Water

ZAMBIA WATER SECTOR KEY FIGURES 2025, GDP, ACCESS, INVESTMENT

Zambia’s formal water supply and sanitation sector contributed just 0.23% to GDP in 2025 and contracted 8.0% in real terms, even as the government built 10 new dams and rehabilitated 15 more since 2021 to close a water access gap that stood at 68% for basic water supply and just 36% for basic sanitation as of 2023.

The tiny formal footprint against that scale of need is itself the story: poor sanitation alone costs Zambia an estimated USD 194 million a year, equivalent to 1.3% of GDP, more than the entire formal water and sanitation sector contributes to the economy.

Sector Size

Water supply, sewerage, waste management and remediation activities contributed just 0.23% of Zambia’s nominal GDP in 2025, or ZMW 1.63 billion of the ZMW 725.6 billion total, and contracted 8.0% in real terms over the year^[1]. That small and shrinking formal footprint sits in sharp contrast to the scale of unmet need across the sector, discussed below^[1].

Access to Water and Sanitation

As of 2023, approximately 68% of Zambia’s population had access to basic water supply and about 36% had access to basic sanitation, a level the Ministry of Water Development and Sanitation describes as having remained almost stagnant for 15 years against a growing population^[2]. Even where access exists, service quality is often poor: households receive an average of 16 hours of water supply per day, and 6% of water samples in urban areas fail bacteriological tests^[2]. Poor water, sanitation and hygiene access costs Zambia an estimated USD 194 million a year, equivalent to 1.3% of GDP, more than the formal sector’s entire measured GDP contribution, and diarrhoea linked to inadequate access is the second leading cause of death among children under five, averaging 10% of all deaths in that age group^[2].

Infrastructure Investment

Between 2021 and 2026, the government constructed 10 new dams and rehabilitated a further 15, while maintaining 848 dams nationwide, supporting irrigation, livestock and domestic water supply^[3]. A USD 33 million Water Supply and Sanitation Services in Growth Centres programme became effective in September 2025, with implementation units staffed and boards appointed across all four participating utilities^[2].

The 60 Dams Project

A separate, three-year, roughly ZMW 5 billion initiative targets 60 new dams nationwide to improve water security, rainwater harvesting, drought resilience and food security, prioritising the drought-prone Southern, Lusaka, Eastern, Central and Western provinces^[3]. Construction of nine dams under the project, in Eastern and Southern provinces, was already underway as of the government’s own account^[3].

Groundwater Development

The government has drilled 679 exploratory boreholes nationwide to identify sustainable groundwater sources in underserved and water-scarce areas, part of a strategic push to reduce dependence on unreliable surface water and build resilience to climate variability^[3].

Drought Response

During the 2023/2024 drought season specifically, the government drilled a further 421 boreholes, rehabilitated 270 non-functional boreholes in affected districts, maintained 718 dams, built 45 sanitation facilities, and installed 55 standby water pumping systems for commercial utilities^[3].

Non-Revenue Water

Non-revenue water, water produced but not billed due to leakage or unmetered use, remains a significant drag on utility finances, reported as high as 40% to 60% in some utilities against an acceptable benchmark of around 25%^[3].

Policy Framework

The 2024 National Water Policy, currently under implementation, emphasises equitable access, climate resilience and efficient water use across all sectors of the economy^[3]. The Water Supply and Sanitation Services Bill passed its Third Reading in Parliament on May 4, 2026, a step intended to strengthen the legal framework for service provision and improve regulation of the country’s commercial water utilities^[3]. The 2026 Budget allocates K1.83 billion to Water Supply and Sanitation Infrastructure, part of a wider K3.20 billion Housing and Community Amenities function^[4].

Investment Opportunities

Zambia’s Vision 2030 targets universal access to clean water and 90% sanitation coverage, a gap from today’s 68% and 36% levels that implies a large, government-prioritised pipeline of water and sanitation infrastructure work over the coming years, one the current 0.23% GDP share and contracting formal sector cannot meet on its own^[1][2]. Non-revenue water reduction is a specific, quantifiable opportunity in its own right, given utilities losing 40% to 60% of production represent a direct efficiency gain for anyone able to help close that gap^[3].

Last Update: August 2026

References

1. Zambia Statistics Agency, Final Annual GDP release, sectoral data
2. Ministry of Water Development and Sanitation, Water Supply and Sanitation Services in Growth Centers
3. Ministry of Water Development and Sanitation, Ministerial Statement on Achievements 2021-2026
4. Ministry of Finance and National Planning, 2026 Budget Speech