Maravi

ZDA cites mining for FDIs surge

ZDA cites mining for FDIs surge
By Chiwoyu Sinyangwe
Tue 23 Nov. 2010, 04:01 CAT

FDI pledges coming into Zambia in the first 11 months of this year jumped to US$ 4.3 billion, surpassing the year-end target of US$ 3 billion. Zambia Development Agency (ZDA) director for export promotions Glyne Michelo attributed the surge in Foreign Direct Investments (FDIs) to increased growth of manufacturing and mining sectors in the aftermath of the global economic recession which mopped up liquidity from the key global markets last year.

Michelo said the United Kingdom, Belgium, South Africa, China and India continued to be the main source of FDIs into the country, collectively constituting about 70 per cent of Zambia’s total FDI inflows in 2009.

“The outlook for 2010 looks promising with over US$ 4.3 billion investment pledges and pledged employment of 36,000 jobs already recorded between January to November 2011 against a target of US $3 billion pledges for the year,” Michelo said in an interview.

Michelo said the manufacturing and mining sectors generated the most interest of planned investments in 2010.

“The sector distribution indicates that the manufacturing sector has generated the most interest in terms of planned investments in 2010 with agro-processing projects such as Bedford Renewable Energies, Kaidi Biomass Zambia Limited and Agzam Project Developers Limited, and other investments in the sector valued at US $1.6 billion topping the list making up 37 per cent of the pledges, and pledged employment of 19,500 jobs in the manufacturing sector,” Michelo said.

He said increased foreign capital into the mining sector had been buoyed and sustained by major pledged investments into key mining operations like Luanshya Copper Mines which Chinese owners resuscitated after its previous owners abandoned it at the height of the global economic meltdown which depressed international metal prices.

“…Konnoco Underground Mining as well as the planned capitalisation of Mamba Collieries by the new owners - Nava Bharat of Singapore, all totalling US $1.4 billion – about 34 per cent of the pledges - and pledged employment of 3,800 jobs in the mining sector have helped to increased foreign direct investments inflows into the mining during the period under review,” said Michelo.

Labels: FDI, GLYNE MICHELO, NEOLIBERALISM, ZDA

posted by MrK @ 3:39 AM