Zambia is a politically stable, multi-party democracy, rich in natural resources. Zambia’s gross domestic product per capita in 2024 was $1,187, and more than 60 percent of the population lives below the international poverty line of $2.15 per day (the average poverty rate across sub-Saharan Africa is 45.5 percent). With a population of 21.3 million people, three-quarters of whom live in rural areas (3.3 million people live in the capital Lusaka), Zambia presents a relatively small domestic market that is geographically dispersed across a country slightly larger than the state of Texas. Zambia is one of the world’s youngest countries by median age, and, given its fertility rate (26th highest globally), its population is projected to double by 2050.

From 2000 – 2018 (pre-COVID), Zambia had a robust average annual GDP growth rate above six percent; it has been slowly recovering from the pandemic’s economic impact. In 2024, Zambia’s GDP was $26.33  billion, an increase of 3.8  percent. The mining sector constituted 13 percent of GDP in 2022 but accounted for only 2.5 percent of total employment. While 75 percent of Zambians work in agriculture, the sector comprised only 4 percent of GDP in 2023. Trade, the largest sector, comprised 20 percent of GDP, followed by construction (14 percent), manufacturing (10 percent), and transport (9 percent). Despite comprising only 3 percent of GDP in 2023, the Information and Communication Technologies sector (ICT) has been Zambia’s fastest growing  since 2011. Zambia’s fiscal year ends December 31. 

After defaulting on a Eurobond payment in November 2020, in December 2021, Zambia and the International Monetary Fund (IMF) reached agreement on a $1.4 billion, three-year, extended credit facility program to help restore macroeconomic stability and promote inclusive economic recovery. Simultaneously, Zambia began the process of restructuring its debt under the G20 Common Framework. While official creditors have reached agreement on restructuring Zambia’s bilateral debt, negotiations to restructure its privately held debt on terms comparable to those availed by official creditors are ongoing. Due to Zambia’s debt crisis and the IMF program’s borrowing constraints, the government’s ability to attract or financially support new investments is highly constrained. 

Zambia has liberalized prices on goods and does not have currency controls. With an annual average exchange rate of 26.19 Kwacha (ZMW) per U.S. dollar in 2024, the Kwacha depreciated by 29.4 percent compared to its 2023 average exchange rate. However, since May 2025, the exchange rate has fallen to 20-22 and has remained stable, demonstrating significant and sustained appreciation. In  2024, Zambia’s central bank, the Bank of Zambia, averaged   4.6 months of hard currency import cover. In 2024, annual inflation remained relatively high, averaging 15 percent, compared to 10.3 percent in 2023. Zambia’s exports are dominated by copper ($8.2 billion), which comprised 75 percent of total export earnings in 2023. All other mining products and byproducts, including precious stones, totaled less than eight percent. Zambia’s second largest single export category (salt, sulphur, stone, plaster, lime, and cement) comprised only three percent of 2023 exports earnings. In 2023, Switzerland was Zambia’s largest export destination (37 percent of total exports). 

However, this is because many mineral commodity traders are located in Switzerland, rather than due to actual bilateral trade in goods and services. The People’s Republic of China (PRC) was Zambia’s second largest export destination (19 percent), followed by the Democratic Republic of the Congo (DRC – 18 percent), and Singapore (7 percent). 

In 2023, Zambia’s top five imports were industrial machinery ($1 billion; 16 percent of total imports), oil and mineral fuels ($750 million; 12 percent), motor vehicles and parts ($720 million; 11.5 percent), fertilizer ($450 million; 7 percent), and plastics ($410 million; 6.5 percent). Its primary sources for imports in 2023 were:  South Africa (29 percent), PRC (16 percent), and the United Arab Emirates (7 percent). 

In 2024, U.S.-Zambia two-way trade in goods totaled $282.1 million, according to the U.S. Census Bureau. When taking services into account, two-way trade in goods and services totaled $578.4 million, according to the U.S. Trade Representative (USTR). Zambia’s goods exported to the United States in 2024 totaled $168.5 million and were primarily comprised of refined copper, precious stones, and coffee. U.S. goods exports to Zambia in 2024 totaled $113.6 million and were primarily comprised of machinery, vehicles, and rubber.    

Political Environment

For background information on the political and economic environment for Zambia, please click on the link to the U.S. Department of State Countries & Areas website.