NKOMBO KACHEMBA
Lusaka
FOREIGN direct investment (FDI) flows increased to US$580.5 million in the first half of 2024 propelled by a rise in loans from affiliated entities, particularly in the mining and quarrying sectors.
The surge in FDI flows went up by US$330.4 from US$250.1 recorded in the same period in 2023.
This is according to the 2024 Private Sector Foreign Investment and Investor Perception Survey Report disseminated by the Bank of Zambia (BoZ) yesterday.
The report states that mining and quarrying remained the highest contributor to the FDI stock, accounting for 62.9 percent.
The manufacturing sector ranked second, contributing 17.2 percent, followed by deposit-taking corporations at 7.6 percent, while wholesale and retail trade trailed behind at 6.0 percent, with the remaining sectors accounting for 6.3 percent of the total stock.
The report further states that FDI inflows continued to recover in the aftermath of the COVID-19 pandemic with increase in inflows recorded in 2022.
The trend continued in 2023 due to moderation in dividends payouts, especially in the mining and quarrying sectors.
The report states that the main drivers of FDI in 2023 were deposit-taking corporations, mining and quarrying, manufacturing, wholesale and retail trade sectors.
On private sector foreign liabilities, the report states that the liabilities increased by 24.3 percent to US$20.6 billion in 2023 due to payables and trade credits, as well as advances to related parties in manufacturing, wholesale and retail trade and mining and quarrying sectors.
Net private sector foreign liability flows also rebounded to a net inflow of US$658.1 million in 2023 against a net outflow of US$190.9 million in 2022…https://enews.daily-mail.co.zm/
