Zambia has the highest inflow of Foreign Direct Investment (FDI) among the 16 Landlocked Developing Countries in Africa, according to the UN Conference on Trade and Development (UNCTAD)
This is according to a statement released to the media by Zambia’s First Secretary for Press and Public Relations Permanent Mission to the United Nations, Chibaula Silwamba.
Speaking at a special event on facilitating the participation of Landlocked Developing Countries (LLDCs) in regional and global community value chain, UNCTAD New York Office chief Chantal Carpentier said FDI flows to LLDCs fell by 11 per cent in 2013, and that the Asian group of LLDCs experienced the largest fall in FDI flows of nearly 50 per cent.
“Despite a mixed picture for African LLDCs, eight of the 16 LLDCs economies increased their FDI inflows, with Zambia attracting the most at $1.8 billion,” said Ms Carpentier.
At the same function, Zambia’s Minister of Transport, Works, Supply and Communications Yamfwa Mukanga urged LLDCs to strive to attain sustainable development and save the lives of the people from the poverty circle.
“Our major pre-occupation should be to find lasting solutions to the challenges we face through diversification of our economies, value-addition to the commodities we produce, and enhancing our competitiveness which will enable us join regional and global value chains,” said Mr Mukanga, adding that “this will inevitably call for greater cooperation in fundamental transit policies, laws and regulations with our transit neighbours.”
He expressed gratitude that UNCTAD continually advocates for a comprehensive development-centred agenda for LLDCs to address transport, transit and trade facilitation challenges.
The Minister called on development partners to assist LLDCs invest in infrastructure, development institutions, enhancement of entrepreneurship, training of human resource and skills development, technology acquisition and impart technological know-how in the people.
“Regional integration and cooperation should be strengthened under the new concept of developmental regionalism to develop regional infrastructure networks which would in turn enhance competitiveness and increase productive capacities,” said Mr Mukanga. “Unlocking the trade potential of LLDCs will also require the prioritization of energy supply.”
Presenting a case study on Zambia, economist and interregional consultant Lindani Ndhlovu said Zambia should work with its neighbours within the Regional Economic Community (REC) to develop infrastructure and reduce the cost of transport and electricity.
“Build a more substantial and diversified industrial base for Zambia, using the catalytic force of the large mining investments. Facilitate the development of the manufacturing sector to increase opportunities for beneficiation of copper,” said Mr Ndhlovu.
The discussion – organized by UNCTAD, the Common Fund for Commodities (CFC) and the UN OHRLLS – focused on the challenges, opportunities and the way forward for the development of the 32 landlocked developing countries.
In July, the African Union said “in recent years Zambia witnessed a substantial 93 per cent rise in investments compared to 2011, a feature attributable to a well-managed economy and a peaceful transfer of power.”
Great. Let’s continue on that path. What say you doomsday preppers?
Of what benefit is this to the common man in Zambia? Nonsense.
@Le Grand Mopao (MM) Wa Zabanga, I am dumdfounded, I am mouthless, surprised at this your ignorance. You mean you do not understand the implication to a common man of having high FDIs?
Let me take the trouble to try and give an inkling of this. FDI or Foreign Direct Investment is about foreigners bringing their money to open businesses in Zambia. When this happens, it means more taxes for govt, EMPLOYMENT for the common for the common man. It means improving the country’s profile as good destination for investment, thus creating a good name for more entrepreneurship adventurers into our country. Back to taxes, when govt makes more money in taxes, it will build good roads, hospitals and clinics, buy drugs etc FOR THE COMMON MAN. Are you that daft?
@Chindakwanda
The same foreigners are very good at taking out twice, and more, of what they bring in while pretending to be making loses and demanding VAT refunds. So what is the value to the common Zambian man in Kansanshi, Solwezi?
Remember, Zambia has also been listed as “Topping” the list of the most malnourished countries in the world as well as one of the poorest. How does that correlate to the FDI?
@It’s a worry
Your concerns are in-house issues within Zed. Every country has some issues of one kind or another. However, the principle remains that modern economic set up has this FDI thing interwoven in the DNA of all successful economies. You have Europeans and Americans investing in China, India, Brazil and the Chinese investing in America, Europe, Africa and Zambia for that matter. Marco Polo buses manufactured in Brazil were an FDI. The original company is from Europe. Your case of singling out the mines is another topic.
But you have Zambeef, Shoprite, Lafarge, Dangote, Spar, Airtel, MTN and a hundred more companies doing a great job in Zambia. This is through employment creation, taxes, better quality goods, efficiency, technology and skills. After all no country is an…
@Chindakwanda
FDI’s in some sectors are not working out too well as @it’s a worry and @Le Grand Mopao are trying to put across.
Mines are the main revenue source for big time earnings for Zambia, but the so called mining investors are detracting from that fulfilment. We can’t be dismissive to the fact we are not getting top earnings from mines. We should control both mine and tourism industries ourselves so we are not losing out on big Revenue. 50 years on we should have formidable expertise in copper mining through targeted education and expenditure in previous and current gov’ts. This never happenend.
The other investment sources like large global supermarkets are not even so necessary for a country. We should have equivalent large national Zambian Supermarkets running…
@Patriot Abroad
The problem i have with you is that you have convinced yourselves that FDI=Mines
No, my friends! Even the mines can do better under certain conditions. That is another subject. But my contention is that FDI can be a million other things dudes.
It can be services like the MTN and Airtel or education like Cavendish and other Un. Can be assembly line like Hitachi earthmoving equipment in Lusaka. It can be manufacturing like Dangote and Larfarge cement. It can be agro-processing like Zambeef. It can be in construction like the Chinese are doing. e.t.c
Take away these industries and you remain with your Salaula trade and gallivanting ku Dubai..
Do not close off your minds and throw the baby with the bath water, by conclusively terming FDI as hogwash. That is being…
@Chindakwanda
It appears you are riding on assumptions. I never said FDI’s = Mining. That was simply an example that people can relate to. We can put shoprite, Zambia Sugar (Illovo) or any of the companies you have listed above, as a case in example, and the point will remain “that investors are in Zambia to “steal from the poor” while dangling carrots at your elected members (Shamenda refused one) and blinding the likes of you with headline claims of $Billions being pumped into Zambia (KCM) but these never benefit a common man in Zambia. casual jobs as cashiers, diggers or cattle herders will not sustain anyone nor elevate the country to the status of the China’s, India’s etc. That’s my point. It is not a failure to understand FDI as you are trying to insinuate
@It’s a worry,
You still haven’t got it, have you? I have not said this one aspect of the economy will make citizen’s happy. A well performing economy is a complex equation with many variables contributing to the overall picture.
So when you read FDI in this article, you jumped on the band wagon condemning its contribution to the welfare of the common man.
This is utter ignorance and a cheap go at low hanging fruits. Rubbishing every issue about Zambia is your basic instinct, albeit without knowing it.
@Chindakwanda-Galileo Galilei, pa last uli bbollo fye just like many pf morons. You are not making any sense you !diot. Continue living in denial.
@Le Grand Mopao Wa Zabanga
Ooh yeah, wamonekela empty tin! No substance in your argument, kikikikikikiki.
whilst i agree with this research, i believe comparing our country only within the land locked is eliminating competition. how is Zambia faring in Africa and also within Zambia how is it faring with rural and urban areas
That is another level of comparison boss. For this one, the common denominator was BEING LANDLOCKED. As far is this factor is concerned in affecting our performance in attracting FDI, we have done well. You can have another category of countries with access to the sea uh.
Then you can bring in your other variable to make the equation more complex.
Be realistic! you cant compare and contrast ichumbu nakolwe… thats why land locked should be compared with land locked.. period.
I dont know what people like Wanzelu & Jayjay will say coz they seem to be permanently wedded to biased view of how Zambia’s economy is performing because of being two bit UPND cadres.As for the hard working government, keep it up.It will be easier for you to campaign in 2016 because you will be pointing at your achievements whilst other parties will be talking of the constitution and the health of Mr Sata who may not even stand.
I know losers like Wanzelu or Alibe Nzelu, Dudelove or Dudehate, Jay Jay or Jay Gay, Anderdon Chisala or Anderson Mushala, Nastrodamus or Nastrodemon, Mei Matungu(Wanzelu) or Mei Matuvi will dispute these facts. All they want to hear about PF is bad news. Congrats PF! You are doing very fine. Let haters eat their humble pie.
@The one
I am not defending any of the people you have listed above. However I have to question your mind and ask if you really believe that this PF Govt is delivering on anything except building of Universities structures in a few provinces? (Mind you building of university structures is not an achivement if you cant equip them with qualified staff and other resources in order to produce the finished article in a student). If you say they do, then your mind needs examining because you will no doubt prove to be a useful 1diot who blindly supports the PF.
@It’s a Worry,
Better you build universities and solve the issue of human resources later. This is definitely better than not having both infrastructure and no human resources.
FYI, human resources can always be imported. You saw that Botswana imported a lot of Zambian teachers for example. These same universities will later produce students who will proceed to become lecturers in a few years to come.
Think!
@Chindakwanda
There is what developed nations call strategic planning and project management. You cant embark on building new universities without planning for how you will fund and staff them including equipment to educate students. You cant embark on building new universities without dealing with the dilapidated ones that current exist. If any Govt takes your position of “Build now and worry about staff later” we shall end up with “White elephant structures” adding to the Stadium in Mongu. Anything below UNZA is a failure in my view.
Your PF Govt has no forward planning capacity to emulate what Botswana did nor have they got the money to woe expartriates to come in at University level. They cant even pay barsuries to students at Unza as we speak. Get real..its the reality in Zed
@It’s a worry
Who tells you that there is no planning in all this? Do you know what the PF manifesto prescribes. Do you follow the Millenium Development Goals? Do you know what the Sixth National Development Plan say? Do you have the Vision 2030. You mean these government documents and the capable party in power has not thought through this?
What I gave you is a strategy. Let us build, improve access and later quality. What we we want is to remove the pyramidal kind of progression in the our education system where very few find themselves higher up tertiary education. You start many in grade one and graduate three in a particular course. is that good for you?
My friend, be informed that there are better brains than your erratic ranting from the key board somewhere.
Dido!
@Chindakwanda
Did you just mention the PF Manifesto?
I am begining to realise that you are just another gullible soul that believes in the words Sata and his docile MP’s utter during by-elections or anything called campaigns. I imagine you also bought all the lies that have been published and supported by the Post newspaper if you still have faith or indeed recognise the PF manifesto. The rest of the documents, including the Sixth National Development Plan, is nothing but documents used while the Govt parade their begging bowls before the developed nations. Otherwise we would have seen the tangible benefits of the 5th, 4th and 3rd national development plans.
Wise up and open your eyes to reality
It’s a Worry
You have a problem. I am not going by the politics of the campaigns! I am referring to the written document! The PF manifesto! This thing is being followed and many government policies and programmes are aligned to what it says.
You are so backwards that you are not able to understand the governance system. Yours is street politics and you have a low comprehension of what it means when a party is in power.
Take time to find out what the government is doing. On that same score, do you ever wonder why voters back in Zambia think the PF are doing a great job? There is transformation taking place at a pace never seen before under your MMD.
This is fact whether you like it or not. Be educated in this and discard your trained disposition of ranting ignorantly.
PF SHOULD BE GIVEN MORE YEARS. THERE ARE DOING VERY FINE.
people appointed in foreign missions not performing; recall them. Zambia rated best landlocked in FDI..which is which?…someone is hiding something under the carpet.
@The One
You have made my day. Matungu / Mei Matuvi is actually Mai Mai Matufi or Watery Matufi.
Now what do HH and his stoogies say? I’m sure HH must be choking with envy?
Nice way to put it: “..tops landlocked countries..”. Isn’t Zambia a top copper producer? Take away the copper and we will see none of that highly talked about investment inflow. Where else in the world can one go, invest $25 million in a gold or copper mine and rake-in billions monthly? Certainly not in Ghana. The Chinese were shown an exit there not too long ago. The fact is any investor who cannot take advantage of sleepy Zambia is out of luck.
@Mei Matungu ,
But is Ghana’s economy doing well? You forget one thing that all investors are basically businessmen going or coming after a profit and not to come and give charity.
@Chindakwanda-Galileo Galilei: “But is Ghana’s economy doing well?.” What do you think?
@Chindakwanda-Galileo Galilei: About 5 years ago, Zambia’s GPD was comparable to that of Ghana. But Ghana had the uglier over-burden – a population count nearly twice that of Zambia. What was markedly different between the two countries then, were their growth projections. Ghana made astoundingly higher projections relative to Zambia’s under par. Now, by 2013 numbers, Ghana’s GDP stands at $90.41 billion while Zambia’s is at $25.47 billion.
Recently, 50 plus African leaders met with U.S. president Barack Obama in Washington DC., during which U.S. companies pledged $37 billion of investment money to Africa. Ghana has already signed onto $498 million of that money and Zambia zero, as at now. Since you go by the name Galileo, you can help me answer your own question above.
@Chindakwanda-Galileo Galilei: Allow me to venture in a question of my own to you: How has it been possible for Nigeria to overtake both S. Africa and Egypt, hitherto the traditional leaders, as the largest economy in Africa?
Here is my take: I tend to believe that we are beginning to see in Africa the value and benefits of educated leadership. The high level of education that is packed and concentrated within the boundaries of Nigeria is beginning to show its effect. As at now, that country’s entertainment industry is second to none in Africa and one of the largest in the world; the third to be specific! The quagmire in the north aside, Nigeria exudes human capital and talent. In Zambia, value for educated leadership is yet to be a national priority.