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Chinese investment helps Zambia's economy: report
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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)

 

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