Foreign Direct Investment (FDI) in Tajikistan increased by nearly 355 million U.S. dollars in 2017, says the Analysis of Investment Inflows into Tajikistan’s Economy in 2017, released by the State Committee on Investment and State-owned Property Management (GoSKomInvest).
FDI in Tajikistan reportedly averaged 3.673 billion U.S. dollars from 2007 till 2017. 26 percent (960 million USD) of foreign direct investment has been made the country’s mining sector.
Compared to 2016, foreign direct investment inflows into the country’s economy last year decreased by 80 million U.S. dollars, according to the report.
In 2017, FDI was reportedly made in the following sectors: mining – 176.6 million USD (49.5 percent), financial activity and other commercial services – 30.6 million USD, transportation and communications – 64.1 million USD (18.0 percent), processing industry – 37.6 million USD (10.5 percent), etc.
Over the last eleven years, Tajikistan has reportedly attracted more than 8.6 billion in foreign direct investment. China has accounted for more than 26 percent (2.25 billion USD) of the overall volume of FDI attracted in Tajikistan.
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control. The investment may be made either “inorganically” by buying a company in the target country or “organically” by expanding the operations of an existing business in that country.
Broadly, foreign direct investment includes “mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations, and intra company loans.” In a narrow sense, foreign direct investment refers just to building new facility, and a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. FDI is the sum of equity capital, long-term capital, and short-term capital as shown in the balance of payments.
