Election uncertainty, weak demand push Zambia to Africa’s weakest business activity - Businessday NG

…PMI falls to lowest level in nearly two years in August as customers delay spending

Zambia recorded Africa’s sharpest deterioration in private sector business activity last month as election uncertainty and cautious customer spending weighed heavily on output and new orders.

BusinessDay’s analysis of Purchasing Managers’ Index (PMI) data from S&P Global across eight African economies shows that the southern African PMI fell to 46.0 in August from 50.7 in July, marking its lowest level in 23 months and the sharpest deterioration in business conditions since September 2024.

A PMI reading above 50 signals an expansion in private-sector activity from the previous month, while a reading below 50 indicates contraction.

The sharp decline in Zambia contrasts with a largely resilient performance across the continent. The average PMI for the eight economies slipped only marginally to 50.9 in August from 51.0 in July, while five economies recorded expansion, compared with six in July.