Zambia has had a long period of political stability. With strong growth in the last decade the country has reached lower middle income status. Investor confidence has been high as evidenced in the successful issue of two Euro bonds.
Independent since 1964, Zambia has experienced five successful multiparty elections since the return to multiparty politics in 1991. The latest elections in September 2011, were peaceful, and further strengthened Zambia’s democratic credentials. Zambia has British–style parliamentary democracy. Government consists of the President and the 158-seat national assembly. Elections are held every five years and the presidency is limited to two, five year terms. There are also traditional chiefs and their headmen, who still command a great deal of respect but hold little decision-making power except when it comes to land distribution.
Zambia has had a decade of rapid economic growth. A combination of prudent macroeconomic management, market liberalization policies, and steep increase in copper prices helped drive investments in the copper industry and related infrastructure to achieve an average annual growth of about 6.4% during the last decade. Though the economy is dependent on copper, the agriculture sector is the major employer (70% of the population). However, the sector’s potential to contribute to the country’s development remains largely underexploited.
The recent rebasing of the national accounts has given a new perspective to the structure of the economy. The Central Statistical Office of Zambia has just finalized the rebasing of the national accounts to 2010 (from 1994). Preliminary estimates put the economy at 25% larger than in the old accounts. Mining, construction and trade gained more prominence as agriculture declined.
However, Zambia’s economic growth has not translated into significant poverty reduction. Sixty percent