Various Barriers Zambia Faces in Modernizing Its Economy

One major obstacle to zambia’s development is the crippling debt overhang. It has not been possible to speak of any significant measure of development for as long as Africans have had to allocate a lot of their lean resources to debt payments and servicing.

Some 85% of Zambians work the country's relatively infertile soil as subsistence farmers; commercial agriculture is mostly confined to a small number of large farms. The leading crops are corn, sorghum, rice, peanuts, sunflower seeds, tobacco, sugarcane, and cotton. Cattle and other livestock are raised. There is a small fishing industry.

The mining and refining of copper constitutes by far the largest industry in the country and is concentrated in the cities of the Copperbelt. Cobalt, zinc, lead, gold, silver, gemstones, and coal are also mined. Manufactures include food products, beverages, textiles, construction materials, chemicals, and fertilizer. Most of Zambia's energy is supplied by hydroelectric plants.

Despite progress in privatization and budgetary reform Zambia's economy has a long way to go. Inflation while slowing somewhat continues to be a major concern to the CHILUBA government. Zambia's copper mining sector which accounts for over 80% of the nation's foreign currency intake is struggling. Production rates are down as are world copper prices. Aid cuts by Zambia's donors arising out of concern for the November 1996 flawed election will severely damage Zambia's economic prospects. Urged by the World Bank Zambia has embarked on a privatization program which is to include the all-important copper industry.

Copper accounts for over 80% of foreign exchange. The principal imports are machinery, transport equipment, consumer goods, petroleum and petroleum products, and foodstuffs. The leading trade partners are the European Union countries, South Africa, Japan, and the United States. Zambia is a member of the Southern African Development Community.

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