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(ZAMBIANWATCHDOG) Ernst & Young says Zambia among 17 African countries favourable for FDI

Ernst & Young says Zambia among 17 African countries favourable for FDI
Monday, June 6, 2011, 7:15

Global giant Ernst & Young (EY) says Zambia is among 17 African countries with good potential for foreign direct investment (FDI). In its 2011 Africa attractiveness survey, Ernst & Young identified a selection of African countries with good potential for foreign direct investment (FDI) over the next five years.

Ernst & Young (EY) is one of the largest professional services firms in the world and one of the Big Four auditors, along with Deloitte, KPMG and PricewaterhouseCoopers (PwC).

Speaking about Zambia, Ernst & Young says Zambia’s copper mines will continue to attract investors over the forecast period, with global demand expected to keep prices high for the foreseeable future.

But EY warns that outside of the minerals sector, prospects for FDI are less good.

It observed that Zambia’s reliance on copper (which makes it vulnerable to price movements), coupled with its small domestic market, will limit the flow of capital into the rest of the economy Ernst & Young however says the country’s business-friendly environment, sound macroeconomic management and investment in the infrastructure network should attract multinational companies into other parts of the economy.

The other 16 countries are Angola, Ethiopia, DRC, Nigeria, Egypt, Ghana, Kenya, Mauritius, Morocco, Mozambique, Rwanda, Senegal, South Africa, Tanzania, Tunisia and Uganda.

Ernst & Young explains that its 2011 Africa attractiveness survey reflects, first, Africa’s attractiveness for foreign direct investors and, second, the perceptions of, and outlook for, Africa and its peers across a representative panel of 562 international decision-makers.

Labels: FDI, NEOLIBERALISM

posted by MrK @ 9:06 AM