Economic Growth Keeps Truck Wheels Turning

Freight volumes are growing, along with gross domestic product GDP growth of around 4 in 2024. The Zambian economy demonstrated resilience in 2024, despite a severe drought and global headwinds, stated Mercedes Vera Martin, who led an International Monetary Fund IMF review team which visited the country in late April and early May this year. Real GDP growth is estimated at 4 in 2024 driven by stronger- than-projected mining and non-mining activity, especially in ICT, financial services and construction, as well as a less severe contraction in agriculture than initially envisaged. Growth momentum is expected to continue in 2025, with real GDP growth projected at 5.8. Economic activity will be supported by a rebound in agricultural output, increased copper production, and a gradual recovery in electricity generation, although electricity shortages and reliance on energy imports are expected to persist, she added. In its July 2025 Zambian economic update, the World Bank warns that significant risks persist due to lower global growth, emerging uncertainties in trade policies, and frequent climatic events. Still, over the medium term, growth is expected to benefit from broad-based momentum across various sectors, with the mining sector presenting a distinct opportunity to leverage economic transformation to benefit all Zambians. The bank is not optimistic that the authorities are doing enough to diversify the economy, which would increase the demand for non- mining logistics. Commercial agriculture presents significant potential but faces obstacles such as distortive and poorly implemented policies, increasing climate hazards, resource degradation, and overreliance on maize. Firm productivity is hampered by limited access to finance, insufficient capacities and skills, informality, and inadequate access to electricity. Minimal and subpar public investments limit connectivity and growth. These extensive challenges impede the development of promising tourism, manufacturing, and advanced services, limiting economic transformation and inclusive growth, it adds. Zambia is urged by the reports authors to take advantage of the shift away from fossil fuels, pointing out that the country has vast reserves of copper, as well as nickel and manganese all of which are used in the manufacture of electric batteries and other components. The World Bank has, at the request of the Zambian government, developed an energy transition mineral roadmap for the country. Investment in logistics infrastructure is recognised as one of the critical success factors for positioning Zambia as an energy transition manufacturing hub. Global Positioning System GPS data collected from trucks in June 2024 show that all the transport corridors are inefficient in terms of border crossings and road quality in both Zambia and its neighbours, the roadmap points out. ER