Good business environment attracting investments

INVESTMENTS in a modern economy are critical as this is related to positive income effects which result in job creation, which in turn results in higher total national income.
This domino effect continues and results in increased total consumption within the national economy. This in turn allows more money to be saved, which leads to further investments and can result in an upward spiral.
On the other hand, investors or indeed companies that commit investments can reap the benefits of economic growth and development while promoting sustainability for all. These investments provide access to new markets, resources, technologies and capabilities that drive economic growth, create jobs and help build local infrastructure.
This is partly the economic growth trajectory which the New Dawn administration has set the country on through different deliberate policies to attract more investments into the country among other interventions in the economy.
We, therefore, do not find it surprising that Zambia Development Agency (ZDA) has in the past three years issued investment licences to a tune of US$50 billion, which are at different stages of actualisation.
The primary objective of the agency is “to foster economic growth and development by promoting trade and investment in Zambia through an efficient, effective and coordinated private sector-led economic strategy”.ZDA director-general Albert Halwampa says the country has recorded an unprecedented number of investors accessing investment licences from the agency in tandem with its mandate.
This came to light during a visit to Bibagry Zambia Limited (BZL) in Kitwe.
We agree with Mr Halwampa, who says President Hakainde Hichilema’s administration’s consistent and stable policies have resulted in stability in the business environment.
It is gradually becoming apparent that President Hichilema, playing the role of chief trade, marketing and investment officer, has led the country towards increased investment inflows and actualisation rates.
We confidently state that this development is far from being hypothetical as some naysayers would like to believe, as US$50 billion worth of investment licences issued are based on real statistics, and BZL, which is now operational, is part of the statistics.
We commend ZDA, working with BZL, for actualising US$27 million investment in two years out of the US$30 million which the company committed in October 2021 to invest in five years.
BZL is a ZDA-supported company which manufactures non-alcoholic beverages and water in Kamfinsa, Kitwe, on the Copperbelt.
It is certainly heart-warming that the company committed to create 114 jobs for Zambians and has already employed 125 Zambians, which is one of the direct benefits of attracting investments.
We urge ZDA to continue working with BZL, among other private sector players, to create more jobs especially for youth, who make the majority of the country’s population.
The partnerships are also relevant to the critical equation of diversification and growing the country’s Gross Domestic Product (GDP) as espoused by the New Dawn administration under President Hichilema.
It is also worthwhile to point out to prospecting investors that there is a market access of over 20 million consumers in Zambia while Southern Africa Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA), combined, have an estimated 800 million consumers.
It goes without mention that companies established in Zambia can access regional markets making Zambia one of the best investment destinations in the region.
The actualised investments started as a commitment and their fulfilment can only be as a result of a conducive business environment.
We are further happy that BZL has further embarked on expansion programmes to double the investment by setting up a milling plant with a capacity of producing 300 tonnes of mealie meal per day.
All these developments, coupled by efforts to revamp mines on the Copperbelt after finding suitable equity partners and sealing of a US$6.3 billion debt-restructuring deal, among others, are not by accident but a result of deliberate and systematic steps to rejuvenate Zambia’s economy, which can be said to have been in the ‘intensive care unit’ before President Hichilema assumed office.