(courtesy of Lusakatimes) Zambia most liberalised economy-BoZ The Bank of Zambia has disclosed that mining has continued to receive the largest share of foreign direct investment (FDI) flow accounting for 53.9 percent in 2012. The bank has however pointed out that government was working on diversification efforts to reduce dependence on mining. Bank of Zambia Governor Michael Gondwe stated that the dominance of mining in the economy was also reflected in terms of FDI stocks at US$9,003.4 million in 2012 out of the total foreign direct investment of US$12,449.1 million followed by manufacturing at US $1,341.4 million. Dr. Gondwe said government’s diversification effort in the economy was aimed at reducing dependence on mining with respect to growth, employment, revenue and exports. He stressed that government has in the last 10 years been re-aligning its policies towards supporting private sector led growth which he said has been successful as reflected in an average economic growth of 6.1 percent over the period. Dr. Gondwe however noted that poverty levels have remained high in rural areas while the number of poor people in urban areas was also growing. He was speaking in Lusaka today at a forum to discuss the proposed 2014 national budget and its impact on the private sector. The BoZ Governor said the Zambian economy was the most liberalized market in the world with vast opportunities for investment. And responding to questions from the audience on the statutory instrument number 55, Dr. Gondwe explained that the SI 55 was meant for monitoring of the economy and to fight money laundering which became rampant especially among what he called briefcase business people’ who used to externalize huge sums of money from unknown sources. Meanwhile, a Zambian entrepreneur, Priscilla Banda appealed to government to also recognize and support the informal sector that comprises of the small and medium enterprises (SMEs) instead of paying much attention to the mining and the other formal sectors. Ms. Banda explained that the informal sector’s contribution to the economy was immense but required much support as it was bigger than the formal sector. And American Chamber of Commerce in Zambia vice president Paul Kaluba urged business persons to join the chamber in order to enhance their trade with American and learn more business ideas. Mr. Kaluba noted that the chamber was a good forum for Zambians in business to export goods to the American market.
Posted on: Tue, 19 Nov 2013 14:07:05 +0000
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