ZAMBIA recorded US$1.6 million foreign direct investment inflows (FDI) in 2015 from US$1.5 in 2014, says Zambia Development Agency (ZDA) director general Patrick Chisanga.
Speaking when he submitted to the parliamentary committee on economic affairs, Mr Chisanga said Zambia recorded a gradual increase in FDI earnings in 2015
“We have seen a gradual increase in FDI into our country and most of this has been partly from the investment work by ZDA and you will see that there has been steady growth right up to 2010,” he said.
Mr Chisanga said FDI in the period between 2010 and 2011 dropped from US$1.7 million to US$1.1 million because it was an election year.
He however said the FDI picked up from 2014 and 2015.
“In 2011 we dropped to US$1.1million from US$1.7 in 2010, but that was an election year and generally speaking, not just in our country but in most emerging economies that was the trend,
“During election time investors tend to hold back in FDI however in 2012, it started rising from US$1.7million,” he said.
Mr Chisanga said FDI played a critical role in poverty reduction in Zambia through job creation in almost all sectors of the economy.
He said FDI had been one of the most efficient and effective strategies of directing development and redistributing wealth in poverty stricken communities.
Meanwhile, Mr Chisanga said a United Kingdom-based company called Sunbird limited would soon put up an ethanol plant in Kawambwa district of Luapula Province that will engage 20,000 small holder cassava growers. The crop will be used as the main raw material.
Mr Chisanga said ZDA facilitated market support for Zambian enterprises by identifying regional and global markets for local products which enhanced linkages between local and global partners.
He said local entrepreneurs including farmers became self-reliant and viable through skills and technology transfer.
“The same benefit can be attributed to any export-based industry because the overall advantage was that jobs were created and local capacity built through transfer of skills and technology,” he said.