Artisan & Natural Products in Zambia
Throughout 2020, Daniella Mastracci, Stacey Edgar, and Kathleen Holland, members of the Trade+Impact Board of Directors, crafted “A Comprehensive Assessment of the Artisan and Natural Products Sector in Zambia,” highlighting the explosive growth in the handmade industry of Zambia. Continue reading to discover more about varying levels of Zambian business and growth from the research in this report. Access the full report HERE.
In Zambia, artisanal and natural products (ANP) are a driving force for employment and export sales for many developing countries worldwide. Behind agriculture, artisan activity is the second-largest employer in the developing world (Chappe & Lawson Jaramillo, 2020). In total, the handcraft sector contributes over $660 billion to the global economy.
Levels of Enterprise
To showcase Zambian artisanal and natural products (ANP) companies, T+I created detailed company profiles featuring key information such as product offering, production capacity, and export experience. Here, companies are categorized by trade levels (T1, T2, T3). As explained on the export readiness page, T1 Enterprises primarily serve the local market with no formal export experience. T2 and T3 Enterprises have formally registered businesses in the artisan and natural products sector. T2 enterprises have regional export experience and perhaps some international export experience. T3 enterprises are experienced in international export.
The number of employees increases as businesses move up each level; the average number of employees for T1 businesses is 1-2 versus the average number of T2 at just over 9 employees. At the T3 level, there is a steep increase with the average number of employees at over 41. Increasing the number of people employed also increases the positive social impact businesses have on the community, given women are the majority of employees and women use their wages to support their family and community.
T2 Business Feature: Lusaka Collective
Lusaka Collective is a growing T2 business located in the Lusaka province in the southeastern region of Zambia. Their mission is to be “a positive and creative space focused on uniting and supporting Zambian makers.” Founded in April of 2019, Lusaka Collective just reached its two-year anniversary, a defining point for a T2 business. There are distinct differences based on newer companies who have been in business for less than two years and older companies who have been in business for more than two years, as seen through Lusaka Collective’s growth. They have an established export business on their website, along with a regular social media presence on Instagram and Facebook.
A higher percentage of T2s in business for less than two years are located in the Lusaka province. Sales follow the expected path, with newer businesses having fewer sales. Seventy-nine percent of T2 new businesses are at less than 90,000ZK in sales or the respondent didn’t know their sales versus only twenty-seven percent of older T2s with less than 90,000ZK sales.
Newer T2s work with fewer piece workers with 59% working with less than three compared to 33% of older T2s working with less than three artisan piece workers. Newer T2s have a much higher propensity to work with female artisans, but there is a higher propensity for new companies to have their artisans work remotely (56% vs 41% of older T2s). The stronger, more experienced businesses are more conscious of their social and environmental impact.
Priorities for new T2s include marketing activities; 4 in the top 7 are related to marketing. The biggest gaps are developing sales materials, quality marketing content, new products, and tracking and analyzing sales data. Ensuring an online presence and creating a brand was high in both new and old groups.
As the Zambian industry continues to develop, more businesses will expand and productivity will continue to increase. For more information on the Zambian industry, click here.