ABSTRACT
The Zambian government quickly came to realise the weaknesses of the 1969 Take-over arrangements, and in August 1973 announced their amendment. The government was anxious to amend exchange control provisions so it could capture part of the substantial dividends then flowing to foreign investors. During the mid-1960s, the Zambian government was anxious to establish a plant which would supply copper wire and cable and semi-manufactured products to the domestic and East African markets. Economic constraints impose major limitations on Zambia’s capacity to develop forward and backward linkages. Foreign equity capital played an indispensable role in the initial development of Zambia’s copper mines, as investment on the scale required could not have been generated internally. The Zambian government has cited the slow pace of Zambianisation as one reason for seeking increased control over the copper industry. The mining industry has had a major impact on consumption patterns in Zambia.
