Political and Economic Stability

Zambian politics are shaped by the country’s history as a one-party state under the socialist rule of former President Kenneth Kaunda (1972-1991), the drastic reform period during Frederick Chiluba’s rule (1991-2001) and more recently the 2011 elections which ended twenty years of the Movement for Multi Party Democracy (MMD) rule.

On September 20, 2011, Zambia set a record in the southern Africa region by conducting peaceful and credible elections that brought to power an opposition party for the second time since independence in 1964. President Michael Sata has already made a mark on policy and legislation. Key elements of his election platform included a renewed crackdown on corruption and an insistence that economic activity, particularly in the all-important mining sector, provide sufficient benefits to Zambians.

Zambia’s economy has experienced strong growth in recent years, with real GDP growth in 2005-10 more than 6% per year. In 2005, Zambia qualified for debt relief under the Highly Indebted Poor Country Initiative, consisting of approximately US$6 billion in debt relief. Poverty remains a significant problem in Zambia, despite a stronger economy.

Zambia’s dependency on copper makes it vulnerable to depressed commodity prices, but record high copper prices and a bumper maize crop in 2010 helped Zambia rebound quickly from the world economic slowdown that began in 2008.
A high birth rate, relatively high HIV/AIDS burden, and market distorting agricultural policies have meant that Zambia’s economic growth has not dramatically decreased the stubbornly high poverty rates.

In terms of security, the Department of Foreign Affairs and International Trade (DFAIT) recommends that Canadians exercise a high degree of caution when traveling in Zambia.  There are no official warnings for travelling in Zambia. Please refer to the DFAIT Travel Report for Zambia: http://www.voyage.gc.ca/countries_pays/report_rapport-eng.asp?id=333000

Trade Opportunities

Zambia export plays an important role in the economy of the country. The primary product of Zambia export is copper and accounts for 50% of the total exports. Other main major exportable commodities include: cobalt, electricity and tobacco. There are also many important importable commodities for the country, including petroleum products, electricity, fertilizer, and machines and transportation equipment.

Zambia’s most important trade partners are Switzerland, South Africa China and Democratic Republic of Congo.

Canada-Zambia economic and trade relations are characterized by trade of high value-added products, good performance of trade in the services sector, and an expanded partnership in the natural resources sector. Zambia’s exports to Canada have not been affected by the global financial crisis and since 2007; imports from Zambia have showed steady increases.

Zambia’s vast expanses of rich undeveloped land with free-flowing and easily accessible fresh water provide extensive potential for agriculture production of cut flowers, wheat, cotton, soybeans, tobacco and sugar; poultry; fisheries; leather and leather products; and agro-processing and ranching (livestock). There are significant opportunities for Canadian importers who wish to explore business opportunities in this agro-food sector.

Upcoming Trade Shows

Zambia International Trade Fair
June 27th to July 3rd, 2012
http://zitf.org.zm/

Contact Information

High Commission of the Republic of Zambia in Canada
151 Slater Street, Suite 205
Ottawa, ON
Canada    K1P 5H3
Tel:613-232-4400
FAX: 613-232-4410
http://www.zambiahighcommission.ca/contact.php

Zambia Development Agency
http://www.zda.org.zm/zda/default.aspx