Zambia

Location : Southern Africa, east of Angola. Landlocked.

Capital : Lusaka

Languages : English (official), major vernaculars - Bemba, Kaonda, Lozi, Lunda, Luvale, Nyanja, Tonga, and about 70 other indigenous languages

Area : 752,614 sq km

Land Use : arable land: 7.08%; permanent crops: 0.03%; other: 92.9% (2001)

Natural Resources : copper, cobalt, zinc, lead, coal, emeralds, gold, silver, uranium, hydropower

Population : 11,261,795 (July 2005 est.).

Labour force : 4.63 million (2004 est.)

Labour force participation rate : 41.11% of population (2004 est.)

Population below poverty line : 86% (1993)

International Organisation participation : ACP, AFDB, AU, C, FAO, G-77, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, ISO (correspondent), ITU, MIGA, MONUC, NAM, ONUB, OPCW, PCA, SADC, UN, UNAMSIL, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNMIK, UNMIL, UNOCI, UPU, WCL, WCO, WHO, WIPO, WMO, WToO, WTO 

GDP per capita : U$900 (2004 est.)

GDP Real Growth Rate : 4.6% (2004 est.)

GDP sectoral composition : agriculture: 14.9%; industry: 28.9%; services: 56.1% (2004 est.)

Investment (gross fixed): 41.4% of GDP (2004 est.)

Industries: copper mining and processing, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture

Industrial production growth rate : 6.9% (2004 est.) 

Agriculture - products : corn, sorghum, rice, peanuts, sunflower seed, vegetables, flowers, tobacco, cotton, sugarcane, cassava (tapioca); cattle, goats, pigs, poultry, milk, eggs, hides; coffee

Exports : U$1.548 billion f.o.b. (2004 est.)

Exports - commodities : copper/cobalt 64%, cobalt, electricity, tobacco, flowers, cotton

Exports - partners : Tanzania 14.1%, South Africa 13.2%, China 9.1%, Japan 7.9%, Thailand 7.9%, Switzerland 7.3%, Belgium 6.7%, Malaysia 4% (2004)

Imports : U$1.519 billion f.o.b. (2004 est.)

Imports - commodities : machinery, transportation equipment, petroleum products, electricity, fertilizer; foodstuffs, clothing

Imports - partners : South Africa 50.3%, Zimbabwe 13.2%, UAE 5.3% (2004)

QUALITATIVE TRADE PROFILE

Trade and investment policies still emphasize horizontal diversification of non-traditional exports (any export other than metals, including gemstones, and export crops such as horticultural and floricultural products, coffee, cotton, textiles, and tobacco), in order to reduce Zambia's dependence on metals, in particular copper, and counter falls in their production and fluctuations of their prices.

The simple average rate of its MFN tariff was 14% in 2002. The tariff, which is Zambia's main trade-policy instrument, still comprises four bands: zero, 5%, 15% and 25%. The modal rate, i.e. the most common, is 15% and applies to some 33% of all tariff lines. The maximum rate of 25% applies to consumer and "non-essential" goods. Negative tariff escalation from the first to the second stages of processing has led to widespread duty and tax concessions.

In addition to the tariff, Zambia also collects a 17.5% value-added tax on goods and services, and excise duties on selected goods, whether imported or locally produced. In the Uruguay Round, like other WTO Members, Zambia bound tariffs on all agricultural products; some 97% of tariff lines for these products were bound at a ceiling rate of 125% and the others at ceiling rates ranging from 45% to 60%. Tariffs on only 3.6% of lines for non-agricultural products were bound; ceiling rates range from 30% to 60%, with a simple average bound rate of 42%. Other duties and charges on all these products were bound at zero. In principle, customs valuation has been based on the transaction value since January 2000.  

INSTITUTIONAL FRAMEWORK 

The Ministry of Commerce, Trade and Industry (MCTI) formulates and implements Zambia's trade policies. Depending on the nature of the issues, the MCTI consults with relevant Ministries and other institutions. Pre-budget inter-ministerial consultations are held on tariff changes for fiscal purposes. Tariff suspensions and exemptions are generally granted, under Parliamentary authority, by the Minister of Finance incentives in the mining and quarrying sector are granted by the Minister of Mines.

Ministries, including the MCTI, consult with the private sector through various means, such as workshops on policy, and sensitization campaign sessions to which various stakeholders are invited (e.g. the Zambia Association of Chambers of Commerce and Industry, the Zambia Association of Manufacturers, the Zambia Congress of Trade Unions, the Textile Producers Association of Zambia, and the Zambia National Farmers Union). There are neither reviews nor assessment of trade policies at the national level.

TRADE AGREEMENTS

Bilateral

Zambia is negotiating bilateral trade agreements with Botswana, the Democratic Republic of the Congo, Mozambique, Namibia, Tanzania, and Zimbabwe. Zambia is a beneficiary under the African Growth and Opportunity Act (AGOA) and EU 'Everything-but-Arms' initiative as well as under many other GSP schemes.

Regional

Zambia is a member of the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC) and the Organization of African Unity (OAU). Zambia is currently negotiating an Economic Partnership Agreement with the EU through the ESA configuration.

Multilateral

Zambia is a member of the WTO and grants MFN treatment to all its trading partners.  

NEED PRIORITIES  

Specific areas of need are: (i) implementation of legislation; (ii) financial and administrative means to implement WTO Agreements; (iii) notification requirements; (iv) training of government officials on WTO matters; (v) capacity building for negotiations; and (vi) reference centre.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.