Zambia & SADC – Economic Freedom Index 2025
Opinion and Observations By Ceaser Siwale
The Economic Freedom Index (EFI) is an annual ranking published by The Heritage Foundation that assesses the economic freedom of countries worldwide. The index measures the degree to which individuals and businesses can freely operate without undue restraint. Countries are scored across 12 indicators grouped into four broad pillars: Rule of Law, Government Size, Regulatory Efficiency, and Open Markets.
Zambia’s 2025 EFI Score and Key Indicators:
- Overall Score: 50.9 (Mostly Unfree)
- Global Rank: 142nd out of 184 countries
- Regional Rank (Sub-Saharan Africa): 33rd out of 47 countries
| Pillar | Score |
| Property Rights | 45.8 |
| Judicial Effectiveness | 45.3 |
| Government Integrity | 36.7 |
| Tax Burden | 74.7 |
| Government Spending | 75.0 |
| Fiscal Health | 0.0 |
| Business Freedom | 45.9 |
| Labor Freedom | 48.7 |
| Monetary Freedom | 68.2 |
| Trade Freedom | 65.8 |
| Investment Freedom | 55.0 |
| Financial Freedom | 50.0 |
Zambia’s strengths lie in tax burden and government spending, while severe weaknesses include fiscal health, property rights, and government integrity. A fiscal health score of 0.0 reflects Zambia’s unsustainable public debt and fiscal imbalance.
SADC Comparative Performance
The chart below shows the 2025 Economic Freedom Index scores of all SADC members. Mauritius leads the region, while Zimbabwe remains the lowest performer.
| Country | EFI Score | Global Rank | Category |
| Mauritius | 75.0 | 15 | Mostly Free |
| Botswana | 69.9 | 31 | Moderately Free |
| Seychelles | 66.4 | 52 | Moderately Free |
| Tanzania | 59.3 | 92 | Mostly Unfree |
| Namibia | 58.7 | 94 | Mostly Unfree |
| South Africa | 57.3 | 103 | Mostly Unfree |
| Madagascar | 57.0 | 104 | Mostly Unfree |
| Eswatini | 56.4 | 107 | Mostly Unfree |
| Angola | 55.0 | 118 | Mostly Unfree |
| Lesotho | 54.1 | 125 | Mostly Unfree |
| Comoros | 51.4 | 138 | Mostly Unfree |
| Zambia | 50.9 | 142 | Mostly Unfree |
| Malawi | 50.9 | 146 | Mostly Unfree |
| Mozambique | 50.7 | 147 | Mostly Unfree |
| DR Congo (DRC) | 47.3 | 161 | Repressed |
| Zimbabwe | 35.1 | 173 | Repressed |
Zambia’s score is well below the SADC average of 55.4. While Mauritius and Botswana are attractive for investment, Zambia lags due to institutional inefficiencies and fiscal instability.
Regional Comparison: SADC vs. ECOWAS vs. COMESA
The chart below illustrates the average EFI scores of the three African regional blocs. Both SADC and ECOWAS are in the “Mostly Unfree” category, while COMESA falls under “Repressed”.
Recommendations for Zambia
- Strengthen Rule of Law: Improve property rights and judicial effectiveness.
- Regulatory Reforms: Simplify business regulations to promote investment.
- Improve Fiscal Health: Address public debt issues and enhance fiscal stability.
- Combat Corruption: Enhance transparency and reduce bureaucratic inefficiencies.
Zambia’s low economic freedom score highlights the urgent need for structural and institutional reforms. Improving economic freedom is essential for attracting investment and enhancing growth prospects, particularly within the SADC region.
