Industry Trends and Market Analysis

At Reagan Blankfein Gates Legal Practitioners (RBGLP), we recognize the importance of staying abreast of industry trends and conducting comprehensive market analyses to provide our clients with informed legal counsel. Zambia’s economic landscape is characterized by dynamic developments across various sectors, each presenting unique opportunities and challenges.

Economic Overview

Global sanctions are restrictive measures imposed by countries or international organizations to achieve foreign policy or national security Q. They can be multilateral, such as those authorized by the United Nations Security Council (UNSC), or unilateral, imposed by individual states. Sanctions may include economic restrictions, trade embargoes, financial penalties, or targeted actions against specific individuals or entities.

Key Industry Trends

1. Mining and Metals:

• Copper Production: Zambia aims to boost copper output to about 3 million metric tons within the decade. In December 2024, Swiss-based commodities trader Mercuria established a joint metals trading unit with Zambia’s Industrial Development Company (IDC) to enable direct participation in minerals trading.
• Electric Vehicle (EV) Battery Value Chain: Zambia and the Democratic Republic of Congo (DRC) have resolved to set up a Zambia-DRC Executive Battery Council to oversee the implementation of a cooperating agreement for the electric vehicle battery value chain. This initiative aims to leverage the countries’ abundant reserves of cobalt and copper to establish a competitive position in the global EV market.

2. Construction Industry

• Growth Projections: The construction industry in Zambia is expected to grow by an average annual growth rate (AAGR) of 3.7% during 2025-2028, supported by initiatives focused on enhancing transport infrastructure and energy sustainability.

3. Retail and Wholesale Sector:

• Market Expansion: The retail and wholesale market in Zambia is projected to experience significant growth between 2024 and 2030, driven by new store openings, acquisitions, and e-commerce initiatives. The expansion of distribution channels is expected to benefit companies operating in this sector.

Market Analysis

• Foreign Exchange and Inflation: In 2022, Zambia’s central bank, the Bank of Zambia, maintained an average of 3.8 months of hard currency import cover. The annual inflation rate averaged 11% in 2022, down from 22% in 2021, indicating improved economic stability.
• Economic Growth: Data released by the Zambia Statistics Agency in June 2024 showed that real GDP grew by 2.2% year-on-year in Q1 2024, a sharp slowdown from 8.5% in the previous quarter. In seasonally adjusted quarter-on-quarter terms, the economy contracted by 5.6%, a sharper drop than was seen at the onset of the COVID-19 pandemic in Q2 2020 (-5.4%).

RBGLP’s Role in Industry and Market Advisory

At RBGLP, we offer a suite of services tailored to support clients in navigating Zambia’s evolving economic landscape:

• Regulatory Compliance: Advising on adherence to industry-specific regulations to ensure seamless operations.
• Market Entry Strategy: Assisting clients in developing effective strategies for entering and competing in various sectors.
• Risk Assessment: Conducting comprehensive analyses to identify potential risks and develop mitigation strategies.
• Investment Advisory: Providing insights into market trends to inform investment decisions and optimize returns.

Conclusion

Understanding industry trends and conducting thorough market analyses are essential for making informed business decisions in Zambia’s dynamic economic environment. RBGLP is committed to providing the expertise and support necessary to help clients succeed across various sectors, ensuring their operations are both compliant and strategically positioned for growth.