To date, the performance of the Zambian private sector had been poor due largely to the high cost of capital and domestic inputs for local production, which make sustaining competitiveness in an open economy practically difficult. The present Investment Review notes that since the introduction of major economic policy reforms In the early 1990s, private investment, including FDI, had been playing a greater role in Zambias economy. FDI had also contributed to the long-term policy objective of Zambia, which is to diversify its production and export base from mining to other products and services.
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