17 December 2012

Zambia's Overseas Investments Grow

ZAMBIA's portfolio investment abroad surged to US$3.5 million in 2011 as compared to US$0.1million the previous year.

The stock of portfolio equity investment assets abroad in the first quarter of 2012 was recorded at $3.39 million and slightly went up to $3.46 million in the second quarter of the year.

Bank of Zambia (BoZ) director-economics Emmanuel Mulenga Pamu said the Zambia's portfolio investments abroad increased from $0.1 million in 2010 to $3.5 million in 2012.

With regard to the recipient countries, the foreign investment and investor perceptions in Zambia -2012 survey findings indicates that Botswana was the main destination accounting for more than 90.0 per cent of the stock. Dr Pamu said in Lusaka that the portfolio investment holdings were in the form of equity held in listed enterprises abroad by the resident enterprises.

He said during the period under review, Zambia's financial derivatives assets declined to $6.1 million at the close of 2011 from $86.1 million at the end of 2010.

Dr Pamu explained that this was mainly due to a decrease in forwards and options held by the deposits taking corporation in the United Kingdom.

"Other investments held by the private sector abroad include lending to non-affiliates other than portfolio investment and financial derivatives, continued to be concentrated in a few countries. The United Kingdom was the major recipient country accounting for 45.9 per cent of the stock at the end of 2011," Dr Pamu said.

He said during the same period, Zambia's net private sector foreign asset outflows declined, due largely to a reduction in foreign direct investment, financial derivatives and other investment outflows saying that portfolio investment, however increased.

According to the survey conducted by BoZ, Central Statistical Office and Zambia Development Agency on Foreign Investment and Investor Perceptions in Zambia -2012, employment levels stood at 95,845 with mining, agriculture, manufacturing, wholesale and retail collectively accounting for about 70.0 per cent.

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