Top 5 Profitable Small Business Ideas in Zambia for 2021
Are you looking to start a business in Zambia but unsure about which industry to venture into? Worry not! This article highlights the top 5 most profitable small business ideas in Zambia that you can consider to kick start your entrepreneurial journey.
1. Agriculture
Agriculture is one of the most lucrative industries in Zambia that presents several investment opportunities for entrepreneurs. The country’s fertile soils, favourable climate, and abundant water resources make it ideal for farming. Some of the profitable agriculture-based small businesses you can explore include poultry farming, dairy farming, horticulture, and fish farming.
According to the Zambia National Farmers’ Union, agriculture contributes significantly to the country’s economy, accounting for around 20% of the Gross Domestic Product (GDP) and providing employment to about 70% of the population. Therefore, investing in agriculture offers significant business prospects for entrepreneurs.
2. Tourism
Zambia is endowed with abundant natural resources such as wildlife, waterfalls, and national parks that offer excellent tourism opportunities. Besides, the country has a rich cultural heritage that attracts a considerable number of tourists annually. Some of the profitable small businesses you can start in the tourism sector include guest houses, tour agencies, and souvenir shops.
According to the World Tourism Organization, Zambia’s tourism sector has been growing steadily, with the industry’s contribution to the country’s GDP increasing from 2.6% in 2010 to 3.6% in 2019. Therefore, investing in the tourism industry presents a viable business opportunity for entrepreneurs in Zambia.
3. Information Technology
The proliferation of the internet in Zambia has created a massive demand for digital services such as web design, digital marketing, and search engine optimization. Therefore, the Information Technology (IT) industry presents enormous opportunities for entrepreneurs to start profitable small businesses.
According to a report published by the Zambia Information and Communications Technology Authority (ZICTA), the country’s internet penetration rate stood at 47% as of December 2020. This presents a vast untapped market for digital services that entrepreneurs can explore.
4. Real Estate
Zambia’s growing population and expanding economy present a huge demand for real estate properties. Therefore, investing in real estate presents a viable business opportunity for entrepreneurs in the country. Some of the profitable small businesses you can venture into in the real estate industry include property management, real estate brokerage, and property development.
According to a report published by JLL, Zambia’s real estate industry has been growing steadily in recent years, with a forecasted growth rate of 5% in 2021. Therefore, investing in the real estate industry can offer enormous business prospects for entrepreneurs in Zambia.
5. Renewable Energy
Zambia has an excellent renewable energy potential, particularly in solar and hydropower. Therefore, investing in the renewable energy sector presents a lucrative business opportunity for entrepreneurs. Some of the profitable small businesses you can venture into in the renewable energy industry include solar panel installation, wind turbine installation, and hydropower consulting.
According to the International Renewable Energy Agency (IRENA), Zambia has a potential of about 2,000 MW of small hydropower and 100 GW of solar potential. Therefore, the renewable energy sector presents a massive investment opportunity for entrepreneurs in Zambia.
Conclusion
In conclusion, starting a small business in Zambia is an excellent way to generate income and build wealth. The top 5 most profitable small business ideas in Zambia for 2021 are agriculture, tourism, information technology, real estate, and renewable energy. Entrepreneurs can explore these industries to capitalize on the vast business prospects they present for wealth creation.
