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Zambia

Facts About Zambia

Background: The territory of Northern Rhodesia was administered by the South Africa Company from 1891 until takeover by the UK in 1923. During the 1920s and 1930s, advances in mining spurred development and immigration. The name was changed to Zambia upon independence in 1964. In the 1980s and 1990s, declining copper prices and a prolonged drought hurt the economy. Elections in 1991 brought an end to one-party rule, but the subsequent vote in 1996 saw blatant harassment of opposition parties.
Government type: republic
Capital: Lusaka
Currency: 1 Zambian kwacha (ZK) = 100 ngwee

Geography of Zambia

Location: Southern Africa, east of Angola
Geographic coordinates: 15 00 S, 30 00 E
Area:
total: 752,614 sq km
land: 740,724 sq km
water: 11,890 sq km
Land boundaries:
total: 5,664 km
border countries: Angola 1,110 km, Democratic Republic of the Congo 1,930 km, Malawi 837 km, Mozambique 419 km, Namibia 233 km, Tanzania 338 km, Zimbabwe 797 km
Coastline: 0 km (landlocked)
Maritime claims: none (landlocked)
Climate: tropical; modified by altitude; rainy season (October to April)
Terrain: mostly high plateau with some hills and mountains
Elevation extremes:
lowest point: Zambezi river 329 m
highest point: unnamed location in Mafinga Hills 2,301 m
Natural resources: copper, cobalt, zinc, lead, coal, emeralds, gold, silver, uranium, hydropower
Land use:
arable land: 7%
permanent crops: 0%
permanent pastures: 40%
forests and woodland: 39%
other: 14% (1993 est.)
Irrigated land: 460 sq km (1993 est.)
Natural hazards: tropical storms (November to April)
Environment – current issues: air pollution and resulting acid rain in the mineral extraction and refining region; poaching seriously threatens rhinoceros and elephant populations; deforestation; soil erosion; desertification; lack of adequate water treatment presents human health risks
Environment – international agreements:
party to: Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Nuclear Test Ban, Ozone Layer Protection, Wetlands
signed, but not ratified: Climate Change-Kyoto Protocol
Geography – note: landlocked; the Zambezi forms a natural riverine boundary with Zimbabwe

People of Zambia

Zambia’s population comprises more than 70 Bantu-speaking tribes. Some tribes are small, and only two have enough people to constitute at least 10% of the population. Most Zambians are subsistence farmers. The predominant religion is a blend of traditional beliefs and Christianity.

Expatriates, mostly British (about 15,000) or South African, live mainly in Lusaka and in the Copperbelt in northern Zambia, where they are employed in mines and related activities. Zambia also has a small but economically important Asian population, most of whom are Indians. The country is 42% urban

Population: 11,261,795 (July 2005 est.)
Age structure:
0-14 years: 48% 
15-64 years: 50% 
65 years and over: 2% 
Population growth rate: 1.95% 
Birth rate: 41.9 births/1,000 population 
Death rate: 22.08 deaths/1,000 population 
Net migration rate: -0.33 migrant(s)/1,000 population 
Infant mortality rate: 92.38 deaths/1,000 live births 
Life expectancy at birth:
total population: 37.24 years
male: 37.08 years
female: 37.41 years 
Total fertility rate: 5.62 children born/woman 
Nationality:
noun: Zambian(s)
adjective: Zambian
Ethnic groups: African 98.7%, European 1.1%, other 0.2%
Religions: Christian 50%-75%, Muslim and Hindu 24%-49%, indigenous beliefs 1%
Languages: English (official), major vernaculars – Bemba, Kaonda, Lozi, Lunda, Luvale, Nyanja, Tonga, and about 70 other indigenous languages
Literacy:
definition: age 15 and over can read and write English
total population: 78.2%
male: 85.6%
female: 71.3% (1995 est.)

History of Zambia

The indigenous hunter-gatherer occupants of Zambia began to be displaced or absorbed by more advanced migrating tribes about 2,000 years ago. The major waves of Bantu-speaking immigrants began in the 15th century, with the greatest influx between the late 17th and early 19th centuries. They came primarily from the Luba and Lunda tribes of southern Zaire and northern Angola but were joined in the 19th century by Ngoni peoples from the south. By the latter part of that century, the various peoples of Zambia were largely established in the areas they currently occupy.

Except for an occasional Portuguese explorer, the area lay untouched by Europeans for centuries. After the mid-19th century, it was penetrated by Western explorers, missionaries, and traders. David Livingstone, in 1855, was the first European to see the magnificent waterfalls on the Zambezi River. He named the falls after Queen Victoria, and the Zambian town near the falls is named after him.

In 1888, Cecil Rhodes, spearheading British commercial and political interests in Central Africa, obtained a mineral rights concession from local chiefs. In the same year, Northern and Southern Rhodesia (now Zambia and Zimbabwe, respectively) were proclaimed a British sphere of influence. Southern Rhodesia was annexed formally and granted self-government in 1923, and the administration of Northern Rhodesia was transferred to the British colonial office in 1924 as a protectorate.

In 1953, both Rhodesias were joined with Nyasaland (now Malawi) to form the Federation of Rhodesia and Nyasaland. Northern Rhodesia was the center of much of the turmoil and crisis that characterized the federation in its last years. At the core of the controversy were insistent African demands for greater participation in government and European fears of losing political control.

A two-stage election held in October and December 1962 resulted in an African majority in the legislative council and an uneasy coalition between the two African nationalist parties. The council passed resolutions calling for Northern Rhodesia’s secession from the federation and demanding full internal self-government under a new constitution and a new national assembly based on a broader, more democratic franchise. On December 31, 1963, the federation was dissolved, and Northern Rhodesia became the Republic of Zambia on October 24, 1964.

At independence, despite its considerable mineral wealth, Zambia faced major challenges. Domestically, there were few trained and educated Zambians capable of running the government, and the economy was largely dependent on foreign expertise. Abroad, three of its neighbors–Southern Rhodesia and the Portuguese colonies of Mozambique and Angola–remained under white-dominated rule. Rhodesia’s white-ruled government unilaterally declared independence in 1965. In addition, Zambia shared a border with South African-controlled South-West Africa (now Namibia). Zambia’s sympathies lay with forces opposing colonial or white-dominated rule, particularly in Southern Rhodesia. During the next decade, it actively supported movements such as the Union for the Total Liberation of Angola (UNITA), the Zimbabwe African People’s Union (ZAPU), the African National Congress of South Africa (ANC), and the South-West Africa People’s Organization (SWAPO).

Conflicts with Rhodesia resulted in the closing of Zambia’s borders with that country and severe problems with international transport and power supply. However, the Kariba hydroelectric station on the Zambezi River provided sufficient capacity to satisfy the country’s requirements for electricity. A railroad to the Tanzanian port of Dar Es Salaam, built with Chinese assistance, reduced Zambian dependence on railroad lines south to South Africa and west through an increasingly troubled Angola.

By the late 1970s, Mozambique and Angola had attained independence from Portugal. Zimbabwe achieved independence in accordance with the 1979 Lancaster House agreement, but Zambia’s problems were not solved. Civil war in the former Portuguese colonies generated refugees and caused continuing transportation problems. The Benguela Railroad, which extended west through Angola, was essentially closed to traffic from Zambia by the late 1970s. Zambia’s strong support for the ANC, which had its external headquarters in Lusaka, created security problems as South Africa raided ANC targets in Zambia.

In the mid-1970s, the price of copper, Zambia’s principal export, suffered a severe decline worldwide. Zambia turned to foreign and international lenders for relief, but as copper prices remained depressed, it became increasingly difficult to service its growing debt. By the mid-1990s, despite limited debt relief, Zambia’s per capita foreign debt remained among the highest in the world.

Zambia Economy

Zambia is one of Sub-Saharan Africa’s most highly urbanized countries. About one-half of the country’s 10.2 million people are concentrated in a few urban zones strung along the major transportation corridors, while rural areas are underpopulated. Unemployment and underemployment are serious. Per capita annual incomes are currently at about one-half their levels at independence, and at $273, place the country among the world’s poorer nations. Social indicators continue to decline, particularly in measurements of life expectancy at birth (about 37 years) and maternal and infant mortality (114 per 1,000 live births). The high population growth rate of 2.9% per annum makes it difficult for per capita income to increase. The country’s rate of economic growth cannot support rapid population growth or the strain which HIV/AIDS related issues (i.e., rising medical costs, decline in worker production) places on government resources.

The Chiluba government (1991-2001) came to power after democratic multiparty elections in November 1991, committed to an economic recovery program. The government was successful in some areas such as privatization of most of the parastatals, maintenance of positive real interest rates, the elimination of exchange controls and endorsement of free market principles. It remains to be seen whether the new Mwanawasa government will be more aggressive in implementing economic reform and undertaking further privatization. Telecommunications, electricity, and transport parastatals still need to be privatized before the economy can compete regionally and internationally. Furthermore, Zambia has yet to address effectively issues such as reducing the size of the public sector, which still represents 44% of total formal employment, and improving Zambia’s social sector delivery systems.

After the government privatized the giant parastatal mining company Zambian Consolidated Copper Mines (ZCCM), donors resumed balance-of-payment support. The final transfer of ZCCM’s assets occurred on March 31, 2000. Although balance-of payment payments are not the answer to Zambia’s long-term debt problems, it will in the short term provide the government some breathing room to implement further economic reforms. The GRZ has, however, spent much of its foreign exchange reserves to intervene in the exchange rate mechanism. To continue to do so, however, would jeopardize Zambia’s debt relief. Zambia qualified for HIPC debt relief in 2000, contingent upon the country meeting certain performance criteria, and this should offer a long-term solution to Zambia’s debt situation.

The Zambian economy has historically been based on the copper mining industry. Output of copper has fallen, however, to a 1990s low of 228,000 tonnes in 1998, continuing a 30-year decline in output due to lack of investment, and more recently, low copper prices and uncertainty over privatization. In 2001, the first full year of a privatized industry, Zambia recorded its first year of increased productivity since 1973. The future of the copper industry in Zambia was thrown into doubt in January 2002 by investors in Zambia’s largest copper mines, who have yet to return the privatized assets to profitability.

Lack of balance-of-payment support has meant the Zambian Government has not had resources for capital investment, and has periodically had to issue bonds or otherwise expand the money supply to try to meet its spending and debt obligations. The GRZ continued these activities even after balance-of-payment support resumed. This has helped keep interest rates at levels that are too high for local business, fueled inflation, burdened the budget with domestic debt payments, while still falling short of meeting the public payroll and other needs, such as infrastructure rehabilitation. The government was forced to draw down foreign exchange reserves sharply in 1998 to meet foreign debt obligations, putting further pressure on the kwacha and inflation. Inflation held at 32% in 2000; consequently, the kwacha lost the same value against the dollar over the same period. In mid- to late 2001, Zambia’s fiscal management became more conservative. As a result, 2001 year-end inflation was below 20%, its best result in decades.

The agriculture sector represented 20% GDP in 2000. Agriculture accounted for 85% of total employment (formal and informal) for 2000. Maize (corn) is the principal cash crop as well as the staple food. Other important crops include soybean, cotton, sugar, sunflower seeds, wheat, sorghum, millet, cassava, tobacco, and various vegetable and fruit crops. Floriculture is a growth sector, and agricultural nontraditional exports now rival the mining industry in foreign exchange receipts. Zambia has the potential for significantly increasing its agricultural output; currently, only 20% of its arable land is cultivated. In the past, the agriculture sector suffered from low producer prices, difficulties in availability and distribution of credit and inputs, and the shortage of foreign exchange.

There are, however, positive macroeconomic signs, rooted in reforms implemented in the early and mid-1990s. Zambia’s floating exchange rate and open capital markets have provided useful discipline on the government, while at the same time allowing continued diversification of Zambia’s export sector, growth in the tourist industry, and procurement of inputs for growing businesses. The copperbelt has experienced a significant revival as spin-off effects from the massive capital reinvestment are experienced.

GDP: purchasing power parity – $8.5 billion (2000 est.)
GDP – real growth rate: 1.5% (1999 est.), 4% (2000 est.)
GDP – per capita: purchasing power parity – $880 (2000 est.)
GDP – composition by sector:
agriculture: 20.6%
industry: 30.6%
services: 48.8% (1998 est.)
Population below poverty line: 86% (1993 est.)
Household income or consumption by percentage share:
lowest 10%: 1.5%
highest 10%: 31.3% (1993)
Inflation rate (consumer prices): 27.4% (1999 est.)
Labor force: 3.4 million
Labor force – by occupation: agriculture 85%, industry 6%, services 9%
Unemployment rate: 25% (1998)
Budget:
revenues: $606 million
expenditures: $547 million, including capital expenditures of $61 million (1998 est.)
Industries: copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer
Industrial production growth rate: -4% (1998)
Electricity – production: 8.16 billion kWh (1998)
Electricity – production by source:
fossil fuel: 0.49%
hydro: 99.51%
nuclear: 0%
other: 0% (1998)
Electricity – consumption: 6.419 billion kWh (1998)
Electricity – exports: 1.2 billion kWh (1998)
Electricity – imports: 30 million kWh (1998)
Agriculture – products: corn, sorghum, rice, peanuts, sunflower seed, tobacco, cotton, sugarcane, cassava (tapioca); cattle, goats, pigs, poultry, beef, pork, poultry, milk, eggs, hides; coffee
Exports: $900 million (f.o.b., 1999 est.)
Exports – commodities: copper, cobalt, electricity, tobacco
Exports – partners: Japan, Saudi Arabia, India, Thailand, South Africa, United States, Malaysia (1997)
Imports: $1.15 billion (f.o.b., 1999 est.)
Imports – commodities: machinery, transportation equipment, foodstuffs, fuels, petroleum products, electricity, fertilizer
Imports – partners: South Africa 48%, Saudi Arabia, United Kingdom, Zimbabwe (1997)
Debt – external: $6.7 billion (1998 est.)
Economic aid – recipient: $1.99 billion (1995)
Currency: 1 Zambian kwacha (ZK) = 100 ngwee

Map of Zambia