The government should assess the levels of private funds committed for re-investment programmes to get a full picture of the levels of investment in Zambia in 2010. It is projected by the Zambia Development Agency and other sources that Zambia expects over US $3 billion in actual investments next year. The investments are expected in the manufacturing, mining, construction, agriculture, tourism and services industries.

However, most of the existing businesses in Zambia are expected to embark on massive capacity building investments to take advantage of the expanding market opportunities in the region following the introduction of a duty free zone. In addition, local demand for goods and services is increasing and firms are finding it appropriate to leverage on this opportunity.

On the other hand, the global financial sector has stabilized making it possible for Zambian firms to source external investment funds at affordable interest rates. There are other funds supported by foreign governments that will also be committed to building capacity in the private sector. These funds will drastically improve the direct capital inflows in Zambia.

What is important is to appreciate that the amount of money captured for expansion programmes by the private sector annually compares well with that coming in through new investments. This is the reason government should take a keen interest in what is happening with those investments operating in Zambia and not purely focusing on new investments. We need to have a structured mechanism of capturing information on the amounts of money committed for re-investment programmes.

In order to have a full picture of economic activity precipitated by private sector investments, the government will first need to look at the total funds advanced by the local financial market towards private sector investments. Second, it should assess the new capital injection by existing private firms for re-investment projects.

Third, it can then focus on new funds coming through new investments. This information on potential economic expansion through increased investment funds will subsequently trigger additional responses by the private sector to make further commitments. The more capital is committed in investment and re-investment programmes, the more the country becomes attractive for further investments, especially by the large global players.