ZAMBIA’S HOUSING SECTOR — TURNING THE DREAM OF HOMEOWNERSHIP INTO AN ECONOMIC OPPORTUNITY

By Alain Kabinda

LUSAKA, Zambia — A house is more than a roof over a family's head. It can represent financial security, an investment for the future and a foundation for economic opportunity.

Yet for many Zambians, owning a home remains a distant ambition, constrained by the high cost of construction, limited access to affordable housing finance and the challenge of acquiring land with essential services.

For the construction industry, financial institutions and property developers, these challenges also present an opportunity to rethink how homes are financed, built and delivered.

As Zambia prepares to host the 42nd African Union for Housing Finance (AUHF) Conference and Annual General Meeting, the focus is increasingly shifting towards a critical business question: how can the country transform housing demand into sustainable investment, job creation and inclusive economic growth?

Government officials and industry stakeholders say the answer lies in developing financing models that respond to household incomes, mobilising domestic capital, expanding private-sector participation and reducing the cost of delivering homes.

The ambition is to make housing a stronger contributor to Zambia's economy while ensuring that investment benefits ordinary citizens rather than only those who can afford high-end properties.

Speaking during the media engagement Permanent Secretary in the Ministry of Finance and National Planning Economic Management and Investments Mr. Mulele Muketo Mulele said housing should be viewed as an economic sector capable of stimulating activity across multiple industries.

He said residential construction could generate demand for locally produced cement, bricks, roofing materials, doors and other building supplies, creating opportunities for manufacturers, suppliers, transporters, contractors and skilled workers.

Every housing project can create business opportunities along a supply chain that includes materials production, land development, engineering, construction, plumbing, electrical installation and finishing services.

Mr.Mulele said affordable housing finance, local manufacturing and private investment were essential to expanding homeownership while creating employment and supporting economic growth.

For Zambia's business community, a more active housing sector could therefore provide a market for locally manufactured products and encourage investment in construction-related industries.

 

Mr.Mulele said incremental housing loans could provide an alternative by allowing households to build or improve their homes in stages.

Rather than borrowing the full cost of a completed house, a family could obtain financing for a specific construction phase and progress as its resources permit.

This approach could create new opportunities for financial institutions to develop products suited to customers who might otherwise remain outside the formal housing finance market.

 

Farai Shumba of Habitat for Humanity said affordable financing was particularly important for low-income households, including people living in informal settlements who were often underserved by conventional lenders.

“Affordable housing finance is critical to helping low-income households invest incrementally in their homes,” Shumba said.

He said Habitat for Humanity was drawing on experiences in Kenya and Tanzania to strengthen its housing interventions in Zambia.

The organisation had co-created the Timang housing loan product to support incremental housing investment, including among women participating in savings groups.

Such models could help financial institutions reach customers through more flexible financing arrangements, although their success will depend on affordable interest rates, manageable repayment schedules and appropriate lending criteria.

For lenders, the business opportunity lies in developing products that balance financial sustainability with the needs of households whose incomes may not fit conventional mortgage requirements.

Mr.Mulele said Zambia could mobilise domestic capital through mechanisms such as housing bonds and encourage greater private-sector participation in residential development.

Housing bonds can provide a channel through which investors supply capital for housing-related projects, potentially diversifying funding beyond traditional bank lending and government resources. 

For housing finance to contribute to inclusive economic growth, investments need to support projects that respond to genuine demand, including the needs of low- and middle-income households.

A financing mechanism that expands capital availability without addressing affordability could increase construction activity while leaving many prospective homeowners unable to purchase the resulting properties. 

Speaking at the same engagement Permanent Secretary in the Ministry of Infrastructure and Housing Professor Albert Malama said housing projects needed to be supported by essential infrastructure, including roads, water and sanitation.

Without these services, developers may face additional costs in preparing land for construction, potentially increasing the final price paid by homeowners.

 

Professor Malama called for a coordinated national approach that would bring together government institutions, financial institutions, developers and other stakeholders.

He proposed three measures: establishing a national task force or committee to coordinate housing development, developing a viable national housing strategy supported by a pipeline of projects, and creating a housing finance framework that addresses both demand and supply.

A project pipeline would help identify developments at different stages of preparation, enabling investors to assess opportunities and determine which projects were ready for financing.

Professor Malama said the supply side required affordable land, suitable financing, supporting infrastructure and construction methods that could enable developers to build homes at prices ordinary citizens could afford.

Bringing the two sides together could help reduce the gap between homes available in the market and homes that prospective buyers can realistically afford.

And Panorama general manager Mwaka Mwape said the company was interested in replicating the housing development model demonstrated at Emerald Hill.

Mwape said the company wanted to contribute to housing delivery through developments that could increase the supply of homes.

However, the commercial viability of replicating such projects would depend on land availability, infrastructure, construction costs and the purchasing power of prospective homeowners.

And Mr. Mwansa Kapeya, representing the managing director of Zambia National Building Society (ZNBS), said the institution was pleased to host the engagement ahead of the continental conference.

He said more than 188 delegates had registered for the event, with approximately 90 per cent expected to be first-time visitors to Zambia.

Participants are expected to exchange ideas on housing finance, construction technologies, digital financial services and partnerships that could expand access to homeownership.

Mr.Kapeya said ZNBS was committed to developing inclusive housing finance products that responded to the needs of different customers, including those seeking flexible options to purchase or improve their homes.

For financial institutions, such innovation could help broaden the customer base and strengthen the connection between savings, lending and housing investment.

The conference also offers an opportunity for Zambian institutions to learn from regional experiences and explore partnerships that could support the development of new products and financing arrangements.

Whether these engagements lead to new investment will depend on the practical opportunities identified and the ability of participating institutions to implement them.

Zambia Tourism Agency chief executive officer Ms. Beautric Munthali said the country was positioning itself to attract five million tourists by 2031.

She said Zambia's geographical position, stability and security presented opportunities to attract visitors and serve as a hub for regional travel and business.

Ms.Munthali said the country had four international airports and facilities capable of hosting meetings, incentives, conferences and exhibitions, including venues able to accommodate gatherings of up to 5,000 people.

She also highlighted tourism attractions such as Kafue National Park, the northern tourism circuit and the country's waterfalls and other natural attractions.

The expected participation of international delegates creates an opportunity for local hospitality and transport businesses to generate additional revenue while showcasing their services to visitors.

However, the lasting economic value of the conference will depend not only on immediate visitor spending but also on the business relationships, investment interest and partnerships developed during the gathering.

Financing must be accessible to households, infrastructure must be available where homes are developed, and projects must be commercially viable without placing properties beyond the reach of their intended buyers.

The proposals advanced by government officials and industry stakeholders point towards a model in which housing finance, local manufacturing, private investment and national planning work together.

For financial institutions, the opportunity is to develop sustainable products for customers who have traditionally struggled to access housing loans. For developers, it is to identify cost-effective construction models and viable markets. For manufacturers, it is to supply the materials required by a growing construction industry.

For ordinary Zambians, the expected benefit is more direct: a realistic opportunity to acquire, build or improve a home.

As the 42nd AUHF Conference and Annual General Meeting brings housing finance stakeholders together, the key business test will be whether discussions translate into bankable projects, accessible loans, stronger local supply chains and homes that households can afford.

Housing can become a powerful engine of economic growth, but its success must be measured not only by investment attracted or properties constructed, but also by the jobs created, businesses supported and families able to turn homeownership from a distant aspiration into a practical reality.