Business

Fight against corruption linked to attractive FDI – researcher

CYNTHIA MWALE, Gaborone, Botswana
ZAMBIA and other countries in the Southern African Development Community (SADC) should step up the fight against corruption to attract foreign direct investment (FDI) that helps in reducing poverty, a development researcher has said.
Mr Moses Chamisa, who is also Zimbabwe Revenue Authority research and development officer, said the regression results show that a country’s attractiveness to FDI is quite closely linked to the level of corruption.
“The negative relationship between FDI inflows and corruption indicates that the lower a country’s score on a scale of zero [highly corrupt] to 10 [least corrupt, the less FDI it receives,” Mr Chamisa said in a paper presentation yesterday at a regional conference on corruption and the challenge of economic transformation in southern Africa on the ‘Effects of corruption on FDI in SADC’.
In 2017, Zambia’s ranking on the Transparency International Perceptions Index was 97 out of 180 countries.
The index, which ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and businesspeople, uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean.
Mr Chamisa, however, said SADC countries should strive to support international approaches to fighting corruption through incorporating such global anti-corruption strategies in domestic laws.
“Policy-makers in SADC countries should put in place efficient, effective and strong anti-corruption measures to reduce corruption and attract more FDI inflows,” he said.
In her contribution, University of Mauritius academician in the Department of Sociology and Development Sheila Bunware said there is need to build coalitions in the fight against corruption, especially with the coming of the Continental Free Trade Area (CFTA).
The CFTA will bring together 54 African countries with a combined population of over one billion people and a combined gross domestic product of over US$3.4 trillion.
President Edgar Lungu has taken a leading role in fighting corruption through various strategies that promote FDI inflow into Zambia.


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