Construction

ZAMBIA CONSTRUCTION SECTOR KEY FIGURES 2025, GDP, GROWTH

Construction contributed 9.35% to Zambia’s GDP in 2025, one of the economy’s largest sectors, growing 4.0% in real terms and remaining regulated by a statutory framework built around the National Council for Construction and the Ministry of Infrastructure, Housing and Urban Development.

The Ministry, created in September 2021, is responsible for public infrastructure development and maintenance, government housing policy, and urban development, while the Council, established under the National Council for Construction Act No. 10 of 2020, handles the registration, training and regulation of contractors, suppliers and manufacturers.

Sector Size

Construction contributed 9.35% of Zambia’s nominal GDP in 2025, or ZMW 67.82 billion of the ZMW 725.6 billion total, up from ZMW 64.23 billion in 2024^[1]. The sector grew 4.0% in real terms over the year, making it one of the five largest sectors of the Zambian economy by GDP contribution^[1]. Activity in the sector is seasonal: the Bank of Zambia has flagged that construction typically eases during the rainy season as weather-dependent work slows, a recurring driver of quarter-to-quarter fluctuations^[2].

Regulatory Structure

The Ministry of Infrastructure, Housing and Urban Development, created in September 2021, is responsible for public infrastructure development and maintenance, government housing policy, public asset management, and urban development policy, and oversees affiliated agencies including the Road Development Agency and the National Housing Authority^[3]. The National Council for Construction, a statutory body under the National Council for Construction Act No. 10 of 2020, separately regulates the industry itself, registering contractors, suppliers and manufacturers and running its own construction training school and materials testing laboratory^[4].

Water

Water supply, sewerage, waste management and remediation activities are a distinct, much smaller GDP category, contributing just 0.23% of GDP in 2025 and contracting 8.0% in real terms, against a national access gap of 68% for basic water supply and only 36% for basic sanitation as of 2023^[5]. The government constructed 10 new dams and rehabilitated 15 more between 2021 and 2026, and the Water Supply and Sanitation Services Bill passed its Third Reading in Parliament on May 4, 2026, to strengthen the legal framework for the sector’s commercial utilities^[6]. The full Water page covers access levels, dam infrastructure and the sector’s non-revenue water losses in more depth^[6].

Real Estate

Real estate activities contributed 4.04% of GDP in 2025, growing 3.7% in real terms, against a national housing deficit the National Housing Authority puts at approximately 1.5 million units^[5][7]. Two major public-private housing initiatives launched in early 2026: a 10,000-unit mixed-use development agreement between the NHA and Namibia’s Ongos Valley Development, and a prefabricated concrete panel housing factory built with China Jiangsu International Corporation in the Lusaka South Multi-Facility Economic Zone^[7][8]. The full Real Estate page covers both initiatives and the housing deficit in more depth^[7].

Investment Opportunities

Construction’s 9.35% share of GDP, on top of the road, rail and housing investment programmes already underway across Transport and Real Estate, points to a sector with both scale and continued government-driven demand behind it^[1]. Zambia’s housing and public infrastructure needs sit squarely within the Ministry’s own stated mission, to facilitate construction, rehabilitation, maintenance and management of public infrastructure and affordable housing^[3]. The 68%/36% water and sanitation access gap and the 1.5 million unit housing deficit are each, on their own, larger than what either sub-sector’s current GDP contribution could close without sustained investment^[5][6][7].

Last Update: August 2026

References

1. Zambia Statistics Agency, Final Annual GDP release, sectoral data
2. Bank of Zambia, Monetary Policy Report, May 2026
3. Ministry of Infrastructure, Housing and Urban Development, About the Ministry
4. National Council for Construction
5. Ministry of Water Development and Sanitation, Water Supply and Sanitation Services in Growth Centers
6. Ministry of Water Development and Sanitation, Ministerial Statement on Achievements 2021-2026
7. Ministry of Infrastructure, Housing and Urban Development, Zambia’s Housing Vision Begins to Materialise
8. Ministry of Infrastructure, Housing and Urban Development, NHA and Ongos Valley Development Sign Landmark Agreement