Country Risk Analysis - Zambia

Business Government & Society

Individual Essay

Country Risk Analysis - Zambia

Lecturers: | Mills Soko, John Luiz, Ralph Hamann & Jon Hanks |

Exam number: | MOD 350 |

Date: | 25 Jun 2012 |

Programme: | MBA Modular 2012/13 |

* Abstract

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 in 2011 (World Bank, 2012). 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.

Keywords: Zambia ,risk, opportunity

Figure 1: Map of Zambia (African Development Bank, 2012)

Table of Contents

Abstract 2

1. INTRODUCTION 4

2. METHODOLOGY 5

3. PESTEL ANALYSIS 6

3.1. Political 6

3.2. Economic 7

3.3. Social 8

3.4. Technological/ Infrastructure 9

3.5. Environmental 10

3.6. Legislative 11

4. ANALYSIS OF FINDINGS 12

5. RECOMMENDATIONS 13

6. CONCLUSION 14

7. BIBLIOGRAPHY 15

APPENDICES 16

Appendix A: Zambia Socio-Economic Data 16

Appendix B: Zambian Political Structure 17

Appendix C: SWOT Analysis 18

Appendix D: Extracts from the World Bank’s IFC Doing Business 2012 Report 20

Appendix E: Credit Risk Table 21

Appendix F: Zambia’s PESTAL Risk Rating 22

INTRODUCTION

The purpose of this essay is to provide a detailed country risk analysis of Zambia’s current business environment and provide insights into the political, economic, social,...