Financial Analyst Moses Mwale has expressed concern about the impact of the remarks made by the Swedish Ambassador to Zambia regarding corruption on investor confidence in the country.
In a recent development, the Swedish Ambassador to Zambia, Johan Hallenborg, revealed that Swedish companies were hesitant to invest in Zambia due to the perceived corruption in the country.
This led to a challenge from government officials who requested specific evidence to back up the allegations.
Speaking in an exclusive interview with the Zambian Business Times –ZBT, financial analyst Moses Mwale, however, observed that when the Swedish Ambassador speaks, it carries credibility and does not require verification.
“As a result, the international community and investors will take his words seriously, which could negatively affect investor confidence in the country.”
Mwale highlighted that one consequence of this could be an increase in country risk. “When considering where to invest, investors look at a range of factors, including risks that are there if they were to invest their money.”
Mwale said if a country is perceived to be high risk, investors may decide not to invest, or they may demand a higher interest rate to compensate for the risk. “This, in turn, increases the cost of doing business and ultimately affects the economy of the country.”
In picture is Swedish Ambasador to Zambia, Johan Hallenborg
