Housing Finance in Zambia
Overview
This profile is also available in French here.
To download a pdf version of the full 2021 Zambia country profile, click here.
Zambia, like many other developing countries, continues to face unprecedented urbanisation levels, especially in Lusaka and the Copperbelt towns. As of 2021, the Zambian population was estimated at approximately 18.38 million people with a population growth rate of 2.93% and a density of approximately 25.45km2. At present, 40% of Zambia’s population lives in urban areas with an estimated 70% of this population living in informal settlements characterised by significant social, economic, and environmental problems. Access to affordable housing continues to be a worrisome issue for most Zambians, particularly the urban poor and vulnerable households that neither have the means to invest in decent housing, nor the ability to access credit or mortgages to meet their housing needs. The result has been the proliferation of informal settlements. Zambia’s housing deficit is estimated at 1.5 million units and is projected to increase to three million housing units by 2030 if no targeted efforts are made to reduce this figure.
Zambia’s economy has been growing steadily. Between 2000 and 2014, the annual real gross domestic product (GDP) growth rate averaged 6.8%. The GDP growth rate slowed to 3.1% per annum between 2015 and 2019, mainly attributed to falling copper prices and declines in agricultural output and hydroelectric power generation. In 2020, the economy of Zambia fell into a deep recession due to the adverse impact of COVID-19. Real GDP fell by an estimated 4.9% in 2020, after growing by 4.0% in 2018 and 1.9% in 2019. The output contraction is the result of an unprecedented deterioration in all the key sectors of the economy. Even before the pandemic, there were serious macroeconomic challenges, such as a high inflation rate, which reached 22.4% in February 2021, widening fiscal deficits, unsustainable debt levels, low international reserves, and tight liquidity.
Find out more information on the housing finance sector of Zambia, including key stakeholders, important policies and housing affordability:
- Overview
- Access to finance
- Affordability
- Housing supply
- Property markets
- Policy and Legislation
- Opportunities
- Availability of data on housing finance
- Urban Informality
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2021 edition, which has up-to-date profiles for 55 African countries.
Download yearbookZambia
Overview
Zambia is a landlocked country located in Southern Africa bordering Zimbabwe, Angola, Botswana, the Democratic Republic of the Congo, Malawi, Mozambique, Namibia, and Tanzania. Zambia is historically known as one of the world’s largest copper producers, however the country’s global share of production has vastly reduced over recent decades. The country has one of the highest urbanisation rates in Africa with 43 percent of households living in urban areas as of 2015.[1] Economic activity is concentrated in the Lusaka and Copperbelt provinces.
In 2019, Zambia’s copper sector, which dominates the country’s export economy, saw production drop due to new mining taxes. The 2018–2019 rainfall season was one of the poorest in the southern half of Zambia since 1981 and has negatively impacted agricultural production and hydro-electric power generation. The electricity shortages have massively contributed to the challenges facing the country’s economy.
Before the pandemic, Zambia had been facing several macroeconomic challenges. Economic growth declined from four percent in 2018, to an estimated two percent in 2019. High fiscal deficits have increased general government debt to 88 percent of GDP in 2019, from 32 percent in 2014.[2] Tightening liquidity conditions and high Government domestic financing needs have kept interest rates close to 30 percent.[3] The depreciation of the Zambian Kwacha against the US Dollar among other factors has largely contributed to inflationary pressures with inflation running above the Bank of Zambia’s (BOZ) six percent to eight percent target.[4] Zambia has also had multiple credit downgrades by rating agencies over the last year.[5]
COVID-19 has exacerbated the challenges facing Zambia’s economy, financial sector, and livelihoods. The BOZ forecasts the Zambian economy to contract for the first time in more than 20 years by 4.2 percent in 2020 from 2019’s growth of 1.9 percent.[6] Lower copper export earnings due to global demand falling and the supply chain breakdown is expected to reduce the revenue available to Government and lead to the sharp depreciation of the Kwacha. In the baseline scenario, the African Development Bank expects the fiscal deficit to widen to 8.9 percent in 2020 and 8.6 percent of GDP in 2021 from 2019’s 7.7 percent. [7] Lockdown measures at the onset of the pandemic have negatively affected the livelihoods of an estimated 90 percent of the workforce that earns their income on a daily basis in the informal sector. [8]
The Government through the Ministry of Finance and the Bank of Zambia has proposed several measures to mitigate the pandemic’s impact on the economy. On the fiscal side, a ZMW 8 Billion (US$ 441,671,464) COVID-19 bond has been issued to stimulate economic activity and support livelihoods, through the reopening of 5-7, 10 and 15 year bonds.[9] On the monetary side, the BOZ initiated a set of interventions to protect Zambia’s financial system stability, promote the wider adoption of digital financial services and mitigate the impact on the economy.[10] This includes the establishment of a ZMW 10 Billion (US$ 552,089,330.26) targeted medium term refinancing facility.[11] In addition, the BOZ revised the governance rules of the interbank foreign exchange market to reduce the volatility of the domestic currency. Since the pandemic began, The Monetary Policy Committee has twice lowered the policy rate by 225 basis points to 9.25 percent and subsequently by 125 basis points to 8 percent. [12]
The Ministry of Finance and BOZ virtually met with the International Monetary Fund (IMF) in June and July 2020 to discuss Zambia’s application for a COVID-19-related rapid credit facility. [13]Zambia’s success in securing the IMF’s financial assistance is currently dependent upon the country improving its classification of debt distress. [14] In the current economic environment, there is likely to be reduced investor confidence in the affordable housing segment until the onset of economic recovery.
[1] Central Statistical Office (2016). 2015 Living Conditions Monitoring Survey Report. https://www.zamstats.gov.zm/index.php/publications/category/27-living-conditions (Accessed 30 August 2019). Pg. 30.
[2] FitchRatings (2020). Zambia’s 2019 Debt Rise Highlights Fiscal Challenges. https://www.fitchratings.com/research/sovereigns/zambia-2019-debt-rise-highlights-fiscal-challenges-05-03-2020#:~:text=According%20to%20a%20fiscal%20update,the%20budget%20target%20of%206.5%25.&text=Zambia’s%202020%20Budget%2C%20approved%20in,deficit%20to%205.5%25%20of%20GDP. (Accessed 8 October 2020)
[3] Bank of Zambia (2020). Monetary Policy Committee Statement 20 May 2020. https://www.boz.zm/Monetary_Policy_Statement_May_2020.pdf (Accessed 8 October 2020).
[4] Ibid. Pg. 3.
[5] CbondS (n.d.). Zambia: Bonds. http://cbonds.com/countries/Zambia-bond (Accessed 11 September 2019).
[6] Bank of Zambia (2020). Monetary Policy Committee Statement 19 August 2020. https://boz.zm/monetary_policy_committee_statement_august_2020.pdf (Accessed 8 October 2020).
[7] African Development Bank (2020). African Development Bank (2020). Africa Economic Outlook: Supplement amid COVID-19. Pg. 107
[8] International Growth Centre (2012). The Informal Sector in Zambia. 22 April 2020. https://www.theigc.org/wp-content/uploads/2012/06/Kedia-Shah-2012-Working-Paper.pdf (Accessed 10 October 2020)
[9] Republic of Zambia (2020). Presentation to Creditors. 29 September 2020. https://www.mof.gov.zm/?wpfb_dl=283 . Accessed 12 October 2020.
[10] Bank of Zambia (2020). Press Statement- Measures in response to the deteriorating macroeconomic environment and the coronavirus. 3 April 2020. https://www.boz.zm/Pressstatement_measures_in_response_to_deteriorating_macroecomic_environment.pdf (Accessed 8 October 2020). Pg. 1.
[11] Ibid. Pg. 1.
[12] Bank of Zambia (2020). Monetary Policy Committee Statement 19 August 2020. https://boz.zm/monetary_policy_committee_statement_august_2020.pdf (Accessed 8 October 2020).
[13] IMF (2020). IMF Staff Completes Virtual Mission to Zambia Press Release No. 20/260. 15 July 2020. https://www.imf.org/en/News/Articles/2020/07/15/pr20260-zambia-imf-staff-completes-virtual-mission (Accessed 10 October 2020).
[14] Republic of Zambia (2020). Presentation to Creditors. 29 September 2020. https://www.mof.gov.zm/?wpfb_dl=283 . Accessed 12 October 2020.
Access to finance
Zambia’s lending interest rate stands at approximately 9.5% with mortgage rates typically 34% over a 20-year period. From January 2020 the kwacha depreciated against the dollar from approximately ZK14 per US$1 to approximately ZK22.61 per US$1 in July 2021 before appreciating sharply in August 2021 and rising to approximately ZK16.10 per US$1 on September 5. On 24 August 2021, Hakainde Hichilema was sworn in as Zambia’s seventh president. The kwacha appreciation followed the smooth transition of the new government. The overall financial performance and condition of the banking sector remained satisfactory in 2020 thanks to adequate capital, satisfactory earnings performance, and improved liquidity. This was despite the weak macroeconomic environment compounded by the negative effects of COVID-19 that affected asset quality and profitability.
In September 2021 Zambia National Building Society (ZNBS) launched the “Bwela Timange” mortgage promotion campaign to promote homeownership. As part of the launch, ZNBS is offering a reduced mortgage interest rate (from 24% to 21%), reduced arrangement fees, and 12 months free of principal repayment. The promotion was launched in partnership with BSI Steel Zambia who is offering up to 25% discount on all building materials and Lafarge Zambia Limited who are offering free delivery of materials.
The number of licensed commercial banks remains unchanged at 18. Nine of these banks are subsidiaries of foreign banks, five are locally-owned private banks, and four are partially owned by the government. The number of licensed non-bank financial institutions (NBFIs) dropped to 116 in 2020 from 119 in 2019 as license cancellations exceeded new issuances. Ten of the banking institutions offer mortgages, while NBFIs such as the Zambia National Building Society, the National Pension Scheme Authority, and other microfinance institutions have continued to play a significant role in providing housing finance.
Non-Performing Loans (NPLs) rose by 56.3% in 2020 against a decline of 0.5% in 2019 as macroeconomic conditions worsened in the wake of COVID-19. Consequently, the ratio of NPLs to total gross loans rose to 11.6% in 2020 from 8.9% at the end of December 2019. Reserves for potential loan losses increased by 31.8% to ZK8 billion (US$352.8 million) in 2020. Personal loans, as well as loans to the agriculture, forestry, fishing, and hunting sectors, continued to account for a significant proportion of lending.
The bureau de change subsector was adequately capitalised as at end-December 2020. The volume of transactions declined in 2020. Foreign currency sales decreased to ZK7 billion (US$308.7 million) in 2020 from ZK13 billion (US$573.4 million) in 2019. Foreign currency purchases also declined to ZK8.8 billion (US$388.1 million) from ZK13.1 billion (US$577.8 million). The drop in both sales and purchases was due to reduced cross-border activities because of COVID-19 lockdown measures. The bureau subsector predominantly supports cross-border traders and tourists, who were hard hit by restrictions imposed by several countries in the subregion.
Conversely, demand for government securities weakened in 2020 on the back of heightened investor aversion following successive downgrades of the country’s credit rating and also partly because of the pandemic decreasing economic activity. Subscription rates for Treasury Bills declined to 93% from 98% and Government Bonds to 37% from 62%.
In 2020, the Bank of Zambia took specific measures to enhance the resilience of the financial sector in the wake of COVID-19. Among those measures, the central bank established a ZK10 billion (US$441.0 million) fund targeted at a medium-term refinancing facility, with tenures ranging from three to five years for eligible financial service providers to on-lend to priority sectors and households. Despite the Bank of Zambia’s efforts, access to finance specifically for housing remains a challenge. The government’s annual budget, for instance, has not made any provision and/or allocation towards affordable housing but continues to rely on the financial markets and the goodwill of institutions, the private sector and civil society organisations to push the housing agenda for the country.
[1] FSD Zambia (2016), FinScope Survey 2015. https://www.fsdzambia.org/publication/finscope-2015/ (Accessed 11 September 2019). Pg. 15.
[2] Bank of Zambia (2020). BOZ Notice Interest Rates & Bank Charges as at June, 2020 (Excel sheet). https://www.boz.zm/CopyofJunePublication2020.pdf (Accessed 12 October 2020)
[3] Bank of Zambia (2020). Bank of Zambia 2019 Annual Report. https://www.boz.zm/AnnualReport2019.pdf (Accessed 10 October 2020).
[4] Bank of Zambia (2020). Credit Market Monitoring Report 2020 Q2 (Excel sheet). https://www.boz.zm/CMMPCreditData2020Q2.xlsx (Accessed 12 October 2020). UARE calculations.
[5] Tembo.E, Minango.J, Sommerville.M (2019). Zambia’s National Land Titling Programme- challenges and opportunities. https://www.land-links.org/wp-content/uploads/2018/03/Session-06-05-Tembo-153_paper.pdf (Accessed 12 October 2020). Pg.2
[6] Bank of Zambia (2020). BOZ Notice Interest Rates & Bank Charges as at June, 2020 (Excel sheet). https://www.boz.zm/CopyofJunePublication2020.pdf (Accessed 12 October 2020)
[7] FSD Zambia (2020). PRESS RELEASE: FSD Zambia Covid-19 impact survey results.31 July 2020. https://www.fsdzambia.org/news-item/press-release-fsd-zambia-impact-survey-results/ (Accessed 11 October 2020)
[8] Vyas. V and Amin. A (2020). Zambian micro- and small enterprises during COVID-19: Wave One Findings. 20 August 2020. https://bfaglobal.com/covid-19/insights/zambia-msmes-during-covid-19/ (Accessed 11 October 2020)
[9] KPMG Zambia (2020). Government and institution measures in response to COVID-19. 15 April 2020. https://home.kpmg/xx/en/home/insights/2020/04/zambia-government-and-institution-measures-in-response-to-covid.html (Accessed 11 October 2020)
[10] Bank of Zambia (2020). Press Statement- Measures in response to the deteriorating macroeconomic environment and the coronavirus. 3 April 2020. https://www.boz.zm/Pressstatement_measures_in_response_to_deteriorating_macroecomic_environment.pdf (Accessed 8 October 2020). Pg. 1.
[11] Ibid.Pg. 1.
Affordability
Poverty levels remain high and widespread in Zambia, with 60% of the population living below the poverty line and 42% living in extreme poverty. Poverty prevalence is generally higher in rural and remote areas but is also concentrated in urban areas. Urban poverty keeps rising as urban populations continue to grow while opportunities for employment or self-employment are unavailable. The unemployment rate was 12.2% in 2020 a slight decrease from 13.2% in 2019.
The average national income is ZK4 010 (US$177) with the household sector earning ZK1 597 (US$70) making almost everyone in these brackets unable to afford a decent house. This is further exacerbated by the high-interest rates on loans and mortgages, ranging between 24% and 34%. Housing mortgages and financing range between ZK565 250 (US$25 000) and ZK1350 000 (US$60 000) depending on the type of house and repayment or loan settlement terms agreed on. The housing deficit is mainly among low-income earners and people living in informal settlements who do not meet the criteria to access credit and mortgages through banks and NBFIs. This has worsened during the pandemic. During the first and second waves of COVID-19 (January 2020 to December 2020), the government encouraged landlords and property owners to offer rent relief in view of the devastating economic impacts of COVID-19. This also resulted in the Zambia Revenue Authority providing tax breaks of withholding tax on rental income. However, the notion of “living in the new normal” has seen all such relief lifted, with people required to meet their obligations again despite Zambia still battling the third wave of the pandemic.
[1] Central Statistical Office (2020). 2019 Labour Force Survey Report. https://www.zamstats.gov.zm/phocadownload/Labour/2019%20Labour%20Force%20Report.pdf (Accessed 10 October 2020) Pg. 71
[2] Central Statistical Office (2016). 2015 Living Conditions Monitoring Survey Report. Pg. 16.
[3] NAPSA (2020). Napsa Offers Rental Relief to Its Tenants. 2 June 2020. https://www.napsa.co.zm/napsa-offers-rental-relief-to-its-tenants/ (Accessed 13 October 2020)
[4] UNDP (2020). Mitigating the Socio-economic Impact of Covid-19 in Zambia: A Rapid Assessment. April 2020. https://cuts-lusaka.org/pdf/policy-brief-mitigating-the-socio-economic-impact-of-covid-19-in-zambia.pdf (Accessed 12 October 2020)
Housing supply
The government continues to grapple with providing decent and affordable housing for all, in line with the vision of the National Housing Policy 2020-2024. The housing deficit is more than 1.5 million housing units, a trend expected to increase to a projected 3.3 million housing units by 2030. The country produces approximately 73 000 housing units a year of which only 40% meet minimum requirements for health and sanitation in accordance with the Zambia Public Health Act, and this falls tremendously short of the 220 000 new houses that need to be constructed between 2016 and 2030 to meet the backlog. Furthermore, only 3 152 low and medium-cost houses were constructed by the government from 2017 to 2019.
Housing development across the country, particularly in urban areas, has mainly been driven by entities and initiatives such as the National Housing Empowerment Fund, the National Pensions Scheme Authority, the Zambia National Building Society, and banking institutions. However, these opportunities remain largely untapped, especially by low-income households due to the perceived high-interest rates and exploitative/unfavorable lending conditions. Civil society organisations such as Habitat for Humanity Zambia and People’s Process on Housing and Poverty in Zambia have partnered with institutions such as Stanbic Bank, Lafarge, and Standard Chartered Bank to support and construct social housing for vulnerable households across the country.
Housing poverty is more pronounced in the urban areas, with 39.5% of the population living in urban areas in 2010, up from 34.7% in 2000. This rapid urbanisation has accelerated the growth of informal settlements and 70% of urban residencies are characterised by inadequate basic services such as, but not limited to, decent housing, security of tenure, roads, reticulated water, and sewerage.
The Government of Zambia through the Ministry of Local Government launched the Integrated Development Planning Guidelines in 2019, as per the provisions of the Urban and Regional Planning Act of No. 3 of 2015 and the Seventh National Development Plan (7NDP), which recognises the Integrated Development Plans (IDPs) as the primary tool for implementation at the local level. IDPs provide a basis and opportunity for improved planning, land management, infrastructure, and service provision to facilitate housing delivery and, as such, their implementation is essential if Zambia is to improve its housing supply and enhance human settlement development. To complement the IDPs, the Ministry of Local Government had earlier launched the Sustainable Housing Guidelines in 2016 with support from International Labour Office Zambia Green Jobs Project. The aim was to support housing development that responds to global climate trends and ensure a response to local sustainable development priorities in an integrated way.
[1]Central Statistical Office (2020). 2019 Labour Force Survey Report. https://www.zamstats.gov.zm/phocadownload/Labour/2019%20Labour%20Force%20Report.pdf (Accessed 10 October 2020) Pg. 8
[2] Central Statistical Office (2016). 2015 Living Conditions Monitoring Survey Report.
[3] Shilangwa. E (2019). Stanbic puts its weight behind Zambia’s project to construct 1 000 houses for the poor. 3 August 2019. https://www.iol.co.za/business-report/international/stanbic-puts-its-weight-behind-zambias-project-to-construct-1-000-houses-for-the-poor-30190119 (Accessed 10 October 2020)
[4] Habitat for Humanity Zambia (2020). Zambia Country Profile. https://www.habitat.org/sites/default/files/documents/Zambia%20Country.pdf (Accessed 10 October 2020). Pg. 1
[5] Pension and Insurance Authority (2020). 2019 Annual Report. https://www.pia.org.zm/annual-report/# (Accessed 10 October 2020). Pg.14
[6] Ibid.Pg.47
[7] Xinhua (2020). Chinese firm hands over 2,000 housing units in Zambia. 21 June 2020. http://www.xinhuanet.com/english/2020-06/21/c_139154439.htm (Accessed 10 October 2020).
[8] UNDP (2020). Mitigating the Socio-economic Impact of Covid-19 in Zambia: A Rapid Assessment. April 2020. https://cuts-lusaka.org/pdf/policy-brief-mitigating-the-socio-economic-impact-of-covid-19-in-zambia.pdf (Accessed 12 October 2020)
[9] CGTN Africa (2020). 160 houses destroyed as rains wreak havoc in eastern Zambia. 13 October 2020. https://africa.cgtn.com/2020/10/12/160-houses-destroyed-as-rains-wreak-havoc-in-eastern-zambia/ (Accessed 13 October 2020)
Property markets
Zambia is currently experiencing a relatively high construction boom in residential, commercial, and public infrastructure despite the global pandemic. However, higher-end residential dwellings have been affected by reduced rental pricing due to the previous high exchange rates. Many expatriates (the main target market for this sector) have left the country and those who have remained are bargaining for lower rents due to house allowances being cut. There is no demand from local tenants. The middle to low market, however, has not witnessed many tenants moving out due to the pandemic as fewer new tenants are looking to rent property for the first time or simply changing their property for various reasons.
Nevertheless, there are new investment properties in the market with increase construction in Lusaka in the last half decade. Developers have seen Lusaka as the ideal investment area, especially for high-end apartment complexes with modern fittings and newer building styles on locations that are highly accessible. This trend resonates with Zambia’s ranking as the fifth country on the Global Real Estate Transparency Index 2020 as the most transparent property market in Africa.
However, the number of prospective tenants in the last year has plunged due to COVID-19, making the residential market a renter’s markets. The past half decade has seen mostly middle to high-end residential properties, with expatriates, corporates, business individuals and a small number of tourists forming the major target market.
The residential property market is mainly characterised by self-build homes that are set up for rental or owner-occupied. Considering that the housing market is to a greater extent informal, there are relatively few turnkey projects as prospective homeowners have to meet the development costs that include obtaining a land title for the property, drilling a borehole for water, and putting in an onsite sanitation mechanism such as a septic tank.
The informal property market is bigger than the formal market, the result of the number of unlicensed agents flooding the market or informal trading of property. The country has both formal and informal estate agents. The Zambia Institute of Real Estate Agents (ZIEA) is the governing body for real estate agents and was established under the Estate Agents Act No. 21 of 2000 to formalise the real estate practice in Zambia. A formal real estate agent can be identified as someone who has registered and is licensed with ZIEA to operate as an estate agent. They may be either attached to an organisation (real estate firm) or operate independently (not operating from an office). An informal real estate agent is not licensed or registered with ZIEA but still practices as an estate agent. They are normally referred to as “street agents”. ZIEA, unfortunately, has been handicapped in enforcing its mandate, particularly in curtailing informal estate agents.
[1] Jones Lang Lasalle (2020). Real Estate Transparency Index 2020. https://www.jll.co.za/content/dam/jll-com/documents/pdf/research/jll-and-lasalle-global-real-estate-transparency-index-2020.pdf (Accessed 10 October 2020). Pg. 41
[2] Urban Africa (2019). Zambia Property Investment Database. (Accessed 30 August 2019). Unpublished.
[3] Tembo, E., Minango, J. and Sommerville, M. (2018). Zambia’s National Land Titling Programme – challenges and opportunities. Land Links. https://www.land-links.org/wp-content/uploads/2018/03/Session-06-05-Tembo-153_paper.pdf (Accessed 11 September 2019). Pg. 2.
[4] Lusaka Times (2019). A title deed application is supposed to be processed within two weeks – Kapata. Lusaka Times.
[5] Land Links (2017). Country Profiles Zambia. https://www.land-links.org/country-profile/zambia/ (Accessed 25 August 2019).
[6] Zambia Institute of Estate Agents (2020). Updated List of ZIEA Paid-Up Members. http://ziea.org/images/2020-Updated-List-of-ZIEA-Paid-Up-Members.pdf (Accessed 11 October 2020).
Policy and Legislation
The government through the Ministry of Housing and Infrastructure Development launched the National Housing Policy 2020-2024 alongside its Implementation Plan. The policy vision is to provide “affordable and decent housing for all.” The policy measures are aimed at managing urbanisation in a sustainable way, with efforts to upgrade existing informal settlements, while preventing the proliferation of new ones. In 2021, the government through the Ministry of Lands and Natural Resources launched the long-awaited National Lands Policy (2021) that had been in draft form since 2005. The policy has the vision to have, “A transparent land administration and management system for inclusive sustainable development by the year 2035,” providing eight policy objectives and a series of policy measures. In addition, the government through the Ministry of Local Government with support from the United Nations Human Settlements Programme (UN-Habitat), has developed a draft National Urbanisation Policy aimed at sustainably managing urbanisation in towns and cities across the country. The draft policy strategically takes advantage of the phenomenal urbanisation process in Zambia to derive socio-economic benefits such as improved housing and supporting basic services, as well as the employment creation that comes with it and the contribution to GDP.
These new policies are all linked to comprehensively addressing the inevitable increased demand for land and decent housing. Regardless of the challenges faced by the government in promoting gender equality for land and property ownership, the National Lands Policy (2021) distinctly highlights a policy measure to ensure 50% of available land is allocated to women. This measure is equally echoed in the National Gender Policy (2014).
Owing to the financial and technical challenges central and local governments face in delivering housing, the National Housing Policy identifies sustainable partnerships as one of its guiding principles through public private partnerships for both housing construction and housing finance. The government, therefore, to a greater extent, confines itself to providing an enabling policy and macroeconomic environment so that non-state players can effectively deliver housing.
[1] World Bank (2019). Doing Business 2019 Training for Reform Economy. Pg. 151.
Opportunities
The Party Manifesto (2021-2026) of the new United Party for National Development government details policy measures it seeks to implement to improve the economy as well as the investor climate. The manifesto highlights measures to support private sector development and alleviate barriers to business entry and operations. It provides some policy measures to facilitate equitable access to land, and management systems to ensure future urban development.
Other urban development policies, namely the National Housing Policy (2020- 2024) and the National Lands Policy (2021), are also in place. This is following years of intensive consultation with stakeholders and provides clear policy direction on land and housing development.
[1] Bank of Zambia (2019). Monetary Policy Committee Statement 21 August 2019.
Availability of data on housing finance
Data on housing finance is relatively scarce in Zambia with a few banking and non-banking financial institutions making significant efforts to aggregate data on housing finance.
The Bank of Zambia has over the years been actively collating macroeconomic data and analysis of NPLs. However, data on housing finance has not been addressed or highlighted. Development banks such as the Development Bank of Zambia, pension and provident funds such as the National Pensions Scheme Authority and the Public Sector Pension Fund, commercial banks, building societies such as the Zambia National Building Society, microfinance institutions, and insurance companies are playing a major role in data provision for the housing finance and provision sector.
The population and housing census is one of the major data sources for the country and is undertaken every 10 years. The 2020 Census of population and housing for 2020 was deferred to 2021 due to the pandemic and is yet to be done. Available data, particularly on mortgages, is readily available with presiding institutions and on online platforms.
The housing sector is quite a robust and capital-intensive undertaking and scarcity of housing finance data are in part due to:
■ Lack of data aggregation and collection on housing finance.
■ Housing finance data largely excludes most of Zambia’s population who access financing through informal options.
Urban Informality
Zambia has one of the highest urbanisation rates in Sub-Sharan Africa at 4.14% per annum. The relatively high urbanisation rate has resulted in the proliferation and continued growth of informal settlements, where 70% of urban dwellers live. These settlements are characterised by inadequate and, in some instances, non-existent basic services.
In 2019, the country launched the Participatory Slum Upgrading Programme III with support from the UN-Habitat, in line with the government’s effort to upgrade unplanned settlements through participatory processes. In the same year, 298 informal settlements were formalised and 52 049 households were issued with occupancy licences against the 2021 7NDP targets of formalising 15 informal settlements and issuing 10 000 occupancy licences.
Websites
Bank of Zambia htpps://www.boz.zm/
Zambia Ministry of Infrastructure, Housing and Urban Development
Zambia Central Statistical Office https://www.zamstats.gov.zm/
Zambia National Building Society https://www.znbs.co.zm/
National Housing Authority https://real-estate-zambia.beforward.jp/
National Housing Empowerment Fund https://www.nhef.co.zm/
National Pensions Scheme Authority https://www.napsa.co.zm/
Palm Golding Properties https://www.pamgolding.co.za/
Horizon Properties https://thehorizonproperties.com/
Zambian Home Loans www.zambianhomeloans
