Zambia

ZAMBIA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS ZAMBIANS
DEPENDENCIES
BIBLIOGRAPHY

Republic of Zambia

CAPITAL: Lusaka

FLAG: The flag is green, with a tricolor of dark red, black, and orange vertical stripes at the lower corner of the fly, topped by a golden flying eagle.

ANTHEM: Stand and Sing for Zambia.

MONETARY UNIT: The kwacha (k) of 100 ngwee replaced the Zambian pound (z£) on 15 January 1968. There are coins of 1, 2, 5, 10, 20, and 50 ngwee, and notes of 1, 2, 5, 10, 20, 50, 100, and 500 kwacha. k1 = $0.00022 (or $1 = k4,549.58) as of 2005.

WEIGHTS AND MEASURES: The metric system is used.

HOLIDAYS: New Year's Day, 1 January; Youth Day, 11 March; Labor Day, 1 May; African Freedom Day, 24 May; Heroes' Day, 1st Monday after 1st weekend in July; Unity Day, Tuesday after Heroes' Day; Farmers' Day, 5 August; Independence Day, 24 October; Christmas, 25 December. Movable religious holidays include Good Friday and Easter Monday.

TIME: 2 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

A landlocked country in south central Africa, Zambia has an area of 752,614 sq km (290,586 sq mi), with a maximum length of 1,206 km (749 mi) e–w and a maximum width of 815 km (506 mi) n–s. Comparatively, the area occupied by Zambia is slightly larger than the state of Texas. Bounded on the ne by Tanzania, on the e by Malawi, on these by Mozambique and Zimbabwe, on the s by Zimbabwe, Botswana, and Namibia (South West Africa), on the w by Angola, and on the w and n by the Democratic Republic of the Congo (DROC), Zambia has a total boundary length of 5,664 km (3,519 mi).

Zambia's capital city, Lusaka, is located in the south central part of the country.

TOPOGRAPHY

Most of the landmass in Zambia is a high plateau lying between 910 and 1,370 m (3,000–4,500 ft) above sea level. In the northeast, the Muchinga Mountains exceed 1,800 m (5,900 ft) in height. Elevations below 610 m (2,000 ft) are encountered in the valleys of the major river systems. Plateau land in the northeastern and eastern parts of the country is broken by the low-lying Luangwa River, and in the western half by the Kafue River. Both rivers are tributaries of the upper Zambezi, the major waterway of the area. The frequent occurrence of rapids and falls prevents through navigation of the Zambezi.

There are three large natural lakes—Bangweulu, Mweru, and Tanganyika—all in the northern area. Lake Tanganykia is the largest with an area of about 12,770 sq km (32,893 sq mi). Lake Bangweulu and the swamps at its southern end cover about 9,840 sq km (3,799 sq mi) and are drained by the Luapula River. Kariba, one of the world's largest manmade lakes, is on the southern border; it was formed by the impoundment of the Zambezi by the construction of the Kariba Dam.

CLIMATE

Although Zambia lies within the tropics, much of it has a pleasant climate because of the altitude. Temperatures are highest in the valleys of the Zambezi, Luangwa, and Kafue and by the shores of Lakes Tanganyika, Mweru, and Bangweulu.

There are wide seasonal variations in temperature and rainfall. October is the hottest month. The main rainy season starts in mid-November, with heavy tropical storms lasting well into April. The northern and northwestern provinces have an annual rainfall of about 125 cm (50 in), while areas in the far south have as little as 75 cm (30 in). May to mid-August is the cool season, after which temperatures rise rapidly. September is very dry.

Daytime temperatures may range from 23° to 31°c (73–88°f), dropping at night to as low as 5°c (41°f) in June and July. Lusaka, at 1,250 m (4,100 ft), has an average minimum of 9°c (48°f) and an average maximum of 23°c (73°f) in July, with averages of 17°c (63°f) and 26°c (79°f), respectively, in January; normal annual rainfall is 81 cm (32 in).

FLORA AND FAUNA

Most of the territory is plateau and the prevailing type of vegetation is open woodland or savanna. Acacia and baobab trees, thorn trees and bushes, and tall perennial grasses are widespread, becoming coarser and sparser in the drier areas to the south. To the north and east grows a thin forest. The southwest has forests of Zambian teak (Baikiaea plurijuga).

The national parks and game reserves, such as the Kafue National Park, conserve the wildlife threatened by settlement. The Cookson's wildebeest, Senga Kob, Thornicroft giraffe, and red lechwe are unique to Zambia. The many varieties of buck include kudu, impala, duiker, and sten. In Luangwa Valley can be found giraffe, zebra, rhinoceros, elephant, baboon, monkey, hyena, wolf, and lion. Among the nocturnal animals are serval and civet cat, genet, and jackal. Other mammals include the honey badger, ant bear, rock rabbit, wart hog, and bush pig.

Zambia has a wealth of bird life, including the eagle, gull, tern, kingfisher, swift, redwing, lark, babbler, sunbird, weaver, red-billed quelea (in Luangwa Valley), stork, goose, plover, skimmer, bee-eater, wagtail, sparrow, swallow, thrush, shrike, nightingale, dove, nightjar, and an occasional ostrich. White pelican, flamingo, heron, ibis, and the crowned crane are found in the game reserves. As of 2002, there were at least 233 species of mammals, 252 species of birds, and over 4,700 species of plants throughout the country.

There are more than 150 recorded species of reptiles, including 78 species of snakes and 66 of lizards. Among them are the crocodile, tortoise, turtle, terrapin, gecko, agama, nonvenomous python, mamba, viper, and adder. The range of species of fish is also wide and includes bream, snoutfish, butterfish, tigerfish, bottlenose, gorgefish, mudfish, catfish, barbel, "vundu," squeaker, whitebait, perch, carp, bass, and "utaka" (of the sardine type). Insect types number in the thousands, and many are peculiar to the area. The Copperbelt region and the swamps of Lake Bangweulu are especially rich in insect life.

ENVIRONMENT

Both traditional and modern farming methods in Zambia involve clearing large areas of forest. As of 1985, the nation had lost 699 sq km (270 sq mi) of forestland, mainly to slash-and-burn agriculture but also to firewood gathering and charcoal production. Consequent erosion results in the loss of up to 3 million tons of topsoil annually. The exclusive cultivation of a single crop on agricultural land and the use of fertilizers threaten the soil and contribute to acidification. The Copperbelt region, Zambia's mineral-extraction and refining center has been polluted by contaminants including acid rain. The buildup of toxins in the soil near many smelters poses a threat to food crops.

Air pollution is caused by vehicle emissions and coal-powered industrial plants. Lack of adequate water-treatment facilities contributes to the prevalence of bilharziasis and other parasitic infections. Water pollution arises from contamination by sewage and toxic industrial chemicals. The nation has 80 cu km of renewable water sources, of which 77% of annual withdrawals is used for farming and 7% for industry. Roughly 90% of Zambia's city dwellers and 36% of the people living in rural areas have access to improved water sources.

Wildlife is endangered in some areas by hunting and poaching, although the National Parks and Wildlife Act (1982) mandates automatic imprisonment for trading illicitly in elephant tusks and rhinoceros horns. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), the number of threatened species included 11 types of mammals, 12 species of birds, 1 species of amphibian, 4 types of mollusks, 3 species of other invertebrates, and 8 species of plants. Threatened species include the African wild dog, the black rhinoceros, the Madagascar pond heron, and white-winged crake.

POPULATION

The population of Zambia in 2005 was estimated by the United Nations (UN) at 11,227,000, which placed it at number 73 in population among the 193 nations of the world. In 2005, approximately 3% of the population was over 65 years of age, with another 45% of the population under 15 years of age. There were 100 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–2010 was expected to be 1.9%, a rate the government viewed as too high. With support from international organizations, the country sought to reduce its fertility rate, which stood at 5.8 births per woman in 2005. The projected population for the year 2025 was 15,798,000. The population density was 15 per sq km (39 per sq mi).

The UN estimated that 35% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 2.32%. The capital city, Lusaka, had a population of 1,394,000 in that year. Population estimates for other cities included Ndola (374,757), Kitwe (363,734), Kabwe (219,600), Chingola (211,755), and Mufulira (204,104). The main urban concentrations were in the Copperbelt mining complex.

The prevalence of HIV/AIDS has had a significant impact on the population of Zambia. The UN estimated that 17% of adults between the ages of 15–49 were living with HIV/AIDS in 2005. The AIDS epidemic causes higher death and infant mortality rates, and lowers life expectancy.

MIGRATION

Before independence, the size of the European population waxed and waned with the fortunes of the mining industry. During the political upheavals of the mid-1960s, many Europeans in the mining industries left Zambia. As of 1999, there were nearly 200,000 refugees in Zambia. Most were from Angola; the rest were from the DROC, Rwanda, Burundi, and other African countries. There were 377,000 migrants living in Zambia in 2000, including refugees. By the end of 2004 there were 17,307 refugees and 84 asylum seekers in Zambia. However, in that same year over 39,000 Angolan refugees had been assisted by the United Nations High Commissioner for Refugees (UNHCR) in Zambia, as well as, over 49,000 refugees from the DROC, and over 3,000 refugees from Rwanda. Also in 2004, 111 Zambians sought asylum in South Africa. The net migration rate in 2005 was estimated as zero migrants per 1,000 population. The government views the migration levels as satisfactory.

ETHNIC GROUPS

The African community, close to 99% of Zambia's total population, is composed of various Bantu groups. (The term "Bantu" refers roughly to all peoples in whose language the root ntu means "man.") The Bemba group—37% of the African population—inhabits the Northern and Copperbelt provinces. Other African societies include the Tonga (19%), Lunda (12%), Nyanja (11%), Mambwe (8%), and Lozi or Barotse (7%). In all, there are at least 73 different African societal classifications.

The Europeans, accounting for about 1% of the population, are mainly of British stock, either immigrants or their descendants from the United Kingdom or South Africa. Other European groups include those of Dutch, Italian, and Greek descent. Counting Asians, mainly migrants from the Indian subcontinent, and people of mixed race, other non-Africans constitute only about 0.2% of the population.

LANGUAGES

Some 80 different languages have been identified, most of them of the Bantu family. For educational and administrative purposes, seven main languages are recognized: Bemba, Lozi, Lunda, Kaonda, Luvale, Tonga, and Nyanja. Bemba, with its various dialects, is widely spoken in northern Zambia and is the lingua franca in the Copperbelt. The Ila and Tonga tongues predominate in the Southern Province. English is the official language.

RELIGIONS

An estimated 87% of the population professes some form of Christianity. Another 1% are either Muslim or Hindu. The majority of Christians are either Roman Catholics or Protestants. There has also been a surge in new Pentecostal churches, which have attracted many young followers. Muslims tend to be concentrated in parts of the country where Asians have settled—along the railroad line from Lusaka to Livingstone and in the eastern province.

A 1996 amendment to the constitution declared the country a Christian nation while providing for freedom of religion in practice. Some members of the Muslim community have complained of discrimination since the country was declared a Christian nation. They claim they cannot freely teach and practice Islam; however, other Muslim organizations state they have not experienced any restrictions on their activities. Religious groups must register with the government in order to operate legally; however, all applications for registration are reportedly approved without discrimination. Various ecumenical groups have formed to promote interfaith dialogue and to discuss national political concerns. These include the Zambia Episcopal Conference, the Christian Council of Zambia, and the Evangelical Fellowship of Zambia.

TRANSPORTATION

Almost all of Zambia's industries, commercial agriculture, and major cities are located along the rail lines, which are often paralleled by highways. The Zambia Railways system consists of 2,173 km (1,349 mi) of track, all of it narrow gauge. The rail link with the Atlantic via the Katanga and Benguela railways to Lobito Bay in Angola has been affected by instability in Angola since the mid-1970s. Construction began in October 1970 on the Tazara railway, a 1,860-km (1,156-mi) line linking Dar es Salaam in Tanzania with Kapiri Mposhi, north of Lusaka; intended to lessen Zambian dependence on the former white-minority regimes of South Africa and the former Rhodesia (presently Zimbabwe), the line (890 km/553 mi of which is in Zambia) was completed and commissioned in July 1976. Equipment and operational problems have kept the railway from reaching its full potential, however, and rail cargo links with South Africa and Mozambique ports, passing through Zimbabwe, remain important for Zambian commerce.

Zambia had 66,781 km (41,498 mi) of roadway in 2002. The principal routes were: the Great North Road (809 km/503 mi), running from Kapiri Mposhi through Tanzania to Dar es Salaam, with a connecting road in Zambia from Kapiri Mposhi south to Livingstone (Maramba); the Great East Road (586 km/364 mi), from Lusaka to Chipata and thence to the Malawi border, with a connecting road (583 km/362 mi) from Mongu to Lusaka; the Zaire Border Road, from Kapiri Mposhi on the Great North Road through the Copperbelt region to Katanga, DROC; and the Kafue-Harare (Zimbabwe) road. Road services continue to play an important role in transporting copper and general cargo to and from Dar es Salaam. Transport services on the main routes also are provided by the National Transport Corp. of Zambia, the state-owned freight and passenger transport service. The United Bus Co. of Zambia is the largest passenger carrier. In 2003, there were 114,300 registered motor vehicles, including 68,500 passenger cars.

In 2004, there were an estimated 109 airports, but only 10 of which had paved runways as of 2005. Lusaka International is the principal airport. State-owned Zambia Airways is the national airline. Zambia Airways provides international service from Lusaka to several African and European countries, as well as domestic service to 17 Zambian centers. In 2003, about 51,000 passengers were carried on scheduled domestic and international flights.

There are 2,250 km (1,398 mi) of waterways, including Lake Tanganyika, and the Zambezi and Luapula rivers. Mpulungu on Lake Tanganyika is Zambia's only port and receives goods supplied through Tanzania. There are several fishing harbors on Kariba Lake.

HISTORY

The history of Zambia before the 19th century can be studied only through archaeology and oral traditions. Iron working and agriculture were practiced in some parts of Zambia by about ad 100. By ad 900, mining and trading were evident in southern Zambia. Between the 15th century (or possibly earlier) and the 18th century, various groups of Bantu migrants from the southern Congo settled in Zambia. By the beginning of the 19th century, three large-scale political units existed in Zambia, in three different types of geographic environment. On the northeast plateau between the valleys of the Luapula and Luangwa, the Bemba had established a system of chieftainships; the Lunda kingdom of Kazembe was in the Luapula Valley; and the kingdom of the Lozi was in the far west, in the floodplain of the upper Zambezi.

Zambia was affected by two "invasions" in the mid-19th century. Shaka's Zulu empire in South Africa set in motion a series of migrations, commonly referred to as the mfecane; groups of peoples, including the Ngoni, were forced to migrate north across the Zambezi in order to avoid the Zulu raids and conquests. The other invasion came in the form of traders from the north—Nyamwezi, Arabs, and Swahili—drawing Zambia into long-distance trading systems.

The first significant European contact was through Christian missionaries. David Livingstone explored the region near Lake Bangweulu extensively from 1851 to his death in 1873. In 1884, François Coillard, a French Protestant missionary, settled in Barotseland (now the Western Province).

In the 1890s, Cecil Rhodes' British South Africa Company, which had already established itself to the south, extended its charter to the lands north of the Zambezi. From 1891 to the end of 1923, the territory—known as Northern Rhodesia—was ruled by this private company. Efforts to stimulate European settlement were disappointing, since anticipated discoveries of mineral wealth failed to materialize.

In the 1920s, new methods of exploiting the extensive mineral deposits in the Copperbelt region transformed the economic life of the territory. Development of these ore bodies, although hampered by the Great Depression, reversed the roles of the two Rhodesias. Northern Rhodesia, formerly viewed as an economic liability in any projected merger with Southern Rhodesia, now was seen as a source of wealth. European settlements rose rapidly, spurred directly by the requirements of the mining industry and indirectly by the subsequent expansion of the economy.

Before federation in 1953, the political development of the territory focused on two relationships: that of the European settlers with the colonial authorities on the one hand, and that between the settlers and the Africans on the other. The European settler community pressed for a greater voice in the colony's affairs. The major political issue involving the relations between Europeans and Africans concerned the allocation of land. Commissions on land policy designated the areas adjacent to the railway line as crown land. Although there was no legal bar to the acquisition of crown land by Africans, the effect of the arrangement was to exclude them from the commercially most attractive acreage.

In 1953, Northern Rhodesia became a member of the Federation of Rhodesia and Nyasaland. Even though the overwhelming majority of Africans in the territory was opposed to the federal arrangement, the British government decided that Northern Rhodesia would participate in the federation. In 1960, a royal commission reported that, despite clear economic benefits, the majority of Africans in both Northern Rhodesia and Nyasaland was opposed to the continuance of federation in its present form. In early 1962, Nyasaland's desire to secede from the federation was acknowledged by the British government.

Following its initiation into the federation, the government of Northern Rhodesia underwent constitutional changes, with a growing emphasis on African representation. Africans had not been represented on the Legislative Council until 1948, when two were named to that body. An enlarged Legislative Council, convened in 1954 just after the formation of the federation, included four Africans selected by the African Representative Council. A new constitution, introduced in January 1959, aimed at replacing the council with a political system based on a greater degree of cooperation between the races.

Discussions on a revision of this constitution began in December 1960 but were brought to an early close by disagreement between the European-dominated United Federal Party and the United National Independence Party (UNIP). But agreement was finally reached, and a new constitution came into effect in September 1962. Elections later that year produced an African majority in the Legislative Council, which then called for secession from the federation, full internal self-government under a new constitution, and a new National Assembly based on a broader, more democratic franchise.

The Republic of Zambia is Born

On 31 December 1963, the Federation of Rhodesia and Nyasaland was formally dissolved. On 24 October 1964, Northern Rhodesia became an independent republic, and its name was changed to Zambia. Kenneth Kaunda, the leader of the ruling UNIP, became the nation's first president. Kaunda was reelected in 1969, 1973, 1978, and 1983, surviving a series of coup attempts during 1980–81.

During the 1970s, Zambia played a key role in the movement toward black majority rule in Rhodesia. Zambia's border with Rhodesia was closed from 1973 to 1978 by Kaunda in retaliation for Rhodesian raids into Zambia; the raids were intended to impede the infiltration of Patriotic Front guerrillas into Rhodesia from their Zambian bases. The emergence of independent, black-ruled Zimbabwe eased the political pressure, but a drastic decline of world copper prices in the early 1980s, coupled with a severe drought, left Zambia in a perilous economic position. The continuing civil war in Angola also had repercussions in Zambia, bringing disruption of Zambian trade routes and casualties among Zambians along the border.

A South African air raid near Lusaka on 19 May 1986 was aimed at curbing Zambia's support for black nationalist groups in exile there. Later in the year, Kaunda supported Commonwealth sanctions against South Africa but did not take action himself, since Zambia was heavily dependent on imports from South Africa.

Riots, the worst since independence, broke out on 9 December 1986 in protest against the removal of subsidies for cornmeal, which had caused the price to rise by 120%; 15 people were killed, hundreds were injured, and hundreds of shops were looted. Peace returned two days later when Kaunda restored the subsidy and nationalized the grain-milling industry. He also ruled thenceforth with state of emergency powers. Reduction in government spending in order to reduce the deficit had been demanded by the International Monetary Fund, along with the devaluation of the currency, as a condition for extending new loans to enable Zambia to pay for essential imports. On 1 May 1987, Kaunda rejected the IMF conditions for a new financing package of about $300 million. He limited payments on the foreign debt to well under 10% of export earnings and established a new fixed currency rate of eight kwacha to the dollar. This did little to improve the economy or the popularity of Kaunda and UNIP.

By early 1989, Zambia, in consultation with the IMF and the World Bank, developed a new economic reform plan. In early 1991, Zambia qualified for World Bank assistance for the first time since 1987, although this was later suspended. By 1990, a growing opposition to UNIP's monopoly of power had coalesced in the Movement for Multiparty Democracy (MMD). A number of UNIP defectors and major labor leaders came together to pressure Kaunda to hold multiparty elections. In December 1990, after a tumultuous year that included riots in Lusaka and a coup attempt, Kaunda signed legislation ending UNIP's legal monopoly of power.

After difficult negotiations between the government and opposition groups, Zambia enacted a new constitution in August 1991. It enlarged the National Assembly, established an electoral commission, and allowed for more than one presidential candidate. Candidates no longer were required to be UNIP members. In September, Kaunda announced the date for Zambia's first multiparty parliamentary and presidential elections in 19 years. On 31 October and 1 November 1991, the 27-year long state of emergency was terminated. Frederick J. T. Chiluba (MMD) defeated Kaunda, 81% to 15%. The MMD won over 125 of the 150 elected seats in the Assembly. UNIP won 25 seats, although UNIP swept the Eastern Province, winning 19 seats there.

Despite the change of government, the economy still sputtered. Chiluba's austerity measures may have been popular with Zambia's creditors, but not with its people. Likewise, his privatization plans alarmed the unions, his original base of support. Chiluba's MMD in power became autocratic and corrupt. Kaunda, his family, and UNIP officials were harassed. The press began to criticize Chiluba's government and Chiluba lashed back. An Anticorruption Commission investigated three senior cabinet ministers suspected of abuse of office.

UNIP remained the principal target of Chiluba's wrath. In February 1993, a document known as "Operation Zero Option" was leaked to the press. Allegedly written by Kaunda loyalists, it called for a campaign of strikes, riots and crime to destabilize the government. On 4 March 1993, government declared a three-month state of emergency and detained 26 UNIP members, including three of Kaunda's sons. Chiluba lifted the state of emergency on May 25 and released all but eight of the detainees, whom he charged with offenses from treason to possession of seditious documents.

Throughout the 1990s, Zambia continued to face troubles in its attempts to modernize its economy and to reform its political system. Despite liquidation of the government's huge stake in the nation's industrial sector, and implementing a drastic austerity program to reduce its budget deficit, the country saw only marginal growth. Further, despite the promise of fresh beginnings in 1991, the country momentarily reverted to one-party rule under Chiluba as the MMD fraudulently won huge victories in the November 1996 elections prompting foreign donors to suspend aid payments briefly in early 1997. Subsequently, a campaign mounted by Chiluba and his party to amend the constitution to allow a third term was defeated. In the election of 27 December 2001, Chiluba's handpicked candidate Levy Mwanawasa was elected president with 29% of the vote; the MMD picked up 68 of 150 seats in the National Assembly. The vote was ruled flawed by international and local poll monitors—mainly on grounds of misuse of state funds and vote buying. An opposition petition to the Supreme Court alleged that the elections were rigged.

In an overture for national unity, or perhaps a bid to save his presidency, Mwanawasa named nine opposition members of parliament to his cabinet in February 2003. The move provoked a constitutional crisis when Mwanawasa refused to back down against a High Court ruling that the appointments were unconstitutional. Opposition parties expelled the members of parliament from the National Assembly. Later that month the Supreme Court declined a petition by former president Chiluba seeking immunity from prosecution under the government's anticorruption drive. Chiluba was accused of abuse of office and 60 counts of theft during his ten-years in office. In May 2003, under pressure from church, women's and other civil society groups, Mwanawasa conceded to the formation of a constituent assembly to review the constitution. Civic groups contended that the current document grants the executive far-reaching powers, which groups say is at odds with their vision for a people-driven constitution. Activist opponents of the president's vision for the constitutional review process took to wearing green ribbons and honking their horns on Fridays.

Levy Mwanawasa attempted to root out corruption in Zambia unlike the increasingly apparent corruption of the later years of Frederick Chiluba's time in office. Chiluba was arrested by Mwanawasa's government and charged with several counts of embezzlement and corruption, firmly quashing initial fears that President Mwanawasa would turn a blind eye to the allegations of his predecessor's corrupt practices. However, his early zeal to root out corruption waned, with key witnesses in the Chiluba trial leaving the country. The Constitutional Review Commission set up by Mwanawasa also hit some turbulence, with arguments as to where its findings should be submitted leading to suspicions that he has been trying to manipulate the outcome. Nevertheless, Zambian people view Mwanawasa's rule as a great improvement on Chiluba's corrupt regime.

In recent years, the government has considered participation in a future free trade area as part of the Southern Africa Development Community (SADC) arrangement. Food security and care for AIDS orphans and vulnerable children were also on the policy agenda. The government had also commenced the repatriation of some 5,000 Rwandan refugees. An estimated 1.2 million Zambians are HIV positive, with 21.5% of adults aged between 15 and 49 years infected with the virus. Around 86% of Zambians are classified as poor, which impacts nutritional status. Lingering fallout from crop failures and drought in the sub-region in 2001-2002 required targeted food aid for some 60,000 persons, down from a high of 2.7 million in 2002.

GOVERNMENT

From 1953 to 1963, Northern Rhodesia was a protectorate under the jurisdiction of the British crown, within the Federation of Rhodesia and Nyasaland. On 24 October 1964, it became an independent republic. The constitution of January 1964 was amended in 1968 and in 1972, when it was officially announced that Zambia would become a one-party "participatory democracy," with the sole party the ruling United National Independence Party. A new constitution was drafted and received presidential assent in August 1973.

Under the 1973 constitution, the president of the Republic of Zambia was head of state, commander-in-chief of the armed forces, and president of the UNIP. Once chosen by the ruling party, the president had to be confirmed by a majority of the electorate, but there was no limitation on the length of the president's tenure in office. The prime minister was the leader of government business and an ex officio member of the UNIP Central Committee. As provided in the constitution, the Central Committee consisted of not more than 25 members, 20 to be elected at the party's general conference held every 5 years, and 3 to be nominated by the president, who was also a member. Cabinet decisions were subordinate to those of the UNIP Central Committee. The parliament consisted of the president and a National Assembly of 125 elected members, but all Assembly members had to be UNIP members, and their candidacy had to be approved by the party's Central Committee. The constitution also provided for a House of Chiefs of 27 members. A Bill of Rights guaranteed the fundamental freedom and rights of the individual, but if at any time the president felt the security of the state threatened, he had the power to proclaim a state of emergency. Indeed, Zambians lived under a state of emergency for 27 years.

In August 1991, a new constitution was promulgated. The president is now elected directly by universal suffrage and may serve a maximum of two five-year terms. The National Assembly has 150 directly elected members with up to eight appointed by the president, also for five-year terms. Since 2 January 2002, President Levy Mwanawasa served as head of state with Vice President Enoch Kavindele (4 May 2001) and on 4 October 2004 a new vice president was appointed, Lupando Mwape. The next presidential elections were scheduled for December 2006.

POLITICAL PARTIES

African nationalism began to rise in Northern Rhodesia after World War II. African welfare associations, founded before the war, developed rapidly into political organizations. In 1946, representatives from 14 welfare societies formed the Federation of Welfare Societies. In 1948, the federation was reconstituted as the Northern Rhodesia Congress. It became the North Rhodesian African National Congress (ANC) in 1951 under the leadership of Harry Nkumbula. In 1958, dissatisfaction with Nkumbula's leadership gave rise to a breakaway movement led by the party's secretary-general, Kenneth Kaunda. Kaunda formed the Zambia African National Congress, which was declared illegal the following year. In 1960, the United National Independence Party (UNIP) was formed under Kaunda's leadership. UNIP received a majority of the popular votes in the 1962 elections and formed the first government after independence. The ANC became the chief opposition party.

In 1967, the United Party (UP) was formed by Nalumino Mundia, a Lozi who had been dismissed from the cabinet in 1966. Its support came mainly from Barotseland in the southwest, where the UP promised to restore the power of the chiefs. After violence erupted in the Copperbelt, Kaunda banned the UP as a "threat to public security and peace," and Mundia and his principal officers were arrested. In August 1968, the UP was declared illegal. Mundia was released in 1969, joined the UNIP in 1974, and was named prime minister in 1981.

In the general elections of December 1969, the UNIP won 81 seats in the National Assembly, the ANC 23, and independents 1. Kaunda was reelected president. The elections were followed by violence and political unrest. At the opening of the new Assembly, the speaker refused to recognize the ANC as the official opposition. With the proclamation of a one-party state in December 1972, UNIP became the only legal party in Zambia. The ANC was assimilated into UNIP; the United Progressive Party, formed in August 1971, was summarily disbanded by the government, and its founder, Simon Kapwepwe, briefly arrested.

On 5 December 1973, the first presidential elections held under the new constitution brought the reelection of Kaunda to a third term with 85% of the vote. Voters also filled the 125 elective seats in the National Assembly. In 1975, the UNIP declared its ranks open to former followers of banned parties, but in 1978 candidacy was restricted to those with five years' continuous UNIP membership. National Assembly and presidential elections were held in December 1978, with Kaunda, again unopposed, receiving 80.5% of the vote. In the elections of October 1983, Kaunda's share of the total rose to 93%. A total of 766 candidates ran for the 125 Assembly seats.

After considerable social unrest in 1986 and again in 1990, the Kaunda government came under domestic and international pressure to end UNIP's monopoly in legitimate partisan activity. A Movement for Multiparty Democracy (MMD) was formed and led by trade unionists and defectors from UNIP. Finally, in December 1990, Kaunda signed into law a bill legalizing opposition political parties. In the new constitution adopted in August 1991, candidates are no longer required to belong to UNIP.

These changes paved the way to multiparty presidential and parliamentary elections on 31 October and 1 November 1991, the first in 19 years. The MMD's leader, Frederick Chiluba, easily won the presidency, 81% to 15% for Kaunda. The MMD got 125 seats to 15 for UNIP in the National Assembly. Kaunda and his family were harassed by the MMD, which forced Kaunda to step down as UNIP leader in August 1992. However, he returned a few years later to reclaim UNIP leadership. He briefly considered running on the UNIP ticket in the national presidential elections in 2001.

Since the legalization of multiparty competition, more than 30 parties have operated in the country. Parties include Agenda for Zambia (AZ), Forum for Democracy and Development (FDD), Heritage Party (HP), Progressive Front (PF), Movement for Multiparty Democracy (MMD), National Citizens Coalition (NCC), National Leadership for Development (NLD), National Party (NP), Patriotic Front (PF), Zambian Republican Party (ZRP), Social Democratic Party (SDP), United National Independence Party (UNIP), United Party for National Development (UPND), and the National Democratic Alliance (NADA). The United Democratic Party and the United Democratic Congress Party are headed by former top UNIP leaders. The National Party (also with prominent ex-MMD figures) was created in August 1993 and won four seats in the Assembly in 1993–94 by-elections. Within the MMD there is a breakaway group, the Caucus for National Unity, to root out corruption in government.

In elections held on 20 November 1996, President Frederick Chiluba and the MMD won over 85% of the available seats in the National Assembly. However, independent observers condemned the election as being rigged by the MMD.

In the election of 27 December 2001, Levy Mwanawasa was elected president with 29% of the vote to 27% for Anderson Mazoka, 13% for Christon Tembo, 10% for Tilyenji Kaunda, 8% for Godfrey Miyanda, 5% for Benjamin Mwila, and 3% for Michael Sata. In the legislative contest held the same date, eight parties won seats in the National Assembly. The MMD claimed 45.9% of the vote winning 68 seats, followed by the UPND with 32.4% and 48 seats, the UNIP with 8.8% and 13 seats, the FDD with 8.1% and 12 seats, the HP with 2.7% and 4 seats, the PF with 0.7% and one seat, the ZRP with 0.7% and one seat, and independents with 0.7% and one seat. Two seats were not determined. The next elections were due in December 2006.

LOCAL GOVERNMENT

Zambia is divided into nine provinces (including the special province of Lusaka), administered by officials appointed by the central government. Each province is further divided into districts, presided over by district secretaries. Around 55% of Zambians live in towns and cities, giving Zambia one of the highest urbanization rates in Africa. Lusaka has a city council, and the other large towns have councils or town management boards; most townships, however, are directly administered by government officers. Local elections in urban areas are organized on a ward system with universal adult suffrage. Local urban authorities can levy taxes, borrow money, and own and manage housing projects. They control roads, water, power, town planning, health facilities, and other public services within their areas.

Administrative districts lying outside municipal and township areas are governed by rural councils, consisting of members elected by universal adult suffrage and a minority of nominated members, mainly chiefs, appointed by the under minister of the interior. Councils have evolved from the former native authorities, which were constituted on a tribal basis. The rural councils have frequently cut across African societal boundaries in order to establish larger and more viable units. The functions and powers of rural councils are similar to those of the urban local authorities.

JUDICIAL SYSTEM

The judicial system is based on English common law and customary law. Common law is administered by several High Courts, which have authority to hear criminal and civil cases and appeals from lower courts. Resident magistrate's courts are also established at various centers. Local courts mainly administer customary law, especially cases relating to marriage, property, and inheritance.

Under the constitution of 1991, the Supreme Court is the highest court in Zambia and serves as the final court of appeal. The chief justice and other eight judges are appointed by the president. In consultation with the prime minister, the president also appoints the director of public prosecution and the attorney general, the latter being the principal legal adviser to the government. The independence of the judiciary has been respected by the government. Trials in magistrate courts are public.

ARMED FORCES

As of 2005, the strength of the armed forces was 15,100 active personnel, supported by 3,000 reservists and paramilitary forces that consisted of two police battalions, totaling 1,400 members. The Army had 13,500 personnel, whose equipment included 30 main battle tanks and 30 light tanks. The Air Force had 1,600 personnel operating 33 combat capable aircraft, that included 14 fighters and 12 fighter ground attack aircraft. In 2005, the defense budget totaled $48.1 million.

INTERNATIONAL COOPERATION

Zambia joined the United Nations on 1 December 1964 and participates in ECA and several nonregional specialized agencies, such as the FAO, UNESCO, UNHCR, UNIDO, the FAO, the World Bank, IAEA, and the WHO. It belongs to the African Development Bank, the ACP Group, the Commonwealth of Nations, G-77, the WTO, COMESA, and the African Union. Located in Zambia are the headquarters of the International Red Locust Control Organization for Central and Southern Africa, as well as COMESA headquarters, an office of the UN High Commissioner of Refugees, and a regional office of the UN Institute for Namibia, established to provide training for future administrators of an independent Namibian state. Zambia belongs to the Southern African Development Community (SADC) and the Preferential Trade Area for Eastern and Southern Africa.

Zambia has played an important role in peace negotiation efforts for neighboring states, particularly the DROC. The country has also supported UN operations and missions in Kosovo (est. 1999), Ethiopia and Eritrea (est. 2000), Liberia (est. 2003), Sierra Leone (est. 1999), Burundi (est. 2004), and Côte d'Ivoire (est. 2004). Zambia is part of the Nonaligned Movement.

In environmental cooperation, Zambia is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the Montréal Protocol, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

The Zambian economy was in a precarious state during the 1990s. High inflation, severe drought, declining export prices, and failed economic policies all took their toll. Four of the nation's 20 banks failed and total debt stood at $7 billion in 1999. Divided into the population, that was $700 of debt per capita, compared with a GDP per capita of only $380. After steady declines in per capita GDP, Zambia was redesignated a least developed country by the United Nations. The impact of inflation on the poor, the middle class, and business eroded public support for the government's reform policies. Economic reforms aimed at privatizing the economy succeeded in selling approximately 85% of 330 parastatal companies, including the main copper mining conglomerate Zambia Consolidated Copper Mines (ZCCM) in 2000.

The first sign that tight monetary and fiscal policies were beginning to have an effect, was a rapid drop in the inflation rate, but by 1998, the rate had increased from 19% in 1997 to 31% in 2001. It was forecast to remain at around 20% in 2002. After the drought of 1992, agricultural production rebounded with record harvests of many crops, but the government's tight cash budget policy limited its capacity to purchase the crops. The key copper industry (which took in 80% of export revenues in 1999), maintained production levels, but depressed world prices kept revenues at lower levels. However, in 2000, copper export earnings reached $800 million, a 5.4% increase over 1999, but declined to $595 million in 2003. As of 2003, there was growing interest in developing coffee and tobacco as cash crops, but the main agricultural product is maize, a noncash crop necessary for domestic consumption. The tourism industry is growing. In 2000 Zambia became eligible for $3.8 billion in debt relief under the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative.

In 2005, the kwacha had gained some ground and remained strong, but falling copper prices and the need for maize imports will put downward pressure on it. Furthermore, the only oil refinery in Zambia was shut down in 2005 bringing the country into a fuel crisis that is likely to wreck havoc on an already weak economy. The fuel crisis has adversely affected the mining sector. It is estimated that about 1.7 million Zambians do not have adequate food due to a prolonged drought.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Zambia's gross domestic product (GDP) was estimated at $10.3 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $900. The annual growth rate of GDP was estimated at 5.8%. The average inflation rate in 2005 was 19%. It was estimated that agriculture accounted for 21.7% of GDP, industry 29.5%, and services 48.8%.

Foreign aid receipts amounted to $560 million or about $54 per capita and accounted for approximately 13.4% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Zambia totaled $2.89 billion or about $278 per capita based on a GDP of $4.3 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of -2.6%. Approximately 52% of household consumption was spent on food, 8% on fuel, 2% on health care, and 11% on education. It was estimated that in 1993 about 86% of the population had incomes below the poverty line.

LABOR

In 2005, the labor force in Zambia was estimated at 4.8 million persons. Agriculture accounts for 85% of the country's workforce, with industry accounting for only 6% and the services sector only 9%. In 2000 it was estimated that 50% of the workforce was unemployed.

The Labor Department is responsible for employment exchange services and for enforcing protective labor legislation. In 2002, about 60% of the country's 300,000 formal wage earners were unionized. There were about 19 large national labor unions, all but one of them affiliated with the Zambia Congress of Trade Unions (ZCTU). With the exception of essential services, all workers have the right to strike.

The minimum wage was $0.07 per hour in 2002. The maximum regular workweek is 48 hours, but most wage earners work 40hour weeks. The minimum working age is 16 years. This is enforced in the industrial sector but not in subsistence agriculture, domestic services, or the informal economy where children are more likely to work. The law also regulates minimum health and safety standards in industry but staffing problems at the Ministry of Labor chronically limit enforcement effectiveness.

AGRICULTURE

The development of commercial farming followed the construction of the railroad in the early 20th century, but the main stimulus did not come until World War II (1939–45), when it was necessary to ensure a maximum output of copper and to minimize the shipping space required for food imports. Food production continued to expand as the copper industry helped raise living standards. Additional European immigration in the 1950s, as well as programs to diversify the economy, gave rise to the production for export of tobacco, cotton, and peanuts. However, partly because of the rapidly rising population, agricultural output never reached the point of meeting domestic food requirements. Only 5% of the land area is cultivated at any time, although a much larger area is potentially arable.

The majority of Zambia's population engages in subsistence farming. The principal subsistence crops are corn, sorghum, and cassava, while the main cash crops are tobacco, corn, sugarcane, peanuts, and cotton. In 1992, liberalized marketing began for most crops, but because of the 1991/92 drought, corn marketing remained under government control. A bountiful 1993 harvest made a solid recovery from the drought. In 2003, agriculture accounted for 23% of total GDP.

Production of tobacco, the most important export crop, was estimated at 4,800 tons in 2004. Marketed corn production in 2004 was 1,161,000 tons. Cotton production reached 22,000 tons of fiber. Also marketed in 2004 were 1,800,000 tons of sugarcane, 10,000 tons of sunflowers, 42,000 tons of peanuts, and 135,000 tons of wheat.

ANIMAL HUSBANDRY

The estimated livestock population in 2005 included 2,600,000 head of cattle, 1,270,000 goats, 340,000 hogs, and 150,000 sheep. Cattle production in certain regions is limited by sleeping sickness, carried by the tsetse fly. During 2005, beef production was 40,800 tons; poultry, 36,500 tons. Meat production in 2005 was estimated at 127,000 tons.

FISHING

Because Zambia's inland waters are a valuable source of food and employment, the fishing industry plays an important part in the rural economy. Large quantities of fish, most of which are transported by rail to processing centers, are frozen or dried. Major quantities are obtained from Bangweulu, Tanganyika, and Mweru lakes, and from the Kafue and Luapula rivers. The catch in 2003 was 69,500 tons.

FORESTRY

About 42% of Zambia is covered by forest; commercial exploitation is concentrated in the southwest and in the Copperbelt. Roundwood production was about 8.05 million cu m (284 million cu ft) in 2004, 90% of it for fuel needs.

MINING

Zambia's mining sector in 2003 was dominated by the production of copper and cobalt, for which the country ranks 11th and second in the world, respectively. The country was also a leading producer of gem quality emeralds. However, mining and quarrying as a whole, accounted for only 2.8% of Zambia's gross domestic product (GDP) in 2003, although employment in that industry rose to 53,900, from 39,900 in 2002. Gemstones, mined mostly by small-scale and artisanal miners, also recorded significant earnings; earnings from this segment may amount to as much as $250 million per year, since much of the output bypassed official counts. Construction was another leading industry, along with the production of chemicals and fertilizers. By 2000, privatization of most of the major mines, including copper, had been completed, and efforts were ongoing to privatize the gemstone and other small mines sectors, and to attract foreign investors to develop other known metallic and industrial mineral resources. Among the difficulties faced by landlocked Zambia were high transportation costs, the threat posed by HIV/AIDS to the labor force, cyclical world commodity prices, and the impact of civil wars in Angola and Democratic Republic of the Congo on foreign investment.

In 2003, total copper mine output (by concentration, cementation, and leaching; metal content) was 349,000 metric tons, up from 330,000 metric tons in 2002. The output of cobalt (metal content), as a by-product of copper mining and processing, was 6,550 metric tons, up from 6,144 metric tons in 2002. The mining industry has been effected by declining world copper demand, slow global economic growth, labor unrest, transportation difficulties, including port and rail congestion, and shortages of spare parts, raw materials, and fuel. Most of Zambia's major mines had been privatized by 2000. However, investment reversals in 2002 involved the Konkola Mines and the Baluba-Luanshya Mines. As a result, the government was forced to reopen privatization bids.

Among the largest copper mines were the Nkana (5.5 million tons ore per year capacity), the Nchanga and Chingola open-pits (4.5 million tons ore per year), the Nchanga underground (2.8 million tons), the Mufalira (2.8 million tons), the Konkola underground (2.2 million tons), the Luanshya underground (1.7 million tons), and the Baluba underground (1.4 million tons). The country's total mineral resources exceeded 2,580 million tons, with ore reserves of 728 million tons. Equinox Resources Ltd.'s Lumwana project, with two large copper-cobalt-gold-uranium deposits (Chimiwunga and Malundwe), had resources of 1 billion tons that contained 0.67% copper, and 481 million tons of ore (1% copper). The Kalimba Group's Nama and Ngosa areas had a resource of 950 million tons.

Zambia also produced gold, refined selenium, silver, cement, clays (including brick, china, and ball), gemstones (amethyst, beryl, emerald, red garnet, and tourmaline), calcined lime, limestone, sand and gravel, and sulfur. No iron ore, tin, aquamarine, citrine, feldspar, magnetite, or nitrogen has been produced for several years. Exploration was being carried out for zinc, and for diamonds in western Zambia.

ENERGY AND POWER

Zambia is self-sufficient in electricity. The country's output of electric power in 2002 totaled 9.015 billion kWh, of which nearly 100% was from hydropower. Consumption of electricity in that year totaled 5.684 billion kWh. Total electric power generating capacity in 2002 was 1.8 million kW. Zambia exports almost 30% of its production to Zimbabwe.

Zambia relies almost entirely on imports to meet its hydrocarbon needs. In 2002, imports of all petroleum products averaged 12,240 barrels per day, of which crude oil accounted for 9,500 barrels per day. Refined oil product output in 2002 averaged 9,800 barrels per day. Refined petroleum consumption that year averaged 12,190 barrels per day. Crude oil is imported by means of a pipeline from Tanzania.

Coal production in 2002 totaled 231,000 short tons, all of which was bituminous. Demand for coal that year totaled 150,000 short tons.

INDUSTRY

Industry accounted for 28% of GDP in 2001. Apart from copper refining, the most important industries are those connected with the manufacture of sulfuric acid, fertilizer, compressor lubricants, electrical appliances and parts, glass, batteries, cigarettes, textiles, yarn, glycerine, vehicle and tractor assembling, sawmilling, wood and joinery manufacture, tire retreading, processing of food and drink, and the manufacture of cement and cement products. Nitrogen Chemicals of Zambia, which produces fertilizer, is the largest nonmining enterprise. Since tariff barriers for imports have been lifted, many manufacturing facilities have closed, especially in the clothing industry.

To assist in the establishment of manufacturing and processing industries, the government has formed the Industrial Development Corp. of Zambia (INDECO). It has developed a number of enterprises, including a chemical-fertilizers plant, an explosives plant, a glass bottle factory, and a battery factory; these projects were joint ventures with foreign companies. The country has one oil refinery, at Ndola, with a production capacity of 24,000 barrels per day.

SCIENCE AND TECHNOLOGY

The National Council for Scientific Research, founded in 1967 at Lusaka, advises the government on scientific matters and coordinates and disseminates the results of the Zambian research effort. Scientific learned societies include the Engineering Institution of Zambia, founded in 1955 at Lusaka. Research institutes specialize in fisheries, veterinary science, geology, agriculture, forestry and forest products, tropical diseases, pneumoconiosis, and red locust control. The University of Zambia, founded in 1965 at Lusaka, has departments of natural sciences, engineering, medicine, agricultural sciences, veterinary sciences, and mines. Copperbelt University, founded in 1979 at Kitwe, has schools of environmental studies and technology. Three other colleges offer courses in agriculture and engineering. In 1987–97, science and engineering students accounted for 16% of college and university enrollments. In 1999 (the latest year for which data is available, there were 55 researchers and 17 technicians engaged in research and development per million people. In 2002, high technology exports totaled $2 million, or 2% of the country's manufactured exports.

DOMESTIC TRADE

Since independence, trading activity has increased in both rural and urban areas, especially in Lusaka. The Zambian Privatization Agency was in the process of privatizing parastatals that controlled large wholesale and retail chains. Centers of trading activity are the main towns along the rail line. Wholesale outlets are prevalent in larger towns and cities, while individually owned vendors and smaller retail shops are common in smaller communities and remote areas.

Normal business hours are from 8 am to 5 pm, Monday–Friday, and 8 am to 12:30 pm on Saturday. Banks are open from 8:15 am to 12:45 pm on most weekdays, but close at noon on Thursdays and 11 am on Saturdays.

FOREIGN TRADE

Mineral commodities account for about 90% of exports, led by copper and cobalt. Other export commodities include zinc, lead, and tobacco. Leading imports are machinery, transportation equipment, foodstuffs, fuels, petroleum products, electricity, and fertilizer.

BALANCE OF PAYMENTS

Zambian trade is normally in rough balance. However, a heavy debt burden gives the country a current account deficit, and hard currency is often in short supply. Total debt service payments in 1997 equaled $277 million, or about 21% of export earnings.

In the early 2000s, the trade deficit worsened due to mining-related imports needed to reform the privatized copper industry. Nonetheless, an improvement in official and commercial inflows,

Country	Exports	Imports	Balance
World	929.5	1,252.7	-323.2
United Kingdom	393.6	153.6	240.0
South Africa	214.0	641.7	-427.7
Tanzania	71.1	14.9	56.2
Switzerland-Liechtenstein	57.1	6.9	50.2
Congo (DROC)	39.8	…	39.8
Malawi	19.4	3.8	15.6
Belgium	17.3	7.8	9.5
India	17.0	45.5	-28.5
Zimbabwe	14.1	97.9	-83.8
Netherlands	11.3	6.6	4.7
(…) data not available or not signifi cant.

Current Account			-584.0
Balance on goods		-221.0
Imports	-978.0
Exports	757.0
Balance on services		-226.0
Balance on income		-120.0
Current transfers		-18.0
Capital Account			153.0
Financial Account			-274.0
Direct investment abroad		…
Direct investment in Zambia		122.0
Portfolio investment assets		…
Portfolio investment liabilities		-1.0
Financial derivatives		…
Other investment assets		-85.0
Other investment liabilities		-309.0
Net Errors and Omissions			185.0
Reserves and Related Items			520.0
(…) data not available or not signifi cant.

supported by a resumption of concessional donor support, was expected to prompt a recovery.

The Economist Intelligence Unit reported that in 2005 the purchasing power parity of Zambia's exports was $1.947 billion while imports totaled $1.934 billion resulting in a trade deficit of 13 million.

BANKING AND SECURITIES

In November 1970, the Zambian government announced that it would take a majority interest in all banks operating in Zambia; however, the banking proposals were later modified so that the government became majority shareholder through the State Finance and Development Corp. of the already state-owned Zambia National Commercial Bank Ltd. (ZNCB) and the Commercial Bank of Zambia. The state-owned Bank of Zambia (BOZ), the central bank founded in 1964, sets and controls all currency and banking activities in the country.

In 2002, the leading commercial banks were subsidiaries of Barclays, Citibank, Equator Bank, Standard Chartered, First Alliance, and Stanbic. There are two development banks: the Development Bank of Zambia and the Lima Bank. Other state-owned financial institutions include the Zambia National Building Society, and the Import Export Bank of Zambia, launched in early 1988 to promote trade generally and nontraditional exports in particular. In 1985, the first locally and privately owned bank was formed, the African Commercial Bank. Its success led to the establishment of several more, including Cavmont Merchant Bank, making Zambia one of Africa's most "overcrowded" countries in terms of banking, with 28 registered commercial banks at the end of December 1994. This number had dropped to twelve, however, by 2002.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $288.4 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $764.3 million.

In 1997, things were looking up for the Lusaka Stock Exchange (LuSE), which has in the past struggled to attract new listings and improve its frequently thin trading volumes.

INSURANCE

On 1 January 1972, the Zambia State Insurance Corp. (ZSIC) took over all insurance transactions in Zambia. The operations of ZSIC cover fire, marine, aviation, accident, motor vehicle, and life insurance. All imports must be insured with this agency.

PUBLIC FINANCE

With its heavy dependency on copper, Zambia is able to show comfortable surpluses in its public accounts only when the mining industry is prosperous. From 1985 to 1987, Zambia attempted to implement a structural reform program, sponsored by the IBRD and IMF. In 1987, however, the government stopped the program and reverted to deficit spending and monetary creation. By 1992, a new government was committed to curtailing public expenditures through privatization and decreasing the civil service. By 1998, more than 85% of parastatals were privatized. In early 2000, the giant parastatal mining company, Zambian Consolidated Copper Mines (ZCCM) was completely privatized; that transaction helped Zambia satisfy the conditions for balance of payment support.

The US Central Intelligence Agency (CIA) estimated that in 2005 Zambia's central government took in revenues of approximately $1.6 billion and had expenditures of $1.8 billion. Revenues minus expenditures totaled approximately -$178 million. Public debt in 2005 amounted to 104.2% of GDP. Total external debt was $5.866 billion.

The International Monetary Fund (IMF) reported that in 1999, the most recent year for which it had data, budgetary central government revenues were k1,844.4 billion and expenditures were

Revenue and Grants	1,844.4	100.0%
Tax revenue	1,378.3	74.7%
Social contributions	…	…
Grants	414.2	22.5%
Other revenue	51.9	2.8%
Expenditures	1,874.3	100.0%
General public services	758.9	40.5%
Defense	73.7	3.9%
Public order and safety	61.4	3.3%
Economic affairs	383.4	20.5%
Environmental protection	…	…
Housing and community amenities	43.3	2.3%
Health	248	13.2%
Recreational, culture, and religion	10.5	0.6%
Education	270.8	14.4%
Social protection	24.3	1.3%
(…) data not available or not significant. f = forecasted or projected data.

k1,874.3 billion. The value of revenues in US dollars was us$770 million and expenditures us$780 million, based on a official exchange rate for 1999 of us$1 = k2,388.02 as reported by the IMF. Government outlays by function were as follows: general public services, 40.5%; defense, 3.9%; public order and safety, 3.3%; economic affairs, 20.5%; housing and community amenities, 2.3%; health, 13.2%; recreation, culture, and religion, 0.6%; education, 14.4%; and social protection, 1.3%.

TAXATION

As of 2005, Zambia's corporate tax rate ranged from 15% up to 45%, depending upon the type of business. Generally, dividends, interest, royalties and management fees are each subject to a 15% withholding tax. There is also a mineral royalty tax and a property transfer tax.

Income taxes include a 1% charge by local Councils on the gross salaries of employees after a deduction of 300,000 Kwacha (about $66.55) and a 1.015% property tax. Individual income is taxed according to a progressive schedule with four bands: 0% on the first 600,000 Kwacha (about $133) of annual income; 10% on the next 600,000 Kwacha; 20% on the next 600,000 Kwacha, and 30% on the increment of annual income above 1,800,000 Kwacha (about $400).

A value-added tax (VAT) with a standard rate of 20% replaced the sales tax in 1995. The standard rate was subsequently reduced to 17.5%, where it stands as of 2005. Items exempted from VAT include insurance transactions, mosquito nets and insecticides, and exports.

CUSTOMS AND DUTIES

Tariff schedules give preferential treatment to imports from the United Kingdom and other Commonwealth countries. Zambia belongs to the Common Market of Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC), both committed to free trade. Rebates are allowed on certain capital goods and on most materials used in local manufacturing industries. Tariff protection also is accorded to selected new industries. Most imports require licenses. Import duties ranged from 5% for raw materials and capital equipment, 15% for intermediate goods, and 25% on final products as of 2005. Selected items, such as soaps and vegetable cooking oils, carry special protective tariffs. There are no free trade zones.

FOREIGN INVESTMENT

In the past, the heaviest concentrations of foreign private capital in Zambia were in the mining enterprises of the Copperbelt. Anglo-American holds only a 27% interest in the national mining company ZCCM, a company that was privatized in 2000. Most investment is from the United Kingdom or South Africa. Although tax holidays have been offered as incentives, Zambia's highly socialized economy has not been conducive to private foreign investment, and exchange controls have made the repatriation of profits and dividends difficult.

Laws concerning retention of foreign exchange have been consistent, achieving full liberalization only recently. In 1983, exporters of nontraditional items could keep 50% of earned foreign exchange to finance imported inputs. This resulted in a fivefold increase in nonmetal exports. This provision was revoked in 1987. The Investment Act of 1991 provided for a 70% foreign exchange retention during the first three years of a license, 60% in the next two years, and 50% for the rest of the license's term. This act was subsequently revised to allow for full retention of foreign exchange earnings.

Annual foreign direct investment (FDI) flow into Zambia reached $207 million in 1997, after which it steadily declined, from $198 million in 1998 to $72 million in 2001. Zambia's success in attracting FDI declined from 1990 to 2000. The FDI flow increased steadily from $82 million in 2002 to $334 million in 2004. For the period 1988 to 1999, Zambia's share of world FDI inflows was more than four times its share in world GDP. For the period 1998 to 2000, its share of world inward FDI was less than twice its share of world GDP.

ECONOMIC DEVELOPMENT

Controlling inflation is a development priority, followed by faster implementation of social sector programs, legal and civil service reform, and privatization. New investment has been slow to form as investors await anticipated lower inflation rates. The lack of administrative capacity lies at the heart of the delays. Various debt cancellations and loans have been prescribed by the World Bank (loan of $170 million), Paris Club (aid of $630 million), and the United States (aid of $20 million). Inflation stood at 26.7% in 2002 and at 18.5% in 2004.

The public sector in 2003 represented some 44% of total formal employment. In 2000, Zambia became eligible for $3.8 billion in debt service relief under the International Monetary Fund (IMF)/World Bank Heavily Indebted Poor Countries (HIPC) initiative. In July 2005, the world's eight leading industrialized nations (G8) agreed to provide further debt relief for poor countries including Zambia. The additional relief for Zambia would cut around $2.8 billion and combining this with the $3.9 billion debt write-off package agreed under the heavily indebted poor countries (HIPC) initiative, Zambia's debt burden would decline to just $300 million by mid-2006. This comes as a direct result of the government's fiscal austerity measures which had finally paid off through the two debt cancellations which is likely to renew confidence of donors and investors in the country's economic policies.

In 2003, the government indicated it would take measures to privatize the Zambia National Commercial Bank and the national telephone and electricity utilities. In 2005, the Zambia Privatisation Agency (ZPA) invited bids for 49% government shareholding in the Zambia National Commercial Bank with management rights. The closing date for submission of bids was 13 September 2005 with bids received from three entities. In addition to undertaking a relatively ambitious privatization program, Zambia in the early 2000s was implementing trade and exchange liberalization, and the liberalization of agricultural policies.

SOCIAL DEVELOPMENT

A social insurance system provides benefits to most employed persons. Coverage includes old age pensions, permanent disability benefits, and survivorship payments. Medical care is available to all citizens in government facilities. Workers' compensation is funded totally by the employer. A funeral grant is also provided.

A national provident fund requires employers and employees to make contributions toward a worker's retirement at ages 50–55. This program covers employed persons, including domestic servants in urban areas, and agricultural workers. The lump sum payment is equivalent to contributions plus interest. Maternity leave of 90 days plus a maternity grant for each birth are provided to working women. Medical benefits are available to all citizens in government run facilities and rural health clinics. Employers are required to fund work injury insurance for all employees.

Domestic violence against women is a widespread problem. Police are hesitant to interfere, although in 2004 the government formed a sex crimes unit to address the issue. Women have full legal rights under law, but customs discriminate against women in areas of inheritance, property ownership, and marriage. Sex-based discrimination in education and employment is pervasive. Women are underrepresented in senior management positions in the private sector and in high-level government positions. However, a growing number of women can be found in local government. Child welfare is a serious concern; there were approximately one million orphans under the age of 15 in 2004, mostly attributable to the deaths of parents from AIDS.

Human rights abuses, including beatings and even the killing of persons in police custody, continue to be reported. A government-created commission is investigating past human rights abuses and some offenders have been punished. However, human rights organizations operate freely in Zambia.

HEALTH

In 1964, responsibility for public health was transferred from the federation to Zambian authorities. Since then, the government has developed a health plan centered on specialist hospitals, with general and regional hospitals dealing with less complicated cases. At a lower level, district hospitals treat common medical and surgical cases. Rural health centers and clinics with outpatient facilities have been established throughout the country. Services to Zambian nationals are free at the rural health centers and clinics and at hospitals at the large urban centers. Due to government spending restrictions, the public health care sector has suffered from a severe shortage of doctors, medicine, and medical equipment and supplies. Health indicators have suffered since the advent of the AIDS epidemic, with earlier improvements reversed. For example, average life expectancy, which has been declining since 1984, was down to 39.70 years in 2005.

The government records indicated nine hospitals and a few small outpatient clinics. Zambia produces locally 25% of the pharmaceuticals it consumes. As of 2004, there were an estimated 7 physicians and 113 nurses per 100,000 people. Total health care expenditure was estimated at 6.9% of GDP.

Malaria and tuberculosis are major health problems, and hookworm and schistosomiasis afflict a large proportion of the population. Cholera remains prevalent. In addition, the HIV/AIDS epidemic has increased the incidence of tuberculosis. Other commonly reported diseases in Zambia were diarrheal diseases, leprosy, and measles.

Zambia has one of the highest rates of HIV infection, even in hard-hit sub-Saharan Africa. The HIV/AIDS prevalence was 16.50 per 100 adults in 2003. As of 2004, there were approximately 920,000 people living with HIV/AIDS in the country. There were an estimated 89,000 deaths from AIDS in 2003. It has been estimated that 500,000–1,000,000 Zambian children have lost both parents to AIDS.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 41 and 21.9 per 1,000 people. About 26% of Zambian married women used contraceptives. The maternal mortality rate was 649 per 100,000 live births. It was estimated that 32 of every 100 school-age children suffered from goiter. Children up to one year old were immunized against tuberculosis, 81%; diphtheria, pertussis, and tetanus, 70%; polio, 70%; and measles, 69%. The infant mortality rate in 2005 was 88.29 per 1,000 live births. In the same year, 42% of the all children under five were malnourished.

HOUSING

Widespread instances of overcrowding and slum growth have for many years focused government attention on urban housing problems. Local authorities have statutory responsibility for housing and housing management. The Zambia National Building Society makes loans to local agencies for the financing of approved schemes and the National Housing Authority established a special fund to support self-help projects for low-income earners. One program gives land ownership to certain residents in recognized informal settlements, thus giving them legal status to build more permanent structures. Mining companies have constructed townships for the families of African workers in the Copperbelt.

The 2000 census counted 1,768,287 housing units nationwide. A 2002/2003 housing survey stated that 66% of all dwellings were defined as traditional structures; these use mud bricks, thatch, straw, and grass as primary building materials. Traditional dwellings accounted for 91% of the housing stock in rural areas and 16% in urban areas. About 34% of the population lived in modern or conventional housing structures. Conventional structures accounted for 86% of the housing stock in Lusaka province and 72% of housing in Copperbelt. About 78% of all dwellings were owner occupied. About 54% of all households lived in units of only one bedroom. Only 50% of all households had access to a source of clean drinking water, 18% had electricity for lighting, and over 50% of all households used pit latrines. The average household size was about five members.

EDUCATION

Most of the nation's schools are operated by local authorities or by missions and are aided by the central government. A small number of schools are directly administered by the government. Primary education lasts for seven years and is compulsory. Secondary education lasts for five years: two years of junior and three years of senior school. Students must pass an entrance exam to enter senior secondary school.

Primary school enrollment in 2003 was estimated at about 68% of age-eligible students. The same year, secondary school enrollment was about 23% of age-eligible students. It is estimated that about 69% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 43:1 in 2003; the ratio for secondary school was about 34:1.

The University of Zambia was established in 1965, and the Copperbelt University opened in 1986. Other institutions of higher learning include technical colleges and a two-year college of agriculture. In 2001, it was estimated that about 2% of the tertiary age population were enrolled in tertiary education programs. The adult literacy rate for 2004 was estimated at about 67.9%, with 76.1% for men and 59.7% for women.

As of 2003, public expenditure on education was estimated at 2% of GDP, or 17.6% of total government expenditures.

LIBRARIES AND MUSEUMS

The Zambia Library Service maintains 900 library centers, six regional libraries, six branch libraries, and a central library with 500,000 volumes. The Lusaka Urban District Libraries has 145,000 volumes, and the Zambesi District Library has 120,000. The National Archives of Zambia maintains a library of about 70,000 volumes. The University of Zambia has holdings of more than 2.5 million books.

Zambia's museums include the National Museum, located in Livingstone. It has displays on natural history, archaeology, ethnography, recent history, African art, metallurgy, and memorabilia relating to David Livingstone. The Eastern Cataract Field Museum near Victoria Falls concentrates on archaeology and geology, including illustrations of the formation of the falls and the Stone Age sequence in the area. Lusaka has the Art Center and the Military and Police Museum of Zambia. The Moto Moto Museum in Mbala (founded in 1974) exhibits ethnography and history materials. The Copperbelt Museum at Ndola exhibits geological and historical items as well as ethnic art.

MEDIA

The central government is responsible for postal and telecommunication services. A direct radiotelegraph circuit has been established between Lusaka and London, and direct telephone links are in operation to all neighboring countries. In 2003, there were an estimated eight mainline telephones for every 1,000 people; about 11,600 people were on a waiting list for telephone service installation. The same year, there were approximately 22 mobile phones in use for every 1,000 people.

The Zambia Broadcasting Service, which provides radio programs in English and seven local languages, and Zambian Television are government owned and operated. As of 2001, there were also several church-sponsored radio stations, two private commercial stations and three community stations. The same year there were 19 AM and 5 FM radio stations. There were nine television stations in 2002. In 2003, there were an estimated 179 radios and 51 television sets for every 1,000 people. The same year, there were 8.5 personal computers for every 1,000 people and six of every 1,000 people had access to the Internet. There were two secure Internet servers in the country in 2004.

There are a number of privately-owned newspapers in the country. However, the publications with the largest circulations tend to be politically affiliated. There are three major daily newspapers: the UNIP-owned Times of Zambia, founded in Ndola in 1943 and with an estimated 2002 daily circulation of 32,100; the government-owned Zambia Daily Mail, published in Lusaka, with a circulation of 40,000; and The Post, an independent English-language paper founded in 1991, with a circulation of 40,000.

The constitution provides for free expression, including a free press; however the penal code lists several exceptions and justifies government restrictions and censorship.

ORGANIZATIONS

Professional and learned societies include the Wildlife Conservation Society of Zambia, the Zambia Library Association, and the Zambia Medical Association, all in Lusaka. Business groups include chambers of commerce in the major towns. The Zambia Association of Chambers of Commerce and Industry is located in Lusaka. The Consumer Protective Association of Zambia is also active.

National youth organizations include the Catholic Agricultural and Rural Youth Movement, Girl Guides Association of Zambia, YMCA/YWCA, United National Independence Party Youth League, Zambian Youth League, Girl Guides, and the Zambia Scouts Association. There are sports associations promoting amateur competition for athletes of all ages in a wide variety of pastimes, including softball, baseball, squash, lawn tennis, badminton, and weightlifting.

National women's organizations include the National Women's Lobby Group, the Society For Women and AIDS in Zambia, Women for Change, and the Women in Development Department. Among service organizations are the Lions, Rotary, Junior Chamber of Commerce (Jaycees), Professional Women's Club, and Women's Institute. There are national chapters of the Red Cross Society, Habitat for Humanity, the Society of St. Vincent de Paul, UNICEF, and Amnesty International.

TOURISM, TRAVEL, AND RECREATION

One of the most impressive tourist attractions in Zambia is Mosioa-Tunya ("the smoke that thunders")—Victoria Falls. In 1972, a national park system created 17 parks covering 8% of the entire country. The Kafue National Park, one of the largest in Africa, with 22,500 sq km (8,700 sq mi) of bush, forest, and plain, is well-served with tourist facilities. South Luangwa National Park is another outstanding wildlife area. Tourism in Zambia has maintained a steady increase since the mid-1970s. A valid passport is required to enter Zambia. Most travelers need a visa. Proof of vaccination against yellow fever is required if traveling from an infected country.

In 2003, about 578,000 visitors arrived in Zambia, mostly from other African countries. There were 5,202 hotel rooms with 8,774 beds and an occupancy rate of 53%. Tourism expenditure receipts totaled $149 million that year.

According to 2005 US Department of State estimates, the cost of staying in Lusaka was $171 per day. Expenses in other areas ranged from $51 to $213 per day.

FAMOUS ZAMBIANS

Kenneth David Kaunda (b.1924) was Zambia's president from independence in 1964 until 1991. Frederick J.T. Chiluba (b.1943) ousted Kaunda in 1991 in Zambia's first free elections and was re-elected in 1996; he served until 2002. Levy Patrick Mwanawasa (b.1948) is the third president of Zambia (since 2002).

Nalumino Mundia (1927–88), long prominent in Zambian political affairs, was prime minister 1981–85, when he became ambassador to the United States.

DEPENDENCIES

Zambia has no territories or colonies.

BIBLIOGRAPHY

Grotpeter, John J. Historical Dictionary of Zambia. 2nd ed. Lanham, Md.: Scarecrow, 1995.

Guest, Emma. Children of AIDS: Africa's Orphan Crisis. Sterling, Va.: Pluto Press, 2001.

Hope, Kempe R. AIDS and Development in Africa: A Social Science Perspective. New York: Haworth Press, 1999.

Kaunda, Kenneth. Letter to My Children. London: Longman, 1963.

McElrath, Karen (ed.). HIV and AIDS: A Global View. Westport, Conn.: Greenwood Press, 2002.

Mutale, Emmanuel. The Management of Urban Development in Zambia. Burlington, Vt.: Ashgate, 2004.

Posner, Daniel N. Institutions and Ethnic Politics in Africa. New York: Cambridge University Press, 2005.

Rotberg, Robert I. Ending Autocracy, Enabling Democracy: The Tribulations of Southern Africa, 1960–2000. Cambridge, Mass.: World Peace Foundation, 2002.

Zambian Women Entrepreneurs: Going for Growth. Lusaka, Zambia: ILO Office: Gender in Development Division (GIDD), International Labour Office, 2003.

Zeilig, Leo and David Seddon. A Political and Economic Dictionary of Africa. Philadelphia: Routledge/Taylor and Francis, 2005.