ZAMBIA TODAY – OCTOBER 2019
WHAT THE 2020 NATIONAL BUDGET SAYS ABOUT PROPERTY!
Finance Minister Bwalya Ng’andu unveiled a K106.0 billion 2020 national budget. In this article I looked at what the budget had to say and analysed it through a property perspective. Government policy has a huge impact on the property markets – the vastly improved road infrastructure is just one example. In the 2020 budget, government initiatives in certain sectors may present real estate opportunities for discerning investors – especially those looking beyond the expensive prices of Lusaka properties.
Health – The project to construct 650 health posts, of which 342 have been completed, will continue in 2020. Further, construction of health facilities to improve access to health services will continue with ongoing works for general hospitals in Petauke and Chinsali. These health posts and general hospitals will need accommodation for doctors, nurses, clinical officers, cleaners and a whole host of medical personnel.
Tourism – The focus will be on developing the Northern Circuit and following up on the pledges that were made during the provincial investment expos. Roads to and within the tourist sites will be rehabilitated. The priority will include enhanced promotion of the Lumangwe, Kalambo and Kabwelume water falls as well as revamping tourism activities around the Samfya Beach. As stated above – tourism is a fast growing sector and promotion of the Northern Circuit can lead to development of not only hospitality accommodation, but entertainment centres, training schools and other support services.
Transport – Works on the Copperbelt International Airport will continue in 2020 while the expanded and modernised Kenneth Kaunda International Airport is also scheduled to open next year. This massive project has already seen the development of large malls, manufacturing plants and residential estates. Not surprisingly properties in the surrounding areas have seen a huge increase in prices since the project was announced. In addition, the new COMESA headquarters is slated to move to the neighbourhood. Check out this LINK if you’d like to see what property we’re promoting in the area.
Education – there will be a focus on the on-going projects including completing construction of student hostels at the University of Zambia, Copperbelt University and Mulungushi University. This is something to take note of for those who have or are interested in constructing boarding houses. Completion of this project will bring on a new supply of rooms but the question is – how many rooms and will it be enough to meet demand? Will there still be room for other players offering different types of student accommodation, perhaps at different price points?
Housing and Community Amenities – this was allocated K247.9 million for the development of housing infrastructure. I have no idea what this is and there was no explanation! But I’ll aim to find out and report back to you – I’m intrigued.