Profica is proud to be a sponsor of Zamreal 2018, the one-day forum which brings together local and regional stakeholders to gain knowledge and share insights on the Zambian real estate market.
Beukes van Heerden, Associate Director at Profica, and Akazhila Mambwe, Senior Project Manager based in Zambia, are both attending the forum today and report that the Zambian real estate market presents a combination of exciting opportunities and challenges. Challenges include the fact that banks are limited to the amount of exposure they may engage with in terms of a single client, which can complicate large-scale project finance. The market is beset with high interest rates that vary between 18% and 22% for geared finance. This is effectively curbing many development prospects.
Despite these challenges, there are positive signs that are able to draw foreign investment. As well as having one of the fastest growing economies in Africa, a stable mining sector which drives the economy continues to have a positive future outlook. This has led to foreign investment in the country of around $800m. Additionally, the government is committed to investing large capital on infrastructure development.
Van Heerden says that for Profica, with embedded teams across Africa, it takes innovative thinking and on-the-ground knowledge to find sustainable solutions. “Experience built on deep understanding of the legislative environment and having forged relationships with strong local partners is critical. At Profica, we’re well positioned to recognise potential and grasp opportunities as they come to market.” Watch this space!