Zambia - Market OpportunitiesZambia - Market Opportunities
- There are a number of commercial opportunities in Zambia’s emerging economy, which includes a rising middle class in urban population centers. In general, most sectors are dominated by a few large players, leaving room for new market entrants. Market opportunities abound in the following sectors:
- Energy: Demand for electricity has grown at an annual rate of about three percent and generation development is starting to grow. Investment opportunities include electricity generation especially in the off-grid market, upstream and downstream petroleum, and renewable energies. Demand for renewable energies has grown significantly. The government is considering policies that will incentivize a willing-buyer/willing-seller model for power purchase agreements (PPA). However, currently the financially distressed electricity parastatal ZESCO is the main off taker of large PPAs, which will likely limit large-scale development in the short term.
- Infrastructure: Building and construction is the largest industrial sector. Zambia has a national housing deficit of 1.5 million. Opportunities in the sector are led by demand in the mining industry, infrastructure development, residential buildings, and offices.
- Mining: Zambia is the second largest copper producer in Africa and seventh largest in the world. Foreign direct investment (FDI), since privatization of the sector, totals more than $8 billion. Opportunities exist in exploration, mining services, water management, engineering, construction, and environmental services. Zambia is also home to other precious metals such as gold, silver, gemstones (amethyst, aquamarine, emerald, and tourmaline), coal, and industrial minerals. Immense potential exists for both extraction and value added industries.
- Information and Communication Technology (ICT): The government has embarked on reforms in and liberalization of the ICT sector. Opportunities include provision of retail fiber optic, mobile, internet service providers, software development and sales, and ICT business parks.
- Tourism: Zambia shares the world famous Victoria Falls with Zimbabwe, one of the Seven Natural Wonders of the World. Zambia boasts 20 national parks and 34 game management areas. There are opportunities to build hotels to address Zambia’s general lack of room capacity in tourism and mining regions, in addition to hospitality services, infrastructure development, and tourism site operations.
Zambia Trade Development and Promotion