism assets. Attractions include Victoria Falls, one of the seven natural wonders of the world and a UNESCO heritage site, as well as abundant lakes and rivers, and wildlife-protected areas in the form of 20 national parks and 34 game management areas that together occupy some 10% of the country’s land area.

In recent years, the Zambian government initiated many capital-intensive infrastructure projects to drive economic development with the help of foreign direct investment. Many large-scale deals, particularly for transport infrastructural development, were financed by the Chinese government and its related companies. The 923m Kazungula Bridge across the Zambezi river and one-stop border post facilities opened in 2021 and aims to ease the flow of trade and people between Botswana and Zambia. It also provides alternative trade routes between SADC countries, and relieves some pressure off Beitbridge between South Africa and Zimbabwe as previously the main trade route between Zambia and South Africa was through Zimbabwe.

Lake Tanganyika, the longest and second-deepest freshwater lake in the world, is the only inland waterway in Zambia that connects it with the Great Lakes region (Burundi, Tanzania, DRC and beyond to Rwanda, Uganda and Kenya) and is used for commercial shipping. Zambia’s only harbour port, Mpulungu, is at the southern tip of the lake, which is shared by four countries – Burundi, DRC, Tanzania and Zambia. The harbour is the gateway to the north by ferry and provides an important outlet for exports and imports by ship.

The formal wholesale and retail food sector is comprised of modern retailers and includes supermarkets and fast food restaurants, mainly concentrated in the major shopping malls of main cities, towns and districts. Fast food chains include Nando’s, Debonairs Pizza, Hungry Lion and KFC. The food wholesale sector is predominantly in Lusaka and dominated by companies like Massmart’s Jumbo Cash and Carry, Shoprite’s Megasave and locally-owned wholesalers such as Shriman Zambia.

Sources: Who Owns Whom sector reports, CIA Factbook, African Development Bank, World Bank, Trading Economics, African Statistical Yearbook and IMF. ?>