Lusaka [Zambia], July 5: The Zambian government has expressed concern over the disproportionately low share of foreign direct investment (FDI), capital inflows, and its marginal participation in global trade, according to a statement released on Friday.
Minister of Foreign Affairs and International Cooperation Mulambo Haimbe raised the concerns during a side event at the Fourth International Conference on Financing for Development, held in Sevilla, Spain.
He said that limited FDI and capital inflows into developing countries have hindered economic growth by increasing borrowing costs and reducing the capacity to meaningfully transform their economies.
"The discrepancy in FDIs and other capital inflows into developing countries undermines their ability to effectively address poverty and tackle the socio-economic challenges that have persisted for generations," Haimbe said.
He said that institutional investors and FDI should be channeled through strategic partnerships with established domestic enterprises in order to reduce investment risks in developing economies.
Despite the challenges, Haimbe expressed optimism that ongoing dialogue with global investors will address the obstacles.
Source: Xinhua