Is Zambia’s development too Lusaka-centred?

According to the official government data, Zambia’s […]

According to the official government data, Zambia’s active economic establishments in 2025 were recorded at 485,034, which is an increase of about 418,291 compared with just 66,743 establishments recorded in 2010.

A check on the report by the Zambian Business Times-ZBT revealed that the census, which mapped establishments across all 1,858 wards, indicates that Lusaka emerged as the province with the largest share, accounting for 143,125 establishments (29.5%) of the national total, followed by Copperbelt with 91,960 establishments (19.0%).

 The report further revealed that Southern Province ranked third with 45,593 establishments (9.4%), while Central Province had 40,743 establishments (8.4%) and Eastern Province recorded 38,318 establishments (7.9%).

Meanwhile, North-Western Province had 30,073 establishments, representing 6.2%, followed by Northern Province with 27,416 (5.7%) and Luapula with 24,668 (5.1%), while Western Province had 24,069 (5.0%), and Muchinga Province ranked lowest, with 19,462 establishments, accounting for 4.0% of Zambia’s total.

 The census also shows that Zambia’s establishment base is overwhelmingly made up of micro-enterprises, with 450,481 establishments, representing 93% of the 485,034 total, falling into the micro-enterprise category with an annual turnover of K250,000 or less. Only 23,684 establishments (5%) were classified as small enterprises, 7,527 (2%) as medium enterprises, 2,147 (1%) as large enterprises, and 1,195 as very large or corporate establishments, highlighting the dominance of small-scale business activity.

 The report indicates that in 2025, 60,026 were recorded as formal establishments and 411,008 as informal establishments. However, in an interview with Zambian Business Times-ZBT, economic expert Salwindi Notulu noted that the concentration of economic establishments in Lusaka should be viewed as a weakness arising from longterm planning failures rather than of economic strength simply a sign.

“This is a sign of systematic failure in planning the nation’s trajectory for many years in advance because it is reflected not only in economic activities but in all the other spheres, so I would regard the concentration as a weakness,” said Notulu.

He explained that Lusaka’s large population naturally attracts businesses because it provides a ready market for inputs and outputs, creating conditions that can encourage firms to concentrate in the capital.

“The large population acts as a stimulus for business because there is availability of a market for both inputs and output, and that naturally makes Lusaka attractive for businesses,” said Notulu.

He told ZBT that excessive concentration can, however, deepen inequality and put pressure on infrastructure, while provinces could unlock more balanced growth if investments were based on their comparative advantages and supported by appropriate economic zones.

“The country needs to create multi-purpose facility economic zones based on the relative comparative advantage of each province, because Western Province shares a long border with Angola with huge potential for food exports, while Northern Zambia has relatively good rainfall for increased agricultural production,” said Notulu.

Article by Philip Sinkala