Zambia, China hold talks on TAZARA operations

Zambia, China hold talks on TAZARA operations
Written by Kabanda Chulu
Saturday, January 17, 2009 5:43:19 AM

GOVERNMENT has commenced discussions with China to find ways of revamping operations at the Tanzania Zambia Railways (TAZARA).

And President Rupiah Banda has said both Chinese and Zambian investors must be given equal business opportunities in the proposed economic zones.

Meanwhile, Chinese commerce minister Chen Deming said China would continue providing various forms of support to Zambia without attaching any conditions.

Officially launching the construction works at the Lusaka sub-zone of the Chambishi Multi Facility Economic Zone (MFEZ) on Thursday, President Banda said China had always come to the aid of Zambia during the most difficult times.

He said China had assisted Zambia when other cooperating partners considered impossible to construct the TAZARA railway line.

“China has been an all-weather friend and has always come to the aid of Zambia during difficult times. We are, therefore, overwhelmed by the Chinese responses that have always come at the most opportune times,” President Banda said. “And to sustain the exporting and importing of goods to the East coast through TAZARA, we have started discussions with the Chinese government to find ways of revamping operations or rebuilding the railway line and I am hopeful that the talks will be concluded soon.”

TAZARA, which is a joint venture between the governments of Zambia and Tanzania, was established over 40 years ago, but currently, the railway company has been facing serious problems. The company currently has total debts amounting to around US $60 million owed to various institutions.

President Banda said the most important thing for Zambia at the moment was to open up and let other people bring investment and expertise into the country.

“The MFEZ will be the most credible platform for strengthening investment cooperation between Zambia and China and anybody who brings jobs to Zambia is our darling and we hope other companies from other countries apart from China will also invest in the economic zones and this launch of construction works shows that Zambia is still a good and attractive investment destination,” he said.

He called for strong partnership between Chinese investors and Zambian businesses in establishing companies in the economic zone.

“This is important for our citizen’s empowerment programme and to enable Chinese companies tap into local expertise, knowledge and culture, in the same vein, I suggest that both Chinese and Zambian investors must be given equal business opportunities at the economic zone,” said President Banda. “And I call upon all Chinese and other foreign investors to support local suppliers and contractors as opposed to promoting foreign suppliers since it is important to utilise goods and services that can be obtained locally.”

And Chen said Zambia had become the first country to have an economic zone and industrial park outside China.

He said the development was expected to elevate the cooperation between the two countries to another level.

“We are happy that the first economic zone and industrial park outside China has started and we shall remain faithful friends of Zambia and for over 40 years, we have supported various projects and we shall continue doing so without any attached conditions but with the best of our abilities,” said Chen.

And China Non-ferrous Metals Mining (CNMC) group president Luo Tao said China was committed to invest in Zambia despite the global economic meltdown.

“We remain confident and committed to continue with investments in Zambia and we shall create job opportunities and despite the decline in copper prices, we will not lay off any worker and we will not reduce any tonne of production in Zambia,” said Luo.

The Chinese government, through the CNMC group, has pledged to invest US $ 900 million in the Chambishi MFEZ, where about 60 companies would be established and would mainly be involved in value addition and related manufacturing.