The Development Effectiveness Review 2013 for Zambia provides a comprehensive report on the Bank’s performance in the country and tracks how Bank’s operations have contributed to the Zambia’s development results. During the last decade, Zambia has achieved spectacular levels of growth, averaging over 6% per year, and showing an impressive GDP per capita increase, from $330 in 2002 to $1,469 in 2012. By 2010, this strong growth performance had moved Zambia from the ranks of least-developed countries to lower-middle-income status – a remarkable achievement.
The 58-page publication emphasizes that Zambia’s strong growth performance is by no means fortuitous. It has been underpinned by sound macroeconomic management, with tight control over inflation and a stable currency, and supported through strategic investments in overcoming transport and energy bottlenecks. However, while economic growth is indispensable to lifting more Zambians out of poverty, it is not sufficient. Zambia needs to pay close attention to the quality of development, and to press ahead with structural change in its economy. Evidence suggests that Zambia is on track to achieve greater diversification towards labour-intensive sectors such as manufacturing and commercial agriculture. “In recent years there have been encouraging signs of diversification in the Zambian economy, with a fivefold increase of non-traditional exports, from $566 million in 2005 to $2,852 million in 2012,” said Simon Mizrahi, Director of the Bank’s Quality Assurance and Results Department. “This Development Effectiveness Review examines Zambia’s progress in placing its current strong growth performance on sustainable foundations, and it looks at how the Bank is contributing to this ambitious development agenda.”