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BMI View: Zambia's high inflation will restrict consumer spending, with
growth largely supported by spending on essential products. The alcohol industry
will experience a gradual decline in consumption on the back of a high excise
duty, while the food industry continues to be depressed by ongoing drought
conditions and rising food prices. The MGR sector will offer longer-term growth
opportunities as regional food retailers increase their investment on the basis
of economic recovery post 2017.
Latest Updates & Industry Developments
■ Ongoing drought and currency depreciation will lead to higher food prices as
food inflation reached 26.2% in March 2016.
■ The reduction of excise duty on clear beer will encourage investment in
Zambia's beer industry.
■ The top-end consumer will account for a large part of consumer spending, with
the wealth of te richest 20% of population growing by 71.4%.