LUSAKA - The Zambia Association of Manufacturers (ZAM) has welcomed the latest Zambia Development Agency (ZDA) Actualised Investments Report, saying the findings reaffirm manufacturing as Zambia's leading investment sector and a major driver of economic growth and employment.
According to the report, Zambia recorded US$19.07 billion in actualised investments between 2021 and June 2026, with the manufacturing sector accounting for US$7.33 billion, representing 38.5 percent of the total investment portfolio.
The report further shows that the sector created 46,759 jobs, making it the second-largest contributor to employment among sectors monitored by the ZDA.
ZAM President Mohammed Umar said the report demonstrates that manufacturing continues to play a central role in Zambia's industrialisation agenda by promoting economic diversification, value addition and sustainable growth.
He noted that the sector's strong investment performance is supported by steady growth in manufacturing output recorded by the Zambia Statistics Agency, with expansion of 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 2026.
Mr. Umar attributed the growth to strong performance in key subsectors, including agro-processing, food and beverage production, leather processing, and metal fabrication.
He said the sustained growth demonstrates that investments are translating into increased production capacity, value addition and employment rather than remaining investment commitments on paper.
According to Mr. Umar, manufacturing now contributes nearly 10 percent of Zambia's Gross Domestic Product (GDP) and accounts for 10.4 percent of Government tax revenue as of the first quarter of 2026.
He acknowledged that the sector has remained resilient despite challenges such as energy shortages caused by drought, limited access to affordable long-term financing, and global economic uncertainty.
Mr. Umar also credited government reforms, including macroeconomic stabilisation, regulatory reforms, digitalisation of public services, and strengthened public-private dialogue, for improving Zambia's investment climate.
However, he said further measures are needed to sustain the sector's momentum, including reliable and affordable electricity, lower business costs, increased access to long-term financing, predictable tax policies, stronger implementation of local content policies and improved access to regional and international markets.
He added that continued investment in manufacturing will be essential for creating jobs, increasing exports, reducing import dependence and achieving the country's Vision 2030 development goals.
Mr. Umar reaffirmed ZAM's commitment to working with the Government and other stakeholders to strengthen the competitiveness of Zambia's manufacturing sector and accelerate inclusive and sustainable industrial development.
Source: Kalemba