Real Estate Investor Magazine South Africa February 2015 | Page 62

AFRICA

BY ALEXANDRA BURGER

Zambianglance
property at a
Investing in commercial
property in Zambia

Z

ambia has enjoyed a long period of political
stability and has experienced five multi-party
elections since 1991. Zambia has a British Style
parliamentary democracy, elections are held every five
years and the presidency is limited by the constitution
to stay for two five year terms.
Zambia’s real Growth Domestic Product (GDP)
growth has been robust and is projected to increase to
7.4% in 2015 while inflation is expected to decrease. The
growth in real GDP is largely a result in the growth in
mining (with copper as the mainstay), manufacturing,
construction, transport, communications and energy.
The Government has continued to strengthen fiscal
governance and democratic processes and is making an
effort to widen the tax base. The government’s focus is
on job creation with the plan to create 200 000 decent
jobs per annum. (Source AfDB,OECD,UNDP)
Zambia is both a member of the Common Market
for Eastern and Southern Africa (COMESA) and the
South African Development Community (SADC). It
thus enjoys duty free access to two key African markets.
Zambia’s financial sector is relatively small but is the
fastest growing, which accounted for 7% in 2014.
The government’s increased allocation for
infrastructure for road projects and increased
industrialisation, through the promotion of industrial
parks and multi-faceted economic zones in key areas
will drive construction and development.
The economic performance has improved urban

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February 2015 SA Real Estate Investor

areas but the rural areas have been left behind with
poverty at over 60%. An estimated 11.5 Million people
are concentrated in a few urban zones along the main
transportation corridors.
Despite the improvements, there are still concern