The Zambia steel and metal fabrication industry is quietly transforming from a small domestic supplier into a regional heavyweight. Abundant raw materials, surging construction demand, and targeted government incentives give foreign manufacturers an unusual mix of low input costs and high growth potential. Below is an in-depth look at why now is the right time to invest
1. Abundant Raw Materials Keep Costs Down
Zambia’s central and northern regions host sizeable iron-ore deposits, while decades of copper mining create steady scrap-metal streams. Together they supply most inputs local mills need, reducing reliance on costly imports.(blog.cabaro-group.com)
Hydropower from the Zambezi and Kafue rivers further cuts energy costs, an advantage many African peers lack. The availability of clean electricity also positions new mills to market themselves as lower-carbon producers.
2. Domestic and Regional Demand Is Climbing
Infrastructure spending is accelerating. Government data show construction output is projected to rise 5 percent in real terms in 2025 after a robust 6.6 percent gain in 2024.(businesswire.com)
Every new road, dam, and housing project needs rebar, beams, and plate. Mining expansions in the Copperbelt call for truck beds, crushers, and piping—items best sourced from local fabricators. Beyond Zambia, the COMESA bloc offers duty-free access to 21 markets and more than 600 million consumers.
3. Policy Tailwinds and Industrial Parks
Lusaka’s industrial policy now treats steel as a “priority subsector.” Firms located in Multi-Facility Economic Zones (MFEZs) enjoy fast-track licensing, tax holidays on imported machinery, and up to 0 percent corporate tax for the first five years.
The newly opened PDV Metals plant inside the Lusaka South MFEZ—built for US $230 million—shows how quickly investors can scale under this framework.(yieh.com)
4. Competitive Advantages for Investors
| Advantage | Why It Matters |
| Skilled labour | Mining heritage produces welders, fitters, and metallurgists who adapt quickly to mill technology.(blog.cabaro-group.com) |
| Lower logistics cost | Producing billets and long products locally eliminates six-week shipping lags from South Africa or China.(goodtimesteel.com) |
| Regional export reach | Zambian mills already truck steel to DR Congo, Malawi, and Botswana, proving cross-border demand.(goodtimesteel.com) |
5. Capacity Is Expanding Fast
Kafue Steel (UMCIL)
- Integrated mini-mill south of Lusaka.
- Rated at 240,000 tpa of long products.(en.wikipedia.org)
PDV Metals – Lusaka South MFEZ
- Southern Africa’s largest rebar line by capacity.
- 50–70 percent of output earmarked for export.(yieh.com)
Good Time Steel
- Eighteen years in operation; three plants across Zambia.
- Supplies angles, beams, decking, and storage tanks to seven neighbouring countries.(goodtimesteel.com)
Together these players prove that Zambia can host world-class mills—and that more room exists for specialty or flat-steel entrants.
6. Niche Fabrication Opportunities
Most local shops still focus on basic welding. Gaps remain in:
- Mobile plant maintenance for remote mines.
- Custom light-gauge fabrication (roof trusses, purlins).
- Laser-cut components for agriculture and renewable-energy projects.
Low competition and high mark-ups make these sub-sectors attractive bolt-ons for foreign firms that already supply machinery or consumables in the region.(mjconsultants.co.zm)
7. Practical Entry Checklist
| Step | Action |
| 1. Choose an MFEZ location | Access ready-built sheds, duty-free import of machinery, and reduced corporate tax. |
| 2. Secure raw-material contracts | Partner with local scrap yards and iron-ore miners to lock in feedstock at fixed spreads. |
| 3. Tap training grants | The Technical Education, Vocational & Entrepreneurship Training Authority (TEVETA) co-funds skills programmes for new investors. |
| 4. Meet quality standards | Align with ZABS and SADC standards (e.g., S355JR for structural sections) to ensure export eligibility. |
| 5. Plan ESG compliance early | Zambia’s Environmental Management Act requires an Environmental Impact Statement for mills; early filing speeds approval. |
8. Risks and Mitigations
| Risk | Mitigation |
| Currency volatility | Hedge Kwacha exposure with USD export contracts inside COMESA. |
| Power rationing during drought years | Install captive solar + storage or co-locate near hydropower stations. |
| Imported dump-price steel | Lobby through the Zambia Association of Manufacturers for anti-dumping tariffs, already applied in 2023 on certain Chinese sections. |
Conclusion
Zambia brings together the three ingredients foreign manufacturers want: cheap inputs, rising demand, and policy certainty. Early movers can lock in market share before regional competitors ramp up. In short, the Zambia steel and metal fabrication industry is no longer a secret—it is simply waiting for investors bold enough to seize the opportunity.
