Dublin, May 14, 2024 (GLOBE NEWSWIRE) -- The "Zambia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Zambia is expected to grow by 2.4% in real terms in 2024, following an annual growth of 6.4% in 2023, supported by an improvement in the advancement of loans for construction activities, coupled with continuation of the 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 5% year on year (YoY) in the first eleven months of 2023, preceded by an annual decline of 12% in 2022. The construction industry will also be supported by an increase in the total expenditure as part of the latest budget unveiled by the Ministry of Finance and National Planning in September 2023, which includes a total expenditure of ZMK177.9 billion ($9.7 billion) for 2024, an increase of 6.3% compared to the 2023 Budget expenditure.
The major allocations include ZMK27.4 billion ($1.5 billion) for the education sector, ZMK20.9 billion ($1.1 billion) for healthcare sector, ZMK8.3 billion ($454.4 million) for road infrastructure works and ZMK2.7 billion ($147.9 million) for housing and community amenities. As part of the latest budget, the Ministry of Finance also reported that the country would receive ZMK87.7 billion ($5 billion) as foreign investment in 2024 in the field of manufacturing electric vehicle batteries, electric motorcycle assembly plant, renewable energy in wind and solar, as well as developing their pharmaceutical industry.
However, the construction industry is expected to face downside risks in the short terms, owing to high interest rate, amid rising inflationary pressures. In February 2024, the Bank of Zambia (BoZ) increased its interest rate by 150 points to reach 12.5% from 11% in November 2023. In February 2024, the BoZ also reported that it forecasts the inflation to remain higher than its 6-8% target band until the end of 2025.
Over the remainder of the forecast period, the construction industry is expected to expand at an annual average rate of 3.5% during 2025-28, supported by investments for the development of the transport sector, renewable energy, mining, manufacturing, residential and commercial construction projects. The construction industry's growth over the forecast period will also be supported by the government's goal of increasing annual copper production from 760,000 tons per annum as of 2022 to 3 million tons by 2030.
In line with this objective, in October 2023, Canadian mining giant Barrick Gold announced its plan for the construction of a copper processing plant by 2028 with a capacity of 50 million tons of ore annually at the Lumwana mine in Zambia with a total cost of ZMK36.5 billion ($2 billion). In December 2023, Australian management consulting company Lycopodium commenced the feasibility study of this project which will come to an end by Q4 2024.
Moreover, for the development of the tourism sector, the government is aiming to construct Kasaba Bay, Liuwa National Park and Eco-Tourism centers in the country with total investment of ZMK1.8 billion ($100 million) as part of the Eighth National Development Plan (2022-26). Additionally, the construction industry's growth over the forecast period will be supported by government's goal of generating 30% of total energy with renewable energy by 2030, as part of Vision 2030 that was launched in 2006.
To achieve this, the state-owned power company Zambia Electricity Supply Corporation (ZESCO) commenced the construction works of 100MW solar photovoltaic power generation project in Kabwe in February 2024. With an investment of ZMK2.6 billion ($145 million), the project is expected to be completed by 2026. Growth over the forecast period will also be supported by the government's goal of electrifying 1,217 rural growth centers by 2026 as part of the Rural Electrification Master Plan.
Scope
- Historical (2019-2023) and forecast (2024-2028) 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 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 critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Latest news and developments
4 Project analytics
5 Construction Market Data
6 Risk Profile
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/kn54bf
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