Infrastructure development remains a major challenge to growth, economic diversification, and human development in Zambia.
Areas for development in this sector include investment in health, education, and water and sanitation; increased power generation capacity through upgrading and construction of new generation facilities and use of alternative energy sources; improving and expanding the rail network to reduce the burden placed on road infrastructure; and constructing additional inter-provincial and inter-district roads to open up the country through the Link Zambia 8000 project. Â
The world earliest ranks estimated Zambia to have a housing shortage of 1.5 million housing units, and some 110,000 units will need to be constructed per year for the next ten years to clear the backlog.  Despite a continued need for new infrastructure investment, the Zambian government’s financing ability will likely be constrained over the short-to-medium-term as it embarks on fiscal reforms and renegotiates existing debts with commercial creditors.
Sub-Sector Best Prospects
Zambia is implementing the Link Zambia 8000 project, which seeks to transform the country from land-locked to land-linked.  The project involves paving 8,201 km of road at an estimated cost of $5.6 billion. Â
Zambia will be looking at expanding collection of road tolls on major roads to fund road maintenance and broaden financing options for road infrastructure development, such as the Pave Zambia 2000 program, which is aimed at rehabilitation of 2000 km of urban roads; and the L400 project, which is constructing or rehabilitating 400 km of Lusaka urban roads at a cost of $348 million.
Opportunities
Providing finance for housing and other infrastructure projects is another opportunity for U.S. investors. Zambia has a critical shortage of housing estimated to be about 1.5 million units countrywide and the government recommends an annual delivery rate of 110,000 units per year to meet demand in the next ten years.
 The government is actively seeking further infrastructure development through Public-Private Partnerships (PPP) projects. Other areas include the mining industry, shopping center construction, commercial real estate development, rail, and other transport networks.
