Zambia Private Sector Returns to Growth

The Stanbic Bank Zambia PMI increased to 50.8 in December 2024 from 49.2 in November, marking the end of a 12-month streak of declining business conditions.

This was the highest reading since July 2023, driven by a stronger increase in new orders, alongside fresh expansions in employment and inventory levels.

Business activity fell for the thirteenth month running, but the pace of decline eased to the slowest in 2024 amid more upbeat demand and more stable electricity supplies.

Meanwhile, cost pressures intensified.

Overall input prices rose at a faster pace amid increases in staff and purchase costs.

The rate of charge inflation eased, however, to the slowest since February.

Lastly, Zambian firms reported a decline in optimism in December, with sentiment falling to its lowest level since March.