Zambia’s Economy Grows 5.2% as Agriculture and ICT Power Q2 Recovery

Zambia’s economy expanded by 5.2 percent in the second quarter of 2025, signaling a robust recovery driven largely by agriculture and the information and communications technology (ICT) sectors, according to the latest economic data.

The growth, which surpasses the performance of the previous quarter, underscores the resilience of key sectors despite broader challenges in the global and domestic economy. Agriculture benefited from favorable weather conditions and higher output in staple crops, while ICT recorded strong gains due to increased digital adoption, mobile money transactions, and expanding internet services.

Mining, traditionally a cornerstone of Zambia’s GDP, experienced slower growth during the quarter due to lower copper prices and disruptions in some mining operations. Meanwhile, manufacturing showed moderate recovery, constrained by power supply issues and high input costs.

Economists note that the strong performance in agriculture and ICT provides a signal for investors and small and medium enterprises (SMEs) seeking growth opportunities. “The diversification of Zambia’s economy beyond mining is critical,” said an economic analyst. “Investors can leverage ICT growth, while SMEs in agribusiness and digital services are well-positioned to ride this momentum.”

Government spending, though slightly below projections, supported the recovery through targeted infrastructure projects and rural development programs. However, persistent fiscal and monetary constraints, including high lending rates and inflationary pressures, remain risks for sustainable growth.

Looking ahead, experts caution that maintaining growth will require addressing energy shortages, improving logistics for agriculture, and sustaining policy support for digital transformation. “The Q2 results are encouraging, but the challenge is translating sectoral growth into broader economic resilience that benefits SMEs, households, and investors alike,” said a financial analyst.

With agriculture and ICT leading the charge, Zambia’s economic outlook appears positive, but a continued focus on diversification and sector-specific investments will be key to sustaining the current growth trajectory.