Other State Department Archive Sites

The State Department web site below is a permanent electronic archive of information released online from January 1, 1997 to January 20, 2001. Please see www.state.gov for current material from the Department of State. Or visit http://2001-2009.state.gov for information from that period. Archive sites are not updated, so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides for FY 2000: Zambia Report prepared by U.S. Embassy Lusaka, released July 1999   Note*

CHAPTER V: Leading Sectors for U.S. Exports and Investment

Best Prospects For Non-Agricultural Goods And Services: Franchising in Zambia is beginning to develop and offers some good prospects to American companies (see chapter 4). Best franchising prospects are printing, fast food, postal services, computer/office supplies, telecommunications, education, and business services.

Zambia has significant requirements for infrastructure rehabilitation. Sectors requiring extensive rehabilitation or new investment include the railway and road networks, hydroelectric power, mining, and telecommunications. Many of these rehabilitation projects are funded by multilateral lending institutions and bilateral donors.

The computer market is growing in Zambia, although the market is limited. Many corporations are introducing computer applications in their operations in order to enhance efficiency and productivity. The introduction of Internet services in 1995 is also spurring demand. There is a shortage of skilled repair facilities and software experts.

The agricultural sector represented 15% of GDP in 1998, and this figure is expected to grow as a result of government policy to boost export agriculture. Depending on the harvest, the majority of medium and large scale farmers have sufficient income to service a medium term loan for purchasing agricultural equipment. Used/remanufactured equipment might find a good market if there is a significant price advantage.

Best Prospects For Agricultural Products: Zambia generally imports wheat, usually from South Africa, Canada and the United States. Corn (maize) is also imported in years when drought affects Zambia or neighboring countries.

Significant Investment Opportunities: Approximately 85% of Zambia's parastatal companies were privatized by the end of 1998. Major U.S. companies have purchased assets in the mining industry and metal fabrication. There are still a number of opportunities for purchasing existing parastatal companies or assets in the mining, agricultural, tourism/hotel, insurance, telecommunications and energy sectors.

The Government of the United States acknowledges the contribution that outward foreign direct investment makes to the U.S. economy. U.S. foreign direct investment is increasingly viewed as a complement or even a necessary component of trade. For example, roughly 60% of U.S. exports are sold by American firms that have operations abroad. Recognizing the benefits that U.S. outward investment brings to the U.S. economy, the Government of the United States undertakes initiatives, such as Overseas Private Investment Corporation (OPIC) programs, investment treaty negotiations and business facilitation programs, that support U.S. investors.