News

FDI inflows rise to $3.2 billion

KALYALYA

CAROLINE KALOMBE, Lusaka
ZAMBIA’S net foreign direct investment (FDI) inflows rose from US$1.7 billion in 2013 to US$3.2 billion last year, according to the 2015 Foreign Private and Investor Perceptions Survey.
Bank of Zambia governor Denny Kalyalya  said when he officially opened a dissemination workshop on the survey in Lusaka yesterday that successful implementation of the fiscal measures announced by President Lungu will go a long way to improve fiscal consolidation.
Dr Kalyalya said the highlighted measures and Government’s commitment to maintaining macroeconomic stability and addressing the cost of doing business, will further increase investment opportunities for both domestic and foreign investment.
“Preliminary analysis of the available data for the first half of 2015 shows notable pick up in investment momentum, with FDI inflows higher than recorded during the first half of 2014. A number of areas of improvement have been raised by the private sector,” he said.
Dr Kalyalya said according to the survey, FDI liabilities to Zambia declined by 29.1 percent to US$1.5 billion in 2014, from US$2.1 billion recorded in 2013.
He said the ongoing economic reforms of promoting private sector-led growth continue to bear fruit as evidenced by notable amounts of both local and foreign investment, and that this is critical to sustaining growth and employment.
“In this regard, we welcome the ‘foreign private investment and investor perceptions in Zambia’ which establishes the magnitude and direction of foreign private investment flows as well as investor perceptions on the investment climate,” Dr Kalyalya said.
He said the survey also underscores the Bank of Zambia’s commitment to catalysing private sector development and investment promotion and that the central bank will continue to work with other balance of payments technical committee members.
According to the 2015 report, the country’s FDI inflows rose to US$3,194.9 million from US$1,690.5 million recorded in 2013, driven by a higher drawdown in FDI assets.
The report also indicates that FDI liabilities, however, declined by 29.1 percent and this was attributed to reduced investment in mining, manufacturing and construction, among others.


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