Strengthening economic infrastructure is one of the critical vehicles for the realization of the Plan’s objectives.

Poor physical infrastructure such as roads, electricity and water has been one of the major bottlenecks holding back private sector development and Zambia’s economic progress in general. During the FNDP period, it is planned that roads in a maintainable condition should improve from 51 percent in 2005 to 90 percent by 2010. Spending on rural feeder roads, in particular, will be enhanced so as to widen market access on a large scale.

Strengthening economic infrastructure is one of the critical vehicles for the realization of the Plan’s objectives.

Poor physical infrastructure such as roads, electricity and water has been one of the major bottlenecks holding back private sector development and Zambia’s economic progress in general. During the FNDP period, it is planned that roads in a maintainable condition should improve from 51 percent in 2005 to 90 percent by 2010. Spending on rural feeder roads, in particular, will be enhanced so as to widen market access on a large scale.

The FNDP targets to further raise spending on road infrastructure to at least 2.0 percent of GDP during the Plan period. Government spending is programmed to be raise to an annual average of around 1.2 percent of GDP during Plan period to allow for road infrastructure development and maintenance. As a proportion of the Government budget, spending on roads is planned to average 5 percent on an annual basis over the period.

Apart from roads, the development of rail transportation infrastructure has also been accorded priority. However, the rail projects will be funded mostly through private financing. Other key infrastructure programmes are the enhancement of energy supply, including water development for economic purposes like irrigation. There are projects of a large commercial nature like the development of hydro power stations and the power rehabilitation programme. These will mainly be developed through public private partnerships or private arrangements where possible. These large projects are of vital importance because the southern African region faces a looming power shortfall by 2008 and Zambia is one of the few countries where new projects could be quickly developed if resources are available. The on-going power rehabilitation programme is also essential to guarantee power supply and significantly reduce on power outages experienced by business enterprises and the household alike. The rural electrification programme will also be scaled up during the Plan period.