As the second largest producer of copper in Africa, Zambia has long been recognized as a significant player in the global commodity market. However, with a renewed focus on diversification and an improved business environment, Zambia is quickly emerging as a compelling destination for business on the continent.
Zambia boasts a favorable regulatory environment that is designed to attract foreign investment. According to the World Bank’s Doing Business 2020 report, Zambia ranks 85th globally, outperforming several African countries such as Kenya and Tanzania. The government has streamlined the process for starting a business, and the country’s Investment Promotion and Protection Act ensures that foreign investors are guaranteed legal protection.
Moreover, Zambia has abundant natural resources and a young and growing population, which presents a significant opportunity for businesses looking to tap into a new market. The country has a wealth of untapped potential in sectors such as agriculture, tourism, and manufacturing. Agriculture alone accounts for 35% of Zambia’s GDP, and the government has taken steps to encourage private investment in the sector through initiatives such as the Farmer Input Support Program.
The country’s strategic location in southern Africa is another factor that makes it an attractive business destination. Zambia is situated at the crossroads of several major transport corridors, making it a gateway to the rest of the continent. The country has an extensive road network, and its main airports in Lusaka and Livingstone are well-connected to regional and international destinations.
Zambia’s efforts to improve its business environment have not gone unnoticed. The World Economic Forum’s Global Competitiveness Report 2019 ranks Zambia as the second most competitive economy in southern Africa, after South Africa. The report highlights the country’s macroeconomic stability, good infrastructure, and strong institutions.
Zambia’s conducive business environment, young population, strategic location, and abundant natural resources make it an attractive destination for investors looking to expand their footprint on the African continent. With a growing middle class and a government committed to creating a favorable business environment, Zambia is undoubtedly poised for growth in the years to come.