Zambia Development Agency (ZDA) records increase in investment ventures compared to previous year
The Zambia Development Agency (ZDA) has recorded 73.53 percent increase in investment ventures this year compared to prior year.
During a press briefing held in Lusaka on Monday, the agency's acting managing Director, Albert Halwampa attributed the increase to the favourable macroeconomic environment which government has improved following the decrease of inflation as well as the appreciation and stability of the Kwacha.
He said 95 investment ventures were registered with an investment of US$1.1 billion while 92 investments were recorded in 2021 with an investment of US$ 631 million.
- Zambia Development Agency recorded an increase in investment ventures attributed to the favourable macroeconomic environment which government has improved following the decrease of inflation as well as the appreciation and stability of the Kwacha.
- 95 investment ventures were registered with an investment of US$1.1 billion while 92 investments were recorded in 2021 with an investment of US$ 631 million.
He further revealed that the investments were in manufacturing, energy, transport, construction, service, tourism and agriculture sectors. Halwampa added that the highest investment was recorded in the manufacturing sector with over US$390 million.
Halwampa said ZDA anticipates to increase its performance next quarter through the prospected revision and enactment of the ZDA, and the Investment Trade and Business Development bills into law which will support domestic investment, trade and business development in Zambia.
He further added that the implementation of the US$50, 000 thresholds for local investors will attract local investors to come on board to invest in their own country.
Halwampa has since called on local investors to take interest in investing in the southern African country and take advantage of the favourable environment which government has created to support local investors.
"Many international investors want to invest in Zambia because of the improved macroeconomic environment. We also want our local investors to invest because the government has even given them a threshold to motivate them," he said.
Halwampa noted that ZDA monitored 27 actualised investment projects worth US$3.89 billion, stating that over 6,000 jobs were actualised from the projects.
"In terms of exports, the total export earnings also increased to US$2.83 billion as compared to US$2.82 billion dollars in the same period of 2021 representing an increase of 0.35 per cent," he added.
He stated that non-traditional exports increased to over US$900 million in the third quarter of 2022 from over US$700 million in the same period last year.
"The agency continued to facilitate the comparativeness of exporters through various services as well as exposure to markets which resulted in deals worth US 27.98 Million dollars being recorded," he explained.
According to a report by Bank of Zambia analysing the direction of merchandise trade for the first quarter of 2022. Total export earnings were US$2.9 billion in the first quarter of 2022, 20.0 per cent higher than the previous year largely due to copper exports. Copper exports grew by 21.9 per cent to US$2.3 billion owing to stronger realised prices as well as a 1.8 per cent rise in export volumes.
Average realised copper prices rose by 19.7 per cent to US$9,882.8 per tonne compared to a year ago. Strong demand from China, low inventories as well as supply disruptions in Peru and Chile explained this outturn. Other major export commodities were iron and steel, lime and cement; inorganic chemicals and compounds of precious metals; and beverages, spirits and vinegar.
- The total export earnings also increased to US$2.83 billion as compared to US$2.82 billion dollars in the same period of 2021 representing an increase of 0.35 per cent.
- Exclusively in the SADC block export earnings were US$127.9 million in the first quarter of 2022. Zambia had zero export earnings from Lesotho with South Africa leading by US$63.7 million followed by Tanzania with US$ 43.2 million.
The statistics were based on the Harmonised Coding System (HS) and exports were valued as free on board (f.o.b.) while imports were reported at cost, including insurance and freight (c.i.f.).
Major export destinations were Switzerland, China, Singapore, Democratic Republic of Congo, South Africa, Tanzania and Zimbabwe
The value of merchandise imports was 48.2 per cent higher at US$1.9 billion in the first quarter of 2022 than a year ago. According to the Bank of Zambia, the continued easing of supply constraints in trading partner countries as well as the pickup in domestic activity accounted for the increase in imports.
Major source countries for imports were South Africa, China, Democratic Republic of Congo, United Arab Emirates, India, Japan and United States of America. Imports from the top five source countries accounted for 68.6 per cent of total imports with South Africa being the largest contributor at 28.5 per cent.
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Exclusively in the SADC block export earnings were US$127.9 million in the first quarter of 2022. Zambia had zero export earnings from Lesotho with South Africa leading by US$63.7 million followed by Tanzania with US$ 43.2 million.
The value of merchandise imports was at US$648.2 million in the first quarter of 2022 compared to US$471.6 million recorded in 2021 in the same quarter.
Zambia had zero imports from Angola and Lesotho while South Africa had the highest imports amounting to US$545.1 million.
Exclusively in the COMESA block export earnings were US$27.7 million in the first quarter of 2022. Zambia had zero export earnings from the Comoros, Djibouti, Eritrea, and Ethiopia. Kenya led the export group by US$14.3 million followed by Burundi with US$ 4.8 million.
The value of merchandise imports was at US$14.9 million in the first quarter of 2022 compared to US$17.8 million recorded in 2021 in the same quarter. Exhibiting a decrease in imports within the COMESA block.
Zambia had zero imports from Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Libya, Rwanda, and Sudan. Zambia had the highest imports amounting to US$10 million from Kenya.
These figures illustrate that Zambia is more involved in trade with the SADC block than the COMESA block.
