News

New country reports from Maplecroft highlight the risks and opportunities in Angola and Zambia

24/02/2011

Angola

The Labour Standards Report on Angola offers in-depth analysis for all major labour issues, country scores, maps, key recent events and stakeholder viewpoints, providing responsible companies with the resources they need to better manage their risk.

Forced labour and child labour remain primary risks for companies operating in Angola. Forced labour mostly occurs in the informal sector and is prevalent in agriculture, construction, domestic servitude and artisanal diamond mines. Workers are not adequately protected from the risk of forced labour due to the high rates of informal employment in the country and a lack of government enforcement of labour regulations.

Child labour is prevalent in Angola. Low rates of education and poverty are among the main factors pushing Angolan children to work. Angola lost 1,500 schools during the civil war, according to UNICEF estimates and when education is less accessible, the risk for child labour increases. The fact that many Angolans are forced to take second jobs just to make ends meet means the risk of children becoming economically active to support their families is much higher. Child labour is most common in the informal sector. A number of shortcomings in the legal framework and gaps in accountability make enforcement of child labour laws difficult. Companies with interests in the country should ensure they implement stringent monitoring of operations and supply chains to minimise the risk of reputational and associated risks.

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Zambia

Maplecroft’s in-depth Country Risk Report on Zambia offers high-level analysis and maps of corruption, political violence, the regulatory and business environment, human rights, climate change and the environment.

The 2011 presidential and parliamentary elections represent a potential risk of violence and instability. Although Zambia has a long history of relative stability, by-elections in recent years have been affected by some violence.  For instance, during an April 2010 by-election campaign, rival party supporters were involved in violent clashes which were reportedly the worst since independence in 1964. Political violence during the election campaign could impact business operations in the run-up to and during the elections. There is also a risk that the violence could entrench political differences and lead to some party supporters disputing the election results, as has happened in other sub-Saharan states in recent months.

Approximately 80% of Zambia’s workers are in the informal economy and the enforcement of laws protecting workers’ rights, occupational health and safety, and other core labour rights has proved to be challenging for the Ministry of Labour and Social Security (MLSS) and other enforcement agencies. Weak enforcement of labour laws across all sectors puts companies and investors at risk of potential complicity in violations committed by their local business partners and along the local supply chain. Given that sub-contracting is widely practiced in Zambia, it would be prudent for companies to intensify scrutiny over their supply chain to ensure that labour violations such as child labour and forced labour are not taking place.

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In-depth reports contain detailed analysis, country scores, maps, key recent events and stakeholder viewpoints. They are available for all countries, sectors and issues. Please contact info@maplecroft.com for more information.