THE latest Economist Intelligence Unit (EIU) report says the reinstatement of the "Abuse of office" clause by the Patriotic Front (PF) Government will give some impetus to the fight against corruption.
It states that in his first term, President Michael Sata was likely to be dominated by three issues namely, tackling corruption, redistributing wealth and cutting unemployment.
"The Government is expected to strike a balance between redistributing wealth and sustaining investment and growth, although there is some risk that it will introduce policies that are poorly designed or counterproductive," the report read.
PF's parliamentary representation was set to grow slightly, as the party has had some success in its appeal against the election results in constituencies that were won by the MMD.
The report says Mr Sata, formerly a fervent critic of Chinese investors, had now softened his position substantially, an implicit recognition of China's importance as a source of investment.
"Relations with Western donors could be undermined if abuses of office occurred under the new Government. Zambia is expected to remain largely on good terms with other countries in the region," the report said.
It states that on the economic front, Zambia had continued to make progress towards its debut Eurobond issue, scheduled for July.
The investor interest in the bond would be supported by a robust economic outlook and healthy macroeconomic fundamentals.
On infrastructure, the report says it would improve gradually as investments were made in power supply, roads and power generation was expected to grow by 50 per cent in 2012-16.
The report says agriculture would remain high on the Government's agenda.