weighted score 3.8 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Zambia
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Zambia as a sourcing destination.
Labour cost competitiveness
8
Very cheap labour costs by global standards. Manufacturing and mining wages substantially below East Asian and Eastern European competitors.
Supply base depth
3
Supply base concentrated in copper and cobalt mining. Limited manufacturing ecosystem outside extractives. Few tier-2 or tier-3 supplier networks.
Logistics & infrastructure
3
Landlocked — primary export routes via Dar es Salaam and Durban add significant transit time and cost. Road and rail infrastructure improving but below regional leaders.
Workforce skills
3
Young population but skills base is limited. Technical training capacity is developing. English-speaking workforce is an advantage in the region.
Scalability
6
Copper and cobalt production can scale with investment. Emerald mining has expansion potential. Manufacturing scalability outside extractives is constrained by infrastructure.
Ease of doing business
3
Hichilema reforms improving the business environment but regulatory complexity, land tenure uncertainty, and bureaucratic processes remain constraints.
Trade access & tariffs
2
EU EBA provides duty-free access — the most preferential regime available. COMESA and SADC membership provide regional trade access.
Sustainability baseline
3
Mining sector faces environmental and social scrutiny. EITI membership supports transparency. Hydropower-dependent energy mix is renewable but vulnerable to drought.
Innovation & IP
4
Limited domestic R&D capacity. Innovation concentrated in mining technology adoption. University research base is small but growing.
Quality standards
3
Quality management systems in copper and cobalt mining are improving with international operator involvement. Outside mining, quality infrastructure is limited.
Labour, Cost & Resources
Labour, Cost & Resources
- Labour cost
- Zambia offers very cheap labour by global standards. Manufacturing wages are substantially below East Asian and Eastern European competitors, making it attractive for labour-intensive processing and assembly operations.
- Mining resources
- Zambia is the world's #7 copper producer and a significant source of cobalt — both critical minerals for the energy transition. The country is also the world's largest source of emeralds, with the Kagem mine producing high-quality stones.
- Population
- Population of approximately 20 million with a young demographic profile. Median age is under 18, providing a long-term labour supply trajectory — though workforce skills development remains a constraint.
Trade Access & Logistics
Trade Access & Logistics
- EU trade access
- Zambia qualifies for the EU Everything But Arms (EBA) scheme, granting duty-free and quota-free access to the EU market for all products except arms. This is the most preferential tariff regime available.
- Landlocked logistics
- Zambia is landlocked. Primary export corridors run to Dar es Salaam (Tanzania) and Durban (South Africa), adding transit time and cost. The Nacala corridor via Mozambique is an alternative route. Logistics costs are a material offset to low labour costs.
- Hichilema reforms
- President Hichilema (elected 2021) has pursued pro-business reforms including mining code revisions, anti-corruption measures, and improved fiscal transparency. The reform trajectory is positive but implementation remains in progress.