BMI see strong signs of significant growth in the Zambian autos industry, thanks to a slew of industryspecific and macroeconomic developments taking place in the country. In addition to the increasing affordability among private consumers, we expect the trend of falling fuel prices to act as a major driver of vehicle demand in Zambia in the medium and longer term. Local news sources have reported that the fuel prices in the country are set to drop by as much as 30% as result of a US$3.3bn investment in new oil pipeline and refinery in Ndola.
Meanwhile, we expect regulations calling for used imported vehicles to meet specific safety standards to further provide upside for new vehicle demand in the country. Such regulations partly help reduce the price differential between used and new cars and possibly turn consumer preference towards new cars.