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Page last updated on July 21, 2020

Multiple waves of Bantu-speaking groups moved into and through what is now Zambia over the past thousand years. In the 1880s, the British began securing mineral and other economic concessions from various local leaders and the territory that is now Zambia eventually came under the control of the former British South Africa Company and was incorporated as the protectorate of Northern Rhodesia in 1911. Administrative control was taken over by the UK in 1924. During the 1920s and 1930s, advances in mining spurred development and immigration.

The name was changed to Zambia upon independence in 1964. In the 1980s and 1990s, declining copper prices, economic mismanagement, and a prolonged drought hurt the economy. Elections in 1991 brought an end to one-party rule and propelled the Movement for Multiparty Democracy (MMD) to government. The subsequent vote in 1996, however, saw increasing harassment of opposition parties and abuse of state media and other resources. The election in 2001 was marked by administrative problems, with three parties filing a legal petition challenging the election of ruling party candidate Levy MWANAWASA. MWANAWASA was reelected in 2006 in an election that was deemed free and fair. Upon his death in August 2008, he was succeeded by his vice president, Rupiah BANDA, who won a special presidential byelection later that year. The MMD and BANDA lost to the Patriotic Front (PF) and Michael SATA in the 2011 general elections. SATA, however, presided over a period of haphazard economic management and attempted to silence opposition to PF policies. SATA died in October 2014 and was succeeded by his vice president, Guy SCOTT, who served as interim president until January 2015, when Edgar LUNGU won the presidential byelection and completed SATA's term. LUNGU then won a full term in August 2016 presidential elections.

Southern Africa, east of Angola, south of the Democratic Republic of the Congo

almost five times the size of Georgia; slightly larger than Texas

Area comparison map:

border countries (8): Angola 1065 km, Botswana 0.15 km, Democratic Republic of the Congo 2332 km, Malawi 847 km, Mozambique 439 km, Namibia 244 km, Tanzania 353 km, Zimbabwe 763 km

tropical; modified by altitude; rainy season (October to April)

mostly high plateau with some hills and mountains

lowest point: Zambezi river 329 m

highest point: unnamed elevation in Mafinga Hills 2,301 m

copper, cobalt, zinc, lead, coal, emeralds, gold, silver, uranium, hydropower

arable land: 4.8% / permanent crops: 0% / permanent pasture: 26.9%

one of the highest levels of urbanization in Africa; high density in the central area, particularly around the cities of Lusaka, Ndola, Kitwe, and Mufulira

periodic drought; tropical storms (November to April)

air pollution and resulting acid rain in the mineral extraction and refining region; chemical runoff into watersheds; loss of biodiversity; poaching seriously threatens rhinoceros, elephant, antelope, and large cat populations; deforestation; soil erosion; desertification; lack of adequate water treatment presents human health risks

party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands

signed, but not ratified: none of the selected agreements

landlocked; the Zambezi forms a natural riverine boundary with Zimbabwe; Lake Kariba on the Zambia-Zimbabwe border forms the world's largest reservoir by volume (180 cu km; 43 cu mi)

note: estimates for this country explicitly take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality, higher death rates, lower population growth rates, and changes in the distribution of population by age and sex than would otherwise be expected

Bemba 21%, Tonga 13.6%, Chewa 7.4%, Lozi 5.7%, Nsenga 5.3%, Tumbuka 4.4%, Ngoni 4%, Lala 3.1%, Kaonde 2.9%, Namwanga 2.8%, Lunda (north Western) 2.6%, Mambwe 2.5%, Luvale 2.2%, Lamba 2.1%, Ushi 1.9%, Lenje 1.6%, Bisa 1.6%, Mbunda 1.2%, other 13.8%, unspecified 0.4%

Bemba 33.4%, Nyanja 14.7%, Tonga 11.4%, Lozi 5.5%, Chewa 4.5%, Nsenga 2.9%, Tumbuka 2.5%, Lunda (North Western) 1.9%, Kaonde 1.8%, Lala 1.8%, Lamba 1.8%, English (official) 1.7%, Luvale 1.5%, Mambwe 1.3%, Namwanga 1.2%, Lenje 1.1%, Bisa 1%, other 9.7%, unspecified 0.2%

note: Zambia is said to have over 70 languages, although many of these may be considered dialects; all of Zambia's major languages are members of the Bantu family

Protestant 75.3%, Roman Catholic 20.2%, other 2.7% (includes Muslim Buddhist, Hindu, and Baha'i), none 1.8%

Zambia's poor, youthful population consists primarily of Bantu-speaking people representing nearly 70 different ethnicities. Zambia's high fertility rate continues to drive rapid population growth, averaging almost 3 percent annually between 2000 and 2010. The country's total fertility rate has fallen by less than 1.5 children per woman during the last 30 years and still averages among the world's highest, almost 6 children per woman, largely because of the country's lack of access to family planning services, education for girls, and employment for women. Zambia also exhibits wide fertility disparities based on rural or urban location, education, and income. Poor, uneducated women from rural areas are more likely to marry young, to give birth early, and to have more children, viewing children as a sign of prestige and recognizing that not all of their children will live to adulthood. HIV/AIDS is prevalent in Zambia and contributes to its low life expectancy.

Zambian emigration is low compared to many other African countries and is comprised predominantly of the well-educated. The small amount of brain drain, however, has a major impact in Zambia because of its limited human capital and lack of educational infrastructure for developing skilled professionals in key fields. For example, Zambia has few schools for training doctors, nurses, and other health care workers. Its spending on education is low compared to other Sub-Saharan countries.

one of the highest levels of urbanization in Africa; high density in the central area, particularly around the cities of Lusaka, Ndola, Kitwe, and Mufulira

2.774 million LUSAKA (capital)

note: median age at first birth among women 25-29

rural: 51.3% of population

total: 65.4% of population

rural: 48.7% of population

degree of risk: very high

food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever

vectorborne diseases: malaria and dengue fever

water contact diseases: schistosomiasis

animal contact diseases: rabies

definition: age 15 and over can read and write English

conventional long form: Republic of Zambia

conventional short form: Zambia

former: Northern Rhodesia

etymology: name derived from the Zambezi River, which flows through the western part of the country and forms its southern border with neighboring Zimbabwe

name: Lusaka; note - a proposal to build a new capital city in Ngabwe was announced in May 2017

geographic coordinates: 15 25 S, 28 17 E

time difference: UTC+2 (7 hours ahead of Washington, DC, during Standard Time)

etymology: named after a village called Lusaka, located at Manda Hill, near where Zambia's National Assembly building currently stands; the village was named after a headman (chief) Lusakasa

10 provinces; Central, Copperbelt, Eastern, Luapula, Lusaka, Muchinga, Northern, North-Western, Southern, Western

24 October 1964 (from the UK)

Independence Day, 24 October (1964)

history: several previous; latest adopted 24 August 1991, promulgated 30 August 1991

amendments: proposed by the National Assembly; passage requires two-thirds majority vote by the Assembly in two separate readings at least 30 days apart; passage of amendments affecting fundamental rights and freedoms requires approval by at least one half of votes cast in a referendum prior to consideration and voting by the Assembly; amended 1996, 2015, 2016

mixed legal system of English common law and customary law

has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction

citizenship by birth: only if at least one parent is a citizen of Zambia

citizenship by descent only: yes, if at least one parent was a citizen of Zambia

dual citizenship recognized: yes

residency requirement for naturalization: 5 years for those with an ancestor who was a citizen of Zambia, otherwise 10 years residency is required

18 years of age; universal

chief of state: President Edgar LUNGU (since 25 January 2015); Vice President Inonge WINA (since 26 January 2015); note - the president is both chief of state and head of government

head of government: President Edgar LUNGU (since 25 January 2015); Vice President Inonge WINA (since 26 January 2015)

cabinet: Cabinet appointed by president from among members of the National Assembly

elections/appointments: president directly elected by absolute majority popular vote in 2 rounds if needed for a 5-year term (eligible for a second term); last held on 11 August 2016 (next to be held in 2021)

election results: Edgar LUNGU reelected president in the first round; percent of vote - Edgar LUNGU (PF) 50.4%, Hakainde HICHILEMA (UPND) 47.6%, other 2.0%

description: unicameral National Assembly (165 seats; 156 members directly elected in single-seat constituencies by simple majority vote in 2 rounds if needed, and up to 8 appointed by the president; members serve 5-year terms); note - 6 additional electoral seats were added for the 11 August 2016 election, up from 150 electoral seats in the 2011 election

elections: last held on 11 August 2016 (next to be held in 2021)

election results: percent of vote by party - PF 42%, UPND 41.7%, MMD 2.7%, FDD 2.2%, other 1.9%,independent 9.5%; seats by party - PF 89, UPND 54, MMD 5, FDD 1, NDC 1, independent 14; composition - men 135, women 30, percent of women 18.2%

highest courts: Supreme Court (consists of the chief justice, deputy chief justice, and at least 11 judges); Constitutional Court (consists of the court president, vice president, and 11 judges); note - the Constitutional Court began operation in June 2016

judge selection and term of office: Supreme Court and Constitutional Court judges appointed by the president of the republic upon the advice of the 9-member Judicial Service Commission, which is headed by the chief justice, and ratified by the National Assembly; judges normally serve until age 65

subordinate courts: Court of Appeal; High Court; Industrial Relations Court; subordinate courts (3 levels, based on upper limit of money involved); Small Claims Court; local courts (2 grades, based on upper limit of money involved)

Alliance for Democracy and Development or ADD [Charles MILUPI]
Forum for Democracy and Development or FDD [Edith NAWAKWI]
Movement for Multiparty Democracy or MMD [Felix MUTATI]
National Democratic Congress or NDC [Chishimba KAMBWILI]
Patriotic Front or PF [Edgar LUNGU]
United Party for National Development or UPND [Hakainde HICHILEMA]

ACP, AfDB, AU, C, COMESA, EITI (compliant country), FAO, G-77, IAEA, IBRD, ICAO, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC (NGOs), MIGA, MONUSCO, NAM, OPCW, PCA, SADC, UN, UNAMID, UNCTAD, UNESCO, UNHCR, UNIDO, UNISFA, UNMIL, UNMISS, UNOCI, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Ambassador Lazarous KAPAMBWE (since 7 February 2020)

chancery: 2200 R Street NW, Washington, DC 20008

telephone: [1] (202) 265-9717 through 9719

chief of mission: Charge d'Affaires David J. YOUNG (since 2 March2020)

telephone: [260] 211-357-000

embassy: Eastern end of Kabulonga Road, Ibex Hill, Lusaka

mailing address: P. O. Box 320065, Lusaka

green field with a panel of three vertical bands of red (hoist side), black, and orange below a soaring orange eagle, on the outer edge of the flag; green stands for the country's natural resources and vegetation, red symbolizes the struggle for freedom, black the people of Zambia, and orange the country's mineral wealth; the eagle represents the people's ability to rise above the nation's problems

African fish eagle; national colors: green, red, black, orange

name: "Lumbanyeni Zambia" (Stand and Sing of Zambia, Proud and Free)

lyrics/music: multiple/Enoch Mankayi SONTONGA

note: adopted 1964; the melody, from the popular song "God Bless Africa," is the same as that of Tanzania but with different lyrics; the melody is also incorporated into South Africa's anthem

Zambia had one of the world's fastest growing economies for the ten years up to 2014, with real GDP growth averaging roughly 6.7% per annum, though growth slowed during the period 2015 to 2017, due to falling copper prices, reduced power generation, and depreciation of the kwacha. Zambia's lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market and prices turned downward in 2015 due to declining demand from China; Zambia was overtaken by the Democratic Republic of Congo as Africa's largest copper producer. GDP growth picked up in 2017 as mineral prices rose.

Despite recent strong economic growth and its status as a lower middle-income country, widespread and extreme rural poverty and high unemployment levels remain significant problems, made worse by a high birth rate, a relatively high HIV/AIDS burden, by market-distorting agricultural and energy policies, and growing government debt. Zambia raised $7 billion from international investors by issuing separate sovereign bonds in 2012, 2014, and 2015. Concurrently, it issued over $4 billion in domestic debt and agreed to Chinese-financed infrastructure projects, significantly increasing the country's public debt burden to more than 60% of GDP. The government has considered refinancing $3 billion worth of Eurobonds and significant Chinese loans to cut debt servicing costs.

note: data are in 2017 dollars

note: data are in 2017 dollars

corn, sorghum, rice, peanuts, sunflower seeds, vegetables, flowers, tobacco, cotton, sugarcane, cassava (manioc, tapioca), coffee; cattle, goats, pigs, poultry, milk, eggs, hides

copper mining and processing, emerald mining, construction, foodstuffs, beverages, chemicals, textiles, fertilizer, horticulture

Switzerland 44.8%, China 16.1%, Democratic Republic of the Congo 6.2%, Singapore 6%, South Africa 5.9%

copper/cobalt, cobalt, electricity; tobacco, flowers, cotton

machinery, transportation equipment, petroleum products, electricity, fertilizer, foodstuffs, clothing

South Africa 28.2%, Democratic Republic of the Congo 20.8%, China 12.9%, Kuwait 5.4%, UAE 4.6%

Zambian kwacha (ZMK) per US dollar -

general assessment: service is among the best in Sub-Saharan Africa; regulatory promotes competition and a partner to private sector service providers, offering mobile voice and Internet at some of the lowest prices in the region; investment made in data centers, education centers and computer assembly training plants; operators invest in 3G and LTE-based services and Chinese company Huawei is helping to upgrade state-owned mobile infrastructure for 5G services; 3 cellular telephone providers currently in operation, plus several data only ISPs; 1,010 towers project to soon be completed

domestic: fiber optic connections are available between most larger towns and cities with microwave radio relays serving more rural areas; 3G and LTE with FttX in limited urban areas and private Ku or Ka band VSAT terminals in remote locations; fixed-line 1 per 100 and mobile-cellular 94 per 100

international: country code - 260; multiple providers operate overland fiber optic routes via Zimbabwe/South Africa, Botswana/Namibia and Tanzania provide access to the major undersea cables

the COVID-19 outbreak is negatively impacting telecommunications production and supply chains globally; consumer spending on telecom devices and services has also slowed due to the pandemic's effect on economies worldwide; overall progress towards improvements in all facets of the telecom industry - mobile, fixed-line, broadband, submarine cable and satellite - has moderated

Zambia Defense Force (ZDF): Zambia Army, Zambia Air Force, Zambia National Service (support organization); the Zambia Police includes a paramilitary battalion

18-25 years of age for male and female voluntary military service; no conscription; 12-year enlistment period (7 years active, 5 in the Reserves)

the Zambia Defense Force (ZDF) has an estimated 15-18,000 active troops (13-16,500 Army; 1,500 Air); 1,400 paramilitary Police

the ZDF's inventory is largely comprised of Soviet-era and older Chinese- and Russian-origin equipment; since 2010, China is the leading supplier of arms to Zambia

920 Central African Republic (MINUSCA)

note: includes 1,860 km of the Tanzania-Zambia Railway Authority (TAZARA)

river port(s): Mpulungu (Zambezi)

in 2004, Zimbabwe dropped objections to plans between Botswana and Zambia to build a bridge over the Zambezi River, thereby de facto recognizing a short, but not clearly delimited, Botswana-Zambia boundary in the river

refugees (country of origin): 18,179 (Angola), 6,419 (Burundi), 5,849 (Rwanda) (2019); 52,152 (Democratic Republic of the Congo) (refugees and asylum seekers) (2020)

transshipment point for moderate amounts of methaqualone, small amounts of heroin, and cocaine bound for southern Africa and possibly Europe; a poorly developed financial infrastructure coupled with a government commitment to combating money laundering make it an unattractive venue for money launderers; major consumer of cannabis

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Page last updated on July 21, 2020 Multiple waves of Bantu-speaking groups moved into and through what is now Zambia over the past thousand years. In the 1880s, the British began securing mineral and other economic concessions from various local leaders and the territory that is now Zambia eventually came under the control of the former British South Africa Company and was incorporated as the protectorate of Northern Rhodesia in 1911.

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Population Pyramids of the World from 1950 to 2100

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A chronology of key events:

12th Century - Shona people arrive in the area, later establishing the empire of the Mwene Mutapa, which includes southern Zambia.

Capital: Lusaka

Became capital of Northern Rhodesia in 1935

Capital of independent Zambia from 1964

Mushroomed in the 1960s

Population: 1 million

16th Century - Arrival of peoples from Luba and Lunda empires of Zaire to set up small kingdoms.

Late 18th Century - Portuguese explorers visit.

19th Century - Instability generated by migration as well as slave-trading by Portuguese and Arabs.

1851 - British missionary David Livingstone visits.

Copper discovered

1889 - Britain establishes control over Northern Rhodesia, administering the area using a system of indirect rule which leaves power in the hands of local rulers.

Late 1920s - Discovery of copper, which later encourages an influx of European technicians and administrators.

1953 - Creation of the Federation of Rhodesia and Nyasaland, comprising Northern Rhodesia, Southern Rhodesia (now Zimbabwe) and Nyasaland (now Malawi).

1960 - UNIP (United National Independence Party) formed by Kenneth Kaunda to campaign for independence and dissolution of federation dominated by white-ruled Southern Rhodesia.

1963 - Federation dissolved.

1964 - Independence, with Kaunda as president.

Late 1960s-1970s - Key enterprises nationalised. Private land nationalised in an unsuccessful agricultural improvement programme.

1972 - Zambia becomes a one-party state, with UNIP as the only legal party.

Help for rebels

1975 - Tan-Zam railway opened, providing a link between the Copperbelt to the Tanzanian port of Dar es Salaam, reducing Zambian dependence on Rhodesia and South Africa for its exports.

1976 - Zambia declares support for the independence struggle in Rhodesia. Zambian help proves crucial to the transition of Rhodesia to an independent Zimbabwe.

1990 - Food riots.

Independence leader

Kenneth Kaunda (right), pictured with Zimbabwean President Robert Mugabe, was in power between 1964 and 1991
Mr Kaunda speaks to Focus On Africa
1991 - Multi-party constitution adopted. Movement for Multi-party Democracy (MMD) wins elections and its leader, Frederick Chiluba, becomes president.

1996 - Change to constitution effectively barring Kaunda from future elections. Chiluba re-elected.

1997 - Attempted coup.

1999 - A high court sentences 59 soldiers to death after they are found guilty of treason for the failed coup attempt in 1997.

2000 May - Fighting between Angolan forces and UNITA rebels spills over into Zambian territory.

2000 July - Environment Minister Ben Mwila expelled from the MMD and dropped from the cabinet after announcing his intention to run for president in 2001.

2000 December - UN officials estimate that up to 60,000 refugees fleeing fighting in the Democratic Republic of Congo move to Zambia in less than a week.

Chiluba trouble

2001 May - Setback for governing Movement for Multi-party Democracy as senior members hive off to create Forum for Democracy and Development. They're opposed to Chiluba's bid for a third term in office.

2001 July - Paul Tembo, former campaign manager for Chiluba who joined the opposition, is murdered shortly before he is due to testify against three ministers in a high-level corruption case.

2001 July - Zambia appeals for aid to feed some 2 million people after poor harvests caused by floods and drought.

2001 July - Final summit of the Organisation of African Unity (OAU), launch of the African Union.

2002 January - Levy Mwanawasa is sworn in as president amid opposition protests over alleged fraud in December's presidential elections.

2002 July - Parliament votes to remove ex-president Frederick Chiluba's immunity from prosecution.

2002 October - Government says it will not accept genetically modified (GM) maize to help alleviate the severe food shortages facing three million people.

2003 February onwards - Former president Frederick Chiluba is arrested and charged with corruption. Subsequent long-running trials are dogged by adjournments and procedural problems.

2003 December - Supreme Court confirms death sentences on 44 soldiers for their role in 1997's failed coup; sentences are later commuted by President Mwanawasa.

2004 September - Many charges of corruption against former president Frederick Chiluba are dropped, but within hours he is re-arrested on six new charges.

2005 February - Supreme Court rejects opposition challenge to President Mwanawasa's 2001 election victory, but says ballot had flaws.

Debt relief

2005 April - World Bank approves $3.8 billion debt relief package which will write off more than 50% of Zambia's debt.

Around 50 workers killed in explosion at Chinese-owned explosives factory.

2005 November - President Mwanawasa declares a national disaster and appeals for food aid. He says more than a million Zambians face food shortages owing to drought.

2006 April - President Mwanawasa suffers a minor stroke. He resumes "light duties" after some weeks and later declares himself fit to run for re-election towards the end of the year.

2006 September - President Mwanawasa wins a second term.

2006 October - President announces discovery of oil in the west.

2007 January - Government launches economic recovery plan which envisages encouraging foreign investment.

2007 February - Chinese President Hu Jintao inaugurates a huge mining investment zone at the end of a two-day visit. His itinerary is cut short due to planned protests against the alleged exploitation of local workers by Chinese firms.

2007 May - The High Court in Britain rules that former president Frederick Chiluba and four of his aides conspired to rob Zambia of about $46 million.

2008 August - President Levy Mwanawasa dies, 59, in a Paris hospital, where he was being treated for the effects of a stroke in June.

2008 November - Vice-President Rupiah Banda sworn in as president after a narrow election win over the main opposition candidate, Michael Sata, who alleged fraud.

2009 August - Ex-President Chiluba is cleared of corruption after a six-year trial. The head of the anti-corruption task force is sacked after initiating an appeal against Chiluba's acquittal.

2010 February - Zambia and China sign mining cooperation agreement and deal to set up joint economic zone.

Supreme Court dismisses application by ex-President Chiluba aimed at preventing government from applying British High Court judgment convicting him of defrauding Zambia of $46m dollars.

2010 August - Zambia, China agree to build a second hydroelectric power plant on the Kafue River.

2010 October - Chinese mine managers charged with attempted murder following a multiple shooting at a mine where workers were demonstrating against conditions.

2010 November - UN updates its Human Development Index, which suggests Zambia is now worse off than in 1970, partly due to AIDS.

2011 January - Deadly clashes between police and demonstrators agitating for secession of western Zambia, known as Barotseland.

2011 June - Former President Frederick Chiluba dies.

Change of government

2011 September - Michael Sata becomes president.

2012 August - Chinese mine manager killed during pay protest.

2013 February - The government takes over the Chinese-owned Collum Coal mine after revoking its licence because of safety lapses.

2013 March - Former president Rupiah Banda is charged with abuse of power shortly after being stripped of immunity.

2014 January - Opposition politician Frank Bwalya is charged with defamation after comparing President Sata to a potato in a radio interview.

2014 June - President Sata goes to Israeli on a ''working holiday" amid rumours about his health.

2014 October - President Sata dies.

2015 January - Edgar Lungu becomes president after winning election.

2015 March - President Lungu has surgery in South Africa. He collapsed at an event the month before.

2016 April - Rioting and looting following accusations that Rwandans who have fled to Zambia have been involved in ritual killings. President Lungu speaks of his country's collective shame over mob attacks on foreigners.

2016 August - President Edgar Lungu is re-elected.

2017 April - Opposition leader Hakainde Hichilema is detained and charged with treason, after his convoy failed to stop for that of President Lungu.

2017 June - Forty-eight opposition MPs are suspended from parliament for boycotting an address by President Lungu. They they do not accept Mr Lungu as the legitimate winner of last year's election.

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A chronology of key events: 12th Century - Shona people arrive in the area, later establishing the empire of the Mwene Mutapa, which includes southern Zambia. Became capital of Northern Rhodesia in 1935 Capital of independent Zambia from 1964 Mushroomed in the 1960s Population: 1 million 16th Century - Arrival of peoples from Luba and Lunda empires of Zaire to set up small kingdoms. Late 18th Century - Portuguese explorers visit.

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Zambia MDGs Status | United Nations in Zambia

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During the period 2006-2010, Zambia made significant progress towards meeting the eight Millennium Development Goals (MDGs) particularly in primary school enrollment, child malnutrition and the fight against malaria. However the country will have to make further effort to reduce poverty and maternal mortality, prevent new HIV infections, ensure that children complete secondary school, increase access to clean water and sanitation, and safeguard sustainable environmental development.

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Zambia is one of the world's fastest growing economies. Discover how WaterAid works to make clean water, decent toilets and good hygiene a normal part of life for everyone.

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In a country challenged by poverty and disease, Room to Read Zambia works with the government on our Literacy and Girls' Education Programs. Our expertise allows us to improve early grade education, help revise national curriculum and policy, and help prevent child marriages.

Fueling a love for reading in Zambia

Become a Monthly Investor

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× By continuing to use this site you consent to the use of cookies. Find out more. In a country challenged by poverty and disease, Room to Read Zambia works with the government on our Literacy and Girls' Education Programs. Our expertise allows us to improve early grade education, help revise national curriculum and policy, and help prevent child marriages.

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The Kariba Dam is a double curvature concrete arch dam in the Kariba Gorge of the Zambezi river basin between Zambia and Zimbabwe. The dam stands 128 metres (420 ft) tall and 579 metres (1,900 ft) long. The dam forms Lake Kariba which extends for 280 kilometres (170 mi) and holds 185 cubic kilometres (150,000,000 acre·ft) of water.

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By the mid-1980s Zambia was one of the most indebted nations in the world, relative to its gross domestic product (GDP). The IMF was insisting that the Zambian government should introduce programs aimed at stabilizing the economy and restructuring it to reduce dependence on copper.

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The World Bank has partnered with Zambia since 1955 to support the country's development projects including mining, infrastructure and health.

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Associated British Foods plc - About us - Global manufacturing

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John Bason, finance director at ABF, said: "The reason that no corporate tax is paid in Zambia for the last couple of years is because of our £150m investment building the biggest sugar mill in the country. There are capital allowances available on that, in the same way similar reliefs are available to investors in most countries, including the UK."

Mr Bason said the capital allowances would continue for up to another five years, at which point the company would return to paying Zambia's 10pc rate of corporation tax. He added it was "absolutely not true" that Zambia Sugar was funnelling a third of its pre-tax profits to sister companies in tax havens. Payments were made to Ireland and Mauritius in return for the services of "real people, doing real jobs", he said.

Ireland employed around 20 people - not "none" as ABF company accounts had wrongly disclosed - and no payments went to the Netherlands, as Action Aid claims, he said. "The Netherlands is a holding company to Zambia so dividends go there and dividends come out after pre-tax profit," he said. "We've been wronged."

The tax row comes ahead of a Government consultation on tax avoidance, which will propose that companies that avoid paying their fair share of tax will be barred from bidding for lucrative government contracts. A Cabinet Office spokesman said: "It is only right we ensure that companies that win government contracts are meeting their tax obligations."

Elsewhere, official figures show the US-proportion of foreign-owned companies considered a "risk" by the British taxman - responsible for £1.7bn in corporation taxes - has almost doubled over the past year.

At the end of the 2011-12 tax year, US-owned businesses were responsible for a third of corporation tax revenue from foreign-owned companies that were considered a 'risk' by HMRC, up from 19pc the previous year, according to Pinsent Masons, the law firm, which obtained the figures under Freedom of Information.

The figures come as US companies such as Google, Starbucks, and Amazon have all recently faced questions over their UK tax payments.

An HMRC spokesman said: "HMRC tackles tax risks irrespective of where the ultimate ownership of a company is located."

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Associated British Foods 'denies emphatically' tax avoidance in Zambia

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John Bason, finance director at ABF, said: "The reason that no corporate tax is paid in Zambia for the last couple of years is because of our £150m investment building the biggest sugar mill in the country. There are capital allowances available on that, in the same way similar reliefs are available to investors in most countries, including the UK."

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10 February 2013

With limited detail, ActionAid has attempted to use Zambia Sugar's tax affairs to gain publicity at the expense of accuracy.

Illovo denies emphatically that it is engaged in anything illegal, immoral or in any way designed to reduce the tax rightly payable to the Zambian government. We are very proud of Zambia Sugar and the major contribution that it makes to the Zambian economy.

Despite Illovo's attempts to persuade ActionAid to improve its report by correcting errors and introducing more balance into its analysis, ActionAid has decided to publish a highly inflammatory account of the company's tax position that is incomplete at best and factually wrong in places. Illovo has engaged openly with ActionAid to set out the correct position. ActionAid has failed to reflect this in its report. ActionAid has clearly decided that its campaign should take priority over the facts.

Illovo does not engage in aggressive tax planning. In fact, the group has an open and transparent relationship with all the tax authorities in the jurisdictions in which it operates. For the year ending 31 March 2012, the Illovo Group's effective tax rate was 30.3%. The group has paid R1.3 billion (£120m) in taxes over the last five years and collected another R1.9 billion (£180m) in employment and sales taxes.

Illovo's contribution to Africa is not limited to tax payments. The group employs 14,500 permanent employees and another 17,000 seasonal workers, and its substantial investment in facilities has brought huge benefits to the African nations in which it operates, including Zambia, the country which ActionAid has selected for particular focus in its report. The group's businesses form the economic and social backbone of the local communities in which they operate, providing infrastructure, healthcare facilities and schools.

In Zambia itself, Illovo invested R1.6bn (£150m) to double the size of the sugar mill and improve productivity - gains that will benefit the nation for many years to come. The mill and related activities provide employment for more than 5,000 people. As a direct consequence of this investment in a sustainable business, capital allowances and tax incentives were available to the company as they are to other investors. The availability of these reliefs in Zambia serves to attract this type of long-term, substantial investment in the country in the same way that similar forms of relief are available to investors in most countries - including the UK. The mill and its associated operations will be making a substantial tax contribution for many years after the reliefs have expired. Rather than denigrate this investment, ActionAid should welcome it as an example of how governments in developing economies can drive economic growth by attracting inward investment, bringing long-term economic benefits to local communities. African governments should be as free as any other to attract investors.

ActionAid's report alleges that Zambia Sugar pays fees to other parts of the Illovo group in order to reduce tax. This is absolutely not true. These payments are made in return for the services of real people, doing real jobs, adding real value in Zambia and have nothing to do with tax planning. There are no royalty payments, no franchise agreements. The payments are for export services, third party contractors, and expatriate personnel in Zambia. The payments are charged at cost, and there is no artificial reduction in profit in Zambia sugar as a result. The payments simply reflect the reality of the group's operations.

Moreover, the ActionAid assertions are clearly illogical. There is no tax advantage in moving profits from Zambia where the tax rate is 10%, to other group companies where the income would ultimately be taxed in South Africa at 28% due to specific South African tax rules. If it were engaged in this activity, this has to be an example of spectacularly unsuccessful tax planning where profits are shifted into higher tax regimes.

Illovo believes that ActionAid's work on the ground in many countries is laudable. However, this report is clearly designed with political campaigning in mind. It is inaccurate and misleading. As such, it demeans ActionAid and undermines the trust that should help NGOs and business to work together to bring swifter economic and social prosperity to communities in Africa.

For further information please contact:

Citigate Dewe Rogerson
Chris Barrie / Clare Simonds
Tel: 020 7638 9571
Mobile: 07968 727289

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With limited detail, ActionAid has attempted to use Zambia Sugar's tax affairs to gain publicity at the expense of accuracy. Illovo denies emphatically that it is engaged in anything illegal, immoral or in any way designed to reduce the tax rightly payable to the Zambian government.