The construction industry in Zambia is expected to decline marginally by 0.4% in real terms in 2025, owing to a decline in advancement of loans for real estate sector, an increase in external debt, coupled with a decline in copper output. According to the Ministry of Finance, the value of loans issued for the real estate industry fell by 5.7% Year-on-Year (YoY) in the first seven months of 2025, preceded by an annual decline of 1.1% in 2024. According to the Zambia Statistics Agency, the construction industry’s value-add declined by 1% YoY in Q2 2025, preceded by a Y-o-Y decline of 11.1% in Q1 2025 and growth of 2.8% in Q4 2024. Furthermore, in November 2025, the Ministry of Mines and Minerals Development reported that Zambia's copper output fell in the second quarter of 2025, raising concerns about meeting the target of 1 million metric tons in 2025. In Q2 2025, production is estimated at 215,644 tons, a decrease of 4% compared to the previous quarter.
Over the remainder of the forecast period, the construction industry is expected to expand at an annual average growth rate of 4.2% during 2026-29, supported by investments in the development of transport, renewable energy, and mining projects, coupled with National Energy Advancement and Transformation Program (NEAT), which targets improvements in Zambia’s electricity sector by 2033. The program, with an investment of ZMK17.4 billion ($700 million), aims to improve the financial sustainability, reliability, and resilience of the Zambian government's power utility, ZESCO, while attracting private investment. Under the first phase of the program, a grant of ZMK2.5 billion ($100 million) was approved, which is scheduled for disbursement between 2024 and 2026 to strengthen ZESCO’s financial performance, improve operational reliability, and enhance electrification funding for the Rural Electrification Authority (REA). Additionally, the program will support the development of various non-hydropower renewable energy projects, furthering Zambia's energy diversification and sustainability objectives. In line with this, in August 2025, ZESCO Limited, and the Anzana Electric Group, a South African energy company announced a plan to invest ZMK7.5 billion ($300 million) for expansion of electricity access along the Zambian stretch of the Lobito Corridor, which is set to deliver first-time grid connections to nearly two million people by 2030.
Over the remainder of the forecast period, the construction industry is expected to expand at an annual average growth rate of 4.2% during 2026-29, supported by investments in the development of transport, renewable energy, and mining projects, coupled with National Energy Advancement and Transformation Program (NEAT), which targets improvements in Zambia’s electricity sector by 2033. The program, with an investment of ZMK17.4 billion ($700 million), aims to improve the financial sustainability, reliability, and resilience of the Zambian government's power utility, ZESCO, while attracting private investment. Under the first phase of the program, a grant of ZMK2.5 billion ($100 million) was approved, which is scheduled for disbursement between 2024 and 2026 to strengthen ZESCO’s financial performance, improve operational reliability, and enhance electrification funding for the Rural Electrification Authority (REA). Additionally, the program will support the development of various non-hydropower renewable energy projects, furthering Zambia's energy diversification and sustainability objectives. In line with this, in August 2025, ZESCO Limited, and the Anzana Electric Group, a South African energy company announced a plan to invest ZMK7.5 billion ($300 million) for expansion of electricity access along the Zambian stretch of the Lobito Corridor, which is set to deliver first-time grid connections to nearly two million people by 2030.
The Construction in Zambia - Country Briefing (H2 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.
Report 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
