E-Commerce in Zambia

Zambia is a country that is known for its beautiful scenery and countryside, which includes a number of impressive rivers, lakes, waterfalls and wetlands.  Its unique landscape means that tourism is an important part of its economy.

However, the two biggest economic areas remain copper mining and agriculture. The vast copper deposits in the north of Zambia are a crucial source of income, as are its mineral deposits, but so is the agricultural sector.

That is something it has in common with neighbouring Zimbabwe and why both nations view building better trade links to be a key issue. This is a globalised digital world though and that means online commercial business – e-commerce – is beginning to grow in importance within Zambia.

Not all areas of e-commerce are flourishing to the same degree in the country though.

Research into the online commercial part of the shows steady growth over the past six years. This applies to almost all sectors that could be classified under the term ‘e-commerce’.

It means that by the end of this year, the total revenue generated by e-commerce in Zambia is projected to hit $244.60 million US. Furthermore, when looking ahead for the next four years, the predicted rate of year-on-year growth is 12.73%. If that proves correct, the e-commerce sector will be worth $395 million US to the nation’s economy by the end of that period.

The number of people contributing to that growth by purchasing products or services online is also expected to rise, reaching 7.25 million by the end of 2027. Therefore, although it may still fall behind agriculture and copper mining in terms of economic importance, e-commerce is clearly a growing part of the Zambian economy.

So what are the main areas that are driving that growth?

Gambling

Online gambling is a booming market across much of the world and it is legal in Zambia. The country has had a reasonably liberal attitude to betting since the passing of the Lotteries Act in the late 1950s, with the more recent Tourism and Hospitality Act further fuelling that process.

There are some online casinos based within Zambia and players must use these as there is licensing specific to the country. It is growing slowly, as the level of internet penetration rises.

This has reached 28% compared with 6.5% a decade ago. Online casino will increase in popularity as more people gain internet access and discover the games and the that can be so lucrative.

Food

This is among the fastest growing areas of e-commerce in Zambia. An example of a company within this area that has enjoyed rapid success is .

That company provides an online platform for the sale of traditional and healthy Zambian foods using locally sourced produce and manufacturers. Committed to both healthy eating and positive environmental impacts, the company exemplifies the burgeoning online health food sector of 2023.

Aside from the benefits to the environment that this provides, it is also good for the overall wellbeing of the country’s population.

Electronics

Electronics is another e-commerce subsector that is on the rise within Zambia. A number of digitally-based companies offering electronic products and services have emerged in the country over the past few years.

One example of such a company that is enjoying significant success is Kabeene Resources Ltd. This is a business that creates technology enabling the distribution of e-vouchers as well as money-aggregation services. 

It is primarily focused on the financial sector, for example banking providers. Nobolet Technologies is another electronic services e-commerce start-up that is helping to make that a growth area of the market in Zambia.

Social Media

Social media is burgeoning in most parts of the world and, with internet penetration rates in Zambia rising, that country is no exception. The nation has produced its own social media app called sweh that has an enthusiastic consumer base among younger people living in Zambia.

Social media is a definite e-commerce area where a Zambian company has the potential to go global, or at least reach out beyond national borders.

Retail

One of the most dominant forms of e-commerce in most parts of the world is retail. That is not entirely the case for Zambia, but the country is seeing successful online retail outlets emerge.

Woo Commerce and PrestaShop are two examples that have made an impact there. Online retail is based on the desire for speed and convenience and that is applicable to people in Zambia as much as in any other country.

Ultimately all e-commerce, from shopping to gambling, is about convenience and ease and that is the major power that ‘online’ has. People want to get essential services and luxuries with the minimum effort and Zambia is gradually embracing that.