Zambia is emerging as a powerful agribusiness destination in Southern Africa, offering vast untapped land, strategic trade positioning, and a robust policy environment. With only 15% of its 42 million hectares of arable land currently cultivated, the country holds immense potential for investors ready to engage across the agricultural value chain.
Zambia’s Agribusiness Landscape: An Overview
Untapped Agricultural Resources
Despite employing 70% of the population, Zambia’s agriculture contributes just 2.8% to GDP. However, the country’s abundant water (over 40% of SADC’s resources), fertile soils, and political stability position it as a future regional food hub. The underutilization of its 2.75 million irrigable hectares further opens the door to mechanized farming and irrigation investments.
Strategic Government Support
The Zambian government has introduced significant incentives for agribusiness investors:
- Zero tax on dividends from farming profits
- 100% capital allowances on equipment
- Gazetted farm blocks of 100,000 hectares in all provinces
- Duty-free agricultural inputs and exports
These policies are complemented by broader infrastructure investments in transport, energy, and ICT to support agricultural logistics and supply chains.
Value Chain Investment Opportunities
Primary Production
- Crops: Maize, wheat, and soybeans remain staples, but demand is rising for sunflower, cassava, avocados, and other high-value crops.
- Livestock & Aquaculture: Growth in poultry, dairy, and beef sectors offers opportunities, as does fish farming (especially tilapia and catfish), targeting both domestic demand and regional trade.
Farm Block Projects
Priority farm blocks such as Luswishi, Kalumwange, and Nansanga are open for private investment. Each comes with infrastructure development plans and proximity to roads, markets, and water sources.
Warehousing and Post-Harvest Management
The Infrastructure Deficit
Post-harvest losses reach up to 40% for staple crops due to:
- Inadequate storage infrastructure
- Limited access to preservation technologies
- Poor post-harvest handling
Recent Investments
- LCCS Cold Store (Lusaka): Zambia’s first international-standard cold storage facility (5,500 pallet capacity)
- Mwinilunga Plant: 5,000 sqm warehouse attached to a fruit processing hub
- Ndola Silo Project: 15,000-tonne metal silo for temperature-controlled grain storage
Storage Tech Integration
Investors can tap into scalable innovations:
- Metal silos
- Super grain bags
- IoT-powered humidity and temperature monitoring systems
Regulatory and Compliance Landscape
Key Food Safety and Agricultural Input Laws
- Food Safety Act No. 7 of 2019: Enforces quality standards via Zambia Bureau of Standards (ZABS)
- Fertilisers and Feed Act: Governs registration, production, and quality control of farm inputs
- SPS Compliance: Zambia aligns with WTO Sanitary and Phytosanitary standards, facilitating global trade readiness
Trade Access
Zambia’s membership in COMESA, SADC, and the EU’s Everything But Arms initiative ensures near-zero tariff access to 20+ countries, including large markets like the DRC and South Africa.
Financing and Investment Vehicles
Local and International Support
- EIB Zambia Agriculture Value Chain Facility: Offers loans, guarantees, and technical assistance to SMEs
- ZANACO Sustainable Agri-Finance: Loans up to K500,000 for irrigation and equipment
- MCC Farm-to-Market Compact: $458 million investment in rural roads, irrigation, and warehouses
- AfDB Guarantees: Backing large-scale projects like Zambeef’s $100 million expansion
Strategic Growth Opportunities
Value Addition and Agro-Processing
Transforming raw commodities into finished goods offers exceptional returns:
- Soybeans → Cooking oil
- Maize → Flour
- Dairy → Cheese, yoghurt
Zambia’s location enables low-cost exports to Angola, DRC, Malawi, and Zimbabwe.
Export Markets and Surplus Production
With a 2024/2025 maize surplus of over 500,000 tonnes, Zambia is set to become a reliable food exporter. Regional demand remains high, especially during drought periods in neighboring countries.
Climate-Smart Agriculture
- 100% germination rates achieved in natural farming plots
- AI-driven satellite tools now inform irrigation, crop rotation, and pest control
- The Green Climate Fund supports PPPs for resilient farming technologies
Tax and Business Incentives
- 15% income tax on farm profits
- 5-year tax holidays for rural SMEs
- Exemption from import duties on farming machinery and irrigation equipment
- Up to 100% capital allowances on qualifying assets
Economic Outlook
Zambia’s GDP is expected to grow by 6% annually in 2025 and 2026, driven by agriculture and increased commodity exports. With falling inflation and improved monetary policy, the country’s macroeconomic stability is reinforcing investor confidence in agribusiness.
Final Takeaway
Zambia offers more than fertile soil—it offers a fertile investment landscape. From policy incentives and storage innovations to strategic export access and abundant natural resources, the country is a sleeping giant in African agribusiness. For foreign investors seeking long-term gains in a growth-ready sector, Zambia’s value chain is ripe for cultivation.
