Zambia’s construction industry was already in a weak condition prior to the Coronavirus (COVID-19) downturn in 2020. The construction industry is expected to have rebounded in 2021, growing by 6% in real terms, by easing restrictions on construction sites and mines, coupled with improvement in the business condition across the country. However, owing to the declines recorded in 2019 and 2020, the industry will not recover to the previous highs of 2018 until 2024.
Prior to the COVID-19 outbreak, the country’s economy was struggling due to rising public debt and low international commodity demand. The mining sector accounts for almost 65% of Zambia’s export earnings and 11% of its GDP, and given this heavy reliance on commodities, the country’s economy was hampered by low global demand for commodities amid the COVID-19 downturn. Moreover, in September 2020, the two major copper miners First Quantum Minerals and Lubambe Copper announced that they would halt their new ZMK36.7 billion (US$2 billion) mining investment due to increased royalty tax. In August 2021, however, with the formation of a new government, the deduction of the mineral royalty for corporate income tax assessment purposes was reintroduced. Accordingly, the miners are now ready to invest in mine expansion projects in 2022. In the 2022 Budget, the government also announced measures to attract local and international investments into the Multi Facility Economic Zone (MFEZ) by reintroducing a tax holiday. The government allocated ZMK362 million (US$15.8 million) - a 17.8% increase from the previous 2021 Budget to the Rural Electrification Programme, which is expected to attract new investment in power generation plants.
Over the forecast period, the industry is expected to expand at an annual average of 1.7% between 2022-2025, supported by government efforts to improve the country’s transport, energy, manufacturing, and housing sectors. The government is implementing the Link Zambia 8,000 project of transport infrastructures, which was launched in September 2012. The project involves paving 8,201km of road at an estimated cost of ZMK102.7 billion (US$5.6 billion). Moreover, the government aims to redevelop 2,000km of urban roads with an estimated cost of ZMK6.4 billion (US$348 million) over the next five years. In March 2020, the US-based company Railnet International announced plans to spend ZMK201.6 billion (US$11 billion) to develop a railway link between Zambia, Zimbabwe, and Mozambique. The government also plans to develop 2,874KM of rural road in the country between 2021-2025. The residential construction sector will be supported by government efforts to address housing shortages. Under the National Housing Policy 2021-2024, the government aims to provide affordable houses to all citizens by 2030. However, a surge in virus cases due to the emergence of a new variant of COVID-19 is expected to weigh on country’s economy, as well as weaken new investment opportunities in the short term.
This report provides detailed market analysis, information, and insights into Zambia’s construction industry, including:
This report provides a comprehensive analysis of the construction industry in Zambia. It provides:
Prior to the COVID-19 outbreak, the country’s economy was struggling due to rising public debt and low international commodity demand. The mining sector accounts for almost 65% of Zambia’s export earnings and 11% of its GDP, and given this heavy reliance on commodities, the country’s economy was hampered by low global demand for commodities amid the COVID-19 downturn. Moreover, in September 2020, the two major copper miners First Quantum Minerals and Lubambe Copper announced that they would halt their new ZMK36.7 billion (US$2 billion) mining investment due to increased royalty tax. In August 2021, however, with the formation of a new government, the deduction of the mineral royalty for corporate income tax assessment purposes was reintroduced. Accordingly, the miners are now ready to invest in mine expansion projects in 2022. In the 2022 Budget, the government also announced measures to attract local and international investments into the Multi Facility Economic Zone (MFEZ) by reintroducing a tax holiday. The government allocated ZMK362 million (US$15.8 million) - a 17.8% increase from the previous 2021 Budget to the Rural Electrification Programme, which is expected to attract new investment in power generation plants.
Over the forecast period, the industry is expected to expand at an annual average of 1.7% between 2022-2025, supported by government efforts to improve the country’s transport, energy, manufacturing, and housing sectors. The government is implementing the Link Zambia 8,000 project of transport infrastructures, which was launched in September 2012. The project involves paving 8,201km of road at an estimated cost of ZMK102.7 billion (US$5.6 billion). Moreover, the government aims to redevelop 2,000km of urban roads with an estimated cost of ZMK6.4 billion (US$348 million) over the next five years. In March 2020, the US-based company Railnet International announced plans to spend ZMK201.6 billion (US$11 billion) to develop a railway link between Zambia, Zimbabwe, and Mozambique. The government also plans to develop 2,874KM of rural road in the country between 2021-2025. The residential construction sector will be supported by government efforts to address housing shortages. Under the National Housing Policy 2021-2024, the government aims to provide affordable houses to all citizens by 2030. However, a surge in virus cases due to the emergence of a new variant of COVID-19 is expected to weigh on country’s economy, as well as weaken new investment opportunities in the short term.
This report provides detailed market analysis, information, and insights into Zambia’s construction industry, including:
- Zambia’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Zambia’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Zambia. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Zambia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the analyst's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1. Construction Outlook2. Construction Industry: At-a-Glance3. Latest News and Developments4. Project Analytics5. Construction Market Data6. Risk Profile
7. About the Analyst
List of Tables
List of Figures
