Zambia
Table of Contents
Zambia, officially the Republic of Zambia, is a land-locked country, situated at the centre of the Southern African region. Its location provides a significant opportunity for linking the countries in the region to foster meaningful cooperation and trade. Zambia was classified as a lower middle-income country by the World Bank. The country’s goal is to reach a middle-income status by year 2030. Zambia has the potential to grow into one of the richest countries in Africa, due to its abundance of natural resources, particularly copper and cobalt, as well as its great agricultural potential, with abundant water resources. Zambia has a robust real GDP growth and there are significant opportunities for companies looking to invest in the country, however these opportunities need to be carefully measured against the respective risk exposures.
Zambia Country Information (Source: OECD) | |
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Population | 4.190 million (2012) |
GDP | $20.59 billion (2012) |
Income Level | Lower Middle |
Life Expectancy | 57 |
Improved Water Sources | 59% |
1 . PEST Analysis of Zambia
Political environment
Politics in Zambia take place in a framework of a presidential representative democratic republic, whereby the President of Zambia is both the head of state and head of government in a pluriform multi-party system. The government exercises executive power, while legislative power is vested in both the government and parliament. Zambia became a republic immediately upon attaining independence in October 1964. Since 2011, Zambia's president has been Michael Sata.
Economical Environment
The Zambian economy has experienced high and sustained economic of the last decade that was not realised in the first 30 years of its independence. The economic growth rate averaged 5% per annum during the last decade. Unlike in the past when growth was driven by dependence on mineral resources, particularly copper this time around the main drivers include construction and agriculture. Government policies have given direction and provided support for economic performance. One of the policy decisions that has been credited with economic performance relates to privatisation and liberalisation of most of the Zambian economy. Privatisation of the mines in the late 1990s removed a major leakage of government resources. The liberalisation of the economy in the 1990s also facilitated foreign direct investment (FDI) into the mining sector. Other sectors and sub-sectors like agro-processing, construction and services also benefited from foreign injections into the economy.
Social Environment
Zambia is a land-locked country in Southern African covering a total area of about 753 000 km2. Zambia shares borders with eight other countries. The Democratic Republic of Congo (DRC) to the north, Tanzania to the northeast, Malawi to the east, Mozambique to the south east, Zimbabwe to the south, Botswana and Namibia to the south west and Angola to the west. The population is estimated to be about 13 million. The country is endowed with natural resources, such as copper and water resources. Zambia gained its independence in 1964 from the British in the 1960s. Since then until the late eighties Zambia’s economy was controlled by the government and was largely dependent on copper mining. Zambia is officially a Christian nation according to the 1996 constitution, but a wide variety of religious traditions exist. Traditional religious thoughts blend easily with Christian beliefs in many of the country's syncretic churches. However, like many sub Saharan African countries it is a the low-middle income and faces the socio-economic challenges ranging from poverty, poor health conditions, lack of basic amenities, high unemployment rates and others.
Technological Environment
In Zambia, the education system consists of both government and private schools. Historically, the private school system began largely as a result of Christian mission efforts during the late 19th and early 20th centuries. In schools, a student may initially receive two levels of education; basic education that is 1 to 9, and upper secondary, that is 10 to 12. Some schools provide a basic education covering years 1 to 9, as year 9 is considered to be a decent level of education for the majority of children. However, tuition is only free up to year 7, and UNESCO estimated that 80% of children of primary school age in 2002 were enrolled. In 2003, the adult literacy rate was estimated to be 80.6%. Zambia has a firs OLPC - One Laptop Per Child - deployment at the new Zambian library that is in traditional Zambian Style. In 2009, Zambia generated 10.3 Twh and has been rated high in use of both Solar power and Hydroelectricity.
2 . Future Trends in Zambia
Zambia faces a generalised HIV epidemic, with an estimated prevalence rate of 13.5% among adults that is between 15 to 49 in 2009. However, HIV incidence in Zambia has declined by more than 25% from 2001 to 2010, an indication that the epidemic appears to be declining.
Market Research Report Title | Published | Pages | Price |
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Professional Insurance Corp Zambia PLC - Strategy, SWOT and Corporate Finance Report | Jan 30 2023 | 22 | USD 175.00 |
Nico Insurance Zambia Limited - Strategy, SWOT and Corporate Finance Report | Nov 30 2022 | 22 | USD 175.00 |