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The World Bank has urged the Zambian government to address ongoing policy and regulatory uncertainty in order to attract more private capital and boost economic growth.
Speaking on October 3, 2024, at the Zambia Investment Forum, hosted by the Zambia Development Agency (ZDA) in collaboration with the World Bank, Achim Fock, the World Bank Country Manager, emphasized the importance of enhancing Zambia’s legal and regulatory frameworks.
In a speech read on his behalf by Senior Private Sector Specialist, Blerta Qerimi, Fock called for clearer sector-specific regulations and improved coherence across the regulatory environment, coupled with efforts to reduce bureaucratic red tape.
Fock highlighted that Zambia’s recovery from recent macroeconomic shocks must be anchored on long-term private sector-led growth.
“The legal and regulatory environment ranks as the third most critical determinant of foreign investment decisions, according to the 2019 World Bank Global Investment Competitive Study,” he noted.
He added that strengthening the ZDA and focusing on targeted investment promotion were also critical steps toward attracting more foreign direct investment.
Minister of Commerce, Trade, and Industry, Chipoka Mulenga, reiterated the government’s commitment to creating a strong, transparent, and dynamic investment climate.
He stressed Zambia’s strategic location and natural resource abundance as key factors positioning the country to become an investment hub in Southern Africa.
“By harnessing these resources and implementing comprehensive reforms, Zambia aims to foster a business environment that attracts investors and drives economic growth,” Mulenga said.
He added that the government was focused on diversifying the economy beyond mining by promoting renewable energy, sustainable agriculture, and forestry practices.
Mulenga further noted government’s efforts to improve Zambia’s ease of doing business through the introduction of the Zambia Business Licensing Portal, designed to streamline regulatory processes and reduce bureaucracy, making it easier for businesses to establish and operate.
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ZDA Director-General, Albert Halwampa, highlighted that the agency continued to leverage Zambia’s conducive investment environment to attract capital to key sectors.
He pointed to recent projects like the Maamba Thermal Energy Plant Phase II and the Zambia-China Mulungushi Textiles in Kabwe as evidence of the positive impact of these reforms.
The European Union Ambassador to Zambia and COMESA, Karolina Stasiak, also underscored the importance of a favorable investment climate, stating that such an environment is key to enabling the private sector to thrive.
Representatives from the International Finance Corporation and Chief Executive Officers’ from both the government and private sector were in attendance, underscoring the event’s significance for Zambia’s economic future.
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