By ALICE NACHILEMBE
The Zambia Tax Platform say that Foreign Direct Investment (FDI) is a key component of global economic integration and private external finance for developing countries.
Private Sector Enhancement Expert Ellen Makinishi says that not only does FDI add to investible resources and capital formation, but also promotes the transfer of production technology, skills, and innovative capacity, and organizational and managerial practices between locations.
Ms Makinishi says FDI can foster economic growth by providing resources critical for diversification as well as giving resilience to an economy against both internal and sudden external shocks.
She said the Platform feels it is imperative to implement measures that will address the risk posed by the pandemic on business performance and safeguard jobs.
Ms Makinishi said it is critical for the Government to pursue policies that will promote macroeconomic stability as well as enhance private sector consultation so as to spur investment.
“The fiscal element will involve expanding government revenue sources by closing tax revenue draining loopholes and enforcing tax compliance among other measures.
Public expenditure targeting business stimulation can play a central role in helping to catalyze broader economic transformation through the expansion of activity in specific industries and sectors. This will ultimately play a significant role towards economic recovery and sustained growth,” he said.