REAL ESTATE MANAGEMENT
There has been a sea change in the requirements of real estate managers to match the country's changing demographics and economy structure.
Seeff started as a small family business, acting as an agency for Zambian entrepreneurs to be more competitive in the face of big players and property competitors. Eventually it outgrew itself and expanded to what it is today, an international company with branches in Mauritius, Swaziland, Botswana, South Africa, and Zimbabwe, with ongoing expansion in other countries as well. Our latest addition is property management and valuation, which is rapidly growing. Our client mix includes NGOs, companies, and ordinary individuals, and we want to expand even more to be as competitive as the large companies that have been in the market for 15 years or more. Since we diversified into the agriculture sector, adding land for farming to our property offering, we have received more and more inquiries and offers for sales. We started off with offers for 10ha here and there to properties of 100 or 200ha, and even up to 3,000ha. We see a great deal of interest in Kitwe, in the Copperbelt, and in other parts of Zambia, and are now considering adding offices in Solwezi and Livingston as well. There is a notable lack of attractive houses in Lusaka: Many old houses are being demolished to make way for apartments, which means there is great potential for those seeking to construct or refurbish large houses, and demand for it, too.
A large portion of industrial property demand is still driven by foreign companies. Our manufacturing sector has taken a hit in the last few years, owing to the power deficit and high cost of production. Demand for industrial space, therefore, has lagged behind. In fact, we have seen a high vacancy of industrial space in the last 18 months. For example, Pam Golding currently sits on over 25,000sqm of empty warehousing available for lease; a large amount by our standards. One of the biggest occupants of warehousing space on the local market was the Food Reserve Agency, which rented out large spaces to store grain, and since it has been enforcing cost-cutting measures, it has not been renting this year. Industrial demand now is largely being driven by international and regional players that are not taking up spaces. However, even here we have not seen much interest, with many foreign companies not entering new leasing contracts on warehouses in 2016/2017. On the whole, people are confident about the long-term outlook of the sector due to a renewed confidence in Zambia and the overall economic growth outlook; however, trade volumes are still too low for many firms to warrant opening up an industrial space here. We need to see a substantial increase in regional and international trade in order for this to happen.
In terms of real estate markets, we have noticed increased interest from the education and health sectors, with many universities and colleges looking to expand their campuses. One of the factors that could have played a part in this is the rapid population growth in Zambia, with the largest demographic now being under 21 years old. Zambia is almost 50% urbanized, and we see growth in Lusaka and other cities across the country. However, there is a fair amount of agricultural land as well, which is where we should focus our attentions for development. Land in the immediate suburbs of the city has become more valuable for development rather than for agricultural use. Our clients have found that their land is now closer to the center, and that has led to active inquiries about how to best subdivide and service that land. There has been more subdivision of farm holdings in city suburbs, and overall there is greater use and development of farmland around the country. Only 40% of the arable land in Zambia is being farmed, so there is massive potential. However, only 10% of the land is under title, meaning there remains a great amount of work to be done by the authorities in terms of administering and processing land.
REAL ESTATE MANAGEMENT
TABLE OF CONTENTS
Year In Review
What A Year
Zambia has long been a bastion of stability in Southern Africa, and while its economy has been rocked in recent years by the falling value of copper prices, a devaluating kwacha, and high inflation, through the Economic Recovery Program the government has bold ambitions to right the ship.
read articleReview
Convoke, Confound & Collect
Squeezed between a rock and a rather hard place by the slowdown in Chinese demand for copper, by far Zambia's biggest export and government-revenue generator, President Lungu has been forced to get creative in his country's alliances to broaden revenue streams and lessen its dependence on the vagaries of one foreign market.
read articleGuest Speaker
Dr. Stergomena L. Tax, Executive Secretary, Southern African Development Community (SADC)
TBY talks to Dr. Stergomena L. Tax, Executive Secretary of the Southern African Development Community (SADC), on regional economic development, boosting pan-continental free trade agreements, and improving security through mutual development.
read articleInterview
Susan Sikaneta, Ambassador, Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa
TBY talks to Susan Sikaneta, Ambassador of Zambia to Ethiopia & Permanent Representative to the African Union and Economic Commission for Africa, on championing peace across the continent, advancing women's rights, and promoting Pan-Africanism.
read articleInterview
Sebastian C. Kopulande, CEO, Zambian International Trade & Investment Centre (ZITIC)
TBY talks to Sebastian C. Kopulande, CEO of Zambian International Trade & Investment Centre (ZITIC), on taming austerity, stimulating sustainable growth, and creating the framework to support entrepreneurship
read articleFocus: Zambia Plus
Adding it All Up
On October 20, 2016, at the 2017 Budget Address, Finance Minister Felix Mutati launched the government's economic recovery program, christened "Zambia Plus." The program is designed to spur domestic productivity, through strengthening ties and collaborating with external donors and developers.
read articleReview: Banking
Macroeconomics Rule the Roost
In its ongoing efforts to diversify away from one principal commodity, copper, the government fosters the development, standardization, and efficacy of the private sector. In doing so the systematic support of the financial universe, especially banks, is vital, as is the goal of financial inclusion.
read articleFocus: SME Growth
IMF support program
An IMF support program stands to provide Zambia with some much-needed discipline on its expenditure and operational efficiencies; however, many caution the need for Zambia to determine what it wants to achieve and how the program will benefit the country.
read articleInterview
Christabel M. Banda, Executive Director, Insurers Association of Zambia (IAZ)
TBY talks to Christabel M. Banda, Executive Director of Insurers Association of Zambia (IAZ), on the evolution of the local insurance landscape, raising awareness, and tackling challenges in the sector.
read articleFocus: Solar
Sunny Side Up
As power demand continues to rise and power production continues to fall behind, it's the same old story for Zambia, still wrestling with an ongoing energy crisis. Public- and private-sector drives are seeking to mitigate this deficit by activating the country's solar industry.
read articleInterview
Margaret K. Chalwe-Mudenda, Director General, Zambia Information and Communications Technology Authority (ZICTA)
TBY talks to Margaret K. Chalwe-Mudenda, Director General of Zambia Information and Communications Technology Authority (ZICTA), on new projects, the ZNDC, and expectations for the year ahead.
read articleInterview
Hon. Dora Siliya, Minister, Agriculture
TBY talks to Hon. Dora Siliya, Minister of Agriculture, on the investments being made in agriculture to enable agricultural households, diversifying Zambia's basket of produce, and making international markets more accessible for local producers.
read articleInterview
Hon. Charles R. Banda, Minister, Tourism and Arts
TBY talks to Hon. Charles R. Banda, Minister of Tourism and Arts, on the wealth of tourism destinations within Zambia, efforts to bring more visitors to the country, and what the Tourism Development Fund will contribute to developments.
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