Zambia to receive more FDI in 2005: official

Zambia will record an improvement in both foreign direct investment (FDI) and projects this year, Director General of the Zambia Investment Center Jacob Lushinga said here Thursday.

In the first eight months of this year, Zambia has recorded investment pledges at about 179.9 million US dollars, about 250 percent over last year's record for the same period, said Lushinga when he launched the World Investment Report 2005 by the United Nations Conference on Trade and Development (UNCTAD).

Zambia received a total of 123 million dollars FDI in 2004, two percent up from the previous year's 120.9 million dollars, said Lushinga. In terms of the number of projects approved, there was an increase with 2004 recording 121 investment projects as opposed to 92 in 2003, up 31.5 percent.

The World Investment Report 2005 shows that Zambia's FDI flows and stocks have been steadily increasing in the last four years.

The ranking on inward FDI potential has, however, been declining over the years. Out of 140 countries that were surveyed, Zambia is positioned at number 136, which indicated that there is need for improvement if Zambia is to reach its full potential in attracting investment, said Lushinga.

Permanent Secretary of the Ministry of Commerce, Trade and Industry Davidson Chilipamushi said the Zambian government is committed to improving the investment climate through enactment of laws and formulation of policies that increase Zambia's attractiveness as an investment destination.

"One of the areas that government is looking into is the harmonization of laws and policies related to investment," Chilipamushi said.

He said the challenge for Zambia is to identify its unique natural resources and market these to potential investors, noting that most FDI inflows to Africa were in the countries that are rich in natural resources, particularly oil.

He further pointed out that the country needed to address issues of availability of skilled human resource, appropriate infrastructure and investment procedures.

The 366-page report showed that inflows of FDI to Africa last year remained stable at 18 billion dollars. Despite the relatively high levels in historical terms, the figure accounted for a mere three percent of FDI globally, the report said.

Source: Xinhua