A Study of the Economic and Environmental Impacts of Foreign Direct Investment in the Mining Sector in Zambia

Foreign direct investment (FDI) is important to the future of development of Africa. The free flow of capital across borders tends to be favoured by many African countries including Zambia because it is a means of increasing the capital available for investment and for stimulating the economic growth needed to reduce poverty and raise living standards on the continent. Undoubtedly FDI contributes to achieving sustainable economic development. This paper seeks to examine the impacts that FDI in the mining sector has made to economic and environmental situations in Zambia. The paper will review and analyse the extent to which such impacts have contributed to economic growth in environmental standards and how sustainable development has been realized as a result of the introduction of this initiative and/or opportunity.