(LUSAKATIMES) Finance Minister Alexander Chikwanda’s message to the private sector

Sunday, July 29, 2012

(LUSAKATIMES) Finance Minister Alexander Chikwanda’s message to the private sector

COMMENT - Minister Chikwanda: "As Patriotic Front we believe a rich Zambia with enhanced purchasing power for most Zambians is the only efficacy and rationale for foreign investors. Pervasive poverty is not a recipe for Economic growth. On the contrary, poverty militates against meaningful foreign investment because it severely limits market penetration. " It's not 'workers of the world unite', but at least it is as big step up from the MMD, who didn't care about how many poor people there were. However, I still feel there are remnants of the 'trickle down' mentality. What we need is a pro-active approach to taxing the mines and reinvesting those taxes into infrastructure projects and economic diversification into agriculture and manufacturing.

Finance Minister Alexander Chikwanda’s message to the private sector
TIME PUBLISHED - Saturday, July 28, 2012, 4:16 pm

Finance Minster Alexander Chikanda met with China Non-Ferrous Metals Corporation and their collaborators where during the week where he addressed a number of economic and administration issues of the Patriotic Front (PF) Government. Among issues addressed wereprivate sector reliability, use of the dollars, workers welfare and listing of Government parastals on the Stock Exchange.

Below is the Full Speech reproduced

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REMARKS BY Mr. ALEXANDER B. CHIKWANDA, MP – MINISTER OF FINANCE – THURSDAY, 26 JULY, 2012

The function this afternoon offers an opportunity for interaction between the private sector and Government. I am sure we have all noticed for both reasons of curiosity and interest a significant presence of people from China Non-Ferrous Metals Corporation and their collaborators. I will come to that in a while.

Firstly, let me emphatically state that the Patriotic Front Government regards the Private Sector as partners in our country’s development endeavors. Partnership has norms and moral imperatives. Partners are duty bound to consult each other, a process that of necessity fosters trust and confidence and not least avoidance of taking each other for a ride.

Partnership has norms and moral imperatives. Partners are duty bound to consult each other, a process that of necessity fosters trust and confidence and not least avoidance of taking each other for a ride.

I sincerely hope that I am not being unnecessarily uncharitable if i assert that the private sector actors in Zambia have a long way to build a track record of unassailable reliability. We in the Patriotic Front think that through frequent interaction and exchanges we can optimise mutual trust which will ultimately anchor common objectives, fellowship and harmonisation of perceptions and interests.

The Patriotic Front (PF) administration’s thrust is inclusiveness and consensus, if and when possible we want to avoid a proliferation of regulation. We are not regulation zealots and we only seek recourse to regulation as a very last resort and principally to preempt abuse. For example we recently through SI 33 decreed that all domestic transactions be effected solely using the country’s legal tender, the Kwacha. This is indeed the practice in all countries except In countries shrouded in some abnormality.

The Patriotic Front (PF) administration’s thrust is inclusiveness and consensus, if and when possible we want to avoid a proliferation of regulation.

As government our inclination is to act with restraint, aware that the government has unmatched leverage because it controls the instruments of the state. The state is not only the summation of institutions in some specific geographical space: it has exclusivity in terms of monopoly of legitimate use of force within its geographical boundaries.

That is why any state controls all instruments of coercion also euphemistically known as security forces. That is why government does not panic when some citizens with misguided and misplaced agenda are very vocal. Some of our people act at the behest of or are trojan horses for some dubious foreign interests.

We will listen to a diversity of views even hostile ones. At the end of the day, primacy will always be assigned to the safeguarding of the interests of the Zambian people in totality.

Now, let me talk about China Non-Ferrous metals corporation. We want to congratulate and commend you for listing on the prestigious Hong Kong stock exchange in a way which highlighted Zambia and significantly dispelled doubts about our country as a credible Investment destination.

The initial public offer of $300 million for projects in Zambia was an important achievement more so that the listing represented the first African asset on the Hong Kong Stock Exchange. It is gratifying to learn that more significant resources will be raised on the same stock Exchange for investment in Zambia. This will entail creation of thousands of jobs, an urgent and compelling need for our country.

We hope, and expect China Non-Ferrous will be in the fore front of the corporate social Responsibility particularly as that relates to improved welfare of the workforce, that way you will help reinforce the agenda of the Patriotic Front.

Our primary duty and irrevocable mandate is to be custodians of the interests of our people. This means we cannot watch with indifference the rights and dignity of our people being brutalised. Equally the Zambian workers are enjoined to embrace responsibility and develop a sense of duty to their country.

This means we cannot watch with indifference the rights and dignity of our people being brutalised. Equally the Zambian workers are enjoined to embrace responsibility and develop a sense of duty to their country.

We make a passionate plea to China Non-Ferrous Metals Corporation to list on the Lusaka Stock Exchange. In fact, we wish to appeal to all companies of meaningful size to list on the Lusaka stock exchange (LuSE). For government owned companies popularly known as Parastatals, Government will require all of them to list to enhance capitalisation and to afford Zambians a chance to own stock. This is an essential step in the country’s development process.

Listing on foreign stock exchanges by companies operating in Zambia highlights our country. I am not exaggerating when I say the listing by Zambeef on the London Stock Exchange has had more impact than what our mission in the United Kingdom has done to promote Zambia.

The listing in Hong Kong by China Non-Ferrous provides useful information to other would-be Investors. It is a huge quantum leap and Government wishes China Non-Ferrous all the best of luck.

We look forward to widening the frontiers of our partnership. This applies to all companies operating in Zambia. The Patriotic Front (PF) agenda is premised on a conducive investment climate for both local and foreign investors. That era of the absentee landlords Who provided an enabling environment for foreigners and a crippling one for locals is gone.

As Patriotic Front we believe a rich Zambia with enhanced purchasing power for most Zambians is the only efficacy and rationale for foreign investors. Pervasive poverty is not a recipe for Economic growth. On the contrary, poverty militates against meaningful foreign investment because it severely limits market penetration.

I THANK YOU.

Labels: ALEXANDER CHIKWANDA, NON-FERROUS METAL CORPORATION AFRICA, POVERTY