Zambia: Govt Targets U.S. $10 Billion FDI

GOVERNMENT has targeted to attract US$10 billion worth of Foreign Direct Investment (FDI) this year to increase Zambia's capacity to produce finished and value added products.

Former Commerce, Trade and Industry minister Robert Sichinga said the Government had increased the FDI projection from $4 billion in 2012 to $10 billion this year due to a number of projects being promoted such as the Multi Facility Economic Zones (MFEZs).

Mr Sichinga said in Lusaka that Government would take advantage of the various investment promotions to be undertaken to entice investors to invest in the MFEZs that would be created in all the provincial centres.

"For this year we are targeting $10 billion worth of FDI which is an increase from last year. We will concentrate on all the priority areas as outlined in the Sixth National Development Plan (SNDP)," Mr Sichinga said.

He said the $10 billion worth of FDIs was achievable because the Government was promoting the development of MFEZ in all the provincial sectors, saying that was expected to increase the investment levels in the country.

According to Zambia Development Agency (ZDA) investment promotion director Florence Mumba, Zambia attracted $10.142 billion worth of investment pledges in 2012, the highest ever recorded in the history of Zambia.

The $10 billion investment pledges were recorded in the various sectors of the economy.

They were as the result of the improved investment climate and stability in major macroeconomic indicators arising from prudent economic management and favourable political environment.

In 2011, Zambia recorded in excess of $4 billion worth of investments as compared to over $10 billion achieved in 2012.

The largest component of the investment pledges came from the mining sector at 40 per cent, with the manufacturing sector posting about $700 million and the energy sector registering about $ 600 million.

The employment pledges hit close to 31,000.

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