High Poverty Levels in the Face of Sustainable Economic Growth in Zambia
The highlights of this report are mainly as follows: Unprecedented growth was recorded in Zambia for more than a decade after recording an average growth rate of 7.2 % per annum. Growth over this period was achieved by a combination of factors which include: Economic Reforms, which include liberalization of the entire economy which in turn led to trade liberalization, liberalizing of the financial sector and privatization of state owned enterprises. Favorable Commodity Prices: The consistent rise in the prices of copper over the period under review, led to a natural boom in the economy. Since copper mining is the major source of government revenue, this meant government had enough resources to invest in other sectors of the economy such as human development. Business Climate: up to now Zambia is ranked among the top 10 countries in Sub-Saharan Africa on the Ease of Doing Business (EDB) World Bank rankings. Indeed the reforms of the 1990s have gone a long way in transforming the business climate in Zambia making it easy for businesses to thrive and contribute to economic growth. Foreign Direct Investment: the 1990s reforms, the booming of copper prices on the international market plus the good business climate has turned Zambia into one of the world’s favorite investment destinations. FDI grew significantly over the period under review and continues to grow to date contributing to Zambia’s economic growth through job creation.