Foreign Direct Investment in Agriculture in Zambia has it Brought Tangible Economic Results

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DOI: 10.21522/TIJMG.2015.SE.19.01.Art021

Authors : Bridget Ngonga


Foreign Direct Investment (FDI) involves movement of resources from foreign countries into the local economy. Foreign Direct Investment is the key driver of economic growth in many developing countries in the world. Despite Foreign Direct Investment being a key driver of economic growth, Foreign Direct Investment in Agriculture in Zambia has not stimulated great economic growth despite the country having vast arable land and a lot of water bodies lying across the country.

The study covers Foreign Direct Investment in agriculture in Zambia which includes; size and growth of the economy, physical, financial and technological infrastructure and investment promotions. It also addresses the role of Foreign Direct Investment in the agricultural sector which is job creation. An analysis of the policy frame in agriculture was carried to show how Foreign Direct Investment in agriculture is supported. The paper also outlines challenges and limitations that affect growth of Foreign Direct Investment in agriculture in Zambia. These include; poor road network, poor land policy in agriculture, political risks, poor economic environment in the country and high corruption rate. Activities undertaken by government in improving agriculture in the country has also been analyzed in this paper, such as provision of incentives to investors in agriculture, crop diversification, and introduction of Farm blocks in the various parts of the country

This study will contribute to Foreign Direct Investments in stimulating economic growth and improvement in developing Countries. Foreign investment inflows in Agriculture also saw a rise in the number of accommodation establishments and employment levels.

Keywords: Zambia, Foreign Direct Investment, Economic Growth, Agriculture, Employment.


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