BACKGROUND NOTES ON ZAMBIA

Prepared by the U. S. Embassy, Lusaka, Zambia February, 2002

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GEOGRAPHY

Area: 752,614 sq. km. (290,585 sq. mi.); slightly larger than Texas.
Cities: Capital--Lusaka (pop. 1 million).
Other Cities: Kitwe, Ndola, Livingstone, Kabwe.
Terrain: Varies; mostly plateau savanna.
Climate: Generally dry and temperate.

PEOPLE

Nationality: Noun and adjective--Zambian(s). 
Population (2000): 10.2 million.
Annual growth rate:  2.9%.
Ethnic groups: More than 70 tribal groups.
Religions: Christian, indigenous beliefs, Muslim, Hindu.
Languages: English (official), about 70 local languages and dialects, including Bemba, Lozi, Kaounde, Lundu, Luvale, Tonga and Nyanja.
Education: Years compulsory--7.  Attendance--Less than 50% in grades 1-7.  Less than 20% of primary school graduates are admitted to secondary school.  Literacy—78.9%.  
Health: Infant mortality rate--114/1,000.  Life expectancy—37.81 yrs. male; 38.25 yrs. female.
Work force: Agriculture—85%.  Industry and commerce--15%.

Zambia's population comprises more than 70 Bantu-speaking tribes.  Some tribes are small, and only two have enough people to constitute at least 10% of the population.  Most Zambians are subsistence farmers.  The predominant religion is a blend of traditional beliefs and Christianity.

Expatriates, mostly British (about 15,000) or South African, live mainly in Lusaka and in the Copperbelt in northern Zambia, where they are employed in mines and related activities.  Zambia also has a small but economically important Asian population, most of whom are Indians.  The country is 42% urban.

HISTORY

The indigenous hunter-gatherer occupants of Zambia began to be displaced or absorbed by more advanced migrating tribes about 2,000 years ago.  The major waves of Bantu-speaking immigrants began in the 15th century, with the greatest influx between the late 17th and early 19th centuries.   They came primarily from the Luba and Lunda tribes of southern Zaire and northern Angola but were joined in the 19th century by Ngoni peoples from the south.  By the latter part of that century, the various peoples of Zambia were largely established in the areas they currently occupy.

Except for an occasional Portuguese explorer, the area lay untouched by Europeans for centuries.  After the mid-19th century, it was penetrated by Western explorers, missionaries, and traders.  David Livingstone, in 1855, was the first European to see the magnificent waterfalls on the Zambezi River.  He named the falls after Queen Victoria, and the Zambian town near the falls is named after him.

In 1888, Cecil Rhodes, spearheading British commercial and political interests in Central Africa, obtained a mineral rights concession from local chiefs.  In the same year, Northern and Southern Rhodesia (now Zambia and Zimbabwe, respectively) were proclaimed a British sphere of influence.  Southern Rhodesia was annexed formally and granted self-government in 1923, and the administration of Northern Rhodesia was transferred to the British colonial office in 1924 as a protectorate.

In 1953, both Rhodesias were joined with Nyasaland (now Malawi) to form the Federation of Rhodesia and Nyasaland.  Northern Rhodesia was the center of much of the turmoil and crisis that characterized the federation in its last years.  At the core of the controversy were insistent African demands for greater participation in government and European fears of losing political control.

A two-stage election held in October and December 1962 resulted in an African majority in the legislative council and an uneasy coalition between the two African nationalist parties.   The council passed resolutions calling for Northern Rhodesia's secession from the federation and demanding full internal self-government under a new constitution and a new national assembly based on a broader, more democratic franchise.  On December 31, 1963, the federation was dissolved, and Northern Rhodesia became the Republic of Zambia on October 24, 1964.

At independence, despite its considerable mineral wealth, Zambia faced major challenges.   Domestically, there were few trained and educated Zambians capable of running the government, and the economy was largely dependent on foreign expertise.  Abroad, three of its neighbors--Southern Rhodesia and the Portuguese colonies of Mozambique and Angola--remained under white-dominated rule.  Rhodesia's white-ruled government unilaterally declared independence in 1965.  In addition, Zambia shared a border with South African-controlled South-West Africa (now Namibia).  Zambia's sympathies lay with forces opposing colonial or white-dominated rule, particularly in Southern Rhodesia.  During the next decade, it actively supported movements such as the Union for the Total Liberation of Angola (UNITA), the Zimbabwe African People's Union (ZAPU), the African National Congress of South Africa (ANC), and the South-West Africa People's Organization (SWAPO).

Conflicts with Rhodesia resulted in the closing of Zambia's borders with that country and severe problems with international transport and power supply.  However, the Kariba hydroelectric station on the Zambezi River provided sufficient capacity to satisfy the country's requirements for electricity.  A railroad to the Tanzanian port of Dar Es Salaam, built with Chinese assistance, reduced Zambian dependence on railroad lines south to South Africa and west through an increasingly troubled Angola.

By the late 1970s, Mozambique and Angola had attained independence from Portugal.  Zimbabwe achieved independence in accordance with the 1979 Lancaster House agreement, but Zambia's problems were not solved.  Civil war in the former Portuguese colonies generated refugees and caused continuing transportation problems.  The Benguela Railroad, which extended west through Angola, was essentially closed to traffic from Zambia by the late 1970s.  Zambia's strong support for the ANC, which had its external headquarters in Lusaka, created security problems as South Africa raided ANC targets in Zambia.

In the mid-1970s, the price of copper, Zambia's principal export, suffered a severe decline worldwide.  Zambia turned to foreign and international lenders for relief, but as copper prices remained depressed, it became increasingly difficult to service its growing debt.   By the mid-1990s, despite limited debt relief, Zambia's per capita foreign debt remained among the highest in the world.

GOVERNMENT

Type: Republic.
Independence: October 24, 1964.
Constitution:  1991 (as amended in 1996).
Branches:  Executive--president (chief of state and head of government), cabinet.
Legislative--unicameral National Assembly.
Judicial--Supreme Court, high court, magistrate courts, and local courts. Ruling political party:  Movement for Multi-party Democracy (MMD).
Suffrage: Universal adult.
Subdivisions:  Nine provinces subdivided into districts.
Flag:  Green field with small vertical stripes (red, black, orange) in lower right corner and orange eagle above stripes.

Zambia became a republic immediately upon attaining independence in October 1964.  The constitution promulgated on August 25, 1973, abrogated the original 1964 constitution.  The new constitution and the national elections that followed in December 1973 were the final steps in achieving what was called a "one-party participatory democracy."

The 1973 constitution provided for a strong president and a unicameral National Assembly.   National policy was formulated by the Central Committee of the United National Independence Party (UNIP), the sole legal party in Zambia.  The cabinet executed the central committee's policy.

In accordance with the intention to formalize UNIP supremacy in the new system, the constitution stipulated that the sole candidate in elections for the office of president was the person selected to be the president of UNIP by the party's general conference.   The second-ranking person in the Zambian hierarchy was UNIP's secretary general.

In December 1990, at the end of a tumultuous year that included riots in the capital and a coup attempt, President Kaunda signed legislation ending UNIP's monopoly on power.  In response to growing popular demand for multi-party democracy, and after lengthy, difficult negotiations between the Kaunda government and opposition groups, Zambia enacted a new constitution in August 1991.  The constitution enlarged the National Assembly from 136 members to a maximum of 158 members, established an electoral commission, and allowed for more than one presidential candidate who no longer had to be a member of UNIP.  The constitution was amended again in 1996 to set new limits on the presidency (including a retroactive two term limit, and a requirement that both parents of a candidate be Zambian-born).  The National Assembly is comprised of 150 directly elected members, up to 8 presidentially-appointed members, and a speaker.  Zambia is divided into nine provinces, each administered by an appointed deputy minister who essentially performs the duties of a governor.

The Supreme Court is the highest court and the court of appeal; below it are the high court, magistrate's court, and local courts.

Principal Government Officials
President—Levy Mwanawasa (2002)
Vice President—Enoch Kavindele (2002)
Minister of Foreign Affairs—Katele Kalumba (2002)
Ambassador to the United States—Atan Shansonga (2000)
Ambassador to the United Nations—Prof. Musamba Chime (2000)

Zambia maintains an embassy in the United States at 2419 Massachusetts Avenue, NW, Washington, DC  20008 (tel. 202-265-9717/8/9).

POLITICAL CONDITIONS

The major figure in Zambian politics from 1964 to 1991 was Kenneth Kaunda, who led the fight for independence and traditionally bridged the rivalries among the country's various regions and ethnic groups.  Kaunda tried to base government on his philosophy of "humanism," which condemned human exploitation and stressed cooperation among people, but not at the expense of the individual.

Kaunda's political party--the United National Independence Party (UNIP)--was founded in 1959 and was in power under Kaunda's direction from 1964 to 1991.  Before 1972, Zambia had three significant political parties--UNIP, the African National Congress, and the United Progressive Party (UPP).  The ANC drew its strength from western and southern provinces, while the UPP found some support among Bemba-speakers in the copperbelt and northern provinces.  Although not strongly supported in all areas of the country, only UNIP had a nationwide following.

In February 1972, Zambia became a one-party state, and all other political parties were banned.  Kaunda, the sole candidate, was elected President in the 1973 elections.  Elections also were held for the National Assembly.  Only UNIP members were permitted to run, but these seats were sharply contested.  President Kaunda's mandate was renewed in December 1978 and October 1983 in a "yes" or "no" vote on his candidacy.  In the 1983 election, more than 60% of those registered participated and gave President Kaunda a 93% "yes" vote.

Growing opposition to UNIP's monopoly on power led to the rise in 1990 of the Movement for Multiparty Democracy (MMD).  The MMD assembled an increasingly impressive group of important Zambians, including prominent UNIP defectors and labor leaders.  During the year,   President Kaunda agreed to a referendum on the one-party state and, in the face of continued opposition, dropped the referendum and signed a constitutional amendment making Zambia a multi-party state.  Zambia's first multi-party elections for parliament and the presidency since the 1960s were held on October 31, 1991.  MMD candidate Frederick Chiluba resoundingly carried the presidential election over Kenneth Kaunda with 81% of the vote.  To add to the MMD landslide, in the parliamentary elections the MMD won 125 of the 150 elected seats and UNIP the remaining 25.  However, UNIP swept the Eastern Province, gathering 19 of its seats there.

By the end of Chiluba's first term as president (1996), the MMD's commitment to political reform had faded in the face of re-election demands.  A number of prominent supporters founded opposing parties.  Relying on the MMD's overwhelming majority in parliament, President Chiluba pushed through constitutional amendments in May 1996 that eliminated former President Kaunda and other prominent opposition leaders from the 1996 presidential elections.  In the presidential and parliamentary elections held in November 1996, Chiluba was re-elected, and the MMD won 131 of the 150 seats in the National Assembly.  Kaunda's UNIP party boycotted the parliamentary polls to protest the exclusion of its leader from the presidential race, alleging in addition that the outcome of the election had been predetermined due to a faulty voter registration exercise.   Despite the UNIP boycott, the elections took place peacefully, and five presidential and more than 600 parliamentary candidates from 11 parties participated.  Afterward, however, several opposition parties and non-governmental organizations declared the elections neither free nor fair.  As President Chiluba began his second term in 1997, the opposition continued to reject the results of the election amid international efforts to encourage the MMD and the opposition to resolve their differences through dialogue.

Early in 2001, supporters of President Chiluba mounted a campaign to amend the constitution to enable Chiluba to seek a third term of office.  Civil society, opposition parties, and many members of the ruling party exerted sufficient pressure on Chiluba to force him to back away from any attempt at a third term.

President, parliamentary, and local government elections were held on December 27, 2001.  Eleven parties contested the elections.  The elections encountered numerous administrative problems.  Opposition parties alleged that serious irregularities occurred.  Nevertheless, MMD presidential candidate Levy Mwanawasa was declared the victor by a narrow margin, and he was sworn into office on January 2, 2002.  Three parties submitted petitions to the High Court, challenging the election results.  Opposition parties won a majority of parliamentary seats.

ECONOMY

GDP:   $2.8 billion 2001 (estimate)
Annual growth rate:  4% (2001)
Per capita GDP:  $273 (2001)
Natural resources:  Copper, cobalt, zinc, lead, coal, emeralds, gold, silver, uranium, hydroelectric power, fertile land.
Agriculture:  Products--corn, sorghum, rice, groundnuts, sunflower seeds, vegetables, horticultural products, tobacco, cotton, sugarcane, livestock, coffee, and soybeans.
Industry:  Types--mining, transport, construction, foodstuffs, beverages, chemicals, and textiles.
Trade (2000):  Exports--$928 million:  copper, cobalt, lead, and zinc. 
Major markets--Japan, Saudi Arabia, India, Thailand, South Africa, U.S.
Imports--$1.050 billion:  crude oil, refined petroleum products, manufactured goods, machinery, transport equipment, foodstuffs. 
Major suppliers--South Africa, Saudi Arabia, U.K., Zimbabwe.  
Official exchange rate: 4,100 Kwacha=US $1 (January 2002)

Major donors:  The World Bank is Zambia’s largest donor.  Other key multi-lateral donors include the European Union (EU), the African Development Bank, the International Monetary Fund and the United Nations agencies.  Overall, the United States ranked sixth in 2000, but third amongst the bilateral donors, after the United Kingdom and the Netherlands.  Other major bilateral donors include Sweden, Norway, Canada, Denmark, Japan, Germany and Ireland.  Zambia’s three-year (1999-2001) economic program was originally supported under the Enhanced Structural Adjustment Facility (ESAF) approved on March 26, 1999 for about US$326 million.   So far, Zambia has drawn about US$70 million.   On November 22, 1999, the Enhanced Structural Adjustment Facility was renamed the Proverty Reduction and Growth Facility (PRGF)), and its purposes were redefined.  The Executive Board of the International Monetary Fund (IMF) completed the third annual review of Zambia’s performance under the program supported by a Povery Reduction and Growth Facility (PRGF) in 2001.  As a result, Zambia will be able to draw up to about US$64 million immediately.

Zambia is one of Sub-Saharan Africa's most highly urbanized countries.  About one-half of the country's 10.2 million people are concentrated in a few urban zones strung along the major transportation corridors, while rural areas are underpopulated.  Unemployment and underemployment are serious.  Per capita annual incomes are currently at about one-half their levels at independence, and at $273, place the country among the world's poorer nations.  Social indicators continue to decline, particularly in measurements of life expectancy at birth (about 37 years) and maternal and infant mortality (114 per 1,000 live births).   The high population growth rate of 2.9% per annum makes it difficult for per capita income to increase.  The country's rate of economic growth cannot support rapid population growth or the strain which HIV/AIDS related issues (i.e., rising medical costs, decline in worker production) places on government resources.

The Chiluba government (1991-2001) came to power after democratic multiparty elections in November 1991, committed to an economic recovery program.  The government was successful in some areas such as privatization of most of the parastatals, maintenance of positive real interest rates, the elimination of exchange controls and endorsement of free market principles.  It remains to be seen whether the new Mwanawasa government will be more aggressive in implementing economic reform and undertaking further privatization.   Telecommunications, electricity and transport parastatals still need to be privatized before the economy can compete regionally and internationally.  Furthermore, Zambia has yet to address effectively issues such as reducing the size of the public sector, which still represents 44% of total formal employment, and improving Zambia’s social sector delivery systems.

After the government privatized the giant parastatal mining company Zambian Consolidated Copper Mines (ZCCM), donors resumed Balance of Payment (BOP) support.  The final transfer of ZCCM’s assets occurred on March 31, 2000.    Although BOP payments are not the answer to Zambia’s long-term debt problems, it will in the short term provide the government some breathing room to implement further economic reforms.  The GRZ has, however, spent much of its foreign exchange reserves to intervene in the exchange rate mechanism.  To continue to do so, however, would jeopardize Zambia’s debt relief.   Zambia qualified for HIPC debt relief in 2000, contingent upon the country meeting certain performance criteria, and this should offer a long-term solution to Zambia’s debt situation.

The Zambian economy has historically been based on the copper-mining industry.  Output of copper has fallen, however, to a 1990’s low of 228,000 tonnes in 1998, continuing a 30-year decline in output due to lack of investment, and more recently, low copper prices and uncertainty over privatization.  In 2001, the first full year of a privatized industry, Zambia recorded its first year of increased productivity since 1973.  The future of the copper industry in Zambia was thrown into doubt in January 2002 by investors in Zambia’s largest copper mines, who have yet to return the privatized assets to profitability.

Lack of BOP support has meant the Zambian government has not had resources for capital investment, and has periodically had to issue bonds or otherwise expand the money supply to try to meet its spending and debt obligations.  The GRZ  continued these activities even after BOP support resumed.  This has helped keep interest rates at levels that are too high for local business, fueled inflation, burdened the budget with domestic debt payments, while still falling short of meeting the public payroll and other needs, such as infrastructure rehabilitation.  The government was forced to draw down foreign exchange reserves sharply in 1998 to meet foreign debt obligations, putting further pressure on the kwacha and inflation.  Inflation held at 32% in 2000; consequently, the kwacha lost the same value against the dollar over the same period.  In mid- to late 2001, Zambia’s fiscal management became more conservative.  As a result, 2001 year-end inflation was below 20%, its best result in decades.

The agriculture sector represented 20% GDP in 2000.  Agriculture accounted for 85% of total employment (formal and informal) for 2000.  Maize (corn) is the principal cash crop as well as the staple food.  Other important crops include soybean, cotton, sugar, sunflower seeds, wheat, sorghum, millet, cassava, tobacco and various vegetable and fruit crops.  Floriculture is a growth sector, and agricultural non-traditional exports now rival the mining industry in foreign exchange receipts.  Zambia has the potential for significantly increasing its agricultural output; currently, only 20% of its arable land is cultivated.  In the past, the agriculture sector suffered from low producer prices, difficulties in availability and distribution of credit and inputs, and the shortage of foreign exchange.