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.

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).

Looking ahead, Zambia's economic trajectory appears promising, with an anticipated annual GDP growth rate of 4.5% from 2023 to 2025. This optimistic forecast is attributed to the burgeoning demand for copper, particularly from China, and the commencement of operations at a new domestic fertiliser production facility, which is expected to diversify the economic base. Despite a slight deceleration in growth to 5.0% in Q2 2023, down from 5.9% in the corresponding quarter of the previous year, the outlook remains positive.

The period from 2024 to 2026 is marked by expectations of expansion, predominantly driven by a resurgence in the mining and agricultural sectors. An improved macroeconomic environment is anticipated to further bolster this growth. Additionally, sectors such as information and communication, financial and insurance services, accommodation and food services, transport and storage, and manufacturing are projected to maintain a trajectory of sustained progress. Fiscal prudence is expected to result in a narrowing of the overall cash fiscal deficit, with projections indicating a decrease to 4.8% of GDP in 2024, 2.8% in 2025, and a further reduction to 2.2% in 2026.

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 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.