Economist Yusuf Dodia has charged that Zambia’s economic instability is sending a negative view to both local and international investors, stating that the volatile state of the economy is causing investors to think twice before commiting funds.
Speaking in an exclusive interview with the Zambian Business Times (ZBT), Dodia expressed concerns about the adverse effects of electricity disruptions and high fuel prices on the flow of investments. Dodia said the uncertainty surrounding electricity availability, fuel prices, and the exchange rate, exacerbated by prolonged load shedding, is serving as a deterrent for potential investors. He warned that unless the economy stabilizes, investors may continue to hold back on bringing their money into the country.
“The Zambian economy at the moment is unpredictable, so investors would be thinking twice about bringing their investment in the Country, about bringing their money into an economy where they are not sure about the availability of electricity, about the price of fuel, about the exchange rate, 17hours of load shedding is deterrent for most investors, they may be holding back until they see a more stable Economy,” he stated. “Any investor is looking at the regulations that we have, such as the 26 percent charge on all deposits and Statutory reserves, dedolarization policy these are all mechanisms that investors are concerned about.”
In response to the Zambia Development Agency’s announcement of 8.9 billion United States Dollars in actualized investments out of 54 billion United States Dollars over the past three years, Dodia urged for a closer examination of these figures. He emphasized the importance of scrutinizing specific investments, particularly in critical sectors like mining, where essential projects, such as KCM and Mopani Copper Mines, are struggling to secure the necessary funding to operate effectively.
He said this lack of progress in vital areas has raised concerns about the true impact of these reported investment numbers.
