|Machinery and equipment|
The Republic of Zambia is a landlocked country in Southern Africa neighboring the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west. The capital city is Lusaka, in the south-central part of Zambia. The population is concentrated mainly around Lusaka in the south and the Copper belt Province to the northwest, the core economic hubs of the country.
The financial liberalization Zambia engaged in at the beginning of the 1990s offered an opportunity for a revival of the Zambian banking sector and the country’s overall economic development. In 2004, the Zambian government embarked on the Financial Sector Development Programme (FSDP), a strategy aimed at building and strengthening financial sector infrastructure to enable it to support economic diversification and sustainable growth. In 2006 there were 13 commercial banks aside from the Bank of Zambia, which regulates and supervises the Zambia banking sector under the Banking and Financial Services Act 2000. Since 2008, 6 more subsidiaries of foreign banks have been registered, bringing the total number to 19 commercial banks for the whole sector at the end of 2012, according to the Bank of Zambia.
The Zambian banking sector shows a high level of concentration with few large banks dominating the financial landscape. (Concentration ratio, the 2nd table in the AfDB report) The four largest banks accounted for an average of about 2/3 of total assets and deposits between 2002 and 2011, while for loans the proportion was much higher. The high concentration in the loans market was driven by banks’ expansion of their loan book in the wake of improved macroeconomic conditions. On the other hand, the dominance of the four largest banks in deposits and total assets has been diluted by increased market capture of smaller banks and new industry entrants, an indication of growing competitiveness in this segment of the banking sector. Between 2008 and 2011, the new foreign banks captured an average of 3% of the deposit market.
|Agriculture||Small grains, wheat, milk, maize, fruits, tobacco, cereals, wools.|
|Manufacture||Mining, machinery, Energy.|
|Services (Including financial)||60% (2015 estimate)|
|Konkola Copper Mines||Mining|
|Zambia Consolidated Copper Mines||Mining|
|Zambian Breweries||Consumer goods|
|Zambezi Airlines||Consumer services|
|Finance Bank Zambia Limited||Finance|
|Machinery and equipment|
The Lusaka Stock Exchange (abbreviated to LuSE) is the principal stock exchange of Zambia. Founded in 1993, it is located in Lusaka. The LuSE is a member of the African Stock Exchanges Association.
The Lusaka Stock Exchange (LuSE) was established with preparatory technical assistance from the International Finance Corporation (IFC) and the World Bank in 1993. The Exchange opened on 21 February 1994. In its first two years of operations, the LuSE and Securities and Exchange Commission (SEC) were funded by the UNDP and Government of Zambia as a project for financial and capital market development in Zambia, under the multi-component private sector development program.
The formation of LuSE was part of the government’s economic reform program aimed at developing the financial and capital market in order to support and enhance private sector initiative. It was also expected to attract foreign portfolio investment through recognition of Zambia and the region as an emerging capital market with potentially high investment returns. Another important role of LuSE was to facilitate the divestiture of Government ownership in parastatals and realization of the objectives of creating broad and wide shareholding ownership by the citizenry via a fair and transparent process.
The LuSE has made great strides since inception. It is now more than a platform for trading shares and bonds, as demonstrated by some companies from across the spectrum of an industry that has used it to raise the public capital for expansion.
No Financial Crisis
Originally inhabited by Khoisan peoples, the region was affected by the Bantu expansion of the thirteenth century. After visits by European explorers in the eighteenth century, Zambia became the British protectorate of Northern Rhodesia towards the end of the nineteenth century. For most of the colonial period, Zambia was governed by an administration appointed from London with the advice of the British South Africa Company.
On 24 October 1964, Zambia became independent of the United Kingdom and prime minister, Kenneth Kaunda became the inaugural president. Kaunda's socialist United National Independence Party (UNIP) maintained power from 1964 until 1991. Kaunda played a key role in regional diplomacy, cooperating closely with the United States in search of solutions to conflicts in Rhodesia (Zimbabwe), Angola, and Namibia. From 1972 to 1991 Zambia was a one-party state with the UNIP as the sole legal political party under the motto "One Zambia, One Nation". Kaunda was succeeded by Frederick Chiluba of the social-democratic Movement for Multi-Party Democracy in 1991, beginning a period of social-economic growth and government decentralization. Levy Mwanawasa, Chiluba's chosen successor, presided over Zambia from January 2002 until his death in August 2008 and is credited with campaigns to reduce corruption and increase the standard of living. After Mwanawasa's death, Rupiah Banda presided as Acting President before being elected President in 2008. Holding office for only three years, Banda stepped down after his defeat in the 2011 elections by Patriotic Front party leader Michael Sata. Sata died on 28 October 2014, the second Zambian president to die in office. Guy Scott served briefly as interim president until new elections were held on 20 January 2015, in which Edgar Lungu was elected as the sixth President.
In 2010, the World Bank named Zambia one of the world's fastest economically reformed countries. The Common Market for Eastern and Southern Africa (COMESA) is headquartered in Lusaka.
Presently, Zambia averages between $7 billion and $8 billion of exports annually. About 68% of Zambians live below the recognized national poverty line, with rural poverty rates standing at about 78% and urban rates at about 53%. Unemployment and underemployment in urban areas are serious problems. Most rural Zambians are subsistence farmers.
Zambia ranked 117th out of 128 countries on the 2007 Global Competitiveness Index, which looks at factors that affect economic growth. Social indicators continue to decline, particularly in measurements of life expectancy at birth (about 40.9 years) and maternal mortality (830 per 100,000 pregnancies). The country's rate of economic growth cannot support rapid population growth or the strain which HIV/AIDS-related issues place on the economy.
Zambia fell into poverty after international copper prices declined in the 1970s. The socialist regime made up for falling revenue with several abortive attempts at International Monetary Fund structural adjustment programmes (SAPs). The policy of not trading through the main supply route and line of rail to the sea – the territory known as Rhodesia (from 1965 to 1979), and now known as Zimbabwe – cost the economy greatly. After the Kaunda regime, (from 1991) successive governments began limited reforms. The economy stagnated until the late 1990s. In 2007 Zambia recorded its ninth consecutive year of economic growth. Inflation was 8.9%, down from 30% in 2000.
Zambia is still dealing with economic reform issues such as the size of the public sector and improving Zambia's social sector delivery systems. Economic regulations and red tape are extensive, and corruption is widespread. The bureaucratic procedures surrounding the process of obtaining licenses encourages the widespread use of facilitation payments. Zambia's total foreign debt exceeded $6 billion when the country qualified for Highly Indebted Poor Country Initiative (HIPC) debt relief in 2000, contingent upon meeting certain performance criteria. Initially, Zambia hoped to reach the HIPC completion point, and benefit from substantial debt forgiveness, in late 2003.
In January 2003, the Zambian government informed the International Monetary Fund and World Bank that it wished to renegotiate some of the agreed performance criteria calling for privatization of the Zambia National Commercial Bank and the national telephone and electricity utilities. Although agreements were reached on these issues, subsequent overspending on civil service wages delayed Zambia's final HIPC debt forgiveness from late 2003 to early 2005, at the earliest. In an effort to reach HIPC completion in 2004, the government drafted an austerity budget for 2004, freezing civil service salaries and increasing the number of taxes. The tax hike and public sector wage freeze prohibited salary increases and new hires. This sparked a nationwide strike in February 2004.
The Zambian government is pursuing an economic diversification program to reduce the economy's reliance on the copper industry. This initiative seeks to exploit other components of Zambia's rich resource base by promoting agriculture, tourism, gemstone mining, and hydro-power.
|Edgar Lungu (President)||Guy Scot (Politician)|
The Kwacha (code: ZMW) is the currency of Zambia. It is subdivided into 100 Ngwee. The name derives from the Nyanja word for "dawn", alluding to the Zambian nationalist slogan of a "new dawn of freedom". The name ngwee translates as "bright" in the Nyanja language. Prior to independence, the Southern Rhodesian pound was the legal tender of the short-lived British protectorate of Northern Rhodesia. Banknotes of 10 shillings, 1, 5, and 10 pounds issued by the Central Africa Currency Board were in circulation, together with coins of ½, 1, 3, 6 pence, and 1, 2, 2½, and 5 shillings. After independence, the Bank of Zambia issued the first Zambian currency, the Zambian pound, in 1964. The issued paper bills and coins were of similar denominations as these used before independence, except for the 10 pounds note, which was never issued by the Bank of Zambia. A new design to depict the newly independent country's history and struggle was adopted. The two currencies - the South Rhodesian pound and the Zambian pound, were allowed to circulate in parallel until December 15, 1965, when the South Rhodesian pound bills and coins were withdrawn from circulation, except for the 3 pence coin which was allowed to circulate alongside its Zambian alternative for a brief period.
On July 1, 1966, the parliament approved the arrangements of the decimal currency system (Act 40 of 1966). The government voted in favor of decimalisation, and changing the main currency unit to Kwacha, with one kwacha being equal to 100 ngwee. The exchange rate was set to one kwacha equivalent to ten Zambian shillings, or one half of a Zambian pound. Thus, by January 16, 1968 all Zambian pound bills and coins were removed from circulation and replaced by the new kwacha bills, and ngwee coins. The Zambian pound bills of 10 shillings, 1, and 5 pounds were changed into 1, 2 and 10 kwacha respectively, a bill of 50 ngwee was issued to replace the old 5 shillings coin, alongside a new bill of 20 kwacha. Ngwee coins with the denominations of 1, 2, 5, 10, and 20 ngwee replacing the existing 1, 3, 6 pence, 1, and 2 shillings coins respectively. The Zambian pound notes, and coins ceased to be a legal tender on January 31, 1974.
At the very beginning, the kwasha was pegged to the pound at a fixed rate of 1.7094 kwacha per 1 pound. Yet, after the devaluation of the dollar on August 15, 1971, Zambia broke all its currency's ties to the British monetary unit, and pegged the kwacha to the American monetary unit. These reforms resulted in a reduction of the kwacha's gold standard by 7.8%. Few months later, the British Chancellor of the Exchequer Anthony Barber, announced the demise of the Sterling area, and floatation of the sterling pound, causing Zambia to renounce the monetary privileges once enjoyed as a member state.
Throughout the years, the Zambian currency suffered high rates of inflation forcing the Bank of Zambia to introduce high value denominations in 2003, including 20,000 and 50,000 kwacha bills to facilitate transactions. In 2013, a new, redenominated kwacha was introduced.
In 1968, bronze 1 and 2 ngwee and cupro-nickel 5, 10 and 20 ngwee were introduced. These coins all depicted president Kenneth Kaunda on the obverse and flora and fauna on the reverse. A twelve sided 50 ngwee coin was introduced in 1979 to replace the 50 ngwee note and featured commemorative FAO themes.
In 1982, copper-clad-steel replaced bronze in the 1 and 2 ngwee. These two were struck until 1983, with production of the 5 and 10 ngwee ceasing in 1987 and that of the 20 ngwee in 1988. Nickel-brass 1 kwacha coins were introduced in 1989 and depicted "Bank of Zambia" on the edges. The period of circulation for this coin was brief as inflation rates skyrocketed.
In 1992, a new, smaller coinage was introduced consisting of nickel-plated-steel 25 and 50 ngwee and brass 1, 5 and 10 kwacha. The coins depict the national crest on the obverse and native fauna on the reverse. The coins were issued only one year and then discontinued as the economic crisis dragged on.
All these coins, both from the older and newer series still remain legal tender. However, the value of the metal in the coins is worth more than their irrelevant face value, so they are never seen or used in normal trade. The only place coins might be seen today is when they are sold as souvenirs to tourists.
On January 1, 2013 new coins were introduced, namely for 5, 10, 50 ngwee and 1 kwacha
The Zambian kwacha was first issued in 1968 to replace the Zambian pound. The design of the kwacha bill changed as time went on, also, different bills were either introduced in or withdrawn from circulation. Seven emissions of the first kwacha are known to exist, while only one emission of the second kwacha was introduced in circulation in January 1, 2013 and still existing since then without any changes in design or security features. Each emission share similar general features in design throughout all the banknotes, with slight changes concerning the colors and the activity based theme on the reverse of the banknotes.
Since its inauguration in 1964 and until the second half of 2016, the Bank of Zambia had issued two commemorative bank notes. The first commemorative banknote was a One Kwacha banknote issued in 1973, commemorating the birth of the second republic, an incident in which the regime, led by president Kenneth Kaunda, decided on December 13, 1972 to set up a One-party state as from January 1, 1973. Apart from the issued note, a specimen banknote was also issued in celebration of the same occasion.
On October 23, 2014, one day before the celebrations of the Independence Day, the Bank of Zambia revealed its second ever commemorative banknote. A Fifty Kwacha banknote was issued commemorating the 50th Independence Anniversary. Unlike the previous commemorative banknotes and coins of Zambia, the new commemorative banknote was the first commemorative banknote allowed in circulation as a legal tender in the country, bearing the same features of the existing Fifty Kwacha bills.
|National Song||"Stand and Sing of Zambia, Proud and Free"|
|Currency||Zambian kwacha (ZMW)|
|GDP / GDP Rank||64.867 Billion USD|
|GDP Growth Rate||3.6 Percent|
|GDP Per Captial||$3880.31 (PPP)|
< 1.0% Muslims
< 1.0% Hindus
< 1.0% Buddhists
< 1.0% Jews
< 1.0% Other Religions
President – Edgar Lungu
|Website||Go to the web|
|Public Debt||53.109 Percent|
|Unemployment Rate||7.53 Percent|
|Labor Force (Occupation)||-|