2002. DIVESIFICATION-FORUM REPORT

Government of the The Zambian Economics Association
Republic of Zambia Donor Community of Zambia
Summary
WORKSHOP REPORT
DEEPENING ECONOMIC DIVERSIFICATION IN ZAMBIA
Towards the Transformation of the Copperbelt
03-05 JUNE 2002
Edinburgh Hotel, Kitwe
Compiled by:
The Economics Association of Zambia
Lusaka, 18 June 2002

Deepening Economic Diversification In Zambia: Towards the Transformation of
the Copperbelt. 03-05 June 2002,Edinburgh Hotel ,Kitwe. Summary Report by
EAZ
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1. Introduction
In general, many developing countries have diversified and have reduced economic
dependency on primary commodities during the past 20 years. This does not include
Zambia, which is still dependent on copper for about 90% of its foreign exchange
earnings. This has left the country and the Copperbelt Province in particular highly
vulnerable to shifts in the performance of copper mining.
The Zambian Government, the World Bank, the Economics Association of Zambia
(EAZ) and other concerned stakeholders agreed to hold a consensus building
workshop to come up with practical policies, strategies and action plans for the
diversification of the Copperbelt.
This report is a synthesis of the “Workshop on Deepening Economic Diversification
in Zambia – Towards the Transformation of the Copperbelt” that took place on the
Copperbelt from the 3rd
to the 5th
June 2002.
The workshop was the first initiative towards the formulation and implementation of a
strategy for diversifying the Zambian and Copperbelt economy, away from
dependence on copper mining to broad-based economic growth.
Recognising that economic diversity must quickly succeed, it was the intention of the
stakeholders that from this workshop, feasible and practical solutions that can be
commenced within six months would be identified.
The objectives were therefore:
- To define and identify specific Copperbelt diversification prospects and
opportunities for implementation in the immediate and medium term.
- To review and consider current policy and institutional constraints and
impediments to each of these diversification prospects.
- To develop a credible action plan for initiating implementation within six
months for the identified and agreed upon feasible projects.
This workshop had strong support of the Government. The Republican President
opened the workshop and participated in the morning deliberations of the first day.
The Vice-President participated during the final (third) day before he officially closed
the workshop. Similarly three Cabinet Ministers, two Deputy Ministers and five
Permanent Secretaries fully attended the workshop.
All the key Co-operating Partners (both bi- and multilateral) were also in attendance.
In addition the presence of international guests speakers from 13 countries enriched
the workshop deliberations with successful experiences of their respective countries.
2. Workshop Methodology
The overall facilitation was carried out by the International Capital Corporation (ICC)
in conjunction with the Economic Association of Zambia.

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The workshop combined presentations in plenary sessions and discussions on topical
issues that relate to diversification. Focus was also put on concrete proposals and
action plans for possible implementation within six months after the workshop. To
this end, working groups were tasked to look at the following themes:
• Agriculture, forestry and fisheries
• Manufacturing (including agro-processing)
• Gemstones and other non-traditional mining
• Tourism and conferencing
• Export processing zones
• Financial services (including micro-finance)
The workshop drew participants from a broad spectrum of stakeholders, including the
local private sector, international investors (mainly from the Far East, Africa and
Europe), the Donor Community, relevant Government ministries and other key
stakeholders. Altogether, a total of 262 participants attended the workshop.
3. Major Workshop Recommendations and Outcomes
3.1. A Strong Case for Diversification
Over the past decade, the Zambia government has adopted and implemented measures
that aimed at:
• Ensuring macroeconomic stability through monetary and fiscal reform.
• Creating an enabling environment for a private sector-led economic growth.
• Liberalising the economy.
Some significant successes have been achieved over the decade in reducing inflation
from over 100% to less than 20%, increasing the value of non-traditional exports from
about $50 million to over $250 million.
Overall, the economy has, however, continued to experience marginal growth rates.
The real GDP growth rate for the period 1994 to 2001 was only an average of 0.1%.
During the same period, the population grew by an average of 2.9% per annum and
the GDP per capita therefore declined. Formal employment also declined from 1990
(537,300) to 2000 (476,400) by 11.3%. Most sectors (apart from transport and
communications as well as community, social and personal services) registered a
decline in employment levels.
A number of reasons; such as weak budgetary controls despite the cash budget, failure
to fully implement the Public Sector Reform Programme, inappropriate policy
sequencing and implementation, and successive draughts; were blamed for the poor
performance of the economy. In addition, declining copper production and prices
exacerbated the situation.

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The current problems experienced with the privatised copper mines and an anticipated
decline of copper prices and production could in the next few years lead to further
economic contraction. Thus the increased need for diversification cannot be
overemphasized. This decline is a major challenge, both to Zambia as a nation and to
the Copperbelt as a region.
3.2. Building on Comparative Advantages
A successful and sustainable diversification programme for the Copperbelt lies in
adopting an outward looking strategy that builds on the comparative advantages of the
country and the Copperbelt. Some of these advantages were identified as:
• Availability of considerable land and adequate rainfall that can be harnessed
for agriculture.
• Rich deposits of gemstones.
• High hydroelectric potential that can result in the production of cheap
electricity with possibilities for increased exports.
• The high urbanisation of the Copperbelt, availability of a skilled workforce
and a relatively developed infrastructure.
• A relatively huge (domestic) population
• Proximity to the huge export markets of Angola and Congo.
3.3. Ensuring an Appropriate Policy Framework
Constraints: There are a number of factors working against diversification in Zambia.
These include the following:
• Macro-economic instability
• The country is landlocked which increases inland transportation costs
• The economic policy legacy of state control and regulation is not completely
over amongst key stakeholders
• High cost of production
• Failure of the Public Service Reform Programme in streamlining the civil
service and enhancing accountability and efficiency.
• Zambia still has a poor investment climate despite recent liberalisation and
privatisation. The bi-annual Institutional Investor publication voted the
country’s risk rating to be below Africa’s poor average of 18 out of 100.
Actions Required: In order to ensure faster growth and stronger diversification,
Zambia must implement the following policies:
1. Reduce inflation to less than 10%. Interest rates and exchange rate levels are
symptoms of an underlying problem, i.e. the major one being government
deficits that lead to high interest rates and weak currencies. Deficit financing
forces the government to borrow on the domestic market and this crowds out
the private sector. The solution for this dilemma was seen in a systematic and
gradual medium term strategy for reducing government borrowing.

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2. Real exchange rate depreciation ought to be brought to an acceptable level that
increases the competitiveness of the country’s exports.
3. Lower taxes to provide cheapest incentives to the private sector. Taxes taken
can be given back in the form of subsidies and incentives. This will help
formalise the economy (e.g. gemstone mining), build compliance and reduce
corruption. Lowering taxes can be achieved by reducing public expenditure
from a current rate of 33% to below 25%.
4. Reduce the hassle factor. Historically, Zambia is a high-hassle economy with
the previously highly profitable copper industry not being affected. Today,
nothing as highly profitable as copper will emerge if the hassles are not
reduced. This reduction can be achieved through deregulation, a guarantee of
quick procedures, and an attitude of ‘loving entrepreneurs’.
5. Provide good basic services. Transport is vital for landlocked economies and
cutting petroleum duties can reduce costs of production. In addition,
government needs to improve access to good telecommunications and higher
education through private investment. Power is a big potential advantage and
should be provided cheaply and abundantly.
6. Attract entrepreneurs. Zambia needs people with skills in new technologies
and management sciences. If these skills are not locally available, they should
be imported and an enabling environment should be created to facilitate this.
These policy measures cannot be implemented simultaneously for the following
reasons.
• Firstly, the country needs to coordinate activities in a limited geographical
area, perhaps through the establishment of a ‘Free Zone’. The Copperbelt
provides an excellent opportunity for this.
• Secondly, the Government should prioritise, take a step-by-step approach in
order to monitor and get private sector feedback regularly along the way. A
progress council or public/private sector forum could be established to achieve
this.
• Thirdly, the country’s image should be promoted and guarded jealously as
mistakes are more publicised than successes.
• Fourthly, realistic goals should be set, both short- and long-term via a private
sector driven national visioning programme.
3.4. Mobilising Finance for Diversification
Apart from appropriate fiscal and monetary policies, the diversification of the
Copperbelt requires the enhanced mobilization of various types of financial
institutions. The current dominance of commercial banks tends to narrow down the

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range of financial products provided. The availability of other financial intermediaries
would therefore avail diverse financial instruments to the province.
The government should consider introducing an apex body, where the private sector
and Government create a development fund to facilitate investments. Similarly, there
is need to urgently enhance property rights by conveniently legitimising property
ownership, quickening the allocation of title deeds for houses and access to cheap
valuation reports for property. This would provide an avenue for people to borrow as
they could place collateral.
4. Priority Sectors for Diversification
4.1. Agriculture
The Copperbelt Province is a high rainfall area, with an annual average of more than
1,200mm. It is characterized by relatively fertile soils with good potential for the
production of millet, cassava, sorghum, beans and groundnuts and cash crops such as
coffee and tea. The rivers and lakes in the province offer good opportunities for fish
farming. The available perennial streams could also be utilized for small and large-
scale irrigation.
However, the share of the Copperbelt in agricultural activities has historically
remained insignificant in almost all respects. For example the province has 47 percent
of its total area classifies as agricultural land. However, only 19 percent of this land is
under cultivation. The province relies on crop production with limited livestock
output. The province imports most of its maize, beef, dairy and other requirements
from other provinces. Although fish consumption is high on the Copperbelt, there is
limited fish production and this is mainly from the newly established fish farmers. A
JICA funded project in aquaculture at Mwekera produces fingerlings for distribution
to farmers mainly in Masaiti, Lufwanyama, Mpongwe and Chingola.
Although the Copperbelt is a major supplier of hardwood and softwood from its
extensive plantations and forests, these are being depleted due to unsustainable
exploitation and deforestation practices.
Opportunities: Smallholder outgrower schemes, commercial production of grains and
legumes and livestock production were identified as the most attractive options to
focus on and attract private sector investment. In addition, the high potential for
forestry and aqua-culture was recognised. Resettlement schemes were also identified
as important pre-requisite for relocating retrenchees and supporting their livelihoods.
Constraints: The main constraints to diversification in these segments relate to
finance, infrastructure, macroeconomic stability, fiscal regime & input costs,
marketing arrangements, institutional support, human resources, access to land and
research and technology.
Action Plans: To remove cross-sectoral and segment-specific constraints the
agricultural Working Group allocated several implementation actions to various

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stakeholders. Specific follow up action was also suggested for the various
stakeholders. Roles and responsibilities were defined as follows:
Private sector
• Formulate and present viable agricultural projects to lenders
• Engage Government and donors to prioritise agricultural development on the
Copperbelt
• Take a lead in initiating the development of a Copperbelt Development
Agency
Central Government
• Investigate opportunities to provide affordable finance to the agricultural
sector
• Increase spending on infrastructure in agriculturally productive areas including
water development
• Provide a macro economic environment conducive to development
• Re-appraise fiscal regime to reduce input costs to agriculture (excise duty on
fuel, electricity tariffs and VAT on farm tools & spares)
• Focus institutional support where it is most needed, particularly in terms of
training, research and technical support
Local Government
• Support in the prioritisation and implementation of the rehabilitation of
infrastructure
• Monitor and control environmental degradation
• Coordinate land delivery systems and manage the conflicting requirements of
urban, forestry and other agricultural development partners/NGOs/civic
societies
• Support skills development, training and re-training through support to
existing and new institutions.
• Sensitisation of communities to the challenges of the restructuring process.
4.2. Manufacturing
The Copperbelt used to enjoy a fair share of industries and prosperity in the
manufacturing sector from the 70s and early 80s. The decline in mining activities and
it’s uncertain future has had an adverse effect on the manufacturing sector resulting in
the collapse and or relocation of major manufacturing firms. This has been severe
more especially in the towns of Ndola and Luanshya.
The workshop identified the following constraints as retarding high and sustainable
growth of the manufacturing sector:
• High interest rates that are making borrowing expensive
• Difficulties in sourcing capital at reasonable rates for long term investment
• High energy costs for electricity and fuel
• Restrictive land tenure policy
• Poor infrastructure

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• Additional/extra transport costs on account of Zambia's geographical location
• Unfair competition (subsidized imports emanating from subsidized
production) from regional and international partners;
• Unstable exchange rates that make business planning difficult
• Lack of secondary industries
• Labour laws that do not encourage investment and productivity
• The overall impact of HIV/AIDS
Opportunities were also identified in cotton based textiles and garments, plantation
timber and wood products, chemicals using available materials and agro processing
Given the constraints and opportunities, the following recommendations were made:
• Privatise (forests) and give longer term security of tenure
• Review the Land Tenure Act and amend the land tenure system to attract
investment
• Concessional finance to be made available
• Introduce investment, and export incentives for industry such as lowering
corporation taxes
• Reduce electricity tariffs
• Introduce supportive policies for local manufacturing companies e.g. introduce
measures that ensure that Government procures most of its requirement from
local manufacturers
• Implement the concept of Tax Free Zone in Ndola and Luanshya
• Introduce Copperbelt Development Authority to consolidate and push forward
the process. Private sector funded and run with permanent, high caliber staff
capable of representing manufacturing at the highest level
• Improve infrastructure such as roads/rail and reduce transport costs
• Simplify, and make more "user friendly" the current Duty Drawback Co-
efficient system
• Enhance tax allowances for equipment and plant
• Support for training in technical, business and management skills
• Full integration of trade and economic policies to support growth and
development of local industry
• Change of national mindset to encourage export and productivity orientation
• Review labour laws to encourage investment, improve productivity and create
flexibility
4.3. Gemstones and Non-copper Mining
In some gemstones, Zambia has the largest reserves in Africa. The emerald reserves
are the second largest in the world with the quality almost equal to that of Colombia;
amethyst reserves are the largest in Africa and of finest quality in the world;
aquamarines reserves are the largest in Africa and are of good quality; tourmaline are
of modest size and well-accepted quality.
It is estimated that about $20.3million worth of export earnings are generated from
gemstones annually. With improved exploration and use of basic technologies, the

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earnings could move from about $20.3million to $250million per year, whereas value
adding through processing could increase this amount to $830million per year.
Value adding (which is a function of skill, equipment, market linkages, finance,
infrastructure, and appropriate regulations) therefore promises substantive foreign
exchange earnings for the country.
There are a number of critical factors for the success of the gemstone industry in
Zambia and the Copperbelt:
• Creation of an enabling environment in which professionalism can flourish.
• Appropriate regulation and administration: the current legislation is reasonable
but needs amending, the requisite rules and regulations have not yet been
developed, Ministries also need better structures, systems, and resources to
effectively enforce the law and provide services.
• Access to appropriate finance through borrowings/investment remains a major
constraint more especially for local investors.
• There is need for an optimum structure for the sector. Currently, there is a lot
no fragmentation without a critical mass in licensing, production or
distribution. The administration of the Minerals Act hinders consolidation;
mining rights are often awarded to people who are absent (non-residents) or
who lack resources and technology; joint ventures do not seem to be working
(80% breakdown) partially due to some “undesirable investors; informal and
illegal operators also distort the market and hamper professional development,
e.g., through cash sales and smuggling; firms cannot get sufficient material to
service the needs of buyers due to the structure of sector.
• Supportive infrastructure: mines are on the average far from roads and
electricity, health and education facilities, mining consultants (available at the
school of Mines), plant hire and training facility.
• Necessary technology (equipment and know-how): Lack of information - e.g.,
in best practice, benchmarking, markets, new mining technologies possible
(e.g. underground mining), blasting that reduces value by up to 50% and
management development (in financial, technical, personnel and marketing
skills).
• Appropriate and competitive human resources (managers and artisans): Skills
shortage with low productivity but workers trainable, skilled labour costly the
country with a cutter in Zambia earning $400 per month ($200-300 in
calibrated stones, $100 in amethysts) - China $50 and India $25. Mining
engineers are available, but not fully acquitted with the full range of gemstone
techniques, geologists are also available whereas gemmologists are lacking. It
is uncertain whether government is welcoming to the range of workers foreign
investors want to bring in.
Suggestions were made as to the necessary actions for coming up with a strategy:
• Set up strategy task force: government, private sector (foreign investors,
domestic firms), Ministry of Mines and Mineral Development, donors,
financial sector.

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• Conduct market research that will look at market niches, channels of
distribution, buyers’ behaviour, competitors’ study, market entry barriers and
strategies.
• Hold workshop to disseminate results and to sensitise stakeholders for next
phase.
• Conduct supply side surveys: Components could include investors,
government and donor plans, gemstone reserves, mining, processing, trading
activities, legislation and regulations, ministries and institutions,
infrastructure. The topics could include capacity, skills shortages, constraints,
international best practice, benchmarking and recommendations.
• Gemstone strategy workshop, followed by strategy preparation.
The elements of the strategy and actions could include:
• Policy, legislation (mining and investment) and regulations to assist
particularly the precious stones sector which needs substantial new (foreign)
investment. Termination of dormant licences and/or getting licensees to
merge. Undertaking aerial magnetic surveys of the emerald areas to identify
poor and potential areas; and redefine plots. Undertake professional
investment promotion and counselling of investors. Consider making it
mandatory (over time) for investors to undertake some downstream processing
and/or release material into the local downstream industry.
• Administrative systems with less political, commercial, and unethical
pressures. Improved coordination among key stakeholders: MMMD,
immigration, police, ZRA could be achieved by operationalising the
Copperbelt regional bureau and extending it into a one-stop-shop (including,
for example, export documentation; develop infrastructure).
• A Mining Development Fund that could facilitate easier access to finance.
• Development of market linkages through fostering of a private sector
gemstone exchange.
• Strengthening the infrastructure base for gemstone mining
• Improved technical and management training (the proposed training-cum-
production facility by ILO/TEVETA be given attention)
• Facilitation of security arrangements (in which the private sector would play
a major role)
• Value adding: Enhancing and providing support to gemstone cutting and
polishing.
A technical working group was set up that would be responsible for the development
of a detailed working group.
4.4. Tourism and Conferencing
Tourism
Tourism has the potential of becoming one of Zambia’s major foreign exchange
earners given an enabling environment supported by appropriate policies, institutional
and legal framework adjustments and the addressing of crosscutting issues. Tourism

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being labour intensive, it can create many jobs and promote economic growth in the
long run.
Zambia is endowed with a number of tourist attractions such as the Victoria Falls,
Lake Kariba, Game Ranches, 19 national parks with abundant wildlife, 34 game
management areas, rich cultural and national heritage sites, abundant water resources
and above all, a beautiful climate. According to statistics obtained from the Ministry
of Tourism, Environment and Natural Resources, tourism in Zambia at the moment
contributes about 2.1% of the Gross Domestic Product (GDP). The foreign exchange
earnings have been rising steadily from about $88 million in 1999 to a projection of
$129 million for 2002.
Opportunities: The Copperbelt, which was the focus for the forum was considered to
have potential for tourism. There are several tourist attractions, which can be
exploited. These include: Nchanga Open Pit mine, Konkola deep mining, Doug
Hammershoujd memorial site, Makoma Dam, Luanshya, Lake Kashiba in Mpongwe
–sunken lake, Lake Chilengwa Nalesa in Masaiti-sunken lake, Nchembe Bird
Sanctuary in Kalulushi, Slave tree, Ndola. There is also a great potential for
developing some of the vast land into Game Ranches and possibly establishing a
mining museum depicting the history of mining in Zambia.
Constraints: The slow growth of tourism is attributed to a variety of factors, which if
adequately addressed could help the tourism industry. These include the following:
• Inadequate infrastructure in the potential tourist centres
• Costly and cumbersome flight connections and poorly maintained ports of
entry
• Lack of affordable financing for long term development for local investors
• Inconsistencies in rates and taxes for the different areas
• Poor programme implementation
• Poor health facilities
• Delays in acquiring land for infrastructure development
Recommendations: It is possible to exploit the vast opportunities on the Copperbelt
by providing a conducive environment. The recommendations made in this regard are:
• Decentralization of power to the local authorities. This would enable the Local
government to be more accountable and more focused on the local projects. If
the Central Government gave the local government leeway to approach donors
for funding directly, they would be more innovative and be able to highlight
the areas where investment from both local and foreign investors would be
best directed. Business partnerships between the investors and the local
business community could be encouraged. The partnerships could in turn
enable the local authorities to benefit by way of taxes e.g. company taxes and
rates on land.
• The concept of Community Based Natural Resource Management (CBNRM)
can be applied where the investors pay royalties and levies for the utilization
of the community land. The community however should be sensitised on
alternative uses for marginal land and the importance of preserving natural

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resources. They should also be aware of the value of investment and its
benefits for the community so that they are more supportive of the investors.
• Reducing licensing procedures in the tourism sector would alleviate the
problems that investors encounter in their operations. Currently, to construct
and operate a lodge one needs about twenty permits and has to renew these on
an annual basis. It would possibly be easier to allocate one permit for almost
all the activities and extend the renewal period to about three years. The
number of organizations involved in giving out these permits could also be
reduced.
• The number of police roadblocks and checkpoints on our roads could easily
create the impression of the risk to security and is often inconveniencing for
the tourists.
• Encourage the press to avoid negative reports on the country as a whole in
order not to discourage potential investors and tourists to Zambia e.g. security
risks and perceived political instability.
• Overall, government should avail funding through lending institutions to
encourage investment in the tourism sector.
• Specific incentives for tourism such as those given to Livingstone could also
be extended to the Copperbelt.
Conferencing
Copperbelt opportunities in conferencing could be exploited though the hosting of big
conferences, regional meetings, exhibitions and fairs. Big sporting events and
festivals like the Africa Cup, COSAFA Cup, Olympics, Commonwealth games, etc.
could specifically be targeted in this regard.
Various towns on the Copperbelt boast of developed sporting facilities, which were
prominent under the Zambia Consolidated Copper Mines. The proximity of the major
towns on the Copperbelt is an added advantage in the networking.
Business associations such as the Zambia Chamber of Commerce and Industry and
charitable organizations like the Rotary International could also hold their meetings
on the Copperbelt.
The tourism industry could take advantage of conferencing by taking guests around to
the numerous tourist sights. The combination of business with sightseeing promises
considerable prospects.
5. Workshop Recommendations and Way Forward
The workshop concluded that the Copperbelt economy has a number of key
competencies required to diversify away from copper mining. The Copperbelt’s
skilled human resource base, good rainfall and soils, a large internal consumer and
industrial market, good opportunities for international trade (proximity to DRC and
Angola, central location in the SADC region, and access to substantial regional and
international markets), as well as the relatively developed energy and communications
infrastructure all represent immense assets for the diversification process.

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The Workshop further noted that diversification is best achieved where clusters are
developed with a supportive framework of incentives. In this connection, therefore,
five lead-clusters were found to have great potential for diversifying the Copperbelt if
nurtured very well, namely horticulture, textiles and garments, light engineering,
distribution/marketing services and jewellery manufacturing. It was further observed
that Export Processing Zones (EPZs) could offer catalytic incentives to enhance the
success of clusters and that the regulatory framework for EPZs should be highly
transparent. The planning, implementation, monitoring and evaluation of the overall
economic diversification process could also be achieved through a decentralized
framework to enhance ownership and sustainability. It was also submitted that
clusters and EPZs needed to be adequately researched, prior to implementation to
avoid costly economic mistakes.
The Workshop noted that all countries were competing for investment funds, thus it
was imperative upon government to create an enabling environment to attract foreign
investors. A number of constraints were identified with a call on government to
among other things reduce its borrowing as it was raising interest rates and crowding
out the private sector in the process. It was also noted that current exchange rates were
making imports cheap and exports expensive
The Workshop further agreed that the Government needed to strategise together with
the private sector and ensure that there was policy clarity and consistency. The
Government was also called upon to reduce on the requirements and number of
permits required to establish business in Zambia and ensure that the Zambia
Investment Centre was more innovative.
Finally the workshop agreed that there was need to see results within the next six
months and that a vehicle for achieving the above objective: the Copperbelt
Development Authority (CDA) should be created and should be led by the private
sector.
To co-ordinate implementation of all the actions plans and recommendations, a
Copperbelt Development Agency will be required. This would be an autonomous
Copperbelt based agency with links to the Investment Centre. All key stakeholders
would to be represented. It was further recommended that a representative from the
private sector chair the agency.
Three key functions of such an agency would be:
• Coordination of stakeholder actions required improving the competitive
environment on the Copperbelt.
• Act as a “one stop shop” for investors on the Copperbelt.
• Facilitate intuitional linkages.
The responsibilities of the agency would thus include attracting investment through
marketing, negotiating fiscal incentives with Government for investors, facilitating
access to land (possibly through a Land Development Fund), facilitating development
of water resources, facilitating access to affordable finance and coordinating and
attracting infrastructure development.

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6. Issues for the Attention of Government and Co-
operating Partners
The following issues require special mention in the deliberations between the
Zambian Government and its Co-operating Partners.
• A stable macro-economic framework is a pre-requisite for the diversification
of the Zambian economy and the Copperbelt Province. To this end, the policy
framework and international support requires to take cognizant of this fact. A
reliable balance of payment support, long term approach to commitments and
a spirit of learning by doing will be crucial in this context.
• The Poverty Reduction Strategic Programme as well as the anticipated
National Development Plan will be key mechanisms for the overall
implementation of the diversification programme. Meeting the administrative
and funding requirements of these strategic initiatives will therefore be a key
prerequisite for success.
• Specific areas for funding in the context of diversification will be the
following:
- The productive and export sector of the Copperbelt Province. This
includes high value crops under outgrower schemes, large scale grain
and legume production (such as Mpogwe Development Scheme),
livestock production, fish farming and forestry, agro-based
manufacturing, gemstone mining and processing.
- Technology transfer and increased access to managerial expertise.
- Access to markets to external markets, particularly for finished and
semi-finished products.
- The setting up of Export Processing and Tax Free Zones.
- The Copperbelt Development Agency.

2002. DIVESIFICATION-FORUM REPORT

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