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EXECUTIVE SUMMARY

Between 2003 and 2008, the economy advanced at an annual rate of 5.7% in response to rising copper prices and increased copper production. Despite this healthy economic performance, Zambia remained a desperately poor country characterized by very high levels of poverty, a large informal economy and inadequate infrastructure, electricity capacity and education system. Agriculture still employs the largest share of the workforce. Manufacturing accounts for just 10.0% of the economy. AIDS has taken a devastating toll on the country. It is the leading cause of death and there are 600,000 AIDS orphans. Corruption is a major problem. The sharp decline in copper prices from their record 2008 levels has highlighted the need to diversify the economy.

Geography

Zambia is a landlocked country in southern Africa with a tropical climate (the rainy season is from December to April) that is slightly larger than Texas. It borders Angola, the Democratic Republic of Congo, Malawi, Mozambique, Namibia, Tanzania and Zimbabwe and is slightly larger than Texas. The population is 11,862,740. Lusaka is the capital, commercial center and the largest city. It has a population of 1.8 million. Arable land accounts for 7.0% of the area of the country, 35.0% of the population lives in urban areas, 57.1% of the country is covered by forests and 0.04% of the land area is devoted to permanent crops. The median age is 17.0 years, the birth rate is 40.24 per 1,000 people, the death rate is 21.34 per 1,000 people, 45.1% of the population is under 15 years old, 22.7% is between 25 and 44 and 2.3% are 65 years and older. The population growth rate is 1.9% (UNDP estimate for 2005-2015). The time zone is 2 hours ahead of Greenwich meantime. English is the official language. Zambia is a former British colony. It received its independence on October 24, 1964.

SECTION SUMMARY AND TREND

Political Environment - Government & Civil Liberties Trend

Elections are held on a frequent basis. The political landscape is dominated by the Movement for Multiparty Democracy Party, which has held power since 1991. It uses its “influence” and patronage to maintain its grip on the government. Although freedom of the press is guaranteed by the constitution, journalists have been subjected to harassment and intimidation. The judiciary is independent but is undermined by corruption and a lack of resources.

Stable

Economic Overview Trend

Infrastructure

The infrastructure is in poor condition. Just 22% of the road network is paved. The railroad system is dilapidated and there is an inadequate water and sewage system.

Negative

Country Brief

ZAMBIA

August 11, 2009

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Energy Sector

Hydro-power provides most of the electricity. The electrification rate is just 19%. In rural areas, it is a mere 3.2%. Power shortages and outages are frequent. The state owned electric utility has substantially boosted tariff rates to reduce its losses and acquire the resources to upgrade the electrical system.

Negative

External Accounts

Copper is the dominant export, accounting for 71.1% of exports in 2007. The sharp decline in copper prices from the heights they reached in 2008 has prompted a dramatic deterioration in the external accounts. The IMF is forecasting the current account deficit will swell to 7.1% of GDP in 2009 from 5.8% in 2008 and 4.7% of GDP in 2007. At the end of 2008, foreign exchange reserves were equal to just 2.1 months of the imports of goods and services.

Negative

External Debt

Zambia has benefited from debt relief under the terms of the IMF and World Bank’s enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The debt burden as a result has declined significantly.

Positive

Agriculture Sector

The corn harvest has been excellent in recent years, thus enabling Zambia to become a net exporter of food. Farm productivity however is limited by the low level of irrigation and electrification in rural areas.

Positive

Informal Economy

The informal economy is very large. There are only 300,000 jobs in the formal economy. About 80-90% of the work force is employed in the informal sector.

Negative

Business Environment Trend

Openness to Foreign Investment

The government has taken steps to liberalize the investment framework to encourage foreign direct investment. There are no foreign exchange controls and no restrictions on the remittance of profits, capital, dividends and interest payments. There is very little foreign investment outside of the mining sector.

Stable

Financial Sector

The banking sector is small and shallow and dominated by foreign owned institutions. According to the IMF, it is “adequately capitalized and liquid.” There is a small micro-finance sector.

Stable

Corruption

Corruption is a major problem. The government has taken steps in recent years to restrain it. Several high government officials, including former president Frederick Chiluba, have been prosecuted for corruption. In Transparency International’s 2008 Corruption Perception Index, Zambia was ranked 115 of 180 nations. This is an improvement from its ranking of 123 of 179 in the 2007 index.

Positive

Human Capital Trend

Zambia is ranked 163 of 179 nations in the UNDP 2008 Human Development Index. There is widespread poverty with 87.2% of the population living on less than $2 a day. The life expectancy is just 38.6 years as a result of the high level of HIV/AIDS, which is the leading cause of death. The literacy rate is 75%.

Negative

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Economic Outlook Trend

The steep plunge in copper prices from their 2008 highs has negatively impacted the economy. Copper mines have cut back production and dismissed thousands of workers who were among the best paid in an economy that produces few “formal” jobs. The government faces a reduction in government revenue as tax receipts from the mining sector declines. The fall in copper prices highlights the need to diversify the economy and make it less vulnerable to the swings of copper prices.

Negative

I. Political Environment

Index Rank Score

Freedom House Index 2009 Status: Partly Free Political Rights: 3.0/7.0

Civil Rights: 3.0/7.0

Bertelsmann Transformation Index 2008 58/125 5.91/10.00

Fund for Peace - Failed State Index 2009 60/177 84.2/120.0

World Bank Gov Indicator 2008, Political Stability 54.5 Percentile 0.29

1. Government

The chief of state is President Rupiah Banda. He has held the office since August 19, 2008. President Banda served as the acting president after President Levy Mwanawasa became incapacitated. He died on August 18, 2008. President Banda was elected on October 30, 2008 with 40.1% of the vote to serve out the remainder of President Mwanawasa’s term, which ends in 2011. Although the main opposition party contested the fairness of the elections, international observers deemed the balloting to be free and fair. The election was marred by widespread apathy with voter turnout at just 45.4%. The next election will be held in 2011. Suffrage is 18 years old. The president is both the head of state and the head of the government and serves for a 5-year term. There is a unicameral National Assembly that has 158 members of which 150 are elected by popular vote and 8 are appointed by the president. Members serve for 5 years. The last election was conducted on September 28, 2006 and the next one will be held in September 2011. The Movement for Multiparty Democracy Party, which has been in power since 1991, has 72 seats and the Patriotic Front has 44 seats.

2. Civil Liberties

Freedom House has designated Zambia as “partly free” and has assigned it a rating of 3 out of 7 for political rights and 3 out of 7 for civil rights. The lower the rating the higher the degree of political and civil liberties. Zambia is ranked 58 of 125 nations in the Bertelsmann Transformation Index, 60 of 177 in the Fund for Peace Failed State Index (the lower the ranking the higher the degree of economic and political dysfunction) and is ranked at the 54.5 Percentile in the World Bank’s (WB) Political Stability Governance Indicator.

Although freedom of speech and the press is constitutionally guaranteed, the government routinely restricts these rights. It for example controls two of the largest newspapers, which it actively influences and appoints the management boards of the Zambian National Broadcast Company (ZNBC), the state owned broadcaster that dominates the broadcasting media, and the Independent Broadcasting Authority, which regulates the broadcast industry and grants licenses to prospective broadcasters. The independent media is hindered by harassment and the arrest of journalists critical of the government. The Public Order Act, libel laws and defamation lawsuits have been used to intimidate journalists, and the Ministry of

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Information has threatened to revoke licenses of radio stations that are sympathetic to the opposition. The government has consistently delayed the passage of a bill that would grant the public and journalists free access to official information.

There was intense pressure on the media in the prelude to the voting in 2008. President Banda for example obtained a court order that forbid the leading independent newspaper, The Post, from running “defamatory” articles about him. The minister of information meanwhile warned that he would “sort out” the newspaper after the elections. Reporters working for The Post were threatened by government officials while covering the campaign.

The government does not restrict access to the Internet or monitor e-mail correspondence or internet chat rooms. Internet use, however, is restricted by the inability of most people to afford a computer and the relatively high connect charges. Freedom House ranks Zambia 143 of 195 in its Freedom of the Press survey for 2009 and characterizes the press as "not free.”

Freedom of religion and academic freedom are respected. Freedom of assembly is restricted by a stipulation of the Public Order Act which mandates the police must receive a week’s notice before a demonstration is held. The police have the authority to decide when and where rallies are held and who may address them. “Illegal” protests have been broken up by the police because of a lack of a permit, which technically is not required for a demonstration. Nongovernmental organizations are allowed to operate freely, but they must register with the government.

Workers are allowed to join and form trade unions. The Zambia Congress of Trade Unions operates independently without state interference. About two-thirds of the 300,000 workers in the formal-economy are union members. With the exception of workers in essential services such as defense, judiciary, law enforcement, prison, security intelligence, the generation, supply, or distribution of electricity and water, sewage, fire departments and the maintenance of safe and sound working conditions in mines, workers are allowed to strike. However all “legal recourse” must be exhausted before a strike can occur. Workers can engage in collective bargaining.

Judicial independence is guaranteed by the law. Courts act independently and have ruled against the government. The judiciary system however is undermined by inadequate resources, corruption, poor working conditions and a shortage of qualified personnel. There are significant trial delays and detainees are often held for long periods before a trial begins. The government announced plans in 2007 to provide free legal services to the poor. However, it does not have the resources to put this right into practice. Allegations of police corruption, brutality, and torture are widespread.

II. Economic Overview

Agriculture, forestry and fishing was the largest sector of the economy in 2007 accounting for 20.4% of the GDP while wholesale and retail trade represented 16.5%, construction was 15.7%, manufacturing had a 10.0% share and community, social and personal services were 9.2%. In 2005, agriculture, forestry and fishing accounted for 73% of the work force. The government classifies 72.4% of the labor force as part time workers because they worked less than 40 hours a week. Unemployment is particularly severe for young people. According to the Central Statistical Office, 2 of every 5 urban youths and 4 of every 5 rural youths cannot find work in the formal economy. Every year, about 250,000 young people enter the labor market. Very few are able to find jobs. The government placed the unemployment rate at 16% in 2005. The unemployment rate has risen sharply this year in response to the closing down of several copper mines. A World Food Program Report on Zambia dated May 26, 2009 noted that “the mining sector in the copper-belt province directly employed an estimated 30,000 individuals in 2008. Approximately 8,000 have already been retrenched and the figure is likely to reach 10,000 by June 2009. In terms of overall employment, this figure is an under-estimate since it does not account for the retrenchment of those providing goods and services to the mining sector.”

Wage rates are very low. The minimum wage in the formal sector was 268,000 kwacha ($52.19) per month in 2008 based on the legal maximum workweek of 48 hours.

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Consumer prices rose by 1.1% in June and were 14.4% above their year ago levels. In July, the annual rate slipped to 14.0%. This was down from a recent peak of 16.6% in the year to December. The IMF is forecasting a 12.2% (annual average) rise in consumer prices for 2009 and an 8.3% advance is predicted for 2010.

The major crops grown are corn, sorghum, rice, peanuts, flowers, tobacco, cotton, sugarcane, tapioca and coffee. Among the natural resources are copper, cobalt, zinc, lead, coal, gold, silver, uranium and hydropower. Copper mining and processing, construction, food processing, beverages, textiles footwear, fertilizers and horticulture are the principal industries.

The economy expanded at an annual rate of 4.8% per annum between 1999 and 2008. By comparison, Angola saw growth of 11.3% during this period, Mozambique advanced by 7.6%, and Tanzania increased 6.5%. The per capita income rose 274.7% between 1999 and 2008 to $1,150. This placed Zambia 133 of the 179 nations and territories that the IMF compiles data for.

1. Infrastructure

There are 91,440 km (56,784 miles) of roadway of which 22.0% is paved. The US State Department’s Travel Advisory for Zambia noted that “traffic circulates on the left side…Most roads do not have shoulders or sidewalks…While the main roads in Lusaka as well as the principal highways linking Lusaka with the major provincial capital are generally maintained, many secondary roads are in poor repair.” The UK Foreign and Commonwealth Travel Advisory for Zambia said, “Many roads are severely pot-holed or otherwise unsafe, especially during the rainy season when bridges and roads risk being washed away by sudden floods.”

The Road Development Agency (RDA) has a budget of K1.356 trillion ($264.8 mln) for 2009 of which 47% was derived from external sources. Erasmus Chilundika, the head of the RDA, has estimated that the ideal annual budget for the rehabilitation and maintenance of the road network is K3.5 trillion. He predicted that by 2013, all the roads would be in good condition. This may be a difficult goal to achieve as he also admitted that 83% of rural roads were in poor condition.

There are 101 airports of which 9 are paved. The main international airport is Lusaka International Airport. It is located 27 km east of the capital. Among the airlines that service the airport are Air Malawi, British Airways, Ethiopian Airlines, Kenyan Airways, South African Airways, TAAG Angola Airways and Zambezi Airlines. There are flights to Addis Ababa, Dar es Salaam, Johannesburg, London (Heathrow), Luanda and Nairobi. Between February and April, 2009 the departure lounge was refurbished. Zambian Airways is the national carrier. It is a private company. On January 10, 2009, it suspended operations citing high fuel costs. The company owes $2,000,000 to National Airports Corporation, the government entity that runs the airports.

There are 2,157 km of railway. There are two rail companies. The Zambia Railway Ltd. is a private consortium composed of Spoornet (South Africa), New Limpopo Bridge Project Limited of (Mauritius) and Cana-rail (Canada) that received a 20-year concession to run the domestic railroad in 2003. TAZARA is a joint Zambian-Tanzanian firm that operates the rail service between Zambia and the port of Dar es Salaam in Tanzania.

The railway network is in very poor condition as a result of inadequate investment and maintenance and weak management. Former President Mwanawasa described the state of the railway system as “shameful” and in a “dilapidated state.” Three days a week there is service between Livingstone and Lusaka and three days a week there is train service on the Livingstone-Kapiri Mposhi-Ndola-Kitwe line. There is also service from Lusaka to the Copperbelt. The government has announced plans to construct a railway line from Chingola in the Copperbelt to the border with Angola to link up with the Benguela railway line.

The Tanzania & Zambia Railway Authority (TAZARA) operates trains between Kapiri Mposhi and Mbeya in Zambia and Dar es Salaam. The line is 1,992km and the trip takes 41½ hours. TAZARA is in financial difficulties.

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Mpulungu located on Lake Tanganyika is the only port. There are ferries to Tanzania. A limited amount of trade with Tanzania is conducted from the port. Most of Zambia’s imports and exports utilize the Tanzanian port of Dar es Salaam. Mpulungu is not linked to the rail network.

The Tanzania Zambia Mafuta Pipeline (Tazama Pipeline) is a 1,710 km crude oil pipeline from Dar es Salaam to the Indeni refinery in Ndola, Zambia. It was commissioned in 1968 and has a capacity of 1.1 million tons a year. Currently, it is handles about 600,000 tons a year. It is owned by Tazama Pipeline Limited, a joint company of the Governments of Zambia (66.7%) and Tanzania (33.3%). Parts of the pipeline are in poor condition.

The Lusaka Water and Sewerage Company Limited (LWSC) is the main supplier of water and sanitation services to Lusaka. The Company is wholly owned by the Lusaka City Council but it operates as an independent company. Water is supplied to 83% of the population through house connections, yard connections and standpipes. Service is irregular and there are significant leakages.

Inadequate access to safe water and poor sanitation facilities are a major cause of diseases and illness, particularly, diarrhea. Sanitation-related diseases such as cholera and trachoma are the second biggest killer of children after malaria. Urban areas have relatively good access to potable water. In rural areas though, many communities rely on rivers and shallow wells for their water. Only 43% of the rural population has access to clean water.

2. Energy Sector

Zambia produces just 160 barrels of oil per day (bpd). It consumes and imports around 16,000 bpd. On January 11, 2008, the government announced it had discovered additional oil and gas reserves. On July 23, 2009, an international tender for oil companies to explore 23 blocks in the North-Western, Western and Eastern provinces was issued. In June, President Banda appointed a seven member committee of ministers to oversee licensing, exploration and production of oil and gas. According to a recently passed petroleum law, foreign firms will be expected to train and employ locals and adhere to strict environmental, health and safety regulations. In addition, the president was granted the authority to take over land held by traditional leaders and award it to a foreign investor to conduct oil exploration. The government will set up a state national oil firm to regulate activities in the industry.

The only oil refinery is the Indeni Oil Refinery, located at Ndola. It is 50% owned by Total and 50% by the government and has a refining capacity of 24,000 bpd. The government and Total have agreed to find a third shareholder to take up to a 30% ownership stake.

Coal has been produced since 1967. The bulk of the coal comes from the Maamba coal mine, an open-cast operation in the southern part of the country near Lake Kariba. London-listed Vedanta Resources Plc and Singapore's Nava Bharat Pte Ltd. submitted final offers on January 9, 2009 to operate the mine and construct a thermal power station. It is presently owned by ZCCM, a government entity that has interests in the mining sector. The Maamba mine produced about 600,000 tons of coal a year in the 1980s, but has seen its output slump to below 100,000 tons because of inadequate investment and operational losses. Vedanta is already a majority shareholder in Konkola Copper Mines, Zambia's largest copper mine. The Maamba mine is estimated to have 78 million tons of coal reserves.

Hydropower is the main source of electricity accounting for 99.5% of the total. The largest hydro-electric facility is the Kariba Dam located at the Kariva Gorge of the Zambezi river basin between Zambia and Zimbabwe. It was built by Impresit of Italy between 1955 and 1959 and at 128m high and 579m long, it is one of the largest dams in the world. On April 3, 2009, the International Finance Corporation, a division of the World Bank, announced that 15 companies have expressed an interest in developing the Kafue Gorge Lower hydropower project. The winning bidder will be selected within the next 12 months. The expected cost for the 750-MW facility is estimated at $1.1-$1.5 bln. Construction is expected to start in 2011, with completion scheduled for 2016.

The state owned Zambian Electric Supply Company is the electric utility. It was set up in 1970. About 60% of the electricity generated by ZESCO is used by the copper mines. The Energy Regulation Board

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approved an increase of 26.8% in electricity tariffs on January 1, 2008. On August 1, tariffs were raised an additional 35% and on August 1, 2010, they will be hiked a further 26%. The increases are designed to help pay for an expansion of the inadequate electricity supply. According to the Central Statistical Office, 19% of households had access to electricity in 2005. The electrification rate for urban areas was 49.3% and for rural areas it was just 3.2%. Power shortages, rationing and outages are common.

3. External Accounts

The IMF estimated that the trade surplus narrowed in 2008 by 55.3% to $492 mln as high oil and food costs helped to push up imports by 26.1%. This outpaced a 9.9% advance in exports. The surplus was equal to 2.2% of GDP. This year, the IMF expects a sharp deterioration in the trade position in response to the decline in the price of copper, which is Zambia’s dominant export. A deficit of $568 mln is projected with exports slumping by 43.7% and imports dropping 26.3% in response to lower oil and food prices. This would be equal to 3.7% of projected GDP. The IMF may be too pessimistic with respect to the size of the deficit as it based its forecast on an average price of copper of $3,500 per ton, which is 49.7% below the average level for 2008. In the year to date period ending July 28 however, the average price of copper was $3,800 per ton.

Copper is the dominant export accounting for 71.1% of the total in 2007. With respect to imports, chemicals including pharmaceuticals and fertilizers were 13.6%, petroleum and petroleum products had an 11.8% share and road vehicles were 9.3%. In 2007, Switzerland was the largest export market at 41.8% while South Africa was second at 12.0%. Thailand was third with a 5.9% share. South Africa was the largest source of imports at 47.4% followed by the UAE at 6.4% and China with 5.9%.

Remittances and tourism are not important sources of transfer and invisible income. According to the 2008 World Bank Migration and Remittances Factbook, remittances totaled $59 mln in 2007 and were equal to just 0.5% of GDP. Tourism plays a small role in the economy. In 2006, the travel and tourism sector accounted for only 1.3% of GDP. In 2005, the government launched a 5-year Visit Zambia Campaign to promote the country as a tourist destination with the objective of attracting 1 million tourists by 2010. In 2007, there were 897,413 tourist arrivals. Investment in the tourist sector has increased sharply in recent years with the number of hotels increasing 28% between 2000 and 2008. Among the major tourist sites are 19 national parks and 34 game management areas, run by the Zambia Wildlife Authority (ZAWA), which make up a third of the country's area. Victoria Falls, Lake Tanganyika and the Zambezi River are also major tourist attractions.

The IMF estimated the current account deficit rose 39.6% in 2008 to $1.054 bln. This was equal to 5.8% of GDP. A major reason for the shortfall was the $1.399 bln deficit in the income category, which was the result of remittances of profits from mining companies at a time of high copper prices. In response to the deep descent in copper prices, the IMF is forecasting a contraction in the income deficit to $565 mln this year. The current account deficit is financed by foreign direct investment inflows and disbursements of foreign assistance loans. This year, the IMF is projecting a current account deficit of $1.102 bln, which would be 7.1% of GDP. A shortfall of $1.105 bln is predicted for 2010.

Gross international foreign exchange reserves were $976 mln at the end of 2008. This was 3.1% above the level at the end of 2007 and was equal to just 2.1 months of the import of goods.

4. External Debt and Budget Balance

On April 8, 2005, the IMF and the World Bank's International Development Association (IDA) agreed that Zambia had taken the necessary steps to reach the completion point under the enhanced Heavily Indebted Poor Countries (HIPC) Debt Initiative. It was the 17th country to reach the completion point. The debt relief granted surpassed $3.9 bln.

The threshold for HIPC eligibility is an external debt that is more than 150% of the exports of goods and services or more than 250% of fiscal revenue. In 2003, Zambia had an external debt that was equal to 174% of the exports of goods and services. At the end of 2008, the external debt was $2.913 bln.

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The IMF has noted that “Zambia’s debt sustainability outlook remains strong following HIPC debt relief. It continues to be at a low rise of debt distress as public sector debt is projected to remain stable over the medium to long-term at around 20% of GDP, about half of which is external debt.”

Zambia is very dependent upon foreign assistance to sustain its economy. In 2005, official development assistance totaled $945 mln and was equal to 13% of GDP. For 2008, the IMF estimated that external grants for budget and project purposes accounted for 16.9% of total government revenue. The largest source of revenue is derived from income taxes, which accounted for 38.1% followed by value added taxes at 17.9%. On the expenditure side, wages and salaries accounted for 34.1% of total spending while capital expenditures were 15.0%. The IMF estimated the budget deficit climbed to 1.7% of GDP from 1.1% in 2007. Excluding foreign grants, the deficit was 5.6% of GDP. This year, the shortfall is estimated to be 2.6% of GDP.

In its First and Second Reviews of Zambia’s Three-Year Arrangement Under the Poverty Reduction and Growth Facility that was released on June 16, 2009, the IMF noted that the budget deficit in 2008 was larger than expected because of a sizable shortfall in targeted revenues resulting from lower than anticipated tax revenues from the mining sector. Higher than forecasted wages, rising fertilizer subsidies, spending on the presidential election and a capital transfer to ZESCO to complete the rehabilitation of a power station were also factors for the higher deficit. The IMF highlighted the impact that lower copper prices will have on the budget. It forecasted that mining taxes in 2009-10 will be 7 percentage points of GDP lower than previously anticipated. The 2009 budget removed the windfall tax on the mining sector but retained the increase in corporate income tax and royalty payments that became effective in April 2008.

5. Agriculture Sector

About 60% of the population earns their livelihood from agriculture. Farm productivity is limited by the small size of most farms, poor roads in rural areas, and the low level of mechanization, irrigation and electrification. There are several large commercial farm operations producing tobacco and wheat but 70%-80% of the food that is produced comes from small-scale farmers.

Zambia has traditionally been a net food importer. However, in 2007, strong increases in corn and sugar production prompted a surge in food exports and as a result, it became a net food exporter. Food, live animals, tobacco and beverages accounted for 6.9% of exports in 2007. Corn production has remained strong with a total harvest of 1.9 million tons in the 2008/09 growing season production. This was up from 1.2 million tons in 07/08. The government indicated that it will export 100,000 tons of white corn this year. Corn is critical to the economy as it is the main staple crop. According to the Food and Agriculture Organization, it accounted for 55.6% of all caloric in-take in 2000-2002. Cassava was second at 12.9%.

Cattle and poultry have grown increasingly in importance. Poultry for example accounts for 7.5% of GDP and 35% of the total agricultural production and fishing is 3.8% of GDP. There are several large-scale commercial livestock operations.

6. Informal Economy

Zambia has a very large informal economy. According to the World Bank it is equal to 48.9% of GDP. It is ranked 14

th of 104 nations that the World Bank compiles data on the informal economy for. Around

80%-90% of the working population is employed in the informal economy. There are only 300,000 jobs in the formal sector economy. Most informal businesses are in the trade sector.

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III. Business Environment

Index Rank Score

Economic Freedom of the World Index 2008 51/141 7.1/10.0

Heritage Foundation Economic Freedom Index 2009 108/179 56.6/100.0

World Economic Forum – Global Competitive Index 2008-2009 112/134 3.49/7.00

Milken Institute Capital Access Index 2008 88/122 3.25/10.00

UNCTAD – Inward Potential Performance Index 2004-2006 129/141 0.83/1.000

World Bank Ease of Doing Business 2009 100/181 N/A

World Bank Gov Indicator 2008, Regulatory Quality 41.1 Percentile -0.33

World Bank Gov Indicators 2008, Rule of Law 38.8 Percentile -0.50

Transparency International Corruption Perception Index 2008 115/180 2.8/10.0

1. Summary of Indices

Zambia ranks 100 of 181 in the World Bank’s 2009 ease of doing business survey. This compares to a ranking of 100 of 179 in the 2008 survey. It is ranked 71

st in starting a business, 135

th for employing

workers, 68th in getting credit, 87

th in enforcing contracts, 91

st in registering property, 70

th in protecting

investors, 30th in paying taxes and 80

th in closing a business. With respect to the World Bank’s

governance indicators, it performs well below average. It is ranked at the 41.1 percentile for regulatory quality and for rule of law, it is at the 38.8 percentile.

Zambia is ranked 51 of 141 in the Fraser’s Institute Freedom of the World Index, 88 of 122 in the Milken Institute Capital Access Index, it is 129 of 141 in the UNCTAD Inward Potential Performance Index for 2004-2006, it is 108 of 179 in the Heritage Foundation’s Economic Freedom Index and 112 of 134 in the World Economic Forum’s (WEF) 2008-2009 Competitiveness Index.

2. Openness to Foreign Investment

The government encourages foreign investment to boost growth, employment and exports. On January 1, 2007, the Zambia Development Agency (ZDA) was set up following the consolidation of several trade and investment promotion entities. It acts as a “one stop shop” for international investors and screens all investments for which incentives are requested. Decisions are usually made in 30 days. No legal distinctions are made between foreign and domestic investors. Foreign investors can participate in the privatization process. Capital, dividends, management fees, interest, profits, wages and royalties can be freely remitted without limitations. There are no foreign exchange controls. All areas of the economy with the exception of the retail sector are opened to foreign investment but investments in communications, banking, tourism, transport, mining, health, education, and aviation are subject to additional regulations and government approval. Property can only be expropriated by an act of Parliament. Compensation must be at fair market value. About 94% of the land is held under the tenure system which falls under the jurisdiction of tribal chiefs. Foreigners cannot own tenured land but can lease it for business purposes. The government recognizes international arbitration as binding in commercial disputes. There are no imposed mandates for local content, equity, financing, employment, or technology transfers. There are generous incentives especially for investing in rural areas, farming, and non-mineral export industries. Equipment, machinery, and plants used exclusively for farming, manufacturing, and tourism for example qualify for a depreciation allowance of 50%. Despite the nominal liberal investment framework there are many obstacles to investing in Zambia. There is a dearth of skilled labor, an inadequate infrastructure and electricity supply, a high inflation rate, a high level of corruption and a modest manufacturing sector. The judiciary system is also problematic. According to the US State Department’s Investment Climate Statement, “The judicial system has a mixed record in upholding the sanctity of contracts. The judicial process is lengthy and inefficient. Many

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magistrates lack experience in commercial matters.” The Investment Climate Statement also noted that “Copyright protection is limited and does not cover computer applications…"red tape associated with obtaining licenses and permits presents problems…scores of licenses are required to run a business…Proposed laws are usually not published in draft form for public comment.” Income from farming is taxed at 15%, which is below the standard corporate tax rate of 35%. The portion of income that is determined by the Commissioner of Taxes to originate from the export of non-mineral products is also taxed at 15%. The top income tax rate is 35%. The first 600,000 kwacha of income is exempted from taxation. There are no capital gains, gift, estate, or wealth taxes. Dividends and interest are subjected to a 15% withholding tax. The value added tax is 17.5%. There is a mineral royalty tax of 3%. The pension contribution is 5% of gross salary and the workmen’s compensation contribution is 4.2% of gross salary. The property transfer tax is 3% of the sales prices.

3. Foreign Investment

Data from the UNCTAD indicate that FDI in 2007 was $984 million. This was above the $616 million level in 2006 and represented 35.6% of gross fixed capital formation. The total stock of FDI (book value) at the end of 2007 was $5.375 bln, which was equal to 48.2% of GDP. FDI has grown rapidly in recent years, climbing by 130.5% between 2000 and 2007.

Most of the foreign investment is concentrated in the mining sector. In 2004, Vedanta Resources (UK) replaced Anglo-American Corporation as the majority shareholder (51%) in the Konkola Copper Mine Company. The purchase price was $48.2 million. Konkola Copper Mine Company is the largest mining and metal company in the country with annual capacity of 200,000 metric tons of copper and a payroll of 14,903. Glencore International (Switzerland), First Quantum Minerals (Canada), Equinox Minerals (Canada/ Australia), Non-Ferrous China, Allied Energy Corporation (US), Albidon Zambia Limited (Australia), Alberg Mining and Exploration (South Africa) and Starfield Mine (Australia) also have mining operations. Among the other companies with business interests are Hagura, an Israeli-Indian consortium, and Gemfields Resources Plc (UK) in gemstones, African Energy Resources Limited (Australia) in uranium, Cargill Cotton Ginners Limited (a wholly-owned subsidiary of Cargill USA) and Dunavant Cotton (US) in cotton, Lilayi Housing Estates (US) in housing, BP in gasoline (it has a 58% share of the retail and industrial market), Taj Hotels (India), Sun International Hotel Group (South Africa), Intercontinental Hotel (UK), Holiday Inn and Protea Hotel Group (South Africa) in hotels, Avis and Europcar (South Africa) in car rental, Zain (headquartered in Bahrain but owned principally by Kuwaiti investors) in telecommunications, Coca Cola and Pepsi cola in soft drinks and Nestle and Unilever in food.

China has become the third largest investor in Zambia after South Africa and Great Britain. China Non-Ferrous Metal Company's has invested $150 million in the copper mine located at Chambishi. The government has selected it to reopen the Luanshya Copper Mine which was shut down by ICM, a Swiss-Israeli joint venture in January in the aftermath of the collapse of copper prices. CBMI Construction of China has been contracted by Lafarge (Farnce) to build a $120 million cement plant in Lusaka. On July 23, 2009, China's Zhonghui Mining Group signed an agreement with the government to invest $3.6 billion in various mining projects in the Copper Belt and North Western provinces. The investment is expected to create up to 34,000 jobs. The Jinchuan Group announced on August 5 that it will take a 51% ownership stake in the only nickel mine, which is scheduled to resume output in September after ceasing production in March because of low nickel prices. Chinese investment in Zambia is increasingly controversial with mining union officials claiming Chinese run mines have poor working conditions, low pay and a high rate of accidents.

4. Privatization

Most government owned industries including the copper mines were privatized in the 1990’s. Prior to privatization, the government controlled over 80% of the productive and service-related activities. This has been reduced to between 10% and 15%. The most prominent company to be privatized was the Zambia Consolidated Copper Mines Co (ZCCM), which dominated the copper sector. The government still retains a minority interest in many mining operations through its ownership of Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) which is the successor company to ZCCM. Of 282 state-

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run firms that were listed for sale, 260 were privatized by December 2003. Many of these companies though have since been closed or liquidated because of poor management and inadequate capital investment. In value terms, Zambians accounted for only 5% of the privatization sales while the rest was accounted for by joint ventures and foreign investors.

The government still retains complete control of ZESCO, the electric utility and ZAMTEL, the telecom utility. President Banda has decided to sell a 75% stake in ZAMTEL to private investors with the government retaining 25%. He said privatization was the only way to resolve its financial problems since the government does not have the resources to provide the $200 mln required to recapitalize the company. There are no plans to privatize ZESCO in light of its very poor financial condition.

5. Financial Sector

There is a small banking system that caters to the urban areas and large businesses. Less than 8% of the adult population had a bank account in 2005 and two-thirds of the adult population had no access to financial services. Credit to the private sector is expensive and banking fees are high. Banks provide credit denominated in foreign currency only for investments that produce goods for export. Mortgage funding for housing is available but rates are high. There are 17 commercial banks of which most are foreign owned or have a large foreign interest. The banks with foreign interest are Access Bank Zambia (Nigeria), African Banking Corporation Zambia (South Africa), Bank of China, Barclay’s Bank Zambia, Citibank Zambia, Ecobank (Pan-African), Stanbic Bank (South Africa), Standard Chartered Bank (UK) and United Bank for Africa (Nigeria) and Zambia National Commercial Bank). On December 26, 2006, the government sold a 49% interest in Zambia National Commercial Bank to Rabobank (Netherlands). The government retains a 25% ownership interest and the remainder was floated on the stock exchange.

The banking system is highly concentrated with the 3 largest banks accounting for about 75% of bank assets. As of December 2008, non performing loans were 7.2% of total loans outstanding. This was down from 8.8% at the end of 2007. In its First and Second Reviews of Zambia’s Three-Year Arrangement Under the Poverty Reduction and Growth Facility that was released on June 16, 2009, the IMF said, “While the banking sector has thus far weathered the global financial crisis, nonperforming loans are expected to increase and banks have become more cautious in their lending…The banking sector overall remains adequately capitalized and liquid.”

The microfinance sector is small and still in the developmental stage. Micro-finance institutions (MFI) are required by government regulation to register as either deposit-taking or credit-only institutions. The majority of MFIs are dependent on donations. Many are run by church groups. The minimum capital required to establish a deposit-taking microfinance institutions is $64,350 (for commercial banks, the minimum capital is $426,817). As of 2006, there were 60,000 customers of MFIs. The largest MFI is CETZAM. As of March 31, 2006, it had $2.08 mln in loans outstanding and assets of $2.41 mln.

The Lusaka Stock Exchange opened in February 1994. It trades stocks and corporate and government bonds. There are just 21 listed companies and not all of them are actively traded. Settlement is three days after the date of trade. Foreigners can purchase shares without restriction. The largest public offering was by Zain in 2008, which raised $133 mln. As was the case with many emerging markets, the Lusaka stock exchange experienced an enormous bull run in the mid and late part of this decade. Between the end of 2003 and the end of 2007, the LUSE Index (excluding ZCCCM-IH) skyrocketed by 718.0% (a gain of 838.7% in US dollars). Last year though, it suffered a steep decline, dropping by 29.1% (a fall of 44.7% in US dollars). In the year to date period ending August 10, the index rose 11.5% (a 12.9% rise in US dollars). At the end of June, the total market capitalization was $3.902 bln. This was down from $4.106 bln at the end of 2008. The market capitalization was 37.3% of GDP. In 2008, foreigners were net sellers of $5,667,556 of shares. In 2007, they were net buyers of $12,524,927 of shares. The kwacha operates under a free floating exchange rate regime. In 2008, it dropped by 22% against the dollar and in the year to date period ending August 10, it rose 1.3%. The central bank auctions treasury bills and bonds for the government. At the August 6 Treasury bill auction, the 91-day yield was 16.056%, the 182-day yield was 16.495% and the 364-day yield was

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18.022%. At the July 24 bond auction, the yield for 2-year maturities was 18.511%, for 3-years, it was 19.378% and for 5-years, it was 19.938%.

6. Corruption and Transparency

Zambia has ratified the UN Convention Against Corruption and the African Union Convention on the Prevention and Combating of Corruption. It is ranked 115 of 180 nations in Transparency International’s 2008 Corruption Perception Index. This is an improvement from its ranking of 123 of 179 nations in the 2007 index. According to Transparency International, a score of less than 3.0 out of 10.0 indicates there is “rampant” corruption. Zambia’s score is 2.8. Although there are laws that make accepting and soliciting a bribe a criminal offense, corruption is widespread. Petty corruption is particularly pervasive because of low salaries for civil servants. Corruption is especially pronounced in the police force. According to the US State Department’s Human Rights Report, “Police released prisoners for bribes, extorted money from victims, and required document processing fees or gas money to commence investigations.”

Fighting corruption was a major priority of the government of Levy Mwanawasa. He banned senior officials from bidding on public contracts and ousted several government officials, including his vice president, following allegations of corruption. President Banda has pledged to continue to pursue a vigorous attack on corruption. However, according to Freedom House, there are allegations that he made payments to a small opposition party in exchange for their support in the 2008 Presidential elections.

In 2002, the government formed a Task Force on Corruption to uncover past abuses, punish perpetrators, and recover assets obtained through corruption. Several former high level government figures have been prosecuted for corruption. The most prominent of these is former president Frederick Chiluba who served from 1991-2002. Parliament has lifted his immunity from prosecution. He is still awaiting a decision in his lengthy court trial. His wife however was convicted of corruption in March and sentenced to three and a half years in prison. In 2007, Chiluba was ordered to pay $57 mln in damages to the government of Zambia by a civil court in London in a case that was brought by Zambia’s attorney general. He is contesting the judgment. In his decision, Justice Peter Smith said the former president spent money from a secret intelligence agency bank account in London that was “set up primarily to steal government money.” The judge noted that during his time in office, Chiluba made only about $10,000 a year yet he managed to spend more than $500,000 in a shopping spree at a single store in Geneva. The shop owner testified that payment for the clothes that were bought “sometimes arrived in suitcases stuffed with cash.” Mr. Chiluba has denied the corruption allegation and has claimed he never stole public money. Instead, he said that he spent money that was donated for political contributions and “well wishers.”

The corruption task force has successfully prosecuted the former managing director of the Zambia National Commercial Bank, the former permanent Secretary in the Ministry of Health, the former Zambia National Service Commandant, the former Zambia Privatization Agency Chairman and the former Air Force Commander.

7. Standards Compliance Assessments

IMF Dissemination Standard Subscription Status

Special Data Dissemination Standard Not a Subscriber

General Data Dissemination Standard Yes, a Subscriber

IMF Assessment Standards Assessed Dates Compliance Level

Reports on Standards and Codes (ROSCs)

Data Dissemination Feb 1, 2005 Low

Financial Sector Assessment Programs (FSAPs)

N/A

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Zambia has been assessed by the IMF for Data Dissemination in its ROSC Program. The report said “Overall the lack of effective coordination among all statistical producing agencies and users impedes the quality and transparency of statistics.”

IV. Human Capital

Index Rank Score

UNDP Human Development Index 2008 163/179 0.453/1.000

1. Social Indicators

Zambia ranks 163 of the 179 countries and territories in the UNDP Human Development Index for 2008. The infant mortality rate is 101.2 per 1,000 live births, the probability of dying before the age of 40 is 53.9%, 47% of births are attended to by a skilled health care professional, the under 5 mortality rate is 182 per 1,000 live births, 84% of one-year olds are fully immunized against measles, 12% of infants are born with low birth weight, the maternal mortality rate is 830 per 100,000 live births, 46% of the population is considered to be undernourished, 58% of the population have access to clean drinking water, 23.3% of children under 5 are underweight for their age, 52% of the population have access to improved sanitation facilities, 68.0% of the population lives below the national poverty line, the probability of dying between the ages of 15 and 60 is 61.7%, 87.2% of the population lives on less than $2 a day and the projected life expectancy for 2009 (according to the US Census Bureau) is just 38.6 years (38.7 years for females and 38.5 years for males). Zambia is one of 82 "Low Income Food Deficit Countries." The International Food Policy Research Institute places Zambia 78th of 88 countries in its Global Hunger Index (the higher the number the greater the extent of malnutrition) .

2. Access to Technology There are 8 mainline telephone lines and 221 cellular subscribers per 1,000 people. Internet use is 42 per 1,000 people. There are 11 personal computers per 1,000 people, there are 25 televisions per 1,000 people and there are 106.6 radios per 1,000 people. In 2003, there were 114,300 registered motor vehicles of which 68,500 were passenger cars. The per capita consumption of electricity is 727.1 kilowatt hours (in the US, it is 12,924 kilowatt hours). 3. Health Indicators There are just 10 physicians per 100,000 people, 300 nurses and midwives per 100,000 people and 220 hospital beds per 100,000 people. In 2004, there were 1,039 pharmacists, 1,415 laboratory health care workers, 491 dentists and 1,027 environment and public health care workers. AIDS is a major health care problem. The prevalence of HIV/AIDS is 15.2% of the adult population (15-49 years old). In 2007, there were 1,100,000 people with AIDS of which 95,000 were children. There were 56,000 deaths from the disease, and there are 600,000 AIDS orphans. The prevalence of tuberculosis is 387 per 100,000 people (in the US, it is 3 per 100,000 people), the prevalence of diabetes is 5.9% of the population, the prevalence of obesity is 0.1% for males and 1.3% for females, the prevalence of smoking is 5.0% for females 15 and older and 21.7% for males 15 and older and the homicide rate is 8.1 per 100,000. Road traffic accidents kill nearly 1,000 people every year. In 2006, there were 3,655,203 cases of malaria and 14,204 deaths from malaria. The per capita health expenditure is $79. The mortality rate for cancer is 122 per 100,000 people and the mortality rate for cardiovascular diseases is 359 per 100,000 people. In a WHO survey of the leading causes of death in 2002, HIV/AIDS accounted for 43% of the total followed by lower respiratory inflections at 12% and malaria had a 9% share.

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The State Department’s travel advisory for Zambia said, “Government hospitals and clinics are often understaffed and lack supplies. Private medical clinics in major cities can provide reasonable care in many cases, but major medical emergencies usually require medical evacuation to South Africa, Europe, or the United States. Basic medical care outside of major cities is extremely limited”. In the WHO’s ranking of the world’s health care systems, Zambia is ranked 182 of 190 countries surveyed.

4. Education Indicators

Education is tuition-free for 9 years of schooling but it is not compulsory. School fees and mandatory uniforms for primary education students have been recently eliminated in an attempt to increase school attendance. There are reports however that some teachers and school administrators still require students to wear uniforms or pay a fee before they can attend classes. Inadequate educational facilities and scarce educational materials are major problems. Poor working conditions have resulted in a high attrition rate for teachers. HIV/AIDS has had a devastating impact on the education sector, with some 40% of teachers estimated to be HIV-positive. Children head 7% of all households because of the death of both parents from AIDS. There are about 30,000 street children in Lusaka.

Primary school begins at 7 and continues for seven years. Of students who enroll in Grade 1, 87% continue to the last grade of primary school and 7% of students repeat grades. The pupil/teacher ratio is 49:1. Secondary education begins at age 14 and is completed in five years. About 5% of students in upper secondary education study in technical vocational programs. There are two public universities that have inadequate facilities and insufficient staff and 6 private universities.

The literacy rate is 75.0% for those 15 years and older. The average for sub-Saharan Africa is 62.3%. The net enrollment rate in primary school is 94% for girls and 94% for boys. This compares to a regional average of 71% for girls and 76% for boys. The ratio of primary school age children who are not in primary school is 5%. The net enrollment rate in secondary school is 38% for girls and 44% for boys, which compares to the regional average of 24% for girls and 29% for boys.

V. Economic Data, Outlook and Credit Rating

IMF Country Data Overview 2009 (Est.)

GDP Growth

GDP:

GDP per capita:

CPI:

Current Account as % of GDP

Budget deficit as % of GDP

FDI (UNCTAD 2007)

4.0% $12.992 bln $1,019 12.2% -7.1% -2.6% $984 mln

1. Latest IMF Consultation

In its First and Second Reviews of Zambia’s Three-Year Arrangement Under the Poverty Reduction and Growth Facility that was released on June 16, 2009, the IMF highlighted the problems the economy will experience because of the downturn in the price of copper, which is the dominant export earner and a major source of government receipts. It noted that “since the deterioration in the terms of trade is expected to be long lasting…Zambia has little choice but to adjust to the shock by scaling back previous spending plans.”

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2. Economic Outlook This year’s strong rebound in copper prices from their recent lows has engendered optimism among government officials that the worst is over and the economy has weathered the storm. However, even assuming copper prices remain well above their recent lows, it will be a long time before the mining companies significantly step up their hiring, particularly in light of the sharp decline in profits that many of them have sustained. Vendata Mining for example reported that its profits in the fiscal first quarter that ended in June were 52% below their year ago levels. There are concerns that the government’s intention to raise its stake in foreign owned copper mines from 15% to 25% and to as much as 35% will restrain investment in the mining sector. Maxwell Mwale, the Mines and Minerals Development Minister said the government did not plan to nationalize the mines but would seek to convert debt owned to the government into equity. He gave no timeframe however on when the government would implement this policy. The shock the economy experienced resulting from the steep decline in copper prices highlights the need to diversify the economy which is overly dependent on the mining sector. The government needs to develop the manufacturing and agriculture sectors to increase employment and ensure the export base is less dependent upon copper. The World Trade Organization’s Policy Review of Zambia published on July 27 and 29, 2009 noted that “Diversifying out of copper into agriculture, tourism, and services has been an often-stated objective of Zambian governments for years, including under the current national development plan (2006-10). The Government has been carrying out much-needed reforms across several sectors, in programs such as the Financial Sector Development Plan and the Private Sector Development Initiative, and is committed to overhauling the expensive system of fertilizer subsidies, increasing investment in agriculture, improving the efficiency of the state-owned power company (ZESCO) and reforming the telecommunications sector. Despite such reforms, the poor quality and limited availability of infrastructure services and associated high prices, a cumbersome licensing and regulatory framework, and limited access to finance continue to contribute to the high cost of doing business, dragging down productivity, impairing competitiveness, and limiting economic diversification.”

3. Country Credit Ratings

Credit Rating Standard & Poor’s Moody’s Fitch Ratings

(as of date of publication) N/A N/A N/A

Zambia is not rated by any of the major credit rating agencies.

VI. Membership in international organizations

Financial Action Task Force (FATF)

Not a member

International Center for Settlements of Investment Disputes (ICSID)

Signatory on June 17, 1970

International Federation of Accountants (IFAC)

Yes, a member

Multinational Investment Guarantee Agency (MIGA)

Yes, a member

United Nations Convention Against Corruption

Signatory on December 11, 2003

World Intellectual Property Organization (WIPO)

Yes, a member

World Trade Organization (WTO)

A member since January 1, 1995

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VII. Sources for Zambia Brief

Geography Central Intelligence Agency, “The World Factbook - Country Report for Zambia” https://www.cia.gov/library/publications/the-world-factbook/geos/za.html Maps of the World, “Zambia Languages” http://www.mapsofworld.com/zambia/culture/language.htm “Plans to Expand Lusaka Underway”, Lusaka Times, November 18, 2008 http://www.lusakatimes.com/?p=5634 TimeTemperature.com http://www.timetemperature.com/africa/zambia_time_zone.shtml UNDP, "2007/08 Human Development Report for Zambia," September 2008 http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_ZMB.html US Census Bureau: “Countries and Areas Ranked by Population: 2009” http://www.census.gov/cgi-bin/ipc/idbrank.pl US Census Bureau: International Data Base http://www.census.gov/ipc/www/idb/country.php World Travel Guide.com, Zambia Climate http://www.worldtravelguide.net/country/314/climate/Africa/Zambia.html# Political Environment Table Bertelsmann Transformation Index http://www.bertelsmann-transformation-index.de/fileadmin/pdf/Anlagen_BTI_2008/BTI_2008_Ranking_EN.pdf Freedom House, “Freedom in the World 2009: Table of Independent Countries" http://www.freedomhouse.org/uploads/fiw09/FIW09_Tables&GraphsForWeb.pdf Fund for Peace, “Failed State Index 2009” http://www.fundforpeace.org/web/index.php?option=com_content&task=view&id=99&Itemid=140 World Bank, “World Governance Indicators”, 2008 http://info.worldbank.org/governance/wgi/index.asp Government Central Intelligence Agency, “The World Factbook - Country Report for Zambia” https://www.cia.gov/library/publications/the-world-factbook/geos/za.html Develop Africa Foundation, Country Overview of Zambia http://www.dafo-africa.eu/?content=lands/zambia/zambia Electoral Institute of Southern Africa, “Zambia: 2008 Presidential election results”, Updated, November 2008 http://www.eisa.org.za/WEP/zam2008results.htm “Zambia: A successful democratic election”, IRIN humanitarian news and analysis, a project of the UN Office of the Coordination of Humanitarian Affairs, November 3, 2008 http://www.irinnews.org/report.aspx?ReportID=81272

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Civil Liberties Freedom House, “2009 Report for Zambia” http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7736 Freedom House, “Freedom of the Press 2009” http://www.freedomhouse.org/uploads/fop/2009/FreedomofthePress2009_tables.pdf US Department of State, "Human Rights Report for Zambia," February 25, 2009 http://www.state.gov/g/drl/rls/hrrpt/2008/af/119031.htm Economic Overview Bank of Zambia, “Percentage Changes in the Consumer Price Index” http://www.boz.zm/fortnightly/2009/number%201610/PercentageChangesInTheConsumerPriceIndices.pdf Central Intelligence Agency, “The World Factbook - Country Report for Zambia” https://www.cia.gov/library/publications/the-world-factbook/geos/za.html Central Statistics Office of Zambia, “GDP by Kind of Economic Activity at Current Prices, 1994-2007” http://www.zamstats.gov.zm/media/copy_of_1gdp_2007_preliminary_estimates_5_1.7.pdf Central Statistics Office of Zambia, “June, 2009 Monthly Report” http://www.zamstats.gov.zm/media/vol_75_2009_the_monthly_june.pdf Central Statistics Office of Zambia, “Labor Force Survey Report for 2005” http://www.zamstats.gov.zm/media/labour_force.pdf International Monetary Fund, “World Economic Outlook Database”, April 2009 http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weoselco.aspx?g=2001&sg=All+countries International Monetary Fund, “Zambia: First and Second Reviews of the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waivers of Nonobservance of Performance Criteria, and Augmentation of Access - Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director of Zambia”, June 16, 2009 http://www.imf.org/external/pubs/cat/longres.cfm?sk=23026.0 Investment Description of the Zambia Youth Empowerment Fund http://www.adf.gov/documents/AppendixA1750-ZAM.pdf “Labor Stakeholders Propose Minimum Wage of K600,00,” Zambian News and Information Service, April 1, 2009 http://www.zanis.org.zm/index.php?option=com_content&task=view&id=3388&Itemid=70 US Department of State, "Human Rights Report for Zambia," February 25, 2009 http://www.state.gov/g/drl/rls/hrrpt/2008/af/119031.htm World Food Program, “Executive Brief-Zambia, Effects of the Financial crisis on Vulnerable Households”, May 26, 2009 http://home.wfp.org/stellent/groups/public/documents/communications/wfp203545.pdf Infrastructure African News Switzerland, “Zambia: State of Railway System Shameful” http://www.african-news.ch/?p=733 AllAfrica.com, “Zambia: Road Agency Rejects Abnormal CB Tender Prices", June 17, 2009 http://allafrica.com/stories/200906170316.html

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All Africa.com, “Zambia: RDA Pours K126 Billion into Lusaka Roads”, May 13, 2009 http://allafrica.com/stories/200905130395.html

All Africa.com, “Zambia: Zambian Airways - Time to Lift the Corporate Veil”, February 28, 2009 http://allafrica.com/stories/200903021116.html

AllAfrica.com, “South Africa: Global Slowdown and Record Fuel prices Hit Air Travel," January 13, 2009 http://allafrica.com/stories/200901130139.html

All African.com, “South Africa: Global Slowdown and Record Fuel Prices Hit Air Travel”, January 13, 2009 http://allafrica.com/stories/200901130139.html

Central Intelligence Agency, “The World Factbook - Country Report for Zambia” https://www.cia.gov/library/publications/the-world-factbook/geos/za.html Chulu, Kabanda, “World Bank withdraws funding for TAZAMA Pipeline rehab”, Zambia Post http://www.postzambia.com/content/view/10277/40/ How to Travel by Train in Tanzania and Zambia http://www.seat61.com/Zambia.htm Jobe, Faraja, “Salary arrears burden Chinese built railway”, The Citizen newspaper, July 28, 2009 http://thecitizen.co.tz/newe.php?id=14033 Kaunda, Danstan, “ZAMBIA: Corruption in Water Sector Makes Clean Water A Pipedream” Inter Press Service News Agency. February 20, 2009 http://ipsnews.net/news.asp?idnews=45834 Mbendi.com, “Petroleum and Petroleum Products Wholesalers in Zambia-Downstream” http://www.mbendi.com/indy/oilg/ogds/af/za/p0005.htm Mobbs, Philip, “The Mineral Industry of Zambia,” US Geological Service http://minerals.usgs.gov/minerals/pubs/country/2004/zamyb04.pdf Musanshi, Machuva, “Spoornet Takes Over Zambia Railways”, Traderafrica.com, Issue 16, November to February 2004 http://www.tradersafrica.com/articles.asp?articleid={D024E358-23CA-465A-B3D2-89D2BB47AE83} Polity.org, “Zambia, Angola to expand railway to link countries”, March 20, 2008 http://www.polity.org.za/article/zambia-angola-to-expand-railway-to-link-countries-2008-03-20 UK Foreign and Commonwealth Office, “Travel Advisory for Zambia” for July 27, 2009 http://www.fco.gov.uk/en/travelling-and-living-overseas/travel-advice-by-country/sub-saharan-africa/zambia US State Department, “Travel Advisory for Zambia” for January 23, 2009 http://travel.state.gov/travel/cis_pa_tw/cis/cis_1062.html World Bank, “Draft Terms of Reference for Data Base Clean Up of Lusaka Water and Sewage Company, September, 2007 http://74.125.95.132/search?q=cache:hV6F3xHlhj0J:econsult.worldbank.org/suite/public/collaboration/GetDocument.none%3Fdoid%3D88986+lusaka+water+and+sewage+company+draft+terms+of+reference&cd=4&hl=en&ct=clnk&gl=us WorldTravelGuide.com, “Getting around Zambia” http://www.worldtravelguide.net/country/314/internal_travel/Africa/Zambia.html

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WorldTravels.com, “Lusaka International Airport” http://www.wordtravels.com/Airports/Zambia/Lusaka+International ZambiaTourism.com, “Getting to Zambia” http://www.zambiatourism.com/travel/traveladvice/gethere.htm ZambiaTourism.com, “Lake Tanganyika” http://www.zambiatourism.com/travel/places/tanganyi.htm “Zambia: Water Everywhere, but not to drink, IRIN, Humanitarian news and analysis, a project of the UN Office for the Coordination of Humanitarian Affairs, March 26, 2009 http://www.irinnews.org/report.aspx?ReportID=83664 Energy Sector

All Africa.com “Zambia: Govt Issues Tenders for Oil Exploration” July 23, 2009

http://allafrica.com/stories/200907230788.html

All Africa.com, “Zambia: 'Zesco Power Tariffs Hike Won't Affect Kansanshi Mine Ops', July 24, 2009

http://allafrica.com/stories/200907240228.html

Central Statistics Office, “Living Conditions Monitor” http://www.zamstats.gov.zm/ ChinaMining.org, “Vedanta, Singapore firm bid to run Zambia coal”, January 9, 2009 http://www.chinamining.org/News/2009-01-09/1231467831d20905.html Encyclopedia.com, “Kariba Dam,” http://www.encyclopedia.com/topic/Kariba_Dam.aspx Energy Information Administration, “Country Report for Zambia”, May 15, 2009 http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=ZA Kapembwa, Geoffrey, “Poor Planning: Indeni expects Further Delays Due to Weather at Sea” The Zambian Chronicle, July 29, 2008 http://zambianchronicle.com/?p=1092 Lusaka Times, “Indeni oil refinery resumes production”, October 15, 2007 http://www.lusakatimes.com/?p=1435 Lusaka Times, “Bank of Zambia Governor supports 66% ZESCO electricity hike”, March 24, 2009 http://www.lusakatimes.com/?p=10128 Mbendi.com, “Indeni refinery Company’ http://www.mbendi.com/rein.htm Ministry of Mines and Mineral Development, “Mining in Zambia’ http://www.zambiamining.co.zm/industrialminerals.htm Ngandwe, Talent, “15 Companies vying to develop Zambia hydropower project,” Creamer Media’s Engineering News.com, April 3, 2009 http://www.engineeringnews.co.za/article/zambia-2009-04-03 Nkunde, Humphrey, “ZESCO Struggles to meet surge in demand,” African Review of Business Technology, March 2008. http://www.entrepreneur.com/tradejournals/article/177721558.html

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Shapi, Shacinda, “Zambia finds more oil, sets up Petroleum Committee”, Reuters, January 11, 2008 http://uk.reuters.com/article/idUKL113144420080111 UNDP, "2007/08 Human Development Report for Zambia," September 2008 http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_ZMB.html World Bank, “Electricity Production from Coal (% of total)”, Country data http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/ENVIRONMENT/EXTDATASTA/0,,contentMDK:21083175~pagePK:64168445~piPK:64168309~theSitePK:2875751~isCURL:Y,00.html World Bank, “2006 World Development Indicators, Sources of Electricity” http://devdata.worldbank.org/wdi2006/contents/Section3. Zambian Chronicle, “ZESCO Gets 200MWatts in Excess Power After the Kafue Gorge Upgrades,” March 31, 2009 http://zambianchronicle.com/?p=3751 Zambia Electric Supply Company website http://www.zesco.co.zm/profile.html External Accounts Euromonitor.com, “Travel and Toruism in Zambia” http://www.euromonitor.com/Travel_And_Tourism_in_Zambia International Monetary Fund, “Zambia: First and Second Reviews of the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waivers of Nonobservance of Performance Criteria, and Augmentation of Access - Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director of Zambia”, June 16, 2009 http://www.imf.org/external/pubs/cat/longres.cfm?sk=23026.0 Stundza, Tom, “Copper's price run hinges on second-half Chinese demand,” Purchasing.com, July 28, 2007 http://www.purchasing.com/article/316569-Copper_s_price_run_hinges_on_second_half_Chinese_demand.php United Nations Commodity 2007 Trade Statistics for Zambia http://comtrade.un.org/pb/CountryPages.aspx?y=2007

Visit Zambia, “Visit Zambia Campaign One Million Tourist Arrivals Target Within Reach”, July 19, 2008 http://www.visitzambia.co.zm/eng/news/news/visit_zambia_business/visit_zambia_campaign_one_million_tourist_arrivals_target_within_reach

World Bank, "Migration and Remittances Factbook," 2008 http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/0,,contentMDK:21121930~pagePK:64165401~piPK:64165026~theSitePK:476883,00.html World Economic Forum, “Zambia Tourist Profile” http://www.weforum.org/pdf/tourism/Zambia.pdf Zambia News and Information Services, “Tourism”, June 16, 2006 http://www.zanis.org.zm/index.php?option=com_content&task=view&id=29&Itemid=61 External Debt and Budget Balance Central Intelligence Agency, “The World Factbook - Country Report for Zambia” https://www.cia.gov/library/publications/the-world-factbook/geos/za.html

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Carrasco, Enrique, McClellan, Charles and Ro, Jane, “Foreign Debt: Forgiveness and Repudiation”, April 2007, University of Iowa Center for International Finance and Development http://www.uiowa.edu/ifdebook/ebook2/contents/part4-I.shtml International Monetary Fund, “Zambia: First and Second Reviews of the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waivers of Nonobservance of Performance Criteria, and Augmentation of Access - Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director of Zambia”, June 16, 2009 http://www.imf.org/external/pubs/cat/longres.cfm?sk=23026.0 International Monetary Fund Press Release for April 8, 2005, “IMF and World Bank Support $3.90 billion in Debt Service Relief for Zambia” http://www.imf.org/external/np/sec/pr/2005/pr0580.htm UNDP, "2007/08 Human Development Report for Zambia," September 2008 http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_ZMB.html Agriculture

All Africa.com, “Zambia: State Takes Steps to Develop Livestock Industry”, July 16, 2009

http://allafrica.com/stories/200907160706.html Food and Agriculture Organization, Zambia Country Profile” ftp://ftp.fao.org/docrep/fao/008/a0205m/Zambia.pdf Moss, Paul, “Issues of Scale for Zambian Farmers,” BBC, July 10, 2008 http://news.bbc.co.uk/2/hi/business/7498472.stm Reuters, “Zambia to export 100,000 tons of white maize after surplus,” July 21, 2009 http://af.reuters.com/article/investingNews/idAFJOE56K0L520090721 United Nations Commodity 2007 Trade Statistics for Zambia http://comtrade.un.org/pb/CountryPages.aspx?y=2007 WTO Report on Zambia’s Trade Policies and Practices http://74.125.95.132/search?q=cache:Cyr-dXvNLHUJ:www.wto.org/english/tratop_e/tpr_e/s219-03_e.doc+zambia+is+a+net+importer+of+food&cd=13&hl=en&ct=clnk&gl=us Informal economy

All Africa.com,“Zambia: Smuggling Maize Grain Can Threaten Food Security”

February 20, 2009 http://allafrica.com/stories/200902200382.html Global Network.com, “Market vendors and street traders, Case Study on Social Dialogue in Zambia” http://www.theglobalnetwork.net/documents/GN-Materials/Case-Studies/Decent_Work_For_Development-broch Klepp, Silja, “Mr. Tempo and the Garbage Around,“ The Globalist, August 24, 2006 http://www.theglobalist.com/StoryId.aspx?StoryId=4650 Minenechanya, Silane, K., “Legal empowerment of the Poor: Empowering Informal Business in Zambia” http://www.undp.org/legalempowerment/reports/National%20Consultation%20Reports/Country%20Files/26_Zambia/27_6_Informal_Business_Rights.pdf Nationmaster.com, “informal Economy by Country” http://www.nationmaster.com/graph/eco_inf_eco-economy-informal

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People’s Daily online, “Smuggling of cement from Tanzania increases in Zambia”, June 17, 2007 http://english.people.com.cn/200706/17/eng20070617_384996.html Reuters, “Malawi tobacco output undershoots target,” July 11, 2009 http://af.reuters.com/article/investingNews/idAFJOE56A09S20090711 US Department of State, "Human Rights Report for Zambia," February 25, 2009 http://www.state.gov/g/drl/rls/hrrpt/2008/af/119031.htm Business Environment Table Fraser Institute Economic Freedom of the World Index http://www.freetheworld.com/cgi-bin/freetheworld/getinfo.cgi Heritage Foundation Economic Freedom Index http://www.heritage.org/index/Ranking.aspx Milken Institute Capital Access Index http://www.milkeninstitute.org/pdf/2008CAI.pdf Transparency International Corruption Perception Index http://www.transparency.org/policy_research/surveys_indices/cpi/2008 UNCTAD – Inward Potential Performance Index http://www.unctad.org/Templates/WebFlyer.asp?intItemID=2472&lang=1 World Bank Ease of Doing Business http://www.doingbusiness.org/EconomyRankings/ World Bank Governance Indicators http://info.worldbank.org/governance/wgi/index.asp World Economic Forum Global Competitiveness Index http://www.weforum.org/pdf/gcr/2008/rankings.pdf Openness to Foreign Investment Heritage Foundation Country Report for Zambia http://www.heritage.org/index/Country/Zambia#financial-freedom KMPG, “Zambia - Taxation of International Executives” http://www.kpmg.com/SiteCollectionDocuments/TIES/ZAMBIA_2008_TIES.pdf US Department of State, "Investment Climate Statement for Zambia," February 2008 http://www.state.gov/e/eeb/rls/othr/ics/2009/117850.htm World Bank Ease of Doing Business, “paying Taxes in Zambia” http://www.doingbusiness.org/ExploreTopics/PayingTaxes/Details.aspx?economyid=207 Zambia Development Agency, “Investor’s Guide Handbook” http://www.zda.org.zm/sites/zda/files/attachments/Investor%20Guide%20Handbook%20March%202009_1.pdf Foreign Investment British Petroleum, Operations in Zambia http://www.bp.com/genericarticle.do?categoryId=16003471&contentId=7020818

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Euromonitor.com, “Travel and Toruism in Zambia” http://www.euromonitor.com/Travel_And_Tourism_in_Zambia Kachingue, Kevin, “Zambia: Opposition to Chinese Firm Running Copper Mine,” Inter Press Service, June 2, 2009 http://www.globalissues.org/news/2009/06/02/1690 Konkola Copper Mines website http://www.kcm.co.zm/

MarketWatch.com,”Chinese Zhonghui Mining to Invest $3.6 Bln In Zambia”, July 23, 2009

http://www.marketwatch.com/story/dj-chinese-zhonghui-mining-to-invest-36-bln-in-zambia-report-2009-07-23 Reuters, “China firm to won about 51 pct of Zambia nickel mine”, August 5, 2009 http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL540715020090805 UNCTAD, "World Investment Report 2008 - Country Fact Sheet: Zambia," October 10, 2008 http://www.unctad.org/sections/dite_dir/docs/wir08_fs_zm_en.pdf US Department of State, "Investment Climate Statement for Zambia," February 2008 http://www.state.gov/e/eeb/rls/othr/ics/2009/117850.htm Zain website http://www.zain.com/muse/obj/portal Privatization AFP, “Zambia’s privatizations a total failure, says unions”, January 19, 2004, http://www.eprop.co.za/news/article.aspx?idArticle=3039 Telecompaper.com, “Zambia to sell 75% of Zamtel to private partner,” July 26, 2009 http://www.telecompaper.com/news/article.aspx?cid=683065 World Trade Organization, “Trade Policy Review for Zambia” July 27 and 29, 2009 http://www.wto.org/english/tratop_e/tpr_e/tp319_e.htm Zambian Chronicle, “ZCCM-IH to reopen Lusanshya Copper Mines, January 27, 2009 http://zambianchronicle.com/?p=3281 Financial Sector Bank of Zambia website http://www.boz.zm/ de Luna Martinez, Juan, “Access to Financial Services in Zambia” http://ideas.repec.org/p/wbk/wbrwps/4061.html Heritage Foundation Country Report for Zambia http://www.heritage.org/index/Country/Zambia#financial-freedom International Monetary Fund, “Zambia: First and Second Reviews of the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waivers of Nonobservance of Performance Criteria, and Augmentation of Access - Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director of Zambia”, June 16, 2009 http://www.imf.org/external/pubs/cat/longres.cfm?sk=23026.0 Lusaka Stock exchange website http://www.luse.co.zm/

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Microcapitalmonitor.com, “Bank of Zambia Warns Against Unlicensed Microfinance Institutions”, September 11, 2006 http://microcapitalmonitor.com/cblog/index.php?/archives/354-Bank-of-Zambia-Warns-of-Action-Against-Unlicensed-Microfinance-Institutions.html Microfinance.org, “Survey of the Zambian Microfinance Sector”, June 2, 2008 http://www.microcapital.org/zambia-microfinance-survey-current-microlending-sector-environment/ Oanda, “The Currency Site” http://www.oanda.com/ Rabobank website, “Rabobank acquires 49 percent stake in Zambia National Commercial Bank PLC,” December 26, 2006 http://www.rabobank.com/content/news/news_archive/rabo_zambiacombankplc.jsp US Department of State, "Investment Climate Statement for Zambia," February 2008 http://www.state.gov/e/eeb/rls/othr/ics/2009/117850.htm Corruption and Transparency Dugger, Cella W., “Ex-Zambian Leader’s High Life awaits a Verdict, “ The New York Times, June 22, 2009 http://www.nytimes.com/2009/06/22/world/africa/22zambia.html Freedom House, “2009 Report for Zambia” http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7736 Transparency International Corruption Perception Index http://www.transparency.org/policy_research/surveys_indices/cpi/2008 United Nations Convention Against Corruption http://www.unodc.org/unodc/en/treaties/CAC/signatories.html US Department of State, "Human Rights Report for Zambia," February 25, 2009 http://www.state.gov/g/drl/rls/hrrpt/2008/af/119031.htm US Department of State, "Investment Climate Statement for Zambia," February 2008 http://www.state.gov/e/eeb/rls/othr/ics/2009/117850.htm Standards and Compliance International Monetary Fund list of GDDS nations http://dsbb.imf.org/Applications/web/gdds/gddscountrylist/ International Monetary Fund list of SDDS nations http://dsbb.imf.org/Applications/web/sddscountrylist/ International Monetary Fund, Report on Observance of Standards and Codes http://www.imf.org/external/np/rosc/rosc.asp International Monetary Fund, “Zambia: Report on Observations of Standards and Codes”, released on February 1, 2005 http://www.imf.org/external/pubs/ft/scr/2005/cr0530.pdf World Bank, Report on the Observance of Standards and Codes http://www.worldbank.org/ifa/rosc.html

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Social Indicators Food and Agriculture Organization – List of Low-Income Food Deficit Countries http://www.fao.org/countryprofiles/lifdc.asp International Food Policy research Institute, “Global Hunger Index, The Challenge of Hunger 2008” http://www.ifpri.org/pubs/cp/ghi08.pdf Kaiser Family Foundation, "Global Health Facts – Health Indicators" http://www.globalhealthfacts.org/factsheets_custom.jsp# UNDP, "2007/08 Human Development Report for Zambia," September 2008 http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_ZMB.html US Census Bureau: International Data Base http://www.census.gov/ipc/www/idb/country.php World Food Program Country Assessment for Zambia http://www.wfp.org/countries/zambia World Health Organization, "Core Health Indicators," May 2008 http://www.who.int/whosis/database/core/core_select.cfm?strISO3_select=ALL&strIndicator_select=ALL&intYear_select=latest&language=english Access to Technology

Nationmaster, “Per capita electricity consumption” http://www.nationmaster.com/graph/ene_ele_con_percap-energy-electricity-consumption-per-capita Nationmaster, “Per capita radio statistics” http://www.nationmaster.com/graph/med_rad_percap-media-radios-per-capita Nationamaster, “Per capita televisions statistics” http://www.nationmaster.com/graph/med_tel_percap-media-televisions-per-capita Reuters AlertNet – “Standard of Living for Zambia” http://www.alertnet.org/db/cp/zambia.htm World Bank, "Information and Communications for Development 2009," May 2009 http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20459133~isCURL:Y~menuPK:1192714~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html World Economic Forum Network Readiness Index http://www.weforum.org/pdf/gitr/2009/Rankings.pdf 2007 Worldmark Encyclopedia of the Nations, Entry for Zambia http://www.encyclopedia.com/doc/1G2-2586700132.html Health Indicators Cure Reasearch.com – Data for diabetes http://www.cureresearch.com/d/diabetes/stats-country.htm HIV In site, “Zambia Update, March 2007” http://hivinsite.ucsf.edu/global?page=cr09-za-00 Kaiser Family Foundation, "Global Health Facts – Health Indicators" http://www.globalhealthfacts.org/factsheets_custom.jsp#

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Road Transport and Safety Agency, Republic of Zambia website http://www.rtsa.org.zm/index.php?option=com_content&view=category&layout=blog&id=1&Itemid=50 UNDP, "2007/08 Human Development Report for Zambia," September 2008 http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_ZMB.html US State Department, “Travel Advisory for Zambia” for January 23, 2009 http://travel.state.gov/travel/cis_pa_tw/cis/cis_1062.html World Health Organization, "Core Health Indicators," May 2008 http://www.who.int/whosis/database/core/core_select.cfm?strISO3_select=ALL&strIndicator_select=ALL&intYear_select=latest&language=english World Health Organization, “Zambia Mortality Country Factsheet for 2006” http://www.who.int/whosis/mort/profiles/mort_afro_zam_zambia.pdf World Health Organization, "Ranking of medical care systems," 2000 http://www.photius.com/rankings/healthranks.html Education Indicators

Bertelsmann Country Report for Zambia http://www.bertelsmann-transformation-index.de/68.0.html?&L=1 Education International, "Education Report for Zambia," June 18, 2007 http://www.ei-ie.org/barometer/en/profiles_detail.php?country=zambia UNESCO Education Database http://stats.uis.unesco.org/unesco/TableViewer/document.aspx?ReportId=198&IF_Language=enEcong

Economic Data Table International Monetary Fund, “Zambia: First and Second Reviews of the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waivers of Nonobservance of Performance Criteria, and Augmentation of Access - Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director of Zambia”, June 16, 2009 http://www.imf.org/external/pubs/cat/longres.cfm?sk=23026.0 International Monetary Fund, “World Economic Outlook Database”, April 2009 http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weoselco.aspx?g=2001&sg=All+countries UNCTAD, "World Investment Report 2008 - Country Fact Sheet: Zambia," October 10, 2008 http://www.unctad.org/sections/dite_dir/docs/wir08_fs_zm_en.pdf Latest IMF Consultation Biesheuvel, Thomas, “Vedanta Profit Slumps 52%, Beats Analyst Estimates”, Bloomberg News, July 31, 2009 http://www.bloomberg.com/apps/news?pid=20601085&sid=aV2yT4mOg6OU Butty, James, Zambian Minister Sees Gradual Improvement in Country's Struggling Copper Mining Industry”, Voice of America, May 13, 2009 http://www.voanews.com/english/archive/2009-05/2009-05-13-voa6.cfm?moddate=2009-05-13 Central Statistics Office of Zambia, “June, 2009 Monthly Report” http://www.zamstats.gov.zm/media/vol_75_2009_the_monthly_june.pdf

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International Monetary Fund, “Zambia: First and Second Reviews of the Three-Year Arrangement Under the Poverty Reduction and Growth Facility, Request for Waivers of Nonobservance of Performance Criteria, and Augmentation of Access - Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director of Zambia”, June 16, 2009 http://www.imf.org/external/pubs/cat/longres.cfm?sk=23026.0 Mail and Guardian online.com, “Downturn costs 8,200 mining jobs in Zambia”, March 2, 2009 http://www.mg.co.za/article/2009-03-02-downturn-costs-8nbsp200-mining-jobs-in-zambia Shapi, Shacinda, “Zambia to Raise Stake in Copper Mines”, Reuters, March 20, 2009, http://www.reuters.com/article/companyNews/idUSLK63839520090320 World Trade Organization, “Trade Policy Review for Zambia” July 27 and 29, 2009 http://www.wto.org/english/tratop_e/tpr_e/tp319_e.htm Credit Rating Fitch http://www.fitchratings.com/corporate/sectors/issuers_list_corp.cfm?sector_flag=5&marketsector=1&detail=&body_content=issr_list Moody’s http://www.moodys.com/moodys/cust/content/loadcontent.aspx?source=StaticContent/BusinessLines/Sovereign-SubSovereign/RatingsListGBR.htm&Param=ALL Standard and Poor’s http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/ratings_sov/2,1,8,0,0,0,0,0,0,0,4,0,0,0,0,0.html Memberships Financial Action Task Force http://www.fatf-gafi.org/pages/0,3417,en_32250379_32236869_1_1_1_1_1,00.html International Center for Settlements of investment Disputes http://icsid.worldbank.org/ICSID/FrontServlet?requestType=ICSIDDataRH&reqFrom=Main&actionVal=ViewContractingStates&range=A~B~C~D~E International Federation of Accountants http://web.ifac.org/about/member-bodies Multinational Investment Guarantee Agency http://www.miga.org/quickref/index_sv.cfm?stid=1577 United Nations Convention Against Corruption http://www.unodc.org/unodc/en/treaties/CAC/signatories.html World Intellectual Property Organization http://www.wipo.int/members/en/ World Trade Organization http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm