Crossing the Zambezi: Why Zimbabwean Companies Are Now Fleeing to Zambia

A quiet exodus is happening in Zimbabwe’s corporate world. From mortgage finance giants to manufacturing firms, the smartest minds in Zimbabwean business are packing their bags and crossing the Zambezi. A high-level trade mission to Lusaka this week has exposed a hidden detail of our economy: Zimbabwean companies are finding it easier to thrive in Zambia than at home. “My Zimbabwe News” investigates the push and pull factors behind this trend. Is it the stability of the Kwacha, the ease of doing business, or simply a vote of no confidence in our local economic policies?

The scene in Harare is one of survival. Despite recent reports that Zimbabwe’s annual inflation rate fell to single digits for the first time since 1997—dropping to 4.4 percent in May 2026 following the introduction of the gold-backed ZiG currency —the formal business sector remains under immense pressure. In February 2026, OK Zimbabwe, one of the country’s largest retail chains, officially entered corporate rescue, closing over a dozen stores and slashing its workforce. This collapse of a retail giant serves as a stark reminder that macroeconomic stability on paper does not always translate to a conducive operating environment on the ground.

In stark contrast, the scene in Lusaka is one of rapid expansion. Zambia has emerged as one of Africa’s leading industrial powers, driven by a deliberate strategy to attract foreign capital. The Zambian Dream is built on predictable policies, tax incentives, and a welcoming approach to regional expertise. For many Zimbabwean executives, the decision to relocate or expand northwards is no longer just an option; it is a strategic necessity.

The Mortgage Market Migration

The recent Services Business Mission to Zambia, organised by ZimTrade from June 9 to June 11, 2026, highlighted the specific sectors where Zimbabwean expertise is in high demand. While trade missions often focus on exporting physical goods, this mission had a unique focus: exporting professional services, particularly in the construction and housing finance sectors.

During the mission, high-level business match-making sessions were held with ZambianHOMELOANS, a specialised mortgage provider in Lusaka. The discussions centred on a proposed Memorandum of Understanding (MoU) that would see Zimbabwean firms providing architecture, engineering, and project management services, while ZambianHOMELOANS facilitates the mortgage financing for property developments.

Mr Ishumael Gura, president of the Institute of Architects of Zimbabwe (IAZ), articulated the rationale behind this move.

“Zimbabwe possesses a strong pool of highly skilled architectural professionals with extensive experience in designing and delivering projects across various sectors. As the regional market continues to expand, we see significant opportunities in Zambia and are keen to leverage our expertise to support the country’s growing construction and infrastructure development needs. We believe there is substantial potential for collaboration between Zimbabwean architects and Zambian stakeholders, creating mutual benefits while contributing to sustainable urban development and economic growth in the region,” Mr Gura said.

This sentiment was echoed by Mrs Gloria Zhou from Six Nine Construction, who noted that the mission provided valuable insights into the opportunities available in Zambia’s construction and technical services sectors.

“As a company, we are ready to tap into these opportunities by leveraging our expertise, experience and innovative solutions to support Zambia’s growing infrastructure and development needs. We believe there is significant potential for mutually beneficial partnerships and collaborations that can drive growth for our business while contributing to the development of the Zambian economy,” said Mrs Zhou.

From the Zambian perspective, the influx of Zimbabwean professionals is a welcome solution to local capacity constraints. Mr Kennedy Kaonga, head of monitoring and evaluation at ZambianHOMELOANS, explained the practical benefits of formalising these relationships.

“We would be glad to work with building and construction experts that come under the professional banner of ZimTrade because we have had challenges with some independent tradesmen from Zimbabwe. It will therefore be prudent if we have an MoU with ZimTrade, so that we have access to credible expertise while we cater for Mortgages for those who want to build residential, industrial and commercial buildings here in Zambia,” he said.

The Push and Pull Factors

To understand why your local bank or construction firm might be more interested in building houses in Lusaka than in Harare, one must examine the push and pull factors driving this economic migration.

The push factors from Zimbabwe are well-documented. Despite the recent stabilisation of inflation through the ZiG currency, businesses have spent years navigating policy inconsistency, high banking charges, and complex regulatory frameworks. The collapse of OK Zimbabwe illustrates the brutal reality of operating in a high-cost environment where consumer spending power has been severely eroded. For many entrepreneurs, the daily struggle against red tape and operational bottlenecks is simply exhausting.

Conversely, the pull factors to Zambia are highly attractive. Zambia currently ranks significantly higher than Zimbabwe on the global ease of doing business indices. The Zambian government has actively courted foreign direct investment through legislative reforms. The Investment, Trade and Business Development Act, amended in 2024, expanded tax breaks to incentivise investments in production and processing.

One of the most significant hidden details of Zambia’s success is the establishment of Special Economic Zones, such as the Lusaka South Multi-Facility Economic Zone (LS-MFEZ). Companies operating within these zones can benefit from a zero percent corporate tax rate for a period of ten years on dividends declared on profits.

A Training Ground for Success?

This regional competition for investment raises a difficult question: is Zimbabwe becoming a training ground for businesses that only find true success once they leave?

Consider the story of Glytime Foods, founded by 35-year-old Zimbabwean entrepreneur Lesly Marange. Starting from baking eight kilogrammes of product a day in a house oven, the company navigated the turbulent Zimbabwean economic waters before expanding into the Lusaka South Multi-Facility Economic Zone. Today, Glytime Foods is celebrated as a regional success story, but its significant growth phase is increasingly anchored across the border.

Similarly, large multinational franchisees like Varun Beverages, which bottles PepsiCo products, are heavily investing in both countries. However, their expansion in Zambia is often cited as a smoother operational experience compared to the constant balancing act required in Zimbabwe. Even local giants like Innscor Africa, while maintaining volume growth, frequently cite the challenging operating environment at home.

The migration of capital and expertise is, in many ways, a vote of no confidence in the local economic environment. When businesses find that the stability of the Kwacha and the ease of doing business in Lusaka offer a better return on investment than the familiar streets of Harare, they will inevitably follow the path of least resistance.

The Cost of Losing the Race

The economic migration of Zimbabwean businesses to Zambia has profound implications for jobs and growth at home. Every company that chooses to build its new factory in the Lusaka South Multi-Facility Economic Zone instead of a designated industrial park in Zimbabwe represents lost employment opportunities, lost tax revenue, and a drain on the country’s skills base.

While the Zimbabwean government has introduced ambitious ease-of-doing-business reform packages — cutting licence fees and reducing banking charges — these measures often feel reactive rather than proactive. The reality is that capital is highly mobile, and in the regional competition for investment, Zimbabwe is currently losing the race to its northern neighbour.

The trade missions to Lusaka are a double-edged sword. On one hand, they open up vital export markets for Zimbabwean services, allowing local professionals to earn foreign currency and sustain their operations. On the other hand, they expose the uncomfortable truth that our brightest minds and most innovative companies are increasingly reliant on another country’s economic stability to survive.

As more businesses pack their bags and cross the Zambezi, policymakers in Harare must look beyond the surface-level metrics of inflation and currency stability. They must address the hidden details of the regulatory environment, the cost of doing business, and the overall confidence of the private sector. Until Zimbabwe can offer a business environment that rivals the Zambian Dream, the quiet exodus of our corporate champions will continue.