Trade is the biggest contributor to the Zambian economy by sector, constituting 21% of the gross domestic product in 2022. The trade market has grown into the ‘maturing’ stage with global grocery chains such as Shoprite operating in large cities and an increase in the use of electronic payment systems such as Visa. Strong demographics are a key strength of the trade sector. The population continues to grow rapidly, and young adults account for 30% of the population, highlighting a strong demographic profile for the future. However, elevated poverty, high unemployment and relatively low levels of economic inclusion continue to weigh negatively on household spending power. Fluctuations in the exchange rate also reduce the attractiveness of the market to international retailers. The sector was also significantly hit by the Covid-19 pandemic, shrinking by 24% in 2020.

By addressing these challenges and leveraging the strengths of the Zambian trade sector such as the country’s rapidly increasing population and rising urbanization, companies can help take the sector to even greater heights. In 2021, e-commerce generated US$270.0m, 86.6% of total digital revenues. Therefore, by embracing digital technology and other innovations, Zambia’s trade sector can grow beyond the ‘maturing’ stage, profoundly impacting economic growth and consumer livelihoods.

At Red Black Ventures, we believe that unlocking the full value of the Zambian trade sector requires a deeper understanding of its unique challenges and opportunities. We therefore keep a close eye on market trends, gather data, and work with businesses to develop strategies that help them succeed in the sector.