Forced to start again from zero.

The Rise and Struggles of Business in Zambia
In the busy streets of Lusaka, Ndola, and Kitwe, many Zambian entrepreneurs open their shops and companies with big dreams. The business environment in Zambia has long been a mixture of hope and hardship a place where determination meets constant economic pressure. While some succeed, many find themselves shutting down, forced to start again from zero.

A story often told is that of Chanda, a small-scale business owner who started a hardware shop in Lusaka in 2017. His business grew fast during the first two years, as construction projects around the city created high demand for materials. However, things changed when the local currency, the kwacha, began to lose value against the U.S. dollar. The prices of imported goods like cement and paint skyrocketed, and customers reduced their spending. Chanda tried to adjust, but profit margins became too small to sustain operations. Eventually, he had to close his shop, selling his last stock at a loss.

This story is not unique. Across Zambia, thousands of small and medium enterprises face similar struggles. The main challenges include high inflation, unstable exchange rates, and limited access to affordable loans. Banks often demand high collateral, which most small business owners cannot provide. The cost of electricity and fuel also continues to rise, eating into profits. For manufacturing and processing businesses, frequent power cuts disrupt production, leading to delayed deliveries and unhappy clients.

Another major issue is import dependency. Many Zambian businesses rely on goods and raw materials from other countries like South Africa and China. When the global market fluctuates or transport costs increase, local prices climb too. This makes it hard for local producers to compete or expand.

However, not everything is gloomy. There is a strong entrepreneurial spirit among Zambians, especially the youth. The government has also tried to support local businesses through empowerment programs and tax incentives. Some small enterprises are now turning to digital platforms to sell their products, reducing costs and reaching wider markets.

Yet, the path remains difficult. Many businessmen, like Chanda, still face the painful reality of closing doors after years of effort. Their stories highlight both the strength and the fragility of Zambia’s economy — a reminder that building a business requires more than passion; it demands resilience against the unpredictable tides of the market.