agreements were reached on these issues, subsequent overspending on civil service wages delayed Zambia's final HIPC debt forgiveness from late 2003 to early 2005, at the earliest. In an effort to reach HIPC completion in 2004, the government drafted an austerity budget for 2004, freezing civil service salaries and increasing a number of taxes. The tax hike and public sector wage freeze prohibited salary increases and new hires. This sparked a nationwide strike in February 2004.
The Zambian economy has historically been based on the copper mining industry. Output of copper had fallen, however, to a low of 228,000 metric tons in 1998, after a 30 year decline in output due to lack of investment, low copper prices, and uncertainty over privatisation. In 2002, following privatisation of the industry, copper production rebounded to 337,000 metric tons. Improvements in the world copper market have magnified the effect of this volume increase on revenues and foreign exchange earnings.
The Zambian government is pursuing an economic diversification program to reduce the economy's reliance on the copper industry. This initiative seeks to exploit other components of Zambia's rich resource base by promoting agriculture, tourism, gemstone mining, and hydro-power.
Agriculture plays a very important part in Zambia's economy providing many more jobs than the mining industry. Private local company Zambeef Products Ltd. is the leading agri-business in Zambia with over 4.000 employees, producing row crops (5.000 ha irrigated, 1.500 ha non-irrigated), cattle (Zambeef), pork (Master Pork), chicken (ZamChick), eggs (ZamChick Egg), dairy products, leather, fish, feedstock (Novatek) and edible oil (Zamanita). Zambeef operates eight abattoirs, four farms and numerous retail stores (also in cooperation with Shoprite) and a fast-food chain (ZamChick Inn) throughout the country.
In 2003, exports of nonmetals increased by 25% and accounted for 38% of all
