Foreign Direct Investments drop by almost 50%
Foreign Direct Investment (FDI) in Zambia fell by almost 50 percent to about US$ 560m in 2018, according to Bank of Zambia (BoZ) governor Denny Kalyalya.
Kalyalya said the significant decline was mainly due to losses of almost US$ 340m – mostly in the mining sector where some companies had encountered operational challenges, the Lusaka Times reported. As a result of the declining profitability, borrowing from foreign affiliates increased to about US$ 640m in 2018 from US$ 560m in 2017, the BoZ governor told a workshop of the Foreign Private Investment which was addressing investor perception survey results in Lusaka on Wednesday.
According to Kalyalya, in terms of sectoral performance, the manufacturing sector was the leading recip…
President axes Finance Minister
Zambian President, Edgar Lungu, has fired the country’s Finance Minister and replaced her with the central bank’s deputy governor responsible for operations.
The Zambian leader said via Twitter last Monday, “I have appointed Bank of Zambia deputy governor, Dr. Bwalya Ng’Andu, as Finance Minister.” He also nominated Ng’Andu to Parliament, saying he was “confident that Zambia’s next phase of economic development" will be managed well under him.
On Sunday evening, Lungu’s office thanked the outgoing Treasury head, Margaret Mwanakatwe, for her service during her tenure. No reasons have been given for Lungu’s decision to fire Mwanakatwe.
A panel of economists at FocusEconomics expect GDP growth in Zambia to grow by 3.4% this year, …
Investment Agency ZDA secures Funds to foster further Trade and Investment
On 19 April Zambia’s investment agency, ZDA, signed a memorandum of understanding (MoI)with a bank aimed at improving cooperation between the institutions in fostering investment and trade in the economy. Under the agreement, the Stanbic Zambia will facilitate trade opportunities in Zambia within its regional and global business community and direct companies looking to invest in Zambia to the Zambia Development Agency (ZDA). The agreement will further allow the investment agency to support companies within the bank’s ecosystem in their investment projects and ease of Doing Business in Zambia.
“The MoI we are signing is an illustration of our willingness to strengthen our cooperation in fostering development in Zambia,” Leina Gabaraan…
Sweden to spend € 20m on Renewable Energy Projects
SWEDEN has set aside €20 million to accelerate renewable energy in rural and peri-urban areas. The project is under the Power Africa Beyond the Grid Fund for Zambia (BGFZ), which aims to provide affordable renewable energy services.
Embassy of Sweden first secretary in-charge of energy Magdalena Svensson said the private sector-led project that has been awarded to five local and international companies and runs from 2016 to 2021, will result in off-grid renewable energy generation and distribution, which will benefit over one million people. “Sweden has provided €20 million for the BGFZ, of which €15 million has been committed to the awardee companies. We have to-date disbursed €1.7 million.
The awarded companies in their turn have…
National Health Strategic Plan taking shape
Zambia’s strategic plan to steer the provision of quality healthcare services to citizens in the next five years is taking more and more shape. The National Health Strategic Plan, which runs from 2017 to 2021 will now be implemented under the theme “Transformative Agenda and it will focus on primary health care through preventive, curative, rehabilitative and palliative health services as close to the family as possible’’.
The Minister of Health, Chitalu Chilufya, said during the recent launch that the plan gave the country a roadmap on the steps needed to be taken to drive the country’s health sector in the next five years. The plan, he said, was anchored on the country’s Seventh National Development Plan (SNDP), an overall roadmap f…
Real Estate Sector set for significant Growth
Zambia’s real estate sector is looking forward to a new chapter as it begins to leverage off opportunities in the steadily growing economy. Latest research figures indicate that during the first quarter of 2017 the country had an economic growth of 3%, mainly driven by activity in the mining, information and communication, as well as financial services sectors.
In recent months, there have also been improvements in macroeconomic conditions, as reflected by the appreciating currency, falling inflation and subsequent policy easy. How Zambia’s real estate sector and other key players innovate to leverage the improving macro environment will be the key focus of the second annual ZamReal Property Forum on September 27 2017 at the Radisson …
Investors' Confidence improved despite erratic President
Minister of Finance Felix Mutati says Zambia’s investor confidence has improved this year following enhanced economic stability. Mr. Mutati has cited the over three hundred investors from across the globe that seek to invest in the 4 billion US dollar Batoka Hydro power project. He says there are positive economic indicators in 2017 than last year when growth was just below five percent.
Mr. Mutati has since assured investors of credible returns on all their planned areas of investment. ZNBC’s Kennedy Bwalya reports that the Minister said this when he addressed representatives of international banks and financial institutions at a meeting organised by VTB Capital, in Washington D.C. This is on the sidelines of the ongoing IMF and Worl…
Inflation Rate slows to 18.9%
Zambia’s inflation slowed to 18.9% year-on-year in September from 19.6% in August, the central statistical office said on Thursday.
The monthly inflation rate eased to 0.1% in September from 0.4% in the previous month.
Economic Growth expected on Back of Copper Prices and slowing Inflation
Zambia’s struggling economy is forecast to pick up next year as copper prices recover and inflation slows sharply, giving the central bank room to cut interest rates, according to a Reuters poll of economists taken over the past week. Growth in Zambia, Africa’s second-largest copper producer, is expected to slow to 3.2% this year compared with 3.6% last year. But the median forecast from a survey of 12 analysts has a pickup to 4.5% next year. Inflation, forecast to average 18.5% this year, is expected to slow to 12.9% next year. While that is not in the single digits that the government aims for, it may provide some room for the Bank of Zambia to cut interest rates. The policy rate is forecast to drop to 13.5% next year from 15.5% curren…
Elections Campaigns suspended for 10 Days
Political campaigning in Zambia’s capital Lusaka has been suspended for 10 days because of violent clashes ahead of next month’s national elections, the electoral commission announced at the weekend. The ban comes less than three weeks after Zambia’s biggest independent newspaper, The Post, was shut down by the authorities over a tax dispute – a move seen as an attempt to silence it before the August 11 vote. The run-up to the election has been marred by skirmishes between supporters of the ruling Patriotic Front (PF) of President Edgar Lungu and the opposition United Party for National Development (UPND) led by Hakainde Hichilema.
On Friday, police opened fire on UPND supporters, killing one, after the party refused to cancel a campa…