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(LUSAKATIMES) Foreign Investors in Timber Industry in Zambia externalizing their profits-TPAZ

Foreign Investors in Timber Industry in Zambia externalizing their profits-TPAZ
TIME PUBLISHED - Tuesday, October 11, 2011, 8:39 am

Zambia is losing revenue from illegal cutting of trees. Mongu district forestry department confiscating timber from unlicensed dealers at Mongu central market during a market inspection exercise in Mongu

THE Timber Producers Association of Zambia (TPAZ) has urged Government to revoke all timber licences because most investors are allegedly externalising their profits.
TPAZ vice-president Charles Masange said the timber industry is currently dominated by foreign investors, hence the need for Government to sort out the issuance of licences to bring sanity in the industry.

Mr Masange said in an interview in Lusaka that Zambia could realise revenue from the export of timber if the necessary measures are put in place for the industry to positively contribute to country’s economy.

He said the policies should be revised in order for both parties to benefit unlike the current situation where only a few are advantaged noting that the timber sector is only contributing one percent to the Gross Domestic Product.

“The timber industry has been performing very badly because it is overcrowded by foreigners,” he said. He said Government should immediately revise the Investment Act under Zambia Development Agency to scrutinise genuine and fake investors and also constitute a Taskforce to monitor and control timbering in the country.

Mr Masange said currently most foreigners buy timber from the locals at a minimum price of K1 million per tonne and resale at about US$10,000 to 12,000 per tonne.

Mr Masange said currently most foreigners buy timber from the locals at a minimum price of K1 million per tonne and resale at about US$10,000 to 12,000 per tonne.

He alleged Zambians will continue to be disadvantaged, if the trend of investors engaged in large hectarge of timbering is left unchecked adding that foreign investors should be allowed to participate in the secondary industry so that they export finished materials instead of raw materials.

He said Zambia does not benefit from its timber as it is directly exported to country of the investors’choice.

“I call them (foreign investors) harvesters instead of investors because they are abusing our timber which is natural resources from which we are suppose to benefit locally,” he said .

“I call them (foreign investors) harvesters instead of investors because they are abusing our timber which is natural resources from which we are suppose to benefit locally,” he said .

He also said the Government should consider funding the wood industry so that it can create jobs, improve people’s livelihood and generally contribute to the development of the country’seconomy.

Labels: FDI, MONGU, NEOCOLONIALISM, TIMBER

posted by MrK @ 9:12 PM