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Economy
Zambia’s Gross Domestic Product (GDP) has in-
creased by more than 5 percent per year since 2003.
Even in the midst of the global economic crisis, the
Zambian economy performed quite well, registering
its growth at 6.4 percent in 2009 and 7.6 percent in
2010. In 2014, its GDP saw a growth of 7 percent.
ECONOMIC REFORMS &
LEGISLATION
Zambia has a history of not following through with its
reforms. From 1976-1991, the country, under Kaun-
da’s leadership, adopted seven donor-supported ad-
justment programs. Each program was made up of
specific policy measures designed to initiate sustain-
able economic growth and correct economic imbal-
ances. Unfortunately, each program was eventually
abandoned and the country’s economy continued
to decline. In 1991; however, this trend came to an
end with the structural adjustment program, officially
entitled the “New Economic Recovery Programme,”
which was seen throughout the early 1990s.
A number of reforms have been passed since the
1990s, and quite recently, in early 2014, the Public
Financial Management (PFM) Reform Strategy was
launched in an effort to enhance PFM practices in
Zambia. By the years end, the National Planning and
Budgeting Policy was published and the Integrated
Financial Management and Information System was
implemented.
The Industrial Development Corporation (IDC) was
also recently created in an effort to strengthen the
governance and operation of State Owned Enter-
prises (SOEs). The IDC will act as the holding com-
pany for SOEs, and it will also become the primary
vehicle for investment in strategic sectors where the
private sector is not able to enter.
The Business Regulatory Act, 2014 provides for an
efficient, cost effective and accessible business li-
censing system. This further defines the principles
and interventions regulatory agencies must make
when regulating and licensing business activities.
PRIVATE SECTOR
DEVELOPMENT
The private sector began to develop rapidly as a re-
sult of the country’s Public Private Partnership policy,
which was implemented in 2009.
Under this new policy, the Zambian government be-
gan undertaking PPP projects across various sec-
tors of the Economy.
Potential areas for PPP projects include the follow-
ing:
• +ousing and estate
• 2ffice accommodation
• +ealth
• Education
• Social benefit scheme
• Correctional facilities
• 5oad infrastructure
• $griculture
• Energ\
As seen in the Business Regulatory Act, 2014, the
government is committed to reforming the business
environment by streamlining licensing procedures.
The government is also working towards facilitating
business registration procedures and granting incen-
tives to new businesses.
The government is particularly interested in improv-
ing the following areas of the private sector:
• Micro, Small, and Medium Enterprises (MSMEs)
• /abor marNet reforms and labor productivit\
• Trade e[pansion
LABOR FORCE & EMPLOYMENT
Work
Permits For Expatriate Labor
Employers seeking to employ expatriate staff are
required to apply for work permits from Immigration
Headquarters. Such permits are usually issued for
an initial period of one year with provisions for sub-
sequent extensions or renewals.
Companies wishing to hold an Investment License
must invest a minimum of 250,000 USD and employ
a minimum of 200 employees. Once granted the li-
cense, the company may employ up to five expatri-
ate employees.
GDP Grow
th Rate
2009
6,4%
2010
7,8%
2014
7%
