Zambian manufacturers applaud resilience of sector, as agro-processing drives performance

The Zambia Association of Manufacturers (ZAM) says the country’s manufacturing sector has remained resilient despite a difficult operating environment, with growth being driven by strong performance in agro-processing, food and beverages, leather processing and metal fabrication.

In a statement issued on Wednesday, ZAM president, Mohammed Umar, said the sustained expansion across these subsectors demonstrated the sector’s ability to withstand economic headwinds while continuing to increase production and create jobs.

He said official data from the Zambia Statistics Agency shows manufacturing recorded positive growth in every year between 2022 and the first quarter of 2026, expanding by 4.7 percent in 2022, 4.5 percent in 2023, 2.3 percent in 2024, 7.1 percent in 2025 and 5.4 percent in the first quarter of this year.

Umar said the broad-based growth reflected rising production capacity, value addition and employment rather than investment commitments that have yet to materialise.

“Growth has been broad-based, supported by agro-processing, food and beverages, leather processing and metal fabrication, among other subsectors,” he said.

He noted that the sector’s performance had come despite electricity constraints caused by the drought, limited access to affordable long-term finance and continued global economic uncertainty.

According to Umar, manufacturers have continued to expand production and remain competitive, reflecting sustained investor confidence in Zambia’s industrial potential.

He said manufacturing now contributed nearly 10 percent of the country’s Gross Domestic Product and accounted for 10.4 percent of Government tax revenue as of the first quarter of 2026, while supporting thousands of businesses within domestic supply chains.

Umar was commenting on the Zambia Development Agency’s report on actualised investments between 2021 and June 2026, which showed manufacturing attracted US$7.33 billion, representing 38.5 percent of the US$19.07 billion invested during the period.

He also acknowledged government reforms, including macroeconomic stabilisation, regulatory reforms, digitalisation of public services and improved public-private dialogue, saying they had strengthened the investment climate and supported business expansion.

However, Umar said further progress would depend on addressing structural challenges affecting manufacturers, including access to reliable and affordable electricity, lower business costs, competitively priced long-term finance, predictable tax policies and improved market access.

He reaffirmed ZAM’s commitment to working with government and other stakeholders to strengthen the competitiveness of Zambia’s manufacturing sector and accelerate the country’s industrialisation agenda.

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