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The Zambian Economy
In spite of the robust performance of the economy,
the country is still faced with challenges including the
need to generate more employment opportunities and
raising incomes. To address these challenges and
achieve the country’s long term vision of becoming a
prosperous middle income country by 2030, the Gov-
ernment is implementing the Sixth National Develop-
ment Plan whose focus is infrastructure development
in order to accelerate economic diversification.
The diversification programme is intended to achieve
broad based growth that is sustainable and is able to
generate employment opportunities. In this regard,
priority has been placed on the non-mining sectors
of agriculture, energy, manufacturing, tourism and
transport to provide alternative sources of growth and
employment.
Agriculture
In agriculture, the focus is on enhancing productivity
through provision of extension services, controlling
and managing livestock diseases, and farmer input
support. Other measures being undertaken include
the provision of serviced agricultural land through farm
block development. The development of essential in-
frastructure such as roads, dams and electricity in the
Nansanga Farm Block has been completed and the
process of allotting land to successful applicants is un-
derway. The development of the other farm blocks is
expected in the medium term.
Energy
In the energy sector, the focus is on the expansion of
the electric power generation capacity in order to keep
supply in line with the rising demand. Government
strategy has been to enhance the generation capac-
ity of existing power station as well as constructing
new ones. With the programme of upgrading existing
power stations approaching completion, the focus will
be on the construction of new power stations.
The main projects under this programme include the
Kariba North Bank Power Station expansion project,
the development of the new 600 – 700 MW Kafue
Gorge Lower and the 120 MW Itezhi-tezhi power sta-
tions. Government is encouraging the private sector to
invest in power generation to cater for both domestic
and regional markets.
Manufacturing
The focus of the Government in the manufacturing
sector is to promote investments in order to expand
the sector and enhance value addition. In this regard,
the Government has been undertaking reforms to im-
prove the competitiveness of Zambian products on the
international market. Through the Zambia Develop-
ment Agency, the country is providing attractive incen-
tives for investments in the sector.
The Government is also promoting the development
of the Multi-Facility Economic Zones (MFEZs) and
Industrial Parks as a model for development for the
manufacturing sector. The Government has so far
earmarked five (5) locations for MFEZ and Industrial
Parks development. The five MFEZs are at various
stages of development.
Tourism
In tourism, the focus is on the development of the
Northern Tourism Circuit where Government is de-
veloping the requisite infrastructure such as roads,
electric power, and the airport in order to attract pri-
vate sector investment into the Kasaba Bay area. At
the same time work is continuing on the wider de-
velopment of the Greater Livingstone Area and Ka-
fue National Park, with the aim of improving access
infrastructure, wildlife management and anti-poaching
efforts, as well as to increase the number of private
investments in the national park.
Transport
It has been recognised that the successful economic
expansion and diversification programme will need to
be supported with an efficient transportation system.
In this regard, priority has been placed on the devel-
opment of roads to facilitate domestic and regional
trade. Government has also prioritized revitalising the
operations of the existing railway system as well as
attracting investments in new railway infrastructure in
order to ease transportation for bulk cargo in-and-out
of the country.
Public Private Partnerships (PPPs)
The Government has recognised the important role
that the private sector can play in the development
of infrastructure of the country. In this regard, a legal
and institutional framework has been put in place to
facilitate the partnering and participation of the private
sector in the development of infrastructure. The first
project to be developed under the PPP framework, the
Kasumbalesa Border Infrastructure, has been com-
pleted and was commissioned in March 2011. Other
projects to be developed under this framework include
power stations, housing infrastructure, roads, airport
facilities, more border facilities and infrastructure in
many other sectors.