Economy of Zambia

The wealth of Zambia is largely based on mining in the copper belt in the western region of the country. The copper mines of Zambia are among the richest in the world, and copper accounts for over 80% of Zambia's foreign exchange. Zambia is also among the world's largest producers of cobalt.

World copper prices collapsed in 1975, damaging the Zambian economy severely. The government made up for falling revenue by increased borrowing. Today over 70% of Zambians live in poverty and it is among the world's poorest nations.

Zambia is one of Sub-Saharan Africa's most highly urbanized countries. Almost half of the Zambia's 10 million inhabitants live in a few urban zones while rural areas are underpopulated. Unemployment and underemployment are problems. HIV/AIDS is a huge challenge.

Manufacturing, mining, and construction employ only 8 percent of the labor force but account for 27 percent of the gross domestic product (GDP). About 80 percent of Zambia's working population is engaged in agriculture, mostly subsistence farming. The main crops farmed in Zambia are corn, sorghum, rice, tobacco, sugarcane and cotton.

Although there have been improvements in the world copper market recently, the Zambian Government is pursuing an economic diversification program to reduce the economy's reliance on the copper industry. This initiative seeks to exploit Zambia's rich resources by promoting agriculture, tourism, gemstone mining, and hydro power.

Tourism is possibly one of Zambia's least developed resources, yet it could hold the most potential for sustainable growth. Zambia still has large areas of unspoilt wilderness and has the benefit of being able to learn from the mistakes of their neighbours. Tourism in Zambia has been growing steadily for the last ten years.

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