Zambia has an estimated population of 11 million people and a nominal gross domestic product (GDP) of $4 billion. Mining is Zambia's main driver of the economy with some positive indicators coming from tourism following the recent investment by Sun International in Livingstone (tourist town).
Before 1991, Zambia was led by a single party under the regime of Dr. Kenneth Kaunda until multi-party politics were re-introduced in 1991. Following multi-party elections of 1991, Movement for Multiparty Democracy (MMD) lead by its President Frederick Chiluba took over the reigns of the country.
The MMD government, which came to power in 1991, embarked on a program of radical economic reform, led by public sector reform, decentralisation, privatisation and liberalisation. Much progress has since been achieved with the privatisation of over 200 companies in private hands. All these programs were meant to bring back economic life into the country, which had deteriorated over the years.
In the 2000, Zambia experienced some macroeconomic instability though there was some resilience indicated by the positive economic growth rate of 3.5%. Positive developments in manufacturing, real estate and transport and communication sectors contributed to the growth.In addition, the country achieved important strides with the successful privatisation of the remaining major assets of the Zambia Consolidated Copper Mines. Following the privatisation there has been fresh investment, new technology and improved, management for the copper mines which has lead to increased copper export of 22% and 17% increase in all exports for the country.
The Zambian economy is projected to turn around in 2001 with GDP estimated growth of 5%, up from 3.6% in 2000, while inflation slows marginally from 26% to 17.5% as projected in the 2001 government budget. This is against a background of stability from the privatised companies, which are now forging on projectory production following years of restructuring.
The tourism industry is set for a boom after a successful investment program by the Sun International and other South African tourism Investors. There are also indications of a consortium of American Business investors looking at opening tourism spots in the tourist city of Livingstone.