The IPR noted that since the introduction of major economic policy reforms in the early 1990s, private investment, including FDI, had been playing a greater role in Zambia´s economy.
FDI had also contributed to the long-term policy objective of Zambia, which is to diversify its production and export base from mining to other products and services.
To date, the performance of the Zambian private sector had been poor due largely to the high cost of capital and domestic inputs
for local production, which make sustaining competitiveness in an open economy practically difficult.
That said though, the immediate prospects for both domestic and foreign investment were encouraging as Zambia was still far from exploiting its considerable investment potential, which exists in many industries and activities. The IPR recommended:
- Further improvements in the investment policy and regulatory framework
- Consolidation of recent improvements in macroeconomic policy
- Increasing the availability and competitiveness of infrastructure services
- Developing and strengthening the domestic private sector
- Policy coherence and investment promotion
Other reports: Blue Book of Zambia
Download Investment Policy Review
Download Implementation Report