World Report

Zambia has moved from a one-party state to one of the most liberalised and open economies in the region. The vision of its president is a better life for all Zambians

ZAMBIA celebrates the 40th anniversary of its independence tomorrow with a mixture of pride in the significant economic and social progress it has made and optimism about meeting the major challenges it still faces as a nation.

Situated at the centre of the Southern African region, Zambia is a stable, democratic country that has enjoyed four decades of internal peace since it became an independent republic, taking its name from the Zambezi River. For many years under one-party rule with a state-managed economy, Zambia has moved on to a multi-party system and free market principles.

Over the last ten years, decline has gradually been replaced with growth. Copper mining, on which the economy heavily depends, has been privatised and is reviving with the return of the international mining companies. The New Deal government – now approaching its third year in power – is making determined efforts to improve living conditions, fight corruption and secure the support of international donors and investors.

Levy Mwanawasa
President of Zambia

‘We want companies to come here to do business and to stay’

“We have made great strides during the past 40 years,” says President Levy Mwanawasa, Zambia’s third president since independence. “We have consolidated our democracy and we continue to be an important member of the international community. I am certain that with their support we will overcome our difficulties.”

Chief among those difficulties are the twin scourges of poverty and HIV/AIDS. In order to overcome them, Zambia needs outside help and investment, and to secure a sustainable high growth economy.

Diversification is a chief element of the government’s Transitional National Development Plan, which highlights four sectors with the potential to promote growth, create employment and bring in revenue: agriculture, manufacturing, mining and tourism. Of these, agriculture is regarded as the most important future pillar of the economy, both for its export potential and to provide food security.

The engine of growth is seen as the private sector, with the government limiting itself to a facilitating role. The first objective of its new Investment Bill is to attract investors and the second to reduce the cost of doing business. Investment in partnership with Zambian businesses is particularly being encouraged.

President Mwanawasa emphasises that Zambia is looking for long-term rather than short-term commitment. “We are trying to show that Zambia is a country worth investing in and can offer a good return on investors’ money, but we want them to come to this country to do business and to stay, not just to make a quick profit and then leave,” he says.

Zambia is at a critical point where the economy is ready for the growth. There is a fresh political will in the administration to progress and invest in developments that benefit the whole country and not just a select few.
President Mwanawasa believes his vision for a better Zambia is on course and bearing fruit, but he acknowledges there is still much to be done. He says: “We will only be in a position to congratulate ourselves once the man in the village has enough clothing and food and is able to send his children to school for a decent education and has access to good health facilities. We have no time for complacency.”