Zambia's economy has witnessed strong growth in recent years, with real GDP figures averaging around 6% in the years preceding the global financial crisis. Nevertheless, despite this performance, poverty, red tape and corruption remain among the most pressing issues in the country. Previously, anti-corruption efforts under former President Banda’s administration produced mixed results, as agreed by international observers. Incumbent President Sata took office on 23 September 2011 and he immediately vowed to stamp out rampant corruption in the country. It is still too early to effectively evaluate President Sata’s anti-corruption commitment and if it will produce a positive result in the fight against corruption.

Positive developments in relation to corruption and investment:

• According to international perception, the government of former president Mwanawasa took a major step in putting the fight against corruption on the political agenda in Zambia.
• The Zambian government has undertaken significant economic reforms to produce a generally positive investment climate, including important steps to support transparent policy-making and to encourage competition.
• The ratification of international anti-corruption conventions and the development of integrity commissions and anti-corruption reforms in several sectors illustrate that the Zambian government is moving in the right direction.
• In April 2010, the Public Interest Disclosure Act (Whistleblowers Protection Act) was enacted in parliament aiming to safeguard whistleblowers and, to entitle them to anonymity, compensation, relocation, and employment reinstatement.

Risks of corruption:

• Corruption committed by civil servants and, in particular, high-ranking politicians has not been adequately investigated and prosecuted in Zambia.
• Zambia's business environment still suffers from unnecessarily long and complicated administrative procedures, which has led many companies, particularly small and medium sized companies, to operate in the informal sector.
• Land administration is considered by companies as a highly corruption-prone area. Some companies have questioned the government's procedures in awarding game management land area.
• An Anti-Corruption Commission (ACC) Act of 2010 replaced the ACC Act of 1996 and repealed the abuse of office clause under the old Act. The amendment stirred criticism from civil society and international observers that such changes weakened anti-corruption efforts because it eliminated a legal statute used to convict some officials of corruption.