Privatization in Zambia Country Fact Sheet Produced by MIGA and the Africa Region of the World Bank – June 2001

Privatization Background

Institutional Framework

Privatization Status

Outlook

More Info

Privatization Laws

FDI Information in IPAnet

Doing Business Guides in IPAnet

Relevant Web Sites

Zambia Investment Centre

Zambia Privatisation Agency

Map of Zambia

For Further Information Contact

Zambia Privatisation Agency
Privatisation House
Nasser Road
P.O. Box 30819
Lusaka, Zambia
Tel:223859, 222858, 220177, 227791
Fax: 225270, 225390
E-mail: zpa@zpa.org.zm

Source Documents

Privatization Background

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The inefficiency and poor performance of most State Owned Enterprises have motivated the Zambian government to adopt a privatization program in 1992. The idea was to implement a growth strategy with a strong emphasis on private sector development. Initially and under the Divestiture Sequence Plan, 150 were targeted to be divested.

Institutional Framework for Privatization

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The Privatization Act was passed in 1992 to set the legislation and regulatory framework. Among other regulatory components, it established the Zambia Privatization Agency (ZPA) to ensure the transparency and effectiveness of the privatization program. The independence of the Agency and the quality of its staff, combined with a strong commitment of the government, have been and will certainly continue to be a determining factor of the remarkable success of the privatization program.

The institutional framework has been strengthened by the 1993 Companies and Securities Acts and by the creation, with the collaboration of the International Finance Corporation, of the Lusaka Stock Exchange, LuSE.

The Agency is not only implementing and supervising the privatization program but is also promoting a broad ownership and this, in collaboration with the Zambia Privatization Trust Fund (ZPTF).

The World Bank is assisting in the Private Sector Development and more specifically in the privatization program in Zambia through different projects; among them: the Privatization and Industrial Reform technical Assistance Project, closed in December 1999 and the Economic Recovery and Investment Promotion Technical Assistance (ERIPTA) Project, approved in June 1996 and closing in December 2001.

Privatization Program Status

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From the beginning of the program to April 2001, out of a working portfolio of 280 companies, 254 privatization transactions were recorded. This clearly indicates the determination of the Zambian government to liberalize the economy and this, in all sectors and in different levels of strategic importance. To illustrate, in 2000, 8 transactions through assets sale on competitive basis were carried out in various entities of the country’s largest companies, Zambia Consolidated Copper Mines (ZCCM).

Outlook

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The government and the Privatization Agency are persisting in their effort to put in the hand of the private sector more public enterprises. This effort will certainly be reemphasized in the Poverty Reduction Strategy Paper to be presented in November 2001.

- Among 5 companies recently listed as privatizable, we can note that two are from the transport sector: Zambia Railways (ZR), through concession and National Airports Corporation (NAC), through lease. Other potential candidates for privatization are: Indefeni Petroleum Refinery, Zambia Postal Services Corporation (ZAMPOST), Zambia Electricity Supply Corporation (ZESCO) and Zambia National Commercial Bank (ZANACO).

Sources

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Privatization and Industrial Reform Credit Project (02), the World Bank, Washington, DC, 1992

Zambia Privatization Agency (ZPA)