The Zambia Development Agency (ZDA) has recorded a total of USD 5.841 billion worth of projected investments in 2020 from 326 registered investment projects compared to USD 4.880 billion in 2019 from 350 registered investment projects.
Announcing the development at a media briefing today, ZDA Chairperson David Musonda Musopa said this represents a 19.7 percent increase in the value of projected investments.
“Of the total registered investments in 2020, USD 3.170 billion was Foreign Direct Investment (FDI) and USD 2.68 billion was Domestic Direct Investment (DDI), representing 54.3 percent and 45.7 percent of the total projected investment, respectively,” he said.
He explained that the Agency in 2020 recorded re-investments worth USD 1.97 billion from 26 investment projects compared to USD 3.95 billion from 76 projects recorded in 2019.
“These investors projected to expand their businesses and to create 1,626 additional jobs in 2020, compared to the 1,101 jobs that were projected to be created by re-investments in 2019,” he said.
Bishop Masupa further said that ZDA has, in the last five years, recorded a positive trend in the growth of projected investments, mainly in Greenfield Projects.
He said the projected surge in investments confirms the relative conducive business and investment climate created by the Government through ease of doing business reforms, political/economic stability, peace, security, good governance, and a favorable legal regulatory environment.
“Notwithstanding the negative effects of the COVID-19 Pandemic on investments such as the increase in risk aversion, uncertainty, travel restrictions and the freezing of global investment capital, the continued growth of projected investment attests to the continued interest in Zambia as a preferred destination for investment,” he added.
And Bishop Masupa further said during the period under review, the Manufacturing Sector recorded the highest projected investment of USD 2.67 billion, representing 46 percent of the total investment.
He said the Energy and Transport sectors were second and third highest with projected investment of USD 1.66 billion and USD 0.64 billion, accounting for 29 percent and 11 percent, respectively.
“A similar trend was observed in 2019 where the Manufacturing Sector was the highest with a projected investment of USD 1.21 billion, representing 24.7 percent, followed by Energy with USD 1,051.35. Mining sector was third with projected investment of USD 986.49”, added Bishop Masupa.
“In 2020, ZDA recorded one notable high value investment in the Mining sector worth USD 3,660 million, one in the Service Sector worth USD 1,142 million and another one in the Energy sector worth USD 848.0 million.”
Bishop Masupa said the interest in the Mining sector is as a result of the recent export diversification strategy launched by the Zambian government for gold and gemstone to formalize artisanal small-scale mining and trading activities in order to generate revenue from precious metals.
“On the other hand, interest in the Service Sector is a direct result of Government’s efforts in prioritizing the sector for development as well as the Agency’s efforts in promoting and facilitating targeted and strategic investments, such as the promotion of investment in local tourism and renewable energy, in line with the aspirations of the Seventh National Development Plan (7NDP) and the United Nations Sustainable Development Goals (SDGs).”
Meanwhile, a total of 139 Micro, Small, and Medium Enterprises (MSMEs) were formalised in 2020 compared to 63 in 2019, Zambia Development Agency Board (ZDA) Board Chairperson David Musonda Masupa has said.
Speaking when he gave an account on how the Agency performed in 2020, Bishop Masupa said the Manufacturing sector had the largest number of formalised MSMEs with 53 followed by Agriculture and Services with 41 and 24 MSMEs respectively.
He said the mentioned number of formalised MSMEs represents a 122 percent increase.
And Bishop Masupa said ZDA is determined to enhance its performance through strengthened collaboration with various strategic stakeholders.
He said this is after having developed a resilient strategy of the new normal to cope with Covid 19.
Meanwhile, Bishop Masupa said the Agency is committed to the implementation of the ‘Zambia Economic Recovery Program’ (2020-23) that is anchored on the Country’s private sector-led economic growth strategy.
“ZDA is also committed to the N8+1 Implementation Plan that targets Zambia’s neighbouring countries, plus South Africa, as export markets,” he said.
“The expected enactment of the ZDA, ITED, Local Content and Trade Remedies Bills as well as policies such as the MSME Policy will strengthen the Agency’s institutional framework and enhance its responsiveness to the development needs of the country,” he stated.