ZAMBIA’S FOREIGN PRIVATE INVESTMENT INFLOWS DECLINED TO $935.4 MILLION IN 2009 FROM THE $1,932.8 MILLION RECORDED IN 2007

THE LATEST SURVEY FINDINGS RELEASED TODAY HAVE REVEALED THAT ZAMBIA’S FOREIGN PRIVATE INVESTMENT INFLOWS DECLINED TO $935.4 MILLION IN 2009 FROM THE $1,932.8 MILLION RECORDED IN 2007.

THE REDUCTION IN THE FOREIGN PRIVATE INVESTMENT INFLOWS HAS BEEN ATTRIBUTED TO LOWER PROFITS RECORDED BY ENTERPRISES AS WELL AS THE DEVELOPMENTS ON THE GLOBAL MARKETS DURING THE YEAR UNDER REVIEW.

THIS IS ACCORDING TO THE THIRD SURVEY FINDINGS ON FOREIGN PRIVATE INVESTMENT AND INVESTOR PERCEPTIONS IN ZAMBIA FOR THE YEAR 2010.

ANNOUNCING THE DEVELOPMENTS IN LUSAKA THIS MORNING, CENTRAL BANK GOVERNOR DR CALEB FUNDANGA EXPLAINED THAT AT A GLOBAL LEVEL, FOREIGN DIRECT INVESTMENT INFLOWS DRASTICALLY DECLINED TO $1,114.2 BILLION IN 2009 FROM $1,770.9 BILLION IN 2008.

DR FUNDANGA FURTHER EXPLAINED THAT THE NEW EQUITY INVESTMENT INFLOWS IN ZAMBIA NONETHELESS SURGED TO $419.2 MILLION IN 2009 FROM $131.6 MILLION RECORDED IN 2007.

DR FUNDANGA ALSO POINTED OUT THAT THE ECONOMIC REFORMS AND FAVOURABLE INVESTMENT CLIMATE CREATED HAS RAISED INVESTOR CONFIDENCE IN THE ZAMBIAN ECONOMY THEREBY ATTRACTING BOTH LOCAL AND FOREIGN INVESTMENTS.

AND COMMENTING ON INVESTOR PERCEPTION, DR FUNDANGA EXPLAINED THAT BETTER INFORMATION ON THE SUBJECT WILL HELP GOVERNMENT IN DESIGNING POLICIES AND PROGRAMMES THAT WILL FURTHER HELP TO ENHANCE ZAMBIA’S FAVOURABLE INVESTMENT CLIMATE.

HE SAYS RELIABLE INFORMATION ON CAPITAL FLOWS WILL ALSO IMPROVE BALANCE OF PAYMENTS STATISTICS FOR ZAMBIA AND SERVE AS AN EARLY WARNING SYSTEM FOR GOVERNMENT ON POTENTIAL FINANCIAL CRISES AND OTHER EXTERNAL SHOCKS.

MEANWHILE, THE PRIVATE SECTOR EXTERNAL DEBT HAS CONTINUED TO GROW OVER THE PAST FEW YEARS WITH THE LATEST FIGURES STANDING AT $5,733.9 MILLION IN 2009 FROM $4, 954.9 MILLION RECORDED IN 2008 WITH THE LARGEST SHARE OWED TO RELATED ENTERPRISES.

WHILE, THE STOCK OF FOREIGN ASSETS HELD ABROAD BY THE PRIVATE SECTOR IN ZAMBIA STOOD AT $1,279.5 MILLION AS AT THE  END OF DECEMBER 2009 FROM $971.3 MILLION RECORDED IN 2008 AND A TOTAL OF $151 MILLION NET INVESTMENT ABROAD WERE RECORDED.

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