Foreign Direct Investment, Competition and Perception in Zambia

Academic Paper from the year 2019 in the subject Economics - International Economic Relations, University of Lusaka (University of Lusaka), course: Economics and Finance, language: English, abstract: This paper analyses the effects of Foreign Direct Investment (FDI) in Zambia. It focuses on two main areas of FDI: First, it looks at the competition effect of Foreign Direct Investment FDI to domestic businesses in the host country, Zambia and the second part looks at how residents perceive Foreign Direct Investment FDI in Zambia. In order to understand the competition effect of FDI in Zambia, the research study carried a survey on local business houses to get an understanding of how FDI with respect to foreign businesses has created competition to local businesses to their detriment. In addition, the research study conducted interviews with various people in Zambia to collect data and get their perception on FDI with respect to foreign businesses in Zambia. This research found that people's perceptions over FDI are more negative than positive. This research study also found that Foreign Direct Investment FDI has both positives and negatives externalities in Zambia. Under positive externalities, FDI has helped create employment to local people, facilitated the transfer of technology and innovation as FDI spillovers. However, under negative externalities, this research found that FDI had brought more competition to local businesses in the host country, throwing many out of business. In addition, some businesses found it difficult to compete due to unfairness created by state interventions. Therefore, FDI in Zambia was found to have more negatives than positives externalities.

Daniel Tonga is an award-winning journalist, economist, author, and accomplished communications professional with a proven track record in media and communications. He previously served as Editor, Producer, and Head of the News Department at Prime Television Zambia. Daniel was a contributing researcher to a book, 'An Enterprise Map of Zambia' commissioned by International Growth Centre ICG and London School of Economics which profiles leading industry companies in Zambia. He is the author of a book titled 'Enemies of Truth' and several research papers which have been published by different media and communications journals. As a freelance journalist, Daniel has contributed his work to the world's leading media outlets including Voice of America VOA, France24, Kenya Television Network KTN, Talk Radio 702 among others. He is a fellow of the National Press Foundation in the United States and an alumnus of the International Institute of Journalism IIJ in Germany and Radio Nederlands Training Centre RNTC, in the Netherlands. Daniel holds a Diploma (Dip) in Journalism, BA in Economics, MA in Global Business Journalism, Master of Business Administration (MBA) in International Business Management and Master of Sciences (MSc) Economics and Finance. He is a practicing Communications Specialist with MultiChoice Group, a South African company that operates the DStv, a major service in Sub-Saharan Africa, and GOtv, a minor service operating in over 9 countries.