Zambia Development Agency has recorded more than US$1.3 billion foreign direct investment (FDI) in the first quarter of the year, surpassing the projected US$1 billion FDI inflow in 2010.

At the beginning of the year, ZDA had projected about US$1 billion FDI inflow following the economic stability of world economies from the economic recession and the business reforms the country was implementing.

In a key note speech during the Economics Association of Zambia – Zambia Development Agency Japanese Business Seminar in January 2010, ZDA Director General Mr. Andrew Chipwende said preliminary FDI trends into Zambia since 2000 and after the recovery of big economies from the recession gave ZDA confidence to meet the one billion dollar target for this year.

The Agency has however surpassed earlier projections within the first quarter of the year, recording US$1, 344, 328, 350 FDI in various sectors of the economy. The recorded investment presents more than hundred percent increase compared to the same period in 2009.

Last year ZDA recorded US$194, 548,459 during the first quarter of the year, compared to about US$1. 344 billion recorded during the same period this year. The approved investment applications in the period under review were from fifty-nine applicants, with a total number of 5, 943 new job opportunities expected to be created once implemented.

The approvals were from the manufacturing, service, health, education, energy, tourism and agriculture sectors. Others were from mining, real estate and construction sectors, with the mining sector recording the largest investment of US$500 million followed by manufacturing with about US$89.1 million, while other sectors shared the rest.

Meanwhile, ZDA has recorded about US$170 million FDI in the month of March 2010, with the mining sector continuing to record huge inflows since the beginning of the year. This is mainly due to increased metal prices on the international market.
On the London Metal Exchange, copper price has increased by 3.4 percent in three months to US$7,770 a metric tonne. Earlier, the price touched US$7,800, a 19-month high. Aluminum, zinc, nickel, lead and tin also gained.

In March, the mining sector recorded US$ 100 million, while other sectors shared the rest of the pledged investment in the month.

The approved investment pledges were expected to create 1,628 new jobs and job opportunities after implementation.