Perceived high level corruption affects foreign direct investments

The Bank of Zambia governor Danny Kalyalya says in the first half of 2019, Foreign Direct Investment flows reduced to US$413 million compared to US$434 million in the corresponding period in 2018.

He has attributed this to a to a decline in profitability resulting in losses of almost US$33 million, mostly in the mining sector compared to retained earnings of about US$210 million. 

Mr. Kalyalya states that private sector foreign asset flows decreased marginally in 2018 to US$645 million from US$667 million in 2017.

This was mainly on account of a reduction in currency and deposits by deposit-taking corporations and mining sectors.

He was speaking when he officiated at the 2019 dissemination workshop of the foreign private investment and investor perceptions survey results in Lusaka

“The Survey revealed that key areas where policy makers need to pay more attention include fostering growth and competitiveness of the private sector as well as encouraging investment and re-investment”. He stated.

“Other areas highlighted include addressing high lending rates, policy inconsistency, perceived high levels of corruption, inefficiency of the public service, and instability in the tax regime”. The governor added.

By; Mumba Tailashi

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