Zambia urged to invest in mineral processing and value-added industries

The United Nations Economic Commission for Africa (UNECA) has advised Zambia to transition from exporting raw materials to investing in domestic processing and recycling to drive green industrialization. Eunice Kamwendo, UNECA Director for the Sub-Regional Office for Southern Africa, noted that Zambia loses significant revenue by selling minerals, such as gemstones, as rough stones rather than processed products. She highlighted that the gemstone sector generated $79 million in 2025, but higher prices could be achieved through cutting and polishing.

To support this transition, UNECA emphasized the need for increased investment in research and development, noting that Zambia currently spends just over 0.25% of its resources on the sector. Additionally, there is a strategic opportunity for Zambia and the Democratic Republic of Congo to participate in the electric vehicle battery value chain, a market projected to reach $46 trillion by 2050.

Complementing these industrial goals, economic analysis suggests Zambia must address the gap between GDP growth and citizen wealth. While financial inclusion has risen to 69.4%, a large portion of the workforce remains in informal employment. Experts suggest moving toward an inclusive economic model that converts wages and informal earnings into savings and aggregated capital to foster citizen ownership and long-term wealth.