Zambia Investment Center (ZIC) has said about 75 percent of the companies monitored in 2005 by the institution have expressed concern that the process of obtaining licenses and permits in Zambia was lengthy and bureaucratic.

The companies have complained that cumbersome procedures frustrated investors and posed a major obstacle to attracting more investments in the country.

ZIC monitored 20 companies last year to collect information regarding implementation rates of investment and employment pledges and other related investment related pledges.

The results showed that 83 percent of the companies indicated that tax on raw materials was increasing production costs.

And 72 percent of the companies monitored said a reintroduction of incentives would attract more investments to boost the country's production base.

In the period under review, the services sector had the highest actual investments of 64 million U.S. dollars followed by manufacturing sector at 63 million dollars and agriculture sector at 29 million dollars.

Construction and tourism sectors have recorded investments at 2. 9 million dollars and 91,000 dollars respectively.

No monitoring was carried out for mining, transport and health sectors during the year, ZIC stated.

Source: Xinhua