Friday, February 18, 2011

Investors should bank their money locally, says Mtesa

COMMENT - Not necessarily a bad idea, but the effect is only going to be marginal. Banks will make a little money from interest. The point should really be that it is foreign investors who are making all this profit instead of Zambians.

Investors should bank their money locally, says Mtesa
By Ndinawe Simpelwe
Fri 18 Feb. 2011, 04:00 CAT

IT is ideal for foreign investors to keep their money in local banks, says Ambassador Love Mtesa. In an interview, Ambassador Mtesa who is also Consumer Unit and Trust Society Zambia chapter board chairperson, said government should renegotiate with foreign investors to ensure that they bank their money locally.

Ambassador Mtesa said foreign investment in the country was good for the economy but that it would help to negotiate with the investors to bank with local banks.

“We need to look at the agreement because if foreign investors were banking with our local banks it would make the economy grow faster because some of the money will be used in the country,” Ambassador Mtesa said.

He said it was sad that all the money that foreign investors were making was going abroad, with the country benefiting nothing.

He said such kind of a situation was making it difficult for the government to plan for economic growth as it did not know what to expect from investors.

“It is necessary for both investors and government to sit down and look at possible ways of banking with local banks,” he said.

Ambassador Mtesa added that some foreign investors were making huge profits that would benefit the local economy through bank loans.

“They can agree on a percentage of how much money should be banked locally and how much be taken to their countries. Government should ensure that the economy grows from foreign investment,” he said.

Ambassador Mtesa said it was up to the government to ensure that the Zambian people started benefiting from foreign investment.

He recommended that government and foreign investors find a lasting solution in ensuring that some of the profits made should remain in Zambia.

Ambassador Mtesa said it was not necessary for investors to keep all their money abroad when the country had enough banks.

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