High inf lation, load-shedding and rising interest rates, coupled with the devaluation of the currency and an ongoing drought, have created a challenging trading environment in Zambia. The economy remains heavily dependent on mining, which contributes approximately 14% of the country's GDP and 70% of its foreign exchange earnings.According to global data and business intelligence platform Statista, the 3PL market in Zambia is projected to grow by 1.09% from 2024 to 2028, resulting in a market volume of $381.40 million by 2028.Shakir Ismail, DSV’s managing director in Zambia, noted that dam levels were around 15%, which is a concern given that Zambia relies heavily on hydroelectricity for its power. The mining sector, a significant provider of employment, is dominated by copper production, which exceeded 760 000 metric tons in 2022 and accounts for 70% of Zambia’s total export earnings.Furthermore, the country’s transport system, important for imports, exports and economic growth, faces challenges caused by poor maintenance of transport infrastructure.Despite the challenges, Ismail remains optimistic and highlights the government's strategy to diversify the economy, the restructuring of government debt, and inward investment. This optimism is bolstered by recent investments, such as the United Arab Emirates' International Resources Holdings (IRH) investing $1.1 billion in Zambia's Mopani Copper Mines in return for 51% ownership of the business.Reutersreported previously that Zambia had sought a new investor for Mopani after the government had used debt to fund the purchase of Mopani’s assets from Glencore in 2021, agreeing to pay the Swiss commodities company $1.5bn. According to a statement from ZCCM Investments Holdings, IRH's $1.1bn investment will be used to fund Mopani's production expansion plan, provide working capital, and pay off part of the $1.5bn debt owed.“Mining is DSV’s largest customer. We work with both the producers of minerals and the many companies that work in the mining ecosystem, providing everything from pumps and valves to other equipment,” said Ismail. “We are also working hard to grow into other verticals.”He anticipates that high-tech – digitisation, ICT, and telecommunications – may grow strongly as the government looks to accelerate its interest in the sector. Additionally, he foresees growth in education and healthcare, areas in which DSV in South Africa has a strong track record.“Our healthcare service is GDP certified and this is critical for pharmaceutical manufacturers and funders in Europe and the USA – and equally important for patients in Zambia who get the integrity-guaranteed antiretroviral medicines they need to keep them healthy,” he said.According to Ismail, DSV’s growth strategy in other verticals, including automotive and agriculture, would ultimately align with the country’s plan to reduce its dependence on minerals.“Economic growth needs a robust and efficient transport system, and this is important for landlocked Zambia itself, as well as realising the full potential of providing shorter paths to ports and markets around Africa for other countries.” Quoting zambiainvest.com/transport, Ismail said the government was looking for private-sector investment in a number of identified air, rail and road network projects, all of which would help grow industries outside of mining.“DSV recognises its role in connecting customers around the country and continent is critical to growth. We work off one system, and so no matter where in the world we are, our seamless f low of information throughout the supply chain ensures efficiency, resilience and reliability. And, myDSV, PO Management and our tracking loggers are significant differentiators for DSV in the Zambian and African market,” he said.
