Current business reforms being undertaken by the Zambian Government have led to attraction of investment inflows amounting to US$3.4 billion from January to October 2010, exceeding the targeted US$3 billion for the whole year.
Commerce, Trade and Industry Minister Felix Mutati said the $3.4 billion worth of investments in various sectors of the economy has come because of the improved investment climate and stability in major macroeconomic indicators arising from prudent economic management and business reforms.
Last year, Zambia recorded in excess of US$1.8 billion worth of investments with the manufacturing sector leading in terms of investment recorded which exceeded $580 million.
In an interview in Lusaka yesterday, Mr Mutati said in terms of foreign direct investment (FDI) for the period under review, Zambia registered $3 billion.
Mr Mutati said about 25,704 jobs were created between January and October 2010 from sectors such as agriculture, construction, education, energy, engineering, financial institutions, health, Information Technology Communication (ICT), manufacturing, mining, tourism, real estate, service and transport.
He said the manufacturing sector attracted investment worth $1.2 billion with 13,786 jobs being created.
“This Government of Mr Rupiah Bwezani Banda shall continue providing a favourable investment environment by continuing to reduce the cost of doing business in order to attract additional domestic and foreign investment for wealth and job creation that will lead to the attainment of the Vision 2030 of transforming our country into a prosperous middle-income country,” Mr Mutati said.
Zambia’s incentive package was among the best in the region, if not the entire Africa.
Investment opportunities remain untapped in the manufacturing, agriculture, tourism, energy and mining sectors.
Mr Mutati said recently, the Government developed and approved the Commercial Trade and Industrial (CTI) Policy for the period 2010 to 2014.
The vision of the Government under the industrial sector in the CTI policy was to develop a competitive, export-led manufacturing sector that would contribute 20 per cent of the Gross Domestic Product (GDP) by 2015.
Mr Mutati said regarding the performance of the manufacturing sector during the Fifth National Development Plan (FNDP) period, the sector had continued to grow at an average annual growth rate of 3.25 per cent.
Its contribution to the GDP during the same period averaged at 10.2 per cent.
The major challenge in the sector remained the high cost of doing business, which the Government was addressing as evidenced by the 10 places improvement on the World Bank Doing Business Rankings.
“Our target in the next three years is to move up by 40 places. This indeed shall be accomplished taking into account the vigorous business and licensing reforms being undertaken by my ministry to further reduce the cost of doing business,’’ he said.
Mr Mutati said transformation of the industrial sector and sustaining its competitiveness was one of the major factors in determining the pace of economic activity in Zambia.
Despite the challenges in the manufacturing sector, new companies have set up base in Zambia, which include Varun Beverages, Universal Mining and Chemical Industries Limited, MM Mobile, El Sewedy Limited and MM Integrated Steel Mills Limited.
[Times of Zambia]
seems good!keep on working hard.
This is good info from Hon Felix Mutati. It would have made sense to tabulate the figures for employment created at least by stating Company so created jobs numbering so otherwise this is just political talk. There are no clear signs that employment is being created coz there are alot of lofas on the street. I have been doing my own round of surveys regarding Zambians employed by so called investors. Its a miracle how theyare surviving on monthly earnings as little as K350,000 to K500,000 per month. GRZ should do something. The statement by ZRA Boss CG that P.A.Y.E will consitute the bulk of GRZ Revenue is joke of the year. Does this man realy know that there is alot of cool cash in the informal sector and if the tax net was widen it would make a great contribution. That man is crazy
Effort is we appreciated Hon Minister and the GRZ. Though as a Country we need to put an end to a curtail by the banking sector, why is it that, while we are seeing a reduction in the inflation rate the lending rate continues to be stagnant @ 22% – 25%. The banking sector need to do more to reduce the lending rate otherwise its not contributing as expected.
The reason why we achieve less as a country is not becoz we aim high and miss, but we becoz we aim low and hit.
Great news.
It is good to attract FDI for zambia.It would be equally good or even better for zambia and its companies to have investment especially in the southern africa region.These investments would bring the profits back to zed and more importantly it shows zambia’s confidence and ability to compete.Right now zambia lacks the confidence to even run its own companies having sold off to foreigners zamtel,mines and others.Learn to be daring like nigerians,south africans and even kenyans who have investments in zambia and the region.