INVEST AS A CLUB – The affordable option to get your foot on the lucrative Zambian property ladder

Last month we shared with you the trend of suburbs spreading out from the urban cities. This trend is very prominent in Lusaka where residential areas have been springing up in what were previously agricultural and undeveloped areas such as Chongwe, Lilayi and Foxdale. Today we put the focus on New Kasama which was once sparsely populated and with limited development just over a decade ago. These areas have seen amazing investment returns, where prices have increased four-fold in just over 10 years – and these are just conservative estimates!

  • From under $5000 per acre in 2005
  • To over $20,000 per acre currently

Diaspora Connect features a fantastic opportunity to get a foothold in this still upcoming area. Located about 20km from the upmarket suburb of Kabulonga, Leopards Rock is located in the picturesque rolling hills of New Kasama. Residents can enjoy nearby excursions to the motocross park, horse riding at the stables or eat at nearby cafes and restaurants that have began dotting the area. New Kasama is also home to the Lusaka South multi – facility economic zone (MFEZ), a government-designated industrial area which has seen the construction of multi-million dollar manufacturing plants, serving to increase property prices in the area. Leopards Rock successfully sold out phase 1 of its plots and there are only 15 plots remaining in phase 2!

*2027 estimated price per acre


Plots range from 3.5 to 9 acres at a price of $10,000 plus a power contribution of $6000 to have each plot connected to the ZESCO grid. The development offers two communal boreholes for water, which buyers can connect to at their own cost. However, each plot owner is encouraged to drill their own borehole at some point in the future. With the 3.5-acre plots having sold out, the smallest plot available is 4.66 acres and starts at $52,600 inclusive of the power contribution. What is the best way for you to take advantage of this opportunity if you don’t have the cash to purchase one plot – invest as a club! Bring together 4 or 5 of your Zambia friends or associates and benefit from lower costs all round.

What is the best way for you to take advantage of this opportunity if you don’t have the cash to purchase one plot – invest as a club! Bring together 4 or 5 of your Zambian friends or associates and benefit from lower costs all round.

For example:

If five of you were to invest in a 4.66-acre plot currently available for sale:

  • each person would have to pay $10,520 instead of the full purchase price of $52,600.
  • Furthermore, Leopards Rock provides payment terms and accepts payment over a 12 month period.
  • After an initial 10% deposit of $1,052.00 each person’s monthly payments would be as low as $789 per month!
  • A bargain for a share of the overall plot in an area that has quadrupled in value in just 10 years.

But you may be thinking, why invest as a club, particularly on this property? The reasons are numerous:

  • Aside from sharing the costs of acquiring the property, you can share other costs as well, such as registration fees and legal fees to get your combined title deeds.
  • Should you choose to subdivide the property in the future so that each person can have their own title deeds, the cost of subdivision can also be shared amongst members of the club.
  • Each member can build their own home at their own pace according to their own affordability or the members can further take advantage of economies of scale to negotiate discounts by hiring one construction team to build on their behalf.
  • In addition, the cost of amenities such as a swimming pool, outdoor entertainment area etc can be shared or paid for individually.

What happens if one person is not able to keep up with their payments towards buying the plot? One person’s default can jeopardise the entire group’s purchase. Have a simple written agreement stating what happens in this scenario. You may agree that the remaining members can bring in someone to take over the defaulting member’s payments. You will need to agree upfront if the defaulting member’s payments should be reimbursed less costs or forfeited in order to enforce commitment.

Another option is to structure your club as a company with the members as initial shareholders. A simple shareholders agreement can spell out what would happen in the event of a default and how the defaulting member’s shares could be sold to a third party or the existing members of the group. Diaspora Connect can advise you on the best structure for your club.

Start putting your club together so you can take advantage of this amazing opportunity as soon as possible!

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