By CHARITY MOONGA –
FERNGROOVE Group of Companies will partner with local and international firms including Nova Vista Capital Advisors, an American-based company which is helping to attract much-needed foreign direct investment to Zambia.
Ferngroove is an investment advisory firm based in Lusaka.
Ferngroove chairperson, Conrad Gomani said Zambia had continued to attract foreign investment despite the economic slowdown.
This is contained in a publication by Anadolu Agency last week.
So far, the firms have raised about US$150 million through international fund managers which will go towards local investment projects in Zambia.
“The $150 million investment deal expected to be signed this coming October in New York will help the Zambian Government to create jobs for the growing population of young people,” Mr Gomani said.
Another such investment was already underway.
Ferngroove is working on a deal with a major French pharmaceuticals company which has announced its intentions to start distribution of its drugs and health care products on the Zambian market immediately.
He said Zambia was still attracting foreign investment despite its economic slowdown.
Growth in Zambia has slowed, and Moody’s downgraded the country’s credit rating to ‘B2’, five steps below investment grade.
“But Zambia still remains a preferred investment destination because there are no, security risks involved compared with other countries.
“This peaceful atmosphere does not only assure investors about safety of their money but gives them the confidence required for investment,” Mr Gomani said.
According to an assessment by Spanish bank Santander, most investment to Zambia has gone to the mining sector, which represents 70 per cent of GDP.
The devaluation of the country’s currency, the Kwacha, combined with a drastic drop in the price of copper, the principal mining export, have deterred further investment in that sector.
Mr Gomani, however, said his organisation was determined to attract investment to other sectors of the Zambian economy.
“The volatility of almost all the currencies, including the Kwacha has had an effect on investment inflows in many countries, including Zambia. Zambia has the advantage of the peace which excludes all the risks which scare away investors in some countries across the globe,” Mr Gomani insisted.