info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
FDI in Figures
FDI inflows to Zambia have accelerated since 2011. In 2014, they amounted to USD 2.48 million, making Zambia one of the main African recipient countries. In an uncertain political as well as economic climate, investment flows are expected to remain low in 2015-2016. Foreign companies are investing heavily in the mining sector. South Africa, the United Kingdom and Zimbabwe are the main investing countries. Zambia ranks 97th in the classification Doing Business 2016 issued by the World Bank, up 14 places from the previous year.
However, early presidential elections took place in January 2015, bringing Mr. Edgar Lungu to power until September 2016. This new political turn, along with announcements regarding an increase of taxes on mining companies, uncertainties regarding the fiscal framework (a revision of the mining code is in progress) and the high level of interest rates could create an unfavourable economic climate for foreign investors.
The country's infrastructure, whose previously poor quality posed a barrier to investment in the past, should be reinforced by investments in the road network, railroads and the construction of electrical power stations, in order to prevent power shortages, considering that the mining industry still accounts for nearly half of the electricity consumption. With Chinese support, the country began the construction of a new hydroelectric plant in 2013, an investment of EUR 1.5 billion that will start operating in 2018.
