Zambia Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Zambia Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary

The construction industry in Zambia is expected to shrink by 8.9% in real terms this year and 3.6% next year, owing to weak investor and consumer confidence amid rising debt in the country, coupled with the government’s focus on improving its financial position. According to the International Monetary Fund (IMF), the country’s debt to GDP ratio reached 133% of GDP at the end of 2021. In early September 2022, the IMF announced that Zambia is seeking ZMK145.5 billion ($8.4 billion) in debt relief from foreign creditors, from 2022 to 2025. The IMF also reported that Zambia needs to bring down its debt service-to-revenue ratio to 14% by 2025, compared to 61% as of the end of H1 2022. In early October 2022, the Zambian Government announced that it plans to agree debt relief terms with official creditors by late 2022 or early 2023.

To address the country’s debt woes, the Zambian Government announced in July 2022 that it will cancel over ZMK34.6 billion ($2 billion)-worth of undisbursed loans. Some of the creditors of these undisbursed loans include Exim Bank of China, Industrial Commercial Bank of China, Jiangxi Bank, and the Israel Discount Bank. Of the total undisbursed loans, the government had cancelled ZMK27.7 billion ($1.6 billion)-worth of agreed-upon but not-disbursed Chinese loans. The government had ceased construction of several road, highway, and information and technology projects which are mostly funded by the China Exim Bank.

The Zambian construction industry is expected to start improving in 2024, however, supported by investments in the transport infrastructure, electricity, mining, and manufacturing sectors. As part of the 2023-25 Medium Term Budget Plan, the government announced that it will focus on stimulating the domestic economy by implementing measures that promote investments and expansion in key economic sectors, including -mining, manufacturing, energy, and tourism. Over the next three years, the government will also shift towards renewable energy, with a focus on boosting solar and geo-thermal power. It also plans to boost Public Private Partnership (PPP) for infrastructure development to address infrastructure gaps and reduce pressure on the Treasury.

The report provides detailed market analysis, information and insights into the Zambian construction industry, including -

• The Zambian 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 the Zambian 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 (2017-2021) and forecast (2022-2026) 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 GlobalData'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 GlobalData's critical and actionable insight.
• Assess business risks, including -cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.