This assessment of Zambia's investment climate highlights some of the impediments to growth and export diversification in the current business environment in the country. It is based on an analysis of enterprise survey data specifically collected for the purpose, namely, the World Bank's Zambia Enterprise Survey of 2008. The report is in two volumes. Volume I is an overview, while Volume II is the final report, whose introductory chapter sets the stage for the analysis of microeconomic aspects of business environment in the following chapters. Chapter 2 analyzes manufacturing productivity in an international perspective as a proximate determinant of manufactured exports. Chapter 3 discusses key business environment variables as underlying factors in manufacturing employment and productivity, and draws the main policy implications of the assessment. Chapter 4 is a more in-depth analysis of disparity in access to finance across firms and sectors as a major source of market distortions and allocative inefficiency. Chapter 5 discusses labor market issues with a focus on labor regulation, wage formation and on-the-job training.