By Cecilia Chiluba/Zambia/Lusaka
Zambia recorded a historic surge in foreign direct investment (FDI) in 2024, with inflows reaching an unprecedented US$2.36 billion, according to the 2025 Foreign Private Investment and Investor Perceptions in Zambia Survey Report.
The figure represents a sharp increase from the US$641.1 million recorded in 2023 and was largely driven by reinvested earnings, particularly in the mining, manufacturing and deposit-taking sectors. This was further supported by increased equity capital in mining and heightened intercompany debt inflows to mining firms.
The survey findings were released during the dissemination of the 2025 survey results on sources and trends of private-sector foreign capital flows for 2024 and the first half of 2025.
Bank of Zambia (BoZ) Governor Dr. Denny Kalyalya was represented at the dissemination event by Deputy Governor – Operations, Dr. Francis Chipimo.
Dr. Kalyalya noted that response rates to the survey improved significantly, rising to 86.1 percent in 2025 from 80.3 percent in the previous year, which represents the highest level since 2018 and the second consecutive year above 80 percent, reflecting growing confidence in the survey process.
In a speech delivered on his behalf, the Governor said the sectoral distribution of FDI showed mining accounting for 60.1 percent of total inflows, followed by manufacturing at 15.5 percent, wholesale and retail trade at 4.2 percent, deposit-taking corporations at 8.0 percent, and electricity at 6.4 percent.
Private-sector foreign assets also recorded strong growth in 2024, surging by 58.0 percent to US$2.0 billion, indicating increased outward investments, mainly in mining companies. FDI asset flows rose to US$310.5 million from US$153.0 million, with a significant portion held in the United Arab Emirates.
Meanwhile, Dr. Kalyalya disclosed that net private-sector foreign liabilities remained relatively stable, with a net inflow of US$712.9 million.
“This stability can be partially attributed to a reduction in other investment liabilities, primarily due to loan renegotiations in the mining sector. As a result, the stock of foreign liabilities increased by 9.9 percent to US$19.8 billion,” he noted.
In the first half of 2025, the stock of private-sector foreign liabilities rose further by 12.7 percent to US$17.9 billion, largely due to loan renegotiations in the mining sector.
Preliminary data for the first half of 2025, however, point to a decline in FDI inflows to US$157.9 million, down from US$580.5 million during the same period in 2024.
The Central Bank Governor attributed the decline to debt repayments owed to affiliated entities in the mining sector, although total private-sector foreign liabilities remained stable at US$1.2 billion.
He further stated that the survey revealed strong performance by companies with majority foreign ownership.
“Key indicators showed a positive outturn with turnover rising by 15.7 to US$3.0 billion, taxes by 68.0 percent to US$1.1 billion, employment by 9.9 percent to 89,897, value added by 78.7 percent to US$3.0 billion, while employee compensation remained stable at US$1.2 billion,” Dr. Kalyalya stated.
He stressed that investor perception indicators pointed to an improved investment climate, supported by favourable macroeconomic conditions, regulatory reforms and sustained macroeconomic stability.
These developments, he said, are expected to boost export growth, strengthen foreign-exchange reserves, stabilize the exchange rate and help moderate inflation over the medium to long term.
At the same event, Zambia Statistics Agency (ZamStats) Acting Statistician General Sheila Mudenda said the survey provides critical data whose value can only be fully realized if the country consciously embraces a culture of evidence-based decision-making.
Mrs. Mudenda emphasized that data must be consistently used to guide development efforts, warning that progress cannot be achieved without proper measurement.
