The team comprised Mr. Andrews (head-AFR), Mr. Tharkur (AFR), Mr. Fassina (FAD), Mr. Giancarlo Gasha (MFD), and Mr. Thomas (PDR). The paper includes contributions from other members of the Zambia team and World Bank staff.
Including security forces, employees of grant-aided institutions, and other bodies, total government employment stands at about 160,000.
In 2001, Zambia met three out of sixteen benchmarks under the HIPC Initiative expendituretracking and action plan (AAP). By 2003, four of the benchmarks were met.
This discussion draws upon the conclusions of the (unpublished) report of December 2002, “Zambia: Privatization Review—Facts, Assessment and Lessons,” prepared by World Bank staff at the request of the Minister of Finance and National Planning.
The withdrawal of Anglo-America from KCM in 2002 did not lead to a renewed need for budget support. The exit package negotiated with AA made provisions for operating losses through to 2004 and copper prices have been sufficient to cover KCM’s operating costs.
In 1998, when the company was a severe drain on the government budget, measures taken to improve its financial position amounted to quasi-fiscal subsidies involving lower electricity tariffs, import duty concessions, and lower tax rates.