THE revelation that Zambia exceeded its foreign direct investment (FDI) target last year is proof that the country is an attractive investment destination.
It is a true reflection of the government’s commitment to the creation of jobs and reduction of poverty.
A healthy flow of FDI injects fresh capital into the economy and increases citizen participation through the supply of essential goods and services to foreign-owned businesses.
Minister of Foreign Affairs Wylbur Simuusa announced on Wednesday that the government approved projects amounting to US$3.56 billion by December 2013.
Mr Simuusa said the government had targeted to approve projects amounting to US$3 billion.
He was speaking when he met the diplomatic corps in Lusaka.
This is encouraging, and we urge the government to step up the efforts to attract more FDI into the country this year.
We agree with Mr Simuusa that the good performance is an affirmation of Zambia’s attractiveness to FDI because of continuous improvement in the investment climate and business environment.
As a developing country with a lower middle-income economy, Zambia needs as much FDI as it can attract in various sectors for economic growth.
We are impressed by the government’s performance in this area so far.
As more investments flow into the country more jobs will be created for Zambian citizens.
This will have an impact on their household economies as they will be able to go home with a disposable income, which will help them meet the basic needs of their families.
It is in this context that the government places great emphasis on the attraction of FDI.
The other benefit of FDI is the knowledge and skills transfer that it brings.
When foreign investors come to Zambia and invest in a certain sector they will bring some professionals who will work with their Zambian counterparts.
The expatriates will transfer their knowledge and skills to the local workers, which will benefit the country in the long run.
We encourage the Ministry of Commerce, Trade and Industry and the Zambia Development Agency to continue using all available avenues to attract direct foreign direct investment.
It is gratifying that the government has also identified and is engaging Zambians currently in the Diaspora to seriously consider investing back home.
We have seen nationals of some countries, especially in West Africa, contribute a significant percentage of the countries’ gross domestic products (GDPs).
The patriotic nationals have been sending money to their relatives back home, some of which they have invested in real estate and other businesses.
This culture has not yet taken root among the Zambians.
It is for this reason we commend the government for engaging Zambian missions abroad to persuade Zambians living abroad to help develop their home country.
We have also noted the efforts of the Ministry of Tourism and Arts in using these missions to market Zambia as a preferred tourist destination.
Zambia should not leave any stone unturned in its search for investment.
The country is endowed with vast reserves of natural resources which are waiting to be transformed into wealth.
There is a lot of potential in mining, agriculture, tourism, construction, manufacturing, to name but a few.
The country is home to over 40 percent of southern Africa’s surface water and has vast expanses of arable land.
To create a favourable climate the government has embarked on a vigorous campaign to increase power generation capacity by building and installing mini hydro-power generation plants in various parts of the country.
This will assure potential investors that there will be uninterrupted electricity supply, while the countrywide road construction and rehabilitation programme will make it easy to transport raw materials, finished products and equipment from one point to another.
Zambia is ripe for investment.
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