ZAM­BIA’S GROWTH OUT­LAY FER­TILE

Daily Nation Newspaper - - BUSINESS & CORPORATE - By BUSI­NESS RE­PORTER

THE pre­vail­ing po­lit­i­cal, so­cial and eco­nomic en­vi­ron­ment has cre­ated abun­dant in­vest­ment op­por­tu­ni­ties in var­i­ous sec­tors of the econ­omy, a re­port has re­vealed.

Ac­cord­ing to an eco­nomic re­port, Zam­bia’s mem­ber­ship to the Com­mon Mar­ket for East and South­ern Africa (COMESA) as well as South­ern African Devel­op­ment Com­mu­nity (SADC) has cre­ated an en­abling mar­ket for in­vestors seek­ing to achieve lower costs through economies of scale.

The re­port dubbed ‘For­eign Pri­vate In­vest­ment and In­vestor per­cep­tions in Zam­bia 2018-high­lights’ sum­marises the sur­vey find­ings on for­eign as­sets and li­a­bil­i­ties as well as in­vestor per­cep­tions.

Cen­tral Sta­tis­ti­cal Of­fice, Bank of Zam­bia and the Zam­bia Devel­op­ment Agency com­piled the re­port un­der the theme, “en­hanc­ing in­vest­ment for in­dus­tri­al­iza­tion and ex­port pro­mo­tion to­wards in­clu­sive growth.”

“In par­tic­u­lar, An­gola, the Demo­cratic Repub­lic of Congo present large and un­tapped mar­kets for Zam­bia’s non-tra­di­tional ex­ports,” the re­port says.

The re­port cited tourism, agri­cul­ture, man­u­fac­tur­ing, con­struc­tion and en­ergy as ar­eas filled with in­vest­ment op­por­tu­ni­ties.

How­ever, the re­port ob­served that For­eign Di­rect In­vest­ments (FDI) in­flows in Zam­bia mainly leaned to­wards min­ing and quar­ry­ing in­dus­try.

The re­port said in­er­tia in ac­tu­al­is­ing higher FDI flows to other sec­tors could in­di­cate the pres­ence of bot­tle­necks hin­der­ing in­vest­ment in these sec­tors.

“Thus, to at­tain eco­nomic di­ver­si­fi­ca­tion, Zam­bia needs to at­tract more for­eign in­vestors to sec­tors such as tourism, en­ergy, trans­port, man­u­fac­tur­ing and agri­cul­ture,” the re­port says.

The re­port in­di­cated that for this to be achieved there was need for pol­icy and reg­u­la­tory en­vi­ron­ment.

Gov­ern­ment, the re­port sug­gested, should con­tinue im­ple­ment­ing spe­cific in­ter­ven­tions that would help al­le­vi­ate hur­dles to FDI in­flows in the sec­tors high­lighted.

“The coun­try should be in­no­va­tive and come up with var­i­ous fis­cal and non-fis­cal in­cen­tives that will at­tract FDI,” the re­port says.

In­flows in Zam­bia mainly leaned to­wards min­ing and quar­ry­ing in­dus­try.

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