Title: Governance System in Zambia: An Examination of Laws, Taxation policies, Economic Distribution, and Conflict of Interests
Abstract
This article examines the governance system in Zambia, focusing on laws, taxation policies,
economic distribution, and the conflict of interest within the political government. The study aims
to provide insights into the complexities of governance in Zambia and offer recommendations for
improvement.
1. Introduction
The Republic of Zambia, located in Southern Africa, is a country endowed with abundant natural
resources, including copper, cobalt, and fertile land. Since gaining independence in 1964,
Zambia has faced significant development challenges, including widespread poverty, inequality,
and economic instability. The governance system plays a pivotal role in shaping the country's
economic and social trajectory. However, the interplay of laws, taxation policies, economic
distribution, and conflict of interests within the political government has hindered the effective
management of Zambia's resources.
The country's economic performance has been marked by periods of growth and decline,
largely influenced by fluctuations in global commodity prices and domestic policy decisions.
Despite efforts to diversify the economy, Zambia remains heavily reliant on the extractive sector,
which contributes significantly to government revenue. However, the benefits of economic
growth have not been equitably distributed, with poverty and inequality remaining major
concerns.
Effective governance is critical to addressing these challenges and promoting sustainable
development. The governance system in Zambia is shaped by a complex interplay of
institutions, laws, and policies. Understanding how these factors interact and impact governance
outcomes is essential for identifying areas for improvement and promoting more effective and
accountable governance.
This article examines the complexities of governance in Zambia, focusing on laws, taxation
policies, economic distribution, and conflict of interests within the political government. By
analyzing these aspects, the article aims to highlight the need for a more effective and
accountable system that promotes sustainable development and inclusive growth in Zambia.
2. Laws and Governance Structure
Zambia's governance structure is based on a multiparty democracy, with a president serving as
both head of state and government. The country has a range of laws governing various aspects
of governance, including the Constitution, Electoral Act, and Public Finance Management Act.
Constitution:
The Constitution of Zambia promulgated on 25 August 1973, abrogated the original 1964
constitution. The new constitution and the national elections that followed in December 1973
were the final steps in achieving what was called a “one-party participatory democracy”.
The 1973 constitution provided for a strong president and unicameral National Assembly.
National policy was formulated by the central committee of the United Independence Party
(UNIP), the sole legal party in Zambia. The cabinet executed the central committee’s policy.
In accordance with the intention to formalise UNIP supremacy in the new system, the
constitution stipulates that the sole candidate in the elections for the office of president was
selected to be president of UNIP by the party’s general conference. The second- ranking person
in the Zambian hierarchy was UNIP’s secretary general.
In December 1990, at the end of a tumultuous year that included riots in the capital and an
attempted coup, President Kaunda signed legislation ending UNIP’s monopoly on power. In
response to growing popular demand for multiparty democracy, and after lengthy, difficult
negotiations between the Kaunda government and the opposition groups, Zambia enacted a
new constitution in August 1991. The constitution enlarged the National Assembly from 136 to a
Maximum of 158 members, established an electoral commission, and allowed for more than one
presidential candidate who no longer had to be a member of UNIP. The constitution was
amended again in 1996 to set new limits on the presidency (including a retroactive two-term
limit, and a requirement that both parents of a candidate be Zambian born). The National
Assembly comprised 150 directly elected members, up to eight presidentially appointed
members, and a speaker.
Political History
The major figure in Zambian politics from 1964 to 1991 was Kenneth Kaunda, who led the fight
for independence and successfully bridged the rivalries among the country’s various regions
and ethnic groups. Kaunda tried to base government on his philosophy of “Humanism”, which
condemned human exploitation and stressed cooperation among people, but not at the expense
of the individual. During Kaunda’s presidency, members of all ethnic groups were represented
by ministers in government, in relation to their demographic size.
Zambia conducted three democratic elections (1962, 1964, and 1968) after achieving
independence. The elections were married by violence and irregularities, but all parties
respected the results
Before 1972, Zambia had three significant political parties: the United Independence Party
(UNIP), the African National Congress (ANC), and the United Progressive Party (UPP). The
ANC drew its strength from the Western and Southern provinces, while the UPP found some
support among Bemba speakers in the Copperbelt and Northern Provinces. Although not
strongly supported in all areas of the country, only UNIP had a nationwide following.
One-party state
In February 1972, Zambia became one party state, and all other political party were banned.
Kenneth Kaunda, the sole candidate, was elected president in the 1973 elections. Elections also
were held for the National Assembly. Only UNIP members were permitted to run, but these
seats were sharply contested. President Kaunda’s mandate was renewed in December 1978
and October 1983 in a “yes” or “no” vote on his candidacy. In the 1983 elections, more than 60%
of those registered participated and gave President Kaunda a 95.38% “yes" vote.
1991: Move to a multi- party state
Growing opposition to UNIP’s monopoly on power led to the rise in 1990 of the Movement for
Multiparty Democracy (MMD). The MMD assembled an increasingly impressive group of
important Zambians, including prominent UNIP defectors and labour leaders. During the year,
President Kaunda agreed to a referendum on the one-party state but, in the face of continued
opposition, dropped the referendum and signed a constitutional amendment making Zambia a
multi- party state. Zambia's first multi- party elections for Parliament and the presidency since
the 1960s were held on 31 October 1991. MMD candidate Frederick Chiluba resoundingly
carried the presidential elections over Kenneth Kaunda with 76% of the vote.
1991-2001: MMD and Frederick Chiluba
By the end of Chiluba’s first term as president (1996), the MMD’s commitment to political reform
had faded in the face of re-election demands. A number of prominent supporters found
opposing parties. Relying on the MMD's overwhelming majority in Parliament, President Chiluba
in May 1996 pushed through constitutional amendments that eliminated former President
Kaunda and other prominent opposition figures from the 1996 presidential elections.
President Chiluba was re-elected in November 1996 and the MMD won 131 seats out of 150
seats in the National Assembly. Kaunda’s UNIP party boycotted the polls to protest the
exclusion of its leader from contesting the elections. Despite the UNIP boycott elections took
place peacefully, and five presidential and more than 600 parliamentary candidates from 11
political parties participated.
2001-2008 Levy Patrick Mwanawasa
Presidential, parliamentary, and local government elections were held on 27 December 2001.
Eleven parties contested the elections. The elections encountered numerous administrative
challenges. Opposition parties alleged that serious irregularities occurred. Nevertheless, MMD
presidential candidate Levy Mwanawasa was declared the winner by a narrow margin, and he
was sworn into office on 2 January 2002. Three political parties petitioned the results, but the
High Court threw away the petition for lack of proper evidence. In the 2006 presidential elections
was hotly contested, with Mwanawasa being challenged by Michael Sata of the Patriotic Front
and Hakainde Hichilema of the United Party for National Development.
The presidency of Levy Mwanawasa until his death in office in mid-2008, was different from the
flamboyant expenditure and increasing apparent corruption of the later years of Frederick
Chiluba's term in office.
Following Mwanawasa’s death in August 2008, Zambian's vice president Rupiah Banda
succeeded him to the office of president, to be held as a temporary position until the emergency
elections on 30 October 2008. Banda won by a narrow margin over opposition leader Michael
Sata, to complete the remainder of Mwanawasa’s term.
2011 elections
President Rupiah Banda failed to be re-elected as President, losing to Michael Sata which
brought an end to a total of 20 years’ 29 years’ rule by three presidents from MMD.
Michael Sata was sworn in; he ruled for about three years and he died in office and Guy Scott
was the temporary president until 25 January 2015, when Edgar Chagwa Lungu was sworn in
as President of Zambia.
Lungu’s presidency has thus far been criticized for failing to improve the health depreciation of
the kwacha. There have also been unsubstantiated reports of Lungu’s alleged alcoholism,
stemming from a reported physical collapse early in his presidency. The economic challenges
faced Zambia, in particular the depreciating of the Wacha, was attributed to the global fall of
commodity prices. Zambia derives over 90% of its export from earnings from a single
commodity, copper, which had lost about 45© of its value on the international commodity
market.
In August 2016 Zambian general elections, President Lungu won re-election narrowly in the first
round of the election. The UPND rejected the results claiming fraud and voter buying.
2021-
In the 2021 general elections, characterized by 70% voter turnout, Hakainde Hichilema won
59% whilst his closest rival, incumbent president Lungu received 39% of the vote. On 16August
Edgar Lungu conceded defeat in a TV statement, sending a letter and congratulating president
elect Hakainde Hichilema and on 24 August Hakainde Hichilema was sworn in as the new
President of Zambia.
The Constitution of Zambia provides the framework for the country's governance structure and
outlines the powers and responsibilities of the president, parliament, and judiciary.
Electoral Act: The Electoral Act regulates the conduct of elections and referendums in Zambia,
ensuring that they are free, fair, and transparent.
-Public Finance Management Act:* The Public Finance Management Act provides for the
management of public finances, including budgeting, accounting, and auditing.
Zambia operates as a presidential representative democratic republic, with a multi- party
political system and a clear separation of powers among the executive, legislative, and judicial
branches.
Zambia was a democracy from independence to 1973. Zambia was a one-party state from 8
December 1973 until multi- party democracy was re-introduced on 4 December 1990 which led
to multi- party elections on 1 November 1991. Since then, Zambia has been a relatively stable
democracy having consistently peacefully transferred power between four political parties
(UNIP, MMD, PF and UPND) and has since 1991held nine presidential elections, of which seven
were general elections.
Zambia has undergone democratic backsliding since 2011. The Economist Intelligence Unit
(EIU) rated Zambia as a hybrid regime in 2020. The EIU has also consistently put Zambia
among the top most democratic African countries, ranking it 8th in Africa and 99th in the world
as of 2018 (167) states. This is also while Freedom House ranks Zambia as ‘Party Free’, with a
score of 52/100 (0 least free and 100 free) as of 2021.
Political Structure
Executive Branch:The President of Zambia serves as head of state and government, who is
Elected by popular vote, the President appoints a Cabinet consisting of ministers who assist in
policy formulation and implementation and exercises executive power. The President serves
terms of five years and are limited to two terms.
Prior to the 2016 Constitution Amendment the Zambian vice president was appointed by the
president, but the current 2016 amendment puts the vice president on the same electoral ticket
as the president.(Running mate) (Article 110 Sec 2,3 and 4) And in the event of a vacancy of an
elected president the vice president is the immediate successor to the president and remains
president until the next general elections (Article 106 Sec( 5a) and Sec 6. This is in contrast to
the 1996 constitution that required a by-election within 90 days of an elected president’s
vacancy with the vice president acting as an interim.
Legislature: The unicameral National Assembly is the country's legislative body, comprising
elected members, exercises legislative power and was formed following elections held on 12
August 2021, has a total of 167 members. 156 members are directly elected in a single
-member constituency using the simple majority or first past the post system. 8 seats are filled
through presidential appointments, and 3 seats are held by ex-officio members: the vice
president, the Speaker and one Deputy Speaker. All members serve five year terms.
Judiciary: The judiciary, comprising the Supreme Court and other courts, exercises judicial
power. The judiciary is responsible for interpreting laws and ensuring that they are consistent
with the Constitution.
Zambia's governance structure also includes various institutions that support accountability and
transparency, such as the Anti-Corruption Commission, the Office of the Auditor General, and
the Zambia Revenue Authority. These institutions play a critical role in promoting good
governance and combating corruption.
3. Taxation Policies
Zambia's taxation policies aim to promote economic growth, revenue mobilization, and fairness.
The country has a range of taxes, including income tax, value-added tax (VAT), and mineral
royalties.
Income Tax: Zambia's income tax system is governed by the Income Tax Act. The Act provides
for the taxation of income earned by individuals and companies, including employment income,
business income, and investment income. The income tax rates vary depending on the type of
income and the taxpayer's status. For example, individuals are subject to a progressive income
tax rate ranging from 0% to 37.5%, while companies are subject to a corporate income tax rate
of 35%.
Value-Added Tax (VAT): VAT is a consumption tax charged on the supply of goods and
services in Zambia. The VAT system is governed by the Value Added Tax Act. The standard
VAT rate is 16%, although certain goods and services are exempt or zero-rated.
Mineral Royalties: Zambia imposes mineral royalties on mining companies, which are
calculated as a percentage of the gross value of minerals extracted. The mineral royalty rates
vary depending on the type of mineral, ranging from 4% to 6% for copper and cobalt.
The Zambia Revenue Authority (ZRA) is responsible for administering taxes, including
registration, filing, and collection. The ZRA has implemented various initiatives to improve tax
compliance and revenue mobilization, including:
Taxpayer Education: The ZRA provides taxpayer education and outreach programs to
enhance compliance and understanding of tax obligations.
Electronic Filing: The ZRA has introduced electronic filing systems to simplify tax compliance
and reduce administrative burdens.
Audit and Enforcement: The ZRA conducts audits and enforcement activities to detect and
prevent tax evasion.
Zambia's tax policies also include incentives aimed at promoting investment and economic
growth:
Tax Incentives: The government offers tax incentives to attract investment, including tax
holidays and reduced tax rates for certain industries, such as manufacturing and tourism.
Special Economic Zones: The government has established special economic zones (SEZs)
offering tax incentives and other benefits to companies operating within the zones.
The government has also implemented tax reforms aimed at simplifying the tax system,
reducing tax evasion, and increasing revenue:
Tax Reforms: Recent tax reforms have focused on broadening the tax base, improving tax
administration, and enhancing compliance.
International Agreements: Zambia has entered into double taxation agreements and other
international tax agreements to promote cooperation and avoid double taxation.
4. Economic Distribution
Zambia's economic distribution is characterized by significant inequalities, with a small elite
controlling a large share of the country's wealth. The country's economic performance has been
marked by periods of growth and decline, largely influenced by fluctuations in global commodity
prices and domestic policy decisions.
Income Inequality: Zambia has a high level of income inequality, with a Gini coefficient of 0.57
(World Bank, 2020). The richest 10% of the population hold around 40% of the country's
income, while the poorest 10% hold less than 2%. This inequality is reflected in the urban-rural
divide, with urban areas tend to have higher incomes and better access to services.
Poverty: Poverty remains a significant challenge in Zambia, with around 54% of the population
living below the poverty line (World Bank, 2020). Poverty is more prevalent in rural areas, where
access to basic services and economic opportunities is limited. The poverty rate is highest in the
Eastern and Luapula provinces.
Employment: The formal sector employs around 10% of the labor force, with the majority of
workers engaged in informal activities, such as small-scale farming and petty trading. The
informal sector is characterized by low productivity and limited access to finance and markets.
The government has implemented various policies aimed at promoting economic inclusivity and
reducing poverty:
National Development Plan: The Seventh National Development Plan (2017-2021) aims to
promote economic diversification, job creation, and poverty reduction. The plan identifies key
sectors for development, including agriculture, tourism, and manufacturing.
Citizen Economic Empowerment Commission:The Citizen Economic Empowerment
Commission was established to promote economic empowerment of Zambian citizens,
particularly in the areas of business ownership and employment. The commission provides
training, finance, and other support to Zambian businesses.
Social Protection Programs: The government has implemented social protection programs,
such as the Social Cash Transfer program, aimed at supporting vulnerable households. The
program provides cash transfers to households with children, elderly, or disabled members.
Agricultural Support: The government has implemented programs aimed at supporting
small-scale farmers, including the Farmer Input Support Programme and the Food Reserve
Agency.
Despite these efforts, challenges remain, including:
Limited Economic Diversification: Zambia's economy remains heavily reliant on copper
mining, making it vulnerable to fluctuations in global commodity prices.
Weak Institutional Capacity: Government institutions face capacity constraints, limiting their
ability to implement policies and programs effectively.
Corruption: Corruption remains a significant challenge in Zambia, undermining efforts to
promote economic inclusivity and reduce poverty.
Here's an expanded version of the "Conflict of Interests" section:
5. Conflict of Interests
The conflict of interests within the political government is a significant challenge in Zambia. The
intertwining of political and economic power has led to corruption, nepotism, and cronyism,
undermining the country's development.
Political Patronage: Political patronage is a pervasive feature of Zambian politics, with
government positions and resources often distributed based on loyalty and affiliation rather than
merit. This has created a culture of dependency and loyalty, where individuals prioritize personal
interests over national interests.
Corruption: Corruption is a major challenge in Zambia, with Transparency International ranking
the country 137th out of 180 countries in the 2020 Corruption Perceptions Index. Corruption
occurs at all levels, from petty bribery to grand corruption involving high-ranking officials. The
lack of transparency and accountability has led to the misappropriation of public funds and
resources.
State Capture: State capture, where powerful individuals or groups influence government
decisions for personal gain, is a significant concern in Zambia. This has led to the awarding of
lucrative contracts and concessions to well-connected individuals and companies, often at the
expense of the state and citizens.
The consequences of conflict of interests are far-reaching:
Undermined Accountability: Conflict of interests undermines accountability, as those in power
use their positions to shield themselves and their allies from scrutiny. This has led to a lack of
transparency and accountability in government decision-making.
Inequitable Distribution: Conflict of interests perpetuates inequality, as those with connections
and influence benefit from government resources and opportunities. This has exacerbated
poverty and inequality in Zambia.
Eroded Trust: Conflict of interests erodes trust in government and institutions, undermining
social cohesion and stability. Citizens are increasingly disillusioned with the political system,
leading to apathy and disengagement.
Efforts to address conflict of interests have been made:
Anti-Corruption Commission: The Anti-Corruption Commission (ACC) is mandated to
investigate and prosecute corruption cases. However, the ACC faces challenges, including
limited capacity and resources.
Public Procurement: The government has introduced public procurement reforms aimed at
increasing transparency and accountability in government contracting.
Whistleblower Protection: The government has enacted whistleblower protection laws to
encourage reporting of corruption and other forms of wrongdoing.
6. Insights and Recommendations
This article has examined the complexities of governance in Zambia, highlighting challenges in
laws, taxation policies, economic distribution, and conflict of interests. Key insights include:
- Zambia's governance structure is characterized by a strong executive and weak accountability
mechanisms.
- Taxation policies are often influenced by political considerations, undermining revenue
mobilization.
- Economic distribution is highly unequal, with poverty and inequality persisting.
- Conflict of interests is a significant challenge, perpetuating corruption and undermining trust in
government.
7. Recommendations:
Strengthen Institutions: Strengthen institutions, such as parliament and the judiciary, to
promote accountability and transparency.
Improve Tax Administration: Improve tax administration and enforcement to increase revenue
mobilization.
Promote Economic Inclusivity: Implement policies promoting economic inclusivity, such as
supporting small-scale farmers and entrepreneurs.
Address Conflict of Interests: Strengthen anti-corruption mechanisms and promote
transparency in government decision-making.
Specific actions:
- Establish an independent anti-corruption agency with prosecutorial powers.
- Introduce asset declaration requirements for public officials.
- Increase transparency in government contracting and procurement.
- Support civil society and media to promote accountability.
Implementing these recommendations can help promote good governance, reduce poverty and
inequality, and support sustainable development in Zambia.
7. Conclusion
Effective governance is crucial for Zambia's development, but challenges persist in laws,
taxation, economic distribution, and conflict of interests. Addressing these challenges requires
strengthening institutions, promoting transparency, and accountability.
By implementing recommendations outlined, Zambia can promote good governance, reduce
poverty and inequality, and support sustainable development. This requires commitment from
government, civil society, and citizens to work together towards a more accountable and
inclusive system.
Zambia's future depends on building a governance system serving all citizens, promoting
prosperity and stability.
Reference
Bratton, Michael (1992). “Zambia starts over”? . Journal of Democracy.3.(2): (81-94
Hnfelaar, Marja; Rakner, Lise; de Wakke, Nicolas (2023), “Zambia”, Democracy Backsliding in
Africa?, Oxford University press, pp. 187-211.