DUNN embassy: corner of Independence and United Nations Avenues
mailing address: P. O. Box 31617, Lusaka telephone: [260] (1) 250-955 FAX:
[260] (1) 252-225

Flag description: green with a panel of three vertical bands of red
(hoist side), black, and orange below a soaring orange eagle, on the
outer edge of the flag

Economy Zambia

Economy - overview: Despite progress in privatization and budgetary
reform, Zambia's economy has a long way to go. Privatization of
government-owned copper mines relieved the government from covering
mammoth losses generated by the industry and greatly improved the
chances for copper mining to return to profitability and spur economic
growth. However, low mineral prices have slowed the benefits from
privatizing the mines and reduced incentives for further private
investment in the sector. In late 2000, Zambia was determined to be
eligible for debt relief under the Heavily Indebted Poor Countries
(HIPC) initiative, but Zambia has not yet finalized its Poverty Reduction
Strategy paper. Unemployment rates remain high, but GDP growth should
continue at about 4%. Inflation should remain close to 20%.

GDP: purchasing power parity - $8.5 billion (2001 est.)

GDP - real growth rate: 3.9% (2001 est.)

GDP - per capita: purchasing power parity - $870 (2001 est.)

GDP - composition by sector: agriculture: 24% industry: 25% services:
51% (2000)

Population below poverty line: 86% (1993 est.)

Household income or consumption by percentage share: lowest 10%: 1.1%
highest 10%: 41% (1998)

Distribution of family income - Gini index: 52.6 (1998)

Inflation rate (consumer prices): 21.5% (2001)

Labor force: 3.4 million

Labor force - by occupation: agriculture 85%, industry 6%, services 9%

Unemployment rate: 50% (2000 est.)

Budget: revenues: $1.2 billion expenditures: $1.25 billion, including
capital expenditures of $NA (2001 est.)

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

Industrial production growth rate: 5.1% (2001 est.)

Electricity - production: 7.822 billion kWh (2000)

Electricity - production by source: fossil fuel: 0.51% hydro: 99.49%
other: 0% (2000) nuclear: 0%

Electricity - consumption: 5.838 billion kWh (2000)

Electricity - exports: 1.536 billion kWh (2000)

Electricity - imports: 100 million kWh (2000)

Agriculture - products: corn, sorghum, rice, peanuts,