The Zambia Development Agency (ZDA) has recorded more than US$1.3 Billion Foreign Direct Investment (FDI) in the first quarter of 2010, surpassing the projected US$1 billion FDI inflow in 2010.
Speaking during the first quarter media breakfast briefing at Pamodzi Hotel today,ZDA Girector General Andrew Chipwende said the recorded investment of K1,344,328,350 FDI in various sectors of the economy represents more than 590% increase compared to US$194,548,459 recorded during the same period in 2009.
He said ZDA utilized the Private Sector Development Reform Programme (PSDRP) initiatives and collaborative outward investment missions with government to key FDI sources like China and India.
Mr Chipwende stated that investors showed increased confidence in the Zambian economy during the first quarter, and that their confidence can be attested by the huge FDI inflow recorded in the first quarter.
He added that many sectors of the Zambian economy recorded tremendous investment inflows during the quarter, with Pick n Pay Zambia Limited planning to open a number of retail stores in the country.
He said Pick n Pay Zambia Limited has a projected investment plan of US$27 million to open seven corporate stores during the first 5 years and 13 stores within 10 years.
Mr Chipwende noted that the approved investment applications in the same period under review were from 59 applicants, with a total number of 5,943 new job opportunities expected to be created once the projects are implemented.
Meanwhile Mr Chipwende has disclosed that the ZDA has received the three binding bid for Zamtel.
He said the three binding bids were received on 12th March 2010 from Lap Green of Libya, Unitel/Cables of Angola and Ultimo of Russia.
He disclosed that the ZDA board approved the negotiations to proceed with two bidders Lap Green and Unitel while the ultimo bid has been put on reserve in case one of the two bids falls away.
Mr Chipwende said the next phase will involve negotiations and actual implementation of the partial privatization of Zamtel which is expected to kick off in the third week of April and possibly conclude everything by the end of June.
QFM
Of the US$1.3bn in FDI, what percentage or amount is for copper mining? The answer to this question would analyse how effective the FDI will be in terms of new employment opportunities, real GDP growth, improved tax revenue and economic diversification.
This report is supposedly being given by our technocrats but why is it so devoid of any substance? Are we supposed to conclude that the most important investment is the South African retail outlet mentioned?
I believe ZDA should attract Investors who would add value to the resources that we have and export them as Zambian made. The problem that we have is that Investors like Pick n Pay will turn Zambia into a dumping ground for RSA made goods. Imagine these characters at one time in KK time used to say we can only get apples from RSA, what happened to Genetic Enginnering??? PLEASE ATTRACT VALUE ADDING investments.
Zambia yalemela……..Pick and Pick… hahahaha.. SA is now exporting of racism
Zambia is not a big economy yet the name of our country is everyone’s lips in terms of FDI. GDP 5.3% in 2009 expected to be about 6.8% in 2010 estimated growth mainly from Construction, Agriculture, Mining Industries, and interest rates will fall, and inflation will also come back to single digit. What an investment destination! We need more and more investors so that alot more people can get jobs and sustain the households. Then all those with fake promises of economic revival will scumper!
What Mr. Chipwende is missing to mention is the type of FDI that Zambia has attracted. He gave an example of Pick N Pay, which is going to open corporate stores. Brothers, FDI in retail trading is not the kind of FDI we need as a third world country. What we need is FDI in the manufacturing sector because this is the kind of FDI that adds real economic value to a nation. Most countries that have benefitted from FDI are those that have put emphasis on manufacturing. Of course FDI creates employment which is essential to spur consumption, a key engine for economic growth because of it’s ripple effects in the economy, but it’s time we began attracting FDI in the manufacturing sector.
Quite how this news changes the price of burgers is beyond me. It’s simply not translating into anything meaningful for Zambians. You have to give the government credit – you can easily set up a business in Zambia, save for the queues at PACRO and ZRA.
What’s lacking is simply the will to give us what we’re due! FDI won’t put medicine in UTH, or buy children in rural Zambia books or put a teacher in front of them. We’re joking. I recommend resistance!!
Let us create a ready market for our SMEs,and rural farmers. FDI can come and we must have a quota system of supplying commodities to these investors’ outlets. Freshpikit has set an example. Add value to the local products, make them competitive. Once we have recieve the monies from our sales we get insurance( medical schemes) among other things and get treated in hospitals. We send kids into schools and improve on literacy levels in mother Zed. We need the will in the local zambian to grow from our own resources and not just pushing trolleys of imported stuff at Manda Hill!
8 Madetsa Woyela, ” we must have a quota system of supplying commodities to these investors’ outlets. ”
There are a lot of ways in which even foreign investment can be beneficial to the economy. What would be reall beneficial would be a national grid-like system that allows farmers and manufacturers to sell their products nationally or globally in a transparant manner. This would maximize prices paid to producers and encourage production that way.
A kind of national e-bay, if you wish.
Also, what if all commodities had to be sold through ZAMACE? That would massively boost their turnover, make prices transparant, and do away with middlemen ‘briefcase buyers’, who often underpay farmers for their products.
A rise in investment approvals and foreign direct investment is a somewhat litimus taste that our country is headed for greater economical days.Serious fiscal policies and market intervation must be put in place to ensue that desirable results are yeilded.