LETTERS - Indeni and FDI
We need another oil refineryBy Mubanga Luchembe, Lusaka
Sunday November 18, 2007 [04:00]
Recently, finance minister Ng’andu Magande held a press briefing on the recent fuel shortage to explain the President’s involvement in securing feedstock for Indeni using a named local bank and the Bank of Zambia.
The press briefing was aired on ZNBC TV. During the question and answer session, a young female journalist from the private media asked a very pertinent question on why the government cannot consider a long-term measure of setting up another oil refinery in Zambia to act as a backup to Indeni.
To my surprise, our Mr Know-It-All Minister of Finance told off the young lady for asking such a question. And he was fully supported by his counterpart Ken Konga from the Ministry of Energy.
Facts are that:
Indeni Refinery is too old. It was built in the sixties, meaning it is now over 40 years old. At the moment this refinery is literally limping, hence its frequent breakdowns and shut downs.
Zambia has an oil-rich neighbour - Angola. Simply constructing a pipeline like Tazama as a joint venture between the Zambian and Angolan governments can be a strategic link to feed the new refinary.
The back-up refinery can strategically be located in the North Western Province where mining and other development activities are currently taking place.
Oil marketing companies find it unprofitable to store 15 days strategic stock all the time, instead of selling the commodity to end-users.
The young journalist suggested a long-term plan because the apparent short-term measures our government is fond of always back-fire. Bwana Ministers please, learn to listen to other people's suggestions. No one has a monopoly of knowledge and wisdom. Remember the Bemba old adage: Munshebwa aile na mashinsha ku buko.
http://www.postzambia.com/post-read_article.php?articleId=34071
A Fuel crisis result of incompetence
By Dr F.A.S Banda,UK
Sunday November 18, 2007 [04:00]
Indeni Refinery has run out of fuel again. This is surely incompetence. Once may be forgivable, but making it a regular occurence is incompetence, period!
A country cannot run on an ad hoc basis where a strategic component of the economy like fuel (energy) is concerned. It is not only the issue of costs to the economy of not having reliable fuel supplies, but also the cost of shutting down a whole refinery and then restarting the operations once the crude oil is available.
For God's sake, how can you run a government like this?
Many people in the past have called for the whole process of crude oil acquisition to be moved out of the control of government bureaucrats into either an independent organisation that is autonomous.
Granted this is a vital component to a nation's economic livelihood and, of course, it may be argued that it even boarders on our nation's security. But so far, there has been no indication that the current setup is working.
Where you have the President overruling the people appointed and charged with the responsibility to purchase and distribute the commodity, there will still be no signs of any clear vision on a way forward.
Sticking to dogma for its sake and not being flexible and listening to what looks to be a tried and tested model in other countries sounds like a sure path to a repetition of this scenario.
And while we are grappling with the consequences of the high cost of energy from fossile fuels, I hope the government is looking beyond its tenure in office by researching. Yes I said researching, into alternative energy sources.
Forward-thinking countries started doing this ages ago. Unless this government is very sure they have "black gold" in North Western Province.
The fuel crisis is pathetic and an indictment on the MMD's modus operandi. The word failure springs to mind.
http://www.postzambia.com/post-read_article.php?articleId=34073
Be wary of global trade systems
By Kambafwile Pascal
Sunday November 18, 2007 [04:00]
The government needs to be very careful with international trade sytems. What is clear in many cases is that international trade systems and foreign investment discriminate against developing countries, and international divisions of labour exploit workers for profit.
It is so irrational and grossly ruinous to think that the destiny and development of this nation lies in the hands of investors, especially foreign investors, minus our serious, reasonable and realistic dialogue with them when it comes to business negotiations with them.
Let us all realise that development demands, above all, a spirit of initiative on the part of us who need it. If Tanzania has been that creative, what about Zambia? We need to realise that solidarity among us will call for greater cooperation and establishment of effective national development.
Labels: LETTERS
posted by MrK @ 6:44 AM
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