Maravi

Zambia cursed by short-term investment - Scott

Zambia cursed by short-term investment - Scott
By Moses Kuwema
Tue 05 June 2012, 13:24 CAT

ZAMBIA is cursed by short-term investment at the moment, says Vice President Dr Guy Scott. Speaking when he officiated at the ground-breaking ceremony for AGCO, an American company involved in the manufacturing and distribution of agriculture equipment in Chongwe yesterday, Vice-President Scott said nobody wanted to invest long-term.

"Zambia is cursed by short term vision. At the moment nobody wants to invest except if they get their money back in four years. There are a number of shopping malls and agriculture development companies like CDC (Commonwealth Development Corporation), the British Development Cooperation have pulled out of agriculture in Mpongwe and have gone into shopping malls, Manda Hill is one of their investment and another one is this Water falls shopping centre at the airport turn off. So when even state development companies like that are going short term and looking for equity, it is very gratifying to have people that are thinking in the ten-year or 20-year vision,"

Vice-President Scott said.

[Zambian entrepreneurs wouldn't be that short term. Another reason to collect $1.5 billion a year from the mining sector and funding our own development. - MrK]

He said Zambia needed environmental and social responsibility investment.

"That's the other investment we need. There is no use solving the world's hunger problem by displacing millions of people. We refuse to do that," he said.

US Ambassador to Zambia Mark Storella said AGCO's investment in Zambia was a sign that the world was taking notice of the country because it had advantages over other countries in the region in areas such as peace, unity and a stable democracy.

"This particular investment is a sign that American investment is beginning to take orders of Zambia and its potential. Since I have been here, we have seen big companies. The world is taking notice of this country and the reasons why that is happening is because Zambia is one of the countries that has advantages so few countries have; a real history of peace, a real history of unity," ambassador Storella said.

Ambassador Storella observed that Zambia's farming sector was below average in the region in terms of productivity and that AGCO's investment could start changing the scenario.

Meanwhile, senior vice-president of AGCO Hubertus Muehlhauser said the company intends to invest more than US$100 million in the years to come in Africa.

Muehlhauser said AGCO would have two manufacturing sites in Africa.

AGCO is a worldwide manufacturer and distributor of agricultural equipment, and yesterday launched a 150 hectare farm and learning centre at the former Agriflora farms on Great East Road.

Labels: FDI, GUY SCOTT, MARK STORELLA

posted by MrK @ 2:12 PM