The Zambian government announced Friday a dramatic increase in the minimum portfolio investment fees from 50,000 U.S. dollars to 500,000 dollars required before any foreign investors are allowed to set up business in the country.

Minister of Home Affairs Ronnie Shikapwasha said the increase was due to outcry from local investors who have been crying for protection against competition from foreign investors who have flooded this southern African country.

Addressing a meeting of senior immigration officers, Shikapwasha said "we have decided to increase the minimum portfolio investment due to public outcry."

He said the Zambian government has increased the amount because it would like to see "only serious investors" coming into the country.

The government has since instructed the immigration department and the Zambia Investment Center (ZIC) to start implementing the new figures for any new investors applying to invest in the country.

However, the minister could not state what would happen to foreign investors who are already operating in the country and whose minimum portfolio investment falls short of the new figure.

The local investors have been crying for protection saying some of the foreign investors were conducting businesses that could even be done by local investors. They have called on government to restrict certain businesses such as trading to local investors only.

Source: Xinhua