This is time for Africa!
By Editor
Wed 29 May 2013, 14:00 CAT
Tomaz Salomao, secretary general of the Southern Africa Development Community, says African states should exert their efforts in implementing clear independent strategies of managing domestic affairs away from reliance on regional integration or external intervention for development.
Salomao emphasises the need for African states to concentrate on mobilising their domestic resources for development. And he further observes that our so-called co-operating partners "are here in Africa to deal with their own business".
When Che Guevara was asked by Mrs Josie Fanon in an interview that was published on December 26, 1964 about what road of development was best suited for the African countries, he responded: "If my advice were asked, or rather my opinion, as Cuban Minister of Industry, I would say simply that a country beginning to develop itself must, in the first period, work, above all at organisation, and that one should approach the practical problems by 'using your own head'.
This may seem to be an abstract and rather vague opinion but it is something very important… It may be necessary at times to set up small plants requiring a lot of workers and offering jobs for many unemployed, rather than highly mechanised enterprises employing a reduced number of workers. In certain cases, a sector must be rapidly mechanised; in other cases, this is not necessary.
In fact, in a country on the road to development, most problems involve agriculture and extractive industries, but it is quite evident that these problems are posed in a different way in each country, and that one must pay attention above all to particular realities. That is why it is impossible to give a general formula that could be applied to all the African countries."
Che was not opposed to aid but emphasised the need for vigilance on this score: "There are also other positive aspects: the present possibilities of much more rapid development for African countries that even a few years ago due to the aid which some of the capitalist countries can likewise provide under certain conditions. But on this point, we must be vigilant." That was Che in 1964.
We should stand for self-reliance. We should hope for foreign aid but we should not be dependent on it; we should depend on our own efforts, on the creative power of our people; on our own strength, and that means regeneration through our own efforts. We should rely on the things we ourselves can organise.
We stand for regional integration but it must be regional integration based on integrating our strengths while clearing away our weaknesses. We have a pressing need to unite. We think that the correct strategy is to unite and regionally integrate. But this, as Salomao has correctly observed, does not take away our responsibility to manage and develop our individual countries in the most efficient and effective way. If we ignore this, we will be running in circles. The political leaders who fail to see this will have to answer to history for it. We hope they will accept their responsibility, understand the problem, state it in correct terms in order to solve it and move our countries forward.
We must choose concrete, realistic and definitive solutions - not take the path of agony. We must choose a clear, intelligent, effective solution - not head toward Calvary.
We think we have been struggling uphill for long enough. We have suffered not only the torment of Calvary but also that of Sisyphus, who had to keep pushing a boulder up a hill and every time he was about to reach the top, it would roll back down, and he would have to start all over again.
Our situation is worse than Calvary because Calvary was climbed quickly; we have been climbing our hill for a long time, and we keep on having to start over. Calvary is preferable to Sisyphus' torment, and if we have had our Calvary, we should also have a resurrection.
What we want is to find a real solution to the problem, but what will happen is that others will try to prevent the implementation of those things that would move our countries and our people forward; they will divide the people; they will give a little aid here and there so that each will remain his own Calvary - and not even a Calvary, but with the agonising torture of pushing the boulder up a never-ending hill. But one day, the peoples are going to demand, 'How much longer do we have to put up with these conditions?' And then they will find solutions.
We prefer an orderly solution; internal and external unity; and a real, definitive solution for the problems of dependence and underdevelopment.
Let each country handle its issues in a way that best suits its democratic process and the solution of its most pressing economic problems. Generalised prescriptions that have been imposed on our countries have not achieved much. As Salomao has correctly observed, "we need to have long-term visions on how to do this".
We need to exert ourselves that much more, and break out of the vicious cycle of dependence imposed on us by the financially powerful; those in command of immense market power and those who dare to fashion the world in their own image. We are perfectly capable of deciding upon our own future form of government, discovering and ourselves dealing with any dangers which might arise.
Africans are eager and willing to be among the very best in all areas of human endeavour.
Our renaissance is at hand - and our challenge is to steer our continent through the tide of history.
As it is said, it would be a cruel irony of history if our actions to regenerate our continent were to unleash a new scramble for Africa which, like that of the nineteenth century, plundered our continent's wealth and left it once more the poorer.
And as we try to redeem and work for the regeneration of our continent, we should be conscious of the fact that the African renaissance can only succeed as part of the development of a new and equitable world order in which our marginalised continent takes its rightful place and becomes a maker of history rather than the possession of others. This is time for Africa!
Labels: DAVIDSON CHILIPAMUSHI, REGIONAL INTEGRATION, TOMAZ SALOMAO
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Nothing wrong with regional integration - Chilipamushi
By Kabanda Chulu
Wed 29 May 2013, 14:00 CAT
THERE is nothing wrong in embracing regional integration strategies in pursuance of economic development, says economist Davidson Chilipamushi.
Commenting on the statement by SADC executive secretary Tomaz Salomao that African states should exert their efforts in implementing clear independent strategies of managing domestic affairs away from reliance on regional integration, Chilipamushi, who is a former permanent secretary at ministry of commerce, trade and industry, yesterday said weaker economies should maximise benefits from regional economic cooperations.
"In my opinion, embracing regional integration is a step in the right direction, for example, Europe realised the importance of this strategy and started the process of integration because the benefits are many," Chilipamushi said.
"But in Africa, we are still far from getting benefits associated with regional integration because in each of the regions on the continent there is one or two dominant economies which doesn't work to the advantage of smaller economies."
He advised that smaller economies should be assisted to address structural rigidities that affect the whole process of regional economic integration.
"We need to move towards regional integration and for weaker economies to get maximum benefits from this process they should be helped to address their inadequacies in transport, communication, research development, technological capacity, among other factors," said Chilipamushi.
Dr Salomão last week said African states should exert their efforts in implementing clear independent strategies of managing domestic affairs away from reliance on regional integration or external intervention for development.
He said it was the sum of these efforts of different member states that would consolidate and strengthen integration to make it more beneficial.
Dr Salomão was responding to a question on what benefits member-states were accruing from the annual a thousand-dollar subscription to AU beyond the dream of liberalization of fellow countries, which has now almost been achieved.
He said implementation of long-term national visions and ensuring lasting peace was key for all member states of AU.
Labels: DAVIDSON CHILIPAMUSHI, REGIONAL INTEGRATION, TOMAZ SALOMAO
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COMMENT - If 'the breakeven price of copper is $5,000 per tonne', how come Mopani sold copper to Glencore for $2,500 per tonne? Davidson Chilipamushi should get his numbers straight. Bottom line - you can't trust the foreign mining companies. So don't, and either have high tax on turnover, or nationalize. Also, unless 'corporate social responsibilities' add up to $1100 million a year, they don't replace actual taxation.
Chilipamushi bemoans limited benefits from the mining sector
By Kabanda Chulu in Kitwe
Tue 01 Mar. 2011, 04:01 CAT
LIMITED benefits from the mining sector will result in political resentment against the government by people living on the Copperbelt, says a Copperbelt University academic.
Davidson Chilipamushi, a lecturer in the school of business at the Copperbelt University, who was until recently a permanent secretary in the Ministry of Commerce, Trade and Industry, said many Copperbelt residents were feeling hopeless because of their failure to benefit from the thriving mining activity in their region.
He made the remarks during a Zambia Institute of Certified Accountants' (ZICA) forum, "Booming copper price-what is the economic impact on the Copperbelt?"
Chilipamushi said government’s reluctance to reintroduce the windfall tax on mining had confirmed people’s perception that the state was protecting foreign investors.
“The trickle-down effects to local communities are minimal and we hear that the break-even on copper is about US$ 5,000 per tone, with the price currently above US$9,000 per tonne. So the mines should be more serious with their corporate social responsibility and do something that will uplift people’s living standards.
Things like sponsoring the Zambia Golf Open in Nchanga is elitist and does not benefit local people,” Chilipamushi said.
“The benefits are not clear since there is high unemployment, use of casual workers, no skills transfer whenever the mines use foreign labour and, generally, there is hopelessness in the minds of many people in this region that will result in political indignation towards the government.”
He said there was need to find a solution that would result in benefits for mining companies and improve the living standards of local people.
Chilipamushi said that while Zambians needed more investment, it should not result in exploitation.
But Chamber of Mines assistant general manager Lawrence Chileshe argued that the impact of high copper prices had increased government revenue and contributed to both existence and growth of efficient local enterprises.
And Cathy Walubita, from Konkola Copper Mines Plc, said people should not expect more from the mines but question how the government was using the taxes it received.
George Bester, from Copperbelt Energy, said the government should develop mechanisms to compel mining companies to use a substantial percentage of their earnings for corporate social responsibilities.
Labels: DAVIDSON CHILIPAMUSHI
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COMMENT - At some level, you can't blame anyone in Western Province for wanting to break off from Zambia, expecially when oil or diamonds are found there. The illegal scam that pertains today is that central government politicians take illegal bribes so foreign investors won't have to pay taxes and are 'protected' from the law. That is a direct attack on the integrity of the country itself. These resources belong to the people of the country, and are not subject to illegal scams by ruling (or opposition) party politicians. And yet arrogantly and narcissistically, we have the Finance Minister coming out and saying that there will be no significant reduction in poverty for 30 years. It would be morally superior for the people to steal these resources and sell them themselves. It is a disgrace that the part of the country that supplies most of 'GDP', has people living in abject poverty, on top of living in the most polluted part of the country. Does anyone in the MMD have the moral highground to accuse the people of the Niger Delta for taking up arms - no they do not, and it is their own thieving behavior that is to blame. You steal from the people, you lose any claim to morality or legitimate authority.
Chilipamushi bemoans state of C/belt towns
By Darious Kapembwa in Kitwe
Fri 28 Jan. 2011, 04:01 CAT
FORMER commerce permanent secretary Davidson Chilipamushi says
Copperbelt towns have remained depressed although they account for a large share of the country’s GDP and generate over two-thirds of the country’s foreign exchange.
And Consumer Unity and Trust Society (CUTS) international chairman Love Mtesa says the organisation has expanded its scope and interventions on subjects such as good governance, social accountability, trade and development, economic and business regulations.
During a CUTS organised workshop to launch the Better Exploration of Trade as a Means for Poverty Reduction BETAMPOR project in Kitwe, Chilipamushi said economic infrastructure still remained very poor despite huge economic gains as a result of high copper production.
“The fact of the matter is that Zambia is among the 50 poorest countries on earth but we’re saying there is economic boom but the towns look the same as they were 20 years back, even worse,” Chilipamushi said.
“Although statistically the Copperbelt accounts for a large share of the country’s GDP and generates over two-thirds of the country’s foreign exchange, it is clearly visible that there is nothing to show for it; the towns remain depressed as no real infrastructure has been developed.”
Chilipamushi, who is now a senior lecturer in the School of Business at Copperbelt University, said the towns’ ability to maintain even the existing structures seem to be diminishing as no new revenue was being collected from the flourishing mines.
He suggested that the revenue coming from the mines be given to the local authorities for development projects.
“…Maybe under councils the revenue could go a long way to improve on the outlook of the depressed towns,” Chilipamushi said.
He said diversification efforts away from the dependency on copper to the promotion of non-traditional exports must be supported.
Chilipamushi added that the diversification initiative would help in keeping the money within the province and also assist in reducing unemployment and high poverty levels.
Meanwhile, Ambassador Mtesa said the mission of the organisation was to function as a resource co-ordination centre as well as networking centre in order to promote South-South co-operation on trade and development by involving state and non-state actors.
“At international level, because of its abundant expertise, CUTS is working very closely with developing countries in helping them with research on trade and economic related issues which they need in their trade negotiations in Geneva at the World Trade Organisation (WTO) in Brussels and the EU negotiations on EPAs,” said Ambassador Mtesa.
Labels: COPPERBELT PROVINCE, CUTS, DAVIDSON CHILIPAMUSHI
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COMMENT - What is the title of 'the book'?
Zambians have benefited little from copper - FES
By Darious Kapembwa in Kitwe
Fri 26 Nov. 2010, 04:00 CAT
FES resident director Heiner Naumann has said making the constitution is not democratic enough if there are no people to defend and protect its democratic provisions.
And Naumann has said Friederich Ebert Stiftung (FES) is working with unions and the civil society in the belief that these organisations are pillars of Zambia’s democracy.
Speaking in Kitwe on Tuesday during a book launch by the Mineworkers Union of Zambia on the Zambian mining industry that was supported by FES, Naumann observed that making a constitution was not democracy in the absence of someone to defend it.
“Democracy is only strong through the people and by the people not just by writing a constitution. If nobody is defending its democratic provisions, then it’s hollow.
That is why FES supports unions and also partners with civil society organisations like the CSPR, we do this in the belief that all these organisations are pillars of Zambia’s democracy,” Naumann said.
He said very little had been achieved from Zambia’s copper in form of economic and social benefits by the Zambian people.
"A lot has been published on Zambia’s mining boom but very little has been done in terms of social protection for workers and the general economic outlook of the country and the situation in the mining industry currently is that mine owners look at labour as a cost factor when in fact it is a major component in production," Naumann said.
"And it is sad to note that management functions in the mining industry are being transferred from producing countries to the headquarters or the country of origin for particular mine owners."
Naumann said issues of safety, health, social and job security in the industry had to be critically analysed and that labour leaders needed to do more research in order to present sound arguments.
"Our organisation will continue to support research of that nature by independent bodies as solidarity is more than justice," said Naumann.
And MUZ president Rayford Mbulu said critics who thought MUZ argued without proof had been shamed by the volume of information which research director Charles Muchimba had gathered in the book.
Mbulu said there had been a void between 2000 and 2010 which had been filled by the new book.
And Copperbelt University lecturer Davidson Chilipamushi who reviewed the book said it was a bankable reference to both the academia and stakeholders in the sector.
Labels: CHARLES MUCHIMBA, DAVIDSON CHILIPAMUSHI, FRIEDRICH EBERT STIFTUNG, HEINER NAUMANN, RAYFORD MBULU
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Lecturer urges govt to mobilize copper revenue towards infrastructure
By Kabanda Chulu in Kitwe
Mon 09 Aug. 2010, 17:40 CAT
COPPERBELT University senior lecturer Davidson Chilipamushi has challenged the government to mobilise resources from the copper mining industry to develop other infrastructure if benefits of economic growth are to be felt by ordinary Zambians.
Commenting on the surge in copper prices currently trading at over US $ 7,400 per metric tonne, Chilipamushi said Zambia should put in place an organised way of checking and collecting the billions of kwacha accrued in other mining activities apart from copper.
“We only focus on copper but when mining copper, there are other minerals that are mined alongside copper; and we don’t have an organised mechanism to ensure that the billions earned from minerals apart from copper are also accounted for in terms of royalties and other taxes,” Chilipamushi said.
“And since copper is the mainstay of the economy and it is growing, then there must be a way to ensure that resources are mobilised from this sector to develop other infrastructure like the way it is being done in Angola, where resources from oil are pooled into a revolving fund used to develop other industries; and this is why Angola is able to grow its economy by over 15 per cent.
But in Zambia, we think this is an impossibility but it is happening with other resource-rich countries and even Chile did the same through its copper industries.”
He said that ordinary people should feel the benefits of economic growth.
“If the economy is growing, where has the growth come from and where has it gone? Because official statistics indicate that 64 per cent of Zambians are below the poverty datum line; meaning that these people are not participating in the economic growth, unless we become practical and aim for a much higher economic growth target than the usual five or six per cent,” said Chilipamushi.
In the 2010 budget, finance minister Situmbeko Musokotwane announced that the macroeconomic objectives would be to exceed five per cent growth, to reduce end-year inflation to eight per cent and to limit domestic borrowing to two per cent of gross domestic product (GDP).
Labels: COPPER, DAVIDSON CHILIPAMUSHI, SITUMBEKO MUSOKOTWANE
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COMMENT - Neoliberal economic theory fails again. Inflation is in the single digits, but this has not brought down the cost of money, as bank lending rates are still over 20%. This is obviously a major hurdle for SMEs. Also, the mines use over 50% of power produced by ZESCO, and pay fewer tariffs than ordinary people. Again, this smells of corruption. Foreign owned mines are a net drain on the Zambian economy.
Chilipamushi accuses banks of running cartel
By Kabanda Chulu in Kitwe
Tue 27 July 2010, 04:02 CAT
COPPERBELT University senior lecturer Davidson Chilipamushi has accused commercial banks in the country of operating a cartel hence the failure to reduce lending (interest) rates despite the inflation rate declining to 7.8 per cent.
In a free market economy such as Zambia, the rate of inflation should be able to bring down interest rates to a level equivalent to that of the country’s inflation. For instance,
the rate of inflation is currently at 7.8 per cent and it is expected that interest rates should also be in the range of eight or 10 per cent.
Despite government’s efforts to bring down the rate of inflation to single digit levels, lending rates are still high, the lowest being about 20 per cent offered by some banks.
Government has reduced its borrowing from commercial banks, therefore the yields on treasury bills and bonds have declined thus offering banks alternative ways to make profits such as lending to the private sector and other entrepreneurs.
“This is very surprising that banks have not reacted in the down turn of inflation rates by reducing lending rates, for instance, the rate of inflation is currently at 7.8 per cent and it is envisaged that interest rates should also be in the range of eight or 10 per cent and banks will still make profit but this is not happening, why?” Chilipamushi asked, in an interview last Friday.
“And this is a hindrance to the development of the economy which needs to be addressed and the competition authority should take a keen interest in this matter because there is an apparent tacit collusion if I may say so because it doesn’t make sense that the rates for all banks are high although some have reduced but still remains high and someone was saying that there are many cars in the street since banks are dishing loans but this growth is not tangible since it is not translating into poverty reduction.”
He said the failure by banks to reduce lending rates was stifling development because investment decisions that had to be made by companies and individuals were delayed.
“It is surprising that this is happening, banks and even micro finance institutions are also charging higher rates despite government making efforts to ensure macroeconomic stability, and players are failing to respond, for instance, government is reducing borrowing from the banking sector therefore yields on bonds and treasury bills also come down in line with the desire not to borrow so much from the banks,” Chilipamushi said.
“This situation compels banks to look for alternatives from which they can make money than the easy way of buying bonds and treasury bills and it appears to me that, the alternative still remains lending to the private sector so there must be a balance between alternative investment sources.”
And Chilipamushi said Zesco Limited should stop looking at increasing electricity tariffs as the major source of its capital investments. Chilipamushi said shareholders of Zesco must recognize that the huge problems facing the company require the entity to be restructured to manageable levels.
“It appears the only source of capital investments as of now is through tariffs they charge to consumers out there but what Zesco needs to do is to look for alternative sources of funding to sustain their activities and that is making it saleable or bankable either through restructuring and bringing their books to date by reducing their debts on the balance sheets then people will have confidence. There are several sources of funding including locally at the stock exchange,” Chilipamushi said.
“What Zambians are looking forward to is to ensure that this Zesco is brought into the market and it has to be listed so that you and me can buy interest in it and I don’t know if that is a hindrance in their (Zesco) quest to move forward but they just have to restructure themselves and ensure that they operate on a commercial basis and get on the market and expand capacity to borrow and meet their expenditure requirements.”
He said Zesco does not operate as a commercial entity since it lacked a strategic plan.
“On paper Zesco had undergone commercialization but I don’t believe Zesco is operating as a commercial entity, firstly it has to be restructured and strategize and unbundling is not an issue and the issue is making Zesco viable as a single entity and in the absence of a proper study being done, it is difficult to recommend unbundling,” said Chilipamushi.
Lusaka Stock Exchange (LuSE) general manager Beatrice Nkanza has used every opportunity requesting struggling government entities such as Zesco, Indeni, Tazama, ZSIC and others, to raise part of their capital investment on the stock markets.
Nkanza has explained that due to the strict process of listing, companies could raise funds through bond issuance and other debentures.
Zesco has applied to the Energy Regulation Board (ERB) requesting for 36 per cent electricity tariff adjustment because it requires more than US $850 million to increase power generation capacity.
Zesco also wants to have in place cost reflective tariffs whereby consumers would pay for the power they use but surprisingly the mines that consume over 50 per cent of Zesco’s power production pay less tariffs compared to domestic consumers.
Labels: BANKING, BEATRICE NKANZA, CARTEL, DAVIDSON CHILIPAMUSHI, LENDING RATES, LUSE, ZESCO
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Fake imported goods worry Chilipamushi
Written by Fridah Zinyama
Tuesday, November 11, 2008 7:05:48 AM
COMMERCE permanent secretary Davison Chilipamushi has expressed concern over continued imports of counterfeit products into the country. During the commemoration of the World Standard’s Day hosted by the Zambia Bureau of Standard (ZABS) titled ‘Intelligent and Sustainable Buildings’ in Lusaka on Friday, Chilipamushi said something needed to be done about the importation of counterfeit products as they were not only expensive but also posed a serious threat to people’s health.
“It is a concern for us that counterfeit products have also continued to pass through our borders to other countries,” he said. “There is need for ZABS to improve its ability to detect counterfeit products that are being imported into the country.”
Chilipamushi said it should be the job of all stakeholders to ensure that consumers are protected from counterfeit products which can pose serious threats to people’s health.
And Minister of Works and Supply Kapembwa Simbao said there was need for all stakeholders involved in the construction sector to adhere to standards for Zambia to have quality buildings.
“Zambia’s construction sector has continued to grow due to the increase in the country’s economic activities,” he said. “And the improvement and growth of the sector brings with it consequences that stakeholders have to consider socially, economically and environmentally.”
Simbao said it was very important for the players in the construction sector to adhere to both the international and local standards of construction.
“It is a common sight in compounds to see buildings that have not adhered to the set standards of construction and such structures not only pose a threat to the people as they can collapse but are also an ugly part of this country’s building infrastructure which stakeholders are trying to improve,” he said.
Simbao said all stakeholders such as manufacturers of building materials and constructors need to adhere to standards and specifications of the construction sector.
Labels: DAVIDSON CHILIPAMUSHI, ZABS
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Chilipamushi bemoans rate of economic diversification
Written by Fridah Zinyama
Wednesday, November 05, 2008 5:39:06 PM
ZAMBIA’S economic diversification process is taking place at a very slow rate, Ministry of Commerce permanent secretary Davidson Chilipamushi has observed.
In an interview, Chilipamushi acknowledged the fact that although programmes to diversify the country’s economy were in place, they were taking long to be fully implemented.
“Now is the time to fully forge ahead with the economic diversification programme as it is not sustainable to base the country’s growth on commodities like copper which have been affected due to the economic crisis the world is currently experiencing,” he said.
Chilipamushi explained that policies on how to diversify the economy have been in place since 1990, but that the implementation process itself had been very slow.
He said government had come up with the Multi-Facility Economic Zones in order to address the need to diversify the country’s economy which is 90 per cent dependent on copper.
Chilipamushi noted that although plans and intentions existed to diversify the economy, Zambia would for a long time to come continue depending on copper.
Copper prices a week ago tumbled to as low as US$3, 825 a tonne on the London Metal Exchange – more than 50 per cent below the record high of $8,940 a tonne recorded in July for the metal which is widely used in power and construction.
There have been concerns that Zambia’s economy, which is highly dependent on copper, might suffer a recession if prices of the commodity – its highest foreign exchange earner – continue to decline on the metals market.
Labels: DAVIDSON CHILIPAMUSHI, ECONOMY
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Govt to ensure EPAs become instrument for development
Written by Kabanda Chulu
Wednesday, November 05, 2008 5:34:46 PM
THE government has assured that revenue impact of the market access offer recently signed with the European Union (EU) will be minimised by excluding liberalisation of products that attract most revenue. And Ministry of Commerce, Trade and Industry permanent secretary Davison Chilipamushi has said the government is committed to improving current terms and conditions to ensure that Economic Partnership Agreements (EPA) become an instrument for development.
Explaining the market access offer under the interim EPA that was signed last month with the EU, Chilipamushi said the government took careful consideration of the interests of various constituencies, especially industry and agriculture sensitivities, food security and revenue losses.
“These have been safeguarded through a cautious approach with regard to the level and pace of liberalisation and government has also ensured that the revenue impact of the market access offer is minimised by excluding from liberalisation the products which attract most revenue and by delaying as much as possible liberalisation on products that attract 25 per cent customs duties,” he said.
Chilipamushi said the market access offer was formulated in collaboration with representatives from the agriculture and manufacturing sectors, civil society and all relevant government institutions. He explained that a list of products which are produced or could be potentially produced by Zambians that would be exposed to competition from European products have been excluded from liberalisation.
“This list includes agriculture products, for example, dairy products, some meat products, sugar, cereals, processed food including oils, honey, flour and beverages and also key manufactured goods such as engineering products, wooden products, plastics and rubber, textiles and clothing products have been excluded from liberalisation,” Chilipamushi said.
“And liberalisation for non-excluded products will not start before 2014 and capital goods and raw materials necessary for economic development will be liberalised first, with intermediate goods gradually following while finished and other goods will be liberalised starting 11 years from 2009 and the overall process will be completed in 15 years (2015).”
He made it clear that the government initialed the market access offer on the basis of considerations that there would be manageable revenue implications and protection of key sectors. Other issues which the government considered were the benefits of increased quota allocated to Zambia for sugar, amounting to 32,500 metric tonnes, a development that would also benefit small-scale farmers taking part in the out grower scheme. Chilipamushi said the government was committed to addressing the challenges that would result when EPAs are implemented.
“The challenges of ensuring that the EPA is an instrument for development still remains and government is fully committed to improve current terms and conditions such as the rules of origin and the safeguards provisions in the context of the final EPA text,” said Chilipamushi. “Government is also working towards developing projects that will make the private sector more competitive in the export market.”
But civil society organisations in the country have condemned the government for signing the market access offer, stating that Zambia should have negotiated a development cooperation agreement that could assist in solving supply-side constraints faced by most producers such as lack of infrastructure, poor road networks and value addition oriented industries.
“EPAs will give Zambia and other LDCs full market access to the European market but at the same time the countries are forced to open up their own markets during an extremely short period of time. Zambia is among the poorest countries in Africa and with the interim EPA, small-scale farmers and infant industries in the country will be forced to compete on more or less equal terms with European large scale agriculturists and big corporations that are highly subsidized,” the CSOs stated.
The CSOs stated that Zambia already has a non-reciprocal free access to EU markets through a special arrangement called Everything But Arms (EBA) and this arrangement offers better opportunities for Zambia to continue with the positive slide of development which the country has enjoyed in the past seven years.
“For the very same access to EU’s market, Zambia now faces the risk of having to pay a high price in the form of devastated small farms and collapsed local industries,” they stated. The CSOs that issued the statement include, the Civil Society Trade Network of Zambia (CSTNZ), Jesuit Centre for Theological Reflection (JCTR), Consumer Unity Trust Society (CUTS), Pelum Association and the Eastern and Southern African Farmers Forum (ESAFF).
Labels: DAVIDSON CHILIPAMUSHI, EPAs, EU
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Zambia Sugar blames shortage on poor harvest
By Joan Chirwa
Saturday June 07, 2008 [04:00]
GOVERNMENT will not hesitate to take necessary measures once Zambia Sugar fails to satisfy the local market, commerce permanent secretary Davidson Chilipamushi has said. And Zambia Sugar Plc managing director Paul De Robillard has, among other factors, blamed the sugar shortage on the company’s failure to harvest adequate cane last season owing to the above-normal rainfall experienced in most parts of Southern Province.
Speaking in Mazabuka on Thursday when he toured the Nakambala Sugar factory to assess the progress made in production to meet demand for sugar, Chilipamushi said the government would not allow any exports of sugar until such a time when local market had adequate supplies of the commodity.
He was reacting to reports that Zambia Sugar exported close to 3,000 metric tones of sugar to the Great Lakes Region between March and May this year. The most recent export from this year’s production was 30 tonnes of sugar that was sold to Burundi in May.
Chilipamushi earlier indicated that the government would import sugar should the shortage of the commodity persist on the local market.
“It is not government’s intention to interfere in the running of businesses but just to ensure that interests of both consumers and producers are taken care of,” Chilipamushi said.
Zambia Sugar has however maintained that only 30 tones of sugar had been exported to Burundi late last month following a breakdown of the system.
“From this year’s production, we have only exported 30 tonnes to Burundi and that was after a truck slipped through the system and we will stand by that,” said Zambia Sugar Plc’s marketing manager Rebecca Katowa. “We are now putting our major focus on distribution of what we are producing to fill the gap in the market.”
And De Robillard said the heavy rains experienced during the last season greatly affected the company’s production during the last financial year.
“We planned on having 265,000 tonnes but we only managed to produce 234,000 tonnes,” De Robillard said. “The other problem is that the heavy rains affected our expansion programme as we had to delay construction works. Yesterday (Wednesday), tandem two started operating. We are sure that by next week, all lines will be operating and we will be producing close to a thousand tonnes of sugar per day. Our plan for 2008 is to produce 270,000 tonnes of sugar. Since local consumption only constitutes 40 per cent of our production, the surplus will then be exported.”
The shortage of sugar on the local market forced traders to inflate prices to an average of K20,000 per two kilogramme packet.
Labels: DAVIDSON CHILIPAMUSHI, SUGAR CANE, ZAMBIA SUGAR COMPANY
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SADC region has potential, says Chilipamushi
By Fridah Zinyama
Thursday May 15, 2008 [04:00]
COMMERCE permanent secretary Davidson Chilipamushi has said there is need for the region to build its infrastructure if more markets in the region are to be opened up. During the EU SADC Investment Promotion Programme (ESIPP) workshop held at Cresta Golf View on Tuesday, Chilipamushi said the SADC region had a lot of potential which was yet to be exploited.
He said infrastructure development would go a long way in ensuring that the countries in the region had better access to each other’s markets.
He cited Congo DR as Zambia’s second largest trading partner after South Africa and said trade between the two countries would improve if infrastructure linking the two countries were improved.
Chilipamushi added that there was also need to have a railway system built up to Angola, as it would equally open up more markets in that country.
He said it was important for countries to start adding value to their products if they were to fetch more on the international market.
And Zambia Development Agency (ZDA) director general Andrew Chipwende said the agency was building its capacity through joint ventures that would enable it continue to promote investment in the country.
In an interview on Tuesday, Chipwende said ZDA was working with its cooperate partners like the ESIPP in order to help build and develop the capacity of the agency.
He said ESIPP brought potential partners together through sectoral business to business meetings at which one on one contacts could be made between SADC and EU/third country entrepreneurs.
Chipwende said that gave investors the opportunity to sign highly profitable inter-enterprise co-operation agreements where companies with complementary skills collaborated on a project.
Labels: DAVIDSON CHILIPAMUSHI, ESIPP, REGIONAL INTEGRATION, SADC, ZDA
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Chilipamushi urges complete liberalisation of crop exports
By Joan Chirwa
Wednesday April 30, 2008 [04:00]
GOVERNMENT needs to completely liberalise crop exports for local farmers to benefit from rising commodity prices on the international markets, commerce permanent secretary Davidson Chilipamushi has said. And Chilipamushi has warned that food prices will continue to rise as long as there is no increase in the supply of commodities on markets.
In an interview, Chilipamushi noted the need for a policy shift in exports of agricultural commodities in the country in order to support the agricultural industry and reduce poverty among rural households.
“We must seriously consider the export policy. As you know, we periodically impose a ban on the exports of maize,” Chilipamushi said. “I believe we should consider this policy option and ensure that we completely liberalise the export of crops. This will be the effective way to fight poverty.”
Chilipamushi said an increase in funding to the agriculture sector was critical to enhancing crop production in the country, the surplus of which could be exported.
“Zambia has got the potential to grow as much maize as it can and it can export the surplus because of the conducive environment for maize cultivation. This goes not for maize alone, even other food crops,” Chilipamushi said. “After enhancing crop production, the Food Reserve Agency (FRA) should be given as much money as possible to store food crops for strategic reserve.”
And Chilipamushi said the inadequate supply of food commodities on the local market would continue to affect prices, although Zambia was not directly affected by the global rise in the cost of foodstuffs.
“The rise in commodity prices in Zambia is as a result of farmers who were hoarding their maize but have now run out of the stocks. Now FRA is the one which is selling the maize at high prices to the milling companies,” Chilipamushi said. “Because of this situation, food prices will continue to go up as long as we don’t have enough supply on the market.”
Labels: DAVIDSON CHILIPAMUSHI, FOOD, INFLATION
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Govt companies are underperforming, says Chilipamushi
By Chiwoyu Sinyangwe
Friday March 28, 2008 [03:00]
GOVERNMENT spending agencies should view the Auditor General’s report as a management tool to improve their efficiency and not a document to dent their images, commerce Permanent Secretary Davison Chilipamushi has said. And Chilipamushi has observed that most commercialised government companies have continued to under-perform.
In an interview after Patents and Companies Registration Office (PACRO) presented a K700 million dividend on Wednesday, the first ever by a government agency, Chilipamushi said PACRO was an example of company that had been transformed from loss making to profitability due to the recommendations of the Auditor General’s report.
“About a few yeas ago, PACRO like most of our agencies was making losses and was a drain on the treasury but basing on the recommendations of the OAG Office of the Auditor General report these are the results we are seeing today,” Chilipamushi said. “So, the lesson for other government departments and other spending agencies is that they should use the AG’s report as a tool to be used to improve service delivery…even when there are negative issues, they should be taken in the manner that suggest that they are simply advising you to be able to correct those anomalies that might be occurring in the institutions.”
Chilipamushi also stressed that those controlling officers that were found wanting in the AG’s report needed to be prosecuted.
“People are bound to make mistakes here and there but all the report does is to remind all the controlling officers and the people involved to help seal the loopholes and ensure that those loopholes don’t result in the loss of government money,” Chilipamushi said. “Where it needs to take corrective actions of firing people or prosecuting them, so be it.”
Chilipamushi said while some companies had performed well under commercialisation, most of them had continued to underperform.
“Some companies are performing well but others need surgery to be able to move a little bit more in terms of efficient delivery of service,” said
Labels: DAVIDSON CHILIPAMUSHI, PARASTATALS
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Kabimba blames exploitation of workers on weak laws
By Joan Chirwa
Monday November 26, 2007 [03:00]
ZAMBIA’s weak legal regime in terms of investment is to blame for the exploitation of employees by foreign investors, Lusaka lawyer Wynter Kabimba has said. And commerce, trade and industry Permanent Secretary Davidson Chilipamushi said much of the investments taking place in Africa were largely on account of the developed countries’ desire to feed into their economic upturn.
During a discussion on Zambia’s Foreign Direct Investments (FDIs) organised by the Economics Association Zambia (EAZ) in Lusaka on Thursday, Kabimba noted that foreign investments – regardless of their origin – were mainly interested in profit making while leaving behind enormous environmental and social problems.
“Some foreign investments have destabilised communities and have also contributed to numerous environmental problems, leaving behind an impoverished community,” Kabimba said. “The foreign investments have always taken advantage of weak regimes such as that existent in Zambia.”
He said both local and foreign investors must be made to abide by the laws of the country in order to safeguard the interests of the employees.
“It is also not good that the government and the trade unions have partnered in justifying reasons behind the bad working conditions and to say that foreign investors are doing what local investors do,” Kabimba said.
He was dismissing Zambia Congress of Trade Unions (ZCTU) president Leonard Hikaumba’s statement during the discussion that Zambia first needed to put its house in order before foreign investors could strictly adhere to labour laws.
“There is nothing like that in law. You cannot compare a local investor with a foreign investor who enjoys a rebate and you expect the two to pay the same wages,” Kabimba said. “Every employer, whether foreign or local, is obliged to obey the laws of this country and pay living wages to the people.”
Earlier, Chilipamushi said there was a lot of self-interest in the manner investments were being made by foreign companies.
“Talk of any investor from any country, they always have interests of their countries,” Chilipamushi said. “Zambia’s interests when attracting these investments should therefore be to ensure jobs and wealth are created.”
Chilipamushi said the country’s foreign investments must also be targeted at reducing the high levels of poverty through the adoption of good corporate social responsibility programmes.
And Hikaumba said the problem of bad working conditions being offered by investors had been created by Zambians themselves.
“We should put the blame on our local investors who have not obeyed the labour laws, so foreign investors are also doing the same,” said Hikaumba.
Lusaka businessman Mark O’Donnell said Zambians should take advantage of the available opportunities presented by foreign investors seeking partnerships with local businessmen.
“Having foreign investors does not mean they will own everything. We have dozens of Zimbabweans seeking joint ventures with Zambians and these are opportunities that we need to take advantage of,” said O’Donnell.
Labels: DAVIDSON CHILIPAMUSHI, WYNTER KABIMBA
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Chilipamushi urges local firms to improve products
By Fridah Zinyama
Friday June 08, 2007 [04:00]
MINISTRY of Commerce permanent secretary Davidson Chilipamushi has said Zambian companies need to improve their products and services if they are to capture the local and international markets. During the 2007 Customer Service Expo organised by SS Media group Limited, Chilipamushi said when the business community improved their products and services it would be easy to use specialised forums to showcase their products to their local customers.
“What we need at the moment are more specialised forums such as this expo which accords the opportunity to the business community and various institutions to showcase their products,” he said. “The Customer Service expo will help the business communities to demonstrate to their existing and potential clients what they are doing to improve their services.”
Chilipamushi said the expo would afford the business communities with feedback of what their clients feel about their products.
“Government is also doing its part in ensuring that the business environment in the country is good,” he said. “We have realised that in order to improve service delivery, we will have to form partnerships with the private sector.”
Chilipamushi urged the private sector to take the initiative in those areas where they can add value to their products and services. “Government would like to see more private sector initiatives that help to translate government policies into action,” he said.
And Chilipamushi added that government’s commitment to superior service delivery could be seen in its deliberate measures to restructure key institutions that provide critical services to the business community.
“The formation of Zambia Development Agency is meant to help facilitate investment and trade opportunities, company registration, product quality standards and certification and support to small and emerging businesses through specialised agencies that constitute ZDA,” said Chilipamushi.
Labels: DAVIDSON CHILIPAMUSHI, QUALITY ASSURANCE
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Zambia needs domestic policy initiatives, says Chilipamushi
By Joan Chirwa
Friday May 25, 2007 [04:00]
DEVELOPING countries have been urged to shield themselves from trade arrangements that would impact on effective governance of their emerging economies, as negotiations for the ACP/EU Economic Partnership Agreements (EPAs) almost wind up.
And commerce, trade and industry permanent secretary Davidson Chilipamushi said Zambia needs domestic policy initiatives that would ensure that trade is used as a tool for promoting development in the country.
During a civil society conference on Trade Policy and Development in Lusaka on Wednesday, Zambia Episcopal Conference (ZEC) secretary general Father Joe Komakoma said no single change could make a greater contribution to eliminating poverty than fully opening up the markets of prosperous countries to goods produced by poor nations.
The Trade Policy and Development conference discussed key issues of the EPAs between the African, Caribbean and Pacific (ACP) countries and the European Union (EU).
Phase two of the EPA negotiations is in full swing, with only six months before the trade agreements are signed on December 31, 2007.
However, countries in the Eastern and Southern African (ESA) region - Zambia inclusive - have expressed concern that many issues have not been tackled for the agreements to be effected by 2008.
“The liberalisation rules in Free Trade Areas (FTAs) that threaten to drive local firms out of business and will reduce competition as well as extend the monopoly power of large companies must be opposed,” Fr Komakoma said.
He further said domestic policies that foster economic growth were of prime importance.
“Developing countries, individually, must be allowed to protect key food and livelihood security products in line with the special products proposal for agriculture tabled in the July 2004 framework agreement of the World Trade Organisation (WTO),” said Fr Komakoma.
And Chilipamushi, who earlier this year indicated that Zambia would not open up any of its sectors to the EU countries until the development agenda of the EPAs is addressed, said trade must be seen as a basis on which developing countries could begin to grow.
“It is important that when you use trade as a tool for development, this must lead to job creation and alleviation of poverty,” said Chilipamushi.
With the advent of the EPAs, developing countries fear that poverty would increase if supply side constraints of the negotiations are not addressed.
Once EPAs are implemented, African countries and the EU are expected to open up their markets, a situation that will see goods from both sides being traded without restrictions.
Labels: DAVIDSON CHILIPAMUSHI, EPAs, GOVERNANCE
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