AfDB says Zambia needs $3.5 billion annually for its structural transformation

About US$3.5 billion is needed annually for Zambia to finance its acceleration of the much-needed structural transformation and sustained policy reforms.

The African Development Bank (AfDB) had pointed out the need for Zambia to accelerate its structural transformation and diversification.

In its African Economic Outlook 2024, the Bank indicated that Zambia would require US$3.5 billion in annual financing to achieve this goal.

“Zambia needs to accelerate its structural transformation and diversification. Structural transformation will require US$3.5 billion in annual financing, along with improvements in institutional quality and sustained policy reforms,” the Bank stated.

According to the Bank, Zambia’s copper contributed disproportionately to the Gross Domestic Product (GDP) in 2022, resulting to a 12.9 percent and 70 percent to export revenues.

The service sector contributed about 57 percent of GDP, while industry contributed 33.8 percent, with manufacturing contributing just 8.1 percent.

Construction, utilities and industrial activities accounted for about 10.9 percent of GDP.

“Agriculture’s contribution to GDP shrank from 9.3 percent in 2012 to 3.3 percent in 2022, even though the sector employs 24 percent of the labour force (58.5 percent men and 41.5 percent women).

“Productivity is low, as evidenced by widening productivity gaps between sectors,” AfDB stated.

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