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:


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.

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