KALANI KAZEYA

BUSINESS ENVIRONMENT GROUP ASSIGHNMENT 2

EFFECTS OF GLOBALIZATION IN ZAMBIA

a) Globalization has been defined as the interconnection of societies through common
trade, technology and culture. It involves the interconnection of economies, businesses
and companies around the world. Globalization promotes business opportunities,
technological advancements and cultural exchange among different countries across the
globe. It also comes with negative impacts such as economic inequality, political
tensions and so on. This chapter is going to have a broad look at globalization and it
impact on the Zambian society.
Developing countries have continually sought ways and means through which they can abate
their declining economic fortunes and the developed world has seen globalization as the
saviour of the developing world (Bwalya. K. Mubanga, 2013). Even though the impact of
globalization has not been fully felt in Zambia, It has brought quite a number of negative and
positive changes over the years. It has contributed to economic growth by bringing a diverse
range of foreign investments to the country like First quantum mining, which is a Canadian
mining company and the largest copper producing company in Africa. Zambeef is a Zambian
agricultural company that produces meat and dairy products and has been listed on the
London stock exchange. Paving way for foreign investments like the CDC group, an
institution based in the United Kingdom which aims to improve food security and agricultural
productivity in Zambia and the wider region. Tata Group is also another company that has
branches in many countries including Zambia. This company has distributed a large number
of vehicles like commercial trucks and busses in Zambia, creating many job opportunities in
mines, logistics and the transport sector. It provides information technology services in many
sectors including telecommunication companies and technological advancements in banks.
Super markets like Shoprite holdings has contributed to the growth of the Zambian economy
by selling a wide range of products from both local and international manufacturing
companies. It has made deals with Zambeef, nestle, Colgate, Philips, Trade kings, lays and so
on. Just like many prominent super markets in Zambia ShopRite has contributed to the
Zambian economy by providing employment to thousands of Zambians across the country,
which has contributed to skill development and improved living. The Zambian economy has
economy has also experienced a negative side of Globalization. It has relied on foreign
investment and multinational corporations making it susceptible to external economic
conditions and decisions made by foreign entities. Profits obtained by foreign investors are
often repatriated back to their home countries
Because of globalization, Zambia has undergone significant cultural and social changes over
the decades. It has introduced gender equality and women empowerment which enables
women to be included in social, political and economic programs aimed to bring development
to the country. It has also reformed the educational curriculum aiming to reach international
standards by emphasising on Mathematics, sciences and business related skills. It has
engaged in cultural exchange programs, exposing students to different cultures and
broadening their world point of world’s point view. The access to internet is being mirrored
by an equally discernible rise in its use by ethnic ideological and national groups anxious to
assert their cultural identity (Obiora, 2002). This can be seen on social media platforms like
Facebook, instagram YouTube and Ticktok. Zambia has mostly been influenced by the
western world in fashion trends, music and cuisines. It has experienced a profound change in
culture which has made a lot of traditional customs to be overshadowed. The purchasing of
globalized brands has also become a widely practiced system. Brands like Apple, sonny,
puma, HP, adidas, Nike and Samsung are one of the top foreign brands that sell appliances,
clothes and accessories on the Zambian market. International visitors who are authors,
filmmakers, journalists and tourists come to experience the cultural practices in Zambia.
Despite all these new cultural experiences and benefits, Globalization has also affected the
country negatively in terms of culture. The making of traditional crafts is slowly loosing
value as the younger generation are adopting the use of modern day technology. The
pervasive influence of western culture through media, fashion, and consumer products often
leads to the adoption of western lifestyles, which can dilute tradition al cultural norms and
values. The dominance of English as a global language can marginalize local languages.
Young people in particular, may prefer to in English, leading to the potential decline in
indigenous languages.
Globalization has facilitated the expansion of internet infrastructure, leading to greater access
to broadband and mobile internet across the country. This has enabled more Zambians more
Zambians to connect to the global information network. Efforts to increase digital literacy
and inclusion have been supported by international organizations and private sector
investments, helping bridge the digital divide. Mobile Banking services like Airtel and MTN
money has changed financial transactions, making it easier for people to conduct business
and manage their finances. Services like telemedicine enable remote consultations, allowing
patient I rural areas to get access to medication without traveling long distances. The
implementation of electronic health records and health information systems has improved
patient care, record keeping, and data management in healthcare facilities.
The Democratic values and practices have been spread through international Organizations
like NGOs, and foreign governments advocating for good governance, human rights and the
rule of law. International observers and organizations have supported free and fair elections
in Zambia, Helping to strengthen democratic institution s and processes. Global economic
integration has influenced Zambia to adopt policies conducive to market economies.
Structural adjustment programs (SAPs) and economic reforms, often driven by international
financial institutions like the IMF and the World Bank, have aimed at liberalizing the
economy, reducing state intervention, and promoting private sector growth. Global standards
and best practices have shaped Zambia’s regulatory frameworks in areas such as trade,
finance, and environmental protection. This alignment helps attract foreign investment and
integrate Zambia into the global economy.
Globalization provides Zambia with platforms to voice the concerns and advocate for the
interests on the international stage. Participation in global forums allows Zambia to
contribute to global decision making process and address issues like climate change, Trade
politics, and sustainable development. The integration into global economy has led to the
signing of free trade agreements and participation in trade blocs. These agreements aim to
reduce trade barriers, increase, and exports and attract foreign investment. It has also enabled
Zambia to diversify its trade partners, reducing depending on a few countries and expanding
its market reach. Even so, globalization has brought some negative political impacts in
Zambia. It has had heavy reliance on forighn investments and aid which makes Zambia
vulnerable to global economic fluctuations. Borrowing from international lenders to fund
development projects can lead to high levels of dept. The benefits of globalization are often
focused on urban areas , leading to the increase in inequalities in urban and rural areas.

References
Bwalya. K. Mubanga, 2013, the impact of globalization and free trades on developing
countries, particularly in Zambia
Obiora. A. L, 1997, Feminism, globalization and culture after Beijing paper

b) International Organisations have played a crucial role in fostering business growth in

Zambia through various initiatives, funding programmes, and development projects.
Their contributions span multiple sectors, including infrastructure, agriculture,
financial services and policy reforms. The following are examples of how Zambia has
been helped by international organisations in its business growth
 The World Bank and Africa Development bank are among the international
organisations that have helped finance many infrastructure projects in Zambia
like road construction, water supply systems and power generation. This in
turn has impacted on trade and commerce e.g. a good road network connects
urban centres to rural areas and international boarders, promoting both
domestic and international commerce. Projects like the rehabilitation of the
Great North Road and other highways have improved critical trade routes.
 Food and Agricultural Organisation (FAO) and International Fund for
Agricultural Development (IFAD) have been instrumental in developing
Zambia’s agricultural sector by providing technical assistance, funding and
training programmes aimed at improving productivity and sustainability.
These project often focus on small holder farmers who are crucial to Zambia’s
economy. By introducing modern farming techniques, high yield crop
varieties and sustainable practices, these organisations help increase
agricultural input ensuring food security and creating surplus for export. This
boost supports the agribusiness sector and related industries.
 International Monetary Fund (IMF) supports Zambia through financial and
policy advice aimed at stabilizing the economy. Reforms encouraged by the
IMF often lead to a more conducive environment for business growth by
improving macroeconomic stability, reducing inflation and fostering fiscal
discipline. An example is the recent support given by the IMF by agreeing to
the suggestion of the Republic and Zambia and the Steering Committee to
restructure debt. The IMF executive board completed the second review under
the 38-month extended credit facility (ECF) Arrangement with Zambia,
providing the country with immediate access to about US$187 million (Press
release, 2023). The International Finance Corporation (IFC), a member of the
World Bank Group, invests in private sector projects in Zambia by providing
 capital and expertise, they help businesses expand, creates jobs and improve
services. Their focus is on supporting small and medium-sized enterprises
(SME’s) which are vital for economic growth and diversification.
 The United Nations Development programme (UNDP) and United States
agency for International development (USAID) support entrepreneurship
through various programmes aimed at skill development, innovation and
access to finance. These initiatives include training workshops, incubation
centres, and grants for start-ups.
By focusing on SMEs, these organizations help create robust entrepreneurial
ecosystem that fosters innovation and job creation. SMEs play a crucial role in
diversifying the economy and driving sustainable development
 The World health organization initiative (WHO) is to focus on improving
public health, which is crucial for a productive workforce. Healthier
population are more capable of contributing to business growth and economic
development
 Organization for Economic co-operation and development (OECD) provides
policy recommendations that help Zambia improve its business environment,
governance practices attract foreign investment and foster a transparent and
efficient business climate.
European Union (EU) offers development aid that supports various sectors I,
including infrastructure, education and health. This aid contributes to creating
a stable environment conducive to business growth
 The United Nations industrial development organization (UNIDO) works on
industrial development projects that boost manufacturing and value addition in
Zambia. By providing technical assistance and promoting industrialization,
UNIDO helps diversify the economy beyond primary commodities.
And the World Trade Organization (WTO) Assists Zambia in integrating into
global trading systems. Through trade policy reviews and capability –building
programs, the WTO helps Zambia improve its policies and negotiate better
trade deals, enhancing market access for Zambian products.
International Organisations have significantly contributed to Zambia’s business
growth by providing financial support, technical assistance, and policy guidance.
Their efforts have led to improvements in infrastructure, agriculture, financial
services, trade, industrial development, entrepreneurship, health, education and
governance. By fostering a stable and conducive business environment, these
organisations helps Zambia achieve sustainable growth and development.
References
Press release, 2023, IMF Executive board under the extended credit facility for Zambia and
approves US$187 Million Disbursement