STEADY PROGRESS
Scenically beautiful, peaceful, and endowed with abundant natural resources, Zambia is using its attributes to forge a path to prosperity. One of the continent’s most promising emerging economies, the country’s forward-looking government is dedicated to economic diversification and social development, backing Zambia in its quest to become an African leader.

Economic and politicial reform have been high on the Zambian government’s agenda since the election of Levy P. Mwanawasa as President in 2001.

Leading the Movement for Multi-Party Democracy (MMD), which has been in power for ten years, Mr. Mwanawasa is committed to progress. As the head of the dubbed “New Deal” government, the President has launched a drive to diversify the economy away from its dependency on copper mining. Agriculture, agribusiness, and tourism are the most important sectors for development within the state’s extensive economic reform programs, which are supported by the World Bank and the IMF.

“Diversification would be very difficult if the people were not willing to respond to our initiatives,” says Mr. Mwanawasa. “But fortunately for us, our people have responded very positively.”

Foreign investment is essential to the future success of Zambia, and the President is determined to promote the country’s wealth of investment opportunities.

“Zambia is a place that offers vast opportunities to everyone prepared to go there. At the same time these openings provide benefits to our people, and that is vital.”

PRESIDENT Levy P. Mwanawasa

The Zambian government is particularly interested in attracting U.S. investment. Zambia benefits from financial support from USAID, which has assisted with agricultural development. The trade agreement under the Africa Growth and Opportunity Act between Africa and the U.S. is also providing a boost to bilateral trade.
Made law in 2000, it provides progressive sub-Saharan countries with liberal access to the U.S. market. To qualify, nations must demonstrate that they are committed to a number of forward-looking approaches, from establishing market-based economies to protecting human rights.

Under the initiative, African states are provided with technical expertise and credit. In turn, U.S. business is bolstered through encouraging economic and commercial reform, in addition to creating stronger markets and more effective partners for American firms.
President Mwanawasa hopes that the AGOA agreement will help promote exports from strong sectors such as agriculture.

“We want to take advantage of markets in the United States through the AGOA initiative. We want to export cotton and other goods, then we can set up agri-businesses and agriculture-based industries.”
Zambia has emerged as an open country, with a private sector-led liberal economy - the nation’s privatization program was cited by the Stanford Research Institute as a model for other African countries, and the government is committed to ensuring that the transformation benefits the population.

Privatization has been the top priority in recent years; the government is now directing resources toward reducing poverty levels, ensuring macroeconomic stability, and improving government accountability and transparency. The latter goal was a catalyst for a cabinet reshuffle in May of this year. Mr. Mwanawasa says the reorganization was prompted by a need for change and was a move towards reducing tension between political parties. “Most importantly, these changes were made because we intended to address certain distortions brought about by corruption and greed among some of our leaders,” he explains.

A liberal economy will allow the government to devote more resources to improving the quality of life for all Zambians

To achieve its ultimate goals, Zambia must tackle its health problems, particularly the HIV/AIDS pandemic. From 1999-2002, USAID developed the Zambia Integrated Health Program, in partnership with the government, to address the country’s major health issues. A significant proportion of Zambia’s current budget has been allocated to buying essential drugs, including anti-retroviral therapy, to reduce the rate of HIV/AIDS infection. The state has invested heavily in education programs to help combat the spread of HIV and AIDS. The National Aids Council implements measures to fight the disease, while the private sector, NGOs, donors, and local communities ar also helping.

Mr. Mwanawasa is confident that the government’s ambitious initiatives will translate into a brighter future for Zambia. “I would like to see Zambia as a leader in reducing poverty and unemployment. I would like Zambia to be a leader in increasing manufacturing and a leader in agricultural production. I would like, finally, to see corruption eradicated.”