Zambia forecasts robust GDP growth and turns to energy transition minerals to drive green finance framework and responsible business strategies. ESG BROADCAST shares key takeaways.
Zambia’s economy maintained steady momentum in 2024, recording a 4% real GDP expansion, despite enduring significant setbacks from drought conditions and intermittent electricity supply. The resilience was largely powered by continued growth in the mining and services sectors, while the underperformance of agriculture—though challenging—had limited macroeconomic spillover due to its relatively low share of GDP.
According to the Zambia Economic Update (ZEU), the country’s near-term economic outlook is broadly optimistic. The World Bank-backed report projects real GDP growth of 5.8% in 2025, accelerating to an average of 6.5% over 2026–27. This rebound is underpinned by base effects from last year’s climatic shocks, more favourable rainfall, and stronger activity in agriculture, mining, and tourism sectors.
The ZEU’s flagship chapter on Energy Transition Minerals (ETMs) presents a critical pathway to sustainable economic diversification. It outlines three strategic pillars for harnessing Zambia’s mineral wealth: scaling ETM production, maximising fiscal revenue, and building downstream value chains. Each pillar is supported by detailed implementation frameworks and capacity-building imperatives.
On the production side, Zambia is advised to undertake comprehensive reforms including geospatial mapping of ETM reserves, securing clean energy access for mining operations, modernising logistics infrastructure, and investing in workforce upskilling. Moreover, the report underscores the necessity of integrating robust environmental and social risk management into the mining lifecycle.
From a fiscal perspective, Zambia is urged to strengthen revenue collection mechanisms tied to ETM extraction and embed transparent public expenditure practices to avoid the pitfalls of commodity-driven macro-volatility. A key recommendation includes channeling ETM revenues into inter-generational development funds to ensure long-term economic sustainability.
The report also highlights Zambia’s comparative advantage in copper and cobalt—minerals crucial for global decarbonisation technologies such as electric vehicle batteries and renewable energy storage. However, realising this potential will require proactive policy alignment to overcome entrenched barriers like poor investment climates, inadequate electricity supply, and high transport costs.
Efforts to build the copper value chain are seen as particularly urgent. These include improving access to finance for processing facilities, streamlining regulatory approval processes, and integrating small and medium enterprises into supply networks.
“Zambia must focus not only on extraction but also on value addition and local beneficiation to maximise economic returns,” the report stresses.
Strategic significance lies in Zambia’s ability to integrate energy transition mineral strategies with broader ESG compliance goals, particularly those concerning climate risk disclosure, green industrialisation, and sustainable resource governance. This alignment will not only position Zambia as a reliable supplier in the global clean energy value chain but also enhance investor confidence and development finance opportunities.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
