060_G18_InFocus_Zambia

Global_18

In Focus Zambia Copper conductor Zambia’s economic development has been largely driven by copper mining. While planning to increase its copper production year on year, the government is also hoping to diversify industrial output to a void overreliance on one commodity Neil Ford Zambia has undergone a remarkable economic transformation over the past decade, but the jury is out on whether the government’s current strategy will undermine or reinforce the progress made. In common with neighbouring Tanzania, strong state control over economic activity during the 1970s and 1980s proved unsuccessful. Deregulation and privatisation in the 1990s has underpinned growth since the turn of the millennium but some fear that President Michael Sata is attempting to turn the clock back. Rock crusher at Mopani Copper Mine According to government estimates, the Zambian economy grew by seven per cent in 2013, putting it ahead of most other African countries and at the heart of the African economic transformation. The International Monetary Fund predicts that it will remain at this level for the next two years. GDP per capita increased from US$349 in 2002 to $1,469 by 2012. As a result, the World Bank now classifi es Zambia as a lower middle-income country. Speaking to the nation in January, President Sata said: “At this pace, I wish to assure the citizens that our government will continue to foster a stable macro-economic environment, which will be refl ected in low and stable infl ation and a competitive exchange rate, as well as prudent fi scal management.” The country’s economic development over the past decade has not attracted as much attention as some other African states, such as the oil economies of Angola, Nigeria and Equatorial Guinea, yet Zambia’s success has been almost as dependent on the export of a single commodity – in this © Photosmith2011 Creative Commons BY SA 2.0 60 l www.global -br ief ing.org second quar ter 2014 global


Global_18
To see the actual publication please follow the link above