Zambia's economic story has always run through copper, and it still does — but 2025 and 2026 mark a genuine inflection point, with the kwacha strengthening for the first time in years, debt restructuring largely behind the country, and the government explicitly pushing manufacturing, energy and agro-processing as the next growth legs. Anyone weighing business opportunities in Southern Africa should be looking closely at this window.
A manufacturing business entering Zambia today can access a 10-year zero-tax holiday inside a Multi-Facility Economic Zone, a currency that gained nearly a third of its value against major currencies over roughly 15 months, and a government targeting 3 million tonnes of annual copper output by 2031 — a target that itself creates enormous downstream demand for local suppliers. This briefing covers the real numbers, the incentives, and where to look first.
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Economic size: GDP growth came in at 3.8% for both 2024 and 2025 (revised from an initial 5.2% 2025 estimate), with the African Development Bank projecting 5.0% for 2026 and 6.3% for 2027
Copper dominance: copper accounts for over 70% of export earnings, with 2025 output in the 700,000–800,000 tonne range and a national target of 3 million tonnes annually by 2031
Currency strength: the kwacha appreciated 18.2% in 2025 and a further 12.9% through March 2026, allowing the central bank to cut its policy rate for the first time in five years
Debt trajectory: public debt is projected to fall from just over 100% of GDP in 2025 to 73% by 2028 following the 2024 Eurobond restructuring agreement
Major industrial hubs: Lusaka South Multi-Facility Economic Zone, the Zambia-China Economic & Trade Cooperation Zone (Lusaka East), and Chambishi MFEZ on the Copperbelt
Minimum entry investment: US$500,000 for full ZDA fiscal incentives in a priority sector or MFEZ; reduced to US$50,000 for Zambian-influenced (5–25% local shareholding) and green/biodiversity-linked projects
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Reasons to Start a Business in Zambia Right Now
Zambia's debt restructuring, completed via the G20 Common Framework with official bilateral creditors and a 2024 Eurobond agreement, has materially de-risked the macro picture: rates on restructured official debt were cut to 1–2.5% with a three-year grace period, and public debt is projected to fall from just over 100% of GDP in 2025 to 73% by 2028. That stability is showing up directly in the currency, which appreciated 18.2% in 2025 alone.
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The Zambia Development Agency's 10-year, 0% corporate tax holiday for Multi-Facility Economic Zone investors — confirmed again in March 2026 — applies on top of a currency that gained nearly 30% cumulatively against major currencies between 2025 and March 2026, a rare combination of fiscal incentive and currency tailwind for new entrants (Zambia Development Agency / African Development Bank).
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Investment opportunities are further reinforced by falling inflation (down to 7.1% by March 2026, within the central bank's target range) and the first policy rate cut in five years — conditions that directly improve the cost and availability of local financing for new ventures.
Market Demand and Statistics Driving the Sector
Copper remains the dominant driver: Zambia holds an estimated 21 million tonnes of reserves and among the lowest production costs globally at roughly US$4,500/tonne, positioning the country to benefit directly from global energy-transition demand for copper in electric vehicles, renewable energy and data centre infrastructure. Reaching the 3-million-tonne target would generate an estimated US$8 billion in annual revenue — a scale of activity that ripples through logistics, equipment supply, cable and cathode processing, and construction.
Beyond mining, agriculture and manufacturing posted the strongest growth contributions in early 2026, with Q1 2026 GDP growth hitting 7.7% on the back of double-digit expansions in agriculture, ICT and entertainment. Business ideas tied to construction materials, steel, agri-food processing and electrical components are explicitly named as current focus areas for new economic zone and industrial park investment.
Government Schemes, Incentives and Support Facilities
Zambia's incentive framework runs through the Zambia Development Agency (ZDA), reorganised under the ZDA Act No. 17 of 2022 and the Investment, Trade and Business Development Act No. 18 of 2022.
National-level support
- Multi-Facility Economic Zone (MFEZ) incentive: 0% corporate tax for 10 years from commencement of works, 0% tax on dividends and export profits for the same 10-year period, then only 50% of profits taxed for years 11–13 and 75% for years 14–15 — for export-oriented manufacturing investments in an MFEZ or Industrial Park.
- Priority Sector Tax Incentive: 0% import duty on capital equipment and machinery for five years, plus 50–100% accelerated depreciation, for investment in manufacturing, construction and infrastructure, tourism, and energy/water development.
- Reduced investment thresholds: the standard US$500,000 threshold for full fiscal incentives drops to US$250,000 for non-fiscal incentives (investment guarantees, immigration facilitation), and to US$50,000 for Zambian-influenced projects (5–25% local shareholding) and green/biodiversity-linked enterprises following a 2023 amendment.
- Customs duty exemptions: a five-year customs duty rebate on machinery and equipment for MFEZ/Industrial Park development, plus sector-specific rebates for motor vehicle assembly and roofing sheet/tile manufacturing inputs.
- Non-fiscal support: investment guarantees against state nationalisation, free facilitation of immigration permits, secondary licences, land acquisition and utility connections, plus ongoing aftercare services through ZDA.
Practical considerations
Zambia currently operates seven functional Special Economic Zones (five MFEZs and two Industrial Parks), but independent reviews have flagged that the one-stop-shop registration process is not yet fully automated, with company setup sometimes taking 3–6 months across multiple agencies — worth factoring into any project timeline.
Growth Trajectory and Industry Outlook
Real GDP growth is projected to accelerate from 3.8% in 2025 to 5.0% in 2026 and 6.3% in 2027 according to the African Development Bank, driven by mining recovery, agriculture and an easing energy crisis. The World Bank's own framing is instructive: Zambia has shown genuine macroeconomic resilience through a sovereign default, historic drought and a succession of shocks, and 2026 marks the point where electricity supply — long the binding constraint — is finally being addressed at scale through Kafue Gorge hydroelectric expansion and a gas partnership with Mozambique.
Manufacturing's own growth contribution turned positive in the most recent reporting period, reversing a longer stretch of underperformance, while the current account is projected to move into a modest surplus (0.8% of GDP in 2026, rising to 3.1% in 2027) on higher copper export earnings.
Year-Wise Market Data: Zambia's GDP Growth and Copper Output
Figures below combine actual government/AfDB data with the national 2031 copper target.
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Year
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Real GDP Growth
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Copper Output (tonnes)
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Source / Basis
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2024
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3.8%
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~750,000–800,000
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Actual (AfDB)
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2025
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3.8% (revised from initial 5.2% estimate)
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700,000–800,000
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Actual (AfDB, revised March 2026)
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2026F
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5.0%
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Progressing toward 1 million target
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Forecast (AfDB)
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2027F
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6.3%
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Continued expansion
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Forecast (AfDB)
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2031F
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n/a
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3,000,000 (official target)
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Official government target
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Market Forecast to 2031 and Beyond
The government's 3-million-tonne copper target for 2031 is the single clearest quantified forecast in Zambia's economic planning, and it implies roughly quadrupling current output within five years — an estimated US$8 billion in annual copper revenue alone if achieved. That target depends on three things: stable electricity (the Kafue Gorge and Mozambique gas initiatives are designed to address this), continued attractive taxation (the ZDA's incentive stack is explicitly framed as supporting the target), and sustained logistics investment, including new rail corridors linking Zambia to the ports of Dar es Salaam (TAZARA, east) and Lobito in Angola (west, via the DRC).
Manufacturing's parallel growth path is less precisely quantified but directly linked: local processing of copper into cables and refined cathodes is explicitly named as a national priority, representing a substantial value-addition opportunity for manufacturers positioned near Copperbelt production.
Import–Export Opportunity Analysis
Zambia's exports reached roughly 333.4 billion kwacha (US$13.3 billion) in the most recent full year, led overwhelmingly by copper alongside nickel, zinc, cobalt, gold, gemstones, fertiliser, tobacco and agricultural products. Canada, Switzerland, Singapore, the DR Congo and China are the leading export destinations. Imports of a similar scale are dominated by machinery, transport equipment, petroleum products and electricity — with South Africa and China as the top two sources.
The clearest export business opportunities sit in copper value-addition (cables, refined cathodes) rather than raw ore export, plus continued growth in agricultural exports (Zambia already ships raw sugar, soyabean meal, cotton and flowers) and the emerging energy transition minerals category, which the World Bank has specifically flagged as an area Zambia should scale through better mineral resource mapping, reliable clean power supply and workforce upskilling.
Major Companies Active in Zambia
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Company
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Specialisation / Scale
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First Quantum Minerals (Kansanshi, Sentinel mines)
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Copper mining and processing, major foreign investor
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Konkola Copper Mines (KCM)
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Copper mining, Copperbelt Province
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Mopani Copper Mines
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Copper mining and smelting, Copperbelt
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Zambia Sugar Plc (Illovo Group)
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Sugar production and processing, one of Africa's larger sugar operations
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Zambeef Products
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Integrated agribusiness — livestock, food processing and retail
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Lafarge Zambia
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Cement manufacturing for domestic construction demand
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ZESCO / Kafue Gorge Lower Power Station operators
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Hydroelectric power generation and grid infrastructure
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Chambishi Multi-Facility Economic Zone tenants
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Copper-linked manufacturing and processing enterprises
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Major Cities and Industrial Areas in Zambia
Zambia's industrial geography is split between the capital region and the copper-rich Copperbelt Province, with a growing tourism centre in the south.
- Lusaka: the capital and largest city, home to the Lusaka South Multi-Facility Economic Zone and the Zambia-China Economic and Trade Cooperation Zone (Lusaka East).
- Ndola: the industrial capital of the Copperbelt, historically strong in copper processing, manufacturing and rail logistics.
- Kitwe: Zambia's second-largest city, at the heart of Copperbelt mining, home to Mopani Copper Mines' operations.
- Chingola and Chililabombwe: Copperbelt mining towns linked to Konkola Copper Mines' operations.
- Solwezi: the centre of Zambia's newer North-Western copper belt, home to the Kansanshi and Lumwana mines.
- Livingstone: Zambia's tourism capital, adjacent to Victoria Falls, with a growing hospitality and services sector.
- Kabwe: a historic mining and industrial town on the Lusaka-Copperbelt rail corridor.
Future Growth Potential and Strategic Rationale for New Entrants
Zambia's position at the crossroads of three major regional trade corridors — TAZARA east to Dar es Salaam, the Lobito Corridor west through the DRC to Angola, and established road links to South Africa — gives manufacturers based here access to multiple ports rather than dependence on a single route. The Batoka Gorge hydroelectric project on the Zambezi (shared with Zimbabwe) and continued solar investment are expected to further ease the energy constraint that has historically limited industrial growth.
The clearest near-term business ideas sit in copper-linked manufacturing (cables, wire, refined cathodes), construction materials tied to the ongoing infrastructure build-out, agro-processing (sugar, soybean, horticulture), and energy transition minerals — all sectors with explicit government backing and existing anchor investment to build supply relationships around.
Cost and Investment Data for New Projects
Costs below are in Zambian Kwacha (ZMW), trading at approximately ZMW 23–24 to US$1 as of August 2026, reflecting the currency's 2025–2026 appreciation.
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Investment Category
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Approx. Cost Range (ZMW)
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Notes
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Small-scale agro-processing unit
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ZMW 500,000 – ZMW 3 million
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Basic processing line, rented premises
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Zambian-influenced project (5–25% local shareholding) minimum
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ZMW ~1.2 million (US$50,000)
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Reduced threshold under 2023 ZDA amendment
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Standard priority sector / MFEZ minimum (foreign)
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ZMW ~12 million (US$500,000)
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Unlocks full 10-year tax holiday in an MFEZ
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Medium manufacturing unit (construction materials, agri-food)
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ZMW 3 million – ZMW 30 million
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Industrial park or MFEZ premises, mid-size machinery
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ZDA Certificate of Registration licence fee
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ZMW ~12,783
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Valid for 10 years from date of issue
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Frequently Asked Questions
How do I start a business in Zambia as a foreign investor?
Register with the Zambia Development Agency (ZDA), which offers a seven-step incorporation process, then apply for a Certificate of Registration to access priority-sector or MFEZ incentives if your investment meets the qualifying threshold.
What is the minimum investment for MFEZ business in Zambia?
US$500,000 for full fiscal incentives including the 10-year tax holiday; this drops to US$50,000 for Zambian-influenced projects (5–25% local shareholding) or green/biodiversity-linked enterprises.
Which manufacturing business ideas in Zambia are most in demand in 2026?
Copper-linked manufacturing (cables, refined cathodes), construction materials, agro-processing, and energy transition minerals are the categories with the strongest current government backing and demand.
What government incentives for manufacturers in Zambia are currently active?
A 10-year, 0% corporate tax holiday for MFEZ investors, 0% import duty on capital equipment for five years in priority sectors, and accelerated depreciation of up to 100% on new plant and machinery.
Which Zambian economic zone is best for a new manufacturing plant?
Lusaka South MFEZ is the only government-owned zone with full backbone infrastructure; Chambishi MFEZ on the Copperbelt suits copper-linked manufacturing; the Zambia-China Economic and Trade Cooperation Zone (Lusaka East) offers established Chinese-linked supply chains.
How profitable is a manufacturing business in Zambia right now?
Sectors tied to copper value-addition and construction materials are seeing the strongest demand pull, supported by a strengthening currency and falling inflation that improve both financing costs and input affordability.
What are the biggest export business opportunities in Zambia for new manufacturers?
Copper cable and cathode processing (rather than raw ore export), agricultural exports (sugar, soybean, cotton, flowers), and the emerging energy transition minerals category are the clearest opportunities.
Can foreign investors fully own a manufacturing business in Zambia?
Yes, in most sectors; the US$500,000 threshold applies to fully foreign-owned investments, while reduced thresholds specifically reward Zambian co-ownership without requiring it.
How long does ZDA registration take in Zambia?
Independent reviews note that the current process, which is not yet a fully automated one-stop-shop, can take 3–6 months across multiple agencies, so timeline planning should account for this.
What SME support is available for manufacturing start-ups in Zambia?
Micro and small enterprises designated under the ZDA Act qualify for additional incentives beyond the standard priority-sector package; ZDA also provides aftercare services and facilitation support.
Is Zambia's currency stable for long-term investment planning?
The kwacha has strengthened significantly — up 18.2% in 2025 and a further 12.9% through March 2026 — though historical volatility (including drought-driven depreciation in 2024) means currency risk should still be actively managed.
Which sectors get priority under Zambia's national development plan?
Manufacturing, construction and infrastructure, tourism, and energy and water development are the four explicitly named priority sectors under the Investment, Trade and Business Development Act of 2022.
The Bottom Line
Zambia is in the middle of a genuine macroeconomic turnaround — debt restructured, currency strengthening, inflation falling, and interest rates cut for the first time in five years — layered onto a copper sector with some of the lowest production costs in the world and a clear, quantified national growth target. The 10-year MFEZ tax holiday and reduced investment thresholds make this one of the more accessible entry points among Southern African markets right now.
The categories worth prioritising track directly with government policy: copper-linked manufacturing, construction materials, agro-processing and energy transition minerals. Entrepreneurs who move while the currency tailwind and debt-restructuring dividend are still fresh get in ahead of a copper target that, if met, would roughly quadruple the sector's output within five years.
References
African Development Bank (AfDB) — Zambia Economic Outlook and Country Focus Report 2026
Zambia Development Agency (ZDA) — Investment Incentives guide and ZDA Act No. 17 of 2022
World Bank Group — Zambia Economic Update, 'Powering Zambia's Transformation', 2026
Zambia Revenue Authority (ZRA) — Tax Incentives guidance
Bank of Zambia — monetary policy and exchange rate data
Ministry of Commerce, Trade and Industry, Zambia — investment promotion and Special Economic Zones data
