ZDA resorts to domestic investment as COVID-19 affects FDIs

THE Zambia Development Agency says most of Zambia’s foreign direct investments and export destinations are adversely affected by the COVID-19.

ZDA says it has since doubled its efforts in promoting domestic direct investment (DDI) and re-investment in the wake of COVID-19.

This is according to a statement issued by ZDA communications and public relations manager Faith Musonda.

“The Zambia Development Agency (ZDA) has doubled its efforts in promoting domestic direct investment (DDI) and re-investment in the wake of COVID-19 which was declared a global emergency by the World Health Organisation (WHO) on 31 January 2020. Most of Zambia’s FDI and export destinations are affected by the COVID-19. Therefore, Zambia’s Trade and Investment figures have significantly declined in the last two weeks. These include Zambia’s top trading partners such as DR Congo, China, South Africa and the EU market,” Musonda stated. “A number of investor missions that were scheduled to come for fact-finding missions and explore the opportunities have been postponed or completely cancelled. Others were earmarked to come and actualise their investment pledges but because of the deadly COVID-19 all these activities have been put on hold. In addition, other trade and investment related meetings in Asia, Europe, Southern Africa and other regions have been postponed indefinitely.”

She hopes the COVID-19 would be contained quickly so that investment can get back to normal.

“It is the hope of the Agency that COVID-19 should be contained as quickly as possible so that trade and investment can get back to normal where investors and traders are able to move freely. Zambia Development Agency has however, continued to strategically focus on promoting DDI, re-investment and the growth of SMEs’ to minimise the economic impact of COVID-19,” stated Musonda. “Considering the current global health pandemic, the Agency will intensify engagement with existing investors for business diversification and re-investment as they already have an appreciation of the Zambian business environment, policy framework and available incentives. In 2019, of the total projected investments worth USD 12.6 billion, USD 3.3 billion was re-investment, representing 26 per cent of the total investment recorded. This reaffirms the great potential within the country working with the already established investors to create wealth and employment. Some notable re-investments last year included Trade Kings, InterContinental and Protea hotels, National Milling, Californian Beverages and University of Lusaka, among others.”

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