Maravi

PS calls for infrastructure development

PS calls for infrastructure development
By Joan Chirwa
Friday September 26, 2008 [04:00]

THE 2008 World Investment Report (WIR) has observed that Zambia still has huge unmet investment needs for infrastructure development. And commerce permanent secretary Davison Chilipamushi has said the government needs to prioritise infrastructure development while focusing on economic growth.

The WIR 2008, an annual publication of the United Nations Conference on Trade and Development (UNCTAD) which was launched worldwide on Wednesday, focused on transnational corporations (TNCs) and the infrastructure challenge.

Zambia Development Agency (ZDA) director for Investment Promotions Florence Mumba said there was growing demand for physical investments in infrastructure, especially in countries like Zambia.

“Investment in infrastructure by mining companies remains critical for the country’s development,” said Mumba during the launch of the report in Lusaka on Wednesday.

The WIR 2008 report, titled Transnational Corporations and the Infrastructure Challenge notes that despite significant levels of TNC investment in developing-country infrastructure, more of it is required to bridge the vast financing gap.

It further notes the need for substantial amounts of additional investment, irrespective of the source. In Africa, for instance, total TNC investment commitments in infrastructure during the decade spanning 1996-2006 were US $45 billion – an amount, according to the WIR 2008 report, that is barely equivalent to the region’s current annual infrastructure investment needs of US $40 billion.

And UNCTAD secretary general Dr Supachai Panitchpakdi stated that the lack of reliable infrastructure in many developing countries – and especially the least developed countries (LDCs) – was a major impediment to economic and social development.

The WIR 2008 report indicates that foreign direct investment (FDI) flows posted record highs in 2007, reaching US $1.8 trillion, up from 2006, bringing the worldwide stock of FDI to US $15 trillion. From the total FDI in 2007, Africa received US $53 billion.

And Chilipamushi said Zambia has failed to utilise trade opportunities in the region owing to its poor infrastructure.

“We have a lot of potential in countries such as Angola where demand for consumer and industrial goods is high. This is the same with the DRC and Rwanda but we have not realised that potential because of lack of infrastructure to support economic activities,” said Chilipamushi.

Labels: 2008 WORLD INVESTMENT REPORT, FLORENCE MUMBA, INFRASTRUCTURE, TNCs, UNCTAD, ZDA

posted by MrK @ 5:38 PM