Zambia achieved a net inflow of US$ 658.1 million in private-sector foreign investments in 2023, a significant turnaround from the US$ 190.9 million net outflow recorded in 2022.
The Governor of the Bank of Zambia, Dr. Denny H. Kalyalya, presented these findings during the 2024 Foreign Private Investment and Investor Perception Survey Dissemination Workshop held in Lusaka on December 11, 2024.
The survey, conducted in its seventeenth phase, combines electronic questionnaires with in-person data collection.
This hybrid method achieved an 80.3% response rate, the highest since 2019. The findings emphasize the pivotal role of foreign direct investment (FDI) in driving Zambia’s economic recovery.
FDI inflows in 2023 reached a net inflow of US$ 641.1 million, reversing the previous year’s net outflow of US$ 65.1 million.
Key sectors contributing to the recovery included mining, manufacturing, and wholesale and retail trade, driven by inter-company debt and retained earnings.
The stock of foreign liabilities rose by 24.3% to US$ 20.6 billion, with the mining sector as the primary contributor.
Dr. Kalyalya stated, “The significant increase in FDI reflects improved investor confidence in the domestic economy. This growth is expected to strengthen foreign exchange reserves, stabilize the exchange rate, and support price stability.”
The previous year’s results showed a net outflow of US$ 190.9 million in private-sector foreign investments, reflecting a challenging investment environment. The 2023 turnaround highlights the success of Zambia’s efforts to enhance the business climate and attract foreign capital.
