Zambia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in zambia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Challenges
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As a landlocked country with various infrastructure challenges that impede the free flow of imports and exports, businesses in Zambia face some of the highest transportation costs in Southern Africa. Due to the government’s debt crisis, the Bank of Zambia has had to significantly increase yields on its domestic securities issuances to finance its fiscal deficit. In turn, this has made domestic private sector credit prohibitively expensive for businesses. (Note:  As of September 16, 2025,  the yield on a 10-year Bank of Zambia bond was about 19.51 percent. End Note.)   

At the close of Zambia’s fiscal year in 2024   the government had accrued $3.1 billion in arrears to domestic suppliers, a 17.3 percent reduction from $3.7 billion in 2023. The arrears balance does not include the estimated $3.44 billion owed by parastatals, which the government, as the guarantor, could, under certain circumstances, become responsible for. The unpaid arrears have had a significant negative impact on domestic suppliers of goods and services, including layoffs, deferred investment, and bankruptcies. 

Other key market challenges include policy inconsistency, pervasive corruption, lack of modern manufacturing equipment, and inadequate infrastructure. Transparency International’s 2024 Corruption Perceptions Index ranked Zambia 92 out of 180 countries,  an improvement of  six spots compared to 98/180 in 2023. This progress is attributed to reduced bribery in business operations, driven by reforms in electronic government service delivery. The Zambian government’s inconsistent adherence to its own public tendering and contracting regulations has led to credible allegations that some procurement and licensing awards were influenced by corruption and malfeasance. 

To expedite the flow of goods across borders, the Zambian government has established integrated customs services at several border points:  Chirundu (Zambia-Zimbabwe), Kasumbalesa (DRC-Zambia), Katimamulilo (Zambia-Namibia), Kazungula (Zambia-Botswana), Nakonde (Zambia-Tanzania), Mwami (Zambia-Malawi), and Chanida (Zambia-Mozambique). While the integrated customs services have improved the flow of cross-border goods, trucks continue to wait at least several hours, and sometimes days, to cross borders. The flow of goods within the region is further impeded by the inconsistent quality of the network of primary, secondary, and tertiary roads – many of which degrade further during the rainy season (November to March). 

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