BoZ: $641m in foreign direct investment in 2023

Zambia has experienced a remarkable shift in its foreign direct investment (FDI) landscape, reporting a net inflow of $641.1 million in 2023, up from $65.1 million in 2022, according to Bank of Zambia Governor Denny Kalyalya.

Speaking at a Foreign Private Investment and Investor perception survey dissemination workshop, Kalyalya highlighted that the significant increase was primarily driven by intercompany debt and accumulated retained earnings in key sectors including manufacturing, wholesale and retail trade, and mining and quarrying.

"This growth reflects improved investor confidence in the domestic economy," Dr Kalyalya emphasised during the event, where his speech was delivered by Bank of Zambia Deputy Governor for Administration, Rheka Mhango.

Zambia Statistics Agency Acting Statistician General Sheila Mudenda underscored the importance of quality data in driving national development. "Sustained development will depend on our ability to use statistical evidence for informed decision-making," she said.

Zambia Development Agency (ZDA) Director Albert Halwampa, represented by Collins Sifafula, also stressed the critical role of creating a transparent and conducive investment environment.

Looking ahead, Dr Kalyalya predicted that the rise in FDI is expected to boost exports, strengthen foreign exchange reserves, and stabilize the exchange rate, potentially contributing to price stability in the medium to long term.