ICRA Credit Rating Zambia uplifting trust in Zambia’s growing markets

Not every strong company is predictable and not every predictable company always performs well. Over the last few years, changing market conditions in Zambia have revealed a new type of organisation, one that does not just survive disruptions but evolves through them.

ICRA Zambia calls these organisations “Resilient Businesses.”

This is not a rating grade. It is not a label a company claims for itself. It is an observed pattern of behaviour that consistently appears in firms that outperform expectations during economic fluctuations. These organisations are emerging across industries like agriculture, logistics, services, and local manufacturing. And they are rewritten how stability is understood in Zambia’s corporate environment.

What Makes a Business “Resilient”?

From ICRA Zambia’s on-ground interactions and corporate assessments, resilience is not about size, revenue, or the age of the company. It is about response patterns that show up when situations become challenging.

Resilient Businesses behave differently in three key ways:

• They react early : When market signals shift, these companies move before pressure builds up. They adapt selling strategies, operational hours, supplier arrangements, or cost structures without waiting for a full downturn.
• They protect their core : Even during tough periods, they preserve the things that sustain their long-term strength. team capacity, customer loyalty, operational discipline, and compliance.
• They stay visible : They communicate more, not less. Suppliers, investors, communities, and partners always know what the company is doing and why.

ICRA Zambia notes that these behaviours often matter more than temporary financial dips. When the cycle turns positive again, these companies recover faster than others.

Why Are Resilient Businesses Becoming More Common in Zambia?

Three structural shifts are encouraging this new category to grow:

1. Economic Volatility Has Become Normal, Not Occasional

Currency movements, supply chain constraints, and changing regional conditions have made pressure periods more frequent. Companies have learned that waiting for stability is no longer an option.

2. Zambia’s Market Is Integrating More Closely With Neighbouring Economies

Trade links with DRC, Tanzania, South Africa, and Botswana create new opportunities, but also new risks. Companies that operate cross-border naturally develop sharper response strategies.

These shifts have created a landscape where firms either evolve or fall behind. Resilient Businesses are those that choose evolution.

Common Traits Observed by ICRA Zambia

While each company has its own character, ICRA Zambia has identified six traits that appear repeatedly in Resilient Businesses:

• Flexible cost models that allow temporary adjustments without damaging long-term capacity.
  
• Diversified supplier networks, especially for key inputs that are vulnerable to import delays.
  
• Internal information flow, meaning management receives real-time ground feedback from branches, agents, or distribution partners.
  
• Low-dependence decision-making, where strategy does not rely on single individuals.
  
• Preparedness for short-term cash pressure, through disciplined internal planning rather than external borrowing.
  
• Continuous learning, where teams actively monitor new tools, regulations, and regional trends.
  
  

What stands out is that these traits are behavioural, not financial. A smaller company can be more resilient than a larger one if its internal response system is stronger.

Introducing the ‘Resilience Indicator’ Concept

ICRA Zambia proposes a simple idea:

The Resilience Indicator, a non-rating, observational tool that helps identify how strongly a company will withstand uncertain environments.

It is not a score and not used as part of the formal rating methodology. Instead, it highlights areas that influence stability in real-world conditions.

This indicator allows organisations to understand the behavioural stability behind their financial stability.

How Resilient Businesses Shape Zambia’s Economic Future

As more companies display resilience, Zambia’s market gains a stronger base of enterprises that can withstand uncertainty.

These firms create:

• More predictable employment patterns
• Greater investor confidence
• Stronger local supply chains
• Reduced risk concentration in key industries
  
  

In the long term, this contributes to a healthier corporate environment, one where stability comes from behaviour, not just numbers.

A New Lens for Understanding Corporate Strength

The rise of Resilient Businesses shows that Zambia’s private sector is maturing.
ICRA Zambia believes that this new category will play a significant role in shaping how risk, stability, and opportunity are viewed in the coming years. As markets evolve, resilience will no longer be a hidden strength, it will become a defining one.