Country Snapshot

Population (2019, millions)¹17.86
Population Projections (2030, millions)¹24.32
Economically active population in agriculture (as % of Economically active population)12, 201964.7
CapitalLusaka
Surface Area (km²)²752,610
Weather¹¹In Lusaka: Hottest month, October, 18-31°C; coldest month, July, 9-23°C (average daily minimum and maximum); driest month, August, 0 mm average rainfall; wettest month, December, 231 mm average rainfall
Languages³Official: English - Others: Bembe, Nyanja, Tonga, Lozi, Chewa, Nsenga, Tumbuka, Lunda (North Western), Kaonde, Lala, Lamba, Luvale, Mambwe, Namwanga, Lenje, Bisa and others
Main Religions³Main:  Protestant and Roman Catholic - Others: Muslim Buddhist, Hindu, Baha'i and none
Time⁴Central Africa Time (CAT) +0200 UTC
Driving Orientation⁵Left Side
Internet Country Code⁶.zm
Country Calling Code+260
Plug, Socket and Voltage⁷ Type C, D and G - 230V/50Hz
CurrencyZambian Kwacha (ZMK) - 1/100 = Ngwee
Exchange Rate (As of 17 February 2019, per USD)⁸11.87 (buy rate)
GDP at Market Prices (2018, current, billions of USD)⁹26.72
GDP Growth (2018, annual %)⁹3.39
Average GDP Growth (2014-2018, annual %)⁹3.71
GDP per Capita, PPP (2018, current international $)⁹4,216
Inflation, Consumer Prices (2018, annual %)⁹7.49
Average Inflation, Consumer Prices (2014-2018, annual %)⁹9.97
Total Reserves in Months of Imports (2018)⁹1.77

Sources:
¹United Nations Population Division, Department of Economic and Social Affairs.
²COMESA Statistics, COMESTAT Data Hub.
³CIA World Factbook.
⁴Time and Date Portal.
⁵Chartsbin Portal, "Worldwide Driving Orientation by Country".
⁶Wikipedia, "List of Internet top-level domains"; and, Internet Assigned Numbers Authority, Root Zone Database.
⁷International Electrotechnical Commission, World Plugs.
⁸Bank of Zambia. 
⁹World Bank, World Development Indicators 2019.
¹¹Economist Intelligence Unit.
12AFDB Socioeconomic Database

Reasons to Invest in Zambia

Population

Population Projections (millions)

Population (2019)17.86
Population Projections (2030)24.32

Source: United Nations Population Division, Department of Economic and Social Affairs.

Population Residing in Urban Areas (%)

Population Projections (2019)44.07
Percentage of Population Residing in Urban Areas (2030)50.47

Source: United Nations Population Division, Department of Economic and Social Affairs.

Youth Literacy Rates (2017, %)

Youth Literacy Rate, Population 15-24 Years, Both Sexes 92.09
Youth Literacy Rate, Population 15-24 Years, Female 91.62
Youth Literacy Rate, Population 15-24 Years, Male 92.55

Source: United Nations Educational, Scientific and Cultural Organization, UNESCO Institute of Statistics.

Labour

Unemployment (2018, % of Total Labour Force)

Unemployment, Total 7.2
Unemployment, Female 6.94
Unemployment, Male 7.45

Source: World Bank, World Development Indicators 2019.

Labour Force (2017, % of Ages 15+)

Labour Force Participation Rate, Total 75.18
Labour Force Participation Rate, Female 70.75
Labour Force Participation Rate, Male79.79
Labour Force, Total (number)7,183,708

Source: World Bank, World Development Indicators 2019.

Economy - Overview

GDP

 20142015201620172018
GDP at Market Prices (current, billions of USD)27.1521.1520.9525.8627.72
GDP Growth (annual %)4.692.913.753.403.79

Source: World Bank, World Development Indicators 2019.

Value Added by Sector (% of GDP)

Indicator20182019
Agriculture  8.408.00
Manufacturing  9.009.23
Industry  42.6842.95
Services  67.9268.05
Construction 11.8512.28
Electricity, gas and water  3.643.91
Mining and quarrying  18.1917.52
Education  9.329.35
Finance, real estate and business services  13.0713.34
Public administration and Defense  5.465.38
Health and Social Work  1.581.60
Other services  1.051.01
Transport, storage and communication  8.678.86
Wholesale and retail trade, hotels and restaurants 28.7728.53

Source: AFDB Socio Economic Database.

Trade Profile

Import Partners (USD ‘000)

 20142015201620172018
World8,743,8638,508,2807,538,3337,983,2849,461,739
South Africa2,808,1182,619,5502,418,9272,457,4742,726,786
Congo DR1,337,463953,320988,6541,012,4811,393,726
China795,878693,617600,0071,121,2351,290,683
United Arab Emirates229,385175,970316,736468,048595,662
India377,616366,078316,681246,259442,583

Source: COMTRADE Statistics.

Export Partners (USD ‘000)

 20142015201620172018
World8,870,2907,037,7296,508,4188,006,7909,052,165
Switzerland3,019,1922,786,7452,485,7763,542,0713,808,387
China1,363,442992,6861,208,5811,329,5851,307,810
Singapore350,098550,128368,776493,961699,742
Congo DR615,049451,327351,165435,404686,646
South Africa579,164501,301362,140390,634437,056

Source: COMTRADE Statistics.

Zambia’s Top Import Products (USD ‘000)

ChapterDescription20142015201620172018
 All products       8,743,863        8,508,280        7,538,333        7,983,284        9,461,739 
84Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof       1,187,399           962,222           836,162        1,130,273        1,389,831 
27Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes       1,314,665        1,666,738        1,670,863        1,340,717        1,339,757 
26Ores, slag and ash       1,307,533           616,920           701,738           949,660        1,271,425 
87Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof          726,435           549,163           434,248           481,016           803,435 
85Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles          846,641           841,865           865,899           444,426           589,145 

Source: COMTRADE Statistics.

Zambia’s Top Export Products (USD ‘000)

ChapterDescription20142015201620172018
 All products    8,870,290     7,037,729     6,508,418     8,006,790     9,052,165 
74Copper and articles thereof    6,594,543     5,193,686     4,555,866     6,158,724     6,807,039 
28Inorganic chemicals: organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes        267,891           84,032           64,160           96,209         200,213 
49Books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans          25,584           54,572           67,654         120,855         191,855 
25Salt; sulphur; earths and stone; plastering material, lime and cement        125,661         105,262         179,375         157,236         190,543 
84Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof        115,544           68,470         102,226           79,927         126,413 

Source: COMTRADE Statistics.

Investment Profile

FDI Inflows (millions of USD)

Year20142015201620172018
FDI Inflows1,4891,3056631,108569

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Outflows Stock (millions of USD)

Year20142015201620172018
FDI Outflows(1,706.1)125.1176.7(72.0)32.2

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inward Stock (millions of USD)

Year20142015201620172018
FDI Inward Stock16,14916,48818,85519,86620,435

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Outward Stock (millions of USD)

Year20142015201620172018
FDI Outward Stock2,4171,4571,6251,5531,585

Source: United Nations Conference on Trade and Development, World Investment Report 2019

FDI Inflows Main Source Countries (in terms of number of projects)

South Africa, China, UK, India, Canada, United States, Botswana, Australia, Togo, and France.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Sectors (in terms of number of projects)

Metals, Financial Services, Food and Tobacco, Communications, Business Services, Industrial Machinery, Equipment and Tools, Chemicals, Building and Construction Materials, Transportation, and Renewable energy.

Source: Financial Times, fDi Markets, 2018

FDI Inflows Main Companies (in terms of number of projects)

Konkola Copper Mine, First Quantum Minerals, First National Bank Zambia, Ecobank Zambia, Liquid Telecom Zambia, BancABC Zambia, MTN Zambia, Pick n Pay, Shoprite, and China Nonferrous Metals Mining (CNMC).

Source: Financial Times, fDi Markets, 2018

Doing Business

Overall Doing Business Ranking

202085/190
201987/190

Source: World Bank, Doing Business, 2020

Starting a Business

2020 Rank117/190
Procedures (number)7
Time (days)8.5
Cost (% of income per capita*)34.0
Paid-in Minimum Capital (% of income per capita*)0.0

*GNI per capita used: USD 280
Source: World Bank, Doing Business, 2020

Paying Taxes

Paying Taxes

2020 Rank17/190
Payments (number per year)11
Time (hours per year)158
Total Tax Rate (% of profit)15.6
       Profit Tax (% of profit) 2.0
       Labor Tax and Contributions (% of profit)10.4
       Other Taxes (% of profit)3.1

Source: World Bank, Doing Business, 2020

Trading Across Borders

2020 Rank155/190
Time to Export: Border Compliance (hours)120
Cost to Export: Border Compliance (USD)370
Time to Export: Documentary Compliance (hours) 96
Cost to Export: Documentary Compliance (USD)200
Time to Import: Border Compliance (hours) 120
Cost to Import: Border Compliance (USD) 380
Time to Import: Documentary Compliance (hours) 72
Cost to Import: Documentary Compliance (USD) 175

Assumptions:
* It is assumed that shipment travels from a warehouse in the largest business city of the exporting economy to a warehouse in the largest business city of the importing economy.
* It is assumed that each economy imports a standardized shipment of 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed that each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product.
* A shipment is a unit of trade. Export shipments do not necessarily need to be containerized, while import shipments of auto parts are assumed to be containerized.
* Shipping cost based on weight is assumed to be greater than shipping cost based on volume.
* If government fees are determined by the value of the shipment, the value is assumed to be $50,000.
* The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, airport or land border crossing.
* Time is measured in hours, and 1 day is 24 hours.
* Costs do not include tariffs.
Source: World Bank, Doing Business, 2020

Investment Regime

Legal Framework

Investment Code - The Zambia Development Agency (ZDA) Act of 2006 Key guarantees in terms of investment protection include:

Source: United Nations Conference on Trade and Development, iGuide Zambia.

Investment Incentives

General Incentives 

Capital allowances:

Agriculture

Manufacturing

Tourism

Source: Deloitte, Guide to Fiscal Information, Key Economies in Africa 2018 and KPMG, Zambia Fiscal Guide 2017/18.