Country Leader's Message

Zambia has registered good economic growth in the past 5 years. Since 2003 GDP has grown by more than 5%. During this period, inflation reduced from about 17% to less than 10% in 2007. The exchange rate of the kwacha (the local currency) to the US dollar has also been relatively stable since 2003. Lending rates decreased from 40% to about 18% during that period. The economic growth, on the back of the favorable microeconomic environment, has lead to foreign reserves to increase from just over USD 200 million in 2003 to over USD I billion at the end of 2007. Foreign Direct Investment is forecast to increase six fold from USD 500 million in 2006 to USD 3 billion in 2008.

Zambia’s economic prospects are viewed as favorable. Real GDP growth is forecast to be at least 6% annually from 2008 to 2010. Past and future growth is mainly driven by mining, construction and services sectors. However the country has immense untapped potential in agriculture and tourism. Greater investment in these two sectors could push up the real GDP growth above the forecast 6%.

PricewaterhouseCoopers has operated in Zambia since the mid 1950’s and offers industry - focused assurance, tax and advisory services for public and private clients in four areas:

• Corporate accountability
• Risk management
• Structuring and mergers and acquisitions
• Performance and process improvement

We use our network, experience, industry knowledge and business understanding to build trust and create value for clients.