In a recent interview held in Zambia’s capital Lusaka between Ferngroove Business Consultants Managing Partner, Dr. Rufus Kagira and a local media, Zambia was pointed out as the main destination for Foreign Direct Investment (FDI) among other countries in the region.
The peace the country is enjoying since its independence in 1964, was stressed by Dr. Kagira as the main factor to boost investor confidence in the country.
According to him, this factor overshadows the current depreciation of the Zambian Kwacha (ZMW) and make investors feel assured of the benefits they will get from their investments in the different local sectors.
During the interview, Dr. Kagira highlighted the recent growth on FDI inflows to Zambia which had grown by 21.3% to USD 2.1 billion in 2013 compared with the prior year, and that has recovered recording USD 447.5 million in the last two quarters of 2014 after dropping to USD 70.5 million in the Q2-2014.
The country is expected to keep the pace up to the end of 2015 attracting more FDI, driven by local projects which are usually developed in joint ventures between foreign and local capitals, explained Dr. Kagira.
According to the International Monetary Fund (IMF), the local projects in mining sector are the most attractive for FDI since from the year 2000 to 2013, foreign companies have injected more than USD 10 billion in the sector, raising the copper production outcome from 250,000 to 750,000 tons a year in the same period.
Closing the interview, Dr. Kagira invited the Zambian Government to have a glance at the interest rate which has been raised from 9.0% in 2012 to 12.5% in 2015, since it can be a constrain to attract more FDI to the country.