Zambia - Future trends
The Zambian government projects that the privatization of the giant mining parastatal (ZCCM) will lead to the increased efficiency of copper production, improved export earnings, and a subsequent influx of foreign exchange in order to correct the economy's sizeable balance of payments deficit. The proposed privatization of other major parastatals in the telecommunications, electricity, and transport sectors is expected to produce similar results. In part due to this adaptation of free market reform, Zambia's external creditors seem likely to write off US$670 million of debt in 2001, continue to reschedule the repayments of a large proportion of debt, and extend the level of credit available to the government by US$4.5 billion in order to prop up the economy. However, signs of a global recession in early 2001 indicate that the world market for Zambia's exports may become less profitable. This will have a severely negative impact on the country's population and the growing non-traditional export sector, and make the repayment of outstanding debt unfeasible.