New malls signal growing economy

One measure of the growing spending power of the Zambian consumer is the new malls being built in the major mining towns, as well as the capital Lusaka. They are changing the nature of logistics in the region, with companies developing the infrastructure and systems to handle fast-moving consumer goods. There are also project cargo opportunities as a large percentage of the materials and fittings either have to be imported or hauled crosscountry. An example of the mall development is a US$200-million (R2.1 bn) project in the northern mining town of Kitwe. When completed it will be the biggest shopping mall in Zambia, according to the developers. It is the single biggest investment outside of copper mining in the Copperbelt, according to Phoenix Materials chairman Phesto Musondo. He was speaking at the hand-over of the land for the mall by Mopane Copper Mines. Phoenix is developing the mall as a joint venture with TGP Properties. Development is going ahead despite the opening of the US$45.5m Mukuba Shopping Mall in Kitwe, which is due to open in April 2015. Meanwhile, the new Kafuba Mall opened in Ndola in April 2014. Plans to build the first mall in Zambia’s north western province have been stalled by land issues in the mining town of Solwezi. Mall development started in Lusaka, with malls such as the Levy Centre, Manda Hill and the Arcades Shopping Centre. But the government has more ambitious plans. According to the Regional Investment Agency, the statutory Zambian pension fund is proposing to undertake the development of a Southern African Regional mixed use node as a satellite town of Lusaka. It will be anchored by a 100 000m2 retail mega mall, three hotels including “at least one five star hotel, three office parks, convention centre, high-density residential units and at least 8 000 high-cost houses around the shopping mall. The town is expected to have a population of around 500 000 at a cost of US$ 2.5 billion. Another indicator of increasing wealth is the growing traffic jams in towns like Kitwe, Ndola and Lusaka. Truckers and business people are now timing their trips to avoid the morning and evening rush hours. Statistically, the improvement in the lives of Zambians can be seen by the increase in life expectancy – from 46 years in 2004 to 57 in 2012, according to the World Bank. The gross domestic product has more than doubled from US$ 10 702 200 822 to US$ 22 383 715 315 between 2004 and 2013. CAPTION Ndola’s second mall – Kafuba, which opened in April 2014.