The Perceived Successes and Failures of the Privatization Process in Zambia’s Third Republic

Abstract

Different views have been expressed on privatization implementation in Zambia. However, there is no consensus on this subject. Some scholars have indicated that Zambia has the most successful story on privatization in Sub-Saharan Africa (World Bank, 1996; Buchs, 2003). Still, others have rejected what one would state as the success of the programme in Zambia. This paper aimed to determine some of the successes and failures of the privatization process in Zambia, spanning 1991 to date. The research is based on a secondary literature review and a desk-based study. A number of data sources have been reviewed to show the successes and failures of privatization in Zambia and they include books, research articles, Parliament Acts, newspapers, and online databases. Among the perceived success stories associated with the privatization process in Zambia include an increased flow of investments into the country, employment creation and promotion of competition among the different players in the industry. The study established some failures that came along with the privatization process, which include lack of transparency, adequacy of the arrangements for ensuring that ownership of the advertised companies is broadly distributed to Zambian citizens and failure to generate the desired economic growth and reduce poverty, in fact, the privatization process led to an increase in poverty levels. It is also associated with mass redundancies, unpaid pensions, unfair competition, poor tax system and abandonment of public services. The study further established that privatization led to increased social inequality, loss of cultural heritage, and loss of control and sovereignty. It also has an Impact on Indigenous Communities.  Despite different views being advocated by neo-classical economic theorists, liberal theorists and radical scholars, this study concludes that privatization in Zambia seems to have benefited only a few who have been its proponents and that its impact on the environment and social well-being of Zambians has been adverse.