Maravi

A raw deal for Zambians

A raw deal for Zambians
By Editor
Sunday November 25, 2007 [03:00]

A government can be described as tangible machinery for the state; it deals with all the functions of the state. A government is primarily concerned with the formulation and implementation of policies in a state. Basically, a government has three functions which are reflected in the three basic organs or arms. These are: the legislature, the executive and the judiciary.

In short, a government is supposed to give direction to the nation through its three wings which are said to be separate but equal. The government determines policies for the country; it initiates and enforces laws.

Therefore a government that fulfills the above can be said to be effective or living in accordance with people’s expectations.

But why are we saying all this? Why have we gone back to the basics?
We are saying this in light of FDD president Edith Nawakwi’s observation that Zambia’s economic problems can far be reduced if the government effectively plays its role. This is in line with the renegotiation process currently going on between the government of Zambia and the mining companies for increased tax on mining royalties.

As we have stated before, this process of renegotiating copper mining agreements is an important one and requires a lot of seriousness. This is because copper, or the mines, are the main stay of Zambia’s economy. Our minerals are to Zambia what a breadwinner is to a family.

A breadwinner in a family is always jealously guarded or protected by the members he or she provides for because they realise that the moment they allow him to die, they are also dead. It is in this context that the debate about how Zambia’s mineral resources have been mismanaged should be viewed. There is no doubt that our copper mines’ deals were mishandled by the government, much to the disadvantage of Zambians.

And the effects of this mismanagement are there for all to see. Life on the Copperbelt in particular and the whole country in general, is almost at a standstill. Poverty levels have reached unprecedented levels although the government will not admit this fact. However, there is no need to argue on this point. All one needs to do is to take a few minutes’ drive or a walk away from the central business district in Lusaka or other major towns in the country and they will be shocked with the kind of poverty they will witness. Mahopo compound in Lusaka is one such example where this squalor cannot be hidden by anything.

For this picture to be reversed, Zambia’s economy has to tick. Today, we hear so much rhetoric about how much the economy has improved under Levy Mwanawasa’s leadership. We hear so much about how prosperous some businesses and individuals are today than they were a few years ago. However, it is not easy to feel this improvement in our economy because the benefits are not trickling down to the ordinary Zambian.

Indeed, it is evidently clear that the mines, our breadwinner, today are more prosperous than they were a few years ago but the benefits to our economy are not as evident. Yet, this fact is not so evident to the naked eye. If these new mine owners today decided to pack and go, life on the Copperbelt or indeed in Zambia would just grind to a halt because there is nothing that these mine owners have done in terms of re-investing their wealth in the country. This is the concern of all our compatriots. They are saying that these new mine owners are benefiting more than the owners of the mineral resources.

We don’t want to bore our readers with the history that is well known to them because they know why this is happening. They also know how this can be reversed.
But it looks like our government does not know its obligation to the people, our government leaders don’t seem to know how to utilise their power on behalf of their people.

If Zambia properly benefited from its copper and other minerals, there would be no need to beg for donor assistance every year. But our government doesn’t seem to realise that copper is to this country what blood is to our bodies. For our bodies to operate properly, they need to have blood in the right quantities and quality.

When these new mine owners drain our blood through copper exports, they are not leaving enough money for us to buy vegetables and other food supplements or nutrients to ensure that we feed well and remain healthy so that they can come back tomorrow and drain more blood from our bodies. Because these pampered investors are just drawing from our economy and not ploughing back, we are now a sickly nation that can collapse and die anytime.

The millions of dollars that these mining companies are making on a daily basis are all sent abroad but not for the benefit of Zambians. That is why we are making this clarion call to all our compatriots to put the necessary pressure on the shoulders of our government to do that which is in their interest as they renegotiate on these mining deals. If the mines are properly taxed, with the kind of money they are making, we can safely say that such tax can meaningfully contribute to our national budget. But as it is, we have chosen to choke ourselves with borrowed money, which comes with a price, to finance our national budget.

We have to move away from this shallow way of managing a country and demand good work from those whom we have entrusted with the power to rule on our behalf. It doesn’t matter what route finance minister Ng’andu Magande will take to ensure that mining companies are appropriately taxed regardless of any circumstances. If it is possible to move amendments to the mining Acts or any contract as Nawakwi is suggesting, let it be done. And if going for renegotiations is the only route, so be it.

However, whichever way Magande chooses to go, he should be reminded that our people are expecting only the best results. We say so because we know that those contracts the government signed with mining companies were not cast in iron or stone. Anything can be changed if those charged with the responsibility to renegotiate take their assignment seriously.

Again, we ask Levy and his government to get more serious about the copper mining renegotiations because this is a very serious matter for the nation. We want to see action on this matter. We have been exposed to so much rhetoric on this matter; it is just words and words and more words, no action. Magande’s claims about how well Zambia’s economy is doing cannot be supported by all because a lot of our people are yet to be touched by this alleged success story under his guide or charge.

It is not too late for our country or government to start managing our mineral resources for the benefit of our economy and ultimately our people. Where this is done properly, there is cogent evidence to show how citizens in those countries are benefiting from well-managed mineral resources. This has been done before in Zambia. It can be done again. Yes, it can be done only if our leaders are committed to serving our people, only if we have a functioning government in place. For now, what we have is a raw deal for Zambians.

Labels: DEVELOPMENT AGREEMENTS, MAGANDE, MINING CONTRACTS

posted by MrK @ 7:50 AM