Significant natural resources, the country's status as thelargest copper producer in Africa andconsiderable coal and cobalt reserves haveallattracted infrastructureinvestment.
Strong economic growthforecast over the medium term (2013-2017) of 7% on average per year.
Construction industry has expanded by double-digit rates over the past few years.
Financing constraints have stalled the development of crucial infrastructure.
Absence of sophisticated sources of finance.
High levels of corruption and lack of transparency in tendering.
Severe disruptions to power supply - due to ageing infrastructure and lack of capacity and diversification - hinders the country's business environment.
Construction freeze in June 2012 will have stalled growth for 2012, resulting in a downgrade to our forecast.
Strong construction industry growth anticipated over our 10-year forecast period.
Significant investment in expanding generating capacity should ease power shortages.
High commodity prices are making significant investment in new and expanding mines economically feasible; this often includes construction of associated freight and power infrastructure.
Government is hoping to use public-private partnerships to finance infrastructure, which could unlock new capital.
Anti-corruption pledge by President Michael Sata should help improve transparency in contract awards.
EIB has resumed lending to infrastructure projects in the country in a show of confidence in the anti-corruption moves of President Michael Sata.
Regulatory reform and a clamp down on land allocation and building permits will create a more sustainable industry outlook.
Success in raising funds by sovereign bonds opens up the potential to use sovereign bonds for infrastructure, allowing the raising of financing at relatively low interest rates.
A drop in commodity prices, which are trading above historical trend, could result in a drop in foreign investment in mines and associated infrastructure. However, copper prices and demand for copper should remain strong, despite a slight fall in prices over 2012.
Reduced mining revenues would also reduce government revenues and therefore remove funding for public infrastructure investment.
The election of Michael Sata as president presents some threat to policy continuity. Although Sata is working to root out corruption and improve transparency, this will involve a policy shakeup and has led to the sacking of high-ranking officials. However, we do not anticipate any major changes in policy and expect this to benefit the country's business environment.