The industry sector has been identified as a core driver of Zambia’s industrial transformation, employment creation and economic diversification. The sector operates under the National Industrial Policy, which prioritises eight strategic manufacturing subsectors: processed foods; textiles and garments; engineering products; wood and wood products; leather and leather products; mineral processing and beneficiation; pharmaceuticals; and blue-economy-related manufacturing. These areas present strong potential for value-addition, import substitution and export expansion. Manufacturing growth is supported by complementary sectors such as agriculture, construction, tourism, ICT, energy, education and health, which provide raw materials, demand linkages and technology inputs. Government has further implemented enabling initiatives such as Multi-Facility Economic Zones (MFEZs), Industrial Parks, fiscal incentives and infrastructure support to stimulate industrial development, strengthen domestic supply chains and enhance Zambia’s export competitiveness.
Economic Contribution
Manufacturing contributed about 8.3 percent to Zambia’s GDP in 2023, against a target of 36.1 percent by 2030, underscoring significant expansion potential. The sector has grown at an average of 3 percent annually, mainly driven by agro-processing, textiles, leather and secondary metal processing. Zambia remains a net importer of finished goods, with manufactured imports making up roughly 67% of total trade, while value-added exports account for only about 10%. The sector benefits from strong linkages with agriculture; particularly in milling, beverages, edible oils, animal feed and dairy, alongside mineral-based manufacturing such as copper refining and engineering materials. Given its role in job creation, foreign exchange earnings and economic diversification, manufacturing remains central to Zambia’s medium-term growth strategy.
Outlook
Zambia’s manufacturing sector has strong expansion prospects supported by growing demand, resource availability and policy incentives. Agro-processing remains a key driver, leveraging more than 42 million hectares of arable land and farm blocks of 100,000 hectares per province. Growth in mineral beneficiation, chemicals, textiles, pharmaceuticals, packaging and engineering products is expected to increase value-addition and reduce reliance on imports.
With continued investment through MFEZs, industrial parks and export-oriented incentives, Zambia is well-positioned to increase manufacturing’s GDP share over the next decade. Greater private-sector participation, localisation of production and access to regional markets will advance the shift toward a more industrialised, export-driven economy, creating opportunities in processing capacity, product development, packaging and skills enhancement.
