a tripartite report - Unctad

92 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE
tion however rose to 26.7 per cent in 2002, before
being brought down to the 8 per cent in 2007.
The Zambian economy has historically been based
on the copper mining industry, and the mining
dustry
in the country. The history of copper min-
100 .
Box 1: Brief History of Copper Mining in Zambia
The commercial possibilities of Zambia, then known as Northern Rhodesia, particularly of its copper, were recognized
by the British Government during the ‘Scramble for Africa’ in the 1800s. The industrial revolution in Europe
had meant that the demand for copper was growing rapidly. The mineral rights in the Rhodesias were owned by
the British South African Mining Company and its founder, Cecil Rhodes.
At Independence in 1964, the Zambian Government managed to get the British South African Company to relin-
African Anglo American Corporation and the Roan (Rhodesia) Selection Trust. By 1970, Zambia had acquired
majority holding in the Zambian operations of those two major foreign mining corporations, which became the
Nchanga Consolidated Copper Mines (NCCM), and Roan Copper Mines (RCM). The Zambian Government then
created a new parastatal body, the Mining Development Corporation (MINDECO). At the same time, it also created
the Finance and Development Corporation (FINDECO) to gain control of insurance companies and building societies.
The Industrial Development Corporation (INDECO) had already been created to acquire equity holdings in a
In 1971, INDECO, MINDECO, and FINDECO were brought together under an omnibus parastatal, the Zambia
Industrial and Mining Corporation (ZIMCO), to create one of the largest companies in sub-Saharan Africa. The
management contracts under which day-to-day operations of the mines had been carried out by the Anglo American
Corporation and Rhodesian Selection Trust were ended in 1973. In 1982, the Nchanga Consolidated Copper
Mines and the Roan Consolidated Mines were merged into the giant Zambia Consolidated Copper Mines Limited
(ZCCM).
The copper mining industry is concentrated in the
cities and towns of the Copperbelt 101 , particularly
in Kitwe, Chingola, and Mufulila, and the North
Western Province. After a 30-year decline in output
due to lack of investment, low copper prices,
and uncertainty over privatization, output of copper
had fallen to a low of 228 000 metric tonnes by
1998. 102 In 2002, following privatization of the industry,
copper production rebounded to 337 000
metric tonnes. Improvements in the world copper
increase on revenues and foreign exchange earnings.
The sector grew by 7.4 per cent in 2010. 103
Cobalt, zinc, lead, emeralds, gold, silver, and coal
are also mined.
The Zambian Government is pursuing an economic
reliance on the copper industry. 104 The initiation
seeks to exploit other components of Zambia’s rich
resource base by promoting agriculture, tourism,
gemstone mining, and hydro-power. Agriculture
plays a very important part in Zambia’s economy,
now providing more jobs than the mining industry.
In 2010, agriculture grew by 7.6 per cent, and
growth in 2011 and 2012 is projected at 3.2 per cent
and 4.6 per cent respectively. 105 The largest contribution
to 2010 growth came from maize production.
Other leading agricultural crops are sorghum,
tobacco, cotton, sugarcane, cassava, and coffee.
Cattle, goats, pigs, and poultry are raised. There
ing,
which historically has contributed about 10 per
cent of GDP, grew by 2.5 per cent in 2010. 106 Major
manufacturing industries are in food and beverage
processing, and the manufacture of chemicals, textiles,
and fertilizer. The Government has made substantial
progress in infrastructure construction and
has invested in manufacturing through the establishment
of Multi-Facility Economic Zones (MFEZs).
The Government is also pursuing aggressive business
reforms to encourage increased private investment.
In that regard, the Private Sector Development
Reform Programme (PSDRP) is intended to
ease private sector development.
Zambia’s main exports are copper, cobalt, electric-
imports are machinery, transportation equipment,