By Tichaona Kurewa
Reposted from Southern African –
Harare – The latest assessment of Zambia’s mining sector governance and investment attractiveness shows the Southern African country remains an appealing investment destination owing to its favourable geology, decades of mining history, political stability and low risk of expropriation, high levels of security; and a relatively favourable economic environment, the Mining Investment and Governance Review (MInGov) has shown.
MInGov’s development is led by the World Bank with the assistance of Adam Smith International (ASI) in collaboration with the African Centre for Economic Transformation (ACET), the Natural Resource Governance Institute (NRGI) and the Fraunhofer Institute.
The SADC member state has a long history of mining, which dates back to the colonial era and a large reserves of copper, emeralds and other mineral deposits. It also has a very good potential for further discoveries. Mining sector accounts for 12 percent of Zambia’s gross domestic product (GDP) and 70 percent of the total export value.
The sector is also a significant source of government revenue and formal employment, both directly and indirectly.
Continuing to attract investment in the sector is crucial to the country’s growth since it constitutes 62 percent of foreign direct investment. MInGov findings revealed that Zambia is a conflict-free nation making it more attractive to foreign direct investment.
“The country is an attractive place for investment due to favourable geology, its long history of mining, its political stability, and a relatively favourable economic environment.
Zambia is also safe and secure since the country’s independence in 1964 there has never been a war,” the report shows.
However, the same review also pointed out bottlenecks restraining the mining sector’s growth potential in that country.
Read more at Southern African