The transport sector is one of the country’s fastest growing sectors, having experienced an average annual growth of 10% between 2018 and 2022, outperformed only by construction. The majority of this growth was driven by an increase in total trade which grew by an average annual growth of 4.4% between 2018 and 2022. The passenger transportation sub-sector experienced a structural shift in service delivery with the introduction of ride-hailing in 2017 which offered transportation services by linking passengers to drivers using their personal vehicles. This shift created additional value which helped drive growth within the sector.

One of the key challenges faced by the transportation sector is poor infrastructure that falls short of the regional average in both extent and quality, as measured by Fitch Solutions’ Logistics risk index. If significant improvements are not actualized in the transport sector, there could be growth-hindering repercussions for other sectors such as mining, a critical driver of economic performance.

Zambia has no direct access to the sea but is strategically located in central and southern Africa as it is surrounded by 8 countries. As a result, the country is exposed to multiple import and export trade routes signalling potential for the country to be a transportation hub in Sub-Saharan Africa. The government will, however, have to play a major role in the transition of the country from land-locked to land-linked.

Even in the face of slow improvements to the poor infrastructure, companies across all levels of the value chain can still grow and contribute to the development of the sector. This would require a deeper understanding of the sector’s intricate strengths and weaknesses to aid opportunity identification and service delivery optimization. At Red Black Ventures, we keep a close eye on new developments, gather data, and work with organizations to help them succeed in the sector.