The Zambian economy in a nutshell

Zambia is the world's leading cobalt producer and Africa's leading copper producer. Diversification of farm production and development of tourism have limited the economy's vulnerability to external shocks. The country enjoys the backing of the international financial community, which has translated into substantial foreign debt relief. Zambia's stable multiparty system and good relations with neighbouring countries enhance its attractiveness to foreign investors. Weaknesses The Zambian economy continues to live off mining export revenues, vulnerable to copper price volatility. The mining economy has struggled to spread the benefits throughout the productive fabric with the resulting inadequate redistribution of wealth generating growing social tensions. Zambia's landlocked condition handicaps trade with inadequate transport infrastructure tending to exacerbate costs. The business environment suffers from major shortcomings. Country rating A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.