Direct Chinese investment into Zambia has driven the country's
economy towards booming, according to a report on Foreign Direct
Investment (FDI) by local economists.
The report, which was published on Zambia Times on
Wednesday, says the investment from China, particularly into the
mining sector, is in line with Zambia's development agenda.
"Chinese and Indian FDI is often presented as Zambia's only hope
for driving the country's development agenda forward and providing
the basis for a new win-win relationship," said the report by a
Germany-based foundation.
The investment by NFC Africa Mining, China's largest investment
in Zambia, has led to increased production and contributed to the
economy in terms of new jobs and income, according to the
report.
"It is argued that Asian FDI in Zambia offer the prospect of
augmenting domestic resources for development whilst simultaneously
improving job opportunities and standards of living for the
citizenry," the report states.
It says that Chinese investment has increased the levels of
employment in Zambia and acted to prevent further job losses in
entities that have almost collapsed prior to privatization.
The 44-page report also disagrees with the allegation that
foreign investors, especially Chinese investors, have robbed
Zambian enterprises of business opportunities, saying local firms
that meet procurement and tender procedures are awarded business
contracts.
"On this account, one could conclude that the new mining
companies have had positive effects on the local industry and
downstream operations," said the report.
(Xinhua News Agency November 1, 2007)
