Zambia’s Digital Economy: In-Depth Analysis

Geographic and Demographic Context of Zambia

Zambia is a landlocked country in Southern Africa, centrally positioned and sharing borders with eight countries (including Tanzania, Malawi, Mozambique, Zimbabwe, Botswana, Namibia, Angola, and the Democratic Republic of Congo). Its land area of about 752,000 square kilometers makes it one of the larger countries in Africa. Being landlocked, Zambia relies on overland fiber links through its neighbors for international internet connectivity, which has driven the development of cross-border infrastructure to submarine cables on the African coasts.

Demographically, Zambia’s population was estimated at around 21 million people in 2024, with a high annual growth rate of approximately 2.8%. Notably, it is one of the world’s youngest countries – the median age is only about 18 years. This youthful population is a double-edged sword for the digital economy: on one hand, young people tend to be tech-savvy and quick to adopt new digital services; on the other hand, it puts pressure on the country to rapidly expand education, job opportunities, and digital infrastructure to meet the needs of a booming youth demographic. About 46–47% of Zambians live in urban areas (with the remainder in rural communities), and the urbanization rate has been gradually rising. Major urban centers like Lusaka (the capital) and the Copperbelt region (Ndola, Kitwe, etc.) are hubs of economic activity and have better internet infrastructure and higher adoption of digital services compared to rural areas. The “Line of Rail” corridor – stretching from Lusaka through the Copperbelt – is particularly well-served in terms of connectivity and hosts the bulk of the country’s internet users, whereas remote rural villages still face challenges in access.

Culturally, English is the official language and widely used in business and online content, which enables Zambian digital platforms to connect with global information networks easily. Local languages (such as Bemba, Nyanja, Tonga, Lozi, and others) are also prevalent and often used in social media and local digital content, meaning successful digital marketing often needs to be linguistically tailored. The geographic setting and demographic makeup of Zambia set the stage for its digital economy: a youthful, growing population that is increasingly urban and connected, but also a nation with significant rural areas that require innovative solutions (like wireless broadband or satellite internet) to bridge the digital divide.

Economic Overview and the Rise of the Digital Sector

Zambia’s economy is classified as lower-middle income, with a nominal GDP of roughly $28–30 billion (2023) and a GDP per capita around $1,300–1,400. Historically, the economy has been anchored by copper mining – Zambia is one of Africa’s largest copper producers – alongside agriculture (maize, tobacco, sugar), and services. Over the past few years, GDP growth has been reasonably strong (around 4–5% in 2023, following a recovery from the pandemic shocks), but the country has also faced fiscal challenges, including high public debt and inflation bouts. This economic backdrop has spurred the government to diversify the economy and embrace new growth areas, with digital innovation seen as a key avenue to boost productivity and create jobs outside the traditional mining sector.

In this context, the digital and internet-driven sectors are gaining prominence. While still a relatively small portion of GDP, the ICT sector has been expanding faster than many traditional sectors. In 2023, information and communications technology (ICT) contributed an estimated 2.5–3% of GDP, up from around 2% just a couple of years prior – a notable increase that reflects growing investments in telecom networks, digital services, and fintech. The Zambian government has signaled strong support for the digital economy: initiatives like the Smart Zambia program aim to digitize government services and promote e-governance, and the creation of a dedicated Ministry of Technology and Science underscores the policy focus on tech-led development. Moreover, Zambia has updated its regulatory frameworks to nurture the digital ecosystem – for example, a new Data Protection Act was established in 2023, and an Electronic Transactions and Cybersecurity Act is in place to govern online business and protect consumers, giving investors more confidence in the rule of law for digital commerce.

One of the most significant economic shifts is the rapid adoption of digital financial services. This has implications across the economy: more than half of adult Zambians now use mobile money or bank apps to transact, enabling greater financial inclusion. The surge in digital payments is reducing transaction costs and integrating informal markets into the formal economy. In turn, this supports small business growth and more efficient markets. Another growth area is ICT infrastructure investment: telecom companies and private tech firms are pouring money into expanding network capacity (e.g. rolling out fiber-optic cables and 4G/5G towers). These investments not only create construction and tech jobs but also lay the groundwork for new digital businesses to emerge (from call centers to e-commerce and cloud services).

Zambia’s economic prospects are increasingly tied to its digital trajectory. For instance, the country’s aspiration to become a regional technology and commerce hub is evident in its Vision 2030 and current development plans, which emphasize digital transformation as a catalyst for economic diversification. The government, in partnership with international organizations, has been working to improve digital skills training, encourage tech entrepreneurship, and attract foreign investment into ICT. With a young, entrepreneurial population, Zambia is seeing more tech startups and innovative SMEs that are leveraging the internet to reach customers and solve local problems (we will discuss these startups in detail later).

For investors and businesses evaluating Zambia, this economic overview indicates a market in transition: the fundamentals (like political stability after a peaceful power transfer in 2021, and improving economic management under reforms backed by the IMF and World Bank) are creating a more favorable environment for investment. While traditional sectors like mining remain important, the digital economy represents a dynamic frontier for growth. Companies operating in Zambia are increasingly blending the old and the new – for example, agriculture companies are using digital platforms to coordinate with farmers, and mining firms are using data analytics for operations – all pointing to a broader digitization across the economy. In summary, Zambia’s economy is leveraging digital tools to overcome geographic constraints and inefficiencies, aiming to leapfrog into a more diversified, resilient growth path in the coming years.

Internet Access and Infrastructure in Zambia

Internet Penetration: Zambia has made significant strides in expanding internet access, but there is a contrast between official subscription figures and actual usage by individuals. As of early 2024, there were an estimated 6.5 million internet users, about 31% of the population. By January 2025, this had grown to roughly 7.1 million users, pushing the penetration rate to 33% of the population. In other words, about one in every three Zambians is an active internet user. These figures (from independent digital surveys) measure unique individuals using the internet. Interestingly, the national regulator – the Zambia Information and Communications Technology Authority (ZICTA) – reports a much higher penetration rate of around 64% as of late 2023. The disparity is explained by methodology: ZICTA’s number reflects internet subscriptions per 100 inhabitants, which counts many people owning multiple SIM cards or data plans. In fact, Zambia had about 12.6 million internet subscriptions by the end of 2023 (including mobile data packages), which indeed is roughly 60+% of the population. The bottom line is that a solid third of citizens are online in some capacity, and usage is rising steadily each year. Internet user growth has been in the high single digits percentage-wise annually, and this trend is expected to continue as network coverage improves and smartphones become more affordable.

Mobile vs. Fixed Broadband: Internet access in Zambia is overwhelmingly mobile-centric. Well over 99% of internet users rely on mobile broadband networks (3G/4G/5G via smartphones, tablets, or USB modems) as their primary means of connecting. Fixed broadband – such as home fiber, DSL, or cable internet – is available only to a tiny fraction of the population, mostly businesses and a few urban households. There were only about 99,000 fixed-line internet subscriptions in the country in 2023, which is roughly 0.5% of the population (i.e., about one in two hundred people has a fixed broadband connection). This imbalance is common in Sub-Saharan Africa, but in Zambia it’s especially pronounced: mobile networks have been the main driver of connectivity because deploying mobile towers is faster and cheaper than extending fixed lines across vast or sparsely populated areas.

All three mobile network operators – MTN Zambia, Airtel Zambia, and the state-owned Zamtel – offer mobile internet services and together cover the majority of the population with at least 3G service. 4G LTE coverage has expanded rapidly over the past five years and is now available in all major towns and many secondary centers (estimated around 90% of the population covered, with plans to reach near-universal coverage soon). In a milestone development, Zambia joined the ranks of countries with 5G technology: MTN launched the country’s first 5G network in late 2022, and Airtel followed in mid-2023 with its own 5G rollout in parts of Lusaka and other key cities. These 5G deployments are still limited in scale and mostly targeting high-demand urban areas and business customers, but they signal the country’s commitment to staying on the cutting edge of mobile tech. For the average Zambian internet user in 2025, a 4G smartphone with mobile data is the standard access method, while older 2G/3G phones are gradually phasing out as the cost of entry-level smartphones has come down.

Internet Backbone and International Connectivity: Despite being landlocked, Zambia has significantly improved its internet backbone infrastructure. All ten provinces are now interconnected by a fiber-optic backbone network, meaning provincial capitals and many districts have high-capacity links for communications. This has been achieved through investments by both the government (often through Zamtel and public projects) and private telecom companies (like Liquid Intelligent Technologies and CEC Liquid, which have built extensive fiber routes). Zambia’s internal fiber network connects at multiple points to undersea internet cables via neighboring countries. For example, the country leverages links through Tanzania to the Eastern Africa Submarine Cable System (EASSy) and SEACOM cables in the Indian Ocean, and through South Africa (or Namibia) to the SAT-3/WACS cables in the Atlantic Ocean. There are also fiber routes via Mozambique and Zimbabwe ensuring redundancy. In fact, new routes are continually being added: a recent project connected Zambia directly with Angola’s telecom network, providing an additional westward path to undersea cables. This redundancy is crucial for resilience – it reduces the chance of nationwide outages when a single international route has issues. In 2023, Zambia also became one of the first African markets for Starlink, SpaceX’s satellite internet service. Starlink officially launched in Zambia in October 2023, offering high-speed, low-latency broadband via satellite across the country, even in remote areas that lack cell towers. While the cost of Starlink is relatively high for individual consumers, it presents a game-changer for businesses, rural schools, and connectivity projects in off-grid regions by providing an alternative to terrestrial networks.

Bandwidth and Quality: With these infrastructure improvements, the quality of internet connectivity has been on an upswing. According to speed test data, as of early 2024 Zambia’s median mobile download speed was around 19–20 Mbps, and median fixed broadband download speed about 21–22 Mbps. Upload speeds were lower (around 7–8 Mbps on mobile, 5–6 Mbps on fixed). These speeds, while not lightning fast by global standards, marked a significant improvement over previous years – for instance, mobile speeds have roughly doubled since 2018. Urban users with 4G (or those few with fiber-to-home) enjoy the upper end of these speeds, whereas rural users on 3G or older networks see lower speeds. The introduction of 5G is expected to eventually push urban speeds much higher and enable data-intensive applications (like advanced streaming, IoT, and cloud services) as coverage expands.

One area Zambia shines in is affordability of mobile data. The country has met the UN Broadband Commission’s affordability target (1GB of data for under 2% of monthly income). In practice, 1GB data bundles often cost just around 1% of the average monthly income for an urban user, making Zambia one of the more affordable countries in Africa for internet access. A competitive telecom market (MTN and Airtel vie closely for subscribers, with Zamtel also pushing to gain market share) has led to frequent promotions and falling data prices. However, for the large segment of the population with very low incomes (particularly in rural areas), even these costs can be a barrier – many lower-income users top up only small amounts of data occasionally or rely on free basics (text-only access) when available. On the fixed broadband side, costs remain high; few households can afford a dedicated home internet line, which is why uptake is so limited outside of corporate users.

Ongoing Challenges and Improvements: The Zambian government and ZICTA have been actively addressing quality and coverage issues. In late 2022, the government called for an ICT sector “reboot” to improve service reliability, and ZICTA did not shy away from regulatory action – for example, it fined a major operator for network outages and demanded better service continuity. Such steps press operators to reinvest in network upgrades and improve coverage in poorly served zones. Electrification is still a constraint for the telecom network in some rural parts (as powering cell towers can be challenging in off-grid areas), so operators are increasingly adopting solar-powered towers to extend coverage sustainably. There are also Universal Access Fund projects to extend connectivity to underserved communities.

In summary, Zambia’s internet infrastructure has evolved from a point of very limited access a decade ago to a situation now where the majority of the population (over 90%) lives under a mobile broadband signal, and one-third are active internet users. The reliance on mobile networks defines the character of Zambia’s internet: it is wireless, youthful, and growing quickly. For businesses and investors, the implications are clear – any digital service or platform in Zambia must be optimized for mobile use (both in terms of technology and price point), and there is a huge opportunity in coming years as the next third of the population comes online. The continuing improvements in infrastructure (national fiber, international bandwidth, 5G, and satellite options) are reducing the historical bottlenecks and opening the door for a more robust digital economy.

The “.zm” Domain and Local Online Identity

Every country has a country-code top-level domain (ccTLD), and for Zambia the domain is .zm (with common second-level domains like .co.zm for commercial entities, .org.zm for organizations, .edu.zm for educational institutions, etc.). The .zm domain has been available since the mid-1990s and is administered by ZICTA. In theory, a country’s TLD is a key part of its digital identity and can encourage local content hosting. In practice, Zambia’s .zm domain adoption remains modest.

Relatively few websites use the .zm domain compared to generic domains like .com or .org. As of 2025, it’s estimated that only on the order of a few thousand .zm domain names are registered in total (roughly 6,000–7,000 domains across all categories). This is a small number considering the size of the population and the number of businesses in the country. Several factors explain this low uptake:

• Historical Preference for .com: Many Zambian companies and entrepreneurs, when setting up an online presence, default to a .com domain for its global recognition. For example, a Zambian startup might choose mybusiness.com instead of mybusiness.co.zm to appear more internationally accessible and to target a broader audience. This trend was common in the early days of the Zambian internet and has carried forward.

• Costs and Administrative Hurdles: Obtaining a .zm domain has sometimes been costlier or more bureaucratic than getting a generic top-level domain. Domain registrars have made it very easy to grab a .com or .org online with a few clicks and a credit card. By contrast, .zm domains historically required documentation of local presence and working through local providers. Some reports indicate that foreign companies trying to register .zm have found it expensive or cumbersome, which reduces the incentive to use .zm unless one is clearly focusing on the Zambian market.

• Reliance on Social Media Over Websites: A lot of small Zambian businesses skip having a dedicated website altogether, thereby bypassing the need for any domain name. Instead, they rely on platforms like Facebook pages, Instagram profiles, or online marketplaces to represent themselves on the internet. This social-media-first approach, which we’ll discuss later, also contributes to fewer domain registrations overall.

That said, the .zm domain is still important and used by key institutions. The Zambian government and public sector mostly use .gov.zm for official sites (for instance, the government portal, ministry websites, and ZICTA’s own site are under .zm addresses). Universities and colleges use .edu.zm, and many non-profits or tech community organizations in Zambia use .org.zm. For local content portals and news sites, you will also find some using .co.zm or .zm. Having an email or website on .zm immediately signals local authenticity, which can be an advantage when targeting Zambian internet users. Search engines also often prioritize country-domain results for local search queries, so a .zm website might rank higher for someone searching from Zambia for certain keywords (this is a potential SEO benefit for businesses focused on local customers).

In recent years, there have been efforts to simplify and promote the .zm domain registration. ZICTA periodically runs awareness campaigns about owning local domains, emphasizing the pride and identity aspect of .zm. Additionally, the process has been modernized to some extent, with accredited registrars now able to sell .zm domains online. The pricing has become more competitive to encourage adoption by small businesses. Tech community events sometimes include workshops on setting up websites with .zm domains, targeting entrepreneurs who want a formal web presence.

Even so, the dominance of global platforms means that .zm will likely continue to grow slowly. Many Zambian startups prefer to keep their primary domain as .com and perhaps just redirect a .zm domain to the same site if they register it at all. From an investor’s standpoint, this reflects a common pattern in emerging markets: local domain usage lags behind because businesses aim for broader reach and easier setup. However, as the digital ecosystem matures, one might expect more local services (like e-commerce or government services) to champion the .zm TLD. In the long term, a stronger uptake of .zm could also keep more internet traffic and hosting local, which has benefits for latency and data sovereignty.

In conclusion, .zm is part of Zambia’s digital infrastructure but is underutilized. Companies evaluating their online strategy in Zambia should be aware that while a .zm address can confer local trust, it’s not a necessity for reaching Zambian consumers – many are equally or more likely to engage with a Facebook page or a .com website. The value of .zm may increase as internet use deepens and local search and e-commerce ecosystems grow, but for now it remains a somewhat niche choice for those building an online presence in the country.

Popular Online Platforms and Digital Services in Zambia

The landscape of online platforms in Zambia is a mix of global giants (especially in social media) and emerging local services (notably in e-commerce and entertainment). Given the mobile-first nature of internet usage in the country, platforms that are optimized for mobile and use little bandwidth tend to be the most popular. Below we delve into the most widely used social networks, e-commerce sites, and other digital services shaping the Zambian online experience.

Social Media Usage and Trends

Facebook: By far the most popular social media platform in Zambia is Facebook. With approximately 3.7 million Zambian Facebook users as of early 2025 (roughly 17% of the population), Facebook serves as the de facto online hub for many. It’s used not only for keeping up with friends and family, but also as a source of news, a marketplace for buying and selling goods, and a marketing platform for businesses. Many local companies maintain active Facebook pages to engage customers. Facebook’s appeal lies in its wide reach and versatility; even users with basic smartphones can access it via the lightweight Facebook Lite app or free mode (some mobile operators allow limited free Facebook usage, which further boosts its use). Notably, the number of Facebook users corresponds closely with the total social media user count in Zambia, indicating that most people who are on any social media in Zambia are on Facebook specifically. About half of all internet users in Zambia are on Facebook, illustrating its penetration among the online population.

WhatsApp: Although exact user numbers are unavailable (since WhatsApp doesn’t publicly report country user counts and it has no advertising platform to measure reach), WhatsApp is extremely pervasive in Zambia. As in many African countries, WhatsApp is the primary messaging app and is used for one-to-one and group communication. It effectively replaced SMS for most smartphone owners. WhatsApp’s influence on Zambian digital life is huge – families have group chats, community organizations coordinate activities on WhatsApp, and increasingly, businesses use WhatsApp Business accounts to communicate with customers (for inquiries, orders, and support). One major reason for WhatsApp’s ubiquity is cost and convenience: it is bundled in affordable social bundles by telcos and it handles poor connections well. Moreover, the encryption and lack of algorithmic feed make it a trusted channel for direct communication. While not a “platform” in the sense of public content, it’s worth noting that WhatsApp often serves as a distribution channel for viral content (funny videos, memes, or even news links circulate in WhatsApp groups widely).

YouTube and Video Platforms: YouTube is popular especially among younger users and urban netizens who have the bandwidth to stream video. There aren’t official user counts for YouTube in Zambia, but one proxy is that Google’s advertising tools indicate a reach of a few million for YouTube ads, suggesting that a significant portion of internet users do consume YouTube content. Zambians use YouTube to watch music videos (local Zambian music as well as international hits), comedy skits, religious sermons, and how-to guides. A budding community of Zambian YouTubers and content creators is emerging, producing local language vlogs, tech reviews, and cultural content. However, data costs have kept YouTube from being as universally used as Facebook – many people will watch videos sparingly or at lower resolutions. That said, as 4G becomes more prevalent and packages become cheaper, video consumption is rising. Apart from YouTube, some video content is also shared on Facebook directly, and TikTok (discussed below) is making inroads.

Instagram: Instagram has a smaller but growing user base in Zambia, with around 450,000 users in early 2024 (just over 2% of the population). It’s particularly popular with urban youth, influencers, and niche communities (such as fashion, food, and travel enthusiasts). Instagram’s visual nature suits the culturally rich environment – you can find Zambian Instagram accounts showcasing everything from tourist attractions like Victoria Falls, to local fashion boutiques, to daily life in Lusaka. Many Zambian influencers use Instagram to build their personal brands and often cross-post content to Facebook for broader reach. Businesses in sectors like cosmetics, decor, and apparel use Instagram to display products. However, because Instagram usage is largely limited to those with consistent internet and newer smartphones, its audience skews toward the affluent and city-based segment. It’s seen more as a trendsetting platform rather than mass-market.

TikTok: TikTok usage in Zambia is on the rise, especially among teenagers and young adults. While hard numbers are not readily available, anecdotal evidence and the proliferation of TikTok videos on other platforms indicate that TikTok has gained a foothold. It offers an outlet for creative expression – one can find Zambian TikTok content featuring local comedy, dance challenges with local music, and everyday life hacks. TikTok’s algorithm has enabled some Zambian creators to gain substantial followings. The platform’s appeal is its short-form entertainment, which resonates with the youthful population. However, similar to YouTube, continuous use of TikTok requires heavy data usage, so it is mainly popular among those who can afford larger data plans or have Wi-Fi access (like university students and young professionals). Still, TikTok is likely to be a key platform to watch as internet access expands; it could potentially rival Instagram in the youth demographic.

Twitter (X): Twitter – now rebranded as “X” – remains a niche platform in Zambia, with an estimated user base of only about 140,000–150,000 users (roughly 0.7% of the population). The Twitter crowd in Zambia tends to include journalists, politicians, tech-savvy professionals, and activists. It’s often used for public discourse on news, politics, and social issues. In fact, Zambian Twitter was quite influential around the 2021 elections and continues to host vibrant conversations on governance and economic matters. The limited user base means Twitter is not a primary channel for consumer marketing (compared to Facebook), but it is important for shaping elite opinion and for real-time updates. Companies that do engage on Twitter are usually telecoms, banks, or media houses that need a public communication channel. The platform’s use may grow slowly as more internet users diversify their social media usage, but it will likely remain secondary to Facebook and WhatsApp for the general populace.

LinkedIn: With roughly 800,000 registered members on LinkedIn in Zambia (about 3–4% of the population), LinkedIn is relevant in the professional and business community. It’s used for networking, job seeking, and sharing industry news. The user base includes college-educated individuals, corporate employees, and entrepreneurs. In recent years, LinkedIn’s popularity has grown as more Zambians seek global job opportunities or partnerships, and use the platform to showcase their professional accomplishments. For investors or B2B companies, LinkedIn can be a useful platform to reach decision-makers in Zambia’s industries. Recruiters also utilize it to find talent, reflecting the platform’s integration into the Zambian job market.

In summary, social media in Zambia is dominated by Facebook and WhatsApp, which have become nearly ubiquitous among internet users, while other platforms like Instagram, TikTok, Twitter, and LinkedIn serve more segmented audiences. This hierarchy is important for any digital strategy: a mass consumer campaign will almost certainly involve Facebook and WhatsApp as primary channels, whereas targeting youth might involve Instagram/TikTok, and targeting business professionals would leverage LinkedIn or Twitter. The social media scene is vibrant, often mobile-driven (with lots of content creation happening on phones), and it plays a central role in digital content consumption and communication in Zambia.

E-Commerce and Online Shopping Platforms

E-commerce in Zambia is a sector with significant growth potential, though it is still in relatively early stages compared to more developed markets. A combination of increasing internet access, the rise of mobile money, and changing consumer preferences is laying the groundwork for an online shopping boom. As of 2024, only a small percentage of retail sales occur online, but the trajectory is upward. Here are the most notable platforms and trends in Zambian e-commerce:

• Jumia Zambia: Jumia, often dubbed “the Amazon of Africa,” operates in Zambia and is one of the leading e-commerce marketplaces in the country. Through Jumia’s website and app, Zambian shoppers can buy a wide array of products – electronics, fashion, home appliances, groceries, and more. Jumia leverages its brand recognition and logistics network to serve Zambian cities. It often runs big sales (Black Friday deals, etc.) that attract considerable attention. Jumia’s presence has been crucial in introducing many Zambians to the idea of ordering goods online. It offers delivery to home or pick-up stations mainly in Lusaka and the Copperbelt, and uses mobile money alongside cash-on-delivery as payment methods. For many global brands or large local distributors, listing on Jumia is a way to reach online customers without building their own e-commerce site from scratch.

• Local Online Marketplaces: In addition to Jumia, there are indigenous Zambian online marketplaces and shopping sites emerging:

  • ShopZed / Zedmart (Hypothetical example): Some local companies have launched multi-category online stores targeting the Zambian market. These often focus on specific niches like electronics or fashion. For instance, a site might specialize in selling phones and IT gadgets, catering to tech enthusiasts who prefer shopping online for better deals.

  • Tigmoo: Tigmoo is an online shopping platform that has operated in Zambia, focusing on items like electronics and appliances, with promises of delivery services.

  • Radian Online: Radian, a known electronics and hardware retailer, launched an online storefront (radianonline.co.zm) for selling its products with delivery, indicating that established brick-and-mortar retailers are extending into e-commerce.

  • Ubuy and international delivery services: Platforms like Ubuy (mentioned as an international online shopping store targeting Zambia) allow Zambians to order products from overseas online retailers, which then get delivered to Zambia. These cater to the demand for brands or items not available locally.

  • Nilandi, Zambian Art and Crafts marketplaces, etc.: There are also smaller platforms that cater to specific segments, such as handcrafted goods, where local artisans sell via online catalogs.

• Classifieds and Peer-to-Peer Commerce: Before formal e-commerce took off, Zambians have engaged in a lot of buying and selling through online classified listings and social media. Platforms like Facebook Marketplace and groups have a huge volume of informal trade – people selling used phones, cars, fashion items, etc. Earlier, OLX (later acquired by Jiji in some countries) had a presence where users posted classifieds. While OLX Zambia is no longer active, the concept lives on through Facebook and specialized WhatsApp groups. Essentially, social networks double as e-commerce platforms informally. For example, there are Facebook groups where small entrepreneurs (boutique owners, bakers, tailors) advertise their products and customers reach out via comments or direct messages to purchase. This form of social commerce is extremely popular as it requires no special app and leverages existing communities.

• Payments and Delivery: A key factor for e-commerce growth has been the availability of mobile payment systems. With mobile money widely used, customers can pay for online purchases electronically even if they don’t have bank cards. Most e-commerce sites in Zambia accept mobile money (like MTN Mobile Money or Airtel Money) alongside options like bank deposits, debit cards, or cash on delivery. Cash on delivery remains an important option to build trust – many first-time online buyers prefer to pay when the item arrives. Logistics is another crucial piece: Zambia’s address system is not as formalized in some areas, so e-commerce companies often use a combination of door delivery in well-addressed neighborhoods and pickup points in others. Local courier services and startups have sprung up to fill the delivery need in urban areas. The fact that POS (card swipe) transactions have plateaued while mobile money is surging suggests that e-commerce providers will continue to emphasize mobile wallet payments integrated with delivery.

• Consumer Behavior: Zambian consumers are gradually warming up to online shopping, especially the younger, urban demographic. Popular categories for e-commerce include electronics (people looking for deals on phones, accessories, and appliances), fashion and cosmetics (especially products not easily found in local stores), and increasingly groceries (some platforms offer supermarket goods with delivery, which became more popular during the COVID-19 lockdown period and has remained as a niche service for busy urbanites). Price sensitivity is high – consumers often compare prices between online and offline, and among different e-commerce sites. One driver of e-commerce has been the ability to access products from abroad or from distant parts of Zambia without travel. For example, a customer in a smaller town can order a specialty item from Lusaka via online platforms.

• Challenges and Outlook: E-commerce in Zambia faces challenges such as limited internet access outside cities (which caps the potential pool of online shoppers), trust issues (fear of scams or poor product quality, which e-commerce companies try to mitigate through return policies and pay-on-delivery), and logistical costs (deliveries can be slow or costly for remote areas). Despite these, the trend is clearly towards growth. Year-on-year increases in online transactions are reported by major platforms. As smartphone penetration increases and more of the population becomes comfortable with digital interfaces, e-commerce usage is expected to climb. Additionally, big global players eyeing Africa’s e-commerce might invest more in Zambia given its stable environment – for instance, it wouldn’t be surprising to see expansion of grocery delivery apps or ride-hailing apps adding courier services.

For investors, the relatively untapped nature of Zambia’s e-commerce market means there is room for new entrants or for existing players to expand. The success of mobile money lays a strong foundation for digital payments in e-commerce. Moreover, the government has not heavily regulated e-commerce yet, which means the sector is open for innovation. In summary, the most popular online platforms for shopping are currently led by Jumia and social-media-driven commerce, but we can expect a more diverse e-commerce ecosystem to form in the coming years, with local entrepreneurs and possibly regional platforms stepping in to address the needs of Zambian shoppers.

Digital Media, Entertainment, and Services

Beyond social media and shopping, Zambians engage with a variety of online platforms for media, entertainment, and everyday services:

• News and Information Portals: Online news consumption is high among internet users. Traditional media outlets like the Zambia Daily Mail, Times of Zambia, and Zambian Watchdog have websites and Facebook pages where they publish news. Independent online-only news sites and blogs (for example, Lusaka Times, Mwebantu, etc.) attract a large readership on social channels by breaking news and local stories. Social media often acts as a news aggregator, with links to these sites widely shared. The 2023 enactment of the Access to Information law might spur even more digital content creation by journalists and citizen reporters, making online news even more vital.

• Video-on-Demand and Streaming: Netflix is available in Zambia and has gained a following among the upper-middle class and expatriate community who have reliable broadband. Additionally, MultiChoice (which operates DStv satellite TV) has been promoting Showmax, its streaming service, in the country. The numbers are not huge due to internet limitations, but the trend is toward more streaming especially as 4G/5G expands. YouTube, as mentioned, is a major source of on-demand video content for those who don’t have formal subscriptions. There’s also some interest in local streaming platforms or YouTube channels producing Zambian dramas and web series, indicating a potential market for homegrown digital entertainment if bandwidth allows.

• Music Streaming: Zambians love music, and while radio remains important, digital music platforms are catching on. Apps like Boomplay (which is strong in Africa), Spotify (now available in Zambia since 2021), and Apple Music have users in the country. Boomplay in particular has a presence because it often comes pre-installed on Tecno and Infinix smartphones (popular Chinese brands in Africa). These platforms give Zambian artists a chance to reach audiences online – indeed, many Zambian musicians actively promote their work on social media and encourage streaming and downloads on these platforms. The availability of mobile money has also enabled purchase of music or subscription to services for those without international cards.

• Financial Services Apps: Banks and fintechs have rolled out digital apps that are widely used. For example, almost all major banks in Zambia (Stanbic, Zanaco, Absa, FNB, etc.) have mobile banking apps or USSD services enabling customers to check balances, transfer funds, pay bills, and buy mobile airtime via their phones. These apps have effectively digitized a lot of routine banking. Separately, standalone fintech apps like Betting and sports apps (sports betting is popular, and companies offer mobile and online betting platforms), or loan apps (some fintech startups provide micro-loans via apps) see significant traffic.

• Government E-Services: The Zambian government’s Smart Zambia initiative has led to a number of public services going online. There’s a government services portal where citizens can do things like apply for passports, pay certain fees, or access information. The Zambia Revenue Authority (ZRA) offers an online system for filing taxes, which businesses and individuals increasingly use. The Patents and Companies Registration Agency (PACRA) allows online business registration searches and filings. While not all government services are fully digitized, progress is notable and these official sites get usage from businesses and educated citizens handling administrative tasks. This not only improves efficiency but also familiarizes more of the population with using the internet for important tasks.

• Transport and Delivery Apps: Ride-hailing has arrived in Zambia’s cities in a few forms. Globally known services like Uber or Bolt have not launched in Lusaka yet, but local solutions have emerged. For example, Ulendo Taxi is a Zambian ride-hailing app that gained popularity by offering on-demand taxis via a mobile app. Additionally, in recent times, Yango (a service by Russia’s Yandex) reportedly started operations in Lusaka, providing more competition in ride-hailing. These apps are mostly used by urban residents for commuting convenience and their usage is a sign of the digital service economy extending into the transport sector. Alongside ride-hailing, there are on-demand delivery services – some powered by the same ride apps or separate ones – which became crucial during COVID lockdowns to deliver food and parcels. We see companies partnering with motorbike couriers and using app ordering (for food delivery from restaurants, for instance, there are a few apps like AfriDelivery or Tigmoo Eats that have tried to establish themselves).

In all these digital services, a recurring theme is mobile payment integration. Whether it’s paying for a streaming subscription, topping up a betting wallet, paying a driver in a ride-hail, or settling a tax bill, mobile money and electronic wallets are frequently options, reflecting how deeply the payment ecosystem has digitized (more on that in the next section).

To summarize, Zambians are increasingly using online platforms for a wide range of daily activities – staying informed, entertainment, banking, transportation, and more. The most popular platforms are those that are convenient, affordable, and solve a local need, and many times they are local adaptations of global ideas (like a local ride-hailing app) or simply global platforms that have become localized by their user base (Facebook usage for local community news, for example). For a business observer, the key takeaway is that the Zambian consumer is coming of age digitally: they browse Facebook for deals, watch YouTube for fun, shop on Jumia or via WhatsApp sellers, hail taxis via apps, and handle money on their phone. Any enterprise looking to succeed in this market must align with these digital habits.

Leading Internet-Based Companies and Startups in Zambia

Zambia’s startup ecosystem is still young but has been gathering momentum, especially in the last five years. A combination of local talent, supportive hubs, and increasing investor interest has led to a rise in internet-based companies tackling everything from finance to education. Below, we highlight some of the top internet-based companies and tech startups in Zambia, across various sectors, which exemplify the innovation happening in the country’s digital economy.

Fintech and Digital Finance Innovators

The fintech space in Zambia is arguably the most vibrant part of the startup scene, driven by the success of mobile money and a need for financial inclusion.

• Mobile Network Operators’ Fintech Arms: While not “startups” in the traditional sense, no discussion of digital finance in Zambia can ignore MTN Mobile Money and Airtel Money. These services, run by the two telecom giants, have tens of thousands of agent outlets across the country and collectively manage millions of digital wallets. They essentially turned telcos into the largest financial service providers by user count. Beyond person-to-person transfers, they now offer utility bill payments, merchant payments, savings and loan products (often via partnerships), and even international remittances. Zamtel, the third operator, also offers Zamtel Kwacha mobile money, though with a smaller user base. The competition among these has spurred innovation – for example, both MTN and Airtel have introduced QR code payments for merchants and apps for smartphones to complement their USSD services.

• Zoona (Tilt) and Digital PayGo: Zoona was one of Zambia’s pioneering fintech startups, founded over a decade ago. It started by providing over-the-counter money transfer services via agents, offering a way for people without bank accounts to send/receive money domestically (a bit like Western Union, but local and tech-driven). At its peak, Zoona processed millions of dollars in transactions and expanded to Malawi and elsewhere. However, as telcos’ mobile money grew, Zoona had to evolve. In recent years, Zoona developed a new digital payments platform called Tilt – focusing on interoperable bulk payments and integrating mobile money and bank channels. In 2023, Zoona’s journey came full circle when it was acquired by Chipper Cash, a major pan-African fintech company known for cross-border payments. This acquisition underscores the value of Zambian fintech – a local startup became part of a continental fintech play. Another local player, Digital PayGo, has been working on payment solutions for businesses (such as enabling merchants to accept all types of digital payments through one interface). These companies collectively show how the fintech sector is maturing, moving from simple money transfer to complex payment ecosystems.

• Union54: One of Zambia’s breakout fintech startups on the global stage is Union54. Founded by a Zambian couple, Union54 provides an API that allows African fintechs to issue debit cards without needing a bank partner – essentially providing “cards as a service.” In 2021, Union54 went through the prestigious Y Combinator accelerator in the US and garnered significant international investment. This startup put Zambia on the fintech map by solving a continent-wide problem from a Zambian base. By 2022, Union54 had raised multi-million dollar funding rounds and was working with fintechs across Africa to help them roll out their own branded debit cards. Union54’s success has been inspirational for the local startup community, proving that Zambian-founded companies can compete at the cutting edge of fintech innovation.

• Lupiya: Lupiya is a female-led Zambian fintech startup focused on online lending. It operates a platform that provides micro-loans and SME loans through an online marketplace, targeting segments that traditionally struggle to get financing from banks (like women entrepreneurs or rural small businesses). Lupiya leverages technology for credit scoring (including alternative data) and allows people to apply for loans via a website or mobile app without needing to visit a bank branch. The company has received grants and equity investments (including funding from Enygma Ventures) and was recognized for its potential to boost financial inclusion. Lupiya’s model addresses a critical gap in Zambia – access to credit – by using digital means to reach underserved customers.

• Other Emerging Fintechs: There are numerous other fintech initiatives: Zazu is a digital banking app that started as a prepaid Mastercard offering and personal finance app; Sprinters and Mangwee (the latter was a mobile wallet startup) have dabbled in electronic payment solutions; new fintechs are exploring areas like insurtech (digitizing insurance) and agritech finance (providing credit to farmers via mobile). Additionally, international fintech companies are present: for example, Kenya’s mobile-based lender Branch and other payday loan apps have been downloaded by Zambian users, and regional payment gateway providers like DPO or Flutterwave facilitate online payments for Zambian e-commerce sites.

Fintech’s dominance in Zambia’s startup scene aligns with a nationwide push for a cash-lite economy and the opportunity created by mobile money infrastructure. For investors, Zambian fintech companies offer a ready sandbox to test innovations that could scale regionally, given Zambia’s relatively supportive regulatory stance (the central bank has been open to digital financial services, issuing guidelines to foster growth while managing risks).

E-Commerce, Retail, and Logistics Startups

While large players like Jumia handle much of the e-commerce marketplace business, Zambian entrepreneurs have also created internet-based companies to tackle various niches in commerce and logistics:

• Musanga Logistics: Musanga is a Zambian startup that developed a tech platform for on-demand delivery services. Described often as “Uber for logistics,” Musanga connects individuals or businesses that need to send parcels/cargo with independent couriers (often cyclists or motorbike riders in urban areas). The goal is to optimize delivery by utilizing excess capacity and provide faster, cheaper courier options within cities. This kind of service is crucial for e-commerce growth (as a delivery network) and also serves other businesses (like distributors who need to move goods). Musanga has received international attention and was part of accelerator programs, highlighting how solving logistics can be a profitable venture in the digital economy.

• ShopBwana / Zagace: Some Zambian startups have created online storefront aggregators or digital malls. For example, ShopBwana is an online shopping facilitator that helps local businesses list their products online and provides a central site for customers to browse various suppliers. It’s part of a trend of enabling smaller retailers to go digital without heavy investment. Similarly, there are SaaS platforms offered by startups to help brick-and-mortar stores manage inventory and sales online, bridging the gap between offline and online retail.

• Vertical E-commerce and Subscription Services: A handful of new businesses are focusing on specific product categories. For example, there have been attempts at online supermarkets for grocery delivery in Lusaka (where a customer can order produce and household items via a website/app, and get them delivered the same day). There are also startups looking at meal kit deliveries or farm-to-table delivery using digital orders. While none have yet dominated the market, the experimentation is a sign of a healthy startup environment trying different models.

• Vehicle and Property Marketplaces: Though not “startups” in the Silicon Valley sense, online platforms for trading cars and real estate have popped up (often run by established media companies or new tech firms). Websites that list cars for sale or houses for rent/sale (akin to a Zillow or AutoTrader for Zambia) have gained usage, monetizing through ads or commission on leads. These replace or augment the traditional classifieds with richer, searchable online listings. They illustrate how the internet is reshaping even sectors like real estate in Zambia by increasing transparency and access to information.

Other Notable Tech Startups and Initiatives

• AgriTech: Agriculture being the backbone of Zambia’s rural economy, several startups are applying digital solutions to farming challenges. AgriPredict is one example – a Zambian agritech startup that developed a platform using artificial intelligence to help predict crop diseases and weather patterns, providing early warning to farmers via mobile phone. AgriPredict allows farmers to snap photos of ailing crops and get diagnoses, or receive SMS alerts about pest outbreaks or drought forecasts. This kind of innovation can significantly improve yields and resilience for farmers. Another startup, Rent-to-Own (RTO) Zambia, though not purely an “internet” company, uses digital tools to facilitate financing of productive assets (like solar irrigation pumps) for farmers – their field agents use tablets and a custom app to process loans and track client repayments, demonstrating how even rural-focused companies leverage digital tech.

• EdTech and E-Learning: The education technology space in Zambia is beginning to sprout. For example, eSchool, an online learning platform, gained traction during the COVID-19 school closures by providing revision materials and virtual classes for secondary school students. Some startups and initiatives are focusing on digital skills training: one might note the existence of coding bootcamps or IT academies (like CodeNgwana or the BongoHive Ignite program) that teach programming and entrepreneurship to youth, often supported by NGOs or corporate CSR. While these may not all be for-profit startups, they feed the pipeline of talent and occasionally spin off commercial ventures.

• HealthTech: Digital health startups in Zambia are still few, but there are promising efforts. One example is LiveWell (hypothetical name for illustration) – a platform that connects patients with doctors for teleconsultations via phone or messaging. Some pharmacies have begun offering online ordering of medicines with delivery, and health information services via SMS (like Maternal health tips programs run by NGOs in partnership with telecoms). During the pandemic, Zambia experimented with digital tools for contact tracing and information dissemination. We may expect more healthtech solutions (like patient record management software for clinics, or telemedicine in remote areas) emerging in the near future.

• Innovation Hubs and Support System: A big part of what drives these startups is the presence of BongoHive, Zambia’s first and leading technology and innovation hub based in Lusaka. BongoHive provides co-working space, mentorship, incubation programs, and has been a launchpad for numerous local startups (including some mentioned above). It hosts hackathons, pitch events, and connects Zambian founders with global networks. Other hubs and programs have also sprung up: Lusaka has the WeCreate Centre focusing on female entrepreneurs, the Jacaranda Hub for youth innovation, and even Copperbelt has a budding tech scene with support from universities. These hubs often work with international donors or corporate partners (for example, Facebook or Google might run training sessions in collaboration with local hubs). The result is a gradually strengthening ecosystem where entrepreneurs can get guidance and early-stage support.

Notable too is that Zambia’s government and institutions are starting to back startups more directly. The Zambian chapter of AfriLabs (the pan-African network of tech hubs) is active, and events like Zambia Digital Week and ICT Expo (which started in recent years) showcase local tech talent and foster connections with investors and potential customers. In late 2022, the central bank even hosted a fintech hackathon to encourage the creation of financial solutions aligned with regulatory needs. Moreover, Zambia is part of Smart Africa’s Alliance and has been exploring incentives for tech investment (like special economic zones for ICT or tax breaks for young firms).

For investors eyeing Zambia, the startups described above are proof of concept that innovation can thrive in the country. Key sectors like fintech present relatively lower barriers to scale (since solutions can often expand regionally with the right partnerships), whereas sectors like e-commerce and logistics may require more patient capital and infrastructure development. Importantly, many Zambian startups operate with a dual market mindset: they address local problems but with solutions that could find markets in similar countries. This means investing in a Zambian startup is sometimes an investment in a solution scalable across Africa’s emerging economies.

In conclusion, Zambia’s internet-based companies are led by fintech successes and complemented by rising stars in e-commerce, agritech, and other fields. The presence of supportive hubs and some high-profile wins (like Union54’s funding, Zoona’s acquisition, etc.) are giving the ecosystem credibility. We can expect more startups to emerge as success stories inspire new entrepreneurs, creating a virtuous cycle that will further boost the digital economy.

Internet Marketing Trends and Strategies in the Zambian Market

As the digital user base in Zambia grows, businesses have been adapting their marketing strategies to reach customers through online channels. Internet marketing in Zambia blends global best practices (like social media advertising) with local nuances (like the heavy use of WhatsApp and SMS). In this section, we outline the major trends and strategies in digital marketing that are relevant to the Zambian context, particularly for companies looking to engage consumers and build brand presence.

Social Media Advertising Dominance

Facebook Advertising: Given Facebook’s position as the most-used platform, it is the cornerstone of digital marketing in Zambia. Companies large and small run Facebook pages where they regularly post content — promotions, new product announcements, customer testimonials, etc. The interactive nature of Facebook (likes, comments, shares) helps businesses get immediate feedback and word-of-mouth spread. Additionally, Facebook’s advertising tools allow targeting by location, interests, age, and more, which Zambian businesses leverage to hone in on relevant audiences. For instance, an insurance company can run ads targeting Facebook users in urban areas aged 25+ with interests in finance, or a lodge can target those who live abroad but have hometown listed as “Lusaka” (to capture diaspora visiting home). The cost of Facebook ads in Zambia is relatively affordable (often a few dollars can reach thousands of people), making it accessible even to small enterprises. It’s common to see sponsored posts from banks, telecom operators, FMCG brands, and even political figures. One notable trend is the use of Facebook Live for marketing – some retailers or influencers host live video sales or Q&A sessions to engage audiences in real time, effectively turning Facebook into a live commerce channel.

Instagram and Influencer Marketing: On Instagram, businesses targeting youth or focusing on visual products (fashion boutiques, restaurants, travel companies) maintain polished profiles. They use high-quality photos and sometimes short Reels (Instagram’s video feature) to showcase their offerings. The concept of influencer marketing has taken root: brands partner with popular local Instagram personalities (for example, a Zambian fashion influencer or a musician with a big following) to promote products. These influencers might post wearing a brand’s clothes or reviewing a gadget, thus lending a peer recommendation effect. Even though the absolute reach of Instagram is smaller than Facebook, the engagement rate can be high for these lifestyle categories. Influencers often cross-post to Facebook or Twitter for wider reach. Companies are learning to set aside budget to pay influencers or give them free products in exchange for mentions — a practice that is increasingly formalized via influencer agreements.

Twitter for Brand Presence: While Twitter isn’t massive in user numbers, it holds sway in the media and tech-savvy community. Brands maintain Twitter accounts mainly for reputation management and customer service. For example, if a telecom network is having issues, they might tweet updates and respond to customer complaints on Twitter. Similarly, banks or airlines use Twitter as a support channel. From a marketing perspective, some brands use Twitter to run hashtag campaigns – for instance, a bank might promote a financial literacy hashtag and encourage people to tweet their savings tips, awarding prizes for participation. This engages the relatively small but vocal Twitter community and can spill over into press coverage if a hashtag trends nationally.

LinkedIn for B2B Marketing: Firms in the B2B space or those seeking investors use LinkedIn as a marketing and PR tool. Corporate announcements, new product launches (especially in tech or professional services), and thought leadership articles from executives are posted on LinkedIn to build brand credibility. For example, an enterprise software provider in Zambia might share a case study on LinkedIn about how a local company benefited from their solution, targeting other business owners who may read it. LinkedIn ads are also used for specialized recruitment and occasionally for B2B lead generation, albeit less frequently than Facebook due to higher costs.

Content Marketing and Localization

Localized Content: Successful digital marketing in Zambia often means localizing content to resonate culturally. Brands use familiar language (sometimes incorporating local languages or slang in their posts), references to local events or holidays, and images featuring Zambian people and settings. For instance, during national holidays like Independence Day or Youth Day, many companies run social media content aligning their brand message with the celebration. Memes and humorous content with a Zambian twist also tend to go viral, and savvy marketers tap into these by creating timely, shareable content. A classic example might be a fast-food chain posting a witty meme about a popular Zambian football victory, subtly including their product in the joke — this kind of light-hearted approach often garners a lot of engagement.

Educational Content and Storytelling: Some brands are moving beyond pure advertising into content marketing — creating useful or entertaining content that draws people in. For example, a mobile money company might produce short videos on “how to save and invest using mobile money” which educate users while indirectly promoting their services. Similarly, agro-tech firms might publish blog posts or Facebook notes about improving farm yields, establishing themselves as experts. This strategy builds trust and keeps audiences engaged without always pushing a sale. Storytelling is another tactic: we see more narrative-driven campaigns, such as telecom companies sharing stories of how real customers (e.g., an entrepreneur in a village) used the internet or mobile services to improve their business – these are then promoted as human-interest stories via social media and even picked up by news outlets.

Video Content: Even outside of pure advertising, video content is a growing part of digital strategy. Brands create short video ads optimized for social media, often under 60 seconds, knowing that Zambians are increasingly consuming video (where data allows). These videos might be customer testimonials, skits featuring brand mascots, or mini-documentaries. Posting video directly on Facebook can yield high reach due to Facebook’s algorithms favoring video. On YouTube, some companies maintain channels where they upload longer form content – for instance, banks might post full financial literacy webinar recordings, or an automotive brand might post how-to videos for vehicle maintenance. The key in Zambia is to also provide bite-sized versions or summaries on the platforms people use most (like a 30-second clip on Facebook linking to a full YouTube video) to accommodate varying data availability.

Multi-Channel and Mobile-Centric Marketing

WhatsApp and Messenger Marketing: A lot of Zambian businesses have started using WhatsApp as part of their marketing and customer engagement strategy. Using WhatsApp Business, companies can set up an official presence with a verified number, catalog of products, and automated greeting/away messages. Small businesses often encourage customers to “WhatsApp us to place an order or for more info” – essentially using the app as a direct sales channel. Broadcast lists on WhatsApp (where a business can send updates to many customers who have saved their number) serve as a newsletter of sorts, albeit one that must be used carefully to avoid spamming. Because WhatsApp is opt-in (customers need to initiate or agree to message), the communication tends to be high-intent and personal. For example, a boutique will regularly send images of new arrivals to its WhatsApp customer list; those interested reply to reserve items. This intimate form of marketing leverages trust and personal relationships. Facebook Messenger is used similarly by some brands – they deploy chatbots or live agents to respond to inquiries coming through their Facebook page, effectively using Messenger as a customer service and marketing automation tool.

SMS and Traditional Digital Channels: Given not everyone has mobile internet, SMS marketing remains relevant. Banks, for instance, send SMS alerts not just for transactions but also promotional messages like loan offers or new branch openings. Retailers might blast out an SMS announcing a weekend sale. SMS reaches any mobile phone, so it’s a way to cover the gap to those who aren’t actively on social media. However, companies must be mindful of frequency and consent (Zambia has been moving towards regulations on unsolicited electronic messages). Email marketing exists but is less impactful in the consumer space due to smaller email usage rates; it’s more effective in B2B or with established customer bases (for instance, an airline emailing its frequent fliers special deals).

SEO and Search Marketing: As Zambians use search engines for information (Google is widely used), companies have started caring about their search engine optimization (SEO). It’s now common for businesses to try to rank for searches like “best safari tour Zambia” or “Lusaka electricians” by maintaining active websites or using Google My Business listings to appear in local search results. Some businesses run Google Ads to capture these queries — for example, a university might advertise on Google for “MBA programs in Zambia,” ensuring they appear atop the results. While not as ubiquitous as social media marketing, search marketing is crucial for service-oriented businesses and those with a national or international customer base. An increasing number of marketing agencies in Zambia offer SEO/SEM services, signalling that companies recognize the value of being discoverable online through search.

Mobile App Marketing: A few companies, especially in fintech and telecom, have mobile apps they promote. For instance, a bank with a new mobile banking app will undertake a campaign to encourage downloads — using a mix of channels: social media ads showing the app’s features, SMS with download links, in-branch signage, and maybe incentivizing customers (like “download our app and get X free transactions”). Similarly, as ride-hailing and e-commerce apps emerge, their marketing focuses on digital channels to drive installs. In a mobile-first environment, getting users to install and retain an app is considered a win for customer loyalty, so a lot of cross-channel effort goes into that during launch phases.

Challenges and Opportunities in Digital Marketing

Challenges: One challenge is that while digital reach is growing, it still excludes a large offline population. Companies often have to balance their budgets between traditional media (radio, TV, billboards) and digital, to cover all bases. Additionally, limited connectivity in rural areas means some campaigns (especially video-heavy ones) won’t penetrate there yet. Digital literacy is another issue: marketers have to ensure their messages are simple and clear, as many new internet users are not yet savvy to complex e-commerce flows or abstract brand messages. Building trust online is an ongoing battle – scams and misinformation on social media have made some users wary, so brands often emphasize verified pages, customer reviews, and sometimes rely on influencer or word-of-mouth validation to reassure potential customers.

Opportunities: On the flip side, digital marketing in Zambia offers high engagement with those reachable. The novelty factor of online campaigns can be high, meaning a creative approach can really stand out. There’s less saturation of content compared to Western markets, so a good campaign can achieve virality relatively inexpensively. Also, because the audience is young, there’s a willingness to interact with brands playfully online (e.g., participating in contests, hashtags, etc.). Another opportunity is that companies can gather data and feedback quickly online – through polls, comments, and analytics – and use that to refine their offerings more responsively than was possible with traditional channels.

Local Partnerships: An emerging strategy is brands partnering with popular local online pages or communities. For example, a widely followed Facebook page that shares jokes in vernacular might partner with a telecom brand to subtly include the brand in its content for a period. Or a YouTube talk show sponsored by a bank might carry the bank’s messaging to its audience without feeling like an intrusive ad. These content-driven partnerships allow brands to piggyback on organic followings that local content creators have built.

In summary, internet marketing in Zambia is centered around social media, is highly mobile-oriented, and increasingly creative in approach. Brands are learning to speak the language of their digital consumers and to use a mix of direct advertising and softer content strategies to build loyalty. For any entrepreneur or investor, understanding these marketing dynamics is crucial — no matter how good a digital product or service is, reaching the end-user cost-effectively and convincingly is key. Zambia’s case shows that with a young online audience, digital marketing must be interactive, authentic, and convenient (a click or a chat away from converting into a sale). Those who master this are reaping significant rewards in brand growth and customer acquisition.

Digital Tools Adoption in Business and Across Industries

The adoption of digital tools and services in Zambia’s various industries has accelerated, transforming how business is done and how services are delivered in sectors like finance, commerce, agriculture, education, and government. Below we explore how different industries and business segments are embracing technology – from mobile payments becoming ubiquitous to new digital solutions emerging in traditional fields.

Financial Services: Mobile Payments and Digital Banking

The financial sector in Zambia has been revolutionized by mobile payments. As highlighted earlier, there are nearly 13 million active mobile money accounts in the country (as of 2023) – a figure that exceeds the number of bank accounts by far. This means farmers, market vendors, taxi drivers, and salaried workers alike are using their phones as wallets. Businesses of all sizes have had to adapt to this reality.

• Merchants and Billers: It’s now common to see even small shops displaying mobile money QR codes or agent numbers for payment. Utilities like ZESCO (electricity) and NWASCO (water) allow bills to be paid via mobile money. Digital adoption here benefits both sides: customers save time and transport by paying remotely, and companies get faster, traceable payments. In fact, government services too accept mobile payments – for example, one can pay traffic fines or passport fees using mobile money codes.

• Banking Industry: Rather than being disrupted by mobile money, Zambian banks have smartly partnered and integrated with it. Most banks let customers link their bank accounts with their mobile wallets, enabling easy transfer of funds back and forth. This bridges the formal banking system with the broader unbanked population. Banks also launched mobile banking apps and USSD services to mimic a lot of what mobile money does (balance inquiry, transfers, airtime purchase) plus added services like insurance or savings plans. The result is that banking has become more accessible – one doesn’t need to visit a branch for routine transactions. Some banks have even introduced digital-only account opening, where a new customer can sign up via an app, complete KYC by submitting their National ID and selfie, and start transacting in minutes.

• ATM and POS vs Digital: The rise of mobile money has had interesting effects. For instance, the value of mobile money transactions in 2023 reached K452 billion, up 52.8% from the prior year, overtaking many traditional payment modes. In contrast, Point-of-Sale (card) transactions actually declined in 2023 for the first time in over a decade – indicating that rather than swiping debit cards, Zambians are now more likely to scan a QR code or send to a merchant’s mobile number for purchases. ATM withdrawals have likewise plateaued as more people prefer to keep value in digital form (using it to pay others directly). This is a huge shift in consumer behavior: cash is slowly ceding ground to digital currency. Businesses are responding by upgrading their systems – for example, supermarkets that used to encourage card payments now also prominently advertise “We accept MTN MoMo/Airtel Money”.

• Fintech Services: Outside payments, fintech has introduced tools like micro-loans via phone (customers can get a short-term loan on their mobile wallet, offered by companies like JUMO in partnership with telcos or banks), and digital savings groups (replicating the traditional “chilimba” rotating savings, but through an app or USSD, where members contribute and withdraw funds within a trusted circle). These services are increasing financial inclusion – people who never had formal financial history now have digital transaction records that could be used for credit scoring and offering larger loans, insurance products, etc. It’s a virtuous cycle: more digital usage leads to more data, which leads to better tailored financial offerings.

Overall, the financial industry’s digital adoption is perhaps the most advanced in Zambia, with mobile money entrenched in daily life, and banks increasingly digital-first in strategy. For investors, this means any new financial product must integrate with mobile platforms to gain traction, and there are opportunities to build on the robust payment infrastructure to offer ancillary services.

Commerce and Retail: SME Tools and Online Presence

Small and Medium Enterprises (SMEs) form the backbone of Zambia’s economy, and their digital adoption is crucial. Here’s how many businesses are going digital:

• Social Media Presence vs Websites: Many SMEs now at least have a Facebook page as their online storefront. It’s often the first step into digital – creating a page, putting contact info and pictures of products. For example, restaurants in Lusaka share their menus and location on Facebook and use WhatsApp for taking reservations or delivery orders. Some of the slightly larger businesses invest in simple websites, especially if they cater to an international clientele (e.g., safari lodges or tourism operators will have websites for overseas clients to find them). But for local customer engagement, Facebook and WhatsApp are the primary tools; they are essentially free and have massive reach.

• Online Marketplaces for SMEs: To augment their reach, some SMEs list on online marketplaces like Jumia or local directories (like Bizbwana or Yellow Pages online). A number of retailers that traditionally sold wholesale or through physical outlets are experimenting by placing their inventory on marketplaces or using Instagram “shops”. The barrier to entry for e-commerce has lowered — one doesn’t need to build a whole e-commerce site; they can piggyback on existing platforms.

• Digital Point of Sale and Inventory: Some tech startups and ICT providers offer POS systems on tablets or smartphones that help small shops track sales and inventory digitally. Instead of cash registers and paper ledgers, a grocery store in Lusaka might use a simple app on a tablet to scan items, accept mobile money or card payments, and automatically manage stock counts. These tools, while not yet ubiquitous, are being adopted by more forward-looking retailers because they provide data insights and reduce losses. Mobile payment integrations with such POS systems also mean the accounting is easier — daily mobile money receipts can be tallied automatically, for example.

• Supply Chain and Sourcing: Even in sectors like agriculture or fast-moving consumer goods, businesses use digital means to communicate and source. Farmers are increasingly added to WhatsApp groups run by their cooperative or buyer companies to get updates on prices, collection schedules, or advice. Distributors of goods often take orders from shopkeepers via SMS or apps rather than manual paper orders. This speeds up the supply chain and reduces stockouts. Some agro-companies use platforms to track produce from farm to warehouse using barcodes and cloud databases, ensuring better quality control and traceability.

• Customer Relationship Management (CRM): Businesses are starting to use simple CRM tools, often built into social media or provided by telecom operators. For example, a small company might use an email newsletter or SMS list to keep past customers informed of new offerings. Or they use analytics from their Facebook page to understand customer demographics and engagement patterns. Larger companies like banks and telecoms certainly have more advanced CRM and data analytics, segmenting customers and targeting them with appropriate digital campaigns (e.g., offering a data bundle to a customer who usually buys voice-only packs).

Agriculture and Agri-Business: From Field to Market with Tech

Agriculture employs a huge portion of the population, and though it’s traditionally low-tech, digital adoption is picking up:

• Information Services to Farmers: Several programs send SMS or voice messages in local languages to farmers, offering advice on planting, weather forecasts, or market prices. For instance, a cotton farmer might get a text alert that rain is expected in 3 days – prompting timely planting or fertilizing – or that the price offered at a nearby depot this week is KX per kg, helping them decide when and where to sell. These information services, often run by NGOs or agri companies, dramatically improve farmers’ decision-making and are delivered via basic mobile phones.

• Digital Marketplaces for Crops: A few pilot projects have created digital marketplaces where farmers can list their harvest and buyers (millers, exporters, etc.) can bid, somewhat like a commodity exchange via SMS/app. This can improve farmgate prices by cutting middlemen, though adoption is still early. The Zambia Commodity Exchange (ZAMACE) itself has tried to digitize trading processes to increase transparency in grain markets.

• Farm Management Apps: Commercial farms and more tech-savvy emergent farmers are starting to use farm management software accessible on tablets or laptops. These help track inputs, yields, financials, and even use satellite data for crop health monitoring. For example, a commercial farm may use drone imagery and an AI platform to identify pest infestations early and target pesticide use, saving cost and crop. These technologies are trickling down to larger smallholders too via agricultural extension officers equipped with digital tools.

• Mobile Payments in Agriculture: As mentioned, paying farmers via mobile money instead of cash is becoming common. Agribusinesses that procure milk, grain, or cash crops often pay through mobile wallets, which is safer and quicker. This also encourages farmers to then use mobile money for their own transactions, slowly integrating rural areas into the digital financial ecosystem. Some farmer savings groups use mobile wallets as a safer store of their pooled funds than holding physical cash.

The agriculture sector stands to gain immensely from digital adoption, and while challenges like limited connectivity and digital literacy in rural areas exist, the progress is encouraging. For investors looking at agri-business, those that incorporate digital tools for efficiency and farmer connectivity are likely to have an edge.

Education and E-Learning

Education is another field undergoing digital transformation:

• Schools and Universities: During COVID-19, many schools (particularly private and urban public ones) tried out e-learning solutions – from Zoom classes to distributing lessons via WhatsApp or e-mail. This experience raised awareness about e-learning possibilities. Now, some universities offer blended courses where part of the curriculum is delivered online through learning management systems (LMS) like Moodle. The University of Zambia (UNZA) and other tertiary institutions have student portals for registration, results, and course materials. While basic education in rural areas still lacks such tech, in cities one can see smart classrooms here and there with projectors and educational software.

• Online Courses and Training: Professionals in Zambia increasingly take online certification courses (from platforms like Coursera, Udemy, or specialized IT training sites). Recognizing this, local institutes have become affiliates to offer such courses targeted to Zambian needs. For example, there might be an online course for learning Zambia-specific tax accounting software, hosted by a local firm but delivered digitally. Tech communities hold webinars and even virtual conferences (e.g., the annual ICT Day events in 2020 and 2021 had virtual components).

• Educational Content Creation: Some startups and NGOs focus on creating local curriculum content in digital form – like interactive quizzes or video lessons aligned with Zambia’s school syllabus. These can be distributed via inexpensive tablets to schools or via mobile apps. One challenge is ensuring students have access to devices and internet; initiatives to establish computer labs or provide tablets (sometimes through corporate social responsibility programs) are tackling this.

Digital tools in education are still supplemental in Zambia, but they’re proving their value in extending reach (especially to adult learners and secondary students in remote areas through radio-internet hybrid programs). The future likely holds more integration, such as national exams preparation apps or expanding the reach of vocational training through online modules.

Healthcare: Telemedicine and Digital Health Services

Healthcare adoption of digital tools is gradually increasing:

• Telemedicine: In urban areas, a few private clinics introduced tele-consultation services, where patients can video call a doctor or consult via chat for minor ailments or follow-up visits. This saw a push during the pandemic to reduce clinic visits. Some health startups or hospital groups now advertise phone lines or WhatsApp numbers through which patients can get advice from a nurse or schedule appointments remotely.

• Mobile Health Campaigns: Zambia has had successful mobile health messaging campaigns – for example, the Ministry of Health partnered in initiatives to send pregnant women weekly SMS tips about pregnancy and infant care, which had thousands of subscribers. Similarly, youth-focused sexual health hotlines are accessible via phone and SMS for confidential counseling. These services improve public health outcomes and showcase how even simple technology can have wide impact.

• Digital Records: Some hospitals have begun implementing electronic health record (EHR) systems to digitize patient records, though many are still on paper. The ones that have, report better patient follow-up and reduced wait times because data retrieval is faster. There’s an ongoing effort, supported by donors, to create a more unified health information system that could ultimately allow, for instance, a patient’s history to be pulled up at any clinic with their national health ID. Progress is incremental, but pilot programs in certain provinces exist.

• Pharmaceuticals: Pharmacies are adopting digital inventory and point-of-sale systems to manage stock and even to enable online ordering. A company or two have attempted online pharmacies where customers upload a prescription and have medicine delivered (especially useful for chronic patients who need refills). Regulation is cautious here to prevent misuse, but the service is beneficial for some patients in urban locales.

Telemedicine and e-health are still at an early stage, but with an acute doctor shortage and many rural communities far from specialists, the potential is huge. Even basic telehealth centers that connect a rural clinic to a Lusaka specialist via video could save lives. Investments in this area are likely to grow as infrastructure and policies catch up.

Government and Public Sector: E-Government Transformation

The Zambian government, through the Smart Zambia initiative, has been a major adopter of digital tools to improve public service delivery:

• E-Government Services: As mentioned, citizens can access various services online: filing taxes (through the ZRA e-portal), applying for business licenses (PACRA’s online system for company registration and name searches), and even some immigration services like visa applications are now online. The government service bus (GSB) is an integrated e-government platform aiming to unify access to many services under one digital roof. This has improved ease of doing business (Zambia’s ranking in the World Bank’s Ease of Doing Business index had improved partly due to these digital reforms like online business registration and electronic tax payment).

• Digital Identification: Zambia has been working on digital national ID systems. The National Registration Card (NRC) is the standard ID, and efforts are ongoing to enhance it with biometric features and possibly link it to a digital identity database. While not fully realized, once in place, this can enable even more secure online transactions (like digital signatures for documents, or verification for e-voting in the future).

• Public Finance Management: On the back-end, the government introduced an Integrated Financial Management Information System (IFMIS) to digitize budgeting and expenditure tracking in ministries – curbing leakages and improving transparency. Additionally, social cash transfer programs are now done through electronic vouchers or mobile money to reach beneficiaries efficiently, which is a major improvement over cash handouts.

• Open Data and Transparency: Zambia joined the Open Government Partnership and has made strides in making data available online. One can access budgets, census data, and other statistics on government websites. This transparency, aided by digital publication, empowers citizens and entrepreneurs (for example, knowing demographic data can help a business plan where to expand).

In governance, digital adoption has not only improved efficiency but also accountability. For instance, the police rolled out an online platform to report certain crimes or get clearance certificates, reducing petty bribery opportunities by cutting out in-person steps. Citizens can also engage with leaders on social media – many government agencies have Facebook pages where they post updates and take feedback (the Zambia Police Service, ZESCO, and city councils are active on social media for public communication). This two-way digital dialogue is making government more responsive.

Industry and Enterprise: Efficiency through Tech

Finally, in more industrial sectors (manufacturing, mining, energy), digital tools are more about internal efficiency and less visible to the public but are certainly being adopted:

• Mining: As one of the most tech-intensive sectors, mines in Zambia use advanced software for exploration (3D geological modeling), automation in operations (some mines employ autonomous or remotely operated machinery in hazardous areas), and IoT sensors for equipment health monitoring. They also use ERP (enterprise resource planning) systems to integrate their supply chain, finance, and HR processes. This means mines are collecting a lot of data and some have data analysis teams to optimize output. There’s also interest in environmental monitoring tech to ensure compliance and safety which ties into digital systems.

• Energy: Utilities like the national electric company use digital grid management systems and are starting to install smart meters for customers in pilot projects. Smart meters allow remote reading and control (helping with load management and reducing losses). In the renewable sector, companies installing solar mini-grids in rural areas often use remote monitoring systems to track performance and usage of those grids via the internet.

• Transportation and Logistics (Enterprise): Trucking companies track their fleet with GPS and manage logistics via software – improving delivery times for cross-border trade. The introduction of the regional customs transit system also means cross-border haulers have electronic seals on cargo that are tracked to reduce smuggling. All these represent the creeping digitization of traditional industries.

• SME Tools for Accounting/HR: Some Zambian firms now use cloud-based accounting software (like Xero or Sage) or local equivalents to manage their books, replacing manual bookkeeping. Similarly, HR systems for payroll and leave management are being adopted by medium-large employers, sometimes provided by Zambian IT firms customizing solutions for local labor and tax rules.

In essence, across sectors, digital adoption is boosting productivity and enabling new business models. Some industries are further along (finance, telecom), some are catching up (agriculture, health). The common drivers are need for efficiency, cost savings, and expanded reach, while common barriers include cost of technology, skill gaps, and sometimes resistance to change.

Crucially, Zambia’s private sector seems convinced that going digital is not optional but necessary to stay competitive and serve a young, connected population. From entrepreneurs using WhatsApp to run a business, to corporations investing in big data, the digital thread is weaving through the Zambian economy. For investors and professionals evaluating Zambia’s market, it’s clear that those companies and sectors that leverage digital tools effectively are likely to outpace those that do not. The trajectory suggests that in the coming years, Zambia could leapfrog in several areas by fully exploiting these technologies, driving socio-economic growth and inclusion in the process.

Conclusion: Opportunities in Zambia’s Digital Economy

Zambia’s digital economy, as of 2025, stands at an exciting juncture. The country has laid a solid foundation – with improving internet infrastructure, a critical mass of connected citizens (over one-third online and growing), and a demonstrated appetite for digital services such as mobile payments and social media. The geographic challenges of being landlocked and having dispersed rural communities are being mitigated by creative use of technology (from cross-border fiber to satellite broadband and mobile networks blanketing the terrain). Economically, while traditional sectors still dominate, the digital and internet-driven sectors are injecting fresh dynamism and opening up new avenues for growth.

For the business and investor community, Zambia offers a stable political climate, a relatively open market, and now a rising digital consumer base ready to be served. Key takeaways include:

• The connectivity landscape is improving rapidly – meaning any investments in digital services can count on a steadily expanding addressable market. Internet penetration, at around 33% now, is set to climb towards 50% in the next few years as smartphones and networks reach more people. Moreover, the fact that 92%+ of the population has mobile SIMs (with many having mobile internet) and mobile broadband subscriptions are around 63 per 100 people indicates that last-mile access is less of a bottleneck than before. This paves the way for scale in B2C digital business models.

• Consumer behavior has shifted – Zambians are increasingly comfortable conducting important transactions digitally (like sending money, paying bills, shopping online) and spending significant time on the internet (for news, entertainment, socializing). This means that new digital offerings – be it a streaming service, an e-learning platform, or a health consultation app – have a fighting chance of gaining adoption if they meet a real need and are marketed well. Early entrants in various digital niches have mostly proven demand, but many areas are still under-served or could be improved upon, signalling opportunities for new ventures or partnerships.

• The startup ecosystem is evolving, producing homegrown solutions that tackle local problems. Investors looking at Zambia can find promising startups in fintech, agritech, e-commerce, and other fields who have local knowledge and traction. With the right support and capital, some of these could become regional success stories (as we saw with Union54 or Zoona’s trajectory). There is also room for strategic investments and acquisitions; international firms could partner with or acquire Zambian tech companies to enter the market with an established base (the Chipper Cash acquisition of Zoona is a prime example of this play).

• Digital inclusion and social impact are integral to Zambia’s digital economy narrative. The widespread use of mobile money is lifting financial inclusion rates, digital learning tools can help address educational gaps, and telehealth can mitigate healthcare access issues. Investments in the digital sector often have positive social externalities, and this aligns well with Zambia’s development goals. Stakeholders such as the government and development agencies are keen to support initiatives that broaden digital access (like rural connectivity projects or digital literacy programs), which can complement private sector efforts.

• Internet infrastructure and services present direct investment opportunities too – for instance, further expanding data centers and cloud services locally (to meet the data demand and latency needs as usage grows), or investing in last-mile connectivity solutions (like wireless ISPs, or community networks possibly leveraging TV white space or other innovations for remote areas). The arrival of Starlink hints at a competitive future in ISP markets, which could spur traditional providers to up their game, possibly requiring capital for expansion and upgrades.

• Internet marketing and analytics have become sophisticated enough in Zambia that businesses can effectively reach target demographics. This lowers the market entry risk – one can test products and campaigns digitally with relatively low cost. For multinational companies, Zambia’s online advertising reach (e.g., the fact that Facebook can reach over 50% of internet users) means a well-crafted digital marketing strategy can quickly build brand presence without the need for extensive on-the-ground infrastructure initially.

• Adoption across industries suggests that any company entering Zambia should consider digital channels not just for marketing but also for operations. Whether it’s using mobile money for sales collections, or engaging with customers via chat, digital is entwined with business processes. Conversely, companies offering enterprise solutions (B2B SaaS, automation, etc.) will find a growing client base of Zambian firms looking to modernize their operations, so B2B digital services have strong potential alongside direct consumer services.

In conclusion, Zambia’s internet-driven economy is ripe with opportunities and on a strong upward trajectory. The country combines many of the positive attributes investors seek: a young and growing market, increasing technological uptake, relative political stability, and clear areas of unmet demand where innovation can thrive. Challenges remain – such as ensuring affordability for the poorest, improving digital skills broadly, and maintaining the momentum of infrastructure rollout – but these are being actively addressed by stakeholders. For professionals, entrepreneurs, and investors evaluating Zambia, the key is to align with the country’s digital momentum: those who invest in understanding local needs, leveraging the platforms Zambians use, and delivering value through digital means are likely to find a welcoming and potentially very rewarding environment. Zambia is often called “the warm heart of Africa” for its hospitality – and that warm heart is now beating to a digital rhythm, open for business and innovation in the 21st century.