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USAID Information:
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Zambia
The Development Challenge: Zambia's transition to multiparty democracy has been accompanied by fundamental economic reforms in an effort to establish a liberal political economy. The political and economic reform process has been slow and has been impeded by the country's legacy of authoritarian leadership, historical over-dependency on copper, limited foreign and domestic investment, and corruption. Furthermore, HIV/AIDS has severely impacted the social and economic sectors. Zambia ranks 163 out of 175 countries on the 2003 United Nations Human Development Index. Life expectancy is under 40 years; under-five mortality is 168 per 1,000 live births; and there is a high prevalence of HIV/AIDS (16% of the adult population). Seventy-three percent of the population lives below the official poverty line. Zambia's development progress has been constrained by lack of economic diversification, periodic drought and floods, and budgetary weaknesses.
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Please note: All documents are in pdf format |
The World Bank estimates that in 2002 Zambia's per capita domestic product was $351. External debt was estimated at $5.419 billion in late 2002, with debt service absorbing 15% of export earnings. Over 60% of the country's debt is owed to multilateral institutions. In late 2000, Zambia successfully reached the next stage for Enhanced Heavily Indebted Poor Countries (HIPC) debt relief. However, the Government of the Republic of Zambia (GRZ) deferred proceeding to the final stage from December 2003 to June 2004. Should the GRZ reach the final stage of the HIPC process, the benefits will include substantial debt relief and a reduction in Zambia's average annual debt.
The GRZ has approved a Poverty Reduction Strategy Plan (PRSP), a comprehensive economic and social plan drawn up with the participation of donors and other stakeholders. However, implementation has been slow due to budgetary constraints. One of the PRSP's key priorities is to promote growth of a vibrant private sector that will contribute to economic and export growth. The PRSP also gives prominence to the issue of good governance, with the principle of zero tolerance of corruption by political leaders. According to the PRSP, the GRZ is very committed to improving public expenditure management, strengthening the Anti-Corruption Commission, and implementing the National Capacity Building Program for Good Governance. The GRZ is focused on increasing the access of the population to justice, decentralizing its functions, and improving communications between government institutions and Zambian citizens. Zambia's Medium Term Expenditure Framework, linked to the PRSP, will guide the annual budget process over a three-year time horizon.
Zambia has many active non-governmental organizations (NGOs) and civic society groups, and there are several independent newspapers and radio stations in addition to the two state-owned newspapers and the Zambia National Broadcasting Corporation. The current government's top three priorities are the fight against corruption, promotion of agriculture in a more diversified economy, and combating HIV/AIDS. The Zambian President also introduced free universal primary education in 2002.
The United States' primary national interest in Zambia is economic prosperity to support Zambia's development as a stable, peaceful, and prosperous free market democracy, thus enhancing the stability of southern Africa. With ongoing conflict within its largest neighbor (the Democratic Republic of Congo) and political and economic instability in Zimbabwe, a stable, democratic, and prosperous Zambia is important for the United States and the region. As a country with significant natural resources, a market-based economy, and a multi-party democratic political system, Zambia can play a significant role in promoting peace and stability in a region of growing importance to the United States. A peaceful, democratic Zambia will assist in the global war against terror by denying terrorists refuge and financial or other support.
The USAID Program: The new USAID Country Strategic Plan for Zambia for 2004-2010 outlines an innovative approach to help Zambia address its challenges and accelerate growth. The vision of this new strategy, "Prosperity, Hope and Better Health for Zambians," was developed with participation from the Zambian government and a wide range of private sector and civil society stakeholders. The data sheets that follow cover the five objectives for which USAID is requesting FY2004 and FY2005 funds. These five objectives concentrate on increasing private sector competitiveness in agriculture and natural resources; improving the quality of basic education for more school-aged children; improving the health of Zambians; and holding the GRZ more accountable. The fifth objective provides additional support to the GRZ's multisectoral HIV/AIDS program with a view to reducing the impact of HIV/AIDS. The country strategy hopes to ensure gender-sensitive, people-level improvements and information and communications technology are incorporated throughout the portfolio. USAID's five objectives directly contribute to several sectors and cross-cutting areas of the PRSP.
USAID hosted a workshop for the government, private sector, and NGOs to raise awareness and understanding of the concept and practice of public-private partnerships. As implementation of the new strategy progresses, USAID will seek to leverage international and local private resources to enhance total development aid and increase its efficiency.
Other Program Elements: The activities outlined in the following data sheets are complemented by several Presidential Initiatives and other programs. The Africa Bureau manages the Presidential Initiatives of Trade for African Development and Enterprise program and the Initiative to End Hunger in Africa. USAID's trade competitiveness "hub" for Southern Africa and the regional program for East Africa both address issues related to regional trade facilitation. USAID's Regional Urban Development Office in South Africa is exploring the possibility of obtaining Development Credit Authority loan guarantees for Zambia in partnership with Houses for Africa and Stanbic Bank. USAID's Economic Growth, Agriculture and Trade Bureau provides technical assistance for regulation and rural electrification through energy sector partnerships. The Food for Peace office of USAID's Bureau for Democracy, Conflict and Humanitarian Assistance (DCHA) provides emergency food aid through the Consortium for the Southern African Food Emergency program. The U.S. Department of Agriculture provides technical assistance for pest risk assessments for the entry of horticultural products into the U.S. market.
Zambia is a focus country under the President's Emergency Plan for AIDS Relief (PEPFAR). All proposed HIV/AIDS activities are being integrated into PEPFAR and are subject to the approval of the U.S. Global AIDS Coordinator. Additional funding from the Global HIV/AIDS Initiative account is anticipated for both FY 2004 and FY 2005. Zambia also has been a recipient of funds from the President's Initiative to Prevent Mother-to-Child Transmission of HIV/AIDS (PMTCT), which will be incorporated into PEPFAR in FY 2004. DCHA's Office of Private and Voluntary Cooperation has funded grants to several U.S. private voluntary organizations in Zambia. Education activities are complemented by the U.S. Presidential Africa Education Initiative. USAID/Zambia has also received funds from the Anti-Corruption Initiative.
Other Donors: Overall development assistance to Zambia totals about $310 million a year. The United Kingdom and the United States are Zambia's first and second largest bilateral donors, respectively. Other major bilateral donors and their principal areas of focus include Germany (small and medium business development), Norway (rural agribusiness development and the environment), and Japan (health and infrastructure). Multilateral donors include the United Nations agencies, the European Union, the World Bank, the International Monetary Fund, and the African Development Bank. Donor coordination is excellent. USAID collaborates closely with other donors in implementing health, education, agriculture, and democracy and governance programs. There are several jointly-supported economic growth initiatives in Zambia: the Agricultural Consultative Forum, the Zambia Business Forum, Private Sector Donors' Group, and the Agriculture Donors' Group. All donors support the national Health Strategic Plan and sit on the donors' Health Sector Committee.
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