Zambia’s Private Sector Expands at Fastest Pace Since May 2018
Zambia’s private sector activity recorded robust growth in September 2025, with the Purchasing Managers’ Index (PMI) reaching 52.2 points, marking the fastest expansion drive since May 2018.
The growth was mainly driven by stronger output, rising new orders and increased input purchases, as firms capitalized on improved exchange rates and shorter supplier lead times.
This has further allowed businesses to build inventories at the fastest rate since 2017, signaling confidence in future demand.
Employment also expanded rapidly during the calendar month, helping to reduce backlogs of most unfinished orders, while rising wages and input costs contributed to higher output prices.
Despite the strong current activity, business confidence eased to an eight-month low, reflecting cautious optimism among firms about the economic outlook. Nevertheless, sentiment remains broadly positive across sectors.
The September PMI highlights the resilience of Zambia’s private sector, showing that companies are actively investing in production and employment, while navigating cost pressures and market uncertainties.
