The analyst expects growth in the construction industry in Zambia to record 5% in real terms in 2025 following from a growth of 6.6% in 2024, evidenced by an improvement in the construction loans issued which reflect a buoyancy in ongoing construction works. According to the Ministry of Finance, the total value of loans provided to the private sector for the construction industry grew by 38.3% Year-on-Year (YoY) in the first eleven months of 2024, preceded by an annual decline of 9% in 2023. However, in a negative development for construction as well as other industries, in February 2025, the Zambian central bank raised the lending rates by 50 basis points, taking the lending rate to 14.5%, which is at the highest level since 2016. This increment is in line with the central bank's target of bringing down the inflation rate well within its target range of 6-8%, which was trending at three-year high rate of 16.7% in January 2025. In September 2024, the Ministry of Finance and National Planning unveiled the budget for 2025, which includes a total expenditure of ZMK217.1 billion ($9.8 billion), marking an increase of 22% compared to the 2024 budget. Some of the major allocations under the 2025 budget include ZMK31.5 billion ($1.4 billion) for education, ZMK23.2 billion ($1.1 billion) for healthcare, ZMK12 billion ($543.4 million) for road construction, and ZMK3 billion ($135.9 million) for housing and community services. The budget also includes funds for the rehabilitation of 238km of road network from Serenje to Mpika; rehabilitation and maintenance of 222km of Chipata-Lundazi Old Magodi Road and 116km of Landless-Mumbwa Road; construction of 12 new dams, rehabilitation of 14, and maintenance of 385 existing dams in 2025; construction of five dams in Katete, Nkeyema, Kalomo, Mulobezi, and Pemba districts; and construction of an additional 100 waterborne sanitation facilities in 2025.
Over the remainder of the forecast period, the construction industry is expected to expand at an annual average of 3.7% during 2026-29, supported by investments for the development of the transport, renewable energy, mining, manufacturing, and residential construction projects. The government's emphasis on developing the mining sector in the country, especially for copper, as it is one of the top contributors to the GDP, will boost the Zambian construction industry’s growth. According to the analyst’s pipeline of projects, multiple copper projects are under execution phase with a combined value of ZMK99.7 billion ($4 billion) and are scheduled to be completed by 2028. The copper initiative will also be supported by the Zambian government, which has announced in March 2025, to increase the production capacity of copper to 3.1 million tons per annum by 2031 from 904,633.8 tons in 2024. In line with this, the government started the construction work of the Lumwana Mine Super Pit Expansion Project in October 2024. The facility will have a production capacity of 240,000 tons annually for over 30 years. With a total investment of ZMK49.8 billion ($2 billion), the construction of this project is expected to be completed by 2028.
Over the remainder of the forecast period, the construction industry is expected to expand at an annual average of 3.7% during 2026-29, supported by investments for the development of the transport, renewable energy, mining, manufacturing, and residential construction projects. The government's emphasis on developing the mining sector in the country, especially for copper, as it is one of the top contributors to the GDP, will boost the Zambian construction industry’s growth. According to the analyst’s pipeline of projects, multiple copper projects are under execution phase with a combined value of ZMK99.7 billion ($4 billion) and are scheduled to be completed by 2028. The copper initiative will also be supported by the Zambian government, which has announced in March 2025, to increase the production capacity of copper to 3.1 million tons per annum by 2031 from 904,633.8 tons in 2024. In line with this, the government started the construction work of the Lumwana Mine Super Pit Expansion Project in October 2024. The facility will have a production capacity of 240,000 tons annually for over 30 years. With a total investment of ZMK49.8 billion ($2 billion), the construction of this project is expected to be completed by 2028.
The Construction in Zambia - Country Briefing (H1 2025) 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 (2020-2024) and forecast (2025-2029) 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 our 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 business strategies 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. Executive Summary2. Construction Industry: At-a-Glance3. Latest news and developments4. Project analytics5. Construction Market Data6. Risk Profile
7. Appendix
List of Tables
List of Figures
