This report analyzes equity andfinancial protection in the health sector of Zambia. Inparticular, it examines inequalities in health outcomes,health behavior and health care utilization; benefitincidence analysis; financial protection; and theprogressivity of health care financing. Data are drawn fromthe 2007 Zambia demographic and health survey, the 2006Zambia living conditions monitoring survey, the 2003 Zambiaworld health survey and the 2003 Zambia national healthaccounts. All analyses are conducted using original surveydata and employ the health modules of the ADePT software.Overall, health care financing in Zambia in 2006 was fairlyprogressive, i.e. the better-off spent a larger fraction oftheir consumption on health care than the poor. Thefinancing sources that contribute to the overallprogressivity of health care finance are general taxation,which finances 42 per cent of domestic spending on health,and contributions made by private employers, which finance 9per cent of spending. An additional contribution to overallprogressivity is made through pre-payment mechanisms, butthis remains fairly limited given that they only represent 1per cent of total health finance. Out-of-pocket healthpayments, which account for 47 per cent of total healthfinancing, appear to be proportional to income, with onlyslight and not statistically significant evidence of progressivity.