11/12/2024
BOZ REPORTS SIGNIFICANT TURNAROUND IN FOREIGN CAPITAL FLOWS FOR 2023.
The 2024 Balance of Payments Survey results released by the Bank of Zambia, show a significant turnaround in the country's foreign capital flows, with a net inflow of $658.1 million in 2023, a sharp contrast to the previous year's net outflow of $190.9 million.
Speaking during the foreign private investment and investor perception survey dissemination workshop held at Mulungushi International Conference Centre, Bank of Zambia Governor dr Denny Kalyalya. revealed that private sector foreign liabilities have seen a significant rebound in 2023, with foreign direct investment (FDI) inflows rising sharply.
dr Kalyalya attributed the increase in FDI to sectors such as manufacturing, mining, and wholesale and retail trade, which saw substantial foreign investment, particularly in the form of inter-company debt, trade credits, and retained earnings.
He said the inflow of foreign investment has contributed to a 24.3 percent rise in Zambia’s foreign liabilities, bringing the total stock to US$20.6 billion by the end of 2023.
The Governor also stated that in the first half of 2024, FDI inflows remained strong at US$580.5 million, again driven by the mining sector.
He pointed out that the overall stock of private sector foreign liabilities had decreased by 8.6 percent to US$16.6 billion, primarily due to increased loan repayments in the mining and quarrying sectors.
