29 Aug 2016
Andrew Chipwende, CEO, Industrial Development Corporation, Zambia
Lusaka, Zambia. Zambia underwent major structural reforms in recent years to attract investment.
International investment has helped Zambia, like many other countries in sub-Saharan Africa, become more integrated into the global economy over recent years. Inward investment flows have doubled since 2008 and Zambia has even started to generate some modest foreign direct investment outflows. Although the country has undertaken major structural reforms over the past two decades to make it a more attractive location for investment, the Zambian government realised that this was not enough. Research has shown that foreign direct investment in mining remains dominant, although flows to manufacturing and services have also shown an upward trend. And while the investment in mining has brought with it new technologies, there has been little impact on job creation. The government of Zambia created the Industrial Development Corporation (IDC) in January 2014 to help diversify investment away from mining. It aims to play a catalytic role in deepening and strengthening Zambia’s industrialisation capacity, supporting the creation of jobs and domestic wealth across all key economic sectors. The IDC evaluates, assesses and lowers investment risk by serving as a co-investor alongside private sector investors, thereby facilitating long-term financing for projects. The IDC’s initial investments in Zambia’s growth sectors are helping to increase foreign direct investment