Manufacturing & Industrialization
LevrAge Sector Report: Manufacturing & Industrialization (2025)
Executive Summary
- **Industrialization urgency.** Manufacturing contributes only ~8% to GDP; government targeting 20% by 2030 through Multi-Facility Economic Zones (MFEZs) and value-add mandates.
- **SEZ incentives stack deep.** 0% corporate tax for 10 years, duty-free imports, land lease incentives, and streamlined approvals make MFEZs Africa's most competitive industrial zones.
- **Value chains ripe for integration.** Copper/cobalt → wire/cable; agriculture → food processing; textiles → garments. Government prioritizing backward and forward linkages.
- **Regional export base.** COMESA, SADC, AGOA access + North-South Corridor logistics position Zambia as Southern African manufacturing hub serving 600M+ consumers.
- **ZECS competitive advantage.** Investors with clear supply chain plans, local content commitments, and export strategies secure prime MFEZ land and fast-track EPA approvals.
ZDA Investment Landscape
Why Manufacturing Matters to Zambia
Strategic Position:
- Central location: North-South Corridor (Tanzania-South Africa)
- Trade agreements: COMESA, SADC, AGOA, EPA (EU)
- 12 active MFEZs: Lusaka, Copperbelt, Livingstone, Chipata, etc.
- Resource endowment: Copper, agriculture, energy for value-add
Government Priorities
8th National Development Plan (8NDP) Focus:
- Increase manufacturing GDP contribution to 20%
- Develop value-add industries (mining, agriculture, energy)
- Expand MFEZ coverage to all provinces
- Promote export-oriented manufacturing
- Enhance local content and skills transfer
Investment Incentives & Policy Framework
Multi-Facility Economic Zones (MFEZ) Incentives:
- 0% corporate tax for first 10 years (manufacturing enterprises)
- 0% import duty on raw materials, capital equipment, and machinery
- 0% VAT on select manufacturing inputs
- Duty-free exports within COMESA and SADC
- Streamlined approvals: One-stop border posts, fast-track licenses
- Land lease: Long-term (25-50 year) leases at concessional rates
- Repatriation: 100% profit and dividend repatriation allowed
Priority Manufacturing Sectors:
- Agro-processing (food, beverages, packaging)
- Copper/cobalt beneficiation (wire, cable, cathodes)
- Textiles and garments (AGOA-eligible)
- Construction materials (cement, steel, glass)
- Pharmaceuticals and medical supplies
- Automotive and machinery assembly
Sector Statistics
- Manufacturing GDP: ~8% (targeting 20% by 2030)
- Manufacturing Employment: 150K+ direct jobs
- MFEZ Coverage: 12 zones operational, 8 under development
- Export Growth: +12% annually
- FDI Target: $3B+ in manufacturing (2025-2030)
- MFEZ Occupancy: 60% (room for 1,000+ new enterprises)
ZECS Readiness Requirements
To be competitive for MFEZ land, industrial licenses, and export incentives:
Regulatory & Compliance Pathway (20% of ZECS score)
- MFEZ developer or enterprise license application
- Environmental Impact Assessment (EIA) for industrial operations
- Zambia Bureau of Standards certification (product quality)
- Export license or COMESA/SADC certificate of origin
- Occupational health and safety compliance plan
- Unclear MFEZ licensing stage (developer vs. enterprise)
- Missing product safety and quality certifications
- No waste management and environmental compliance plan
- Incomplete supply chain and logistics documentation
- Engage with ZDA MFEZ desk early (land allocation process)
- Partner with established MFEZ developers
- Plan for ISO 9001, HACCP, or industry-specific certifications
- Design for export markets (COMESA, SADC, AGOA)
Local Partner Fit (20% of ZECS score)
- Zambian manufacturing partner or supplier engagement
- Local content plan (30%+ target for inputs/labor)
- Skills transfer and technical training program
- Supply chain linkages (raw materials, logistics)
- Off-taker agreements or export contracts
- Co-locate with anchor tenants in MFEZs
- Engage local SMEs for component supply
- Create apprenticeship and technician training programs
- Support community employment and procurement
Financial Preparedness (15% of ZECS score)
- Bankable business plan with production forecasts
- CapEx breakdown (factory, equipment, working capital)
- Off-taker agreements or export contracts
- DFI engagement (AfDB, IFC, DFC)
- Working capital and inventory financing plan
LevrAge Facilitation Pathway
Phase 1: Entry Strategy (60-90 days)
Our Role:
- Map MFEZ options and land availability
- Identify suitable manufacturing partners or suppliers
- Assess logistics and supply chain infrastructure
- Facilitate introductions to ZDA MFEZ desk
Deliverables:
- Manufacturing entry roadmap
- MFEZ comparison and site selection
- Regulatory checklist and timeline
Phase 2: Stakeholder Engagement (90-180 days)
Our Role:
- Coordinate meetings with ZDA and MFEZ developers
- Facilitate supplier vetting and due diligence
- Connect with logistics providers and freight forwarders
- Arrange site visits and infrastructure assessments
Phase 3: Deal Structuring (180-360 days)
Our Role:
- MFEZ lease negotiation support
- Supply chain and off-taker agreement facilitation
- DFI and project finance introductions
- Construction and equipment procurement support
Typical Timeline: 12-24 months from MFEZ allocation to production start
Active Opportunities
Featured Project: Copper Wire & Cable Manufacturing
Investor: Industrial manufacturing consortium
Product: Copper wire, cable, electrical components
Location: Chambishi MFEZ (Copperbelt)
Stage: Land allocated, financing
Investment: $120M
Systemic Value Score: 86% (Catalytic)
Why It Matters:
- Downstream value-add from local copper mining
- Export to regional markets (DRC, Zimbabwe, Tanzania)
- 800+ direct jobs, 2,000+ supply chain jobs
- Reduces copper export as raw concentrate
- IFC and DFC financing interest
ZECS Status: Verified (Gold tier)
Featured Project: Pharmaceutical Manufacturing & Packaging
Investor: Pharma manufacturing group
Product: Generic medicines, medical supplies
Location: Lusaka East MFEZ
Stage: Feasibility
Investment: $65M
Systemic Value Score: 83% (High Impact)
Why It Matters:
- Reduces drug import dependency (80% currently imported)
- Serves regional market (COMESA, SADC)
- WHO-GMP certified facility
- 400+ technical jobs
- Public health security impact
ZECS Status: In Process (targeting Platinum tier)
Sector Outlook & Trends
2025-2030 Opportunities
Mining Value-Add
- Copper wire and cable manufacturing
- Battery precursor processing
- Steel and aluminum fabrication
- Industrial chemicals from mining by-products
Agro-Processing
- Food and beverage manufacturing
- Packaging materials (plastics, cartons, labels)
- Cold storage and logistics equipment
- Agricultural equipment assembly
Consumer Goods
- Textiles and garment manufacturing (AGOA)
- Personal care and hygiene products
- Household goods and appliances
- Building materials (cement, bricks, roofing)
Industrial Services
- Equipment maintenance and repair
- Industrial automation and controls
- Quality testing and certification
- Logistics and warehousing
Key Success Factors
✅ Secure MFEZ land early (prime locations fill fast)
✅ Design for export (regional markets + AGOA)
✅ Plan for local content (30%+ creates competitive advantage)
✅ Leverage trade agreements (COMESA, SADC duty-free access)
✅ Invest in skills transfer (technical training = sustainability)
Next Steps
For Investors
- Start with Free ZECS Precheck → Get Your Score
- Review Active Pipeline → ZDA Pipeline Console
- Download Meeting Prep Guide → Embassy Readiness Checklist
- Book Consultation → Schedule 30-Min Assessment
For Partners
- Submit Opportunity → Project Intake Form
- Request Partnership Brief → Contact Us
- Zambia Development Agency (ZDA): Manufacturing sector profiles
- Ministry of Commerce, Trade and Industry: Industrial policy
- MFEZ Developers: Lusaka East, Chambishi, Sub-Saharan Gemstone Exchange
- Zambia Bureau of Standards (ZBS): Product certification
- Zambia Revenue Authority (ZRA): MFEZ tax incentives
- LevrAge Resources: Zambia Investment Roadshow 2025 Results, ZECS Methodology
Disclaimer
This sector brief is provided for informational purposes and reflects publicly available data from ZDA and government sources. It does not constitute investment advice, legal guidance, or an endorsement by the Zambia Development Agency or Government of Zambia.
Last Updated: October 12, 2025
Contact: LevrAge Strategy & Solutions | info@levrage.solutions
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