Zambia, a landlocked country in southern Africa, is poised for economic growth. As investors seek opportunities beyond traditional markets, emerging growth corridors are gaining attention. In this article, we will be discussing two key districts—Chongwe and Solwezi—and their strategic significance.
Contents:
- Chongwe District
- Location and Infrastructure
- Investment Prospects
- Solwezi District
- Mining Hub
- Investment Prospects
- Balancing Expectations
1. Chongwe District
Location and Infrastructure
Chongwe lies approximately 30 kilometers east of Lusaka, Zambia’s capital. Its proximity to Lusaka makes it an attractive investment destination. The Great East Road connects Chongwe to Lusaka, facilitating trade and commerce. Additionally, the district benefits from the Lusaka South Multi-Facility Economic Zone (MFEZ), which encourages industrial development.
Investment Prospects;
Real Estate:
Chongwe’s growing population demands housing and commercial spaces. Investors can explore residential developments, shopping centers, and office complexes. Here are some of the benefits of investing in real estate in Chongwe:
Growing Demand
The district’s population is on the rise, leading to increased demand for housing and commercial spaces. As more people seek homes and workplaces, real estate investments become lucrative. Whether you’re interested in residential developments, shopping centers, or office complexes, Chongwe offers ample opportunities.
Government Support
The Zambian government actively encourages real estate investment. The Zambia Development Agency Act (No. 11 of 2006) promotes trade and investment by streamlining bureaucratic procedures, attracting inward investment, and facilitating industrial infrastructure development. Investors, both local and foreign, find a supportive environment for property development.
Sustainable Future
Chongwe’s eco-system has been carefully managed for over 40 years. Investing in residential properties here ensures stability and long-term worth. As the district grows, property values are likely to appreciate, making it a sound investment choice.
Chongwe District combines strategic location, growing demand, government support, and sustainability. Investors looking for real estate opportunities should consider Chongwe as a promising investment corridor.
Agriculture:
The fertile soils of Chongwe support agriculture. Opportunities exist in agribusiness, including crop farming, poultry, and horticulture. Conservation agriculture represents a promising solution for smallholder farmers in Chongwe District. Here are the key benefits:
Increased Crop Yields
CA practices, such as minimum tillage and mulching, enhance soil health and moisture retention. This results in higher crop yields, ensuring food security for local communities.
Reduced Input Costs
By minimizing soil disturbance and reducing reliance on costly inputs like fertilizers, CA helps farmers save money. It’s a cost-effective approach that promotes long-term sustainability.
Nutritional Diversity
CA encourages crop rotation and intercropping, leading to a diverse range of food crops. This improves nutrition and resilience against climate variability.
Economic Impact:
Market Access
Chongwe’s proximity to Lusaka provides easy access to markets. Agriculture products, including charcoal and fresh produce, find ready buyers in the capital city.
Income Generation
Investing in agriculture creates income opportunities for local farmers. Whether through crop sales or value-added products, it contributes to livelihood improvement.
Environmental Sustainability:
Soil Health
CA protects soil minerals, ensuring sustained productivity. Healthy soils support long-term agricultural viability and reduce the need for chemical inputs.
Water Conservation
Practices like mulching and reduced tillage conserve water, critical in a region prone to droughts. Finally, Investing in agriculture in Chongwe District isn’t just about profits; it’s about building a resilient and sustainable future. By adopting conservation practices, farmers can reap economic benefits while safeguarding the environment.
Tourism:
Chongwe’s natural beauty and cultural heritage —bordering the Lower Zambezi National Park—makes it ideal for eco-tourism and lodges. Here’s why investing in tourism here makes sense:
Proximity to Lusaka
Chongwe lies just 30 kilometers east of Lusaka, Zambia’s capital. Its accessibility via the Great East Road makes it an ideal gateway for tourists exploring the region.
Lower Zambezi National Park
The district shares its border with the iconic Lower Zambezi National Park. Tourists flock here for wildlife safaris, river cruises, and breathtaking views of the Zambezi River.
Diverse Attractions:Eco-Tourism and Lodges
Chongwe’s pristine landscapes attract eco-tourists seeking authentic experiences. Moreover, lodges along the riverbanks offer a tranquil escape, where visitors can spot elephants, hippos, and rare bird species.
Cultural Immersion
The local Tonga community warmly welcomes tourists. Additionally, visitors can participate in village tours, learn about traditional crafts, and enjoy cultural performances.
Government Support
The Zambian government has significantly increased the annual budget for tourism development in Chongwe District. Furthermore, this commitment reflects the sector’s economic importance.
Therefore, investing in Chongwe’s tourism sector not only promises financial returns but also contributes to community development and environmental conservation. As travelers seek authentic experiences, Chongwe stands ready to welcome them.
2. Solwezi District
Mining Hub
Solwezi, another one these fascinating emerging growth corridors in Zambia, located in the North-Western Province, is a mining hub. It hosts the Kansanshi Copper-Gold Mine—one of Africa’s largest copper mines. The mining sector drives economic activity, attracting infrastructure development and investment.
Investment Prospects;
Mining Services:
Companies providing equipment, logistics, and technical services to the mining industry can thrive in Solwezi. Here are some of the benefits of investing in mining services in Solwezi, Zambia—a town that owes much of its growth and economic vibrancy to the mining industry.
The Solwezi Effect
Solwezi has experienced remarkable growth due to its association with mining. Here’s why investing in mining services there is a smart move:
Mining as a Catalyst
Solwezi is home to FQM’s Kansanshi Mine, which produces a significant portion of Zambia’s copper output—approximately 260,000 tonnes annually. This mine acts as a catalyst for economic development, creating a ripple effect far beyond its immediate boundaries.
Infrastructure Development
The influx of people—miners, contractors, and their families—has driven demand for services like housing, healthcare, education, and retail. Consequently, the town’s infrastructure has expanded to meet these needs.
Community Investments
Mining companies have actively invested in community development projects. Schools, hospitals, and other essential facilities have further contributed to Solwezi’s growth.
The Multiplier Effect
Economists refer to the multiplier effect—the idea that a single economic activity generates additional economic activity elsewhere. Kansanshi Mine irrigates the economic landscape beyond its physical footprint.
Business Boom
Local businesses thrive, from auto-repair shops to hairdressers, computer outlets, and courier services. The demand for goods and services has led to the emergence of shopping malls and bustling streets.
Job Creation
New jobs are created not only directly within the mining sector but also indirectly in related fields. Solwezi’s economy serves other nearby mines, such as Lumwana and Sentinel.
Balancing Expectations
While mining brings immense benefits, questions remain about equitable distribution. Does the local population truly benefit? Balancing mining investment with alternative economic activities is crucial for sustainable growth. Investing in mining services in Solwezi isn’t just about profits; it’s about shaping a resilient community, fostering economic diversity, and ensuring long-term prosperity.
Infrastructure:
Solwezi has witnessed remarkable growth in recent years. This transformation is closely tied to strategic investments in infrastructure. Here are some of the benefits of such investments and their impact on Solwezi’s development.
Energy Sector Advancements:
Petroleum and Gas Infrastructure
Zambia imports all its petroleum products, contributing approximately nine percent of the national energy demand. Secondly, the new multi-purpose fuel pipeline between Tanzania and Zambia promises increased fuel security and lower pump prices. Pipeline transportation is more cost-effective than road transport. Furthermore, the Angola-Zambia Oil Pipeline (AZOP) project, a gas pipeline, will support the Lobito Refinery in Lusaka, strengthening economic ties between the two countries.
Strategic Fuel Reserves
The Harvest Group of Companies Limited, an oil and gas company, has invested in Zambia’s fuel sector. A recent financing deal with Afrexim Bank worth US$310 million aims to build strategic fuel reserves in Solwezi, Choma, and Kabwe. These reserves will reduce fuel costs and enhance product security, benefiting both consumers and businesses.
Community Development and Quality of Life:
Mining Companies’ Contributions
Solwezi owes part of its growth to copper mining. Mining companies have invested in community development projects, including schools, hospitals, and market stalls. Moreover, the Kabitaka residential area, built by mining companies, provides quality housing for residents.
Economic Integration and Job Creation:
Regional Power Trading Hub
Solwezi’s infrastructure investments position Zambia as a regional power trading hub. Additionally, economic integration within the Southern African Development Community (SADC) region is facilitated by these developments.
Investing in Solwezi’s infrastructure has far-reaching benefits. It not only supports economic growth but also enhances the quality of life for its residents. As the town continues to evolve, strategic infrastructure investments remain crucial.
Hospitality:
As mining operations expand, demand for hotels, restaurants, and entertainment venues grows. Solwezi offers a unique blend of natural beauty, mining heritage, and cultural richness. As investors seek opportunities beyond traditional sectors, the hospitality industry emerges as a promising avenue. Here are some of the advantages of investing in Solwezi’s hospitality sector.
1. Tourism Potential
Wildlife and Ecotourism
Firstly, solwezi is strategically located near Kafue National Park and other wildlife reserves. Investors can tap into the growing ecotourism market. The Zambian Wildlife Authority (ZAWA) actively supports wildlife conservation, ensuring sustainable tourism practices.
Copper Mining Tourism
Solwezi’s copper mines attract business travelers and mining enthusiasts. Investing in upscale hotels and lodges caters to this niche market.
2. Economic Diversification
Reducing Dependency on Mining
Historically, Solwezi’s economy relied heavily on copper mining. Diversifying into hospitality reduces vulnerability to commodity price fluctuations. Hotels, guesthouses, and restaurants provide stable revenue streams independent of mining cycles.
3. Community Development
Job Creation and Skill Enhancement
Thirdly, hospitality investments create employment opportunities for locals. Training programs enhance skills in service, management, and culinary arts. The Royal Solwezi Hotel, a landmark establishment, exemplifies this commitment.
In conclusion, investing in Solwezi’s hospitality sector not only yields financial returns but also contributes to community well-being. As the town evolves, smart investments in hotels, lodges, and restaurants will shape its future. Chongwe and Solwezi exemplify Zambia’s growth potential. Investors should consider these districts for their strategic locations, development-friendly policies, and investment prospects. As Zambia continues its journey toward sustainable development, these emerging growth corridors offer exciting opportunities.
References:
Invest Africa:
Catalysing Climate-Compatible Growth: Harnessing Zambia’s Constituency Development Fund
Lusaka Times:
Property prices in Chongwe set for growth
Hospitality industry slows down in Solwezi
Zambia Monitor:
Davik Real Estate:
Why Local and Foreign Investors Need to Invest in Real Estate in the Republic of Zambia Now
Adoption of Conservation Agriculture in Zambia – The Case of Chongwe District
Journal Ajahr:
Arc Journals:
Women and Natural Resource Conservation: A Study of Chongwe District, Zambia
Ministry of Tourism:
Minister directs TCZ, ZTA to report tourism economic contribution in 2024
Mining for Zambia:
Mrcsl:
The Rise of Solwezi: Zambia’s Copper Mining Town
Iced Facility:
Solwezi; Inclusive Urban Economic Development Diagnostic
Copperbelt History:
Daily Nation Zambia:
Investment in infrastructure key to growing Zambia’s energy sector
Homenet Zambia:
Invest in Zambia’s Tourism Sector
Royal Solwezi:
