Maravi

Government's clarification on ‘nationalisation' timely - Kanyama

Government's clarification on ‘nationalisation' timely - Kanyama
By Gift Chanda
Tue 07 Feb. 2012, 13:00 CAT

WYNTER Kabimba's position that the government will not nationalise private property is a positive pronouncement for continued investments, says economist Chibamba Kanyama. Kabimba, who is PF secretary general, on Saturday said the PF had no plans of nationalising private property, adding that the ruling party would govern the country based on the party manifesto.

"What we are going to do in government is all embodied in the party manifesto and nowhere in the manifesto do we say that we are going to nationalise any private property," said Kabimba.

Commenting on Kabimba's statement, Kanyama said the clarification was timely and positive for continued investment in Zambia.

He said earlier sentiments supporting nationalisation, although made with reference to the reversal of the Zamtel sale to Libya's Lap Green Networks and the current investigation on the sale of 49 per cent of Zanaco shares to RABObank, unsettled both local and foreign investors.

Since assuming office last September, President Michael Sata has reversed the sale of Zamtel's 75 per cent stake to LAP GreenN. The government is currently probing the 2007 sale of Zanaco to Rabobank of the Netherlands.

"The clarification by Kabimba that the party has no plans to nationalise industry is timely and positive news for continued investment in Zambia…a number of players interpreted the earlier comments as government position on the future protection of private property," Kanyama said.

"It is further advised that this position by Kabimba be endorsed by Cabinet owing to negative pronouncements by senior government officials and other patriots that implied the state was on a road to re-introducing parastatals."

Kanyama said it should be clearly understood that the path of privatisation and economic liberalisation has now been fully entrenched in the national economy so that any reversal to this policy would have dire consequences to investment.

He said since the privatisation of loss making companies in Zambia in the 1990s, the country has attracted several billions of dollars in investments in all sectors of the economy.

Kanyama further said the policy of protecting private property has further re-invigorated local participation in private enterprise through business activities and participation on the stock market.

Labels: CHIBAMBA KANYAMA, NATIONALISATION, PF, WYNTER KABIMBA

posted by MrK @ 4:21 PM