“The China-Zambia economic relationship has been identified to benefit traders and households who benefit from cheaper Chinese products. Chinese exporters will benefit from increased African market in Zambia. The Zambian government is expected to lose and benefit at the same time. The loss is on account of foregone income tax revenue due the loss of employment opportunities at both the firm and household levels while the gain is in the form of increased revenues from trade taxes. The net effect is expected to be a gain in revenues by the authorities.
Chinese contractors and investors are major beneficiaries by virtue of the bilateral agreements signed between China and Zambia, their ability of being lower cost bidders and limitless capacity to undertake all kinds of contract. GRZ and local labour are also expected to benefit due to setting up the infrastructure at less cost and employment opportunities created, respectively.”
