- Retail, residential and commercial property will offer investment returns in emerging economic hubs such as Solwezi
- Central Bank outlook of 7 percent economic growth for 2013 reflects continued investment flows into Zambian economy
Zambia’s investment in 2013 outlook points towards continued inflows into the economy as the country competes for foreign investment on the continent. The indicators for new investments remain favourable with among others, mining, agriculture and infrastructure development set to benefit over the course of the year.
Imara, the investment banking and asset management group renowned for its knowledge of African markets, sees Zambia’s investment outlook as positive in the year ahead.
Imara notes that the size of foreign direct investment into both sectors remains impressive with the discovery of copper in the north west of Zambia around Solwezi fueling enormous investment programmes being implemented by First Quantum Minerals and Barrick.
With First Quantum reportedly investing $1.5 billion, enabling the Canadians to produce
750, 000 tonnes of copper – equal to Zambia’s current production, the potential for Solwezi to grow as a commercial hub in the region will be immense.
On the other hand, Barrick is investing for the long-term as well. A whole new town is being built with an expected initial population of 100, 000 people, all requiring roads, housing, shops etc – all good for Zambian companies that manufacture or sell consumer goods. The Central Bank has also recently forecasted growth to reach 7 percent by the end of 2013 with inflation set to close the year at around 6 percent.
Pam Golding Properties Zambia sees these investments, coupled with the Zambian Government’s investment into road rehabilitation and development works countrywide as well poised to stimulate increased investment into not only in mining but sectors that offer good opportunity for growth including construction, manufacturing and agriculture.
Infrastructure development will support investments beyond the traditional line of rail where saturation is emerging for retail, residential and commercial property. On the plus side, the Link 8000 project will see the construction of major roads across the country which will be a major driver of economic development as the country looks to improve connectivity between major cities and towns.
We expect investment returns for our clients to be registered in the development of retail, commercial and residential property in emerging economic hubs such as Solwezi in 2013. This is due to a current shortage in supply where the growing population is outstripping existing infrastructure.
The housing market across Zambia is still faring positively and could yet see better performance as increasing demand for accommodation could spur developers to invest in mid to high end residential offerings over the next two years.
The general sentiment is that steady economic performance will continue to attract investors to Zambia, bringing about a favourable environment for investment not only in the immediate future but long-term where current projects in mining and infrastructure development will mature and yield considerably positive returns for investors that make their move now.