FDI Down Almost 50%

Bank of Zambia (BoZ) Governor Denny Kalyalya says Foreign Direct Investment (FDI)  in flows fell by almost 50 percent to about US$560m in 2018.

Dr. Kalyalya says the significant decline was mainly due to losses of almost US$340m mostly in the mining sector where some companies encountered operational challenges.

The BoZ Governor says as a result of declining profitability, borrowing from foreign affiliates increased to about US$640m in 2018 from US$560m in 2017.

Dr. Kalyalya was speaking during the dissemination workshop of the Foreign Private Investment and Investor perceptions survey results in Lusaka today.

He explained that in terms of sectoral performance, the manufacturing sector was the leading recipient of net FDI liability flows.

Dr. Kalyalya explained that peace, security, political stability, and a relatively stable macroeconomic environment have continued to be the main motivating factors for investing in Zambia.