Maravi

‘Investment in power generation will help mitigate anticipated reduced inflows’

‘Investment in power generation will help mitigate anticipated reduced inflows’
Written by Chiwoyu Sinyangwe
Tuesday, February 24, 2009 8:39:56 AM

ZAMBIA Development Agency (ZDA) director Glyne Michelo has said aggressive investment in projects like power generation and petroleum exploration will help mitigate the anticipated reduced investment inflows into the country.

The government has this year repeatedly affirmed intentions to lure foreign direct investments (FDI) as a way of mitigating the effects of the current global economic crisis.

But some analysts contend that the country is this year expected to receive a severe reduction in the amount of investments as investments funds in global market becomes scarce.

In an interview, Michelo said while some planned investment in the mining sector had been put on hold temporarily due to lower copper prices arising from depressed demand, net investments flows into the country were not expected to drastically decrease.

"The country is still receiving investments flows in other sector of the economy such as tourism agriculture and construction, medical, finance education," Michelo said. "Further, countries like China and India have continued to be good sources of investment inflows. We also expect that companies in the EU, North America and Japan will be repositioning themselves to move once the slump begins to look up and we will be targeting them. New and emerging sources such as South Africa, South Korea, Nigeria, Brazil and the Middle East and Australia will also be pursued."

Michelo said what was important now was to continue the process of economic diversification which was a pre-requisite to insulating the country against adverse economic and financial turmoil.

"As you know government, has already prioritized agriculture to ensure food security and export surplus produce. This will translate into ZDA wooing investors in agriculture and beyond," said Michelo.

"The irrigation fund, provisions of resources to the Citizens Economic Empowerment Commission, development of the Chambishi and Lusaka multi-facility economic zones, provisions of resources to Nansanga farm block and infrastructure development at Kasaba bay, the encouragement of the private sector to invest in power generation and promotion of exploration of petroleum in the country are all projects that will forestall the current downturn and position us for subsequent period."

Labels: ENERGY, GLYNE MICHELO, ZDA

posted by MrK @ 8:40 AM