Zambia

Featured content

Zambia’s Constituency Development Fund: Policy considerations

Katherine E Casey, Andrés Felipe Rodríguez, Camilla Sacchetto, Shahrukh Wani

Policy paper

Harnessing the power of electronic fiscal devices to increase VAT revenue in Zambia

Twivwe Siwale, Brian Dillon, John Mulenga, Kangwa Musole

Policy brief

About

As one of the youngest and most urbanised countries in Africa with large copper reserves, Zambia has experienced high levels of economic growth during surges in global commodity prices but has struggled to reduce poverty and inequality. The economy is dominated by mining and agriculture, but rapid urbanisation and the increasing services sector are driving structural transformation. Several structural problems constrain widespread prosperity including high public debt, dependence on a single commodity, periodic electricity crises, and low agricultural productivity.

Through a resident country program based in Lusaka, IGC supports Zambia's quest for sustainable and inclusive economic growth by working with the government on a range of policy priorities where data and economic research can support policy decisions. For example, IGC has supported improving the recruitment of community health workers, has measured the effects of power outages on firms, mapped informal settlements in Lusaka, has evaluated if electronic fiscal devices are effective in raising tax revenue, and has mapped over 40,000 businesses in Lusaka.

Presently, the IGC has engagements in improving the management of the mining sector, building a fair property taxation system, understanding constraints to agriculture productivity, evaluating and piloting reforms to the Constituency Development Fund, piloting a consumer incentive scheme to increase sales tax revenue, enhancing civil service performance, improving the role of data in policymaking, and supporting electricity sector reforms. Across these engagements, IGC focuses on supporting Zambia's transition to resilient, low-carbon and inclusive pathways to growth.

The cornerstone of IGC's work in Zambia is high-trust relationships with policymakers to co-produce relevant and rigorous research. IGC works with several government departments including the State House, the Ministry of Finance and National Planning, the Ministry of Mines and Minerals Development, the Ministry of Agriculture, the Ministry of Energy, and the Ministry of Local Government. IGC also supports economic development dialogue in Zambia, such as through the 2022 Economic Growth Forum.