Prime Time optimistic about Zambia
Prime Time remains optimistic on its Zambia properties as the office sector suffers oversupply and the company revenues continue to take a downward turn.
Prime Time Chairlady, Petronnela Matumo said the company’s Zambian operations have been particularly affected over the last two years with the impact of the pandemic exacerbating an already precarious economic situation. “However, there has been a noticeable uptick in confidence, post the general elections of August 2021. Whilst the road to realising Zambia’s full potential will be a long one, we believe that the underlying fundamentals will return stability to the property sector in due course. We wish the president and his government every success in plotting Zambia’s path forward.” In 2021, the Company’s Zambian properties had vacancies dropping from 11.5 percent to 3.5 percent while the total investment portfolio dropped by 1.8 percent. PrimeTime currently has 31 properties in Botswana, South Africa and Zambia, amounting to over 120,000 square metres of lettable office, retail, and industrial space. In his comment in the Company’s 2021 annual report, Prime Time External Property and Asset Manager, Alaxander Kelly highlighted that Botswana values rose marginally while Zambia values took another downturn. Property value fell by 11 percent as rental discounting and regearing of leases in response to the in- country economic situation filtered through to property values. “This trend was seen across Zambian market. However, our team worked hard to fill vacant space and despite the headwinds in Prime Times retail properties in the country.”
Kelly said there is an oversupply which will take time to absorb in the office and retail sectors in Lusaka and rentals are expected to take time to recover. “The market needs stability and will benefit from prudent economic management, which now appears a reality. There has been an uptick in enquiries from occupiers looking for space after the elections, and we have confidence in the long term prospects for PrimeTime’s Zambian portfolio.” Furthermore, he explained that while cognisant of the more volatile nature of the Zambian market and short- term shocks it suffers, the long- term outlook for Zambia remains positive. “Positive sentiment following the change of government at the August 2021 elections has been cemented after PrimeTime’s financial year ended with an agreement being reached with the IMF for a lending programme worth around $ 1.4 billion, which will help the country restructure its debt.”
Kelly also pointed out that the group continues with its collaborative approach to PrimeTime’s tenant base which resulted in low vacancy levels. “While there was a need to offer some assistance to tenants in the form of rental relief, we also regeared leases to secure long- term income. We were pleased to see a quick return to normalised rental collections in Botswana and South Africa over the course of the year and expect Zambia to follow suit.”