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Economy
extensive forestry resources, and a unique and var-
ied national heritage—all found in a favorable sub-
tropical climate. The total land surface area is vast
(752,000 square km), and the physical landscape
is pristine, characterized by fascinating and varied
landforms and soil types. The total land suitable for
agriculture is estimated to be about 58 percent of
Zambia’s total surface area, and only an estimated
14 percent of this land is currently utilized.
Regarding wildlife, the country is home to 19 Na-
tional Parks and 23 Game Management Areas that
provide a lovely and unspoiled habitat for a variety
of animal species. There are around 733 species of
birds, 150 species of reptiles, 404 species of fish,
and 224 species of mammals roaming the land at
the moment. Of these wildlife species, 25 species of
mammals, 36 species of birds, and 4 species of rep-
tiles have international significance and are, there-
fore, protected. In fact, the protected areas occupy
about 40 percent of the country’s land surface area.
Zambia has the potential to become a formidable
leader in the region. It is located in the heart of the
Common Market for Eastern and Southern Africa
(COMESA) and the Southern Africa Development
Community (SADC), and it possesses 35-40 percent
of the SADC’s water resources. The abundance of
water coming from rivers and lakes also provides
the country with the potential to develop hydropower
facilities that cater to the ever-increasing need for
energy in both the country and the region as a whole.
Economic Performance
Having successfully become a market-oriented
economy, the country’s focus has shifted to attract-
ing domestic and foreign investment so that it may
better exploit available opportunities, expand the
economy, and create more jobs.
OVERVIEW
In recent years, the Zambian economy has been
quite strong, which is largely a result of the various
reforms having been implemented since the 1990s.
When the country’s political system changed from
a one-party system to a plural system in 1991, the
country embarked on a social and economic journey
that transformed Zambia from a state dominated,
centralized system to an open economy with the role
of the state significantly reduced.
The reforms of the 1990s included the following:
• Abolition of foreign exchange controls.
• Deregulation of interest and foreign exchange
• Removal of price controls and consumer subsi-
dies
• Reform of land tenure
• Reduction of trade tariffs and embargos to open
up domestic markets
• Privatization of many state-owned enterprises
• Strengthening of the financial sector.
• Statutory protection of investments and the re-
patriation of up to 100 percent of profit and divi-
dends without restriction.
The primary goal of the reforms of the 1990s was to
create an economic environment that would enable
the private sector to thrive and become the engine
to promote investment, growth, employment, and a
reduction in poverty.
Zambia is endowed with rich and abundant natural
resources. These resources include minerals, such
as base metals (copper, zinc, and lead), precious
metals (emeralds, amethyst, aquamarine, garnets,
and citrines), industrial minerals (iron), and energy
producing minerals (coal). Other resources that
Zambia has in abundance include land and water
resources (both ground and surface water), wildlife,
Credit: The Inzy Company
The red bricks make Lusaka’s State House stand out
from other presidential palaces
