INVESTMENT IN EXCESS OF US$ 1.5 EXPECTED IN ZAMBIA

Zambia Development Agency Acting Director for Research Planning and Policy, Collins Sifafula says the country expects record investments worth US$1.5billion by the end of this year compared to the US$ one billion recorded last year.

Mr Sifafula says the increase in investments will be driven by robust mining, manufacturing and energy sectors.

Mr Sifafula said this on Tuesday, 26^th July 2011 in Lusaka at the launch of the United Nations Conference on Trade and Development World Investment Report 2011

And ZDA Acting Director for Investment Promotion and Privatisation, Henry Sakala has said foreign direct investment stocks increased to US$8.515billion last year compared to US$7.4 billion recorded the previous year.

Mr Sakala said Zambia needs to continue to be the investment destination of choice because FDI is a key component of the world’s growth engine.

He said intensifying good economic policies and maintaining a stable political environment are key factors in attracting FDIs.

Mr Sakala observed that the post-economic crisis recovery in FDIs has been slow to take off and is unevenly spread hence the need to attract FDI amid challenges.

The global FDI last year stood at US$1.24 trillion, 15 percent below the FDI recorded in 2007 before the global recession.

In the report, UNCTAD, however, notes that recovery of FDI flows will continue in 2011 with the expected growth of inflows to be between US$ 1.4 trillion and US$ 1.6 trillion.

The report also states that the on-going corporate and industrial restructuring, privatisations resulting from rebalancing efforts and unwinding of state support programmes and the growth of emerging economies will also create new investment opportunities.