1) Zambia faces several key structural issues that constrain its economic growth including overdependence on copper mining, low agricultural productivity, inadequate infrastructure, poor access to credit, and high unemployment.
2) To address these challenges, Zambia is pursuing policies to promote investment and diversification through special economic zones, incentives for foreign investment, and liberalizing financial markets.
3) However, Zambia still faces headwinds including falling copper prices, rising debt levels, and a challenging macroeconomic environment that threaten progress toward its goal of becoming a prosperous middle-income country by 2030.
These are slides from a revision presentation covering aspects of Extract 3 for the OCR F585 June 2016 Global economy paper. The presentation focuses on progress in human development in Zambia, volatile copper prices and the terms and trade and the issue of whether Zambia is experiencing a natural resource curse.
This is a three slide economic profile for Zambia. It looks at the main macroeconomic indicators and provides an evaluation of the main barriers to growth and development facing this commodity rich country. Can Zambia - which has reached lower middle income status - successfully transition away from an economy that is heavily reliant on copper mining?
These are slides from a revision presentation on aspects of Extract 4 in the OCR F585 June 2016 Global Economy paper. The main focus of the presentation is on sources of finance for developing countries and in particular the economics of the trend rise in remittances as external finance. To what extent is the net outward migration of younger skilled workers from many developing countries a barrier to their growth and development?
Barriers to Economic Growth and Developmenttutor2u
This is a revision presentation covering examples of barriers ti economic growth and development in emerging and developing countries. In their revision students should consider factors such as:
Poor infrastructure
Human capital inadequacies
Primary product dependency
Declining terms of trade
Savings gap; inadequate capital accumulation
Foreign currency gap and capital flight
Corruption, poor governance, impact of civil war
Population issues
This is a three slide short profile of the macroeconomic and development performance of South Korea. The country has successfully achieved high income status and membership of the OECD. The overall macroeconomic numbers are enviably benign - especially low unemployment, continued growth, low inflation and a strong external position. That said the economy also faces many longer term challenges and threats and the South Korean government is attempting to bring in reforms to sustain and improve their competitiveness. This profile is designed for A level economics students.
Vietnam is a fast-growing lower middle income country that has received considerable inward investment in recent years. This revision webinar for A-level Economics looks at the contextual evidence on Vietnam and compares and contrasts their current growth with China. It analyses some of the key growth drivers and evaluates barriers to growth including environmental challenges and vulnerability to external economic shocks.
These are slides from a revision presentation covering aspects of Extract 3 for the OCR F585 June 2016 Global economy paper. The presentation focuses on progress in human development in Zambia, volatile copper prices and the terms and trade and the issue of whether Zambia is experiencing a natural resource curse.
This is a three slide economic profile for Zambia. It looks at the main macroeconomic indicators and provides an evaluation of the main barriers to growth and development facing this commodity rich country. Can Zambia - which has reached lower middle income status - successfully transition away from an economy that is heavily reliant on copper mining?
These are slides from a revision presentation on aspects of Extract 4 in the OCR F585 June 2016 Global Economy paper. The main focus of the presentation is on sources of finance for developing countries and in particular the economics of the trend rise in remittances as external finance. To what extent is the net outward migration of younger skilled workers from many developing countries a barrier to their growth and development?
Barriers to Economic Growth and Developmenttutor2u
This is a revision presentation covering examples of barriers ti economic growth and development in emerging and developing countries. In their revision students should consider factors such as:
Poor infrastructure
Human capital inadequacies
Primary product dependency
Declining terms of trade
Savings gap; inadequate capital accumulation
Foreign currency gap and capital flight
Corruption, poor governance, impact of civil war
Population issues
This is a three slide short profile of the macroeconomic and development performance of South Korea. The country has successfully achieved high income status and membership of the OECD. The overall macroeconomic numbers are enviably benign - especially low unemployment, continued growth, low inflation and a strong external position. That said the economy also faces many longer term challenges and threats and the South Korean government is attempting to bring in reforms to sustain and improve their competitiveness. This profile is designed for A level economics students.
Vietnam is a fast-growing lower middle income country that has received considerable inward investment in recent years. This revision webinar for A-level Economics looks at the contextual evidence on Vietnam and compares and contrasts their current growth with China. It analyses some of the key growth drivers and evaluates barriers to growth including environmental challenges and vulnerability to external economic shocks.
OCR F85 Global Economy June 2016 Key Definitionstutor2u
This resource brings together many of the key definitions for the June 2016 OCR F585 Global Economy paper. There are many more resources for this exam available from the Tutor2u website www.tutor2u.net/economics
The middle income trap is when countries that have achieved middle-income status often experience a growth slowdown and a stagnation in the growth of real per capita incomes
Pearson Edexcel International A Level Business (431) 1 Growing economies Powe...Revisionstation
This is part of the Edexcel International Business A Level teaching bundle available from Revisionstation.
a) Characteristics of developed, developing and emerging
economies.
b) Growing economic power of countries within Asia, Africa and other
parts of the world.
c) Implications of economic growth for individuals and businesses:
• trade opportunities for businesses
• employment patterns.
d) Indicators of growth:
• gross domestic product (GDP) and GDP per capita
• human development index (HDI).
Economic Growth and Development in Ethiopiatutor2u
This is a revision presentation on aspects of growth and development in the fast-growing country of Ethiopia. There are many ways in which the Ethiopian economy can be applied to different areas of the A level economics course.
Growth in emerging markets is slowing. This is concerning. Senior Economist Marcus Wright considers two questions. What are the problems in emerging market economies? Why does that matter to us?
China - A Country in Transition to a New Normaltutor2u
This is a revision presentation on key developments in the Chinese economy - designed for A level economics students preparing for their exams in June 2016
Updated presentation on aspects of factors affecting economic growth including the middle income trap. Designed as a resource for A2 macro - unit 4 Development Economics
Mexico is a fascinating country for students to look at as part of their studies in economic growth and development and macroeconomic policy. The country has an enviably low rate of unemployment and has made important progress in lifting per capita incomes for many of their 100 million plus inhabitants. But inequality remains very high, the economy is dominated by monopolies and there is also a huge informal, low productivity economy which needs to be addressed for future growth and development to be more inclusive. Can Mexico avoid a middle income trap?
This presentation covers some aspects of topical issues in trade and economic development. Designed for A2 economics students - links to some Financial Times videos with special reference to the work of Hidalgo and Hausmann and their index of economic complexity
http://pwc.to/11CB1Xq
Dans son étude « Working Capital Survey 2013 », PwC montre que la performance BFR (Besoin en Fonds de Roulement, soit la trésorerie mobilisée par l’activité) des entreprises mondiales s'est dégradée de 2 % par rapport à l'année dernière. Seule exception, les sociétés européennes ont amélioré leur situation, démontrant une corrélation entre PIB et niveaux de BFR.
OECD Skills Strategy - Building the right skills and turning them into better...EduSkills OECD
Of course, everyone knows being skilled is an advantage: Skilled workers are more productive and therefore tend to earn more and have better employment prospects. Greater productivity, in turn, is the foundation for growth. Failure to ensure a good skills match has both short- term consequences (you see skills shortages) and becomes a longer-term drag on growth and equality of opportunities.
The trouble is that there is no automaticity in these relationships: skills do not automatically translate into higher incomes and higher productivity. Success with converting skills into jobs and growth depends on:
whether we have a good understanding of what those skills are that drive strong, sustainable and balanced economic outcomes;
whether the right mix of skills is being taught and learned in effective, equitable and efficient ways;
whether economies fully utilize their skill potential;
and whether governments can build strong coalitions with social partners to find sustainable approaches to who should pay for what, when and how.
find sustainable approaches to who should pay for what, when and where
OCR F85 Global Economy June 2016 Key Definitionstutor2u
This resource brings together many of the key definitions for the June 2016 OCR F585 Global Economy paper. There are many more resources for this exam available from the Tutor2u website www.tutor2u.net/economics
The middle income trap is when countries that have achieved middle-income status often experience a growth slowdown and a stagnation in the growth of real per capita incomes
Pearson Edexcel International A Level Business (431) 1 Growing economies Powe...Revisionstation
This is part of the Edexcel International Business A Level teaching bundle available from Revisionstation.
a) Characteristics of developed, developing and emerging
economies.
b) Growing economic power of countries within Asia, Africa and other
parts of the world.
c) Implications of economic growth for individuals and businesses:
• trade opportunities for businesses
• employment patterns.
d) Indicators of growth:
• gross domestic product (GDP) and GDP per capita
• human development index (HDI).
Economic Growth and Development in Ethiopiatutor2u
This is a revision presentation on aspects of growth and development in the fast-growing country of Ethiopia. There are many ways in which the Ethiopian economy can be applied to different areas of the A level economics course.
Growth in emerging markets is slowing. This is concerning. Senior Economist Marcus Wright considers two questions. What are the problems in emerging market economies? Why does that matter to us?
China - A Country in Transition to a New Normaltutor2u
This is a revision presentation on key developments in the Chinese economy - designed for A level economics students preparing for their exams in June 2016
Updated presentation on aspects of factors affecting economic growth including the middle income trap. Designed as a resource for A2 macro - unit 4 Development Economics
Mexico is a fascinating country for students to look at as part of their studies in economic growth and development and macroeconomic policy. The country has an enviably low rate of unemployment and has made important progress in lifting per capita incomes for many of their 100 million plus inhabitants. But inequality remains very high, the economy is dominated by monopolies and there is also a huge informal, low productivity economy which needs to be addressed for future growth and development to be more inclusive. Can Mexico avoid a middle income trap?
This presentation covers some aspects of topical issues in trade and economic development. Designed for A2 economics students - links to some Financial Times videos with special reference to the work of Hidalgo and Hausmann and their index of economic complexity
http://pwc.to/11CB1Xq
Dans son étude « Working Capital Survey 2013 », PwC montre que la performance BFR (Besoin en Fonds de Roulement, soit la trésorerie mobilisée par l’activité) des entreprises mondiales s'est dégradée de 2 % par rapport à l'année dernière. Seule exception, les sociétés européennes ont amélioré leur situation, démontrant une corrélation entre PIB et niveaux de BFR.
OECD Skills Strategy - Building the right skills and turning them into better...EduSkills OECD
Of course, everyone knows being skilled is an advantage: Skilled workers are more productive and therefore tend to earn more and have better employment prospects. Greater productivity, in turn, is the foundation for growth. Failure to ensure a good skills match has both short- term consequences (you see skills shortages) and becomes a longer-term drag on growth and equality of opportunities.
The trouble is that there is no automaticity in these relationships: skills do not automatically translate into higher incomes and higher productivity. Success with converting skills into jobs and growth depends on:
whether we have a good understanding of what those skills are that drive strong, sustainable and balanced economic outcomes;
whether the right mix of skills is being taught and learned in effective, equitable and efficient ways;
whether economies fully utilize their skill potential;
and whether governments can build strong coalitions with social partners to find sustainable approaches to who should pay for what, when and how.
find sustainable approaches to who should pay for what, when and where
Whilst the debate over UK membership of the single currency is - by and large - decided, there is an ongoing economic discussion about whether membership of the Euro Zone is right for some of Europe's smaller and newer member nations. The Baltic States are all now members but countries such as Poland and the Czech Republic remain outside. This short revision video looks at some of the arguments for and against becoming a member nation of the Euro Zone.
This short revision presentation looks at examples of regulations in markets as part of interventions to address market failure. It also looks at some of the benefits and costs of tougher regulatory interventions.
Introducing Zondle - Free Games for Learningtutor2u
Zondle is a free web and mobile platform that empowers teachers to engage students and enhance learning.
Zondle empowers teachers: enabling them to create and share educational content to meet the specific learning needs of individual students.
Zondle engages students: motivating them and giving them ownership of their learning, through their choice of web and mobile games.
Zondle enhances learning: consolidating classroom work, preparing for high-stakes tests, all without any marking
Capital goods are goods that are used to make consumer goods and services. Consumer goods and services are products which satisfy our needs and wants directly. This short revision video explains the difference with examples.
This is a presentation looking at the rapid rise of a digital conglomerate! It includes numerous charts on aspects of the rise of Google. The business has extended far beyond the basic search engine and mission to organise the world's information.
Key Takeaways:
- Zambia in numbers
- Steps for Registering business in Zambia
- Time and Cost involved in registration
- Tax structure and incentives for businesses
What is the future of the Telecommunications industry in AfricaDavid Graham
Deloitte recently completed an in-depth analysis of the telecommunications market in Africa, its trends, and the drivers of it. We are convinced that there will be consolidation in the telecommunications sector and inevitably more inbound investment as the market opens up and the economic returns improve.
Hypothetical presentation of my Finance and Investment Strategy 2019-2024. The presentation is increasing public awareness about the importance of understanding finance and investment and the challenges that Ministers of Finance encounter as they allocate resources. The presentation made me appreciate the efforts that the current Minister of Finance Prof Mthuli Ncube is doing in trying to stabilise the economy through the Transitional Stabilisation Program (TSP) from 2018-2020. Comments from the public are welcome.
In this revision presentation we look at recent trends in UK trade union membership, consider how trade unions can affect both pay and employment and challenge the textbook view that union-negotiated pay increases inevitably have negative consequences for employment.
In this revision presentation we cover key examples of pure and quasi public goods and consider the arguments for and against an increase in government spending on public goods.
Poverty Reduction Policies in Low Income Countriestutor2u
This revision presentation covers some of the main causes of continued high levels of extreme poverty in low and middle income countries and considers a range of pro-poor government interventions designed to increase productivity and regular employment and waged income in formal labour markets.
You don’t need to produce a lot of evidence in your macroeconomics exams but knowing some basic and key facts and figures can make your answers stand out from the crowd! Here is a quickfire journey through twenty important economic numbers that won’t change before the exam – use them to support your answer and impress the examiner!
Microeconomics - Great Applied Examples for Examstutor2u
In this presentation, I have chosen loads of current examples that you might want to use as context in your microeconomics exams. We look at examples from different market structures, recent mergers and takeovers, the world's most valuable companies, the largest employer, unicorn business, de-mergers, the biggest initial public offerings (IPOs) and much else. Hopefully a useful video to go through to add some super examples into your revision notes.
This revision presentation considers the variety of stakeholders impacted by business activity. How will a change in objectives, such as a move from profit maximisation to revenue maximisation have an effect on different stakeholders?
This revision presentation looks at profit satisficing as an alternative objective for businesses. Why might firms satisfice? What are some of the possible consequences for economic welfare and efficiency?
In this short revision video, we look at the substantial productivity gap between the UK and many of the UK’s major competitor countries.
Paul Krugman, the Nobel Prize-winning economist said twenty fives years ago that “Productivity isn’t everything, but in the long run it is almost everything,”
In this presentation we consider the theory of wage-setting with a monopsony employer and the possible impact that a trade union might have on wages and employment. We also look at efficiency wage theory and mutual gains from pay bargaining between stakeholders.
For many economists, the labour market is the most important market of all to study, analyse and evaluate. Like product markets for goods and services, labour markets can also fail. The main types of labour market failure are labour immobility including skills gaps, inequality, disincentives to be economically active, labour market discrimination and the effects of monopsony power of employers.
Updated revision presentation on aspects of behavioural economics and topical issues where behavioural nudges are being used to change the choices of consumers and businesses.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
1. Structural Issues in the Zambian Economy
Extract 5
Extract 5 is where the 20 mark OCR F585
discussion question will come from
Since the stimulus material was written – the macroeconomic climate for Zambia has
worsened considerably – GDP growth is falling, inflation is rising and the currency is declining.
2. OCR F585 June 2016 Country Focus: Zambia
• Zambia is a factor-driven
developing country and has
enjoyed strong GDP growth in
recent years
• Has it made similar human
development progress?
• Is their growth and development
path sustainable?
• Will the Zambian economy get
through a difficult period of
falling copper prices and rising
inflation?
• How best can Zambia benefit
from regional and global trade?
• How can it diversify away from
high dependence on copper?
3. World Bank Report on Zambia (June 2015)
• “With strong economic
growth in the last decade
traceable to significant
investments in Zambia’s
copper mining sector,
Zambia has now reached
lower– middle-income
status.”
• “Despite this income
growth, however, more
than 60 percent of its
people live below the
national poverty line.”
• “In addition, a century of
mining has imposed
environmental and public
health costs on the
country and its people.”
This World Bank quote is a useful reminder of some of
the externalities from countries experiencing rapid
economic growth. Zambia is a good example of this.
4. Zambia and Malawi – Real GDP per capita (PPP)
The good news for Zambia is that a period of
sustained economic growth has led to significant
increases in their real GDP per capita (PPP
adjusted). In 2008, Zambia overtook the Sub
Saharan average and is now classified as a lower
middle income country.
Malawi on the other hand has been left behind;
real incomes per head have increased at a slower
rate and it remains one of the poorest countries
on the planet with very low HDI scores.
6. Slower Growth Limits Gains in the Standard of Living
8.4
7.8
9.2
10.3
6.4
6.8 6.7
5.6
4.3
4.0
5.4
4.8
6.1
7.0
3.1
3.4 3.3
2.2
0.9
0.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Annual growth of real GDP and real GDP per capita for Zambia (Source
IMF World Economic Outlook, data for 2016 is forecast (November 2015)
Real GDP Growth Real GDP Per Capita Growth
Zambian government’s GDP
growth target = 7% pa
7. How many of these growth limiters apply to Zambia?
Infrastructure Gaps
Primary Export
Dependency
Macroeconomic
Instability
Conflict and
Corruption
Human Resource
Gaps
Insufficient Savings
& High Debt
Natural Capital
Depletion
Rising Income
Inequality
8. Extract 5: What are key structural issues facing Zambia?
• Structural issues refer to underlying weaknesses on the supply-side of the
Zambian economy: Here are some of the supply-side deficiencies:
1. Low capital investment as a share of GDP and falling private sector
investment – in part the result of changing corporation tax and royalty
regimes and – more recently – the global slump in copper/cobalt prices
2. Heavy dependence on copper mining – volatile X revenues and investment
3. Low productivity agriculture – still employing over 60% of workforce
4. High rates of unemployment & under-employment (a dual labour market)
5. Severe infrastructure weaknesses – especially power supplies and poor
transport networks which increase the costs of doing business
6. Inadequate financial services industry – poor & expensive access to credit
7. High levels of income and wealth inequality (high Gini coefficient = 0.57)
8. High drop-out rate for secondary education + poor quality of teaching
9. Zambian manufacturing industry is shrinking (an example of premature
de-industrialisation associated with the natural resource curse)
10. Outward migration of some skilled, younger workers – estimated to be
1.5% of the Zambian population in 2011 – many go to RSA, Botswana & UK
9. Zambia – A Case Study in Poor Access to Credit
Poor access to
credit
Poor
infrastructure
Excessive
bureaucracy
Regulations
and licensing
requirements
Supply-Side
Constraints
• Poor Access to Credit
• Less than 38% of the Zambian adult
population have access to any form
of financial service
• Lending to the private sector is low
at 12% of GDP in 2013, below the
Sub-Saharan average of 21%
• Interest rates on loans are high
• Businesses seeking credit to expand
are limited in their access to loans
• Few households or businesses have
any form of insurance
• Many rely on informal lenders which
exploit and are very high risk
• The majority of households do not
save or have formal savings
accounts with banks
10. Zambia – Poor Access to Credit
• While 36% of adults in
Zambia’s urban areas have
a bank account, only 17%
in rural areas have one
• In 2013 there were just
360 bank branches in
Zambia
• The number of ATM
machines has increased
from 537 in 2011 to 744 in
2013
• Only 5% of adult Zambians
who own mobile phones
use them for financial
transactions, far less than
the average of 16% in Sub-
Saharan Africa
Zambia is behind Kenya in expanding access to
financial services through mobile payment systems.
Micro finance may help to deepen the available of
credit available for households, farmers and other
small-scale producers in the Zambian economy.
11. Supply-Side Policies to Address Poor Access to Credit
• World Bank Report (2014)
• “Financial inclusion has
major effects on people’s
lives. It helps them save,
borrow, reduce costs of
transactions, and manage
shocks. There is growing
empirical evidence that
financial inclusion is
important for economic
development and poverty
reduction, and that the
poor benefit considerably
from basic payment and
savings services.”
Investment in basic financial
literacy rates
Encourage micro-finance
lenders
Incentives for foreign
investment from overseas
banks
Allow Zambia Post to provide
financial services – especially
in rural areas
12. Zambia suffers from Chronic Infrastructure Gaps
Poor access to
credit
Poor
infrastructure
Excessive
bureaucracy
Regulations
and licensing
requirements
Supply-Side
Constraints
• Landlocked Zambia scores poorly in the
infrastructure rankings published as part of
the Global Competitiveness Index
• Quality of overall infrastructure 93/140
• Quality of roads 81/140
• Quality of railroad 80/140
• Quality of port infrastructure 131/140
• Quality of air transport 112/140
• Electricity and telephony 119/140
• 90% of Zambia’s power comes from hydro-
electric plants making the country especially
vulnerable to drought
• To earn foreign exchange, Zambia exports
much of it’s own power from hydro-electric
power – this damages electricity supply to the
farming industry
• Copper mines absorb much available energy
supply. There are frequent power outages
affecting homes & businesses
• Much copper output is transported on poor
roads which adds to costs and hurts profits
13. Other Constraints facing the Zambian Economy
High youth unemployment
and huge under-
employment problem
High extreme poverty
levels especially in rural
areas (>80% on less than
$1.25 per day PPP)
Low agricultural
productivity – much
subsistence farming
High public sector wages
compared to the private
sector
Persistent fuel shortages
and reliance on fuel
subsidies
Volatile currency – this
adds to investor risk and
may limit FDI inflows
14. Extract 5: Supply-Side Polices to Promote Growth
• The aim of the government is – by 2030 – to become a prosperous
middle-income nation. The history of other many resource-rich
countries suggests this will not happen unless Zambia successfully
diversifies the economy and achieves more inclusive growth
• Policies aim to increase capacity, competitiveness and capabilities
1. Special Economic Zones (currently two – low import tariffs and 5-
year relief from corporation tax and taxes on dividends)
2. Incentives to attract inward investment especially in power and
transport and telecoms infrastructure and in commercial farming
3. Liberalizing financial markets to encourage more competition in
basic financial services / attracting micro-finance organisations
4. Reductions in the state minimum wage (it is 3 times the private sector
min wage) to cut state spending and encourage private employment
5. More efficient tax collection systems to fund an long-run increase in
education spending especially in rural areas / remote communities
15. Investment as a % of GDP for the Zambian Economy
One feature of Zambia shown in this chart is the significantly higher level of capital investment as a share
of GDP contrasted with Sub-Saharan Africa and the continent’s largest economy, South Africa.
Gross Capital Investment in Zambia (% of GDP)
2013 2014 2015
Gross Investment 33.6 31.1 31.7
Government Investment 6.3 5.4 5.9
Private Sector Investment 27.3 25.7 25.8
Source: IMF (2015 is a forecast)
17. Most problematic factors for doing business (Zambia)
This chart is taken from the 2015-16 World Economic Forum
Competitiveness Report and ranks the biggest barriers to doing business in
the Zambian economy. Low access to credit is easily the dominant factor.
18. Zambia – Ease of Doing Business Rankings (2014)
Source: World Bank (2015)
Ranking within Sub Saharan Africa
Economy
Ease of Doing Business
Rank (Global)
Starting a
Business
Getting
Electricity
Getting
Credit
Trading Across
Borders
Enforcing
Contracts
Mauritius 28 3 1 3 1 2
South Africa 43 7 27 5 5 4
Rwanda 46 15 4 1 33 9
Ghana 70 12 6 3 11 16
Botswana 74 26 11 7 26 8
Seychelles 85 18 16 40 2 18
Namibia 88 28 5 7 17 7
Swaziland 110 25 22 7 13 41
Zambia 111 8 14 2 41 17
Tanzania 131 17 9 32 18 3
Ethiopia 132 33 8 38 35 6
Kenya 136 24 23 15 25 25
Malawi 164 29 41 32 37 32
One of the policy priorities for the Zambian government is to improve
the country’s rankings for ease of doing business. Zambia is ranked
only 9th in Sub Saharan Africa using these criteria and 111th globally.
19. Zambia – Special Economic Zones
• A Special Economic Zone (SEZ) is an area within a country
that has special economic treatment and policies, for
example lower corporation tax rates, better access to
economic advisors, and more flexible labour laws.
• Usually, firms that operate in an SEZ are able to produce at
a lower cost than firms elsewhere in a country, therefore
gaining a competitive advantage.
• The general aims of SEZs are to increase employment,
increase capital investment and increase trade
• China is probably the best-known example of using SEZs to
stimulate economic growth and development
20. Zambia – Special Economic Zones
• Zambia currently has two SEZs, both developed in
partnership with China’s imaginatively-named (state-
owned enterprise or SOE) China Non-Ferrous Metal
Mining Corporation.
• One, near the capital city Lusaka, specializes in producing
clothing, food and electronics.
• The other is found in Zambia’s copper-belt, and
unsurprisingly specializes in copper- related products
• Companies operating in SEZ pay no corporation tax for the first 5
years and zero tax on dividends for 5 years
• Zero import duty on capital goods and specialized vehicles
21. Zambia – Gross Saving Rate (% of GDP)
Gross national saving (for households,
businesses and government) in Zambia
climbed from 2000 onwards and has
remained above 30% of GDP since 2008.
Gross saving = GDP minus consumption by
government and the private sector, expressed
as a percentage of GDP. A high gross domestic
saving rate usually indicates a country's high
potential to invest in capital
22. Zambia – Tax Revenues (% of GDP)
This chart relates to a key feature of the F585 case study. Over the last fifteen years – save
for a large spike in 2005, the Zambian government has not achieved a rise in tax revenues as
a share of their GDP. Tax income has remained below a fifth of their annual GDP, limiting the
financial resources available for the government to spend on public and merit goods.
23. Gross Government Debt for Zambia
22
19
21
19
21
25
29
35
42
45
0
5
10
15
20
25
30
35
40
45
50
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Gross Government Debt for Zambia, measured as a % of GDP
The Zambian government has been
borrowing heavily to fund investment – it
has issued several billion worth of
Eurobonds. Collapsing copper revenues
and slower growth is now causing a fast-
rising budget deficit and rising debt.
24. Some Advantages of Foreign Direct Investment (FDI)
Infrastructure
accelerator effects – a
rise in investment/GDP
Higher capital intensity /
capital deepening i.e.
more capital per worker
Better training for local
workers – improved
human capital
Grows a country’s
export capacity (e.g.
special economic zones)
Technology & know-how
transfer / diversification
of the economy
More competition in
markets which then
lowers consumer prices
Creates new jobs –
higher incomes and
household savings
Lift in the level of labour
productivity which
increases GNI per capita
25. Risks from Foreign Direct Investment (FDI)
Inequality – profits from FDI
are flow disproportionately
to powerful elites
Land grabs / extractive FDI
which generates little extra
tax revenues
Ethical standards from TNCs
may be poor – especially in
mining, farming and textiles
Volatile / footloose FDI flows
– e.g. FDI is more volatile
than remittance flows
Limited job creation effects /
small spillover for local
content suppliers
Monopsony power of TNCs
who are able to negotiate
highly favourable prices
26. Productivity Gaps in Zambia
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0 10 20 30 40 50 60 70 80 90 100
Relativeproductivity
Cumulative employment share (%)
Construction
Mining & utilities
Manufacturing
Transport, storage, comms
Other
Wholesale, retail, hotels
Agriculture
Productivity in agriculture is far
and away the lowest of any
sector in the Zambian economy.
Measures to lift efficiency would
do much to sustain higher per
capita incomes in the long run
27. Number of Export Items and Markets, Zambia, 2005–13
90
95
100
105
110
115
120
125
130
-
500
1,000
1,500
2,000
2,500
2005 2006 2007 2008 2009 2010 2011 2012 2013
No. HS 6-digit subheads exported (left axis) No. of markets (right axis)
28 EU countries are counted individually e.g. UK, Germany etc.
Source: UN’s COMTRADE database
Number of export items (LHS)
In common with many primary product
dependent countries, Zambia exports only
a limited number of separate products.
This number has declined since 2008 as
has the number of individual markets after
a significant rise from 2006 onwards.
28. Zambian Currency versus the US Dollar ($)
Zambia operates with a floating exchange rate with the central bank prepared to
intervene using monetary policy if necessary. The central bank has an inflation target
of 7% in the near term, falling to 5% in the medium term.
2014-2015 has seen a significant
depreciation in the value of the
Zambian currency against the US
dollar. Consider the benefits and
the costs of such a fall in the
external value of their currency
for the Zambian economy
30. Garment Factory in Rwanda (2015)
Source: http://fsmevents.com/csae/2016/session11/assets/slides.pdf
31. Challenges for Economic Transformation in Zambia
Enterprise
Diversification
Resilience
Productivity
•Drive private sector innovation
•Micro-finance in urban and rural
areas to promote gender equality
Less reliance on state businesses
•Lower the risk of premature de-
industrialization of manufacturing
•Expand tourism / financial services
•Expand food exports to China
•Raise household income and savings
•Expand insurance and pensions
•Stronger government finances with a
fairer mining tax regime
•Expand FDI into commercial farming
•Raise human capital / expertise
•Address huge infrastructure gaps
The crucial challenge facing Zambia is to take steps to improve
inclusive sustainable growth and maintain macro stability.
Economic growth in Africa in future years is likely to favour less resource-intensive countries such as
Ethiopia, Kenya and Uganda. These nations have a more diverse economy & larger consumer markets