Q FM Africa's Modern Radio
The results of the 2014 Foreign Private Investment and Investor Perception survey show that Foreign Direct Investment inflows into Zambia grew by 21.3% to US$2.1 billion in 2013.
Speaking during a dissemination workshop in Lusaka today, Bank of Zambia Governor Michael Gondwe says from US$1.7 billion recorded in 2012 driven largely by investments in mining and manufacturing sectors, an analysis of FDI inflows by source country shows that the United Kingdom, Switzerland, China, South Africa, Australia and Singapore were the major source countries accounting for 91.3% collectively with the mining sector attracting 65.5%.
Dr. Gondwe says the findings also suggest that the overall ease of doing business in Zambia was generally very good with a number of investors favorably rating factors such as starting business, employing workers and protecting investors.
The Central Bank Governor notes that issues relating to getting credit, enforcing contracts and registering property continued to be a source of concern to investors and were rated unsatisfactory, adding that these are the issues the country should endeavor to improve in order to facilitate accelerated investor inflows in the country.
Dr Gondwe adds that the reforms that have been undertaken in the last five decades are meant to stimulate economic growth and development to impact positively on poverty reduction.
He further states that the economic reforms so far undertaken have contributed to boosting both local and foreign investor confidence in the economy and thereby attracting external capital inflows.
The survey was aimed at capturing the magnitudes, types, sources and direction of foreign private investment for the year 2013 and the first quarters of 2014 as well as investor perception on the investment climate in Zambia.