Bigger infrastructure needed for economic growth


ZAMBIA’S infrastructure is not adequate to support the country’s growing economy,  according to the country’s 2015 ‘Research and Markets’ report by Business Wire.

The report provides a comprehensive industry profile, analysis and outlook of Zambia’s infrastructure sector.

According to the report obtained by Daily Nation, Zambia had a relatively undeveloped microfinance sector by regional standards while access to finance and mortgage was limited.

The report says Zambia’s tourism sector suffered from poor infrastructure that prevented its exploitation, and this included inadequate airport infrastructure and lack of a large-scale airline operator.

It further reports that the energy sector suffers massive power cuts and yet Zambia boasts of having at least 40 percent of the water body in the sub-region.

The report also points out that there is a huge financing gap in Zambia’s infrastructure sector.

There is also need to develo0p solar projects that could exploit the ever present sunshine.

Private sector financing was seen as source of alternative financing for infrastructure development.

However, the report says in terms of value, construction was the second largest sector, after wholesale and retail trade, and industry in Zambia.

It said the construction sector was expected to remain in its double digit growth in the mid-term and that activity in the sector would continue to be driven by public and private infrastructure projects.

Zambia’s relative political stability, economic growth boosted by its mining activities and growing middle class mean that infrastructure demanded to continue growing in major urban areas around Zambia.

Widespread development in commercial infrastructure, transport and energy facilities coupled with increased Government investment would drive long-term growth in infrastructure.

It also says demand was unmet in the affordable housing segment, which presented  good opportunities and growth potential, adding that increased investments from China and South Africa were also driving residential and commercial property demand.