ZAMBA, AFRCA

By Baris Ege Uysal

Zambia, in south-central Africa, is the continent's

biggest copper producer and home to the Victoria
Falls, one of the Seven Natural Wonders of the
World.

Economy of Zambia
Zambias economic freedom score is 58.7, making
its economy the 100th freest in the 2015 Index.

Over the past five years, Zambias commoditylinked economy has grown, but policymakers have
done little to boost overall economic freedom.

Zambias economy remains strong with growth

expected to increase above 6% in 2015/16 after a
decline in GDP growth from 6.7% in 2013 to 5.7%
due mainly to waning copper production. Inflation
is expected to fall below 7.0% by 2017.

Economy of Zambia 2
Poverty, at over 60%, remains significant
despite strong economic performance along the
main transport corridors and reduced poverty in
the large urban agglomerations.

Why Zambia Economy s

in Trouble

Zambia recorded a Current Account deficit of 170.77 ZMK

(Zambian Kwacha) Billions in the fourth quarter of 2014.
Current Account in Zambia averaged 29.32 ZMK Billions from
2007 until 2014, reaching an all time high of 629.26 ZMK
Billions in the third quarter of 2012 and a record low of
-650.90 ZMK Billions in the third quarter of 2008.

Why Zambia Economy is

in Trouble 2
Zambia is spending more money than it has.
Zambias growing government debt is increasing
significantly. n the period of 2012-2015, it has
increased more than 15%.

China-Zambia
Relationship
n recent decades, the population of Chinese
people in Zambia has rapidly increased.

This is as Zambia is the largest copper producer

in Africa.

Chinese immigrants moved into cities and rural

towns. They started construction companies;
opened copper, coal, and gem mines; and built
hotels and restaurants, all providing new jobs.
They set up schools and hospitals.

Why Zambia
As Zambia is the biggest copper producer in
China, it is attractive. As well as the ease of
finding resources, Zambia also have a very low
wage rate due to its high levels of poverty, so
that it can benefit Chinese firms by reducing
their total costs and allowing the price to fall in
order to benefit from increase sales.(law of
demand).

Benefits of China in
Zambia
The China-Zambia economic relationship has been
identified to benefit traders and households who
benefit from cheaper Chinese products. Chinese
exporters will benefit from increased African market in
Zambia.

GRZ and local labour are also expected to benefit due

to setting up the infrastructure at less cost and
employment opportunities created, respectively.

Most of the Chinese firms operating in Zambia are state

owned and/or are strongly supported by the Chinese
state, which advantages them over other competitors

Benefit that Zambia Can

Gain
The Chinese have changed Zambia," said Nelson
Mwendabai, a retired civil servant who ticked off
Chinese-backed projects: a railway between Tanzania
and Zambia, new roads, schools, clinics and
stadiums. Mwendabai said: "We should just accept
that they are our friends.

Issues of China in
Zambia ?
Not all Zambians think China is friendly :
Twelve hundred Zambians gathered on a sunny
morning in August of 2012 to protest at Collum
Coal Mine, which is located in a rural southern
province and, at the time, was owned by five
Chinese brothers. They were angry about the
working conditions in the mine. (exploitation of
labour)

 They were also upset about annual wage

increases that they said amounted to only a
single Zambian kwachathe equivalent of
twenty cents.

 Human Rights Watch found that while Zambians

working in the countrys Chinese-run copper
mines welcome the substantial investment and
job creation, they suffer from abusive
employment conditions that fail to meet
domestic and international standards and fall
short of practices among the copper mining
industry elsewhere in Zambia

 . Miners at several Chinese-run companies spoke

of poor health and safety standards, including
poor ventilation that can lead to serious lung
diseases, hours of work in excess of Zambian
law, the failure to replace workers personal
protective equipment that is damaged while at
work, and the threat of being fired should
workers refuse to work in unsafe places.