Growth in Zambia Construction Sector Likely in H2 2016

zambia construction sector growth

The construction markets in Zambia are likely to grow in H2 2016 thanks to the end of the electoral period.

This was indicated in the H1 2016 financial report for Zambia of cement producer Lafarge, published on August 25th 2016.

The company itself recorded a 22% increase in cement export volumes in H1 2016 compared to H1 2015 thanks to new export markets.

The company’s cement export volume decreased by 17% over the past year, from 142,000t in 2014 to 121,000t in 2015.

However, Lafarge’s cement export volume increased by 71% over the past 7 years, from 83,000t in 2008.

Emmanuel Rigaux, CEO of Lafarge Zambia, said: “The Company continued to adjust its cost base in order to remain competitive and fully leveraged the Group synergy initiatives in H1. New export markets represent an increasing percentage of our sales with strong growth of rail transported volumes. Large contracts (Kenneth Kaunda International Airport, Kafue Gorge lower, etc), continued focus on export as well as the roll out of our new franchise network (“Kumanga”) should help us mitigate the difficult market conditions in Zambia itself in the coming months”.

Zambia Construction Sector

The construction sector in Zambia is led by the demand by the mining industry, infrastructure development, residential buildings and offices.

Building and construction is the largest industrial sector of Zambia comprising 27.5% of the GDP with a growth rate of 12% in 2014.