Zambia

Overview of Zambia

Zambia, a landlocked country situated in the heart of Southern Africa, operates as a representative multiparty democracy. The nation's governance is spearheaded by a president, and its administrative framework is organised into ten provinces, further subdivided into over 116 districts. Lusaka, the capital, serves as the political and economic hub of the country. English is the official language, facilitating both domestic and international communication, while the Zambian Kwacha (ZMW) is the legal tender, underpinning the nation's monetary system.

Economic Landscape

The cornerstone of Zambia's economy is its robust mining sector, with copper mining and processing being the most significant contributors. However, the economy is not one-dimensional; agriculture and tourism also play pivotal roles in the nation's economic structure, contributing to both employment and Gross Domestic Product (GDP).

Growth Projections and Economic Recovery

In the aftermath of a severe drought in 2024, Zambia's economic outlook is projected to be favourable, with an expected annual GDP growth rate of 6.3% for the period 2025-2026. This positive projection is underpinned by several key factors: an increase in mining output, the successful implementation of economic reforms, the progress made in achievement of debt sustainability, and the normalisation of rainfall patterns, which are anticipated to enhance electricity generation and bolster agricultural productivity. Although there was a slowdown in growth to 2.3% in 2024, a decline from the average growth rate of 5.7% in 2023, the overall outlook remains optimistic.

The years 2025 to 2026 are projected to witness substantial economic growth, primarily driven by a revival in the mining and agricultural sectors. Zambia is expected to capitalise on its abundant natural resources and strategic geographical location to maintain the projected growth trajectory.

International Engagement

Zambia's engagement on the international stage is multifaceted, with active participation in several international organisations. These include the United Nations (UN), the African Union, the South African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), and the Commonwealth of Nations. Such involvement underscores Zambia's commitment to collaborative efforts in addressing regional and global challenges.

PwC Zambia's Professional Expertise

PwC Zambia is a testament to professional excellence, boasting a team of over 180 dedicated staff members. The firm offers a comprehensive suite of services, including assurance, advisory, and tax services. The tax practice is particularly noteworthy, encompassing all facets of Zambian taxation with a focus on inbound investment. PwC Zambia's expertise spans several key sectors, including mining, financial services, consumer and industrial products, and services sectors, positioning the firm as a leader in professional services within the country.