The nation of Zambia is currently in an economic crisis. The country had experienced outstanding financial growth that began as early as 2000. During the late 90s certain Chinese companies began to invest heavily in Zambia. These organizations saw the potential for great profits in the nation’s copper minds. About 160 Chinese companies had tied themselves into Zambia’s economy. As of 2016 many are now pulling out.
The problem that is wreaking havoc on Zambia’s weakening economy has to do with China’s troubles. The nation of China is on a financial slope that is going downward. Many business and political insiders are stating that China is going to start another global recession later in 2016. They believe this because the nation is having trouble keeping their economy in line.
Fewer countries are demanding less goods from China and the country’s currency is over valued. The robust manufacturing districts in China are not as powerful as they once were in the recent past. A lot of people are losing jobs and trade is slowing down. China has the world’s second best economy outside of the US. Many countries from across the globe depend on this nation as a trade partner. As a matter of fact, China is the world’s number one trader of goods. Now that China is experiencing problems, so are other states such as Zambia.
The nation of Zambia relied on China for 70% of its exports through copper. Now that China no longer has a need for this material; Zambia is hurting bad. Miners are at the forefront of this economic downturn since they were the primary workers responsible for Zambia’s wealth since the early 2000s. In 2005 many Zambia workers were living comfortably. By 2010 a great deal of them were considered some of the wealthiest people within their country.
As a matter of fact, Zambi in 2010 was the place to be. In the big cities such as the capital Lusaka and Kitwe, there were malls, private schools and infrastructure being constructed in different communities. Thousands of jobs came into existence as the result of the copper trade with China. Zambian’s everywhere were prospering.
They were buying up western styled televisions, refrigerators and autos to show off their wealth. Miners and other highly paid workers were sending their children to universities to get a good education. Life in Zambia in 2010 was no different than how people lived within a first world western country.
Unfortunately, many people though this trend would last. Zambia’s current economic situation in 2016 is dire. The nation does not know how it is going to manage its debt since its greatest outside investor (China) is shutting down many of the mines and heading back home. Zambia’s leaders are optimistic about finding a practical resolution to this problem. People can get a better understanding of Zambia’s economic crises by reading the article Mining Collapse Cripples Africa’s Dreams of Prosperity.
Madison Street Capital is an investment company that makes ventures into foreign lands. They know how critical is to another nation’s economy to maintain sound investments that will last for many years. This organization works hard with venture capitalists to ensure that they are creating the best outcomes for their portfolio. Madison Street Capital knows it is not good business to see a foreign investment go into demise and they work hard to keep this situation from happening.
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