Evaluating foreign direct investment impacts on agricultural productivity in Zambia, indicating economic growth challenges.
Abstract This study examines the pivotal role of Foreign Direct Investment (FDI) in transforming Zambia's agricultural landscape during the 2000s, a decade characterized by significant economic reforms and heightened global investment dynamics. As Zambia endeavored to enhance its agricultural productivity and food security, FDI emerged as a crucial mechanism for introducing not only capital but also advanced technology and expertise into the agricultural sector. This paper comprehensively evaluates both the positive impacts and the multifaceted challenges associated with FDI in Zambian agriculture. Key findings indicate that FDI has significantly contributed to increased crop yields, improved infrastructure, and enhanced access to international markets, thereby fostering economic growth and development. Additionally, the influx of foreign capital has facilitated the adoption of modern farming techniques and improved supply chain efficiencies. However, the study also reveals persistent challenges, including land tenure issues, environmental concerns, and the marginalization of smallholder farmers, which complicate the integration of foreign investment into local agricultural systems. These challenges underscore the need for nuanced approaches to policy formulation. The study emphasizes the necessity for balanced policies that maximize the benefits of FDI while concurrently addressing its socio-economic and environmental challenges. Ultimately, the goal is to achieve a sustainable agricultural transformation in Zambia that benefits all stakeholders, particularly the most vulnerable segments of the farming community.
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Reagan Kapilya (2025) studied this question.
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