By BUUMBA CHIMBULU
ZAMBIA has picked the 10th position on the list of top 10 African countries with highest Foreign Direct inflows (FDI) for the 2022 fiscal year.
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According to the 2023 World Investment Report by the United Nations Conference on Trade and Development (UNCTAD) released this week, Zambia is among the top 10 countries with the FDI inflows on the continent.
The report indicated that Zambia recorded a US$116 million in FDI inflows for the 2022 fiscal year.
Egypt topped the list with US$11 billion FDI inflows, followed by South Africa at US$9 billion.
“After one year of negative values, FDI to Zambia rose to US$116 million,” the report indicated.
The report showed that FDI to Southern Africa returned to normal levels, at US$6.7 billion after the peak in 2021 caused by a one-off transaction.
In Africa in general, the report showed that FDI flows to Africa decreased to US$45 billion in 2022 from a record US$80 billion in 2021.
These represented a 3.5 percent of all FDI worldwide.
Greenfield project announcements increased by 39 percent to a total of 766.
According to the report, Africa was home to six of the top 15 Greenfield mega projects, those costing more than US$10 billion that were announced in 2022.
“FDI flows to Africa fell by 44 per cent to $45 billion, following a record year in 2021 that was due to a single intrafirm financial transaction in South Africa.
“Excluding this deal, the change in FDI flows to Africa in 2022 would have increased by seven percent,” the report stated.
In contrast, international project finance deals in Africa showed a decline of 47 percent in value (US$74 billion, down from US$140 billion in 2021) but a 15 per cent increase in project numbers to 157.
Decreases in values were registered in renewables, mining and power.
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