Infrastructure development remains a major challenge to growth, economic diversification, and human development in Zambia. Areas for development in this sector include investment in health, education, and water and sanitation; increased power generation capacity through upgrading and construction of new generation facilities and use of alternative energy sources; improving and expanding the rail network to reduce the burden placed on road infrastructure; and constructing additional inter-provincial and inter-district roads to open up the country through the Link Zambia 8000 project. Zambia is estimated to have a housing shortage of 1.5 million housing units, and some 110,000 units will need to be constructed per year for the next ten years to clear the backlog. Despite a continued need for new infrastructure investment, the Zambian government’s financing ability will likely be constrained over the short-to-medium-term as it embarks on fiscal reforms and renegotiates existing debts with commercial creditors.
Sub-Sector Best Prospects
Zambia is implementing the Link Zambia 8000 project, which seeks to transform the country from land-locked to land-linked. The project involves paving 8,201 km of road at an estimated cost of $5.6 billion. Zambia is expanding collection of road tolls on major roads to fund road maintenance and broaden financing options for road infrastructure development, such as the Pave Zambia 2000 program, which is aimed at rehabilitation of 2000 km of urban roads; and the L400 project, which is constructing or rehabilitating 400 km of Lusaka urban roads at a cost of $348 million.
Providing finance for housing and other infrastructure projects is another opportunity for U.S. investors. Zambia has a critical shortage of housing estimated to be about 1.5 million units countrywide and the government recommends an annual delivery rate of 110,000 units per year to meet demand in the next ten years. The government is actively seeking further infrastructure development through Public-Private Partnerships (PPP) projects. Other areas include the mining industry, shopping center construction, commercial real estate development, rail, and other transport networks.
Key government and regulatory agencies:
Ministry of Infrastructure, Housing & Urban Development
Stand Number 28, United Nations P.O. Box 50235 RIDGEWAY,
Tel: +260 211 252 366 | +260 211 254 108
Road Development Agency
HQ Government Road, Ridgeway
P.O. Box 50003
Tel: +260 211 253 088 | +260 211 253 801
Fax: +260 211 253 404
Zambia Environmental Management Authority (ZEMA)
Plot No. 6975, Corner Church and Suez Roads
P.O. Box 35131
Tel: +260 211 254 130 | +260 211 254 164
National Construction for Council
Plot 1609/1625, Luchengo Road, Off Sheki Sheki Road,
Light Industrial Area, Emmasdale
P.O Box 39548
Tel: +260 968 926795 +260 1 247185/240386
Fax:+260 1 243115/247264