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Zambia Records Gains
Zambia has registered a 419 million U.Sdollar increase in new equity investmentinflows. The 2009 equity investmentinflow is higher than 131 million U.Sdollars registered in 2007. This is ac-cording to phase three of the PrivateCapital Flows Survey for 2010.
Bank of Zambia Governor Dr. CalebFundanga says the substantial increasein investment inflows is largely due tothe favourable investment climate thatZambia has put in place adding thatthese positive reforms have broughtforeign direct investment into the coun-try. Dr. Fundanga however says the overallforeign direct investment inflows de-clined in 2009, due to low profits re-corded by enterprises, which was consis-tent with global developments. The Governor was speaking at a dis-
semination workshop dubbed „”Foreign
Private Investment and Investor Percep-
tions in Zambia 2010” in Lusaka.
The objective of the survey was to moni-tor and manage the capital flows. It wasconducted by the Bank of Zambia incollaboration with Zambia DevelopmentAgency (ZDA), Central Statistical Office(CSO) and other Balance of PaymentsStatistical Committee (BoPSC) memberinstitutions. At the same function, Macro-economicand Financial Management Institute of Southern Africa, Elias Ngalande com-mended the team for completing phasethree of the survey using best practices,which has put Zambia in the frontline.He noted that the surveys will assist inassessing the level of investment inflowscoming into Zambia. Dr. Ngalande says his firm will continueconducting foreign private capital sur-veys with the focus of harmonizing sur-vey mythologies, developing early warn-ing systems for crisis mitigation andincreasing the involvement of the privatesector. And closing the workshop Zambia Devel-opment Agency Director General, Mr.Andrew Chipwende, commended theprivate sector for their good response tothe survey saying the response rate of 86 percent indicated the good collabora-tion that exists between the private sec-tor and public sector. He said it was important to conduct thesurvey in order to come up with useful
ZDA Projects $3bn FDI Rise
THE Zambia Development Agency(ZDA) will this year focus on three keyperformance areas to propel the coun-
try‟s economy further and has pro-
jected increased Foreign Direct Invest-ment (FDI) inflows of between US$1billion and $3 billion commitments.
The targeted sectors are Small andMedium Enterprises (SMEs) develop-ment, national infrastructure develop-ment, FDI and trade promotion. ZDAdirector general Andrew Chipwendesaid the focus of the agency on SMEswould capture, nurture and developnew business ideas with potential tocompete in globalised competitiveenvironment. He said ZDA had planned to promote
„the one village one product initiative‟
while increasing the number of enter-prises translating from micro status tosmall enterprises by 10 per cent. Mr.Chipwende, who was accompanied bysenior ZDA officials, said this in Lusakaat Pamodzi Hotel during a media brief-ing on 2010 highlights and outlook for2011.
“ZDA has planned to increase the num-
ber of business linkages between Me-dium and Small Enterprises (MSEs)and large corporations by 20 per cent.We plan to increase the range andquality of goods and services producedby micro, small and medium sized
enterprises with export potential,” he
said. Mr. Chipwende said five domesticfirms would be linked with foreign busi-nesses through joint venture whilepromoting domestic investment byconnecting them to equity and debtfinancial institutions in order to pro-mote local investments. On FDI and trade promotions, he said,ZDA projected an actual FDI inflow of between $1.0 billion and $ 3.0 billioncommitments through the concept of one stop shop. The increased FDI
would contribute to the Government‟s
programmes efficiently and contributeto the central treasury.
ZDA also intends to increase the numberof exporters by 10 per cent and therange of goods and services for exportmarket by 10 per cent. On infrastructuredevelopment, he said ZDA would de-velop common user facilities for micro,small and medium sized enterpriseswhile securing commitment of $2.0 bil-lion investment in infrastructure.
information to formulate appropriatepolicies and improve the investmentclimate. Mr. Chipwende urged the Government,through the Ministry of Finance andNational Planning, Ministry of Com-merce Trade and Industry, and the Bankof Zambia to play a leading role in sup-porting the survey. He also called onMEFMI, COMESA and UNCTAD to con-tinue providing technical support. A total of 350 enterprises were enumer-ated, of which 303 responded, repre-senting a response rate of 86.6 percent.The survey was conducted in line withinternational best practice. It incorpo-rated the requirements for the IMF Coor-dinated Direct Investment Survey (CDIS)as well as the COMESA /UNCTAD re-quirements on Activities of Transna-tional Corporations TNCs.
State issues First oil ExplorationLicence
The Government has offered the first oilexploration licence to a Zambian com-pany called the Barotse Petroleum Com-pany.
And Mines and Minerals DevelopmentMinister Maxwell Mwale has advisedinvestors in Zambia not to get worriedabout the confusion that had rockedWestern Province over the BarotselandAgreement. Speaking when he signed the licence forBarotse Petroleum Company, Mr. Mwalesaid the Government would not allow
lawlessness in Zambia. “There are peo-
ple who just want to champion confu-sion, but the Government will not toler-ate this kind of situation to prevail. In-vestors should not be scared because
everything is under control,” he said.
Mr. Mwale said the Government ex-pected the exploration company tomove into the blocks as soon as therainy season was over. He said six com-panies - three Zambian and three for-eign - successfully bid for the advertisedoil and gas blocks in the first round.Mr. Mwale said two successful biddersin the second bidding round were Zam-bian companies, Majetu Block 15 inNorth-Western Province and Block 34 inthe Kafue Basin in Southern Province.He said the licensees' should adhere tothe guidelines of the strategic environ-mental assessment under the petro-leum exploration and production gen-eral regulations.