COUNTRY REPORT — The African nation of Zambia counts on its

Zambia is counting on its copper industry to remain a major source of foreign exchange and employment.

The government of Frederick Chiluba says copper will continue to be the mainstay of the Zambian economy, at least in the medium term, while efforts are made to diversify the economic base.

In addition to the copper operations, gold and gemstones (such as emeralds, amethyst and opal) are mined through small-scale operations. Known as Northern Rhodesia until it acquired the status of a republic in 1964, Zambia is also pinning its hopes on tourism to give the national economy a boost. Lying in the tropical belt of southern and central Africa, Zambia offers safari parks in which visitors can view game either from open vehicles or on foot. Perhaps the most famous tourist stop is Victoria Falls on the Zambesi River, which forms the border with Zimbabwe to the south. Joshua Siyolwe, Zambian high commissioner in Ottawa, says his government is planning an investment seminar in the capital city of Lusaka during the first quarter of 1994.

A former teacher, Siyolwe twice served in Moscow during his diplomatic career, first during the mid-1970s as a counsellor at the Zambian embassy and then in the early 1980s as ambassador. He also served as a counsellor at the Zambian embassy in Washington, D.C., in the early 1970s.

The most important mineral area in Zambia is the central Copperbelt region. Developed in the 1920s, Copperbelt is reported to contain an inventory equal to about one-sixth of the world’s known copper reserves.

The government took control (by acquiring a 51% interest) of the country’s two major copper mining companies in 1969, and then merged these companies into Zambia Consolidated Copper Mines (ZCCM) in 1982. (The state now has a 60.3% interest in ZCCM.)

Inefficient operations and high production costs, together with the strain of having to sell into an ever-changing and competitive world copper market, have combined to hamper development of the Zambian program.

To correct the situation, the current government has put in place policies aimed at reducing spending on personnel and improving procurement and management of inventory. In addition, ZCCM will be restructured and non-mining activities divested.

Foreign investment will be sought for ZCCM’s undeveloped copper resources — in particular, the Konkola, Nkana and Chambeshi deposits.

In the gemstone sector, the government says mining and marketing are being streamlined with a view to developing viable mining operations and obtaining market-value prices for products. Small-scale mining of other minerals, in particular gold and silver, will be encouraged.

Zambia was ruled from 1964 to 1990 by President Kenneth Kaunda, whose United National Independence Party was the only party allowed to hold office. Constitutional amendments in 1990 led to the formation of opposition parties.