Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).
ZAMBIA
FY 1997 FY 1998 FY 1999 Actual Estimate Request Child Survival and Disease.......... $8,600,000 $7,300,000 $ 7,650,000 Development Assistance.............. $9,000,000 $11,011,000 $11,600,000 P.L. 480 Title II........................... $163,350 --- ---
Introduction
It is in the U.S. interest for Zambia to remain a friendly, democratic state contributing to regional stability and firmly on the path to sustainable development. Zambia shares borders with the new Democratic Republic of Congo and Angola and is a buttress against potential chaos. It has played a role in facilitating African conflict resolution, including peacekeeping, and it is in the U.S. interest for this to continue. Deep privatization reforms have created opportunities for U.S. trade and investment as well as for more Zambian economic participation in southern Africa. Zambia's large copper deposits are encouraging U.S. entry into the Zambian market, and leading American mining firms are in the process of acquiring large scale mining assets which are being privatized.
The Development Challenge
There are fundamental constraints to Zambia realizing full economic potential. Labor productivity is low: the HIV/AIDS pandemic increases absenteeism and kills many senior managers; education levels, especially for girls, remain low and inhibit productivity gains; the outreach system to farmers is weak; rural markets are fragmented and undeveloped; corruption and weak governance erode public confidence; drought constantly lurks as a possibility in any year. In addition, internal transport links are poor, which makes the cost of marketing very high. Zambia is a landlocked country and therefore very vulnerable to high transport costs. Inflation, while down from the 200% of the past, remains around 20%; public expenditure controls are weak, the banking sector is also fragile; and domestic savings are low. Public external debt at the end of 1997 was $7.1 billion. These constraints are symptomatic of an economy in transition from the statist era to a free-market regime.
Zambian prospects for realizing its full potential are good if it stays the course on its reform path, and if it builds the systems to implement the necessary economic and political changes. Privatization of the remaining parastatals will lead to significant new investment, more productive employment, and increased demand for local goods and services. Zambia's open trading regime presents new opportunities primarily in agriculture, for traders, consolidators, producers, and processors. Large companies and multi-national corporations are ready to take on a major role under the new reforms. However, new and expanded small and medium enterprises must become more significant partners and fill the gap left by the departure of government marketing functions. With the agriculture sector as the primary growth area, and the privatized mining sector as a catalyst, the economy appears poised for a modest takeoff. Social services also have improved, and far-reaching reforms to decentralize the health system have resulted in reduced fertility, increased use of contraceptives and improved immunization coverage for Zambian children. Political reforms have achieved less progress, and the failure of multi-party cooperation continues to be a domestic and international issue.
Other Donors
Development assistance to Zambia has been falling in recent years, although it still amounted to more than $740 million in 1995, roughly about 20% of gross domestic product. In that year the World Bank was the lead donor and contributed $281 million. Bilateral donors accounted for about $264 million
in assistance to Zambia, with Japan being the largest donor, followed by the United Kingdom, Germany and the Netherlands. The United States was Zambia's seventh largest bilateral donor, with 2% of total development assistance.
FY 1999 Program
USAID will foster an economic, political and social environment that promotes positive gains in living standards, increased opportunities for participation in the economy and the political system, and improved health for all Zambians.
In line with the Government of Zambia's desire to promote business development and encourage competition and investment for recovery and growth, USAID will facilitate broad-based participation by private enterprise in key economic sectors of the country. USAID support will move the majority of smallholder rural producers into the diversified market economy, develop the business skills of rural non-farm entrepreneurs, along with associated small and micro-enterprise finance. USAID also will support better and increased natural resource management. USAID will supplement Zambian-led privatization efforts which already have resulted in more than 200 privatizations to date by providing skills and management training to new rural entrepreneurs.
USAID's health sector support program will play a key role in ensuring that the Zambia health reforms lead to significant health impact. The GRZ is committed to providing equity of access to cost-effective, quality health care, as close to the family as possible. The Zambia health reforms which are widely acclaimed by the World Bank, the World Health Organization, the United Nations Children's Fund and bilateral donors, take a decentralized approach in ensuring that all Zambians have equitable access to both public and private sector health service delivery. The Government of Zambia's health sector reform program is an example of the African leadership that USAID seeks to promote in order to ensure ownership and sustainability of its development assistance efforts. In Zambia, the integrated delivery of health interventions has proven to be a cost-effective and technically sound framework for enabling individuals to improve their own health, for expanding access to services at the community level through the private sector, and for improving the quality of services.
Consolidating democracy in Zambia remains a challenge. In FY 1999, USAID assistance will continue support for civil society institutions, to deepen and broaden citizens' understanding of and demand for democratic institutions, and to help those institutions function better. New activities will include support for the judiciary, which has emerged as a defender of democratic values; and assistance to Parliament to enable it to be a more effective forum for citizen participation and public debate.
ZAMBIA
FY 1999 PROGRAM SUMMARY
(in Thousands of Dollars)
USAID
Strategic ObjectivesEconomic Growth & Agriculture
Population & Health
Environment
DemocracyHuman Capacity Development
Humanitarian Assistance
TOTALSS.O. 1 Increased Sustainable Rural Incomes
-DA
4,900
---
2,000
---
---
---
6,900
S.O. 3 Increased Use of Integrated Child and Reproductive Health and HIV/AIDS Interventions
-DA
-CSD
---
---
3,000
7,650
---
---
---
---
---
---
---
---
3,000
7,650S.O. 4 Expanded Opportunity for Effective Participation in Democratic Governance
-DA
---
---
---
1,700
---
---
1,700
Totals
-DA
-CSD
4,900
---
3,000
7,650
2,000
---
1,700
---
---
---
---
---
11,600
7,650
USAID Mission Director, Walter E. North
ACTIVITY DATA SHEET
PROGRAM: ZAMBIA
TITLE AND NUMBER: Increased Sustainable Rural Incomes, 611-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $6,900,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003
Purpose: To reduce the state's role in the provision of goods and services which are more efficiently produced by the private sector and to increase the efficiency and productive capacity of rural non-farm enterprises.
USAID Role and Achievements to Date: The government has largely fulfilled its stated commitment to disengage from its prominent role in national markets. To date, Zambia has privatized 225 enterprises, including the primary player in the Zambian copper industry, Zambia Consolidated Copper Mines. USAID's successful assistance to this large-scale privatization process has created market opportunities for both local and international investors and businesses, and has freed up public resources and talents. Zambian entrepreneurs in small manufacturing and commercial operations in rural markets now are faced with the challenge of learning how to do business in an unprotected environment; this includes entering into expanded trade within the southern Africa region. USAID assistance in business training and hands-on technical expertise is playing a large role in strengthening these small and medium-size private sector enterprises. The success of these programs is evident through the heavy demand for services, and the impact that program beneficiaries are having through increased production and incomes. Zambia's limited expertise in trade policy, and protocol negotiations is a major impediment to economic growth and the expansion of exports into regional and international markets. USAID will assist both the private sector and the Government of Zambia (GRZ) to increase analytical capacity in this crucial area.
USAID has also provided opportunities for rural families to improve their welfare. USAID supports the policies of the GRZ and other donors through examples of on-the-ground success and lessons learned in productive rural activities. Successes include an innovative sorghum seed distribution program, and a rural group business development program in which maize farmers selling in groups increased their incomes by 38% over selling as individuals. Other replicable activities include a small-scale oilseed press which in combination with improved sunflower seed has resulted in a profitable oilseed processing industry. Farmers crushing their own sunflower seed triple their harvests' value. USAID also has been successfully working with Zambian non-governmental organizations (NGOs) in conducting training programs for village scouts in game management and natural resources conservation techniques.
Description: Private sector associations, such as the USAID-supported Zambia Association of Chambers of Commerce and Industry and the Zambia Association of Manufacturers are effectively lobbying for privatization of utilities. Both organizations are partnering with the government to implement trade protocols with neighboring countries, and they require assistance in trade policy, negotiations and protocol drafting. The Chamber is also taking the lead in providing training and services that enable new and newly privatized companies to cope in a market-oriented environment. These companies are significant partners in economic growth and are taking advantage of new business opportunities to fill the gap left by the departure of the GRZ from input supply and output marketing. USAID's continued support to these efforts is critical to their success.
USAID is helping create a prosperous small-holder private agricultural economy by supporting rural group business development, farmer-initiated marketing enterprises, and rural savings mobilization. USAID also supports food security programs managed through village committees and community- based natural resources management. With support from USAID's privatization efforts, the government has reduced its role in agricultural production and marketing, and a number of private agribusinesses have been revitalized. These include fertilizer and maize marketing firms, flour mills,
feed mills, oil extraction plants, cold storage plants, cashew and coffee plants, seed multiplication and distribution firms, and several food canning plants. With these developments in the agroprocessing economy, agribusinesses have turned to the small farmer as a raw material supplier and have developed management systems including outgrower schemes and contract producers which improve the economics of working with them as a group.
Host Country and Other Donors: USAID is the leading bilateral donor supporting privatization. The World Bank is conditioning balance-of-payment support on progress achieved in privatization. Norway, Denmark, Germany, and the United Kingdom are the other major bilateral partners in this sector.
Rural business activities are guided by the Ministry of Agriculture, Food, and Fisheries. Private voluntary organization activities were initially funded by Canadian and British assistance and rely on government agency expertise where appropriate. Other rural activities receive Dutch, International Fund for Agricultural Development, and World Bank financing and rely on government extension services. The European Union, Japan, Norway and Great Britain coordinate resource conservation programs with USAID.
Beneficiaries: The Zambian private sector which through privatization and a better enabling environment receives adequate rewards for their initiative. In turn, all citizens will benefit from a stronger and more open private sector through employment opportunities, lower prices, improved quality and diversity of products and services. Specific beneficiaries of rural-based activities include disadvantaged rural communities, people and animals in game management areas, small scale farmers, and agribusiness operators.
Principal Contractors, Grantees or Agencies: U.S-based implementing agencies working on privatization include International Executive Service Corps and Clark Atlanta University. The key local grantee is the national chamber of commerce. U.S. institutions involved in implementation of agricultural and rural activities include the Cooperative League of the United States of America, CARE, Africare World Food Program, Cargill Technical Services, Associates in Rural Development, and the New York Wildlife Society. Key local agencies include the Ministry of Tourism and the Ministry of Agriculture, Food and Fisheries.
Major Results Indicators: Baseline Target Private sector share of gross domestic product 45% (1992) 60% (1998) Private sector share of formal employment 20% (1992) 60% (1998) Gross revenues from the sale of state-owned enterprises $80 million (1995) $1,500 million (1998) No. of farmers using improved technologies 22,500 (1997) 145,000 (2002) Increased net income per rural non-farm enterprise member $124 (1997) $271 (2002) Increased non-traditional exports (millions) $271 (1996) $450 (2002)
ACTIVITY DATA SHEET
PROGRAM: ZAMBIA
TITLE AND NUMBER: Increased Use of Integrated Child and Reproductive Health and HIV/AIDS Interventions, 611-S003
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $3,000,000 DA; $7,650,000 CSD
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To improve delivery of decentralized integrated health services.
USAID Role and Achievements to Date: USAID's program is designed to ensure that the Zambia health reforms lead to sustainable improvements in the health status of Zambians. USAID's strategy is to increase the use of integrated child and reproductive health, and HIV/AIDS interventions. USAID will develop sector program assistance support for the health sector to expand the capacity of the GRZ to bring the benefits of health reform to the people of Zambia.
Findings of the 1996 Zambia demographic and health survey (DHS) demonstrate that fertility continues to decline. Zambian women will have on average 6.1 children during their childbearing years. This rate represents a substantial decline from the 1992 DHS average of 6.5 children. In 1992, nine percent of married women age 15-49 used a modern method of contraception. Since then, this figure has reached 15% of women. Most of the growth in family planning has been the result of a significant increase in the use of USAID-financed oral contraceptives and condoms sales. In the last six years, childhood vaccination has become more widespread, with nearly 80% of children receiving childhood immunizations, as compared to 67% in 1992. USAID support for polio eradication in 1996 and 1997 contributed to two years of highly successful National Immunization Days, which reached over 90% of targeted children. While the 1996 DHS also found that infant and under-five mortality rates remain very high, the rate of increase is showing signs of slowing, despite the HIV/AIDS pandemic.
The HIV/AIDS epidemic in Zambia appears to have evolved into a mature, endemic phase. Nationally, HIV seroprevalence seems to have stabilized over the past three years at 25% in urban and 13% in rural settings--with a national average of 20% in the 15-45 age group with significant behavioral impact, especially among youth. This impact has been manifested through delaying the onset of sexual activity by youth, increased condom use, and a decreased number of sexual partners. USAID funding supports a social marketing program with sales of male condoms now averaging more that 550,000 per month, which is one of the highest in Africa on a per capita basis. In 1997, USAID supported the introduction of the female condom, one of the first social marketing initiatives in Africa to promote this new method of family planning.
Description: To address critical child survival issues, USAID is assisting Zambia to become the first country in the world to implement an integrated program which combats primary childhood diseases including diarrhea, acute respiratory infection, measles, and malnutrition. This program also upgrades the capacity of health workers to improve clinical case management. USAID is also taking a leadership role in addressing malaria, which is the leading killer of children under five years of age, by including Zambia as one of four countries participating in USAID's Africa Integrated Malaria Initiative. USAID is also assisting Zambia to accelerate implementation of a national Vitamin A strategy. This will include support for making Zambia the first country in sub-Saharan Africa to fortify sugar with Vitamin A, and expanding Vitamin A capsule distribution to prevent micronutrient deficiency. In support of Zambia's child survival programs, USAID and the Embassy of Japan will increase joint support for malaria control activities, Vitamin A deficiency reduction, and to expand the participation of the private sector to deliver essential health services.
USAID will continue to expand contraceptive choice and to make contraceptives more accessible to women and men who choose to limit their family size. USAID recently launched a Men's Involvement
in Reproductive Health Initiative. USAID is planning to support the expanded implementation of interventions to address the high maternal mortality rate in Zambia. Efforts to expand the national response have included launching multisectoral strategies to mobilize efforts among the GRZ ministries, local government authorities, the military, police, local court justices, churches, and non-governmental organizations (NGOs) in the development and implementation of HIV/AIDS programs. USAID is supporting the dissemination of an AIDS Impact Model for Zambia to expand leadership support for HIV/AIDS policies and programs and to provide inputs for action-oriented strategic planning at national, regional and district levels. USAID is accelerating efforts to address adolescents/youth as a key target group. Peer-educator-promoters, youth radio shows, and a youth newspaper called "Trendsetters" are expanding youth access to critical information.
The country's formal and informal social support systems are also in danger of being overwhelmed by the need to care for sick family members and for the enormous and growing number of AIDS orphans, conservatively projected to exceed 600,000 by the year 2000. In response, USAID recently initiated a new set of activities to improve the quality of life of orphaned/vulnerable children in Zambia. The majors elements of this program are expanding the delivery of cost-effective support services through NGOs and community-based organizations.
Host Country and Other Donors: USAID is the third ranking donor, behind the United Nations Children's Fund and Denmark, in support of child survival activities. The United Kingdom, the Netherlands and Sweden are close partners in overall funding, but USAID is the primary donor in support of HIV/AIDS prevention and family planning service activities.
Beneficiaries: The ultimate beneficiaries of USAID supported activities are the urban and rural population who take increased responsibility for their own health. The intermediate beneficiaries include public sector institutions and facilities, private sector institutions and private voluntary organizations, Ministry of Health organizational units, cooperating partners (other donors) and contractors.
Principal Contractors, Grantees or Agencies: USAID implements family planning service activities through U.S. institutions which include CARE, John Snow Inc., Johns Hopkins University, Population Services International, and the Population Council. HIV/AIDS prevention activities are implemented through the U.S. groups Project Concern International and Population Services International; and child survival activities through the U.S. organizations of Management Sciences for Health, the Academy for Educational Development and John Snow, Inc.
Major Results Indicators: Baseline Target Modern contraceptive prevalence rate 15% (1996) 22% (2002) Condom use (female/male) 24/35 (1996) 45/50 (2002) Children 12 -23 months immunized 78% (1996) 90% (2002) Reported condom use in most recent, high risk sexual intercourse 35% (1995) 55% (2002)
ACTIVITY DATA SHEET
PROGRAM: ZAMBIA
TITLE AND NUMBER: Expanded Opportunity for Effective Participation in Democratic Governance, 611-SO04.
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1999: $1,700,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: To increase the participation in and transparency and accountability of government institutions.
USAID Role and Achievements to Date: The goals of USAID's program in democracy and governance in Zambia are: 1) to achieve government accountability; 2) to assure that public decisions are accessible and effective; 3) to support the role of privately owned media; and 4) to encourage the conduct of free and fair elections. To achieve these goals, USAID supports civil society non-governmental organizations (NGOs), training institutions, and the Government of Zambia (GRZ). Through USAID support, over 40 civic education NGOs have implemented grassroots programs encouraging citizens to register, and to vote, and seek accountability from their representatives. While the United States decided not to support international monitoring of the 1996 elections, it was the major supporter of the Clean Campaign Committee, a coalition of 18 NGOs which campaigned to level the electoral playing field and avoid violence in the elections. Noteworthy accomplishments during 1996 included: the level of voter turnout achieved and peaceful circumstances of the 1996 elections; the achievement of autonomy from government of a key public media institution, the Zambia Institute for Mass Communication; and the adoption of a new cabinet handbook incorporating new procedures developed with USAID support. Until June 1996, USAID also supported improved coordination of policy implementation in the Cabinet Office.
Description : Although actions by the current government to detain opposition leaders cast a shadow on the state of political reform in Zambia, there continue to be key points of entry for USAID support which will bolster democratic transition. USAID will continue to support civil society NGOs in their work of deepening democratic culture and norms in Zambia. In addition, USAID will explore options for continuing mid-career training for independent journalists through the Zambia Institute for Mass Communication. A new activity will be initiated in support of the judiciary, which, along with civil society NGOs and parts of the private press, has emerged as a pillar of democratic values.
Host Country and Other Donors: The United Nations Development Program and World Bank are major donors and support the public service and judiciary reform programs. The British have had an ambitious program of support for governmental decentralization and fiscal responsibility and support the training of senior civil servants. Ranking behind these participants, the Nordic countries have joined with USAID in a focus on civic education, election monitoring, electoral reform, and constitutional reform. Donors meet monthly for coordination purposes. In response to USAID's program to support qualitative improvement and training of journalists, the GRZ privatized the state-owned media training facility in 1996 including significant assets in plant and equipment.
Beneficiaries : The ultimate beneficiaries are the citizenry of Zambia. The immediate beneficiaries are the NGOs, journalists, and members of the judicial system.
Principal Contractors, Grantees or Agencies : At the present there are no U.S. contractors involved in implementation of the program. The GRZ, local non-governmental organizations, the Zambia Institute of Mass Communications and local consultants and contractors are implementing activities.
Major Results Indicators: As previous activities under this objective have been completed and new ones are still in development, specific results indicators will be set after redesign activities are completed in FY 1998.
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