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Zambia

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Situation and cooperation
In the 1990s, Zambia underwent a radical transformation from centralised one-party state to democratic, free-market republic. The Zambia of today is seen as an aspiring democracy in southern Africa. Generally speaking, the principles of democracy and the rule of law are respected, although certain caveats apply with regard to human rights. The situation in the country's prisons, for instance, gives cause for concern.
The presidential and parliamentary elections in September 2011 ushered in a peaceful transfer of power: the opposition Patriotic Front (PF) won most votes and took over at the helm from the Movement for Multiparty Democracy (MMD), which had governed the country for 20 years. Michael Chilufya Sata, Chairman of the Patriotic Front, was sworn in as president. International observers described the elections as largely free and transparent, but called for certain reforms for future elections, in particular with a view to ensuring a free election campaign.
The reform of the constitution and electoral law has already been dragging on for several years. In December 2007, a constitutional conference was opened; it completed its work in August 2010. This new draft constitution failed to gain the necessary two-thirds majority in parliament in March 2011, however. When it assumed power, the new government announced it would present a new draft constitution by early 2012.
Another declared goal of the new government is to stamp out corruption, which is endemic in Zambia. In 2011, Zambia managed to improve its ranking on the international Corruption Perceptions Index to 91st place among the 182 states listed, moving up from place 101 in 2010.
Economic development
Zambia aims to join the ranks of the middle income countries by 2030. The World Bank currently classes it as a "lower middle income country". If it is to achieve its goal, the economy will have to grow at a rate of between six and seven per cent per annum, which is a little higher than the growth rates achieved in recent years. The prospects are good. In 2010 Zambia chalked up 7.6 per cent growth and the International Monetary Fund (IMF) has forecast growth rates topping six per cent for the next few years. This would make the country one of the fastest growing economies in the world.
The economy is driven by copper mining, which has recently benefited from high prices on the world market. The Zambian copper belt is Africa's largest copper mining and smelting area. Numerous large-scale international projects and state investment in the country's infrastructure (energy, water, health and transport) are designed to ensure continued positive growth trends. Zambia's economy is, however, heavily dependent on copper exports, which makes it vulnerable to external shocks, as seen most recently during the 2008/2009 global economic and financial crisis.
The agricultural sector is another important mainstay of the Zambian economy. It provides work for about two thirds of the population, making it immensely important for poverty reduction efforts. Productivity in this sector, is however, below average. Only a small percentage of the country's potential farmland is actually used as such. There is a lack of state and private investment. To date the government has focussed on inefficient subsidy programmes, including the purchase of maize. Experts reckon that Zambia could in fact produce twice as much food as its own population actually need.
Power shortages are becoming an increasingly serious problem. Energy supply shortages occur despite the fact that Zambia has considerable potential to generate energy using hydropower. For many years too little attention has been paid to modernising power stations and building new ones, but there are great plans for this sector in the years to come with international support.
Social situation
In spite of Zambia's economic successes, little progress can be seen in terms of reducing poverty. The economy is still too heavily dependent on copping mining, which provides few jobs. The essential structural reforms are not being tackled with the alacrity required. Public authorities lack experts and funding, especially at local level. The United Nations Human Development Index (HDI 2011) ranks Zambia 164th of 187 countries listed. Nationwide almost two thirds of the population live below the poverty line, with almost 80 per cent of the rural population classed as poor.
The wide prevalence of HIV in Zambia is a disaster for the country in both human and economic terms. 14 per cent of adults between the ages of 15 and 49 are infected. Average life expectancy has plummeted in the wake of the epidemic and stands today at 48 years. The impact of HIV/AIDS is felt in all areas of life and sectors of the economy. Mortality is highest among the most economically active age groups. It is estimated that some 750,000 children have lost their parents to AIDS in Zambia. The government has increased its spending on social welfare and is making active efforts to combat HIV/AIDS.
The social and legal status of women in Zambia is determined largely by tribal tradition, not only in rural areas. Although gender equality is enshrined in the constitution and is being demanded by an increasingly active women's rights lobby, social change is slow in coming.
Environment
The need to protect the unique biological diversity of Zambia is becoming increasingly urgent, as poverty, the rising demand for power and commercial logging increase pressure on the environment. The large swamps and wetlands of the north and west of Zambia are rich in bird species, which are under serious threat from poaching. New alternative sources of income are to be created by getting the people who live in and around the national parks more involved.
Deforestation is a further major problem. Wood and charcoal are the sole source of energy for two thirds of the population. Zambia has one of the highest rates of deforestation in the world. Near the towns in particular forests have been destroyed to a huge extent. The spoil heaps from copper mining along with inappropriate management of noxious substances arising in mining are sources of further environmental pressure.
The impacts of climate change are also making themselves felt in Zambia: droughts and flooding occur with increasing regularity.
Development potential
Zambia has natural economic advantages: it has ample mineral resources such as copper, cobalt and gemstones, about 40 per cent of southern Africa's water resources, a comparatively favourable climate, large tracts of land suitable for agriculture, and wildlife reserves. The Zambian government is therefore pinning its main hopes for growth on agriculture, tourism and copper mining.
The construction sector is another growth market. Many road and bridge projects have been financed by donor agencies, as well as modernisation work on hydroelectric power stations and construction work at copper mines.
Priority areas of German cooperation with Zambia
Germany is one of Zambia's largest donors. In order to increase aid effectiveness, a number of donors worked with the Zambian government to devise a strategy to improve cooperation in 2007. A division of labour among donors was agreed, along with the establishment of various dialogue forums to ensure regular exchange. This Joint Assistance Strategy for Zambia (JASZ) was updated in 2011 and signed by 15 bilateral and multilateral donors, so as to provide effective support for the implementation of Zambia's new Sixth National Development Plan (SNDP).
Government negotiations held at the end of 2011 reaffirmed the two priority areas for development cooperation between Zambia and Germany:
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Water
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Good governance (decentralisation and promoting citizen participation).
The German government pledged 74 million euros for development cooperation to Zambia for the period 2011 to 2013.
With other donors, Germany provides Zambia with general budget support to help the country finance the realisation of its national development agenda. The aim is to help the government and civil society to increasingly overcome the existing problems on their own and to push forward independently with development. Disbursement of funding is tied to the achievement of jointly agreed progress markers (such as increasing the number of students leaving school with qualifications, the number of professionally assisted births and progress on stamping out corruption).
The budget support is flanked by measures to improve financial governance, which involve strengthening the public finance system, domestic accountability and parliamentary control. At the government negotiations held in 2011 it was agreed that Germany will step up the support it accords the Zambian government in mobilising its own resources for development, for instance by means of a cooperation arrangement with Zambia's tax authorities. Close cooperation with civil society organisations and an intensive political dialogue round off Germany’s engagement in Zambia.
Water
Zambia has the greatest water resources in southern Africa, yet only about half of the rural population has access to clean drinking water and less than a third have access to sanitary facilities. The situation is also poor in the mushrooming peri-urban settlements, where the majority of the inhabitants are poor.
In order to improve this situation, the Zambian government began a reform of the water sector in 1993. Germany has supported the Zambian institutions from the outset with the realisation of the sector reform. For instance, advisory services were delivered to the independent regulatory body, the National Water Supply and Sanitation Council (NWASCO) and the newly founded commercial water utilities. The focus has been on improving management, covering operating costs and expanding services to embrace hitherto underserved areas.
In order to give the poorest sections of the population in peri-urban areas access to water, a poverty fund, the Devolution Trust Fund (DTF), was established with German support. DTF funds have been used, for instance, to set up water kiosks. These privately run points of sale have already given more than 800,000 Zambians access to safe drinking water.
Since 2010 Germany has also stepped up the advisory services it delivers to the Zambian side to enable it to independently implement and further develop the nationwide investment programme to improve urban and rural water supply and sanitation (the National Urban Water Supply and Sanitation Programme and the National Rural Water Supply and Sanitation Programme). The rural programme is currently operating a pilot phase in three districts, and is then to be rolled out nationwide with the support of other donors.
In the area of water resources management, Germany is supporting Zambia in implementing a new law designed to protect water resources; it is also providing assistance for groundwater mapping. In future too, support will take into account the importance of climate change for managing water resources.
Good governance
In order to promote social and economic development in the country, the Zambian government has committed itself to a policy of decentralisation, intended to ensure that the lower political tiers have greater decision-making authority and better access to resources. The shifting of authority formerly held by central government to municipal level is intended to improve the quality of public services and foster greater political participation on the part of the population.
Germany is supporting this decentralisation process. The measures implemented through German development cooperation have focused in recent years on advising the relevant government ministries and selected districts on issues including budget planning, financial management, auditing and service orientation.
Efforts in the coming years are to focus on further improving the political, institutional and legal frameworks for decentralisation. Staff members of provincial and district administrations are to be trained in the provision of needs-driven services, for instance in the fields of highway construction, health care and education. Another focus will be the extension of public infrastructure.
A second aspect of good governance involves fostering citizen participation. The aim is to strengthen the role played by the Zambian people in helping to shape governance reforms and poverty reduction efforts working through state and non-governmental institutions. The imperatives here are to enhance the transparency and accountability of state actions and increase citizen participation. Germany is supporting the development of parliamentary structures and civil society networks.
Since the advent of greater political openness at the beginning of the 1990s, there is once again scope for civil society organisations to get involved. Churches as well as women's and farmers' organisations represent a very large proportion of Zambia's population and give a voice to the needs of the poor. German development cooperation promotes non-governmental organisations (NGOs) which contribute to the education and empowerment of the poor.
Debt relief
In 2005 and 2006 Zambia qualified for extensive debt relief both under the HIPC Initiative, and within the framework of the MDRI, thus extending its financial scope for action. The country is nevertheless still dependent on external assistance. Zambia was granted debt relief totalling 6.65 billion US dollars. The bilateral German share of this relief was 1.17 billion euros.
Information

See also
- Press release 11.12.2010: German Development Minister Dirk Niebel's visit to Zambia comes to an end
- Press release 09.12.2010: German Development Minister Dirk Niebel visits Zambia
- Issues: HIV and AIDS
- Issues: Water
- Issues: Good governance
- Regional concept Sub-Saharan Africa:
Good Governance - Issues: Debt relief
External links
Publications

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Promoting Resilient States and Constructive State-Society Relations – Legitimacy, Transparency and Accountability
Special 168
(PDF 495 KB, accessible) -
Promotion of Good Governance in German Development Policy
Strategies 178
(PDF 277 KB, accessible) -
Preventing corruption – promoting transparency: What is German development policy doing?
(PDF 177 KB, accessible) -
In partnership for a strong Africa: Cooperation in the area of good governance
Topics 165
(PDF 2.5 MB, accessible) -
In partnership for a strong Africa: Cooperation in the water sector
Topics 166
(PDF 3.4 MB, accessible) -
Decentralisation and local self-government
Leaflet
(PDF 372 KB, accessible) -
Biological Diversity
Strategies 166
(PDF 450 KB, accessible)





