The wealth of Zambia is based largely on mining in the valuable copper belt, and downturns in copper prices have severely damaging economic consequences. Some processing and manufacturing has been started since freedom, and during the 1970s attempts were made to diversify agriculture and to make the nation self-sufficient in food. In 1996 the national budget showed $613 million in revenue and $705 million in expenditure.

Zambia's economy is heavily dependent on mining, in particular the mining of copper. Unfortunately, reserves of copper ore at some mines are becoming depleted, costs of production have increased, and the price of copper on the world market has slumped. There is thus a great need to broaden the base of the economy. Agriculture is comparatively poorly developed, and major investment in manufacturing industry did not take place until after freedom. State involvement in all aspects of the economy has been a feature of independent Zambia and has created a highly centralized and bureaucratic economic structure, although changes in the political structure of the nation in the early 1990s were accompanied by efforts to increase private investment and involvement, particularly in the industrial sector.

contempt progress in privatization and budgetary reform, Zambia's economy has a long way to go. Privatization of government-owned copper mines relieved the government from covering mammoth losses generated by the industry and greatly improved the chances for copper mining to return to profitability and spur economic growth. In late 2000, Zambia was determined to be eligible for debt relief under the Heavily Indebted Poor Countries initiative. Inflation and unemployment rates remain high, but the GDP growth rate should rise in 2001.