Friday, March 29, 2024

Zambia’s net FDI inflows rose to $3.2 billion

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BANK of Zambia Governor Denny Kalyalya
BANK of Zambia Governor Denny Kalyalya

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.

6 COMMENTS

  1. “…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…”

    Which economic reforms you are talking about?
    Elected Government officials foreign bank account balances?
    Economic reforms with interest rates @ 27.5%?

    Please stop this buffoonery, instead concentrate on fighting institutionalized corruption, money laundering, incompetence, theft of State resources………………………………..

  2. Why then are we still borrowing big? we’re supposed to be getting enough tax money from those who’re investing in Zed instead of borrowing heavily. Why do we still have too many people on the streets? Where is the money going? Oh, I forgot that is is going into PF pockets like chattering flights to NY

  3. okay from the look of things this is what has made ECL to look calm when he is talking about economic issues,nowonder why some political leaders are just talking about the dollar it is because they have full information of what is happening and what is about to happen to zambia.kalyalya okay nao ni nshimbi

  4. Dr. kalyalyalya is an economist who are just commentators just like journalists. The real creators of wealth are miners, entrepreneurs, farmers etc.

  5. “Zambia’s net FDI inflows rose to $3.2 billion”

    Since when is economic success measured by the ‘inflow’ of FDI? Which inevitably leads to an ‘outflow’ of 10 times that or more.

  6. OK guys, those are just statistics, but the issue is there are many economic fundamentals that must be right for you to see meaningful change on the ground. FDI is just one element.

    So Kalyalya was right in the sense that the theme or subject of discussion was FDI, but it does not mean FDI alone means better economic outlook. It is a basket of other factors inclusive to change Zed.

    -Production..mines, agric, manufacturing(value addition)
    -Tourism
    -Infrastructure…to improve commerce and trade…efficiency in economy
    -Power
    -Finances, low interests, low debt, low inflation
    -Education, attitudes, entrepreneurship
    -etc

    put together

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