Exports and infrastructure could boost Zambia's growth

With an economy that has grown at an average of 6% annually over the last decade, Zambia is among the 10 fastest-growing economies of Africa. Diversification in exports and development of infrastructure is key to the country’s ongoing economic transformation. These were the key findings of the African Development Effectiveness Review 2013 for the country by the African Development Bank (AfDB). The review was launched in Lusaka on April 2 this year by Zondo Thomas Sakala, AfDB operations vice president in charge of country and regional programmes. “Zambia’s strong economic performance is due to a combination of factors: improved macroeconomic management; high prices for commodities, especially copper; economic liberalisation; and more effective policy implementation. Copper accounts for a sizable proportion of the economy, generating more than two thirds of the country’s export earnings,” noted Sakala in his foreword to the 50-page report. He added that to reduce Zambia’s exposure to fluctuating copper prices, it was essential for the country to diversify its economy into other sectors. “There are already good signs of diversification, with nontraditional exports – gemstones, copper wire, cement, sugar, maize and other agricultural products – becoming more prominent in regional markets,” said Sakala. He said the country also needed to push ahead with its efforts to transform and diversify its local production capacity. According to the report, enhancing regional and national infrastructure is key to Zambia’s transformation, enabling Zambian producers to access larger markets and become more competitive. Other priorities include continuing progress on improving the business environment and improving access to transport, energy and water. “The government has made a strong commitment in these areas. It has developed ambitious plans for public infrastructure investment between 2013 and 2017. Its US$5.4-million ‘Link 8000 Road Project’, for example, will build or upgrade over 8 000 km of roads and bridges across the country, reducing travel costs and promoting economic growth poles in rural areas,” Sakala said.